A real estate agent is a person that is used as an expert to facilitate the selling of real estate. In my opinion, a real estate agent should be open to new things, including innovative marketing ideas and cutting-edge changes that impact buyers and sellers. A real estate agent should be someone who listens to buyers, sellers and renters to figure out what the public hates about agents and proactively make changes in their own business plan accordingly. A real estate agent should have business hours that are applicable to other professionals that are paid thousands of dollars per transaction.A real estate agent should practice their skills by using them everyday. A real estate agent should not be part-time in the business. This means they should not have a full-time job and sell real estate when they need some extra money. A real estate agent should be skilled at keeping their cool when something goes wrong. A real estate agent should be professional and never hang up on a client or another real estate agent, no matter what was said or done.A real estate agent should be responsible to learn, understand and keep up with all marketing tools that could and probably should be employed in selling or buying a home. The fact that a real estate agent is “not comfortable with the Internet” when most homes are now sold via the viewing on the Internet by a buyer is no longer an excuse. A real estate agent should be diligent about understanding modes of communication and marketing via every type of media from which a buyer can search and ultimately buy a home.A real estate agent should not have to turn on their fax machine when they return from the store. They should be in business, full-time, and be set up to do business anytime inside their business hours. A real estate agent should not leave town without backup and just leave a deal hanging as a result. No one cares that the real estate agent is on vacation other than the agent himself. A real estate agent should never tell a seller that open houses don’t work, when in fact, open houses sell properties, everyday. A real estate agent should never be so in-the-box that they laugh at someone for discussing the use of a St. Joseph’s statute. They shouldn’t scoff at the fact that apple pie scent may or may not sell a house just because they don’t want to go to the trouble to explain what may or may not work to the seller.A real estate agent should not cry when a seller tells them that they no longer want to sell their home or that they are not going to use them to sell the home. A real estate agent should not steal yard signs from lawns or directional signs from subdivisions just because someone did not choose to list the house with them but a competitor. A real estate agent should not bash other business models. They should simply point out the things that they bring to the table and why they feel their business model works better.A real estate agent should not open the house for a buyer and let them stay in there alone, just because the buyer looks nice. A real estate agent should always look at the identification of a buyer because they recognize that they are responsible for the seller’s property. A real estate agent should always be grateful that someone is willing to pay them thousands of dollars for a job that has never been fully explained to the public as to how little knowledge an agent needs and how little you’re trained when getting your license.America is unfortunately the only place where all of these standards, or should I say the lack of standards, are applauded everyday as good and acceptable behavior. The public needs to be reminded that an overwhelming number of inexperienced, part-time real estate agents hold in their hands the fate of most people’s largest asset. When will we put our foot down and say enough is enough… real estate is a real profession that requires skill, knowledge and a constant reach to perform strategies and results for clients.The clients deserve better.
Real estate has always been known as the safest of investments.In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.So, is commercial real estate really profitable?
Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!
However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.
But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).There are many reasons to delve into commercial real estate investment.
For example you might purchase to resell after a certain appreciation level has occurred or to generate a substantial income by leasing the property out to retailers or other business types or both.In fact, commercial real estate development is treated as a preliminary
indicator of the impending growth of the residential real estate market.
Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.Also remain open minded and understand that should the right (perfect)
opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.
For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later).Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.About the Author:
Dave Jarvis is a licensed Real Estate Broker in Florida and is Broker and Owner of Realty Concepts, Inc. a Southwest Florida Real Estate Corporation.
