IRA Real Estate Investing When the Going Gets Tough

IRA Real Estate Investing When the Going Gets Tough
By [http://ezinearticles.com/?expert=Peter_Alderton]Peter Alderton

IRA real estate investments are booming in 2008 for soon to be retirees who are worried about their future retirement plans. With the economy looking wobbly, the stock market plunging and the big investment banks going under, with us bailing them out, some traditional forms of retirement investing are starting to look a little sick.

For these reasons IRA real estate investments are increasing. Increasing? Surely not. Along with an economic meltdown, a stock market collapse and all sorts of economic turmoil, isn't the real estate market headed for oblivion as well? Who in their right mind would consider investing their IRA in real estate?

Surely in 2008 real estate is a one way trip to the poorhouse.

No, not quite. Have you ever heard the expression that there is opportunity in adversity? There is plenty of opportunity in real estate right now, if you know where.

But lets look at IRA real estate investing first. How can you invest your IRA in real estate? Is it allowed? Is it legal?

Traditionally the majority of the population invest their IRAs in investments that are promoted to them by their custodian. In fact some custodians limit allowable investments to their own. So, it's estimated, over 90%, in fact around 96% of IRA funds are invested this way. Mutual funds, CDs and stocks, and so on.

No problem if the markets are pushing ever skyward, but quite a problem right now.

But what about IRA real estate investments? Yes it's entirely allowed to invest your IRA in real estate through a self directed IRA. Although this is not widely recognised, IRA real estate investing is one of the best forms of wealth accumulation for retirement. Real estate is a traditional long term wealth accumulation model, and as such is in fact ideal for IRA investing.

If you're not certain about the details of how to set yourself up for IRA real estate investing consult your CPA, that's outside the scope of this article. However take my word for it, it's quite legal, and many canny IRA investors are doing it right now, and have been for a long time. You may need to execute an IRA rollover into a self directed IRA, but the trouble is worth it.

And there's powerful reasons to consider investing your IRA in real estate. Did you know, for example, that it's estimated that 85% of all wealth in the US was created through real estate?

And that through your IRA you can secure up to 70% bank non-recourse financing to invest your IRA retirement funds in income producing real estate?

Its food for thought isn't it?

Now back to the real estate market. After all there's no point in IRA real estate investing if the value of your real estate investment is going down is there?

Although we all hear that the real estate investment market is dreadful this isn't the whole story. PARTS of the real estate market are dreadful, but not ALL of it. It's perfectly possible to find excellent opportunities for investing in the lower priced end of the market. Simple comfortable homes for the working class who live in those faceless suburbs in cities right across America. There are some fantastic IRA real estate investments available in the right place RIGHT NOW.

But if you're looking to get out there and find them yourself then you may be in for a shock. It's not something that is realistic for the individual IRA real estate investor. You need professional help.

Buy in the wrong place and you'll probably get burnt, big time.

But right now there are some excellent opportunities available for securing a great real estate investment, no cash down, at under market value, with tenants supplied, rental guarantees and even a guarantee that you will double your current investment return.

All through a major US public corporation with a reputation for solid real estate investment returns, for both IRA real estate investing and ordinary credit investing in real estate.

Yes you can secure your retirement future through a good IRA real estate investment, or more than one. However it's the time to leave it to those who really know what they're doing in hard times, and you can relax and leave the hard work to someone else.

But which corporation could possibly offer an opportunity like this?

Want to know more about profitable [http://win-winrealestateinvestments.com/ira-real-estate-investing/]IRA Real Estate Investing? Visit Peter's Website Win-Win Real Estate Investments and find out more about no money down real estate investing at http://win-winrealestateinvestments.com/

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3 Things You Must Do to Succeed at Real Estate Investing

3 Things You Must Do to Succeed at Real Estate Investing
By [http://ezinearticles.com/?expert=James_Kobzeff]James Kobzeff

Here are three simple guidelines that must be followed if you plan to succeed at real estate investing. It's not everything, of course, but at the very least, you must be willing to commit to these things if you want to become a successful real estate investor.

Shall we get stared?

Acknowledge the Basics

Real estate investing involves acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows and thereby generating a favorable rate of return on that investment.

More advantageous then stock investments (which usually require more investor equity) real estate investments offer the advantage to leverage a real estate property heavily. In other words, with an investment in real estate, you can use other people's money to magnify your rate of return and control a much larger investment than would be possible otherwise. Moreover, with rental property, you can virtually use other people's money to pay off your loan.

But aside from leverage, real estate investing provides other benefits to investors such as yields from annual after-tax cash flows, equity buildup through appreciation of the asset, and cash flow after tax upon sale. Plus, non-monetary returns such as pride of ownership, the security that you control ownership, and portfolio diversification.

Of course, capital is required, there are risks associated with investing in real estate, and real estate investment property can be management-intensive. Nonetheless, real estate investing is a source of wealth, and that should be enough motivation for us to want to get better at it.

Understand the Elements of Return

Real estate is not purchased, held, or sold on emotion. Real estate investing is not a love affair; it's about a return on investment. As such, prudent real estate investors always consider these four basic elements of return to determine the potential benefits of purchasing, holding on to, or selling an income property investment.

1. Cash Flow - The amount of money that comes in from rents and other income less what goes out for operating expenses and debt service (loan payment) determines a property's cash flow. Furthermore, real estate investing is all about the investment property's cash flow. You're purchasing a rental property's income stream, so be sure that the numbers you rely on later to calculate cash flow are truthful and correct.

2. Appreciation - This is the growth in value of a property over time, or future selling price minus original purchase price. The fundamental truth to understand about appreciation, however, is that real estate investors buy the income stream of investment property. It stands to reason, therefore, that the more income you can sell, the more you can expect your property to be worth. In other words, make a determination about the likelihood of an increase in income and throw it into your decision-making.

3. Loan Amortization - This means a periodic reduction of the loan over time leading to increased equity. Because lenders evaluate rental property based on income stream, when buying multifamily property, present lenders with clear and concise cash flow reports. Properties with income and expenses represented accurately to the lender increase the chances the investor will obtain a favorable financing.

4. Tax Shelter - This signifies a legal way to use real estate investment property to reduce annual or ultimate income taxes. No one-size-fits-all, though, and the prudent real estate investor should check with a tax expert to be sure what the current tax laws are for the investor in any particular year.

Do Your Homework

1. Form the correct attitude. Dispel the thought that investing in rental properties is like buying a home and develop the attitude that real estate investing is business. Look beyond curb appeal, exciting amenities, and desirable floor plans unless they contribute to the income. Focus on the numbers. "Only women are beautiful," an investor once told me. "What are the numbers?"

2. Develop a real estate investment goal with meaningful objectives. Have a plan with stated goals that best frames your investment strategy; it's one of the most important elements of successful investing. What do you want to achieve? By when do you want to achieve it? How much cash are you willing to invest comfortably, and what rate of return are you hoping to generate?

3. Research your market. Understanding as much as possible about the conditions of the real estate market surrounding the rental property you want to purchase is a necessary and prudent approach to real estate investing. Learn about property values, rents, and occupancy rates in your local area. You can turn to a qualified real estate professional or speak with the county tax assessor.

4. Learn the terms and returns and how to compute them. Get familiar with the nuances of real estate investing and learn the terms, formulas, and calculations. There are sites online that provide free information.

5. Consider investing in real estate investment software. Having the ability to create your own rental property analysis gives you more control about how the cash flow numbers are presented and a better understanding about a property's profitability. There are software providers online.

6. Create a relationship with a real estate professional that knows the local real estate market and understands rental property. It won't advance your investment objectives to spend time with an agent unless that person knows about investment property and is adequately prepared to help you correctly procure it. Work with a real estate investment specialist.

There you have it. As concise an insight into real estate investing as I could provide without boring you to death. Just take them to heart with a dash of common sense and you'll do just fine. Here's to your investing success.

About the Author

James Kobzeff is the developer of ProAPOD Real Estate Investment Software Want to start working with rental property today? Discover how to create cash flow, rate of return, and profitability analysis presentations in minutes at =] http://www.proapod.com

Article Source: http://EzineArticles.com/?expert=James_Kobzeff http://EzineArticles.com/?3-Things-You-Must-Do-to-Succeed-at-Real-Estate-Investing&id=1303880

Real Estate Development - When is the Right Time to Get Started in Property Development?

Real Estate Development - When is the Right Time to Get Started in Property Development?
By [http://ezinearticles.com/?expert=Adrian_Zenere]Adrian Zenere

The media is currently full of real estate 'doom and gloom' - real estate repossessions and arrears are up and real estate prices are down ... its almost as if the 'sky is about to fall'! This situation has seen many real estate developers, and property investors generally, leave the market - and for those thinking of starting out in real estate development, these are scary times indeed.

What seems like the worst time to get into real estate development can, in reality, be the best time. Successful real estate developers today realize that they can use time to their advantage - their real estate development projects will typically not be ready for sale or rent for 2 to 4 years from inception. So if they have bought well, they are less likely to be affected by the economic situation at the time of purchasing their real estate development site.

