With conventional lenders caught up in the credit crisis and unable to make loans, commercial real estate investors and developers are turning to private, often called "hard money" commercial mortgage loans. But even private lenders have tightened their underwriting criteria, and hard money is more difficult to get than it used to be.
Anyone considering applying for a privately funded commercial mortgage should understand just what hard money lenders look for in a deal.
Equity - Private lenders are equity lenders. Their lending decisions are not credit driven but are based mainly on the amount of equity in the building or project being financed. Generally a hard money lender will not lend more than about 50% of the value of unimproved land, 60% of the value of an underperforming building and 65% of the value of a stabilized, income producing building. These low LTV (loan-to-value) ratios mean that borrowers must have exceptional properties or be prepared to inject plenty of cash into a deal.
Experience - Hard money lenders are sophisticated real estate professionals who prefer to work with other pros. They look for borrowers or project sponsors that have a track record of success and a wealth of experience. In today's economy, few private lenders are willing to fund first time developers or new investors.
Frequently Asked Questions
QUESTION:
How do I become a real estate investment banker ?
I am freshly out of the US NAVY and I have the money to go and do what I want school wise and I want to become a real estate investment banker how do I do this
ANSWER:
I presume you are not talking about opening a bank regulated by the U.S. Government.
So go see a business lawyer and have a trust set up. The trust purchases and sells mortgages using the money you started the trust with. If done properly, you should not pay taxes on any profits until the trust disperses the money to you.
Just make sure the lawyer does not make himself trustee of the trust. You should make the decisions without his approval. His role should be nothing more than a legal consultant charged by the hour, and you can change attorneys at will.
QUESTION:
Which makes more real estate or investment banking?
i heard investment bankers make MILLIONS IN BONUSES?!
geeeeez. how much is their salary then?
lol i know its kind of greedy filtering out career options by salary but hey, i'm only 13. i can still dream :]
ANSWER:
If your goal is to make millions, I'd try for investment banking as opposed to real estate. But you'll need a great education and work experience to get hired. It's a competitive field. And you won't make millions at the beginning -- you'll need to work for a while and gain experience and client relationships. (I work at a financial services firm on Wall St.)
Other areas where you could make millions if very successful are:
-- lawyer
-- trader
-- hedge fund manager
Be sure to get a good education. Get as many work and volunteer experiences under your belt as possible. Try for a summer internship when you're in college. And be knowledgeable about finance, global relationships, key deals, etc.
Good luck!
QUESTION:
Why do some "advisers" try too hard 2 convince people that real estate is a bad investment as oppose to stock?
I met an investment banker in Citigroup when i opened my business account, and he tried for an hour to convince me that real estate is a bad investment, he didn't count on the fact that i have been investing for 5 years, and every time he spoke i managed to shut him up, he asked what will happen if you need capital, and i said, i'll finance; he said, what will happen if the market crashes, i said i'm renting for cash flow, eventually, he said 'ok, you don't get it' and left the room... but why? are some investment bankers so against real estate as an investment when it is clearly a great tool to build wealth?
ANSWER:
Because from an accounting standpoint, real estate is a fixed asset and stocks are considered liquid assets.
A few things to ponder here...
1) You can go online everyday and find the value of your stocks. Market price times number of shares, less commision to sell (which is very small today), equals the value. Plus, the brokerage firm, by law, must give you the funds 3 days after the sale date.
2) For real estate, to know the value you have to have the property appraised. And then, it's just a guess at the value. The appraisal value is not a sure estimate of its market value. If you wisht to sell your real estate, it takes weeks to conumate the deal, even if you had a buyer lined-up from the start. Forget 3 days to get your cash, you're looking at 30 days IF things go well.
3) With real estate, you typically have to pay some sort of real estate tax on the government assessed value. That's money out of your pocket every year. Add to this the cost of insurance - either to ensure it against fire or flood, or to insure it for personal liability purposes.
4) With stocks, the only tax you pay is income tax on the dividends, if they are paid at all. Otherwise, there is no tax liability to owning a stock over time.
Now you know why people like stocks.
QUESTION:
Would you rather start a Commercial Real Estate Development Company or become an Investment Banker?
ANSWER:
investment banker.
QUESTION:
what are the pros and cons between the following...real estate attorney vs. Investment banker?
ANSWER:
Kind of asking about apples and oranges.
Requires different training altogether. JD vs. MBA.
Investment banking is very uncertain right now, and requires many years of climbing the ladder to get there. The big investment banks have all turned into commercial banks in the last three months.
Really depends on where you are in your career, and how much of a conscience you have. Both types of work involve some degree of ethical "flexibility."
Following the past 2 years of decline, a full market recovery is highly unlikely during 2010. The strongest developments towards recovery will be experienced in markets where controls existed for avoiding excessive lending, speculative buying and instability. Regions that have been hardest hit during the downfall of the real estate market have taken strong steps to avoid continued excessive decline. Control strategies will begin to show their results throughout 2010, with the hardest hit markets beginning to stabilise, while growth patterns emerge in the markets least affected by the downturn.
Investment approaches will evolve from excessive speculative buying into strategies with improved stability and market demand. Long term investments and buy-to-let ventures are expected to be the strongest growth areas, with fewer risks involved and excellent gains potential due to the exceptionally low priced investment options available in both emerging and established markets.
In order to fully understand the position of world real estate markets and the outlook for 2010, it is necessary to understand issues relating to the lead up to the world real estate market downturn. How these issues have affected the market will assist in understanding the coming year's ideal investment strategies and selections most suitable for optimum returns.
The Mortgage Market
The mortgage market and loan financing has largely contributed to the sharp downturn in many world real estate markets. The lack of control in the sector resulted in excessive lending and often an absence of credit checks. This caused many mortgage holders to default on payments when the economy became strained.
The extent of the effects the mortgage market has contributed to the downturn in the real estate sector can be seen when comparing countries with traditionally strict lending practices against those where financing was readily and easily obtainable. Controlled markets have resisted severe downturns viewing recovery potential during 2010, while lenient markets continue their struggle to maintain stability.
Responding to the need for financing to assist with the turnaround in the real estate sector, central banks have reduced interest rates, expected to remain at record low levels until sometime in mid 2010. While the ability to finance properties has enabled an optimum moment to enter the real estate market, restrictions on lending criteria has become widespread, leaving many potential buyers unable to qualify for mortgage financing.
Supply and Demand
A slowdown of new construction projects in various locations around the world has been designed to assist in bridging the gap of excessive supply against demand. Locations with an excessive supply of housing for sale on the market are expected to take longer to recuperate from the downturn, as less competition is available for bringing up property prices.
While the prices in these areas remain low, investors searching for long term return potential may be able to find some optimum bargain opportunities, yet the long term growth is likely to be considerably less compared with areas where the supply and demand of properties is ideally balanced.
'Buyers Market' Benefits
2010 will continue to be an optimum buyer's market, where those in a position to purchase will continue to receive and negotiate optimum deals. A sharp turnaround from the seller's market environment of the recent past, equity enabled investors are facing the ideal market conditions to access the best deals expected to be available for many years. If investing for long term benefits, these buyers may also be in positions to once again benefit from a future turnaround into 'seller's market' conditions.
Long Term Investment Returns
Investments based on long term return scenarios will be the most viable for 2010 in both emerging and established markets. As the real estate market in very few regions are expected to show any significant growth patterns during 2010, short term investment options are unlikely to prove successful.
