by: Steve Gillman
Selling real estate rentals isn't like selling houses. You can paint a house, and get a little more because it looks nice. Rental properties, especially larger ones, are different, because they're bought by investors, who look at income more than new paint. Raise the income, and you increase value to investors.
Time to learn about capitalization rates. If investors in your area expect a capitalization rate of .08 it means they want a net return (before loan payments and taxes) of 8% on the purchase price. So if your three-plex generates $12,000 net income annually, they'll value it around $150,000 ($12,000 divided by .08). If you can make it generate $16,000, you make it worth $200,000.
More Income From Real Estate Rentals
Raising rents is the obvious way to boost income, if you can justify it. See what similar units are renting for. If your units are $60 below the going rate, you can raise the rents and not lose your renters. Increasing the rent $60 for three apartments means $2160 more net income annually. With a .08 cap rate, you just added $27,000 to the value of your property.
There are other ways to raise rents. Maybe your tenants will agree to $30 more per month if you have a carport built. That's $1080 more net income annually, meaning roughly $13,500 more value added to your property. ($30 x 3 units x 12 months = $1080 divided by a .08 cap rate = $13,500) If you can build that carport for $4,000, that's a good return on investment right? What else do they want?
Higher rent isn't the only way to get more income. Storage sheds can be rented to tenants or you could put in a coin-operated washer and dryer. With a larger income property, you could install pop machines.
Reduce Expenses Of Real Estate Rentals
Could you add insulation to reduce the heating costs? If you're paying $80/month for lawn care, will one of the tenants do it for $40? Could you buy cheaper insurance? Any way you can reduce expenses raises net income (unless it scares away tenants). A new $4,000 furnace that saves $800/year on heating costs means you just turned $4,000 into a $10,000 higher sales price.
This isn't an exact science, and of course appearance and other factors matter. Increasing that net, though, is the surest way to get more for your rental properties. Make the changes at least several months before you try to sell the property (a year before, if possible). Also, learn how do the math - it really does matter with real estate rentals.
About The Author
Steve Gillman has invested in real estate for years. To learn more, go get your free real estate investing course at: http://www.MakeThatOffer.com
Wednesday, June 20, 2007
Creative Real Estate Investment
by: Steve Gillman
An example of creative real estate investment? When I was young, I had a job that paid $3.40 an hour, and I somehow saved enough to buy my first piece of real estate - 2 acres near where I lived. It cost $3,500.
I spent a few hours removing brush, outlined a driveway with logs, and hand painted a sign. Two weeks after I bought it I sold the land for $4,750, with $250 down, $100 per month, at 11% interest. With the capital gain, my annual return on investment was over 20%. This was my first real estate investment.
Creative Real Estate Investment - The Key
I bought the land cheap, because the seller needed fast cash. I solved his problem. I sold the land higher than the market value because the buyer needed easy terms. Second problem solved. Solving problems is the key to creative real estate investment.
Cell phone companies, radio stations, police departments and others need hill tops for their towers. The problem is that they can't tie up their capital buying them. One creative investor found a way to solve their problem.
He got six month options on hill top properties for a few hundred dollars. Then, when he found those who needed them, he would get a long term lease signed. They built the tower themselves, of course. With a lease in hand, it was easy to get financing to exercise the option and buy the properties. He invested a few hundred dollars to create years of income.
Trees are needed by lumber mills. A friend of mine solved this problem by letting a company cut half the trees on his small property. They paid $4,500, and I couldn't see the difference when they were done. The property was worth as much the day after the cut as the day before. My friend lived there, but a creative investor could buy property like his, sell half the trees, maybe clay or gravel too, and then re-sell the land.
To solve problems, you have to figure out what they are. Do people need easy terms? Cleared lots? Lumber? Better access to a piece of property? Smaller pieces of land? Condos instead of apartments? The list could go on. Just remember that solving problems is the key to creative real estate investment.
About The Author
Steve Gillman has invested in real estate for years. To learn more, go get your free real estate investing course at: http://www.MakeThatOffer.com
An example of creative real estate investment? When I was young, I had a job that paid $3.40 an hour, and I somehow saved enough to buy my first piece of real estate - 2 acres near where I lived. It cost $3,500.
I spent a few hours removing brush, outlined a driveway with logs, and hand painted a sign. Two weeks after I bought it I sold the land for $4,750, with $250 down, $100 per month, at 11% interest. With the capital gain, my annual return on investment was over 20%. This was my first real estate investment.
Creative Real Estate Investment - The Key
I bought the land cheap, because the seller needed fast cash. I solved his problem. I sold the land higher than the market value because the buyer needed easy terms. Second problem solved. Solving problems is the key to creative real estate investment.
Cell phone companies, radio stations, police departments and others need hill tops for their towers. The problem is that they can't tie up their capital buying them. One creative investor found a way to solve their problem.
He got six month options on hill top properties for a few hundred dollars. Then, when he found those who needed them, he would get a long term lease signed. They built the tower themselves, of course. With a lease in hand, it was easy to get financing to exercise the option and buy the properties. He invested a few hundred dollars to create years of income.
Trees are needed by lumber mills. A friend of mine solved this problem by letting a company cut half the trees on his small property. They paid $4,500, and I couldn't see the difference when they were done. The property was worth as much the day after the cut as the day before. My friend lived there, but a creative investor could buy property like his, sell half the trees, maybe clay or gravel too, and then re-sell the land.
To solve problems, you have to figure out what they are. Do people need easy terms? Cleared lots? Lumber? Better access to a piece of property? Smaller pieces of land? Condos instead of apartments? The list could go on. Just remember that solving problems is the key to creative real estate investment.
About The Author
Steve Gillman has invested in real estate for years. To learn more, go get your free real estate investing course at: http://www.MakeThatOffer.com
Real Estate Investing LIES Unveiled
by: Steve Majors
Let's get REAL about something - and quelch the LIES you have been told about Real Estate Investing…
What I am going to reveal to you are some basic truths about Real Estate investing - truths that may totally affect the Real Estate investments you have now - and certainly I intend to modify the way you do Real Estate investing in the future.