In fact, a weak market is a real estate developer's paradise, because a weak market is a buyer's market, and one of the first steps to any real estate development project is securing a viable real estate development site on the best possible terms.

Although we know that the real estate development business is cyclical, and many parts of the world are in a property downturn, we also know from history that knowledgeable real estate developers are successful in any market - falling, flat or rising.

We're working towards what we believe the economic conditions will be in 12 to 36 months time. Indeed we ourselves are still active in the market - seeking Council permission for a number of real estate development projects. This gives us the opportunity to act quickly and build our approved real estate development projects when the market does become buoyant.

It is our opinion that the following market signals are some of the key factors that will lead to increased future opportunities, especially for real estate developers:

· The pent up demand for housing. In March 2008 leading Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30% to 40% over the next five years because of the built-up shortages of housing.

· The current Federal Government has stated that they will work towards increasing Housing Affordability and have begun to announce incentives including Tax Credits of $6000 per year if the housing is rented at 20% below market rent.

· We believe that an increasing number of people, in the short to medium term, are likely to require the rental accommodation that we intend to build. This is due to either their financial stress (can't afford to purchase a home) and/or demographic trends (including Gen-Ys who are less likely to buy Real Estate).

Even if our 'crystal ball' is incorrect, we know we have the resources to hold real estate development sites during possible further market fluctuations to come, and increasing rents are certainly helping with that!

Our belief is that this is a golden time to act - perhaps a once in a generation opportunity. Maybe it is not the time to sell completed real estate development projects at the moment, but it is certainly a great opportunity to secure the development site and obtain development planning approval. Now this strategy is not for everyone - you must have the necessary resources to hold the development site and especially the knowledge of real estate development to take advantage of these opportunities.

The best approach for anyone contemplating real estate development will depend on his or her own personal and financial circumstances, but the key message here is that you must do something!

There are many strategies that small real estate developers are currently using, if they don't have the resources to complete a real estate development project right now, including to turn their real estate knowledge into cash by locating ideal property development sites, perhaps taking out an option on the site, and on-selling the 'Development Permit Approval' to someone who does have the resources.

Successful real estate developers know that times of opportunity like this only come along once in a while, and they're taking action so they don't miss the boat.

Regardless of your immediate financial situation, this is the perfect time to leverage your real estate development knowledge into current or future income. If you have any doubts about your ability to do this, or you would like an experienced real estate development mentor to guide you, act now to get the knowledge and mentoring that you need. There is no time to waste!

Adrian Zenere is a Registered Architect and Licensed Home Builder along with his wife Amber they have built a multi-million dollar sustainable property portfolio through Real Estate Development. Together they run their own architectural practice http://www.archizen.com.au specializing in Holistic Architecture combining eco sustainable development with feng shui principles and creating harmonious living that is respectful of our environment. Their projects are regularly featured in the Australian Property Investor, Luxury Home Design, Lifestyle Magazine, Home at Yellow and several newspapers.

They are also co-founders of the Real Estate Development Club where they use their real estate development knowledge and experience to help real estate investors become successful real estate developers. To have a closer look at Adrian and Amber's entire Real Estate Development process and download your FREE REAL ESTATE DEVELOPMENT REPORT and other valuable real estate development resources visit: http://www.RealEstateDevelopmentClub.com

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Choosing Real Estate Courses

Choosing Real Estate Courses
By [http://ezinearticles.com/?expert=Ken_Edwards]Ken Edwards

There is no doubt that one of the most important things that you will need to do
in order to become licensed as a real estate agent is take real estate courses.
However, if you are not sure where you should begin looking for the real estate
courses that you will need or if you are unaware of what ones you will have to
take, then you have come to the right place. Here, we will take a much closer
look at some of the main things that you should take into consideration when it
comes to real estate courses.


The first thing that you are probably interested in learning is where you can
take the real estate courses which you
will need to take as a requirement of becoming a real estate agent. Well, one of
the best places to look is through a local real estate school. You can also
often find real estate courses through your local community college. When all
else fails, you can also try looking at online real estate schools or schools
which offer real estate for the real estate courses that you will need.

Of course, while you can take real estate courses online, if you have the
opportunity to take them through an actual real estate school, this is probably
your best option. While taking courses through the internet may be great for
people who do not have the time to attend class, it can also be more difficult
than taking real estate courses in an actual classroom. The most important thing
that you will need to take into consideration when it comes to choosing the real
estate courses which you will need is choosing an accredited school. Otherwise,
the classes that you take will not be considered valid for meeting the
requirement of real estate education pre-real estate licensing.

In order to determine which real estate courses you need, it is important to
first find out what the requirements of your state are. You should check out the
real estate commission in order to find out what specific requirements your
state has on real estate education. Not only may this be a determining factor of
which real estate courses you will need to take, but it also may determine how
many real estate courses you will need to take.

While you may have been told that you do not need to take any real estate
courses in order to become a real estate agent, the truth is that you do. Every
state has a certain requirement for the real estate courses which you are going
to need to have completed before you can take part in the real estate licensing procedure.

As you can see, there are a number of different things that you will want to
take into consideration when it comes to choosing the real estate courses that
you are going to need. Doing research on which real estate courses are required
for you to take by your state, as well as finding real estate courses offered by
an accredited real estate school or community college is the most important
thing that you will need to do.

Ken Edwards is a writer of real estate articles for http://www.bkkcondos.com - Find [http://www.bkkcondos.com/bangkok-apartments/]Bangkok Apartments & [http://www.bkkcondos.com/bangkok-apartments/]Bangkok Condos in and around Bangkok, Thailand.

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Real Estate Investing - The Three Levels of Success

Real Estate Investing - The Three Levels of Success
By [http://ezinearticles.com/?expert=Heather_Seitz]Heather Seitz

If you are a pro in real estate investing, then you have undoubtedly faced frustration, hit some highs and then crashed into some lows! Ultimately, your goal as a real estate investor is most likely to generate immediate cash flow and long term wealth and increased net worth. True financial success is achieved by combining these two elements - cash flow and wealth creation, or net worth. Cash flow is considered as the monetary profit that is earned every month to support your lifestyle. This can also be used to invest in assets that may later appreciate in value.

Three levels of real estate investors are as follows:

Level one Real Estate Investors - In this level, the investors learn the basic tricks of the real estate investment business, and they use it to make real estate investment a profitable venture. They learn this by making their initial deals profitable. Thus, Level One investors ensure that real estate is the path to economic success. They are aware that there is much to learn from this vast field, and they try to understand it. Real estate investors at this stage should spend time learning the business, evaluating the details of the deals, and make sound decisions. Often times, this will involve some level of training or coaching to ensure success. There are two main reasons why investors fail at this level: (1) Fear and (2) Lack of Knowledge. Because of this, education is critical at this level.

Level Two Real Estate Investors - In this level, the real estate investors master the five core real estate business skills and also maintain a real estate portfolio. Second level Investors are those investors who generate a monthly cashflow ranging anywhere from $5000 to $60,000 per month (depending on location, market conditions, etc.), and also add an average of $250,000 to their net worth per year. Some investors have a wrong notion that after reaching the second level they have achieved it all. They do not realize that there is so much to achieve down the investment line, and that the benefits are worth their exertion. The biggest pitfall that investors at this level tend to fall into is that they get “comfortable”. As soon as you are comfortable, you stop stretching and learning. Level II investors that excel are those that are constantly adding new weapons to their arsenal. These investors practice negotiating tactics, refine their marketing strategies and learn advanced strategies like note buying, triple net lease investing, etc.

Level Three Real Estate Investors – Level III real estate investors build a small fortune in such a way that they earn the majority of their income through passive methods. At this level of real estate, investors are generally not working in the day to day grind of real estate. Their not out meeting with sellers night after night, sitting at open houses on Sundays, etc. They have effectively learned to make their money work for them and are using their assets to acquire other assets. For example, instead of rehabbing houses at this stage, level III investors may lend hard money to Level I and Level II investors! Often times, level three real estate investors will branch out into other businesses and create additional streams of income. Often times, their income may be similar to a level II investor, they just simply don’t put in the same time, money and effort. They have mastered advanced techniques are also utilizing leverage.

In order to become a Level III investor (which is what most real estate investors envision when they get started in the business), there are a few basic steps that will help you move through the stages.

But first off… you must realistically evaluate where you are in your business right now. Once you have determined that, you can follow these steps to advance your business.

Level I to Level II: Level One real estate investing is about learning the basics of real estate investing. There are three hurdles you may need to cross to get to Level II.
Take action: Stop “thinking” about real estate and start “doing” real estate. Pick up the phone and call sellers. Drive different neighborhoods and learn the communities. Attend networking events and trainings with other investors.

Find a mentor: It is critical that you find a real estate mentor, tutor, advisor, etc. that can help you succeed in the early stages. This person will not only teach you the mechanics, but will also help answer your questions and move you past the fear.

