Trends In Real Estate Investing | World Finance News

Timing may be everything, but is now the right time to invest in real estate, given the steep declines seen in the housing marketing in recent months?  Some real estate investment professionals seem to think so.  In fact, the smart investors are buying, buying, buying properties right now.  Why? 

“First, let’s define what we mean by “investing,” says real estate mentor and author Minh Pham, whose popular real estate seminars pack convention rooms with novice real estate investors eager to learn how to make money with real estate.  “Are you intending to be a knowledgeable, well-educated buyer of under-priced properties and stay in the real estate market for the long term in order to see excellent returns?  Or are you looking for a ‘get-rich-quick’ scheme?  If so, my real estate seminars are not for you.” 

Pham explains that buying a cheap property in the hopes of immediately reselling for a lot more than you paid is speculating, not investing.   And speculating is as risky as buying a lottery ticket.  No credible real estate investment coach will teach you how to speculate, because there is no way to guarantee profits. 

But that doesn’t mean you can’t start seeing profits in a fairly short space of time – you just need to know what you are doing.  

Becoming a successful real estate investor involves getting educated, doing excellent research, and putting together a well-thought-out strategy.   This may seem like homework to some, but for those who have done it the financial rewards are more than making up for the time spent learning.   

“Can you make money in real estate in a down economy?  Absolutely.  Can you do it without knowing what you are doing?  Absolutely not,” says Pham. “Worst case scenario, you could lose thousands of dollars and end up being very disillusioned, as many people are right now as a result of not really understanding what they were doing.  There are rules to any game, and if you don’t take the time the learn them you could lose your money.” 

According to Pham and other real estate investing experts, in order to be successful it’s important to learn how to make money in both ‘up’ and ‘down’ markets. You need survival strategies for when the economy is bad, and know how to win in a competitive market when the economy is booming.   “Don’t fear the competition – embrace it,” advises Pham.  “If you see a lot of investors competing for deals, then know you’re not the only one that sees the potential for profit.  There are more than enough good deals to go around. At any given time there are hundreds of properties for sale in local market niches, enough for every savvy investor to make the profits they’re looking for.  

Even in today’s uncertain climate, novice real-estate investors are making money, especially in smaller properties that are easy to acquire and manage.  Owning property that pays for itself is what it’s all about.  But how do you find those kinds of properties, and how do you recognize them when you do?  “Ah, you’ll have to come to one of my seminars,” grins Pham.   

Minh Pham’s next real estate investing seminar will be held in Alexandria, VA on March 14th, 2009.  He will be giving away his real estate investing handbook, “Turnkey Profits Using Lease Purchase, Subject To’s and Other Creative Real Estate Investing Techniques” to seminar attendees.  To reserve a seat go towww.realestatementoring.eventbrite.com.

Sound Real Estate Investing Advice

Real estate prices are governed by a huge number of factors. Therefore, real estate investing advice is not like a sure shot prescription about how you should invest. Rather, it is a broad set of guidelines that will help form your own thumb-rules. The most important real estate investing advice is that investment in real estate should never be confused with speculation. Here are a few aspects that you might want to consider before you put your money into real estate.

Real estate investment is like any other investment. It is more like investing in Treasury Bonds or Mutual Funds. You get returns on it even when you continue to hold on to your investment. In property/real estate investing, the gain could be two-fold. If the property you hold is in a sought-after neighborhood, it would most likely fetch you a good rent. While you keep getting the rent, the prices could rise and give you the added return.

A typical property estate investor has the financial muscle and staying power. Such an investor does not get carried away by small, short term gains and instead concentrates on the big picture. An annual return of 6 to 8 percent of the invested amount is considered decent. Anything above 10 percent is a big bonus.

In the case of speculation, you enter when the price is low and exit at a higher price. The assumption is that prices will continue to rise, and that is not always the case. In fact, the last decade has seen a big slump of over 70 percent in many of the otherwise booming economies. The best bet in the case of speculation is being able to spot developing neighborhoods, especially residential, and to invest early.