As the real estate sector emerges from its present turmoil over the coming years, long term investments will provide the most significant growth potential. Long term investments also provide the least risk, an important consideration in the current market situation.
Expanding Buy-to-Let Interest
Investor interest to enter the buy-to-let market is expected to significantly increase during 2010 as the situation of the real estate market has provided ideal foundations for successful buy-to-let investments. As resources have become increasingly limited for many wishing to enter the real estate market, long term letting properties are increasing in demand.
Properties ideally situated for short term lettings will also provide investors with sought after yield returns due to the increasing demand for self catering accommodation. The expected growth in the buy-to-let market is predicted to increase competition in the market, therefore optimising properties for letting and correct advertising will further the potential in each local market.
Ideal Investment Locations
Buyers are increasingly looking into particular areas for investment strategies that suit their personal preferences, with fewer looking into markets purely for its investment potential. This has followed the sharp downturn in many of the emerging markets that were previously popular for short term investment strategies.
As benefits abound across all regions in the current market position, considerations relating to the preferential investment strategy will assist in deciding whether the selected location is ideal for investing during 2010. Research is essential for ensuring the correct location for investments, taking into consideration the local demand, supply and letting market saturation.
Looking into the market's previous peak levels in comparison with the current downturn levels will provide some information relating to the length of time the investment will take to recuperate previous peaks in a stabilised market. Considering the loan availability and arranging a fixed rate loan for the longest time period possible will enable an excellent financing option to combine with the low priced properties. Taking advantage of the excellent financing options currently available will further benefit with optimising the potential gains obtainable due to the current market conditions.
As it is difficult to pin-point one particular location for providing optimum investment scenarios during 2010, observing conditions relating to the stability and growth potential, along with the supply and demand of the chosen regions will assist in selecting a suitable investment location. These conditions should include the overall stability of the real estate sector, the strength of the country's economy and the government's encouragement towards both foreign investment and tourism. Locations that have been hardest hit by the economic and real estate downturn are predicted to require the longest recovery periods, creating less potential investment growth over a similar timeframe in comparison to more stable markets.
Frequently Asked Questions
QUESTION:
Is now the time to buy investment real estate or will prices continue to drop?
Opportunities are propping up including vacation rental properties. Will the real estate market be even lower priced in 2010?
ANSWER:
It is better to investment in real estate when prices are low. You can get rental properties at the cheapest rate now. The finance will also be easy to get as recession is going on.
QUESTION:
I am a Real Estate and Finance major. Should I major in Accounting (and go for the CPA) too?
I am a Junior at a State University. Currently I am double majoring in Real Estate and Finance. My expected graduation, as of now, is May 2010. I am a little concerned about the finding a job after college, with the outlook for Finance and Real Estate jobs not being so hot. I would like to work in the Real Estate/Investment world (not brokerage or appraisal), possibly working for a REIT or something similar. I considering continuing my education for another year and getting an additional agree, this one being a B.S. in Accounting and going for my CPA. I have heard that a strong accounting background is very valuable in the business world and will also make you more marketable when looking for a job. What I am really wondering is= Is it really that beneficial and worth it to take another year of classes to get a degree in accounting? Or would it be a waste of time, and I should just attempt to enter the job market in 2010 with my Finance and Real Estate Degree?
ANSWER:
Ok my advice.... Number 1 - Do not major in Real Estate! Just get your real estate license course done through the state and you are good to go. Number 2 - Nothing wrong with Finance or going for accounting. There are quite a few places I have heard there will be an increasing need for accountants so that would be good to go for.
I hate accounting so that wouldn't work for me but I would go for accounting instead of real estate. You don't really need a degree in real estate. If you want a job in real estate a license and any financial degree should be able to get you into almost anything from my experience.
QUESTION:
I am a Real Estate and Finance major. Should I major in Accounting (and get the CPA) too?
I am a Junior at a State University. Currently I am double majoring in Real Estate and Finance. My expected graduation, as of now, is May 2010. I am a little concerned about the finding a job after college, with the outlook for Finance and Real Estate jobs not being so hot. I would like to work in the Real Estate/Investment world (not brokerage or appraisal), possibly working for a REIT or something similar. I considering continuing my education for another year and getting an additional agree, this one being a B.S. in Accounting and going for my CPA. I have heard that a strong accounting background is very valuable in the business world and will also make you more marketable when looking for a job. What I am really wondering is= Is it really that beneficial and worth it to take another year of classes to get a degree in accounting? Or would it be a waste of time, and I should just attempt to enter the job market in 2010 with my Finance and Real Estate Degree?
ANSWER:
If you have the time, yes. Accountants are always needed and can get well paying jobs quickly.
QUESTION:
Tax considerations of Real Estate investment?
A friend partnered to buy some real estate as an investment (he put up the financing the partner handled everything else). They bought the house in 2009 and sold it in 2010. He made a good profit on the transaction (about 00). He isn't sure if he should claim the expenses that occurred in 2009 on this 2009 taxes or whether he should claim both expenses and income on this 2010 taxes. When he buys stock this way the whole thing gets reconciled when he sells the stock so he thinks he doesn't need to do anything for his 2009 taxes. Is this correct?
ANSWER:
The partnership should file a Form 1065 and use Form 4797 to document the sale, allocating expenses /gains in 2010 via Schedule K.
QUESTION:
Why is the United States bailing out the largest Afghan bank?
Looks like it doesn't even have to go through congress. The Fed can just 'lend' them money.
~~~~
The New York Times reports that the U.S. has agreed to assist the Afghan government in bailing out that nation's largest bank in order to prevent a nationwide financial crisis:
Details of the deal, including how much each government would contribute, were still being worked out on Saturday between the Central Bank of Afghanistan and the United States Treasury Department, officials said...
Top officials at Kabul Bank and a senior leader at the Central Bank declined to comment publicly on the proposed bailout, which was still being negotiated. However a manager at the Central Bank and a senior American official confirmed what the American official called an "intervention."
Crowds gathered at Kabul Bank branches around the capital to withdraw dollar and Afghan currency savings, with customers saying they had lost faith in the bank's solvency following a change in leadership and reports that tens of millions of dollars had been lent to political elites for risky real estate investments.
http://www.huffingtonpost.com/2010/09/04/afghan-bank-bailout-us-to_n_705830.html
Searching for people and firms that can offer private funding for real estate may prove to be tough yet will lead you to being successful in your financial growth. Most people will need guidance to alleviate the trouble with taking the required steps toward long term financial stability. The success of your investment objectives can be hard and challenging since traditional lenders are likely to avoid individual with poor credit score. Quite often, approaching private people for financing is usually a lot easier and will help commence any investment plans.
These kinds of private funds are financial resources that are offered through private organization or individuals. Private funding for real estate, business, and much more can find a number of financial institutions in the private sector. There are merits in private funding including lower cost and the most important is its flexibility when compared to other financial loans.
The expenses in addition to payments you make will surely consume your income, and using private funds might help you with all your financial goals. Private funds will assist you begin your investment in real estate and various businesses. This will allow you to control your finances and accomplish your targets which usually might not be possible when you have financial loans other than private funding.
Frequently Asked Questions
QUESTION:
Indian Salaries of Real Estate Graduates?
Indian Salaries for Analysts/Associates in Real Estate Development/Investment Sales/Banking, etc.by Domestic & International companies in India?
ANSWER:
Salary can be anything from Rs 10000 to Rs 10 lacs however depend on which college you have been graduated and what is you capability.