Invest in your education: You’ll find that the most successful real estate investors never stop investing in their real estate business and their education. Initially, it may be a tough nut to swallow, but long term, it’s essential to your business. There is but one small caveat. You need to invest in CURRENT education. You see, what worked just a few years ago, is not working the same way today. You need the most up to date information as it comes down the pike!Level II to Level III – Once you’ve gotten the basics down and you’ve done a few deals, you’re ready to advance to level II. At this stage, you will begin to master the core skills that are critical to long term success in your real estate investing business. These include:

Find motivated sellers consistently, keeping your pipeline full with dealsMaster the art of negotiationEvaluate deals quickly and take fast actionDiversify. It’s time to start adding lease options, rentals, wholesale flips and retail flips to your profit pipeline. Level III – It’s time to take all of your knowledge, experience, and proven systems, and leverage yourself. It’s at this stage that you’re ready to venture out into additional streams of income and let your business work for you! This is the level at which most people begin to teach other investors, to create systems, and to make money with their information!

To get to the next level in your business, get your FREE offline – delivered in the mail – industry trends newsletter right now (along with $853.00 in free bonuses) at http://www.realestaterant.net

Heather Seitz works with investors, trainers and promoters all over the country and is the cofounder of the Real Estate Training Academy and the Real Estate Rant, the industry’s premier resource for real estate investors. She’ll teach you how to take your business – wherever you’re at – to the next level in the next 90 days. http://www.realestaterant.net

Article Source: http://EzineArticles.com/?expert=Heather_Seitz http://EzineArticles.com/?Real-Estate-Investing---The-Three-Levels-of-Success&id=701193

Commercial Real Estate and Retirement Planning

Commercial Real Estate and Retirement Planning
By [http://ezinearticles.com/?expert=Irving_Diaz]Irving Diaz

We often browse through newspapers, magazines, business journals and
the internet and regardless of how much we try; ignoring the vast array of
retirement planning ads is next to impossible. It seems as though the last
century has given birth to more investment vehicles than any one individual
will ever use in a lifetime. Everything from stocks and bonds to IRA's and
mutual funds are peddled in one form or another. And the number of securities
brokers and financial planners willing to help pave the way for our retirement
success are anything but scarce. What amazes me though is that of the
thousands of retirement planning professionals in the U.S., very few if any
actually recommend real estate to be included in their clients' retirement
portfolios.

Advantages

Let's begin with the advantages of owning what I believe to be the greatest
investment vehicle ever created; Commercial Real Estate. I want to clarify
two important points before proceeding; first, the term commercial real estate
and investment real estate will be used interchangably throughout this article
and second, even though our homes are a potential gold mine in terms of
equity and value, and make up what is more often than not our biggest asset,
it lacks one of the three characteristics that classify it as investment real
estate; Cash Flow (more on this in a moment and assuming that your principal
residence is a Single Family Home). For purposes of this article, I would like
for everyone to create a mindset that even though our home is indeed a very
valuable asset, for retirement purposes, it should be considered icing on the
cake rather than our largest contributor of net worth. The theory being that
should our home ever be sold, a large portion of the proceeds will eventually
have to be reallocated towards the purchase or leasehold of another home.
In other words, we'll still need a roof over our head and therefore the full
receipts of the sale may in many cases not remain fully liquid for retirement
purposes.

With that said, lets analyze the characteristics that make up investment real
estate and more importantly, the investment benefits they provide. There are
four characteristics to consider:

Cash Flow, Tax Shelter, Equity Build-Up, and Value Appreciation.

1.) Cash Flow. As I mentioned earlier, all of the characteristics of investment
real estate are in one form or another inherent in our primary residence
(our home) except for Cash Flow. Assuming that our primary residence is a
Single Family Home with no add-on apartments or studios or mineral rich land,
then for obvious reasons if we are the primary occupants, there is a slim
possibility of receiving cash flow from an additional source such as tenants
residing on the property or an energy company drilling in the back yard.
In investment real estate, Cash Flow refers to the property's periodic receipt
of gross income minus all of its operating expenses. Cash Flow is usually
measured in annual intervals and is classified as either Pre-Tax Cash Flow
or After Tax Cash Flow. The former, Pre-Tax Cash Flow; is the total cash
available after paying for expenses (i.e. management fees, utilities, repairs,
property taxes, insurance, etc.) and mortgage debt (i.e. principal plus interest).
After-Tax Cash Flow; is the total cash remaining after deducting income tax
liabilities from Pre-tax Cash Flow.

2.) Tax Shelter. Inherent in Investment Real Estate is the ability to keep
more of the periodic cash flow from operations through Property Depreciation
and provides a mechanism to build a tax deferred net worth via a 1031 Exchange.
Both of these are mere Tax Shelter examples of how Investment Real Estate can
contribute towards a solid retirement portfolio:

a. Property Depreciation. As a common practice recognized by the
IRS, Property Depreciation is an accounting concept that contributes
towards the deduction of taxable income by recovering the costs of
investment real estate thus improving cash flow. It's important to note
that land does not depreciate; the concept only applies to the value of
the improvements on the land. For example: say we had a multifamily
apartment building with a total assessed value of $500k and of that total
value, 40% would be allocated towards the land and 60% would be
allocated towards the actual building improvement. Based on this
example, only 60% of the value or $300k would be allowed for
depreciation. It's important to note that there are various forms of
depreciation and timelines that apply to each. For reasons of simplicity,
we will not get into the intricacies of each here, however, the important
point to understand is that investment real estate allows for depreciation
which in turn improves cash flow.

b. 1031 Exchange. Section 1031 of the IRS code allows for a seller to
exchange their investment property for another like kind property
without having to pay capital gains taxes on the transaction. The 1031
code in essence, does not exempt the taxes altogether but rather,
defers them. These are specialized transactions which require qualified
intermediaries who are well versed in the 1031 procedure. In the interest
of simplicity, we will not go into an in depth discussion of a 1031 as it
would require a lengthy explanation however, the important point once
again is to understand that investment real estate allows for the growth
of tax deferred net worth until and through retirement. Visit our section
on 1031 Exchanges for more information on this topic.

3.) Equity Build-Up. While investment real estate is sometimes purchased
all cash, more often than not, leverage is the tool of choice. Mortgage Debt
financing makes up the majority of investment real estate financing in the U.S.
A reduction in the mortgage debt occurs periodically, best measured annually
and is covered by a portion of the gross income received from the property's
operation. As the mortgage principal and interest is paid down, the property
begins to build equity; the difference between its accumulating market value
and any outstanding mortgage liabilities. As Equity builds on the property, this
provides an opportunity to re-leverage (or re-finance) and use the newly found
capital to acquire additional investment properties thus expanding the owner's
real estate portfolio.

4.) Value Appreciation. The fourth and probably the most compelling reason
for acquiring investment real estate is the increase in its market value through appreciation.
The economic forces of supply and demand coupled with inflationary trends and property improvements contribute to an everlasting growth in property market value. Real Estate
markets are local vs. regional therefore, an impact in one market may have little or no
effect in another market. This can have either a positive or negative connotation
depending on the type of impact. It's important to point out that historically,
real estate market appreciation has averaged between 3% and 6% growth annually.

Disadvantages

There are two disadvantages inherent in investment real estate; Property
Management and Lack of Liquidity. At first glance they may appear to be
serious impairments but, after closer evaluation, you'll quickly realize that
these two not-so-good attributes are easily remedied.

1.) Property Management. So you're concerned that acquiring commercial
property will require landlord duties. Everything from broken toilets, to loud
music complaints at 3AM gives you the chills, not a problem. My first
suggestion would be to invest in office, retail or industrial property. The toilets
may still need repairing on occasion but the stigma of residential landholding
quickly disappears. Now of course, commercial tenants need TLC too, in fact
they have a business image to upkeep, so they expect the landlord to maintain

a presentable property. If this is still not enough of a remedy to change
your mind about investment real estate, then how about hiring a professional
management firm. Remember earlier in the cash flow section when we cited
the example of the various expenses associated with operating an investment
property. Well in case you missed it, the budget calls for a management fee.
Leave it to the pros! A management company will handle all of your complaints,
maintenance, repairs, and even accounting duties. At the end of the month they
will send you a statement of all income and expenses and a check for the difference,
that's right your cash flow!

2.) Lack of Liquidity. This is my favorite objection. As a real estate broker
I'm always faced with resistance from new investors, especially those who
are securities inclined and tend to argue that in the event they find themselves
in a financial bind, they can easily liquidate their stock portfolio and have cash
on hand within a few days. Here is where I allow for a few seconds of silence
as to allow them a moment of argumentative victory, or so they may think.
I always follow up the silence with this question; Can you ask a bank to lend
you money using your stock portfolio as collateral?. The answer of course is
always No! Stocks are very volatile and no lender in their right mind will accept
a stock portfolio as collateral in exchange for a loan. However, if you are the
proud owner of commercial real estate and found yourself in a financial bind,
and assuming that you have equity in your property, you can approach any
financial institution and borrow funds using your property as collateral.
This loan is tax free until the property is sold or if the loan is repaid then no
taxes will ever be due. Another point I like to make is that if an investor needed
to liquidate their stock portfolio today, then they will have to sell at whatever
the market price is today. Real estate is no different. An investment real estate
owner that needs to sell today can place their property on the market and
accept whatever the market may be willing to pay today. Both securities
and real estate portfolio owners have the option of holding their assets and
selling at more favorable times. The lack of liquidity concept in real estate
has been greatly misconstrued.