Let's get right to it - and into the heart of the real estate investing issue…
You have been programmed all your life to become what you are today - from school, friends, relatives and, yes, your parents.
Recent studies show that you are who you are now, more from what you learned prior to age 8 than in anything else you have learned since.
Now, that may surprise you, but it is true that what you learned at the earliest ages affects the way you make Real Estate investments today, and the type of Real Estate investing success you will have going forward!
Yes, that's a bit shocking…
You see, if you grew up in an environment where you heard things like “We can't afford it”, “Be sure you have saved enough and have the cash to buy it (i.e., never use credit)” or numerous other phrases that you now hear yourself saying (you know what I'm talking about - those times you catch yourself "becoming your parents"…), it is because of your early programming (from 0-8 years) and what you were told about money, success and life in general.
That is controlling your current income - and your success - or lack of it...
The things you were told at that early, most influential age, are now creeping out and affecting how successful you are in business, in life and yes, in your Real Estate investing.
THERE IS GOOD NEWS
The greatest thing about this fact - as horrible as it seems - is that you can change the 'programming' - you have the power to do it!
You can reprogram yourself in any way you want - have anything you want - do anything you want…
All it takes is simply to 'reinstall' the right kind of thinking.
And, it is easier than you might think!
One of the best ways to do that is to get a CD audio set from someone you like to listen to - someone that thinks positively and speaks of the life you want to live. Many home study courses are available (yes, including mine) that are designed to inspire and motivate you, while they teach you the methods and secrets of real estate investing.
Purchase one - listen to it, over and over - until you hear yourself speaking that way, too.
You see, we are all simply creatures of habit and environment - if we allow junk to get into our heads, all we will ever say is junk coming out.
If all you listen to is the bad stuff in life (like the TV news, most 'talk radio' shows, those TV 'real life' shows that end up in fights - you know the ones…, and even violent movies where the language is nothing you'd ever expect to hear from your own lips…), that is exactly what you will wind up sounding like!
It is true - 'you are what you eat' - and that counts just as much for what you put in your ears as it does for what you put in your mouth!
If you spend your time around 'bar people', you'll speak and act like them. Not that there's anything wrong with that, as long as you made a conscious thought that it is what you want, but I think you'd be much more successful at Real Estate investing if you were listening to a successful person teaching you about Real Estate Investing!
Now, let's get right to the point about the various methods and concepts you have learned about Real Estate Investing…
You may call yourself a 'real estate investing expert', but if you have to get up every morning and wonder where your next check is coming from, you aren't making real estate investments, you are being employed in a Real Estate Investing JOB!
Yes, that's a hard-hitting statement.
You see, I want you to 'get real' with yourself and simply admit it - Real Estate investing is when you put money into a Real Estate investment and then get some money out - 'real estate investing' defined…
Yet, it seems that most people I meet want to attend my real estate training or purchase my real estate courses that have to do with 'No Money Down' (NMD) “real estate investing”…
Now, that kind of talk just proves the point - you can reprogram yourself to speak a different language - even if it doesn't make sense!
A bunch of 'gurus' have told you over and over again that 'No Money Down' is real estate investing - even though you learned at an early age that 'invest' means to put money into something and get money out (see http://dictionary.reference.com/search?q=invest for other definitions - none of them say 'No Money Down'...)
Now, it's not that 'NMD Real Estate investing' is all bad - heck, my students and I make several thousand dollars from these types of 'Real Estate investing' transactions every year, too.
Just don't lie to yourself and say they are 'real estate investments', we know very clearly that these are simply 'earned income' from one portion of your real estate investing business - the real estate 'job' portion - earned while in transition from your 'corporate job' to your 'real estate investing job' and on the road to true Real Estate Investing.
In other real estate investing articles, I cover some of the methods and techniques you, too, can explore while moving from your 'corporate job' to your 'real estate investing job' and you'll learn some insider secrets for taking that leap quickly.
About The Author
Steve Majors - The Lazy Investor
Profit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate training course~ http://SteveMajors.com
Let's get REAL about something - and quelch the LIES you have been told about Real Estate Investing…
What I am going to reveal to you are some basic truths about Real Estate investing - truths that may totally affect the Real Estate investments you have now - and certainly I intend to modify the way you do Real Estate investing in the future.
Let's get right to it - and into the heart of the real estate investing issue…
You have been programmed all your life to become what you are today - from school, friends, relatives and, yes, your parents.
Recent studies show that you are who you are now, more from what you learned prior to age 8 than in anything else you have learned since.
Now, that may surprise you, but it is true that what you learned at the earliest ages affects the way you make Real Estate investments today, and the type of Real Estate investing success you will have going forward!
Yes, that's a bit shocking…
You see, if you grew up in an environment where you heard things like “We can't afford it”, “Be sure you have saved enough and have the cash to buy it (i.e., never use credit)” or numerous other phrases that you now hear yourself saying (you know what I'm talking about - those times you catch yourself "becoming your parents"…), it is because of your early programming (from 0-8 years) and what you were told about money, success and life in general.
That is controlling your current income - and your success - or lack of it...
The things you were told at that early, most influential age, are now creeping out and affecting how successful you are in business, in life and yes, in your Real Estate investing.
THERE IS GOOD NEWS
The greatest thing about this fact - as horrible as it seems - is that you can change the 'programming' - you have the power to do it!
You can reprogram yourself in any way you want - have anything you want - do anything you want…
All it takes is simply to 'reinstall' the right kind of thinking.
And, it is easier than you might think!
One of the best ways to do that is to get a CD audio set from someone you like to listen to - someone that thinks positively and speaks of the life you want to live. Many home study courses are available (yes, including mine) that are designed to inspire and motivate you, while they teach you the methods and secrets of real estate investing.
Purchase one - listen to it, over and over - until you hear yourself speaking that way, too.
You see, we are all simply creatures of habit and environment - if we allow junk to get into our heads, all we will ever say is junk coming out.