QUESTION:
what courses or program should i study? (real estate investment)?
I am 21 years old and am a big entrepreneur, always looking to make money. I would eventually someday like to get into buying or designing property (not the physical building part of it), then turn around and sell it for profit. ( property flipping.) This is something down the road when i have the money to invest. Currently I have 1 semester of business administration towards my associates degree under my belt. Am i going down the right path? Should I be going to school for Architectural engineering? I have never worked construction or anything, but I want the general idea (landscape or blue print of things) to know exactly how to renovate and build properties to maximize profits. What should I do? Thanks
I dont necessarily want to buy and sell for a company or rather work in an office. its something i want to do on my own. Kind of like private investing i guess? Should i still need my real estate license?
so with this being said, i shouldnt attend architectual school or business? If i get my real estate license, I would learn most of what i need to know?
ANSWER:
I started doing this about six years ago and own several rentals now. I learned so much that I decided to go to law school to become a real estate attorney. I started by getting a real estate broker's license. The licensing process ensures that you have a basic understanding of real estate transactions. Plus, if you act as an agent on your own behalf you will collect a commission (usually between 2 and 3% in most states. Also, try to find a mentor or someone to work with who can show you the ropes. Experience is invaluable.
QUESTION:
Desk Fee for Real Estate Associate?
I am a new , currently inactive licensee who at this time am more interested in personal investment and MLS access than working with other buyers/sellers. For this reason I'd like to to sign on with a broker for a small monthly or annual desk fee. I'd be willing to share an add'l fee/commission on any (non-personal) sales I happen to get, in exchange for broker guidance/mentoring through the process. However at this time, sales are not my main goal, and I don't want the demands/pressures of signing on under a commission agreement.
Can brokers, or agents out there who pay a desk fee, tell me what I should expect to pay and how your agreements are structured?
Thanks!
Goz,
a desk fee brings cash flow to the table. DUH.
I know licensees signed on with brokers for a year or more now, who've yet to make a sale. Do the math!
You obviously aren't a broker or agent who participates in desk fee relationships and therefore should have refrained from 'answering', the question...if you can call it that.
These relationships do exist - in fact the realtor I sold my last home with, has one with her broker.
And as I said I'd be willing to arrange some sort of commission on at least a certain number of transactions per year in ADDITION to the desk fee. That would be worth it to me, for the guidance and experience gained.
What I don't want is what a lot of my classmates and friends who've become licensed are getting ----- nonstop pestering by their brokers to do cold calls, door-to-doors, etc. Since I'm in this for investment purposes right now, that doesn't interest me.
Thanks for nothing, though. Really .
ANSWER:
There are some offices that charge a lower desk free (0/-) & then your commissions are paid on a split (70/30) with your broker. Typically, the lower the split to the broker, the higher the desk fee. When on a split & desk fee, there is usually some sort of tier where once you acheive a certain level of production (usually based on the 30% the broker gets on your commissions), you then jump up to the next level of a higher commission (say 80/20).
Some offices in my area have 100+ agents & specialize in this scenario. It may seem like the broker doesn't make much money with this, but the broker makes their money in other areas, such as charging you for photo copies, color copies, long distance faxing, marketing materials, renting you broker owned keyboxes, signage, etc.
The also make money on your transactions or listings by having a "transaction fee" of a couple hundred bucks or so, or perhaps you may utilize the services of an inhouse transaction coordinator to handle your paperwork, input your listings, design your flyers.
100% desk fees are typically for those more experienced agents that the broker knows are going to be bringing in more sales & listings. In our office, 100% commission plan/desk fee is 0/month.
There are offices out there with desk fee plans & with nearly everyone having a computer at home, it is no longer necessary to spend hours & hours in a real estate office waiting for "walk ins".
You may have to chat up a few agents or make some calls to brokers or managers to find out what plans they have available. If you are looking for the lowest desk fee possible, look at independent offices & stay away from franchised office. Franchised offices will also have "franchise fees" that are paid out of your commission.
Just make sure the broker knows your motivation up front & if you are both OK with it, they should not hound you to making cold calls & knocking on doors.
Be sure to ask their policy on personal investing. They all vary. You may be limited to one per year, after a certain acheivement level or some have no restrictions at all.
QUESTION:
Have you ever thought about investing in real estate?
I currently work for a company called Boston Equity Investments. We help reduce the typical liability associated with normal invests in real estate. If you have any interest in such a opportunity, please visit www.beipartners.com and ask for Jameson. You can also email me directly at liang_jame@bentley.edu
ANSWER:
Reported as spammer.
QUESTION:
Will a real estate agents license increase liability for a real estate investor?
Hello!
I'm a real estate investor in New Mexico and I was wondering if it made sense to get a real estate agents licensee (called an associate brokers license here). My only interest in getting a license is so I could qualify to get my brokerage license in a couple of years and start a property management business which requires a brokerage license. However I'm concerned about getting a license as I have heard it could increase my liability significantly? Does anyone have any advice about this or know of where I could research this further?
Also would I be able to qualify for a brokerage license even if I only pursued my own investment activities or would I need to work for a real estate broker selling real estate?
Thanks so much I very much appreciate your help!
Best, Luke
ANSWER:
Luke, if you're currently buying and selling property, I assume you are doing so on your own (buying property for yourself and then renovating/flipping) and using a real-estate agent/broker/firm/ to do the paperwork.
Just a note: In most states, buying and selling property for yourself does not require a license. However, in some cases, a certain number of deals, and/or properties over a certain value DO require you to hold a State issued RE license.
As a licensed agent, you ARE liable for following all RE Laws, Regs and Due Diligence guidelines set forth by your State, as well as State mandated advertisement guidelines and Federal Fair Housing Laws, to name a few.
Also, as an agent, in some locations, you are required by law to "hang" your license with a broker. Depending on that broker's restrictions, they may ask that you close your deals through their office exclusively.
The short answer, is I believe holding a license DOES increase your liablility by default, because you are asked to operate within the confines of the law as a licensed professional. It can also limit your flexibility during deal making.
That being said, I think it's a wise first step if your ultimate goal is to become a licensed broker. Not only will you be familiar with RE law and practice once licensed, you can offer support to any agents you may hire because you've "been there." There's nothing worse than a clueless broker.
The primary reason why some people don't get into the real estate business right away, much like in any other business, is because they're afraid to simply jump in and end up making a big slip-up that they won't manage to take themselves out from it any time things will go wrong. Therefore many people are still trying to figure out if it's something worth risking their money for or if this is just going to end up being another disappointment. But some are stuck worried and are not really doing anything to find out if they can really make money at real estate.
Therefore it is really imperative that you perform some investigation first and a part of that time ought to be used to prepare a strategy. And the only way to find out if you can truly make money at real estate, is to step up and risk it. You'll not know if you don't move and do something about it.
So let's talk about some of the things that you may ought to look at when building up your strategy.
Frequently Asked Questions
QUESTION:
How can I get started in real estate investing without much money?
I am 24 years old, I graduated from college last year. I work as a contractor right now with some guys. I really want to be a real estate investor. I want to start with small rental properties, but all the money my wife and I make pretty much pays the bills and we don't have much left over. Also, I never know how much I will make each week because work is unpredictable, so I know a conventional loan is pretty much out of the picture. Any advice anybody?
ANSWER:
Patience and Perseverance.
BUILD your credit rating, SAVE for down payment. You need 3.5-5% down for most purchases. 0% down are a very BAD idea and gone now. If you buy property as investment, you need MUCH higher down payment and pay a higher rate. So start with a twoflat that you will live in, build up equity and buy another property later.