After absorbing the concept of commercial real estate as an investment vehicle
for retirement, it should be clear that by comparison to securities products,
investment real estate holds its own. This brings me back to my initial question;
Why aren't there more retirement planning professionals offering investment
real estate as an option for their clients? Perhaps lack of knowledge on the
subject or lack of licensing may be two thoughts that come to mind. Real Estate
is a long term investment vehicle, so the excuse that it does not fit into a long
term retirement plan cannot be valid.

Irving J. Diaz is a Licensed Real Estate Broker and Managing
Director of Irving J. Diaz & Associates, LLC., a commercial real estate investment
firm located in Miami, FL. For questions or comments please email the author at [mailto:ijdiaz@irvingdiaz.com]ijdiaz@irvingdiaz.com or learn more about the company at http://www.irvingdiaz.com

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Let A Real Estate Professional Make Your New Arizona Home Purchase The Best It Can Be

Let A Real Estate Professional Make Your New Arizona Home Purchase The Best It Can Be
By [http://ezinearticles.com/?expert=Jayson_Gibson]Jayson Gibson

When looking for a new family home, there is much to worry about and much to do. There are many ways that Real Estate Professionals can aid you in making your purchase the best it can be.

1. Real Estate Professionals do the leg-work for you:


Real Estate professionals know the Arizona real estate market, the builders, and the various products that each new home builder offers. In addition, they have access to a wealth of useful information about hot specials, grand openings, and exciting new home communities. Real Estate Professionals know what is happening in the real estate world and are a valuable tool for you and your family.

2. A Real Estate Professional Helps You Decide What’s Best for Your Family.


Real Estate Professionals deal with new home buyers on a daily basis; they help you identify all of your family’s needs, and keep the little things from being overlooked. They aid you in discovering homes that fit your family perfectly, and assist in ensuring that your new home purchase is a wise one.

3. Real Estate Professionals help you determine what you can afford.


Real Estate Professionals deal with clients in many different financial situations. They use their experience to evaluate your current financial situation and your financial needs. Real Estate Professionals help you distinguish and add up the many costs associated with purchasing a new home. They estimate costs associated with new homes (water, electricity, monthly mortgage payments, moving costs etc.)

When buying a new home there are several unexpected expenses that arise. Real Estate Professionals prepare you for those unexpected expenses so when things do arise, your family will be financially equipped. Together, you and your Real Estate professional can determine the price range and down payment that is best for your family.

4. Real Estate Professionals find financing that fits your needs now and in the future.


With as many options and terms as there are in the world of home financing, the average new home buyer can walk away confused and unsure about what is best for their family. Real Estate professionals understand these terms, options, and the effects that they can have on your monthly payment. Real Estate professionals ensure that you choose financing that will work for you today and tomorrow.

5. Real Estate Professionals represent you and your family’s best interests.


Real Estate professionals want you to find the home of your dreams at a price you can afford. You are their most valuable tool in gaining future business. They want to exceed your expectations in everything that they do and will professionally represent you in buying your new home. Real Estate professionals communicate with the home builders directly and set everything up according to your schedule, giving you more time to deal with the little things. Your real estate professional knows you, your family, your wants, and your needs, and will make sure that you are professionally represented throughout the buying process.

6. Real Estate Professionals have contacts with tons of service providers and help you to find everything you’ll need before, during, and after you move-in to your new home.

Whether it is new furniture, pest control services, a mover, an interior decorator, or cable service, your Real Estate professional has dealt with these service providers and can recommend the businesses that will treat you right.

7. Real Estate Professionals do the driving - NOT YOU!


Real Estate Professionals can be a priceless tool for your family during your new home purchase. It’s important to make sure that your Real Estate Professional is qualified to represent you. When searching for your family’s Real Estate Professional, it might not be a bad idea to interview a few agents, ask for references, and contact their references. You and your family will be spending a lot of time with your Real Estate Professional and will put a lot of trust in them. Make sure you pick a Professional that fits your family and can meet your needs. Purchasing your new Arizona home is exciting…relax and enjoy it! http://www.NewHomesSection.com

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Real Estate Logos - 7 Important Facts You Should Know

Real Estate Logos - 7 Important Facts You Should Know
By [http://ezinearticles.com/?expert=Macnair_Wilkins]Macnair Wilkins

Here are the seven most important facts that any real estate person should know about their logo design. These points cover the common basic errors that you might have in owning a real estate logo for your company.

Your real estate logo is not your company's brand.

Everyone thinks that their logo is what they are, and they cannot be more mistaken than with this idea. The logo gives shape to what your brand is, but not really say what quality of service you do have. Branding is the whole way your company deals in the business, the way you handle your work in satisfying your clients. This is not to say the your real estate logo design is not essential or is minimally important. It is very serious to get a great real estate logo to maximize the full impact of your company presence.

It pays to translate a character to your real estate logo.

A significant character is essential in an effective real estate logo and this is a crucial aspect in rising above the logos of other real estate companies. All logo designs in real estate has to project a professional logo but also consider putting a luxurious, creative, relaxed or fun appearance in your design. Whatever character you choose must also work together with your market and scope of service.

Niche branding and logo in real estate exists.

If you are focusing on a certain market in real estate, your logo design should reflect that. Whether property investment, vacation properties or residences, you have a vital way of communicating to your target client base with your [http://www.logodesignguru.com/A/Real_Estate_Logos.asp]real estate logo. This increases the chances of business coming. Think how your logo design can work for you now, not what it should be in the future.

Logos in real estate tends to be boring, now you know that, don't be.

Yes, that's the general opinion of real estate logos. Know that you know it, this is a great opportunity to be different so seize it. Do not be lost in the sea of the same old traditional real estate logos. The key here is retaining the presence of professionalism and high quality. A real estate logo with panache can never fail to be remembered.

Now is the best time to get a Web 2.0 real estate logo design.

Real estate clients are looking for hassle-free, professional and easy access services. A smart Realtor probably has a website going on to relate and communicate faster with potential clients who are wisely checking up on the capabilities of their company. This is probably the best time to get a real estate logo that would compliment your website more and be at par with the Web 2.0 appearance and standards of today. This just bring a whole new upscale image to our company

Attach your real estate logo to your services and work as much as possible.

Exposing your real estate logo design in your transactions, meetings and services will serve to make you more memorable in the eyes of potential clients. Try to connect what you do to your logo. This will eliminate the need for you to explain what your abstract icon in the logo means or what your weird company name translates to. This would also help the spread you your real estate company through word of mouth since, you will be remembered.

Your real estate logo must mean something.

You must put value in the meaning of your logo and what it represents. This includes the quality of service and personal attention you give to your clients as well as your company ethics. This is when your corporate brand becomes an asset on its own, appreciated and admired in the field. The real estate logo will be the face and focal point of this value.

All in all, what you do is what your logo will ultimately represent in the end. Your real estate logo will shine depending on how you use it and what it means to your clients.

Get to know more about [http://www.logodesignguru.com/A/Real_Estate_Logos.asp]real estate logos here. http://www.logodesignguru.com/

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"Time" Is A Major Real Estate Wealth Growth Tool, So Use 'IT' And Watch