If all you listen to is the bad stuff in life (like the TV news, most 'talk radio' shows, those TV 'real life' shows that end up in fights - you know the ones…, and even violent movies where the language is nothing you'd ever expect to hear from your own lips…), that is exactly what you will wind up sounding like!
It is true - 'you are what you eat' - and that counts just as much for what you put in your ears as it does for what you put in your mouth!
If you spend your time around 'bar people', you'll speak and act like them. Not that there's anything wrong with that, as long as you made a conscious thought that it is what you want, but I think you'd be much more successful at Real Estate investing if you were listening to a successful person teaching you about Real Estate Investing!
Now, let's get right to the point about the various methods and concepts you have learned about Real Estate Investing…
You may call yourself a 'real estate investing expert', but if you have to get up every morning and wonder where your next check is coming from, you aren't making real estate investments, you are being employed in a Real Estate Investing JOB!
Yes, that's a hard-hitting statement.
You see, I want you to 'get real' with yourself and simply admit it - Real Estate investing is when you put money into a Real Estate investment and then get some money out - 'real estate investing' defined…
Yet, it seems that most people I meet want to attend my real estate training or purchase my real estate courses that have to do with 'No Money Down' (NMD) “real estate investing”…
Now, that kind of talk just proves the point - you can reprogram yourself to speak a different language - even if it doesn't make sense!
A bunch of 'gurus' have told you over and over again that 'No Money Down' is real estate investing - even though you learned at an early age that 'invest' means to put money into something and get money out (see http://dictionary.reference.com/search?q=invest for other definitions - none of them say 'No Money Down'...)
Now, it's not that 'NMD Real Estate investing' is all bad - heck, my students and I make several thousand dollars from these types of 'Real Estate investing' transactions every year, too.
Just don't lie to yourself and say they are 'real estate investments', we know very clearly that these are simply 'earned income' from one portion of your real estate investing business - the real estate 'job' portion - earned while in transition from your 'corporate job' to your 'real estate investing job' and on the road to true Real Estate Investing.
In other real estate investing articles, I cover some of the methods and techniques you, too, can explore while moving from your 'corporate job' to your 'real estate investing job' and you'll learn some insider secrets for taking that leap quickly.
About The Author
Steve Majors - The Lazy Investor
Profit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate training course~ http://SteveMajors.com
Real Estate Website Scams
by: Bob Schwartz
Many still say the Internet is like the Wild West. When it comes to the proliferation of scams, this is certainly true! As webmaster for over two dozen legal, real estate, and other business oriented websites, we receive a lot of email and phone solicitations. Often our clients ask our opinion on an Internet service or software product. We have researched and found the majority of offers directed toward real estate firms are what I call the half-truth variety.
It is interesting that these offers directed at small to mid-size firms are like live Internet viruses, they seem to mutate over time. The core remains, but, the exterior packaging (a.k.a. sales pitch) appears totally different.
One of the most enduring of such Internet scams is the offer to list your real estate site in an Internet real estate directory at what appears to be a huge savings over a legitimate real estate directory. The perpetrators of such scams provide impressive ‘traffic’ figures, and in many cases, even show that their directory is listed on the first page of a major directory.
Looking at one scam in detail revealed the following facts:
A. Traffic figures can be manipulated. For about $50, anyone can purchase ‘traffic’ directed to any site. The way this ‘traffic’ is generated is the problem. The majority is machine generated overseas, or funneled through MLM /porn/music sites. In either case, your site will register visits but no business will ever be generated.
B. For placements on the first page of major search engines, there are two highly used methods. The first method, usually just makes the statement that the site has page one placement. Ask further and it is usually the name of the directory that has page one placement. The directory name might be www.real-estate-intercontinental-directory1.com and a search for real estate international directory1 could appear on page one of many search engines. However, how many potential real estate clients in Houston, Texas, will be likely to type in this exact directory name into their search engine? What they may use will be phrases like: Houston real estate, Houston TX MLS, Houston Texas agents, etc.
The other method used is bidding on popular real estate phrases on the major pay-for-click search engine programs. The problem here is that these ‘sponsored’ ads have to be differentiated from the real or ‘organic’ results. Once spending limits on the bids are reached, or the bidding program is terminated, the standing vanishes. After all, these standings were only achieved by cash payment, not a properly designed and optimized real estate website. Another factor to consider here is that current webmaster opinions suggest 50 to 70% of searchers skip over such ‘sponsored’ listings in favor of the ‘organic’ listings.
Almost any high school student can create a ‘real estate directory’ with an impressive sounding name like www.professional-real-estate-advice-directory1.com, but do you really want to be listed there? Believe it or not, many naive agents have taken the bait. I asked one such agent what results he had achieved during almost a year with the listing. The reply was NO BUSINESS, and he believed they never received any phone calls. I then asked why he chose to advertise with this firm. The reply was because they only charged $49 for a full page ad for one year.
A far better investment for a real estate website would be a top website submission program such as the one at: http://www.websitetrafficbuilders.com/url-placement-search-engines.htm
The old adage of “You get what you pay for” really applies here. Be careful out there, very careful!
Copyright 2005 Promotions Unlimited – All rights reserved.
About The Author
Bob Schwartz runs 4 real estate sites. At http://www.brokerforyou.com/real-estate-partner-sign-up.htm can tade links w/these sites. His main site offers web hosting - domain registration & Internet software. http://www.websitetrafficbuilders.com. Improve your sites creditability w/Free web site awards: http://www.web-site-award-winning.com
Many still say the Internet is like the Wild West. When it comes to the proliferation of scams, this is certainly true! As webmaster for over two dozen legal, real estate, and other business oriented websites, we receive a lot of email and phone solicitations. Often our clients ask our opinion on an Internet service or software product. We have researched and found the majority of offers directed toward real estate firms are what I call the half-truth variety.
It is interesting that these offers directed at small to mid-size firms are like live Internet viruses, they seem to mutate over time. The core remains, but, the exterior packaging (a.k.a. sales pitch) appears totally different.