QUESTION:
Where is private money found for Real Estate investing?
I'm looking for a private equity type of lending outfit.
While I've heard about private mortgage brokers and such things like that - there is no evidence, none that I have seen, that they actually are out there (though I know they must be)
Being stranded out in the middle of Kansas is making it difficult for me to find any lenders who will work with me. I can work with a >60%LTV and rates as high as 22%, the problem here is my personal credit is bad news and I've not got any cash right at this moment here.
The right lender will make quite a bit of money with me as I don't play games or come up with any stupid ideas. I simple haven't found him/her/them/it (something/someone with enough brains to work with me) so far!
wolfgang007,
I am not going to let bad credit stop me. Forget it!
Thank you Mr. Gee..
Don't worry I don't let being turned down bother me and I certainly won't worry about what someone who can not spell "you're" has to say PS: I'm looking at rehab projects.. fix and flip type of a story.
ANSWER:
I am a mortgage specialist. I do know a gentleman who will lend only on the equity of the property. He will lend you 50% of the property value. He doesn't even want to pull your credit. It doesn't matter. He must be able to put a lien on 50% of the property. He must be in first place should there be other liens on the property. You must pay an up front fee. You must be able to produce an appraisal (doesn't have to be a new appraisal). In the case of commercial property, you must provide rent rolls. In most cases, the people who use this option use it on income producing property where the income will make the mortgage payments and produce revenue for the mortgage holder. If you need further information, contact me at wwi_2@yahoo.com
QUESTION:
How To Start Making Money in Real Estate with No Money to Invest?
I'm thinking about getting into real estate on the side, part from my other job as a personal banker at wells fargo. I trying to find the best way to get into it without any money to start with at the beginning as a real estate investor. My friends were telling me there are ways to make money in real estate without having money to begin with and ways to lock up deals without even owning the property.
ANSWER:
This is very hard to do. Go to the library and check out everything you can find on this subject.
Good luck.
QUESTION:
Is there a way to find private money for real estate investing without paying to get lenders' names?
I have been looking for ways to borrow funds so I can build my real estate investing business, and today I spoke with someone connected to the company that set up my LLC. She isn't the person I normally work with, but said she happened to be in the office. When I told her I need business credit so I can fund my deals she told me her company normally charges ,000 to provide leads to lenders who can give me up to 100K in business credit. I almost fell over and then she said, "We're making a special offer of ,500. for a limited time" As I was getting back into my seat I still wondered how can this be? Can't I find these lenders by doing a Google search or using other web based searches? It seems everyone wants to provide services but the costs can be prohibitive when you're just starting out.
ANSWER:
Many of these so called lenders are really silent partners. It's best to network around with other business people (at events) and establish your business model (plan) with them. It's a little bit of work, but better than paying 00 for someone to introduce you to that you don't even know.
QUESTION:
How do I start investing in real estate? I have some money but not a lot. I am hard working and quick learner?
I was wanting to do this to not only make money but also I would like to have more control over my future. I am looking to do some work myself but in the begining would probably need to contract out more while I learn the different trades. I was also wondering in the my spare time a realators or brokers liscense would be a good idea or maybe go with a home inspectors route?
ANSWER:
I'd wait a year or so for the economy to finish crashing.
If your bank still exists and your money hasn't turned into bird cage lining, then you'll have the opportunity to buy up properties for pennies on (what's left of) the dollar.
An ancient philosopher once said "May you live in interesting times", and we certainly live in interesting times these days! The recession that began towards the end of 2008 and has 00004000 stretched into 2010 with little signs of lessening anytime soon has made us all stop and think about our investments in many different ways.
When the recession began the first thing that crashed was the stock market. Many people suggested that this recession was fueled by the financial sector meltdown. They were talking mainly about regular banks and also investment banks as well. For whatever the reason, the stock market became a very dangerous place to invest in at the beginning of the recession.
While the stock market has come back to a large degree since its lows during the beginning of the recession, it's still a rather dangerous and precarious place to keep your money. Or is it?
Once people started digging a little deeper they realized that the financial sector was melting down because the housing sector and the real estate sector had become massively overheated... what we commonly refer to as a bubble that had finally popped. It was the default of thousands upon thousands of mortgages, to a large degree, that caused the banks to meltdown in the first place, which then caused the stock market to crash.
Frequently Asked Questions
QUESTION:
What is the best method to invest in real estate?
I'm looking to invest a few thousand in the real estate market. What is the best method to invest in the real estate market? I do not mind waiting 10-15 years if need to to wait for the housing market to recover. My question is, how can I go about investing in it now? I do not have enough to actually buy any property, just a few thousand.
ANSWER:
Real estate investment groups are sort of like small mutual funds for rental properties. If you want to own a rental property, but don't want the hassle of being a landlord, a real estate investment group may be the solution for you. A company will buy or build a set of apartment blocks or condos and then allow investors to buy them through the company (thus joining the group). A single investor can own one or multiple units (self-contained living space), but the company operating the investment group collectively manages all the units - taking care of maintenance, advertising vacant units and interviewing tenants. In exchange for this management, the company takes a percentage of the monthly rent.
QUESTION:
What are the best ways to find money to invest in real estate?
I am considering getting into real estate investing in select markets, but have neither the credit nor the money to get started. I would like any suggestions on how to overcome this issue from any experienced investors out there.
I do intend to keep a sales license, and also learn how to appraise and inspect homes, but I do not intend to get a license in that.
ANSWER:
If you like real estate as an asset class but don't have the money to buy properties yet, consider buying some kind of REIT (real estate investment trust) shares, which trade like stock shares. You won't have to have a lot of cash to start, though you will of course need some!
As the first answer says (that answer gets my vote for best answer!), you don't want to borrow heavily to invest in real estate unless you're going to live in the property. Real estate prices move in both directions, and without putting money down, you can end up owing more on a loan than the value of the property you bought with that loan.
QUESTION:
what are the best california rel estate markets to invest in?
i want ideas to invest in cailfornia real estate. areas that have bottomed and will make a rise soon.
ANSWER:
I'm a broker in Southern California. I've noticed some flips and price increases in Irvine, CA. Also, there are some nice one level attached SFRs in Aliso Viejo in which the mortgage and rental rates are even. We are bottoming out in some areas of Orange County and investors are buying the properties cash.
QUESTION:
Best Place to Market Real Estate Investing Services to Professionals in IL?
I am a new broker and my firm, I work for offers real estate investing services to professionals such as doctors, lawyers, accountants, entrepreneurs, business owners, and investors. I am looking for a way to maximize our visability for the services we provide in IL to investors looking to purchase real estate for the passive income, flipping income, and depreciation it offers. What would be the best venues to pursue to reach my target audience that would give me the best bang for my buck?
ANSWER:
I would recommend that you personally allocate 2 hours/day physically visiting the audience you seek. Prepare a script and get yourself in front of these people. You will be very impressed with the results. Good luck!
QUESTION:
Best real estate investing market in south florida?
I want to be a real estate investor and would like to know what city has the highest selling rate in either broward or palm beach county florida
ANSWER:
Livng in Ft Lauderdale, I feel competent to answer this.
The market is horrible right now all over and you can get a great deal most anywhere.
The most stable of all areas is the one with the least For Sale signs, and that would be the area closest to the ocean.