"Time" Is A Major Real Estate Wealth Growth Tool, So Use 'IT' And WatchBy [http://ezinearticles.com/?expert=Colm_Dillon]Colm Dillon
In this report I use figures from my area of the world ... I know they don't apply all over the world, but they should encourage you to get the figures for yourself.
After all no report is going to make your money grow ... it's the knowledge you gain and "Your Application Of The Knowledge" that makes your financial wealth Grow.
In another report I gave you a concept I borrowed from Phil Ruthven, a truly wonderful speaker on economics, on how he looks at Home Ownership.
Now I want to look at the Tools we have available to help us Grow!real estate wealth,
So folks, if you want Real Estate Development, you must use all the tools available to you to get some. Of all the tools you have, the single most important one is TIME.real estate wealth,
1. Time is your greatest friend. Time to buy good investment property and let it double in value every 8 to 10 years or better.real estate wealth,
2. Federal Government Real Estate Investment Tax Deductions are another tool the Government uses to tell you in Words, Dollars and Cents that they want you to get wealthy so you can look after yourself to your final days. real estate wealth,
3. Correct Financial tools are also vital to your wealth development. See my report of Finance. I will go into some further detail in this section on the use of Evergreen Lines of Credit and how they work.
4. Good Real Estate Management is the next tool. Well-managed and well-maintained real estate investments, that houses good quality tenants is also essential. Trying to do this work yourself, is a mistake. See my report on Property Management. real estate wealth,
In Australia, it has been instilled in our consciousness, that we must all own our own home. And there is nothing wrong with the concept. It's just that we should have been told to rent it out; Don’t live in it.
By buying a house TO LIVE IN, while we are young, we are wasting the wealth creating tools of Time, Double Income, (if married) Property Income and Tax Deductions. No wonder so many people have to play catch up later in life. real estate wealth,
So the first clue to Real Estate Wealth Development is don’t buy a residential property for you and you partner to live in. You buy a house as an investment and you rent elsewhere.
Growth Tool No. 1 – Time
Time is your greatest friend. Real Estate is a long-term investment and by being loyal to it, the real estate will reward you handsomely all through your life. real estate wealth,
You can prove this to yourself, as I did, by getting the figures of average house sale prices, from the Australian Bureau of Statistics for Brisbane, the largest City in Australia.
To save you the trouble I got the figures and I painstakingly went through them in order to validate the old wives tale that, ” real estate doubles every seven years.”
Well, it does better than that, you’ll be pleased to know.
I was able to get the figures from 1973/74 to 1994/95. I think I started there because that was when I arrived in Brisbane on transfer from Melbourne. real estate wealth,
That is a twenty-two years period, during which we had several credit squeezes, a few recessions and a few good times as well.
In 1973/74 an average house price for the whole of Brisbane was $23,234.00. That average includes the best and worst house and suburb.
Seven years later, in 1980/81, it was $43,470.00 an increase of 87%.
However by the next year, the eight-year, it had risen to $56,757.00 giving an increase of 144% from 1973/74. So you see that it more than doubles by the eight year. real estate wealth,
Going on a further seven years from 80/81 to 87/88, the $43,470.00 went up to $83,679.00; a further 92%.
Interestingly, going on one more year to the eight year, it had again increased to $113,917.00 giving an increase of 162% from 1980/81.
A further seven years from 87/88 to 94/95, the price of the average house in Brisbane went up to $163,325.00; a further 95% increase.real estate wealth,
Unfortunately the Bureau amalgamated the Shires of Logan and Caboolture into this statistical base and I could not extract the figure for the eight year.
However on the evidence of the previous 22 years I believe it is safe to assumethe increase would be at least 5% making it an increase of 100%. real estate wealth,
So these figures prove that over a period of 22 years the asset has increased by seven times its original value and all you would have to do is buy it at the beginning.
I hope this gives you some idea of why TIME is so important to growth. And remember that I am talking about average prices, I am not talking about hot inner suburbs that will obviously do much better.
If you REALLY understand these figures; you should ask yourself why you are willing to miss out on buying good real estate by stopping negotiating for the sake a few hundred or a few thousand dollars. I've seen this done many times because of stubborn-ness. Crazy! real estate wealth,
For goodness sake it’s the Real Estate Asset that is in short supply; not money. If you have found real estate that fits your criteria; BUY IT!
The Real Estate Development Coach
Copyright Colm Dillon, October 2003
All Rights Reserved.
Colm Dillonauthor of "Residential Development Made Easy" the only 'How To' Become a Developer eBook, selling in 38 Countries, has developed $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
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Phoenix Arizona Real Estate Schools

Phoenix Arizona Real Estate SchoolsBy [http://ezinearticles.com/?expert=Jennifer_Hershey]Jennifer Hershey
There are many colleges and schools located inPhoenix. Are you searching to head off to school inArizona, or do you want to retire, or perhaps you wantto raise your family in Arizona! When you go toPhoenix Arizona real estate school, you will graduatewith all the knowledge needed to have a successfulreal estate business. Arizona produces moreprofessionals than any other state in America. Phoenix Arizona real estate investments are scatteredthrough out the state and has plenty of opportunity tonew graduates. Areas like Scottsdale can be a greatinvestment to both the buyer and the seller, as thisis a real estate are that is booming right now. Singles and families alike are moving to the Arizonaarea, where jobs are found, and the fun in the goodweather is a great time for all. If you areinterested in going to college in Arizona, or if youwant to live in Arizona, the opportunities are justwaiting for you around every corner!
Phoenix Arizona home for sale real estate is what youfind here on the pages that are included on this site.Information about how to get a mortgage and how tocomplete the process is made easy for you. To make itconvenient for you to move from one area of the world,to the real estate found in Arizona, you can findhomes for sale, that will meet your demanding familyneeds, or you can find that suitable home for yourpets, your hobbies and your tastes. If you are lookingfor a home in Phoenix, you should really start yoursearch online. Here, in the Phoenix home for sale realestate section of these pages, you will not only findhomes that have the exact number of bedrooms that youwant, but also the yard, the driveway, the flowers,the trees, the schools, and where employment is found.There are over one million people living in Phoenix,but there are plenty of homes, and exciting adventuresjust waiting for you.
Phoenix Arizona homes for sale real estate is acombination of many types of homes, such as onebedroom, two bedrooms or even five bedrooms. There arealmost 500,000 homes in Phoenix, and the average ageof the homes found in Phoenix is just thirty yearsold, making some of the most luxurious homesaffordable! Are you interested in a large home? Youwill find that in that 500,000 homes in Phoenix, thereare about 23% that are four bedroom homes, and 49% arethree bedroom homes. Your entire family, or the familyyou are still planning will feel at home, in your newhome in Phoenix. No matter how small or large you areplanning your family to be, you can have it all in thehome of your dreams in Arizona.
Phoenix real estate for sale is going to be difficultto sift through if you are not sure what type of homeyou want to purchase. We do suggest that you make alisting of what you need, expect and want in your newhome. Do you want a deck, a large yard, a sunroom, oryou want to have three bathrooms, four bedrooms, or doyou require a home that is very centrally located towhere you work? Thinking about these items and topicsbefore clicking on the search button is going to helpyou find that home you really want without gettingsidetracked with the many types of Phoenix luxury realestate that is available for you to also choose from.The luxury homes that are available include some ofthe largest kitchens, the largest lots, swimmingpools, and have other perks such as home indoorswimming pools, sauna rooms, attached greenhouses, andmuch more. Making a list of what you expect from yourdream home will allow you to search for that home in aspeedy manner and without having to settle for anyless than what you would expect!
Phoenix residential real estate can be searchedonline, in the pages of this site, where we show you acomplete listing of homes from the starter home, tothe high-end luxury homes that are available. Themarket is constantly changing, so when you come acrossa listing that you just love, that the layout fitsyour every dream, be sure that you contact us aboutstarting your mortgage process right away. Have youchecked your credit lately? If you haven’t checkedyour credit score, and you are ready to get amortgage, order a credit report so you can review yourcredit worthiness before settling on a home. You mayfind your good credit will allow you to purchase aneven higher priced home that you can afford with yournew job while living in Arizona! If you already haveyour career in place, and you are searching for a newhome in the Phoenix area, you are in luck; many homesare available now in areas near schools, near industryand close to the conveniences you want most.
Scottsdale is one of the best places to buy and sellreal estate because it is the area that everyonewishes to live in, no humidity, lots of sunshine andexciting American culture. This is one of the bestresort locations in Phoenix if you are looking for ahigh end, luxury home. Scottsdale is where some of themost expensive houses are and the best real estate,with homes that are not comparable to anywhere else inthe world. When it comes to buying a home, thinkabout living near Scottsdale. Scottsdale is one of themost sought after real estate ventures, because thearea is exciting, fun, and prominent. Buying a homein Scottsdale is one of the best investments a realestate company or client could ever make.
Real Estate in Phoenix Arizona is quite a hot spot. By the end of 2005, the number of houses sold in thearea was 35% more than it was at the end of 2004. Itis still considered a hot spot for real estate. Although the economy has been weak, Phoenix Arizonareal estate for sale has risen, as well as, the buyingrates. New houses are being developed and Phoenix isstill a hot market for newly graduated students fromthe Phoenix Arizona real estate school. It isdefinitely the place where the market still seems tobe wide open and will easily attract buyers or estatesto new companies.
Once a client has located a home from the real estatelistings in the Phoenix, Arizona area, they will wantto talk to a representative. Your education from thePhoenix Arizona real estate school comes in handy, oryour knowledge from any real estate education you havehad. With persuasiveness, you will be able to closethe deal by the end of the working day. Remember realestate in Phoenix Arizona is easy to sell because ofthe wonderful benefits the area offer the client; itdoesn’t take too much persuasive skills to seal thedeal.
You may have to work some charm, but the selling won’tbe hard because the houses or commercial real estatewill practically sell themselves in the Phoenix area.When it comes to Phoenix Arizona commercial realestate listings, you may have to work a bit to get thebuyer who have the ability to complete the purchase,but the area again will practically sell itself. Thearea is not only one of the most beautiful places inArizona, but the security that the area offers can putclients and potential clients at ease.
Are you interested in learning more about thepopulation in Phoenix and in Arizona as a whole? InArizona, you will find that the average income is justunder $47,000 per year. Compared to the 12% of AfricanAmericans living in the US, the rate of AfricanAmericans living in Arizona is about 5%. Thepopulation is about just over 71% white compared to 2%Indian and 2% Asian, and 24% Hispanic. No matter whatyour ethnic background, you will find that the Phoenixcommunities are a combination of Americans livingtogether, growing as a city, and expanding as newhomes are built yearly.
Jennifer Hershey has more than twenty years of experience as a mortgage loan officer. Her site http://www.explainingmortgages.com - a real estate investing resource devoted to making mortgage types and home loan programs easy to understa
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How Do I Know I'm a Real Estate Investor?