One of the most enduring of such Internet scams is the offer to list your real estate site in an Internet real estate directory at what appears to be a huge savings over a legitimate real estate directory. The perpetrators of such scams provide impressive ‘traffic’ figures, and in many cases, even show that their directory is listed on the first page of a major directory.
Looking at one scam in detail revealed the following facts:
A. Traffic figures can be manipulated. For about $50, anyone can purchase ‘traffic’ directed to any site. The way this ‘traffic’ is generated is the problem. The majority is machine generated overseas, or funneled through MLM /porn/music sites. In either case, your site will register visits but no business will ever be generated.
B. For placements on the first page of major search engines, there are two highly used methods. The first method, usually just makes the statement that the site has page one placement. Ask further and it is usually the name of the directory that has page one placement. The directory name might be www.real-estate-intercontinental-directory1.com and a search for real estate international directory1 could appear on page one of many search engines. However, how many potential real estate clients in Houston, Texas, will be likely to type in this exact directory name into their search engine? What they may use will be phrases like: Houston real estate, Houston TX MLS, Houston Texas agents, etc.
The other method used is bidding on popular real estate phrases on the major pay-for-click search engine programs. The problem here is that these ‘sponsored’ ads have to be differentiated from the real or ‘organic’ results. Once spending limits on the bids are reached, or the bidding program is terminated, the standing vanishes. After all, these standings were only achieved by cash payment, not a properly designed and optimized real estate website. Another factor to consider here is that current webmaster opinions suggest 50 to 70% of searchers skip over such ‘sponsored’ listings in favor of the ‘organic’ listings.
Almost any high school student can create a ‘real estate directory’ with an impressive sounding name like www.professional-real-estate-advice-directory1.com, but do you really want to be listed there? Believe it or not, many naive agents have taken the bait. I asked one such agent what results he had achieved during almost a year with the listing. The reply was NO BUSINESS, and he believed they never received any phone calls. I then asked why he chose to advertise with this firm. The reply was because they only charged $49 for a full page ad for one year.
A far better investment for a real estate website would be a top website submission program such as the one at: http://www.websitetrafficbuilders.com/url-placement-search-engines.htm
The old adage of “You get what you pay for” really applies here. Be careful out there, very careful!
Copyright 2005 Promotions Unlimited – All rights reserved.
About The Author
Bob Schwartz runs 4 real estate sites. At http://www.brokerforyou.com/real-estate-partner-sign-up.htm can tade links w/these sites. His main site offers web hosting - domain registration & Internet software. http://www.websitetrafficbuilders.com. Improve your sites creditability w/Free web site awards: http://www.web-site-award-winning.com
Real Estate Margin Calls
by: Al Thomas
Have you ever heard of a real estate margin call? You know about stock market margin calls. That’s when you have bought more stock than you have money and borrowed from your broker to buy extra shares. You bought $10,000 of stock, but only have $5,000 in your account.
It is great as long as the shares continue to advance. If the stock declines by a certain percentage the broker will call you to send in a check to cover the shortage. Hence, a margin call. If you don’t send in the money he will sell out your position and you will have a loss which you must pay. Many people send in money and continue to do so if the stock declines.
All professional traders will tell you, “Never meet a margin call. Sell.”
In real estate we all (most of us) have that thing called a mortgage. We bought that house on margin. As long as you send in the money every month you may remain in the house.
Today there are many people speculating in real estate as they did in the stock market. Buy something and wait for the market to go up and then sell. Just like buying AT&T stock at $40 and selling it at $100. You could have done that. Today it is around $20.
Condominiums are being bought with a small deposit of five percent or less before the ground is broken. Speculators will sell as soon as the building is completed or before to another speculator and he sells to another speculator until he runs out of greater fools. It has been a speculator’s dream and many have made large sums doing it. It’s like the kid’s game of musical chairs.
Private individuals are re-mortgaging at larger amounts to take out equity to spend on their home, invest in other real estate as a speculator or for other purposes. They are increasing their monthly payments and ARM rates are increasing. This will work as long as the borrower continues to have income. Many count on the incomes of both spouses.
If and when the economy slows down (and it seems to doing that now) it might be difficult or impossible to meet the margin call, make the mortgage payment. History has shown that there are 2 declining economic periods within any 10 year period and there are longer 16 year cycles of good times and poor times.
To maintain the investment in property the mortgagee must keep up the payments. It has been recorded in recent history that when the home values fell below the mortgage amount many folks walked away. That is not allowed any more as the new bankruptcy law does not forgive mortgage obligations. The borrower must repay any loss to the lending institution.
Mortgage payments are like margin calls. Failure to meet the call every month means the loss of your equity. This is a margin call you will want to meet.
About The Author
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005.
Have you ever heard of a real estate margin call? You know about stock market margin calls. That’s when you have bought more stock than you have money and borrowed from your broker to buy extra shares. You bought $10,000 of stock, but only have $5,000 in your account.
It is great as long as the shares continue to advance. If the stock declines by a certain percentage the broker will call you to send in a check to cover the shortage. Hence, a margin call. If you don’t send in the money he will sell out your position and you will have a loss which you must pay. Many people send in money and continue to do so if the stock declines.
All professional traders will tell you, “Never meet a margin call. Sell.”
In real estate we all (most of us) have that thing called a mortgage. We bought that house on margin. As long as you send in the money every month you may remain in the house.
Today there are many people speculating in real estate as they did in the stock market. Buy something and wait for the market to go up and then sell. Just like buying AT&T stock at $40 and selling it at $100. You could have done that. Today it is around $20.
Condominiums are being bought with a small deposit of five percent or less before the ground is broken. Speculators will sell as soon as the building is completed or before to another speculator and he sells to another speculator until he runs out of greater fools. It has been a speculator’s dream and many have made large sums doing it. It’s like the kid’s game of musical chairs.
Private individuals are re-mortgaging at larger amounts to take out equity to spend on their home, invest in other real estate as a speculator or for other purposes. They are increasing their monthly payments and ARM rates are increasing. This will work as long as the borrower continues to have income. Many count on the incomes of both spouses.
