Options as a Strategic Investment » Real Estate Investor http://optionsasastrategicinvestment.net Option Trading as your main investment strategy Sat, 31 Jul 2010 21:50:46 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Marketing Methods Used in Real Estate Investments http://optionsasastrategicinvestment.net/marketing-methods-used-in-real-estate-investments http://optionsasastrategicinvestment.net/marketing-methods-used-in-real-estate-investments#comments Thu, 24 Dec 2009 11:40:03 +0000 admin http://optionsasastrategicinvestment.net/marketing-methods-used-in-real-estate-investments Finding motivated sellers of real estate property is a challenging task. One has to be innovative & enterprising to locate motivated sellers.Unique Marketing Methods to Find Motivated Sellers:Magnetic Car Signs:You can use your car for this purpose. If you have seen magnetic signs made for your cars expressing your desire to buy homes along with phone numbers, prospective sellers will get in touch with you. You can have similar signs in all the cars of your family members.Door Hangers:You have to create door hangers which suggest that you are interested in buying houses, which should display your phone numbers also. Children of the neighborhood can be utilized for this purpose. This gives direct publicity & word of mouth advertising. As negative fallout, some house owners may get angry. You have to manage the situation. It may bring positive feedback too.Service Professionals:You can print business cards detailing your intention along with e-mail id/phone number/fax number & distribute them to service professionals like electricians, plumbers, painters, masons, etc. there may not be immediate response. But, they may be useful at a later date.Local Internet:Include your website address in all your business cards, flyers, newspaper ads & the like. You should advertise your services on local Internet websites such as community website, local newspaper sites & other websites belonging to local organizations.Annual Promotion:Promotional campaigns every year will boost up the prospects of locating motivated sellers. Something like a big billboard can be placed in a strategic area at a vantage point. It should catch the attention of the passersby. Radio or Television shows may help you in promoting your business. Seminars or symposia can be arranged to publicize your business. The expenditure for all these ventures will be quite high. But, this will bring a fortune. It will shoot up your real estate investment options. Many motivated sellers will knock at your door. People who are new to the profession need not spend huge sums for promotion campaigns. They have to establish in the business initially with a few deals & jump into the foray of big business when the atmosphere is very conducive.For more details, please visit:http://realestatewealthtoday.com/FREE-eBook.htmlThis is a day of online trading. Almost all branches of business activity employ Internet for their business promotion. Real estate is no exception to the trend of online marketing. A good number of house owners search Internet when looking for perfect property. Real estate owners must have an effective web presence.Internet has brought about dramatic & significant changes in the real estate industry. This is to be noted by real estate agents & investors. It is simply astonishing to know that there are over 20 lac hits everyday for the keywords “Real estate” in the major search engines such as Google, Yahoo & MSN. The real estate business will remain open 24/7. The prospects of business promotion will be tremendously bright. You need to ensure that it is placed high on the scale within the results pages of the search engine.If a potential property buyer has to click in your site, you need to appear, normally, within the first two pages of the results. The reason for this is 80% browsers stop with the first page & 95% of the browsers do not cross the second page. So, if your site is not ranked within the first two pages you may not get sufficient business promotion. Through Internet marketing, it can be achieved.Advantages of Internet Marketing: * It offers quicker solutions. * Clients can easily reach their avowed targets. * Most of the younger generation are net-savvy & they can clinch the deal using Internet. * Websites have become more popular than literature, thanks to Internet.So, prospective sellers & expectant buyers – both of you can get the deal performed through Internet.

]]> http://optionsasastrategicinvestment.net/marketing-methods-used-in-real-estate-investments/feed 0 Real Estate Investing Guide – Why Do You Need Them http://optionsasastrategicinvestment.net/real-estate-investing-guide-a%c2%80%c2%93-why-do-you-need-them http://optionsasastrategicinvestment.net/real-estate-investing-guide-a%c2%80%c2%93-why-do-you-need-them#comments Fri, 18 Dec 2009 11:18:19 +0000 admin http://optionsasastrategicinvestment.net/real-estate-investing-guide-a%c2%80%c2%93-why-do-you-need-them A profitable form of investment, which will provide high returns at low risk, is something everyone is looking for. Once the stock market was the primary focus for such investors, but presently this market is quite volatile. As a result, the real estate market is becoming a better option for most of the investors. But before investing in a real estate market, you will need to be familiar with some terms and strategies. In fact, following a good real estate investing guide will help you to get high returns at a lower risk.

There are basically two types of properties where you can invest. These are the residential properties and business properties. The major differences between these two types of properties are the finances involved. In addition, there are some different guidelines and rules that you need to follow while obtaining such properties.