real estate investora real estateif real estatein real estateof real estatemost successful realinvesting in reala real understandingquestion youre aboutand professional realHow Do I Know I'm a Real Estate Investor?By [http://ezinearticles.com/?expert=Danny_Welsh]Danny Welsh
I recently had a long chat with one of the most successful real estate investors I've ever met. As I often do, I wanted to get a real understanding of the "Why?" he did real estate and what he wanted to accomplish for himself by reaching financial freedom.
You see, I am firmly convinced of the truth that "If you have a big enough 'Why?' to do something, the 'How?' will reveal itself to you. This gentleman had some good things to say about the concept and completely opened my mind up to even deeper levels of understanding about the terms "success" and "freedom".
Listen, if you're serious about making real estate investing an ultra-successful career for you, you have to go even further than just having investing in real estate be what you do for a living.
It has to become a lifestyle. He threw my questions right back at me and we had some great give-and-take and it was like you could really feel that chemistry that comes into play when entrepreneurs are talking about their passion of investing in real estate.
For him, it came down to asking this question, which fans of Tony Robbins should recognize its like:
"If I had unlimited time, unlimited money, unlimited resources and encouragement, unlimited tools and teaching, unlimited support from friends and family, and unlimited belief in myself...what would I do? Who would I be?"
Most of us would do the things that are passionate about, right?
He was able early on to answer that he wanted to be a real estate investor who helped people solve problems and made money by investing in real estate. What he shared with me, however, is that he didn't self-identify as a "real estate investor" until many, many years later.
Until that moment, years later, when he claimed and began now to internalize the belief that "I am a real estate investor", he was a hobbyist, a dabbler, a dreamer.
He had this experience of self-actualization at a real estate seminar where one of the participants asked the speaker "How do I really know that I'm a real estate investor?"
The speaker responded that "You know you're a true investor when you can't NOT invest!"
He then went on to tell me that during the same seminar someone, obviously someone without a very strong "Why?" or motivation yet to become successful, asked the speaker "How can I find time in my busy schedule to do this business?"
The looked at this questioner with the same patience and understanding that showed that this was the hundredth time the speaker had fielded this question, and said in effect "If you're a real estate investor, you do not find time to invest and do this business...if you're serious about this business you make time to do it."
After my incredibly successful investor friend let that sink into him and he found that he could really grasp hold of those two simple concepts, he realized then and there that he'd always been trying to FIND the time to invest and take the necessary actions to get his business going. For all of his "career" to that point he had been finding and taking that time to do his "business" AFTER other things that his attention and time expenditures PROVED were MORE important to him than becoming successful with real estate.
The difference, after he had let these two concepts sink into him and really started to understand it and, most importantly, APPLY his understanding to his thought patterns and daily routines...
...the difference was that he did not just IGNORE the real-world practical matters that NEED to be a part of someone's life (like for example to the beginning real estate investor, a steady income from a stable source to provide bills' money and put food on the table) but other than that, he ASSURED himself that he would always MAKE time to create the life he wanted that was in answer to his compelling "Why?" to become successful- and he did it by taking solid, CONSISTENT actions and gaining unstoppable momentum.
I think that these 2 concepts- of IDENTITY and claiming that you ARE what you want to be, and CONSISTENCY in finding the time necessary to DO what you ARE- applies to anyone wishing to turn a dream into a reality, whether it is to become a successful real estate investor or whatever, be it a published author, big ticket actress, or even just someone who wants to become the "World's Best Dad".
Just substitute whatever it is that you're passionate about for finding time to do "real estate investing" and knowing how you are really a "real estate investor?" and you're on your way, if real estate investing is not your passion.
I understand for many people it's NOT. Many people want to USE the VEHICLE of real estate to take them to a place where you have the freedom and the luxury of time, and you have been able to achieve the financial security and independence to do what you want when you want.
Now, with me, it's writing. I'm passionate about writing, and will write whether or not I get paid for it. It's not just what I DO, but it's who I AM.
How would you answer my friend's question...if you had everything you ever needed already ACCOMPLISHED by investing in real estate and building a positive and successful lifestyle with plenty of passive income coming in every week?
What would YOU do? Who would you BE?
What's your dream? What's YOUR true passion?
What will you do with the extraordinary wealth you can accumulate in real estate?
Now I want you to write down what you are passionate about. You are passionate about something besides money, right? ;) I certainly hope so! If you aren't, it's time to ask yourself a good hard question and take a long look at yourself and find out why not!
Maybe your answer is like mine, that wealth and income from real estate investing can give me the freedom to write whenever I want, to get paid or not get paid but to have the flexibility for it not to MATTER. Maybe you want to spend more time with your family. Maybe you want to escape the 9 to 5 grind and make sure that you never miss another Little League game. Maybe you want to spend time golfing, fishing, or sailing, or learning the intricacies of Thai cuisine.
Maybe in financial freedom you'd want to travel all over the world (of course, you'd at least LOOK at real estate while you're there right? That's called taking a PAYcation instead of a VACATION and you need to ask your tax professional about THAT little gift from Uncle Sam).
Whatever your "Why?" is take a moment now and write it down! Commit this to paper. It's important!
Now, here's where my friend and I agree that most people stop. This is hard. In fact, it's often a question that if you give it the thought and meditation time that it deserves just might make you cry or knock you flat on your backside. Asking this next question you're about to ask yourself can be downright HUMBLING or even, in some cases, extremely UPSETTING. But, you GOTTA do it!
Now, write down your well-thought answers to this question:
Why aren't you living this life and doing all these things you desire NOW? If you're not close, what would it take for you to be able to live your life of destiny and dreams?
Think this is a silly exercise? Just ask yourself, "Am I getting the results right now that I want out of my life?" If you're not, well...it might be wise to consider some opinions. ;)
Just remember, without a map there is no treasure! Your "Why?" is the map that will keep you on track towards gaining momentum to becoming the IDENTITY of a true entrepreneur and professional real estate investor. And it keeping this in mind will PUSH you into taking all the actions necessary, in a CONSISTENT manner, to achieving everything it is that, until you WRITE IT DOWN, you only SAY that you really want.
Danny Welsh represents HIS Real Estate Network. For Real Estate Professionals and Investors HIS Network provides a success- oriented atmosphere where everyone makes money together through the use of timely information, tools, training, educational material, and network support. Explore HIS Network's books, articles, and free information at [http://www.hisrealestatenetwork.com/good-steward-intro.php]HIS Real Estate Network Be sure to sign up for the "Good Steward Newsletter" with real estate investing tips, resources and Deals!
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Beat the Crowd When Investing in Real Estate