If you are interested in Southwest Florida Properties see his website at [http://www.rciflorida.com]For additional Real Estate information go to: [http://www.realestateseekerusa.com]
For Real Estate Financing information see : [http://www.mortgageseekerusa.com]
Definitely, there are heaps of people who want to earn a lot. So they find ways on how to have additional income.Indeed, real estate is a popular investment. A lot of millionaires out there, gain there millions through real estate investing. Even other celebrities are trying real estate investing for them to have additional incomes. They knew that real estate investing is a great way of making money.Surely, real estate investing is all what the television shows say it is, but you have to bear in mind that it is not that easy investing in real estate like in Florida real estate. Investing in Florida real estate requires plenty of works such as buying, selling, negotiating and even repairing some properties. So having the proper knowledge regarding this field is very important. If you desire to enter Florida real estate investing, you must gain the necessary knowledge, so to be prepared in entering such field. Definitely, if you enter such world, you want to earn and not just waste large amount of money. So proper education is what you should gain first before investing in Florida real estate.Everybody can invest in real estate if they desire to, and can even be successful in this field provided if they have the necessary knowledge in investing at real estate. And everybody can gain that proper knowledge if they want to learn about real estate investing especially in Florida real estate.Investing in Florida real estate requires buying property or home but before doing so, you have to educate yourself first. There are masses of strategies and techniques that real estate investors tried and do such as foreclosure, rentals, lease options and a lot more. But you have to bear in mind that those real estate investors gain their success by educating themselves on how real estate investing works.If you are entering to Florida real estate investing, you can work with real estate agent, in order to have someone to assist you with your quest. If you desire to buy property or home and sell it on your own without the help of real estate agent, it would definitely be risky in having financial loss if you to do have the proper knowledge before investing in Florida real estate.If you truly want to gain proper knowledge, there are lots of ways in order to know how real estate investing works. Purchasing and reading books about real estate investing and get some books about advices and guidelines about real estate investing. You can also use the internet in knowing about real estate investing. There are a lot of websites that offers trainings, explanation and education about different topics about real estate investing to help you gain the proper knowledge you need.Yes, investing in Florida real estate [http://floridamortgagebroker.us/] is a beneficial business. But in order to be successful in this field you have to be prepared in entering to real estate investing. Knowledge is an important factor in investing at Florida real estate. This article mentioned some ways in order to have the necessary knowledge you need. So if you desire to go on real estate investing, start educating yourself.
I recently had a long chat with one of the most successful real estate investors I’ve ever met. As I often do, I wanted to get a real understanding of the “Why?” he did real estate and what he wanted to accomplish for himself by reaching financial freedom.You see, I am firmly convinced of the truth that “If you have a big enough ‘Why?’ to do something, the ‘How?’ will reveal itself to you. This gentleman had some good things to say about the concept and completely opened my mind up to even deeper levels of understanding about the terms “success” and “freedom”.Listen, if you’re serious about making real estate investing an ultra-successful career for you, you have to go even further than just having investing in real estate be what you do for a living.It has to become a lifestyle. He threw my questions right back at me and we had some great give-and-take and it was like you could really feel that chemistry that comes into play when entrepreneurs are talking about their passion of investing in real estate.For him, it came down to asking this question, which fans of Tony Robbins should recognize its like:”If I had unlimited time, unlimited money, unlimited resources and encouragement, unlimited tools and teaching, unlimited support from friends and family, and unlimited belief in myself…what would I do? Who would I be?”Most of us would do the things that are passionate about, right?He was able early on to answer that he wanted to be a real estate investor who helped people solve problems and made money by investing in real estate. What he shared with me, however, is that he didn’t self-identify as a “real estate investor” until many, many years later.Until that moment, years later, when he claimed and began now to internalize the belief that “I am a real estate investor”, he was a hobbyist, a dabbler, a dreamer.He had this experience of self-actualization at a real estate seminar where one of the participants asked the speaker “How do I really know that I’m a real estate investor?”The speaker responded that “You know you’re a true investor when you can’t NOT invest!”He then went on to tell me that during the same seminar someone, obviously someone