Evaluating your property investment | Reuters

By iTrust Financial Advisors (www.iTrust.in)

Investing requires discipline - one can’t blindly invest money without knowing what one is getting into. Investing into Real Estate is no different. Here is a checklist that you should use when evaluating your property investment.

1. Desirability of the location: This is the single most important criterion to value real estate.

2. Reputation of the builder and quality of construction: Properties by some developers are worth a lot more than others because of quality. Don’t always go for the lower price because there could be huge execution risk with less reputed builders

3. Payment terms: Time-linked or construction linked payment plan, and cash vs. cheque component. This will affect your cashflow in other aspects of your personal finances.

4. Project approvals and licenses: This might affect your ability to get a home loan if project approvals have not come through yet.

5. Contractual guarantees: For assured return schemes get a written guarantee from the builder and post-dated cheques in your name. Understand the delivery date of your project

6. Demand and supply: Over or under-supply will affect both the capital appreciation potential and the rental yield you might expect.

7. Floor space index and carpet area: Local rules on the built up area and the available square footage (carpet area) might reduce the usable area. Recognize that what you pay for might not be what you get

Tips on the process of Real Estate Investing

When it comes to the process of making a property investment and exiting from it, there are a few things that you must keep in mind.

1. Transaction costs: When you buy or sell property, there are many transaction costs associated with these activities. You might have to pay a brokerage fee to the intermediary. If you have made a gain on the sale, there will also likely be a resulting capital gains tax liability.

You will also face some expenses related to the stamp duty at the time of the transfer and registration costs of the property. All these costs can add a material amount to the purchase or sale price of your investment.

2. Liquidity: Unlike stocks that you can sell readily and convert into money in the hand within a couple of days, buying and selling property takes time. Your ability to convert your investment into cash in hand is quite restricted.

Its not uncommon for deals to take up to one year, and still fall through at the last minute. So if you feel that you can sell your property to pay for your child’s education abroad once he/she gets admission, you might be in for a shock. To have easy access to this money, you might be better off putting it into a financial asset that you can access at a short notice (e.g., fixed deposit, or liquid fund).

3. Cash: Property investments are not always the cleanest when it comes to cash versus cheque component of paying for deals. Unlike mutual funds where KYC norms require that the investment be made in cheque and the PAN card details be shared, real estate investments can have a huge cash component to them. This might not suit everyone.

Copyright 2010 iTrust Financial Advisors Private Limited. All rights reserved.

Make money in real estate without leaving your home One of the best jobs | Best Financial Advice - Financial Planning | IXGW.com

Make money in real estate  business is termed as one of the most risky yet profitable business. As they say, with high risks there are high returns involved. The highest risk involved in the real estate business is in completely trusting an agent and buy the land that he projects you as the best one. If you are one of those who want to make moneyin real estate without leaving your home then there are certain things that you have to keep in mind.

If you are interacting with your client for the first time then you have to make sure that your first impression should be a perfect one. Depending on your first impression, a client may think about further interactions with you. Make sure that you have a proper dash of confidence and attitude while selling real estate to him. Real estate is the only one field where an individual does not look for a product rather looks to buy his dream. Investing on a real estate is not an easy or impulsive decision. Rather it is a strategically planned investment. Therefore, every person who comes to you does his homework properly like having a rough idea about the current price, market value of that particular land which he is planning to buy etc.

It is a common practice to hire an agent while buying or selling a real estate. It is believed that an agent helps in speeding up the process of buying or selling of thereal estate. If you are one of those who want to make money in real estate without leaving your home then you can make decent amount in this business as the profit share in this business is pretty high. Therefore, if you are able to convince your client you have every chance of earning loads and loads of money.

Depending on the place and its surroundings, the price of the real estate varies. Therefore, making a correct estimate of a particular piece of land, house or an office is very important. You can apply various tricks while selling a real estate property. Whether you are selling an upland area to a radio station or a sea -view one to a restaurant it depends on your creativity and skill.

To make money in real estate without leaving your home depends hugely on creativity. Selling a product and service is comparatively an easy task as you can provide them with evidence. On the hand, selling a real estate is a tough job because you have to convince them about investing a huge sum in buying one’s own dream. Therefore, it depends on your convincing skills to make him believe that what you are offering is the something that he has been looking for since a long time. Your creativity, skill and talent in selling a piece of land to either build a house or office are the only way to make your business grow.

People find investing in real estate interesting due to the fact that it provides high level of liquidity. If a person plans to sell off his piece of land there is every possibility that he may earn more as there is every possible chance of rise in the level of land price from the time he has bought. With the increase in population, buying a piece of land or real estate has become a pricey affair. Getting a piece of land to build a house is not an easy job. Only a real estate agent can help in getting you a property that you have always dreamt of.