Beat the Crowd When Investing in Real EstateBy [http://ezinearticles.com/?expert=Peter_Dobler]Peter Dobler
We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn’t produce desirable returns the more people are starting with real estate investments.
For most of us the obvious choice of properties are single family homes. Although you can invest in real estate without owning a home, most people follow the experience they made while purchasing their own home. This is familiar ground and the learning curve for doing a real estate deal of this type is pretty slim.
Of course there’s a drawback with this approach. The competition is fierce and there are markets where investors are artificially driving up the cost of the properties while completely discouraging first time home buyers. If this is the case, the burst of the real estate bubble is just a matter of time.
How do you avoid these situations and still successfully invest in real estate? How do you get ahead of the competition and be prepared for bad times in real estate investments as well? The only answer I have is commercial real estate.
Why commercial real estate you might ask? Commercial real estate is a solid investment in good and bad times of the local real estate market. The commercial real estate I’m referring to are multi unit apartment buildings.
Yes you will become a landlord and No you don’t have to do the work by yourself. You are the owner and not the manager of the apartment building. The cost of owning and managing the building is part of your expenses and will be covered by the rent income.
Apartment buildings are considered commercial real estate if there are 5 or more units. To make the numbers work you should consider to either own multiple small apartment buildings or you should opt for bigger buildings. This will keep the expense to income ratio at a positive cash flow. Owning rental properties is all about positive cash flow.
With investing in single family homes it is easy to achieve positive cash flow. Even if your rent income doesn’t cover your expenses 100%, the appreciation of the house will contribute to the positive cash flow. With commercial real estate the rules are different.
While single family homes are appraised by the value of recent sales of similar homes in your neighborhood, commercial real estate doesn’t care about the value appreciation of other buildings. The value of the property is solely based on the rent income. To increase the value of a commercial real estate you need to find a way to increase the rent income. The formula on how this is calculated would be too much for this short article. I listed a few very helpful books where you can find all the details.
What’s another advantage to invest in commercial real estate? Commercial real estate financing is completely different than financing a single family home. While financing a single family home you are at the mercy of lenders who want to make sure that you are in the position to pay for the house with your personal income. Commercial real estate financing is based in the properties ability to produce positive cash flow and to cover the financing cost.
After reading all these information about commercial real estate you want to go out there and dive into the deals. Not so fast. First, you need to learn as much about real estate as possible. In commercial real estate you’re dealing with professionals. If you come across too much as a newbie you will waste these guys’s time and your commercial real estate career ended before it actually started. Second, no commercial real estate lender will lend you any money if you can’t show at least a little bit of real estate investment experience.
What’s the solution to this? Go out there and do one or two single family home deals yourself. It doesn’t matter if you make huge profits to start off with. Most newbie investors are loosing money on their first deal anyway. If you can manage to show positive cash flow with your single family home deals you are ahead of the pack.
My advice, buy a small single family home in a decent neighborhood and rent it immediately. This will keep your out of the pocket expenses at a minimum and you will have rent income to cover for your monthly expenses. Bonus, you gain experience as an investor and as a landlord.
Here’s another observation I made during my real estate investment career. Most people like to analyze, learn, discuss and analyze some more. They never actually got to do a real estate deal. They love to talk about real estate investments, but never did it themselves.
My approach to real estate investment was simple.
- I bought some books about real estate investment.
- I read every single one of them.
- I put together a simple plan on how I want to get started.
- I started looking for properties.
- I bought my first investment property 30 days after I started reading my first book.
- I made positive cash flow with all of my properties so far.
What is my point? You have to go out there and practice what you’ve learned. The only valid credential in the real estate business is practical experience. Having a couple of deals under your belt, you can go out there and start looking at commercial real estate and even impress seasoned investors with your knowledge. Because you made this experience by yourself and you know what you’re talking about.
Book reference for commercial real estate investments:
Gary W. Eldred, PhD: “Make Money with Small Income Properties”
Jack Cummings: “Real Estate Financing and Investment Manual”
You will find these books and many more on my real estate investment website at http://www.suncoastrenttoown.com/author_directory.htm
Sincerely,
Peter Dobler
Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.Learn more about real estate investments at http://www.doblerproperties.com or send a blank email to [mailto:suncoastrenttoown@getresponse.com]mailto:suncoastrenttoown@getresponse.com
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What Kind of Real Estate to Invest In?

What Kind of Real Estate to Invest In?By [http://ezinearticles.com/?expert=Dave_Lindahl]Dave Lindahl
Real estate investing is a huge topic. There are so many choices, so many types of real estate to invest in. Mobile homes, single family homes, apartment buildings, warehouses, office buildings, strip malls...
How do you know what kind to pick? Should you specialize? Is it better to have diversity in your investment portfolio? Or should you stick to one kind of real estate?
Let's say you find a property that you think might be a good deal. How will you know? Can you buy it and be certain that you'll make a profit?
Worst of all, if you've heard of the real estate bubble, you may be a little scared getting into real estate investing. With mortgage lenders going under and banks closing, is real estate investing the right move right now?
Real estate investing is still, hands down, one of the very best methods for real wealth creation, and just about anyone can do it.
With the proper education in real estate investing, you can learn the proper methods, the right kind of real estate to invest in, and the right way to structure your deals.
And there really isn't any need to worry about any real estate bubble. After all, lots of millionaires made their start in down markets. Even in the Great Depression, some people became very, very wealthy. You've heard the expression "buy low, sell high"? Real estate investing works the same way. And a down market means prices will be down. Armed with the right knowledge, you'll know when to get in, and when to get out.
Now, to address the question of what kind of real estate to buy. There is no wrong type of real estate to buy. If you purchase real estate at the right price, in the right way, and either hold on to it or sell it to someone for a higher price, you'll make money. This is a very simple formula.
However, there are three places you could end up using this strategy. Number one, you could end up buying yourself a job. If you buy lots of little pieces of real estate, either mobile homes or single family houses, and you're running around cutting grass, collecting rents, fixing leaking sinks, you're going to be extremely busy. You won't want to have many properties - there won't be enough hours in a day! That's not real estate investing, that's buying yourself a job.
The second place you could end up using our investing basics formula: you could end up financially comfortable, or even well off. These real estate investors do buy low. They do sell high (if they sell at all). And their deals are structured properly, so their properties have positive cash flow. They may even hire someone to do their some of the property maintenance for them. They have a small portfolio of real estate, single family homes, maybe a duplex or two, and maybe they retire a little early when the mortgages are paid off. Not bad.
But the third option, the top option, the best place to be is to be incredibly wealthy. Real estate investing can take you to all three places, and the third option is clearly the best. Here's a short list of what these people are doing.
First of all the really wealthy and successful real estate investors are buying multi-family properties. They understand the concept of unit pricing, like in the grocery store. You buy more units per dollar and you get value. Real estate is also measured in units, or number of living configurations. You can buy one unit for, say, $100,000 (let's leave the financing out of this scenario to keep it really simple), or you can buy 10 units for $100,000. If those ten units are all in one building, you've hit the jackpot. According to unit pricing, you've gotten more value for your dollar.
Another thing the really successful real estate investors do is they buy in the right markets at the right time. If real estate is doing very poorly in one city, guaranteed there's another city that's doing well. An industrial city in the north will have a different sort of economy than a tech-based economy in the west. When one is up, the other may be down. Owning and controlling real estate in different markets at different times can generate some real wealth, fast.
Finally, the really wealthy real estate investors understand how money works. Money is like water. It's healthy and alive when it's moving, like a stream. When it's stagnate, when it's still, when nothings coming in or out, it's dead. Real estate investing that models healthy bodies of water, bodies that move and flow, are the ones that are truly healthy and vibrant and create wealth.
David Lindahl, also known as the "Apartment King" has been successfully investing in single-family homes and apartments for the last 14 years and currently owns over 7,000 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! For two FREE copies of his highly recognized newsletter Real Estate Insights, please go to http://www.davesoffer.com/ezine
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Commercial Real Estate and Retirement Planning