In addition to the property estate investment and speculation discussed above, there is an interesting alternative. The real estate investor buys property that is not in the best of conditions, does it up in line with the current trends and then sells it for a substantially higher price. The unique selling point in this case is that the new buyer does not have to spend time, effort and money in getting it done. In one sense, this is an investment because you will still command a good rent till you get a buyer.

In the case of commercial property estate, the returns are naturally much higher. However, there are two points that need to be considered. Number one, the investment required is huge, depending of course on the size of the property and its location. The other important factor is that movement can be pretty slow. Do not expect businesses to relocate every other year. So, while the income in the form of rent is likely to be fairly high, the prospect of earning money through price appreciation can easily be years away.

In a nutshell, the best real estate investing advice is to look around, study the marketplace, and weigh the two channels of earning money - through rent and through price appreciation.

Join Forces with Our 7 Nationally Recognized Real Estate & Finance Experts to Wisely Navigate the Current Real Estate & Mortgage Markets to Earn Record Profits at RealEstateAdvicePros.com

Beach Real Estate - Tips for Making Money in the Sun

Real estate is a field of activity which many people decide to invest in, because if you know what to do and how to play your cards right, you could really make a lot of money and recover your investment in no time.

Investing in attractive beach properties can help you make an even greater profit, because everyone loves the beach and most people search for great beach residencies where they could enjoy their lives while standing on a beautiful beach, listening to the relaxing and soothing sound of the sea waves.

Having a place where you know you can go to any time you need to relax and unwind is a very nice thought, so by investing in real estate in places that are near the beach could be the greatest idea you've ever had.

California and Hawaii are two of the states where real estate investors have made big bucks by investing in beach properties, because their beaches are fabulous and people were willing (and still are) to pay top dollar for a real estate as near to the beach as possible, and dream of sitting on their lanais listening to the ocean waves crashing onto the beach.

California is also a very popular place for Hollywood productions, for this very reason: because Hollywood producers want to get the sweetest human dream closer to their viewers. California luxury residences and beach houses feature in many top movie productions, because Hollywood knows how to emphasize the American dream best and to make people watch their productions with interest.

That is why investing in beach real estate could be a really good idea for you. Every real estate investor knows that in order to succeed in the business, you need to consider the location thoroughly, because location is everything. And what better location could there be for someone looking for a home?

If you want to make an even greater investment, you could consider rental. If you purchase beach houses or apartment buildings near the beach, you could give them to rent and make a huge and constant profit for many years to come.

After all, not everyone can afford a house near the beach, but everyone wants to go on holiday, so this is a safe income that you can be sure of. However, you need to be careful at one aspect: the ravaging storms that sometimes occur in the beach areas.

Hawaii residents know very well that hurricanes coming from the ocean can come with devastating fury and demolish entire structures, leaving behind them a devastating view. Flooding is another possible problem a real estate investor has to consider, but if you know where to invest you can avoid all that hassle.

99 Real Estate Leads and No Real Estate Deals?

Some say there is an industry standard that says:

“For every 20 real estate leads you call, you’ll get at least 19 No’s and 1 Yes.” Well, imagine contacting 99 home owners who had a home to sell and having nearly all of them say “No” to your business.

In this blog post I’m going to tell you why and how this happened to me so you’ll know what not to do when talking with real estate leads.

A few years back I came to a point in my life where I wanted a real estate deal really bad! I wanted a deal so bad that I pulled out some old newspapers (a few days old) that I had been saving and circled all the real estate leads I wanted to call. My goal was to call 100 home owners and at least get my first deal.  Statistically I guess I should have a goal of getting at least 5 deals, but I would have been satisfied with 1 real estate deal.

So I picked up the phone and started dialing…

Ring Ring Ring!

First call goes straight to voice mail. I leave a message.

Ring Ring Ring!

Second call goes straight to voicemail. I leave a message.

Ring Ring Ring!

Third call goes straight to voice mail. I leave a message.

Ring Ring Ring!

Fourth call goes straight to voice mail. I leave a message. (I’m getting a little annoyed now)

Ring Ring Ring!