without a very strong “Why?” or motivation yet to become successful, asked the speaker “How can I find time in my busy schedule to do this business?”The looked at this questioner with the same patience and understanding that showed that this was the hundredth time the speaker had fielded this question, and said in effect “If you’re a real estate investor, you do not find time to invest and do this business…if you’re serious about this business you make time to do it.”After my incredibly successful investor friend let that sink into him and he found that he could really grasp hold of those two simple concepts, he realized then and there that he’d always been trying to FIND the time to invest and take the necessary actions to get his business going. For all of his “career” to that point he had been finding and taking that time to do his “business” AFTER other things that his attention and time expenditures PROVED were MORE important to him than becoming successful with real estate.The difference, after he had let these two concepts sink into him and really started to understand it and, most importantly, APPLY his understanding to his thought patterns and daily routines……the difference was that he did not just IGNORE the real-world practical matters that NEED to be a part of someone’s life (like for example to the beginning real estate investor, a steady income from a stable source to provide bills’ money and put food on the table) but other than that, he ASSURED himself that he would always MAKE time to create the life he wanted that was in answer to his compelling “Why?” to become successful- and he did it by taking solid, CONSISTENT actions and gaining unstoppable momentum.I think that these 2 concepts- of IDENTITY and claiming that you ARE what you want to be, and CONSISTENCY in finding the time necessary to DO what you ARE- applies to anyone wishing to turn a dream into a reality, whether it is to become a successful real estate investor or whatever, be it a published author, big ticket actress, or even just someone who wants to become the “World’s Best Dad”.Just substitute whatever it is that you’re passionate about for finding time to do “real estate investing” and knowing how you are really a “real estate investor?” and you’re on your way, if real estate investing is not your passion.I understand for many people it’s NOT. Many people want to USE the VEHICLE of real estate to take them to a place where you have the freedom and the luxury of time, and you have been able to achieve the financial security and independence to do what you want when you want.Now, with me, it’s writing. I’m passionate about writing, and will write whether or not I get paid for it. It’s not just what I DO, but it’s who I AM.How would you answer my friend’s question…if you had everything you ever needed already ACCOMPLISHED by investing in real estate and building a positive and successful lifestyle with plenty of passive income coming in every week?What would YOU do? Who would you BE?What’s your dream? What’s YOUR true passion?What will you do with the extraordinary wealth you can accumulate in real estate?Now I want you to write down what you are passionate about. You are passionate about something besides money, right? I certainly hope so! If you aren’t, it’s time to ask yourself a good hard question and take a long look at yourself and find out why not!Maybe your answer is like mine, that wealth and income from real estate investing can give me the freedom to write whenever I want, to get paid or not get paid but to have the flexibility for it not to MATTER. Maybe you want to spend more time with your family. Maybe you want to escape the 9 to 5 grind and make sure that you never miss another Little League game. Maybe you want to spend time golfing, fishing, or sailing, or learning the intricacies of Thai cuisine.Maybe in financial freedom you’d want to travel all over the world (of course, you’d at least LOOK at real estate while you’re there right? That’s called taking a PAYcation instead of a VACATION and you need to ask your tax professional about THAT little gift from Uncle Sam).Whatever your “Why?” is take a moment now and write it down! Commit this to paper. It’s important!Now, here’s where my friend and I agree that most people stop. This is hard. In fact, it’s often a question that if you give it the thought and meditation time that it deserves just might make you cry or knock you flat on your backside. Asking this next question you’re about to ask yourself can be downright HUMBLING or even, in some cases, extremely UPSETTING. But, you GOTTA do it!Now, write down your well-thought answers to this question:Why aren’t you living this life and doing all these things you desire NOW? If you’re not close, what would it take for you to be able to live your life of destiny and dreams?Think this is a silly exercise? Just ask yourself, “Am I getting the results right now that I want out of my life?” If you’re not, well…it might be wise to consider some opinions. ;)Just remember, without a map there is no treasure! Your “Why?” is the map that will keep you on track towards gaining momentum to becoming the IDENTITY of a true entrepreneur and professional real estate investor. And it keeping this in mind will PUSH you into taking all the actions necessary, in a CONSISTENT manner, to achieving everything it is that, until you WRITE IT DOWN, you only SAY that you really want.
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 NEWSThe 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.