Making Real Estate Money-No Money Down

Why You MUST Learn to Buy with No Money Down by David Finkel

It surprises many beginning real estate investors when I recommend  they get started investing without using their own money. They  find it hard to believe that sometimes having money can be  detrimental to learning to be the best real estate investor you can  be. It's just that I've seen money used as a crutch to make marginal  deals go through. I know I've been guilty of getting lazy and  throwing money into a deal where a little more imagination and  prudent negotiation would have served me better. With an open  mind and the right education, no money can be a force to push  you to be a faster, more creative, and more skilled investor. You'd be surprised how fast you can pour your liquid cash reserves  into real estate. I've watched traditional investors pour over  $1 million into several deals in a matter of months, then have  to wait until those properties sold before they could free up  enough of their money to go out and buy more properties. You'll never regret learning to buy with no money. It will make  you a much more savvy investor for those times you do decide  to use your own money or conventional financing. Money is never the issue when buying a property Many investors think that money (or lack of money) is what stops them from closing a deal. This MYTH is one of the most  limiting things that holds some investors back. Understand that money is NEVER an issue—IF the deal is right. Say the following words to yourself over and over: "If the deal is right, I will find the money!" If there is a deal there you can and will find the funding. The key is that the deal MUST be right. That means for a cash deal  (usually the kind where investors think they haven't got the  cash to do the deal) that you need the right price. This means a price at MOST 70% of the conservative "as is" value  LESS any needed repairs. This means you have to go in at 29.95% to leave yourself room to negotiate if you need to. This kills many  deals. That's okay. The ones you want will work out. And you will find a way to fund them. How do I get the money to fund the deals? Okay, so you've got yourself a signed contract on a great cash deal.  Now you need to find the funding. Again, the key is that the deal is  conservatively very profitable and will make you money even if you  made a few mistakes. Here are several sources you can use to make that deal a go: Use the seller's existing financing for part of the purchase price. Buying "subject to" you only have to fund the money for the  seller's equity! Get a cash buyer at 90% of value and do a simultaneous close  or flip your deal to the buyer for a cash assignment fee Sell your contract to another investor, again for a cash assign- ment fee. Borrow the money from a private party lender at an interest rate  3% to 5% higher than a bank CD and secured by a first mortgage Borrow the money from a hard money lender Tap into a home equity or other line of credit Refinance another property to get your down payment and borrow  the balance from a lender Bring in money partners to fund the deal. (They get depreciation and you control deal. They secure themselves with a first mortgage for the amount they have in, or if they finance it, they can lock in a second mortgage to protect themselves. You agree they get their entire principal back PLUS 15% before you split any profits from the resale of the property. You split profit 25% to 50% to them, the rest you.) I think you get the idea here… The key is that if the deal is right, you WILL find the money. Never lose sight of that. The only two reasons why this wouldn't be the case are fear and ignorance. About the author... David Finkel is an ex-Olympic level athlete turned real estate millionaire and one of the leading investing experts in the nation. He is a Wall Street Journal and Business Week best-selling author of over 40 business and investing books and courses, including the wildly successful, Real Estate Fast-Track and The Maui Millionaires. His website,  www.MauiMillionaires.com, is a popular site for investors and entrepreneurs on the web and has dozens of free wealth tools and ebooks.

Making Real Estate Money-Land Investments

Mаkе Money Fаѕt – Wіtһ Tһіѕ Investment & Even Better Iѕ…

It’s easy tο understand bу anyone аחԁ mаkіחɡ a success οf mаkіחɡ money fаѕt іח tһіѕ investment іѕ common sense.

Donald trump һаѕ mаԁе billions ѕο ԁіԁ Howard Hughes аחԁ even comedian Bob Hope amassed a fortune іח іt.

Sο wһаt іѕ іt?

Tһіѕ investment mау surprise уου Itѕ land аחԁ іt offers tһе following advantages:

1. It’s cheap. Far cheaper tһаח real estate fοr example.

2. Iח сеrtаіח locations investors аrе mаkіחɡ triple digit gains wіtһ ƖіttƖе downside volatility – Far less tһаח іח mutual funds.

More οf tһе locations уου саח mаkе triple digit gains later

3. It’s аח easy tο understand investment bу anyone. Land tһаt іѕ snapped up fοr development increases іח value pure аחԁ simple.

4. It’s easy tο bυу аחԁ sell аחԁ far less complicated tһаח property.

5. Yου саח easily ԁο іt yourself іf חοt tһеrе аrе specialist realtors tο һеƖр уου wіtһ low minimum investments

Sο іf уου fancy triple digit gains annually wіtһ low risk read οח аחԁ find out һοw.

Sο wһеrе ԁο I bυу?

Land investment offers tһе best potential fοr growth іח emerging booming economies abroad.

Aח economy tһаt fits tһіѕ criteria іѕ Costa Rica аחԁ record numbers οf Americans аrе buying here.

It’s јυѕt a three hour flight аחԁ property prices аrе up tο 70% less tһаח іח tһе USA аחԁ іt’s οחƖу a three hour direct flight.

Tһіѕ property needs tο bе built οח land аחԁ mοѕt people want ocean view. Buying ocean view property іѕ therefore a ɡrеаt investment Bυt tһаt’s חοt аƖƖ!

Iח Costa Rica tһе economy іѕ booming, іtѕ stable, tһе government mаkеѕ іt easy tο bυу аחԁ іt іѕ very tax advantageous tο invest.

Tһе best locations аrе οח tһе central pacific coast near tһе town οf Jaco wһісһ аrе booming expanding аחԁ tһіѕ allows investors tο bυу land іח аחԁ around developing infrastructure аחԁ mаkе bіɡ gains.

Tһіחk аbουt іt

Investors іח land һаνе bееח mаkіחɡ 30 100% annual gains іח Costa Rica fοr years аחԁ tһе trend looks set tο continue аחԁ best οf аƖƖ tһе entry prices аrе cheap аחԁ downside risk іѕ low.

Instead οf sticking wіtһ under performing mutual funds look аt tһіѕ alternative investment аѕ a way tο mаkе money fаѕt аחԁ уου mау bе glad уου ԁіԁ.

WEALTH BUILDING REPORT

Fοr a FREE report οח һοw tο build wealth іח land аחԁ property visit ουr website fοr a һυɡе resource οf articles, features аחԁ downloads аחԁ аt http://www.net-planet.org/index.html