The following are some real estate investing guidelines that will help you in obtaining residential as well as business properties:

The location of the property: It is better to opt for properties that are located in the city center or are well connected to major business districts. For residential properties, look for one which is in proximity to supermarkets, schools or train stations.

The market value of the property: Do a proper research before purchasing any property. It is better to study the comparative rates of the neighboring properties. This will help you to identify the real value of your property.

The neighborhood of your property: You also need to consider the neighborhood of the property you are about to invest. Verify its safety from the local police station as well as from the local administrative figure.

Real Estate Investing Guide Books

You can also refer to some real estate investing guide books to learn the tricks of this trade. However, you need to look for certain factors which shopping for such books.

You also need to have a proper exit strategy. It will help you to get out of a deal if things go wrong, before it drains your resources.

]]> http://optionsasastrategicinvestment.net/real-estate-investing-guide-a%c2%80%c2%93-why-do-you-need-them/feed 0 Real Estate Investment – Top Secrets Real Estate Investors Use To Turbocharge Their Businesses http://optionsasastrategicinvestment.net/real-estate-investment-top-secrets-real-estate-investors-use-to-turbocharge-their-businesses http://optionsasastrategicinvestment.net/real-estate-investment-top-secrets-real-estate-investors-use-to-turbocharge-their-businesses#comments Tue, 15 Dec 2009 12:19:37 +0000 admin http://optionsasastrategicinvestment.net/real-estate-investment-top-secrets-real-estate-investors-use-to-turbocharge-their-businesses Have you ever wondered why some real estate investors seem to make it all look so easy? We have all heard the stories about how one investor made over $100,000 in a week by flipping a house. Or maybe about how another one bought a multimillion dollar apartment complex and walked away with cash at closing.
So how do these people do it? And is it something the average person off the street can learn to do? Well, those are some of the same questions I had when I first started in the business. So I spent months of research and tens of thousands of dollars to learn what strategies these successful people use that the rest of us do not. What follows is a brief summary of what I learned. Some may surprise you, others may not. However, I found these to be common words of wisdom from every successful investor.
1. Real Estate Investing is a Business, Not a Hobby
Every successful real estate investor I know operates their endeavors strictly as a business, even if it’s just a part-time thing. This means setting up a Corporation, S-Corp, Limited Liability Company, Limited Partnership, General Partnership, or typically some combination of these entities. Notice I didn’t mention Sole-proprietor? Talk to a knowledgeable real estate attorney in you area for a better idea of which ones are right for you and your goals. Not only will the right entities protect you and your ASSets, but will allow you to take advantage of certain tax advantages you would otherwise not have. If you stop reading here and take no other advice from me please, please do this one.
2. Build A Team of Experts
Few, if any, business owners succeed without a team of experts to guide them. These people can save you a tremendous amount of time and money and possibly even legal problems. Your business team should consist of a good real estate attorney who understands the state laws and an accountant. I recommend finding an accountant who is also a real estate investor if possible.
You should also have a realtor in each area you are considering investing in, an appraiser, a home inspector, an escrow company, a mortgage broker, other investors, a general contractor, and an insurance agent. There are other specialist would should also consider for special cases such as an architect, a surveyor, environmental company, etc.
3. Have a Plan
Develop a business plan for your real estate investing venture even if you are not new to it. After all, this is a business and few really reach their potential without a good plan. I promise you, spending a few hours putting it down on paper will be well worth it. And it’s always good to revisit your plan often to keep you on target.
4. Network, Network, Network
Real estate is people business. If you haven’t done so already, get good at smoozing. Now I don’t mean the used car salesman type where you do all the fast talking. Join your local real estate investment club, become a member of a church if you aren’t already, volunteer with Habitat For Humanity, just get involved! Get to understand what the seller’s or buyer’s needs are. This means listening! Get to know what other investors are looking for and who the local “players” are. You may be able to do a partnership on a deal or refer them to a deal that may not be exactly what you’re looking for. Above all, treat everyone you meet with respect whether they’re your team, sellers, or buyers and they will respect you. If you do these things, more deals will come your way than you can possibly handle. I can think of a lot worse problems to have!