Happy New Year! Here’s to 2008 being the year for taking your business and personal life to their highest level. The need for people to connect and exchange goods and services has been one of civilization’s ongoing themes. Now, the need for people to get on the internet and search for real estate information is going to increase exponentially. The big question is, not how technology will advance the real estate industry, but rather how will you use it.2008 poses many challenges for the real estate industry and its irrevocable relationship with the internet. How are you positioned to garner your share of targeted real estate leads and marketing potential of the internet? Are you investing in old traditional training techniques of sending out post cards, fancy listing presentation displays and a clever tag line? You already know that marketing to your sphere of influence and past clients is essential. But what other business systems have you implemented for seller or buyer leads?How are you spending your education dollars and time? Now is the time to take action.Search engine optimization and online lead generation is a competitive game, and it is growing more competitive by the day. You’ve read the articles, watched it on the news and read all the press releases. The biggest companies in real estate are investing the lion share of their resources to the internet. No more old traditional training, old school marketing or ideas. Major corporations are dumping money into their internet business in order to compete in the networked society we live in. What are you doing now to further your education and online real estate lead generation business? That’s your challenge in 2008 and beyond.As I’ve stated before, you can still create a very successful online real estate lead-generation business. However, these days are numbered.The Web is big, but it’s a finite resource. Well, more accurately said, cyberspace is infinite, but people will only dig so deep. Real estate Web sites that capture the top spots in the search engines are garnering high quality leads and massive lists of interested buyers and sellers. But, as more and more big-brand companies compete and figure out how to grab high ranking search engine positions, they will slowly but surely elbow out the little guy. It’s the nature of an industry to be “open” to early adopters at the beginning and then slowly close to only those that can afford the great investment of time and money needed to stay competitive. As more and more buyers and sellers use the Internet for real estate research, the “evening and weekend traditional real estate agent marketing model” is fast becoming extinct.If you want to stay competitive in the period ahead, you will need to grab a piece of the Internet action, and now is the time to establish your foothold. You CAN still create a successful real estate online lead-generating business. You CAN still get top spots in the search engines. It’s not too late, but I guarantee if you wait, it soon will be.More and more, I get calls from companies selling real estate leads. They notice I’m everywhere on the internet. My sites rank very high organically for specific real estate search terms and cpc. I also own the right spots on other real estate portals that drive targeted traffic to my listings, my sites and yes…..generate high quality, exclusive leads.I just received a call from a company selling real estate leads. As published in my book, Internet Real Estate Agent: A Guide To Dominating Internet Real Estate Leads and Marketing, there are specific questions you must ask to avoid wasting money and time. After going back and forth with the skilled sales rep., I was able to hone down the basics of how the program works.Here’s how their lead program works:1. A person is watching television, listening to the radio or sees a banner ad online. The add is asking the person to call a phone number to learn about a real estate tax advantage and commission rebate back to them if they buy or sell real estate.2. Pay $60 a month for a zip code.3. Pay 19% referral fee at closing (this gets split between the “lead company” and the customer at closing).4. Here’s the kicker….the leads are given to 7 other agents as well.This real estate sales lead business model isn’t new and many companies have a slight variation to it. Personally, I would never buy leads from this business model. I prefer to create my own exclusive lead systems.Here’s some of the pitfalls with the real estate lead business model you’re being sold.1. Leads coming from TV, Print, radio or the internet that rely on some form of incentive offer are usually very low quality leads. One of the incentive offers is a “commission rebate program”. Need I say more?2. Why pay a monthly fee so you can compete for the lead? Why not get EXCLUSIVE leads that are not incentive leads. You can’t do every lead program on earth, so pick and chose how you spend your money and time.3. I have a hard time paying a referral fee to someone when I’m competing with other agents, given a low quality lead and there’s no personal relationship. That’s not a referral, it’s a lead. No relationship, no history and no commitment from the potential customer to use me. I like paying referral fees to agents that have personal relationships with their real clients. When I get a referral call from another agent, they know the person being referred to me and I get the client. That’s a real referral and qualifies for that big referral fee.4. There are so many ways to generate leads. You