Alternative Real Estate Investments - FortuneBuilders | Real Estate Investing

Alternative Real Estate Investments - FortuneBuilders
Getting in the Game | 5 Keys to Real Estate Investing - Patrick Sullivan
Future of Collaboration » Blog Archive » True Estate Investing
HowStuffWorks "How REITs Work"

Alternative Real Estate Investments - FortuneBuilders

Posted: 07 May 2014 02:00 PM PDT

One of the things that make investing in real estate so great is that there are many ways to be successful. There are investors who focus solely on multifamily properties and apartment buildings while others target single families acquired through tax lien sales. Whatever niche you are comfortable with can work for you in the right area and with the right mindset. One of the more increasingly popular niches deals with mobile home and condominium investing. There are investors who will shy away from these types of properties. However, those who focus solely on them have shown they can be a very viable investing option. It literally pays to look into alternative real estate investment strategies.

The biggest knock on these properties is the small amount of margins due to lower sales. While it is true that most mobile homes and even condos are typically priced less than single family properties, there is still money to be made. The key, like any other real estate investment, is finding the right property with the right demand. If you have never looked at this niche you may not realize that the market is bigger than you think. Not every first time home buyer can afford the down payment or even monthly payment for a single family property. Since many of these properties fall under $100,000, they cater to that market and can be quite popular in certain areas.

While the end sales prices may be relatively low, so is the purchase price to acquire them. This can be the ideal investment for someone just starting out on a limited budget. They probably won't retire with the profits they make, but they can learn the ropes and develop a portfolio. Since not every investor looks at these properties, there is usually less competition and more of a chance that their offers will get accepted. Closing five smaller deals a year may be better than just waiting for one big one to fall on your lap.

Like any other property, there are distressed sales and opportunity to buy at a discount. The major difference is that condos and mobile homes typically have an association they are affiliated with. This could cause some issue at closing in regards to the number of owner occupied units and association insurance liability. The other major knock is that since many units are close proximity, one low sale has an impact on every future one. Of course there could be extenuating circumstances surrounding one specific sale, but if an owner wants to take less to sell it could take a few higher sales to offset that.

Instead of looking at condos and mobile homes and thinking how little you would make with them, you could think about little competition there is and how you can corner the market. Like everything else in real estate and every new property that comes your way you should do your due diligence and see if it is right for you. Before you quickly dismiss condos, mobile homes and every other alternative property spend the time and do your homework. You just might find that this is a niche you enjoy and can make money on.

Getting in the Game | 5 Keys to Real Estate Investing - Patrick Sullivan

Posted: 07 May 2014 06:45 AM PDT

Getting in the Game | 5 Keys to Investing in Real Estate

Long before there were landlords as we know them today, there were simply lords who owned enormous plots of land. Peasants worked the property and were dependent on the owners for their safety. In feudal times, real estate had almost nothing to do with investing and just about everything to do with birthrights and patronage.

Get in the Real Estate Investing Game

Real estate is far more accessible today, and I don't go too many days without a friend, acquaintance, or client asking: How can I get involved in real estate investment?

And I understand why.

People are interested in real estate investing in part because over a long period, real estate is one of the most stable investments that you can make. Everyone needs a place to call home, whether they're going to own it or lease it. Because of that intrinsic value, real estate often functions as a hedge against inflation while at the same time playing a potential role as a generator of wealth.

Case-Shiller Home Value Index Chart

We all know someone who has made a killing on a home they flipped or on a rental property they held. And because we all have some understanding of what separates quality property from something of lesser quality, we become convinced that we, too, could make a decision that brings double digit returns.

This belief is exacerbated by the flood of real estate "reality" shows that depict successful investors as those who shoot from the hip, act on that hunch, and make a quick bundle. Even though it makes for good TV, it is far from the reality of how real estate investing actual works.

"Reality" TV makes it look easy

My experience has been that if you find yourself a good real estate investor, one with a track record that stretches decades and not just the couple years of a crest, and you'll find a person who has a solid plan and executes it. I have seen it work from small decrepit single-family homes to multi-unit residential buildings in the finest corners of the city.

Time and again, I find these investors share some critical practices.

5 Keys to Successful Real Estate Investing:

1) Establish a clear objective— Successful investors have formed an idea of what kind of property they want, what they plan to do with it, and are focused on meeting that goal.

2) Research, Research, Research— You've probably heard something similar, but with location instead of research. Understanding location is really a product of research in action. The best investor has someone in the trenches every day, eyes open, ears to the ground, sopping up all the information available. Knowing how to profit from that research data is where experts shine.

3) Understand the Now and the Future— No one can predict the future. But simply assuming future demand will mirror the past can lead to disaster. It's a lot easier to anticipate changes in the market's direction when you've been looking forward the whole time.

4) Set a realistic budget— This sounds so obvious, but too often the novice investor blows it, whether it's the purchase price, the cost of renovation, or estimating the rent roll. Spending the right amount of money, the right way, is critical. Assume the worst and budget accordingly.

5) Partner with experts— There are too many moving parts to real estate investment to master them all. Know who's the best lawyer, the best engineer, the best plumber for the work you need to do. Everyone has a buddy, but connect with the finest and know that your investment will be in safe hands.

Don't let anyone tell you real estate investing is easy to do. But it is within your reach, as long as you partner with the right people and you're willing to put the necessary work in.