Seller Says: “Hello?”

I introduce myself and begin running through my script of what to say…*Click* in mid sentence.

First rejection…It’s cool. I have 95 more real estate leads to call, so it’s not a big deal.

As I began dialing number after number, it was like a pattern of voice mails and rejections. There were some soft promises of, “I’ll think about it and get back to you”, yet not a single firm Yes!

I burned through 99 real estate leads and didn’t get a single deal.  It all happened in one day and by the end of the day I was completely exhausted and didn’t even bother calling the last lead!

I seriously doubt it would have been a deal. Now that I think about it…I know it wouldn’t have been a deal given my state of mind after being completely drained.

What happened that day? Why wasn’t I able to nab a deal?

After analyzing all the conversations and analyzing myself.

Here some of the main problems I noticed:

Reading From a Script & Not Being in Control

Reading from a script is ok, but you don’t wan to sound rehearsed. If you’re going to do it then you at least have to make it sound natural to the person on the other end. Reading from a script can help guide the conversation and get the answers you need to make a decision. However, it’s important to position yourself accordingly when you’re on the phone. How do you sound to the other person on the end? Do you sound like a buyer/investor or do you sound like a salesman?

Many people get frustrated when they get phone calls out of the blue and you have to be able to build that rapport (relationship) from the beginning in order to set the tone for the rest of the call. If you’re on the defense in the conversation, then you’re climbing an uphill battle because you’re answering the majority of the seller’s questions instead of the other way around. Rapport building points are not something you’re likely to find in a script.

These were the problems I had. I didn’t build rapport. I sounded rehearsed and didn’t maintain control of the conversation. I didn’t position myself as a solution.

Not Listening during the conversations

The problem with using a script is that it could prevent you from listening to the seller unless they answer the question you happen to be on. My advice has always been to use a script as a guide or memory jogger because there will be questions that you need to ask and they might not be on your sheet.

A perfect example of not listening was when a motivated seller was telling me about their home repairs and then moved on to telling me about the neighborhood. After she finished discussing the neighborhood, I said, “So does the home need any repairs?” She called me out right on the spot and said, “Weren’t you listening?” I was kind of listening, but that just happened to be the next question on my script. You absolutely must listen when talking to people on the phone or you’ll likely lose out on the deal like I did.

The presence of negative energy

As I dialed number after number I didn’t take any breaks. Maybe to run to the bathroom or grab a quick glass of water. Other than that, I was diving striaght through this list like no tomorrow. As I kept getting voice mails and kept getting rejected, I would get more and more frustrated. If you get frustrated during a process like this, you’re frustration (negative energy) can easily carry over to the next call and it can be heard by the person on the other end. This can be a big turn off and the conversation will get cut fairly quickly. My advice is to take breaks and stay positive. Motivate yourself or talk to someone who can make you feel better. Then continue on with taking action.

Have you ever talked to someone on the phone and you can just hear a negative attitude in their tone? It’s like someone pissed in their cereal. Sometimes I’d get negative energy from some leads as well. Some either assumed I would low ball them because of being an investor or some just didn’t feel like talking. They had the old “Are you going to buy at full price or what?” mentality. Those are the type of real estate leads, I simply don’t deal with. My time is too valuable and if we’re going to do business, then we need to be on the same page.

Contacting unmotivated real estate leads

Let’s face it! A big handful of the leads I was contacting were unmotivated. As I analyzed all the things I was doing wrong, I also noticed that I was talking to people who wanted to sell, but didn’t need to sell. Motivated leads need to sell their home because there is some sort of problem that they desperately need to get rid of. Foreclosures are huge problems right now and many people out there need a solution.

If you talk with people who say they have time to wait and aren’t looking for a quick sale, then they are most likely unmotivated. It’s one thing for a person not to accept a low offer. It’s another thing for them to tell you that they’re not in a hurry before they even hear your offer. I’m not one to make insultingly low offers, however I do need to position myself to make some money. This is a business and if they have a problem with you making money more than you helping them sell their home fast, then they’re not that motivated. Unmotivated sellers can waste your time, so it’s best to end the call quickly and move on.