However to get the best DEALS, drive the areas with the MOST signs and just call and ask if they will be willing to give you a steal to walk away.....many will.
The local paper has a search engine that will give you all the answers you want.
I have a friend who moved out of state and has a 3BR 2Ba condo not far from the water in Pompano Beach that you probably could pick up for 5,00 or less that compares with new ones selling for close to 0,000. If you call me at 954 788-9700 I can put the two of you in touch ( I'm NOT a Realtor !!)
Looking for the best <a rel="nofollow" onclick="javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/881276']);" href="http://www.buyandsellplus.com/result.php/serviceId_1/0+Classifieds/cat_14/ 0+Real+Estate+&+Properties">philippines properties for sale?</a>? Well the best property you could buy in the Philippines today are condos. But why not a normal house? The good advantage of condos unlike normal housing in the Philippines or in other countries is that the majority of it are found on business districts. This makes it a lot easier for people to travel to their jobs. Another great advantage of condos is the luxury it provides. But before buying some <a rel="nofollow" onclick="javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/881276']);" href="http://www.buyandsellplus.com/result.php/serviceId_1/0+Classifieds/cat_14/ 0+Real+Estate+&+Properties">philippines properties for sale?</a> such as condos, there are several things you should think about. Before purchasing or renting a condo in the Philippines, its important to look at some important details such as:
The price of the Condo - Before anything else, its important for you to check the price of a condo. Find a condo that not only suits you and your family but also your budget.
Your family - Its important to take note of how many people are going to leave in a single condo. If you're a family of three, then a simple condo with a single or double bedroom would suffice. But if you're more than three, like five or six more people, then a bigger condo is needed. Its important that the condo you chose can accommodate the number of occupants within it.
Security - One reason why condos are expensive is because of the security. Its important to check if there are adequate security personnels taking turns in surveying and rounding the whole compound.
Safety - Fires and earthquakes are some of the things that could threaten a family within their own homes. Before purchasing a condo in the Philippines, its important to check on the safety measures they're making to keep their tenants safe. Fire extinguishers and functioning fire alarm systems should be present.
Location - Take into account the distance of your condo from your workplace. Look for a condo that are both accessible to your workplace and to other places such as malls or market places. This saves a lot of time from traveling from workplace or market place to home.
Adequate parking - Parking is one of the most important thing when you have a car. Its important to check if there are adequate parking spaces around the condo. Also, consider the measure of security and safety taken around the parking areas.
These are some of the important things that anyone should consider before buying <a rel="nofollow" onclick="javascript:_gaq.push(['_trackPageview', '/outgoing/article_exit_link/881276']);" href="http://www.buyandsellplus.com/result.php/serviceId_1/0+Classifieds/cat_14/ 0+Real+Estate+&+Properties">philippines properties for sale?</a> such as a condo. If you value your money, its important to ask those questions. It gets hard to get a refund if you didn't like the condo you chose.
Frequently Asked Questions
QUESTION:
How do you get a local real estate investment club to learn about your house for sale?
I have a house for sale at an excellent price, no realtors involved, and want real estate investors to take note. How can I persuade the person in charge of our local real estate club to distribute my e-mail regarding my property? They get solicited all the time, I'm sure. I already e-mailed my property offer and photos to the generic property investment club e-mail address, is this enough? Will they distribute it to all of their members?
ANSWER:
Tell them
QUESTION:
How does investment in real estate work ? you buy a house or land, keep it and then sell it later with some?
profit! is it that simple ?!!! is so, what cities or states here in US have the best potentail for real estate investment ? I know that sillicon valley is a great place but some people say it has already rised too much and I better find somewhere else. What do you think about this
ANSWER:
It is a very large topic. There are many different ways to invest in RE. Each market is different and what works in a specific market will change over time as conditions change.
You can do some reading on the web. Go to my blog and look for the link to CREONLINE. They have a lot of how to articles and other useful info.
Also go to the library or large bookstore. Pick out a few books and start reading. At the bookstore decide which ones you have just skimmed are worth more study and buy them.
I started investing in Silicon Valley a long time ago. Many times it is best to start where you live. That is what I did. A friend decided that prices were too high so he started by investing in Las Vegas. Prices were a lot lower there at the time and he did very well even with the added overhead of investing at a distance.
You will not get rich overnight. Expect to work at it for a while. The key to successful RE investing is to get time on your side. That means buy now (more or less) and hold for a while so that the market can rise and falls as it will do. Over time the market will rise more than it might fall so you really multiple your gains (assumes that you used leverage and that the tenant is covering the cash flow).
Some markets are over priced relative to the rents. In those markets it might be better to buy low and sell higher short term to build up cash so you can afford to later buy and hold.
There are many strategies so no need to force a bad strategy. Spend a bit on some books and learn what is possible.
QUESTION:
Recently received a letter from an investment real estate company willing to buy my house. The deal they...?
...are offering sounds too good to be true. Has anyone had any experience with one of these companies and is it really as easy as it sounds? What are the disadvantages, if any? They offer to buy the house and put the deed under the name of their company and we would be on the note still until they find an actual buyer. In the meantime they will make the payments and keep up with maintenance.
In addition, my house has been on the market for about 6 weeks. The neighborhood has become one "on the wrong side of the tracks". I live in Texas. The company is legit, I just feel like there may be some fine print they aren't disclosing and I don't want it to mess up our credit.
ANSWER:
If your goal is to sell the house quickly and easily then investment companies are great. Just be sure it is a reputable firm! The major disadvantage is that the goal of professional home buyers is to pay you as little as possible.
If you're fine with selling for less than market value and if you don't need or want the extra money, then sell to the investment company. But going through a broker will often find you a buyer willing to pay much more money for your home. The larger sales price usually results in more money in your pocket, even after taking out the agent's commission!
So it depends what you want out of the transaction--less time or more money! If you do decide not sell through a broker, then you might want to at least have a real estate attorney review all proposed paperwork before you sign anything.
QUESTION:
How does investment in real estate work? How fast can you buy a house that isn't built?
I live in Canada and I think the economy here is well. Now I am planning on buying and flipping a house for the first time. Would it be better to buy a house or condo? Also if I pay downpayment on a house/condo that is still under construction, and then decide to withdraw from the transaction, are there any risks involved? When the house/condo is complete and the value has gone up or down, will I always get all my money (downpayment) back if I decide to sell? And in terms of returns, what is the median percentage I could expect to make flipping the house/condo in let's say a year?
ANSWER:
Whole lot of questions. Generally a house is easier to flip than a condo. Houses are easier to sell. If you enter into a purchase contract to buy a house or a condo, you have to be pretty sure that you want to buy because the seller can sue you if you simply change your mind about following through on the contract. Usually, when you write a contract you give a good faith deposit and your down payment is given when the sale is closing. If you back out of a deal, prior to the closing, for an invalid reason (like you simply changed your mind) you will lose your deposit. If your real estate market is stable (unlike the northeast US where prices got inflated and have since readjusted downwards) you should be able to count on getting your down payment back, but there is not hard and fast percentage of how much your property will increase in a year. There are many variables to consider especially the following three things: location, location, location (old joke).
QUESTION:
should i buy a house or an apartment for my first investment into real estate?
Id like to know is it more better off buying an apartment or a house, and the pros and cons of buying one or the other thanks
The newest 'buzzword' to hit the world of real estate investment is: Real Estate Investment Notes. Now, property notes themselves aren't new, in fact they have been around almost as long as realty itself. But, the 'awareness' of them as "viable investment vehicles" is a new trend that is a direct result of recent "cooling" happening in the realty market in parts of the country. Property backed notes are a dose of "hot" in recent "cool" times.