Check out these listings to help get you started:

Future of Collaboration » Blog Archive » True Estate Investing

Posted: 09 May 2014 05:00 PM PDT

Real estate investing is among the most attractive methods for making good money (that is in case you do-it right). Moreover, real estate investing is also a lot of fun. A lot of people practice real-estate investing as their core profession and, in reality, make a lot of money this way.

Real estate investing is really an art and, like all art, it will take time to learn the art of real estate investing. The key, obviously, is to get at a lesser price and sell at higher price and create a profit despite paying all the costs associated with both (buy/sell) orders. Generally speaking, people are of the view that real estate investing is sensible only if the costs are rising. However, real estate investing for profits is possible just about any time (and when I just said, real estate investing can be an art). To check up additional info, you are able to take a gaze at: Vicente Sharpe | Activity | Autism Community.

Here is a listing of tips that can make property investing profitable for you:

1) Try to find divorce settlements, public auctions and foreclosures (bank/FHA/VA ): Since quick settlement may be the preference here (and not price), you could get yourself a house at a price that's much lower than the current market rate. You can then make arrangements to sell it at the market rate over a brief period of time. But, make certain that the home is worth the price you're spending.

2) Trying to find old listings: The old entries that are still unsold may possibly provide you with great real-estate investing opportunities. Just acquire a vintage newspaper and contact the dealers. They could have given up hope of attempting to sell that property whatsoever and using a little bit of negotiation you will get the property for a genuine good deal.

3) The hidden treasure: An extremely old (and dirty) looking house may possibly scare off customers. But this could be your opportunity for real estate investing that can yield great profits. Therefore, investigate such properties and check if paying a little on them can make them shine. You can create a large profit in a short time and get these at really low rates.

4) Team up with attorneys: There are a number of attorneys who handle property revenue on behalf of dealers or in special situations (like the death of the property owner). They may often be seeking to dispose off the property rather quickly and therefore in a low-price. I discovered motley fool by searching newspapers. Be the first one to get such real-estate investing opportunities and take pleasure in the profits.

5) Keep tab to the magazine announcements: Property provide offs as a result of deaths, divorce negotiations, immediate cash needs and other reason are often introduced in local papers. Keep an eye on such real estate investing avenues.. Visiting Forums | Holzwurm-page, Holz mit Know How probably provides suggestions you could tell your pastor.

HowStuffWorks "How REITs Work"

Posted: 20 Mar 2014 05:48 PM PDT

Investing in income-generating real estate can be a great way to increase your net worth. But for many people, investing in real estate, particularly commercial real estate, is simply out of reach financially. But what if you could pool your resources with other small investors and invest in large-scale commercial real estate as a group? REITs (pronounced like "treats") allow you to do just that.

REIT stands for real estate investment trust and is sometimes called "real estate stock." Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Anyone can buy shares in a publicly traded REIT. They offer the benefits of real estate ownership without the headaches or expense of being a landlord.

Investing in some types of REITs also provides the important advantages of liquidity and diversity. Unlike actual real estate property, these shares can be quickly and easily sold. And because you're investing in a portfolio of properties rather than a single building, you face less financial risk.

REITs came about in 1960, when Congress decided that smaller investors should also be able to invest in large-scale, income-producing real estate. It determined that the best way to do this was the follow the model of investing in other industries -- the purchase of equity.

A company must distribute at least 90 percent of its taxable income to its shareholders each year to qualify as a REIT. Most REITs pay out 100 percent of their taxable income. In order to maintain its status as a pass-through entity, a REIT deducts these dividends from its corporate taxable income. A pass-through entity does not have to pay corporate federal or state income tax -- it passes the responsibility of paying these taxes onto its shareholders. REITs cannot pass tax losses through to investors, however.

From the 1880s to the 1930s, a similar provision was in place that allowed investors to avoid double taxation -- paying taxes on both the corporate and individual level -- because trusts were not taxed at the corporate level if income was distributed to beneficiaries. This was reversed in the 1930s, when passive investments were taxed at both the corporate level and as part of individual income tax. REIT proponents were unable to persuade legislation to overturn this decision for 30 years. Because of the high demand for real estate funds, President Eisenhower signed the 1960 real estate investment trust tax provision qualifying REITs as pass-through entities.

A corporation must meet several other requirements to qualify as a REIT and gain pass-through entity status. They must:

Be structured as corporation, business trust, or similar association
Be managed by a board of directors or trustees
Offer fully transferable shares
Have at least 100 shareholders
Pay dividends of at least 90 percent of the REIT's taxable income
Have no more than 50 percent of its shares held by five or fewer individuals during the last half of each taxable year
Hold at least 75 percent of total investment assets in real estate
Have no more than 20 percent of its assets consist of stocks in taxable REIT subsidiaries
Derive at least 75 percent of gross income from rents or mortgage interest

At least 95 percent of a REIT's gross income must come from financial investments (in other words, it must pass the 95-percent income test). These include include rents, dividends, interest and capital gains. In addition, at least 75 percent of its income must come from certain real estate sources (the 75-percent income test), including rents from real property, gains from the sale or other disposition of real property, and income and gain derived from foreclosure of property.

We'll look at the different types of REITs next.

Real Estate Investing

Saturday, 10 May 2014