Understanding that No means No!

As I write this blog post, I had to stop for a few seconds to answer the phone. It just happened to be a telemarketer. How ironic is that? She wanted to give me an estimate on my windows. I told her I’m not interested. She said, “Well have you changed your windows?” I said, “Yes, but I’m not interested in any additional remodeling right now.” She said, “Well we also do estimates on sliding doors and our estimates are good for 1 full year.” I’m not INTERESTED! (My tone raised a bit). She said, “Ok thank you for your time!”

This made me think back to how many times I was told “No” on that dreadful day and how I kept trying to sell my real estate services to the person on the other end. There was one call in particular where a person kept saying that they weren’t interested and I kept trying to push and convince them. If it’s one thing I’ve learned and have been taught over and over again, you never want to try and convince someone to do business with you. It’s either they get it or they don’t. Your time is better spent with people who get it because the majority of your deals will come from people who will do whatever it takes to get rid of their problem. Position yourself as a solution and 9 times out of 10, you’ll get the deal.

Cold Calling versus Direct Response Marketing

The last point I want to make is that cold calling a real estate lead verus having the lead contact you can play a role in getting the deal as well. I’ve always believed that if a lead contacts you, then they are much stronger. Why? Because they saw you as a potential solution and they picked up the phone and dialed your number. They may have even taken the time to visit your website and fill out all the required information you asked them to fill out. If they’re not motivated, then they most likely won’t even do that.

This is exactly why I now concentrate on attracting motivated sellers and buyers. I have no doubt in my mind that cold calling works. In fact, I still do it every now and then. However, when you can pick up the phone and say, “How can I help you?”, you instantly gain control of the conversation because you’re asking the question and you’re letting them know right off the bat that you can be a potential solution.  It would be kind of strange to call someone out of the blue and say “How can I help you?”.

If you’re able to elicit a direct response from a real estate lead, then you’ve achieved the goal of direct response marketing. All you have to do next  is close the deal…if it’s really a deal!

I’m sure there are tons of reasons why I didn’t get a deal that day. However, in this post I wanted to point out the major ones that I knew contributed to that day.

Can you think of more? Have you ever called a bunch of real estate leads in a single day? What was your experience?

Share below by leaving a comment.

To Your Success,

J. Lamar Ferren
New Breed Investor

Investing � Five Factors to Consider Before Investing in Residential Real Estate

During the past decade, many people have jumped into residential real estate investing. This was never so true as during the recent real estate boom. People read all the “get rich quick” schemes that litter the book shelves of libraries and book stores — use other people’s money, use no money of your own, and make millions! A lot of people did make great sums of money during the most recent boom; but now those, who did not get out before the market cooled, are seeing those investments in foreclosure due to their inability to make the mortgage payments.

Just because the real estate market isn’t over the top, as in the past few years, does not mean you no longer can make money in residential real estate. The difference between now (post-boom) and during the market boom is that the “get rich quick” schemes will not work.

Do You Have What It Takes?

Investing in real estate is not for the faint hearted, the non-risk takers. It is for investors who are in it for the long haul, who can easily sit on their investment (if need be) until the market shifts in their favor. It also is for those who truly enjoy this type of investment. They are the ones who are the most successful in real estate investing.

You must be willing to invest time — upfront and before each potential investment. If you do not take the time to research the properties and your target market, you probably will not be very successful. You also must gather knowledge on how to make a real estate deal that works in your favor. That requires educating yourself to understand the jargon and game rules. Today, it takes a careful, methodical approach to residential real estate investing, especially when acquiring your first property.

Besides needing time and money, being a risk taker, and being willing to commit to a long-term investment, if needed, there are five additional factors you must consider each time before you make an investment in residential real estate.

Supply and Demand — Where Is the Current Market?

The economics of supply and demand is what makes the long-term investors successful in residential real estate. They are willing to weather the ups and downs of the real estate market, waiting for an advantageous market to sell their property.