Smart investors always keep a close "eye" out for any changes in the market and "act" quickly to make the wise investment decisions necessary to avoid 'disastrous' financial losses. You too can benefit from what these "investment-gurus" have come to know about real estate backed notes and stretch your profits/gains a little further if they are generated inside a self directed IRA or self directed 401k.
Passive Cash Flow
Real Estate notes may have a high rate of return if structured properly, and are more secure than most other well-known investment strategies. A real property note is an investor instrument that can be used to earn what has been coined as "passive-income" or "passive cash flow". Simply put, this means you will earn 'dividends' on your investments in real estate notes without having to do much else other than writing a check for your note and voila the money starts flowing in month after month like clockwork. Not bad, but it gets better. Since the money is earned passively through a real estate, you benefit again at tax time. Gains earned by property notes are taxed at low long term (currently at this writing) 15% capital gains tax rates. Do you know of any other investment strategy that allows you to make money passively and at a flat 15% tax rate? Nothing like real property notes has "hit" the realty world yet where you can make money passively, so until or unless it does, notes are the way to go if you want to put real cash and profit into your pocket month after month, year after year.
Frequently Asked Questions
QUESTION:
Has anyone made wealth off investing in real estate mutual funds?
I just invested in trowe price real estate fund.
ANSWER:
hope you didin't put a lot into it the reits are coming down hard and will not recover until summer at the earliest.
QUESTION:
How does investing in real estate compares to investing in mutual funds?
I have ,600 of monthly disposable income. I could buy a multifamily every year for a few years with a 10% down or I could put all of it in my 401k at work. What should I do? I don't mind being a landlord and the work it entails as long as the returns are higher and worth the effort. Also, how much should I expect for a multifamily to appreciate if I keep it for 30 years.
ANSWER:
If you're close to retirement age (within 10-12 years), play it safe and go 401K. If you have time to get into real estate, go with the multifamily. Thirty years ago, home values were about a quarter of where they right now. So a 0K multifamily should be worth at least 1 million by 2038. Also, investing in property gives you the flexibility to take out equity later to leverage more properties. In a 401K, your money's tied up, held in place from the fear of early penalties...
QUESTION:
Investing in Real Estate with limited funds, ,000.00?
Is there a good way to invest in Real Estate with a small amount of cash, ,000.00 or less?
ANSWER:
Unless you are in a seriously low market that is not enough. You need that much at hand if you are in real estate, it can not be the entire investment.
QUESTION:
Where can I find angel investors for my real estate investing company in Massachusetts? Funding needed.?
I have checked some of the answers on here and they were not specific to real estate deals.
ANSWER:
No angel investors do not give money to other investors.
They help the needy keep their homes, they are not there to increase your profit margin.
QUESTION:
How do I invest in real estate? I want to buy stocks or mutual funds.?
I want to add a real estate portion to my roth IRA, but am unsure of what to buy. What are some examples of stocks or mutual funds that deal with real estate?
If you want to take your bank balance from 0 to 60 in the shortest time possible, real estate is the way you can accomplish that. A rich investor who doesn't know what he's doing won't be able to hold a candle to you, once you know the secrets of which properties are the best to invest in. Use a few simple techniques, and you'll have no trouble at all finding and buying it - tax sale property, that is.
Why not just bid at tax sale? Well, there are a couple of serious considerations. There is stiff competition at tax sale, and the bidding will never end low enough for you to profit. Not only that, but you have to come up with all the cash for your bid right then and there, if you do win. As if that weren't enough, if you do get a deed, the owner will probably redeem it before the end of the redemption period anyway.
Frequently Asked Questions
QUESTION:
Has anyone made any money from the Real Estate Investing technique by Jim Ross 'The 55,000,000 Secret'?
ANSWER:
If it sounds to good to be true....
QUESTION:
real estate investing?
I am 26 years old single mom. I have some friends that are real estate investors. I have been reading all kinds of books, fave on being "The Weekend Millionaire's secrets tio investing in real estate. I just haven't rally found out how to get started It tells you everything after that point. I really want to have rental properties to have a nice dash flow in the future I am a stylist and I have no other means of retirement. I would appreciate any answers you'll have for me. Also what can you tell me about investing in stocks?
I have been told to buy a house live in it for a year rent it out buy anpother house, but how would you get a bank loan just after a year allready?
ANSWER:
Real estate is a super huge thing It was a better investment for me than stocks as I was always able to use my investment . Can you eat stocks or live on them? Be careful because there are ways to gain and ways to lose. Don't ever borrow too much or it will all disappear. Hey why not just go into money lending?
QUESTION:
How does one go from owning no real estate to possible owning a 10 million dollar office building?
I am young single and interested in investing in real estate, I have a bit of savings and will be making 55,000 a year, and i start next month. I am curious how someone goes from owning one or a few small rental properties to breaking into larger commercial properties. Should i buy every good deal i can afford, is the secret to real estate investing buying on margin such as working with the bank and loaning money, to raise a lot of capital??? any insight is appreciated thank you.
ANSWER:
QUESTION:
When investing in real estate, how to make the owner carry the mortgage and deed the house to me? Step by step
It seems this is they way most Real Estate investors do it but is a well kept secret. I cna't find a reference on what procedure to use, what documents to use, or even a club to seek for answers. This is how many investors have many houses and don't need to qualify for new bank loans. any help?
There is a difference between a deed of trust, just a deed, and a mortgage. The mortgage is a method promise to pay using real estate as security, a deed of trust is a promise to pay (similar to mortgage) but 3 parties involed Title is conveyed to a trustee rather than to the borrower like in the mortgage case.
, a Plain deed is a transfer of interest or 'ownership' in the property. Correct?
ANSWER:
If someone has a mortgage on their house, the bank owns the house and has the deed. They don't release the deed until the mortgage is paid. It is very hard to buy real estate without you yourself getting a bank loan. I think you have gotten some bad information.
QUESTION:
Is there a way to tap into private money for real estate investing without having to pay someone for such info?
I'm just getting into the real estate investing business and have been learning all about the business thru seminars and mentoring programs. I know that it's possible to do transactions without using my own money or credit but it couldn't hurt to have cash available for such things as auctions where cash is required. I recently contacted an organization that told me they could provide me info as to where I could get 50-100 K in business credit but they want to charge a fee for this info- 00. I find that a bit preposterous since I'm sure the lenders they will connect me with aren't some secret source of funding. Any suggestions on how to get around this fee based company would be appreciated
I'm beginning to think there's no way to find lines of credit without either spending hours researching the subject or paying someone who makes a business of this kind of thing
ANSWER:
Most private money lenders make themselves available through the mortage broker network. Few that I know of actually offer their services to the public. Do NOT pay anyone to obtain credit for you. #1 it is illegal #2 you are paying money for something you can do yourself and #3 in today's market you are almost guaranteed this is a ripoff.
DON'T DO IT. If you don't have the cash for the investment just birddog for someone else til you do.
Residential Properties in Vadodara
There is a saying that nothing grows under the banyan tree, but this is not true for Baroda. A number of factors such as the availability of raw materials, financial resources, product demand, material and financial resources, skillful mobilization of human resources and, last but not least, thriving public and private entrepreneurs have made Baroda one of India's fastest growing industrial centers which is demanding high numbers of residential properties in Vadodara.