If and when the economy slows down (and it seems to doing that now) it might be difficult or impossible to meet the margin call, make the mortgage payment. History has shown that there are 2 declining economic periods within any 10 year period and there are longer 16 year cycles of good times and poor times.
To maintain the investment in property the mortgagee must keep up the payments. It has been recorded in recent history that when the home values fell below the mortgage amount many folks walked away. That is not allowed any more as the new bankruptcy law does not forgive mortgage obligations. The borrower must repay any loss to the lending institution.
Mortgage payments are like margin calls. Failure to meet the call every month means the loss of your equity. This is a margin call you will want to meet.
About The Author
Al Thomas' best selling book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter and receive his market letter for 3 months at www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005.
How To Find The Right Real Estate Agent In Cyprus
by: Mark Vurnum
If you are looking to buy property overseas, the process can be fraught with uncertainties and worries as you look for that dream house in an area in which, to be frank, you're not all that familiar. Here, Cyprus is no different. So, how do you go about finding the right real estate agent in Cyprus?
First off, authorised real estate agents in Cyprus need to be both licensed and registered. However, not speaking the same language as you do, and having their fees paid for by the seller, may give you serious cause to wonder whether they have your best interests at heart or the seller's! If this is the case, then your first port-of-call should be the Cyprus Real Estate Agents Association ("Association"). While the Association may not be able to give you conclusive evidence that your chosen real estate agent is either the best or worst in the business, they should speak English and should be able to give you some reassurance towards calming your worries. Also, with the European Confederation of Real Estate Agents trying to harmonise the standards of real estate agents across Europe (which these days includes Cyprus), the Association should be able to give you the name of some reputable real estate agents in the area where you are looking.
Besides checking the details of any real estate agent with the Association, if you know anyone in Cyprus, you might also want to ask them if they have any recommendations. In fairness, there is rarely anything as good as a good recommendation given by word-of-mouth.
Finally, if you are still in the UK looking for property in Cyprus before you go, then the Internet has a wide selection of Cyprus real estate agents advertising their wares. In most cases, the sites also have a good selection of pictures of properties, which, if nothing else, will give you some idea of the types of property that the agent commonly deals with. But, keep in mind that although many Brits do use the services of English-speaking real estate agents they found on the Internet, the Internet itself is no assurance that the real estate agent is going to be good - so if you do find an agent this way, try to get testimony from someone who has used them before or ask for proof that they're a member of the Association.
About The Author
Mark Vurnum
Lokking for cyprus property? The visit : http://www.yourcyprusproperty.co.uk for your free 56 page buyers guide. Giving you all the useful info you need to find your property in Cyprus.`
If you are looking to buy property overseas, the process can be fraught with uncertainties and worries as you look for that dream house in an area in which, to be frank, you're not all that familiar. Here, Cyprus is no different. So, how do you go about finding the right real estate agent in Cyprus?
First off, authorised real estate agents in Cyprus need to be both licensed and registered. However, not speaking the same language as you do, and having their fees paid for by the seller, may give you serious cause to wonder whether they have your best interests at heart or the seller's! If this is the case, then your first port-of-call should be the Cyprus Real Estate Agents Association ("Association"). While the Association may not be able to give you conclusive evidence that your chosen real estate agent is either the best or worst in the business, they should speak English and should be able to give you some reassurance towards calming your worries. Also, with the European Confederation of Real Estate Agents trying to harmonise the standards of real estate agents across Europe (which these days includes Cyprus), the Association should be able to give you the name of some reputable real estate agents in the area where you are looking.
Besides checking the details of any real estate agent with the Association, if you know anyone in Cyprus, you might also want to ask them if they have any recommendations. In fairness, there is rarely anything as good as a good recommendation given by word-of-mouth.
Finally, if you are still in the UK looking for property in Cyprus before you go, then the Internet has a wide selection of Cyprus real estate agents advertising their wares. In most cases, the sites also have a good selection of pictures of properties, which, if nothing else, will give you some idea of the types of property that the agent commonly deals with. But, keep in mind that although many Brits do use the services of English-speaking real estate agents they found on the Internet, the Internet itself is no assurance that the real estate agent is going to be good - so if you do find an agent this way, try to get testimony from someone who has used them before or ask for proof that they're a member of the Association.
About The Author
Mark Vurnum
Lokking for cyprus property? The visit : http://www.yourcyprusproperty.co.uk for your free 56 page buyers guide. Giving you all the useful info you need to find your property in Cyprus.`
Real Estate Investor Question: Rehab and Sell, or Rehab and Keep?
by: Bruce W. Ford
Here's another awesome question I received from my discussion board. The question; Why bother keeping property after it's rehabbed? Why not sell it after the rehab and GET PAID!
Of course, the first questions that you must answer is how emergent is your need for quick cash? You can likely generate the most SHORT TERM cash by selling a freshly rehabbed house. But, you will give much of it away in taxes come next April.
If you keep it, you stand to make more! You will also enjoy some great benefits while you own it such as cash flow, a tax break, and MORE cash with the future appreciation. You can still pull some nice cash a few months after buying it when you refinance (post rehab) the property from your hard money (at 70% loan to value) to long term financing (at 85% or 90% loan to value).
The short answer is an investor is going to make considerably more money by hanging onto a property after it's rehabbed. There is a downside to it. You have to be a landlord, and you have to decide if you want to do that. I don't think it's too bad as long the landlording is done correctly.
Let me illustrate the difference in overall money between rehab and sell, and rehab and rent investing with this example;
Let's say appreciation rates are 5% in your town and the average price of a freshly rehabbed property in the neighborhoods investors buy in is $100,000. Let's also say there is Bill and Fred.
Bill sells his properties after rehabbing and makes $15-18,000 per house. Good boy Bill!