5. Know Your Market
Spend some time getting to know the areas where you plan to invest. Go to some open houses and talk to the agents. Drive the neighborhood and look for the “For Sale By Owner” signs otherwise known as FSBOs. Look for homes that appear vacant or in disrepair. Learn how much homes go for in the area and what the local trends are. Talk to some the local residents and learn what the community is like. Is there crime in the area, how good are the schools, is the area growing, what are the local demographics? This information will serve you well when it comes time to invest.
6. Never Buy A Property Without At Least One Solid Exit Strategy
In real estate, you make your money when you buy, not when you sell. So what am I trying to say here? For each offer you make, you should know exactly how you are going to make your money from it. It could be as a rental for which you should have a positive monthly cash flow. It could be as a rehab and flip for a profit. Or maybe you may offer it as a lease with an option to buy. Or, it could be hold for the equity growth. Run your numbers for each strategy. If the numbers don’t work, don’t do the deal no matter how much you like the property!
7. Treat Your Agents Like Gold
Real estate agents can make or break your business and a good one is worth their weight in gold. They will do much of the legwork for you and bring you potential deals. They know their areas inside and out and can steer you away from potential problems. They will even find you buyers for your properties as well as show it while you are out looking for more deals. And, they work only for commissions based on the sales price of properties that sell.
However, most real estate investors don’t buy and sometimes don’t sell property at full market prices. This could directly affect your agent’s commission and their motivation to support what you want can diminish. I suggest paying your agents commissions based on market price regardless of the ultimate sales price. Yes, it may impact your profits some but you’ll have a very loyal agent. And guess who gets the first phone call when hot property comes up!
8. Don’t Be A Hog
The old saying goes, “Pigs get fat, and hogs get slaughtered.” The saying holds true in real estate investing as well. Many new investors make the mistake of trying to squeeze out the maximum profit out of every deal and then wonder why they can’t find any buyers. Don’t be afraid to leave something on the table for the next guy, especially if you’re selling to other investors. It’s better to make a lot of smaller profits over and over than it is to make one big profit. This strategy should have potential buyers lining up at your door when you have a property to sell.
9. Give Away 10-15% of Everything You Make
I can hear you now, “He said what?!” That’s right, give away 10-15% of everything you make. How you decide to do it is up to you, but I warn you, you may have to get creative. Steve, a mentor of mine follows this rule like a religion. In fact, on his very first deal he made about $5,000 which he need desperately, since he had recently lost his job. He was nearly bankrupt but still decided to give away some of his profits. He decided to buy his pastor a new suit, something he had never had in his life. Even though Steve was excited about making the money, the look on his pastor’s face when he wore it for the first time made him feel ten times better. By the way, word got around very quickly and before you know it, he had three more deals in the works that profited much, much more.
10. Offers, Offers, Offers!
You’ll never make any money if you don’t first start with an offer. But for some reason, this seems to be the biggest hurdle for most new investors. I like to use the “Fire, Aim, Ready” approach to making an offer. Don’t spend a lot of time trying to figure out what the perfect offer will be, just make one. Most of my offers are made without ever having seen the property. Remember, if the first offer doesn’t embarrass you, it’s too high. I know of a very successful real estate investor in the Tampa area who once offered $1 for a $14 million golf course! Okay, so he eventually bought it for a little over $2 million and the resold it a couple of weeks later for a tiddy profit. It’s only after you have the property under contract that you should spend the time to determine if the price is right or not. Most successful investors will make 25 or more offers a week of which maybe only two or three may eventually end being accepted. Of those, maybe one will make it to closing. But let’s see, one deal a week, $5-10,000 profit each….you get the picture.
11. Have Fun
Like any business, real estate investing has its challenges. Sometimes deals fall through at the last minute, renters can be a real pain, or you find out about the sewer line collapsing at one of your properties that needs $15,000 in unexpected expenses to fix it. There will always be obstacles to overcome but the rewards can be well worth it. So have fun with it! If you truly enjoy it, it will show on you and suddenly the problems don’t seem like such a big deal anymore.
There are many more tricks to the trade depending upon which niche you decide to invest in. But the basics are the same across the board. Apply these secrets and you too can become the next multimillionaire!