Real Estate Market in Vadodara
A recent agreement by the Urban Development Authority with a number of construction companies in Vadodara for the establishment of residential houses in Vadodara as well as commercial complexes is expected to give a further boost to the growth of Vadodara properties. Similar instances of real estate development can be seen in the effort of setting up a Special Economic Zone (SEZ) with the cooperation of some international firms. Seeing the voluminous magnitude of construction work planned for execution in the years to come, the scenario of real estate in Vadodara will completely change to become more like a metro city.
Real Estate Investment in Vadodara
The real estate investment in Vadodara made by NRIs in the development of local residential properties and the execution of township in Vadodara by many renowned builders in its wake have seen the coming up of ultra modern housing accommodation in many areas. You can find swanky bungalows with beautiful landscapes for sale and also for rent in the posh areas. You can also find luxurious apartments, spectacular villas and penthouses in Vadodara. Upcoming condos in several areas offer another option of luxurious accommodations in Vadodara to these highly affluent section of people.
Vadodara properties are showing increase in demand for commercial as well as residential purposes and the trend is not without reasons. Since bigger cities now have very less scope for further property development due to paucity of lands and the prices of those available are hitting the sky, the focus of real estate developers are shifting towards smaller cities that are full of potential. Vadodara, which was earlier known as Baroda, is one of the cities that have successfully gained the attention of developers and investors from every quarter of the country.
Real Estate Investment in Vadodara
A boom in the IT and other industries has aided Baroda real estate to a large extent. Residential projects like luxurious bungalows, low rise township and affordable apartments in Vadodara shows that the real estate here is on an all time high. Thinking of having a home in Vadodara? Then dont look back to take the decision as recently, real estate developers Pacifica Companies, have launched so many residential schemes in Vadodara, it is one of the most renowned real estate companies in Vadodara. All the housing schemes are affordable residential schemes in various areas of Baroda. All residential projects, they address a wide spectrum of design and construction needs.
Frequently Asked Questions
QUESTION:
What business type should I start my real estate investment company as?
I need some good advice on whether I should start my California-based real estate investment company as a sole proprietorship, a partnership of some sort, or some kind of a corporation. The general purpose of this company is to purchase and rent out residential and commercial real estate. Any help would be greatly appreciated.
ANSWER:
I'm in the same boat and looking to buy my first property as well.
I set it up as an LLC.
Sole Proprietor is generally a bad move in my opinion as it offers no protection of personal assets should something happen to that property.
If you want to send me an email through the system here, I'm more than happy to chat about what I've done, who I've talked to, and what contacts I've made.
QUESTION:
Where can I find opt-in email lists of real estate investors?
I own a real estate investment company. We buy and sell residential and commercial real estate. I am looking to see if email lists are available for groups of active real estate investors/investment companies. Obviously, I want them to be opt-in lists open to receiving listings of properties we have for sale.
ANSWER:
Try http://www.loopnet.com/
QUESTION:
Are there any investors that would like to invest in a construction and real estate startup company?
I want to start up my own business and need help. I have a business plan and have a very qualified management team. However, I lack the funds needed and I am having a hard time obtaining them. I am looking for an investor or group of investors that are interested in funding the start up of a real estate investment company that also performs various construction services within the commercial and residential spectrum.
ANSWER:
This is not the place to actually find investors. You'll find plenty of scammers though. How about going to a bank. If you have a business plan and a quality team then it shouldn't be a particuarly big problem. Additionally you can search out some venture capitalists.
QUESTION:
Land Real Estate Investment?
I have a plot of land in Almeria, Spain. The plot is for residential, hotel, commercial and golf use. The plot is 3.169.114m2 and is situated in front line beach. Does anybody know of an investment company capable of developing this plot???????
ANSWER:
I have ties with several companies if you want to email some pictures. Of course, I would want a fee to put the deal together.
QUESTION:
Does anyone know any high net worth investor interested in a luxury real estate project joint venture good ROI?
My partner and I are seeking a high net worth investor to bankroll our high-end lakefront spec home project. We are looking for an individual who has capital available to invest and is interested in a joint venture. My partner and I are having to regroup. We had a funding partner for our project, and we were going to begin soon. However, our funding partner just found out that he has a serious illness and is having to withdraw from the project. So, we are now in need of another funding partner.
We are seeking million to fund acquisition of 3 lakefront lots on Lake Burton ( North East Georgia Mountains) and to fund construction of 3 spec homes. We have currently negotiated to purchase three lakefront lots, have obtained all the permits and approvals, have chosen floor plans, have formed a real estate holding company, and simply need the capital to begin. Time is of the essence for us, and we are offering 40% on a JV. (We are seeking 100% funding) The officers of LCI (real estate holding company) bring together the expert experience of marketing and constructing residential real estate in the north Georgia mountains. We plan to construct and sell three high-end residential homes during the year of 2008/2009 and create a return of approximately 75% or approximately ,000,000.00. This is a very simple and rather turn key investment that is secured by some of the most desired real estate in Georgia. Also, 2007 was a record breaking year for home and lot sales on Lake Burton despite other real estate market crashes, and 2008 is looking even stronger. We will NOT pay any upfront fees and we are NOT looking for a loan. We are simply looking for an individual investor who has the available liquid capital to partner with.
Business summary and complete detailed package available in pdf format.
When buying Mexico real estate for the first time, it's often difficult to tell if the property type and area we are choosing is really worth buying or not. While this points to the importance of choosing the right agent to work with, it also points to the importance of gaining information, tips and insights from experts ahead of making a real estate choice. One of the most interesting real estate types is Mexico land for sale. Here we will give some tips for the Puerto Vallarta real estate area and land.
To start off, Puerto Vallarta land continues to be an attractive and viable purchase and investment. When you consider your choice of a lot in Puerto Vallarta, consider the following points:
Views - One of the most attractive and central features of the market in Puerto Vallarta is that of views. Buyers pay more for views of the bay, views of the mountains and views of the old town. For this reason, when you buy a piece of land, it's important to consider what view is offered by the finished product (i.e. the home you have built along with other features such as patios and terraces.)
Frequently Asked Questions
QUESTION:
Is Honolulu a good place to raise kids? Other Hawaiian areas?
We will be making a move after next school year... so, summer 2011. We are strongly considering Hawaii, and though I first thought we would look mostly at Maui or the Big Island, I do like all of the resources available in the Honolulu area. (things like apple stores, writer groups, lots of high-rated private schools.) We would rent for one or two years before considering purchasing.
I like the looks of the Punahou School. What are the other great Honolulu schools? ALSO... What are some other top private and public schools in Hawaii? Big Island? Maui? My kids are 9 and 7, and will be entering 3rd and 5th grades when we move. Interested in elementary, middle and high school information.
Also - a Catholic school wouldn't be a good fit for us. My hubby is Jewish. A relaxed religious school would probably be fine (Punahou.)
We are an open-minded, creative, vegetarian, animal-loving, environmentalist family.
Would appreciate all input. Thanks so much.
P.S. I'm an artist and writer. My husband is in investment real estate, and we will be fortunate to earn some passive income on properties we own here in North Carolina. I know $$ is a big issue in Hawaii, and we will make sure we are prepared to cover our costs.
Many thanks!!!!
Thanks so much for that response, Anna!
Another little question...
Is the VOG really horrible? Are any areas free of it? My son has had respiratory issues (not asthma. allergy related.) , so I have started researching this.