Fred keeps his rehab projects and cash-out refinances, pulling out around $10,000 per house within 3-6 months of ownership. (Fred trades his 70% loan-to-value (LTV) ratio hard money for long term, 30-year mortgages at a lower interest rate with an 85-90% loan to value ratio. He pockets the difference between what it costs to pay off the hard money and the new mortgage less closing costs. This works out to about $10,000 per property.)
Bill (rehab and sell) makes a great living. Ten houses per year is $150,000-$180,000 per year...nice jingle! The downside is that Bill has to keep rehabbing to keep making that living year-after-year and pays taxes on all that money as regular income (ouch!). So his $150,000 per year is in reality somewhat less.
Fred (the rehabber) also makes a great living. Ten houses per year makes him $100,000 or so in tax free, spendable cash. But, Fred controls a million dollars in real estate and it's going up in value year after year. Also, Fred pays no taxes on that money he gets from the cash-out refinances. It's part of a mortgage, so must be paid back, therefore is not income! I love that part!
Let's look at what Fred's doing more closely.
Let's say Fred bought 10 houses valued at $100,000 each, owes $90,000 on each one (after the 90% cash out refinance), so he controls $1,000,000 in property. If he keeps them 5 years (assuming a low appreciation rate...which is pretty conservative):
Purchase year - 10 houses x $100,000 = $1,000,000
Year 1 - Same 10 houses X $105,000 = $1,050,000
Year 2 - Same 10 houses X $110,250 = $1,102,500
Year 3 - Same 10 houses X $115,762 = $1,157,620
Year 4 - Same 10 houses X $121,550 = $1,215,500
Year 5 - Same 10 houses X $127,627 = $1,276,270
Essentially, Fred makes an extra $50,000 per year for keeping 10 properties. After owning them 5 years, if he sells, he puts $276,000 in his pocket.
Remember
- Some parts of the country will appreciate much faster than 5%. Heck some places properties will double in value in 5 years.
- No tax benefits of keeping the property is included here. That equates to thousands of dollars in real income.
- This is ONE ten-house year. Let's say you want to "top out" at owning 30 houses. Well, in just a couple of years your buying will slow down to a trickle and you'll start selling and cashing out of properties. I mean, how many ten-house years to you need to string together before you are set for life?
- What if you hold these houses 10 years? The numbers get pretty exciting.
If you're like me and you don't want to do this for too many years, then holding properties for a few years makes a lot of sense, especially if you don't have much personal money invested in them.
So what of poor old Bill? Chances are, Bill will satisfy his need for short term cash, then start holding property. What do you think?
About The Author
Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at http://www.Rehab-Real-Estate.com
Here's another awesome question I received from my discussion board. The question; Why bother keeping property after it's rehabbed? Why not sell it after the rehab and GET PAID!
Of course, the first questions that you must answer is how emergent is your need for quick cash? You can likely generate the most SHORT TERM cash by selling a freshly rehabbed house. But, you will give much of it away in taxes come next April.
If you keep it, you stand to make more! You will also enjoy some great benefits while you own it such as cash flow, a tax break, and MORE cash with the future appreciation. You can still pull some nice cash a few months after buying it when you refinance (post rehab) the property from your hard money (at 70% loan to value) to long term financing (at 85% or 90% loan to value).
The short answer is an investor is going to make considerably more money by hanging onto a property after it's rehabbed. There is a downside to it. You have to be a landlord, and you have to decide if you want to do that. I don't think it's too bad as long the landlording is done correctly.
Let me illustrate the difference in overall money between rehab and sell, and rehab and rent investing with this example;
Let's say appreciation rates are 5% in your town and the average price of a freshly rehabbed property in the neighborhoods investors buy in is $100,000. Let's also say there is Bill and Fred.
Bill sells his properties after rehabbing and makes $15-18,000 per house. Good boy Bill!
Fred keeps his rehab projects and cash-out refinances, pulling out around $10,000 per house within 3-6 months of ownership. (Fred trades his 70% loan-to-value (LTV) ratio hard money for long term, 30-year mortgages at a lower interest rate with an 85-90% loan to value ratio. He pockets the difference between what it costs to pay off the hard money and the new mortgage less closing costs. This works out to about $10,000 per property.)
Bill (rehab and sell) makes a great living. Ten houses per year is $150,000-$180,000 per year...nice jingle! The downside is that Bill has to keep rehabbing to keep making that living year-after-year and pays taxes on all that money as regular income (ouch!). So his $150,000 per year is in reality somewhat less.
Fred (the rehabber) also makes a great living. Ten houses per year makes him $100,000 or so in tax free, spendable cash. But, Fred controls a million dollars in real estate and it's going up in value year after year. Also, Fred pays no taxes on that money he gets from the cash-out refinances. It's part of a mortgage, so must be paid back, therefore is not income! I love that part!
Let's look at what Fred's doing more closely.
Let's say Fred bought 10 houses valued at $100,000 each, owes $90,000 on each one (after the 90% cash out refinance), so he controls $1,000,000 in property. If he keeps them 5 years (assuming a low appreciation rate...which is pretty conservative):
Purchase year - 10 houses x $100,000 = $1,000,000
Year 1 - Same 10 houses X $105,000 = $1,050,000
Year 2 - Same 10 houses X $110,250 = $1,102,500
Year 3 - Same 10 houses X $115,762 = $1,157,620
Year 4 - Same 10 houses X $121,550 = $1,215,500
Year 5 - Same 10 houses X $127,627 = $1,276,270
Essentially, Fred makes an extra $50,000 per year for keeping 10 properties. After owning them 5 years, if he sells, he puts $276,000 in his pocket.
Remember
- Some parts of the country will appreciate much faster than 5%. Heck some places properties will double in value in 5 years.
- No tax benefits of keeping the property is included here. That equates to thousands of dollars in real income.
- This is ONE ten-house year. Let's say you want to "top out" at owning 30 houses. Well, in just a couple of years your buying will slow down to a trickle and you'll start selling and cashing out of properties. I mean, how many ten-house years to you need to string together before you are set for life?
- What if you hold these houses 10 years? The numbers get pretty exciting.