]]> http://optionsasastrategicinvestment.net/real-estate-investment-top-secrets-real-estate-investors-use-to-turbocharge-their-businesses/feed 0 What you Need to Know About Creative Real Estate Investment Strategies http://optionsasastrategicinvestment.net/what-you-need-to-know-about-creative-real-estate-investment-strategies http://optionsasastrategicinvestment.net/what-you-need-to-know-about-creative-real-estate-investment-strategies#comments Sun, 13 Dec 2009 11:46:02 +0000 admin http://optionsasastrategicinvestment.net/what-you-need-to-know-about-creative-real-estate-investment-strategies What You Need To Know About Creative Real Estate Investment Strategies

There has been a considerable rise recently in the number of homes treated as investments. The real estate market is growing at incredible speed, and showing no sign of deceleration.

There are two ways to profit from a real estate investment: short-term and long-term. There has been an incredible surge in the number of short-term property investments in the United States, in part because of the speed at which it is possible to produce relatively large profits. Long-term property ownership benefits include tax incentives, and the associated rise in market value of assets. A long-term investment is obviously slower-moving, and consequently there are fewer risks involved, less chance of making a mistake, etc. But a quick profit is tempting, and will sometimes outweigh the hassles of long-term property management.

In order to figure out which method is best for you, calculate the total cost of your investment, and compare that figure with possible tax savings. Some things to consider: monthly payments, interest charges, property taxes, insurance, repairs, and general maintenance.

You may also wish to rent part or all of the property, in order to produce income for repairs, etc. ‘Good’ tenants will help relieve some of your financial stress, but remember that tenants can be a hassle—to find, keep, and maintain. And if your property is occupied, it will become difficult to perform necessary repairs, etc. It will inevitably take much longer to sell the property.

Foreclosed homes can be a great investment, but they often require a significant amount of cash upfront. And these properties are generally in need of some repair. Put aside some extra cash for restoration, especially if you’re not skilled in the necessary trades. Contractors can be expensive.

Similarly, there is money to be made from abandoned properties, although unlike foreclosures, purchase of an abandoned property generally requires a great deal of legal procedures. In order to find out who owns the title, you may need to spend some time and money.

If you’re weary of laying down significant sums of time and money, you might be interested in paper-based real estate investment, which is similar to stock market investment. There are a variety of ways through which you can invest in properties without actually worrying too much over titles, paperwork, and the physical needs of the property. Before investing in these types of ‘non-property’ options, though, speak with a trusted broker.

]]> http://optionsasastrategicinvestment.net/what-you-need-to-know-about-creative-real-estate-investment-strategies/feed 0 Benefits of Real Estate Investments Strategies http://optionsasastrategicinvestment.net/benefits-of-real-estate-investments-strategies http://optionsasastrategicinvestment.net/benefits-of-real-estate-investments-strategies#comments Sun, 06 Dec 2009 11:26:14 +0000 admin http://optionsasastrategicinvestment.net/benefits-of-real-estate-investments-strategies Real estate investing has offered investors much better returns than most other investment options. Real estate investment is one of the safest investments available. The security of real estate investments is becoming more and more increased these days. Real estate investment is a safe way to start making your personal wealth and retirement finance provided if you act wisely. Real estate investing offers excellent long term returns and sometimes even short term gains. Real estate investing can bring you high profits if you follow certain tips.Many countries offer wide real estate investment opportunities. Real estate investors can easily find excellent profits in rentals, rehabs and high-end properties. Buying properties to use as rentals is very successful real estate investment strategy.  The high-end properties have powerful demand among real estate investors, especially in the most desirable areas, such as Paris. The most successful real estate investment strategy is rehabs. Rehabs are also the most risky form of real estate investments. If there is huge demand for finished real estate properties, the opportunity for real estate investors increases widely. Finished real estate properties provide excellent opportunity for real estate investors who are willing to rehab and then rent or sell properties. Real estate investors who want to sell a property after grasping it for only a few years can benefit from this type of real estate investment strategy. Real estate investors who rehab properties can either sell or rent the rehabbed properties for a worthy premium. Real estate investors can buy a run-down property in a main location at a cheap price, remodel or modernize it and then resell or rent it successfully.Flipping, Bargain purchase investment strategy, Increase value investment strategy, Double-digit cap rate investment strategy, and Commercial Real Estate Investment strategy are the other real estate investment strategies. Flipping involves buying and selling real estate property without actually taking ownership of the property. Flipping enables you to make money with real estate without possessing the property. Bargain purchase investment strategy involves purchasing real estate property for at least 20% less than the current market value. Increase-value investment strategy involves buying a real estate property for its current market value, remodeling the property in order to increase its value by at least 20%, and then selling it. Double-digit cap rate investment strategy involves buying a property having a capitalization rate of 10% or more. Commercial Real Estate Investment involves buying commercial properties that are bigger than a 4 unit apartment building. It is better for the real estate investors who are beginners in the field to avoid commercial real estate investment strategy. On the other hand, if you have experience in real estate investments, you can go for commercial real estate investment as the competition is much less.

Different real estate strategies require different amounts of time. For example rehab is really time-consuming. Real estate investors must not choose a time-consuming investment strategy if you cannot spend much time for real estate business. Some real estate strategies require huge amounts of cash. For example, to buy foreclosure properties whereas buying a property at auction requires little or no cash.  The different real estate investment strategies provide different benefits. It is up to you to choose the strategy you feel more comfortable with. But make sure you choose the right strategy that best suits you, and work accordingly.

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