Commercial Real Estate and Retirement PlanningBy [http://ezinearticles.com/?expert=Irving_Diaz]Irving Diaz
We often browse through newspapers, magazines, business journals and the internet and regardless of how much we try; ignoring the vast array of retirement planning ads is next to impossible. It seems as though the last century has given birth to more investment vehicles than any one individual will ever use in a lifetime. Everything from stocks and bonds to IRA's and mutual funds are peddled in one form or another. And the number of securities brokers and financial planners willing to help pave the way for our retirement success are anything but scarce. What amazes me though is that of the thousands of retirement planning professionals in the U.S., very few if any actually recommend real estate to be included in their clients' retirement portfolios.
Advantages
Let's begin with the advantages of owning what I believe to be the greatest investment vehicle ever created; Commercial Real Estate. I want to clarify two important points before proceeding; first, the term commercial real estate and investment real estate will be used interchangably throughout this article and second, even though our homes are a potential gold mine in terms of equity and value, and make up what is more often than not our biggest asset, it lacks one of the three characteristics that classify it as investment real estate; Cash Flow (more on this in a moment and assuming that your principal residence is a Single Family Home). For purposes of this article, I would like for everyone to create a mindset that even though our home is indeed a very valuable asset, for retirement purposes, it should be considered icing on the cake rather than our largest contributor of net worth. The theory being that should our home ever be sold, a large portion of the proceeds will eventually have to be reallocated towards the purchase or leasehold of another home. In other words, we'll still need a roof over our head and therefore the full receipts of the sale may in many cases not remain fully liquid for retirement purposes.
With that said, lets analyze the characteristics that make up investment real estate and more importantly, the investment benefits they provide. There are four characteristics to consider:
Cash Flow, Tax Shelter, Equity Build-Up, and Value Appreciation.
1.) Cash Flow. As I mentioned earlier, all of the characteristics of investment real estate are in one form or another inherent in our primary residence (our home) except for Cash Flow. Assuming that our primary residence is a Single Family Home with no add-on apartments or studios or mineral rich land, then for obvious reasons if we are the primary occupants, there is a slim possibility of receiving cash flow from an additional source such as tenants residing on the property or an energy company drilling in the back yard. In investment real estate, Cash Flow refers to the property's periodic receipt of gross income minus all of its operating expenses. Cash Flow is usually measured in annual intervals and is classified as either Pre-Tax Cash Flowor After Tax Cash Flow. The former, Pre-Tax Cash Flow; is the total cash available after paying for expenses (i.e. management fees, utilities, repairs, property taxes, insurance, etc.) and mortgage debt (i.e. principal plus interest). After-Tax Cash Flow; is the total cash remaining after deducting income tax liabilities from Pre-tax Cash Flow.
2.) Tax Shelter. Inherent in Investment Real Estate is the ability to keep more of the periodic cash flow from operations through Property Depreciation and provides a mechanism to build a tax deferred net worth via a 1031 Exchange. Both of these are mere Tax Shelter examples of how Investment Real Estate can contribute towards a solid retirement portfolio:
a. Property Depreciation. As a common practice recognized by the IRS, Property Depreciation is an accounting concept that contributes towards the deduction of taxable income by recovering the costs of investment real estate thus improving cash flow. It's important to notethat land does not depreciate; the concept only applies to the value of the improvements on the land. For example: say we had a multifamily apartment building with a total assessed value of $500k and of that totalvalue, 40% would be allocated towards the land and 60% would be allocated towards the actual building improvement. Based on this example, only 60% of the value or $300k would be allowed for depreciation. It's important to note that there are various forms of depreciation and timelines that apply to each. For reasons of simplicity, we will not get into the intricacies of each here, however, the important point to understand is that investment real estate allows for depreciation which in turn improves cash flow.
b. 1031 Exchange. Section 1031 of the IRS code allows for a seller to exchange their investment property for another like kind property without having to pay capital gains taxes on the transaction. The 1031 code in essence, does not exempt the taxes altogether but rather, defers them. These are specialized transactions which require qualified intermediaries who are well versed in the 1031 procedure. In the interest of simplicity, we will not go into an in depth discussion of a 1031 as it would require a lengthy explanation however, the important point once again is to understand that investment real estate allows for the growth of tax deferred net worth until and through retirement. Visit our section on 1031 Exchanges for more information on this topic.
3.) Equity Build-Up. While investment real estate is sometimes purchased all cash, more often than not, leverage is the tool of choice. Mortgage Debtfinancing makes up the majority of investment real estate financing in the U.S.A reduction in the mortgage debt occurs periodically, best measured annually and is covered by a portion of the gross income received from the property's operation. As the mortgage principal and interest is paid down, the property begins to build equity; the difference between its accumulating market value and any outstanding mortgage liabilities. As Equity builds on the property, this provides an opportunity to re-leverage (or re-finance) and use the newly found capital to acquire additional investment properties thus expanding the owner's real estate portfolio.
4.) Value Appreciation. The fourth and probably the most compelling reason for acquiring investment real estate is the increase in its market value through appreciation. The economic forces of supply and demand coupled with inflationary trends and property improvements contribute to an everlasting growth in property market value. Real Estate markets are local vs. regional therefore, an impact in one market may have little or no effect in another market. This can have either a positive or negative connotation depending on the type of impact. It's important to point out that historically, real estate market appreciation has averaged between 3% and 6% growth annually.
Disadvantages
There are two disadvantages inherent in investment real estate; Property Management and Lack of Liquidity. At first glance they may appear to be serious impairments but, after closer evaluation, you'll quickly realize that these two not-so-good attributes are easily remedied.
1.) Property Management. So you're concerned that acquiring commercial property will require landlord duties. Everything from broken toilets, to loud music complaints at 3AM gives you the chills, not a problem. My first suggestion would be to invest in office, retail or industrial property. The toilets may still need repairing on occasion but the stigma of residential landholding quickly disappears. Now of course, commercial tenants need TLC too, in fact they have a business image to upkeep, so they expect the landlord to maintain
a presentable property. If this is still not enough of a remedy to change your mind about investment real estate, then how about hiring a professional management firm. Remember earlier in the cash flow section when we cited the example of the various expenses associated with operating an investment property. Well in case you missed it, the budget calls for a management fee. Leave it to the pros! A management company will handle all of your complaints, maintenance, repairs, and even accounting duties. At the end of the month they will send you a statement of all income and expenses and a check for the difference, that's right your cash flow!
2.) Lack of Liquidity. This is my favorite objection. As a real estate broker I'm always faced with resistance from new investors, especially those who are securities inclined and tend to argue that in the event they find themselves in a financial bind, they can easily liquidate their stock portfolio and have cash on hand within a few days. Here is where I allow for a few seconds of silence as to allow them a moment of argumentative victory, or so they may think. I always follow up the silence with this question; Can you ask a bank to lend you money using your stock portfolio as collateral?. The answer of course is always No! Stocks are very volatile and no lender in their right mind will accept a stock portfolio as collateral in exchange for a loan. However, if you are the proud owner of commercial real estate and found yourself in a financial bind, and assuming that you have equity in your property, you can approach any financial institution and borrow funds using your property as collateral. This loan is tax free until the property is sold or if the loan is repaid then no taxes will ever be due. Another point I like to make is that if an investor neededto liquidate their stock portfolio today, then they will have to sell at whatever the market price is today. Real estate is no different. An investment real estate owner that needs to sell today can place their property on the market and accept whatever the market may be willing to pay today. Both securities and real estate portfolio owners have the option of holding their assets and selling at more favorable times. The lack of liquidity concept in real estate has been greatly misconstrued.
After absorbing the concept of commercial real estate as an investment vehiclefor retirement, it should be clear that by comparison to securities products, investment real estate holds its own. This brings me back to my initial question; Why aren't there more retirement planning professionals offering investment real estate as an option for their clients? Perhaps lack of knowledge on thesubject or lack of licensing may be two thoughts that come to mind. Real Estateis a long term investment vehicle, so the excuse that it does not fit into a long term retirement plan cannot be valid.
Irving J. Diaz is a Licensed Real Estate Broker and Managing Director of Irving J. Diaz & Associates, LLC., a commercial real estate investment firm located in Miami, FL. For questions or comments please email the author at [mailto:ijdiaz@irvingdiaz.com]ijdiaz@irvingdiaz.com or learn more about the company at http://www.irvingdiaz.com
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Let A Real Estate Professional Make Your New Arizona Home Purchase The Best It Can Be

Let A Real Estate Professional Make Your New Arizona Home Purchase The Best It Can BeBy [http://ezinearticles.com/?expert=Jayson_Gibson]Jayson Gibson
When looking for a new family home, there is much to worry about and much to do. There are many ways that Real Estate Professionals can aid you in making your purchase the best it can be.
1. Real Estate Professionals do the leg-work for you:
Real Estate professionals know the Arizona real estate market, the builders, and the various products that each new home builder offers. In addition, they have access to a wealth of useful information about hot specials, grand openings, and exciting new home communities. Real Estate Professionals know what is happening in the real estate world and are a valuable tool for you and your family.
2. A Real Estate Professional Helps You Decide What’s Best for Your Family.
Real Estate Professionals deal with new home buyers on a daily basis; they help you identify all of your family’s needs, and keep the little things from being overlooked. They aid you in discovering homes that fit your family perfectly, and assist in ensuring that your new home purchase is a wise one.
3. Real Estate Professionals help you determine what you can afford.
Real Estate Professionals deal with clients in many different financial situations. They use their experience to evaluate your current financial situation and your financial needs. Real Estate Professionals help you distinguish and add up the many costs associated with purchasing a new home. They estimate costs associated with new homes (water, electricity, monthly mortgage payments, moving costs etc.)
When buying a new home there are several unexpected expenses that arise. Real Estate Professionals prepare you for those unexpected expenses so when things do arise, your family will be financially equipped. Together, you and your Real Estate professional can determine the price range and down payment that is best for your family.
4. Real Estate Professionals find financing that fits your needs now and in the future.
With as many options and terms as there are in the world of home financing, the average new home buyer can walk away confused and unsure about what is best for their family. Real Estate professionals understand these terms, options, and the effects that they can have on your monthly payment. Real Estate professionals ensure that you choose financing that will work for you today and tomorrow.
5. Real Estate Professionals represent you and your family’s best interests.
Real Estate professionals want you to find the home of your dreams at a price you can afford. You are their most valuable tool in gaining future business. They want to exceed your expectations in everything that they do and will professionally represent you in buying your new home. Real Estate professionals communicate with the home builders directly and set everything up according to your schedule, giving you more time to deal with the little things. Your real estate professional knows you, your family, your wants, and your needs, and will make sure that you are professionally represented throughout the buying process.
6. Real Estate Professionals have contacts with tons of service providers and help you to find everything you’ll need before, during, and after you move-in to your new home.
Whether it is new furniture, pest control services, a mover, an interior decorator, or cable service, your Real Estate professional has dealt with these service providers and can recommend the businesses that will treat you right.
7. Real Estate Professionals do the driving - NOT YOU!
Real Estate Professionals can be a priceless tool for your family during your new home purchase. It’s important to make sure that your Real Estate Professional is qualified to represent you. When searching for your family’s Real Estate Professional, it might not be a bad idea to interview a few agents, ask for references, and contact their references. You and your family will be spending a lot of time with your Real Estate Professional and will put a lot of trust in them. Make sure you pick a Professional that fits your family and can meet your needs. Purchasing your new Arizona home is exciting…relax and enjoy it! http://www.NewHomesSection.com
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