If you're like me and you don't want to do this for too many years, then holding properties for a few years makes a lot of sense, especially if you don't have much personal money invested in them.
So what of poor old Bill? Chances are, Bill will satisfy his need for short term cash, then start holding property. What do you think?
About The Author
Bruce W. Ford is the editor of Rehab-Real-Estate.com. Get his important Special Report entitled "12 Things Real Estate Investment Gurus Won't Tell You" at http://www.Rehab-Real-Estate.com
Buying and Selling Real Estate: Ten Tips
by: Marshall Colt
Real estate is changing hands in ways that make headlines. Whether you’re a buyer or seller, here are some tips to help you make the best deal.
BUYING:
So you want to buy a house? In this market? Are you nuts? Actually, it depends on where you are. You could be very shrewd right now if you pick the right spot, the right pricing trend and bid aggressively. It requires homework, homework, homework.
Example: My wife scoured a market, screening 90+ houses. We eventually found a fixer-upper for $162K. We offered $160K the same morning it was listed. They took it on a handshake. One year later—with no improvements!—we sold it for $208K. For those of you without a calculator, that’s a 30% return on the investment.
And you can do it, too. Here’s how:
1. Pick a growing area. This is essential. Yes, it’s hard to predict economic cycles and which metropolitan areas are going to prosper over the next year or so. However, if you read the business pages regularly, you’ll have a much better idea of where to buy/invest.
2. Learn the market. This is also essential. You’ve got to know what’s out there, what houses are going for and how to spot a bargain from the overpriced. When you find your bargain, you probably won’t have much time before the competition gets wind of it. So you must be ready to make a solid offer right away.
3. Make your offer contingent upon a thorough inspection. There’s nothing worse than buying something with plenty of infrastructure problems. They’ll cost you time, money and aspirin. If you discover only a few problems, try to get the seller to lower the price to counterbalance the flaws in the property. They often will.
4. Finally, recognize that you will not likely land your first prospect. Therefore, be patient and be prepared to keep looking until you find the right house that makes good economic sense for you to purchase.
Follow the above four tips and you’ll do better with your property investment.
SELLING:
What to get the best price for your home? Just follow these six tips:
1. Everything (usually) looks better in brighter light. So let the sun shine in. Open curtains and blinds and turn on lights in all the rooms.
2. Fix up those little things. Oil or WD-40 those squeaky door and window hinges. Tighten any loose door handles. Replace broken shutters, fix leaky faucets, etc.
3. Deodorize! Nothing turns off a potential buyer than a “funny” or unpleasant smell. You’ve heard of the bake bread or cookies in the oven trick…it’s a lot easier to just use plug in deodorizers.
4. One of the easiest things to do is clean the place. Clean in the corners, clean the cabinets, re-grout the kitchen and bathroom sinks, tubs, etc. Wash the baseboards, make the place shine, especially in the entrance way.
5. Get rid of the clutter! Buyers need to envision the home as they would live in it. Anything interfering with that vision works against you in selling your home to them. So divide all your possessions into three groups:
a) things you really need to live in the house,
b) things you don’t really need but want to take with you to your next home, and
c) things you don’t want to take with you and should really toss.
Now, put those things your want to take with you to your next home in a rental storage facility. Hold a garage sale and/or donate everything else to charity. That’ll leave your home looking elegantly simple…the best way to present it to potential buyers.
6. Paint, paint, paint. Virtually every home has some areas that could use a fresh coat of paint. It is one of the most important (i.e., best and inexpensive) investment you can make is maximizing your sale price. Make sure you patch cracks and peeling paint first, though.
Follow the above six tips and you’ll sell your home faster and for a better price that if you didn’t.
About The Author
Marshall Colt holds a real estate sales license in Colorado, with experience in Denver’s prestigious Hilltop area since 1994. For more information, see: http://www.denver-real-estate-homes-for-sale.net
Real estate is changing hands in ways that make headlines. Whether you’re a buyer or seller, here are some tips to help you make the best deal.
BUYING:
So you want to buy a house? In this market? Are you nuts? Actually, it depends on where you are. You could be very shrewd right now if you pick the right spot, the right pricing trend and bid aggressively. It requires homework, homework, homework.
Example: My wife scoured a market, screening 90+ houses. We eventually found a fixer-upper for $162K. We offered $160K the same morning it was listed. They took it on a handshake. One year later—with no improvements!—we sold it for $208K. For those of you without a calculator, that’s a 30% return on the investment.
And you can do it, too. Here’s how:
1. Pick a growing area. This is essential. Yes, it’s hard to predict economic cycles and which metropolitan areas are going to prosper over the next year or so. However, if you read the business pages regularly, you’ll have a much better idea of where to buy/invest.
2. Learn the market. This is also essential. You’ve got to know what’s out there, what houses are going for and how to spot a bargain from the overpriced. When you find your bargain, you probably won’t have much time before the competition gets wind of it. So you must be ready to make a solid offer right away.
3. Make your offer contingent upon a thorough inspection. There’s nothing worse than buying something with plenty of infrastructure problems. They’ll cost you time, money and aspirin. If you discover only a few problems, try to get the seller to lower the price to counterbalance the flaws in the property. They often will.
4. Finally, recognize that you will not likely land your first prospect. Therefore, be patient and be prepared to keep looking until you find the right house that makes good economic sense for you to purchase.
Follow the above four tips and you’ll do better with your property investment.
SELLING:
What to get the best price for your home? Just follow these six tips:
1. Everything (usually) looks better in brighter light. So let the sun shine in. Open curtains and blinds and turn on lights in all the rooms.
2. Fix up those little things. Oil or WD-40 those squeaky door and window hinges. Tighten any loose door handles. Replace broken shutters, fix leaky faucets, etc.
3. Deodorize! Nothing turns off a potential buyer than a “funny” or unpleasant smell. You’ve heard of the bake bread or cookies in the oven trick…it’s a lot easier to just use plug in deodorizers.