ANSWER:
if u don't wanna deal with vog and would like a quieter area for living look in to Kauai im not sure about the schools as im not in school or have kids. but if ur an artist writer kauai is a great place for that north shore Princeville area lots of great artist to talk to work with. lots have small galleries in town and its a very friendly community and sounds like u are into the open feel with the animals and not the big city life that can be see more in honolulu. check out our local website has lots of good info probably some on schools some place with in? http://thegardenisland.com/ i live near Princeville myself
QUESTION:
I'm a retiree on a fixed income. How can I still invest in rental property?
I read an article on this real estate investment blog that says I can use my IRA to purchase rental property.
This company says its called a Self-directed IRA and the IRA holds the title to the investment property so that the income from the property goes back into my IRA. And even after paying expenses like property taxes and insurance, the income made with an investment property purchased with a self-directed IRA can be two to three times greater than other fixed-income offerings.
I haven't heard or seen much about this and wanted to make sure this blog is a good source for information.
http://www.artisanrealestategroup.com/arizona/2011/04/using-iras-to-buy-real-estate/#more-275
Thanks for any suggestions you can offer,
Misty
ANSWER:
It can be done but it is a real bad idea. It is not a passive investment. If you pay others to do all the work you don't make much, if any, money. It is job.
You are better off investing in Real Estate Investment Trusts (REITS) if you want a real estate component.
But if you don't mind painting plumbing cleaning gutters and roofs mowing and cleaning the whole house between renters then you can make some money. But that is money off your work, not the investment. Plus you have liability and need a lot of insurance. Plus you can get a bad renter that steals you blind or steals your blinds, lol, and do lots of damage.
It ain't easy.
QUESTION:
Flipping in today's market?
I am a new real estate investor looking forward to getting started. I have done plenty of research on real estate investing and flipping. Ive read many questions about flipping here on yahoo answers. However most of those question were from 3 or 4 years ago. Alot of answers were "Flipping isnt good in today's market". I want an updated answer on whether or not flipping real estate is a good investment is today's market. (2011)
ANSWER:
Flipping properties is still a good way of doing real estate investing. The techniques have changed a bit, but there are those that are still flipping.
I don't know how much research you have done over the last few months. One of the first things you should do is join a local real estate investment group. This group would have all the latest techniques and information about the area in which you would want to work. You might meet a mentor in this investment group that would assist you in your endeavor.
If you haven't you should read as many real instate investment books dated after 2009 as possible about the subject. There are some new rules in place about flipping. One that is prominent is that you now must hold a property for a minimum of 90 days before you would be able to have a potential buyer get a mortgage loan.
To over come that obstacle you might consider financing the property yourself to your new potential buyer. Plan to do this for a minimum of 1 year as owner finance. Then assist your buyer in refinancing to a FHA mortgage loan.
Properties are as cheap as they have ever been. That is not the problem, buying cheap properties, the problem is that the mortgage lenders have made it almost impossible to secure a mortgage loan.
Since this is an obstacles you must overcome this by owner finance and/or renting.
Eventually the market will return, the mortgage lenders will once again do what they are formed to do and that is lend to potential borrowers.
Most real estate investors invest in properties for a couple of reasons and those are leverage, appreciation and possible tax advantages.
In order to be successful in real estate investing you would have to have a professional team assist you. The following are some that might be on your professional team. An attorney, tax consultant, real estate agent, property management company, notary public, insurance agent are just a few. You might add or subtract who you would want on your team. Composing your team is not an over night event. You would have to learn to trust these people and they you.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
QUESTION:
If we raise Taxes on the rich in the US, will some of them move their money and invest in other world markets?
Is there a poll anywhere that states where the rich will be willing to go or is it already happening?
http://blogs.wsj.com/wealth/2011/05/18/the-rich-are-moving-more-money-overseas/
Note that there are countries with booming economies who are welcoming the US rich to invest. In fact in some cases they have changed their laws to make them too good of an opportunity to give up. Panama for example, since 2008 their Europe tourism has grown 23.1% and along with that growth they have implemented laws for the promotion of tourism investment in Latin America and the Caribbean. They have also implemented investment laws in 2008 (in an effort to attract Americas Rich) that offers incentives such as 100% exemption from income tax, real estate tax, import duties for construction materials and equipment, and other taxes. In respect tourism investment has grown 62%. So is taxing the daylights out of the rich a smart move in our country?
And for those who say they want the rich to “Pay their fare share”, read the links below.
http://www.taxfoundation.org/publications/show/27099.html
summary here:
http://www.marklevinshow.com/goout.asp?u=http://www.taxfoundation.org/blog/printer/27134.html
ANSWER:
This is what happens when a market gets saturated. The USA market was growing rapidly since the 1940s when most other economies were still suffering from the money and industry they lost during th World war. It now seems things are leveling out. for example Brazil has ordered six new nuclear submarines a sign they wish to push their influence in south America and be a large regional player.
QUESTION:
Does not this news expose the hollowness of Sibal's arguments about Raja's 'procedures'?
Sibal is repeatedly harping on the ''first come firest served'' procedure alone (as being followed from NDA's period) to help Raja weather out the impact of whole range of corrupt practices played in the spectrum deal! But the CBI submission in the court pressing for his arrest exposes the man in the true colours:
"...The accused had entered into a criminal conspiracy with private persons and abused their official position as public servants in granting Letters of Intent for Unified Access Service (UAS) licences to certain companies at nominal rates, the CBI argued. The CBI also accused the three men of rejecting the applications of other companies without valid reasons, thereby causing a loss of Rs 22,000 crore to the government....
"We need to question Raja about payments made and money received in various accounts during 2008-2010. We have found documents relating to investments made by him and his family in real estate and businesses," said a CBI officer.
"He has been evasive... We will confront him with seized documents, suspects and witnesses," the officer said...
"Defence counsel Ramesh Gupta argued that Raja could not be held responsible for an imaginary loss of revenue when the government had considered the rate fixed in 2001 to be suitable, given that telecom had always been seen as part of social infrastructure and not for profit-making or revenuegeneration...
"The court rejected the plea: "Considering the nature of allegations, seriousness and gravity of offences and the consequent need of interrogation... the prayer of police remand is justified."
Do all these seem to relate just to a procedural lapse or calculated criminal intent to misuse the procedures for personal gain, at the cost of naitonal revenues?
what is your perception?
When Ministers are hell bent to spread lies all day, why should we spare them our own reactions? But you may agree with them (UPA) too, if you think you have good reasons for it!
Please open your hearts!
ANSWER:
Sibal was well exposed in his first conference when he said that there is no any losses in 2G spectrum allocation by Raja.That time and still he is just a lawyer not a politician or a member of political party but tag wit him of Congress.But he forget that his statements are hearing by not a single Judge but by the of People of India.
What he can do his best as a lawyer except it ? He is prominent lair so he is is big lawyer.He is big drama artist so he is big lawyer.
Now what a lawyer will do if his elite boss is in trouble ?We know Raja have no any capacity and dearness without two prominent leaders of Congress and DMK to do this wonder scam.So Kapil is doing his best to diverting the presser on Congress to toward BJP.
But by his over smartness and over cunning acts, he is just creating more and more problems for his elite leader and for Congress party.Now people are sure that Sonia have a big role in these all corruption.People are not came on the road as like Egypt but they are well prepare for next election.Take my word,Congress will pay in long term for it.Voices are already started from south against Sonia,gradually it become worse for this Gandhi family.
PS: I'm looking at rehab projects.. fix and flip type of a story.
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