Supply and demand is influenced by many economic factors, which in turn affects the residential real estate market. Well-located residential real estate will endure fluctuations in the market and continue to appreciate in value. Knowing your market means knowing when to buy or not to buy, which deals will work when, and when to sit on an investment or sell it.

Your Creativity

Another factor to consider is your own creativity in managing your investments. Residential real estate is one type of investment that allows for a lot of creativity:

• You may invest for the long term, renting the property to continue making a profit while waiting to sell at a more advantageous time. You can purchase a home to fix up and resell immediately for a profit.

• There are many financing options available for residential real estate, allowing for even more creativity. You also can invest on your own, with a group of partners, with a corporation, or even with a Real Estate Investment Trust (REIT — a mutual fund with real property assets or mortgage securities).

• There is an abundant variety of residential real estate types in which to invest — single-family homes, townhouses, condominiums, and duplexes.

The more creative you are in creating and managing your real estate investments, the more profitable and successful you will be.

Other People’s Money

A third factor is knowing how you can use other people’s money to your advantage without landing in foreclosure, as so many people now are who subscribed to the “get rich quick” schemes during the boom.

You can begin with only a few thousand dollars, using other people’s money to underwrite the remaining mortgage. You must know all the different ways available to finance your investment. This goes back to taking the time to educate yourself, before you begin investing, and creatively making the best use of financing.

Other People’s Time

Whether you are fixing up real estate to sell or renting it, it will take time, effort and management. If you already have a full-time job and a family, you probably cannot do it all yourself, and I doubt you wish to be woke up at 2 a.m. by a renter with a plugged toilet.

Using contractors to fix up the property or experienced property managers to handle your rental real estate makes for less profit in your pocket on your individual investment properties. However, it frees up your time to invest in more properties, making your overall profits much higher.

Your Tax Advantage

Residential real estate investing is quite unique. It offers you tax write-offs not available in other types of investments. There are many deductions available to you — deducting the mortgage interest or refinancing without being taxed are just two examples. There are many benefits to real estate investing that reduce your tax liability and increase your profits.

If you believe residential real estate investing is for you, begin by learning more about it. There are thousands of books and resources on the topic. Stay away from anything that sounds too good to be true. It probably is, especially in today’s real estate market.

Flip and fix: Important Tasks to Accomplish When Rehabbing Homes

Rehabbing, no-doubt, is one of the most popular ways to invest in real estate. With the growing number of television shows that feature this particular real estate investing niche, many investors, particularly beginners, are keen on renovating old and undervalued homes for profit.

Being a rehabber of real estate, however, is not as easy as certain flip and fix shows portray it to be. A real estate investor who rehabs properties for a living doesn't just enter an ugly house and snap his fingers to transform the property into a work of art. He has numerous responsibilities and tasks that should be accomplished to ensure that his project will be a huge success.

Among these tasks is ensuring that the fixer upper home to be rehabbed is capable of attracting a good deal once it has been repaired and renovated. A rehabber has to make sure that he is investing his time and money in the right property as it can help him determine the success rate of his rehab project. This is the reason why those who concentrate on this particular real estate investing niche spend most of their time looking for the perfect handyman special or fixer upper home to rehab.

Another important task to consider when fixing and flipping properties is creating a rehabbing team. We are all aware that giving an old property a make-over is a mentally and physically challenging task. Even if a rehabber has ample experience in doing construction and home improvement projects, it would still be difficult for him to complete a flip and fix on his own. Therefore, to ensure that a home rehab would be finished on time, it would be wise to hire contractors or build a team.

Aside from finding the right property to rehab and building a team, creating good marketing strategies is also one of the essentials of doing a rehab project. Having good marketing pitches enables a real estate investor to easily find an end buyer for the property that he has rehabbed. It can also help a rehabber find motivated home sellers, who can provide him or her with nice fixer upper homes and handyman specials.

By accomplishing these tasks and having a good real estate investing strategy in place, it would be easier for an investor to generate positive cash flow by rehabbing homes.