4. One of the easiest things to do is clean the place. Clean in the corners, clean the cabinets, re-grout the kitchen and bathroom sinks, tubs, etc. Wash the baseboards, make the place shine, especially in the entrance way.
5. Get rid of the clutter! Buyers need to envision the home as they would live in it. Anything interfering with that vision works against you in selling your home to them. So divide all your possessions into three groups:
a) things you really need to live in the house,
b) things you don’t really need but want to take with you to your next home, and
c) things you don’t want to take with you and should really toss.
Now, put those things your want to take with you to your next home in a rental storage facility. Hold a garage sale and/or donate everything else to charity. That’ll leave your home looking elegantly simple…the best way to present it to potential buyers.
6. Paint, paint, paint. Virtually every home has some areas that could use a fresh coat of paint. It is one of the most important (i.e., best and inexpensive) investment you can make is maximizing your sale price. Make sure you patch cracks and peeling paint first, though.
Follow the above six tips and you’ll sell your home faster and for a better price that if you didn’t.
About The Author
Marshall Colt holds a real estate sales license in Colorado, with experience in Denver’s prestigious Hilltop area since 1994. For more information, see: http://www.denver-real-estate-homes-for-sale.net
10 Tips for Successful Real Estate Property Investment
by: Rhiannon Williamson
Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.
Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.
1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak. You need to know where the curve of the property market cycle is at in your preferred investment area.
2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.
3) Know your market – who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.
5) Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs – research fees, charges and all expenses you will incur when you buy your property – they differ from country to country and sometimes even from state to state. In Turkey for example you should add on an additional 5% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential – what factors point to the potential profitability of your real estate property investment? If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs – if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless? In Spain a foreign buyer can incur up to 35% capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.
9) Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
About The Author
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com
Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.
Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.
1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak. You need to know where the curve of the property market cycle is at in your preferred investment area.
2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.
3) Know your market – who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.
5) Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs – research fees, charges and all expenses you will incur when you buy your property – they differ from country to country and sometimes even from state to state. In Turkey for example you should add on an additional 5% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential – what factors point to the potential profitability of your real estate property investment? If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs – if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless? In Spain a foreign buyer can incur up to 35% capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.
9) Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
About The Author
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com
In a Town Called Google The Keyword Is Real Estate
by: David Ferrers
The late Conrad Hilton who built a chain of hotels across the world, was firmly of the belief that if he built a hotel in the right location it would make money. “Location, Location, Location” was his motto. Never build a hotel where there ain’t no traffic.
The same rule applies on the Internet. Build your site in the right location and it will succeed.
So the question is: “how do I find the right plot of Internet real estate on which to build my site?”
For the purposes of this exercise I would like you to imagine a smart seaside town called Google.
Along the sea front and around the marina, where the luxury yachts are parked, are smart hotels, casinos and apartment blocks. At street level in each of these buildings there are international shops like Tiffany, Gucci and Prada selling luxury goods.
In the next block back from the front are really nice houses owned by wealthy citizens. And behind them are not-quite-so-nice houses and apartments. So it goes, as you walk away from the sea front the houses and shops become less and less expensive. Until, just on the outskirts of the town of Google, there is a trailer park where the least wealthy citizens stay.
In the town of Google it costs a lot of money to rent one of the shops on the seafront because they are seen by large numbers of passers-by. These will be both the wealthy people staying in the town and day-trippers who are just sight-seeing. However, you can rent a shop in the trailer park for much less money. Here you will still get valuable passing traffic but the competition will not be nearly so great.
The mistake that most people make when they build their web sites is to build around keywords which all the powerful multi-nationals are using for their seafront stores. These organizations are spending mega bucks to get their web sites to the top positions on the search engines. Your chances of competing with them and achieving a top search engine ranking are very slim.
Much better to build your web site around the ‘trailer park’ keywords. Where you can still get masses of valuable traffic, but you’re not competing with the mega-buck budgets of the multi-national corporations.
About The Author
David Ferrers
This article is taken from the second lesson in the free Diploma Course at The Online Business Academy. It goes on to tell you how to develop your web site to achieve the best possible search engine page ranking. You can join the free Diploma Course at http://www.TheOnlineBusinessAcademy.com
The late Conrad Hilton who built a chain of hotels across the world, was firmly of the belief that if he built a hotel in the right location it would make money. “Location, Location, Location” was his motto. Never build a hotel where there ain’t no traffic.
The same rule applies on the Internet. Build your site in the right location and it will succeed.
So the question is: “how do I find the right plot of Internet real estate on which to build my site?”
For the purposes of this exercise I would like you to imagine a smart seaside town called Google.
Along the sea front and around the marina, where the luxury yachts are parked, are smart hotels, casinos and apartment blocks. At street level in each of these buildings there are international shops like Tiffany, Gucci and Prada selling luxury goods.
In the next block back from the front are really nice houses owned by wealthy citizens. And behind them are not-quite-so-nice houses and apartments. So it goes, as you walk away from the sea front the houses and shops become less and less expensive. Until, just on the outskirts of the town of Google, there is a trailer park where the least wealthy citizens stay.
In the town of Google it costs a lot of money to rent one of the shops on the seafront because they are seen by large numbers of passers-by. These will be both the wealthy people staying in the town and day-trippers who are just sight-seeing. However, you can rent a shop in the trailer park for much less money. Here you will still get valuable passing traffic but the competition will not be nearly so great.
The mistake that most people make when they build their web sites is to build around keywords which all the powerful multi-nationals are using for their seafront stores. These organizations are spending mega bucks to get their web sites to the top positions on the search engines. Your chances of competing with them and achieving a top search engine ranking are very slim.
Much better to build your web site around the ‘trailer park’ keywords. Where you can still get masses of valuable traffic, but you’re not competing with the mega-buck budgets of the multi-national corporations.
About The Author
David Ferrers
This article is taken from the second lesson in the free Diploma Course at The Online Business Academy. It goes on to tell you how to develop your web site to achieve the best possible search engine page ranking. You can join the free Diploma Course at http://www.TheOnlineBusinessAcademy.com
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