should pick and chose the best ways to spend your time and money.After reading Internet Real Estate Agent, you won’t fall prey to poor Internet business models. You may make a mistake or two–I do from time to time when trying something new–but, these mistakes are quickly remedied. You will understand exactly how to improve your real estate website, what to know before buying a real estate website, advanced concepts for Google AdWords, how to market your listings online for more leads, the changing Broker/Agent model and much more. Discover how to set up your own internet real estate lead generation machine. Don’t be dependent on any one company for leads. Get educated and become independent!The book will guide you through a tremendous amount of information and facts, not hype, regarding Internet real estate lead generation and Internet marketing. It’s the lowest cost real estate training and education you will ever spend. It’s all about internet real estate lead and marketing. Keep this book by your side and use it as a trusted reference guide. Start working on your Web site, and then move onto the other areas of online lead generation and Internet marketing. Once you have your online real estate lead-generation business set up, it really will run 24 X 7, by putting the right message in front of the right people, at the right time.Agents and Brokers already know they need to market to past clients and their sphere, but it only gets you so far. They also know the urgent need to embrace the internet. The value of traditional farming techniques is diminishing. The fact is, everyone is mailing something; everyone is doing longer open houses; and everyone is getting into the real estate business. But, hardly anyone is doing online advertising. Even fewer are doing it right. In fact, most agents and brokers attempting to do online lead generation and property marketing are doing it totally wrong. Don’t waste money and time by buying leads from a company that sells false dreams of Internet riches. Take control of your business lead systems and start implementing your plan today.Here’s a short sample from the book:Marketing Your Listings for LeadsThe majority of this book has been on creating a real business Web site, driving quality traffic to your Web site, and converting that traffic into leads. Now let’s focus on how to create more business by marketing your listing online. You’ve worked long and hard to get the listing, now let’s leverage that listing to create more business. For most of the homes I’ve sold, the buyers began by viewing the pictures and details online and then contacted me about a private showing. If you market the property correctly, you will get leads. Using the list of marketing resources below, I average over 2,500 targeted property views for each listing. I get highly qualified internet buyer and seller leads when marketing a property online. Think about that for a second. Online, people are searching for a specific home, in a specific area, in a specific school district, in a certain price range, etc….and my listings are showing up. That’s a ton of quality traffic almost all of it was free.I just read the other day about a Director of Technology who serves on a major MLS board who said the traditional business model of getting leads from holding open houses is almost dead. People are using the Internet for research, and they are contacting an agent long before they enter the house. Based on my personal experience, I agree with this assessment. Having spent many Sunday’s working at open houses, I find it very rare for someone to walk through the door and say “I don’t have an agent.”The following list of ideas will put you in a position to actually make more money from each listing you have. If you don’t have any listings or are new to real estate, I suggest approaching an agent in your office that has a listing and ask if you can do some Internet advertising for him or her. Just be sure to abide by any local MLS rules you have…So here’s to 2008 and enriching your level of internet real estate education and business income.Happy New Year, Cheers!
If you are looking for an industry that you can get involved in that will only take a short bit of education, and that will help you make a great deal of money, then the very best industry for you to consider is the real estate industry. While this is no get rich quick scheme, for those who are self motivated and ready to work hard, this industry has amazing money making potential. Whether you choose to become involved in residential real estate or you decide that commercial real estate is more your style, both are amazing opportunities for involvement.First of all it is important that you understand the difference between commercial real estate and residential real estate. Commercial real estate is real estate that allows for the possibility to make income for the owner or to generate outside revenue, whether the potential is immediate or in the future. On the other hand, residential real estate includes up to four family properties and is either owner occupied, an investment property, or a second home to someone. While both types of real estate can be quite lucrative, one can usually make more money in the commercial real estate industry.Excellent ROI
One reason that the real estate industry is one of the best is because to Rate of Return (ROI) that is possible within the industry. When you start working in the real estate industry, it is very easy to start making money due to the rate of return that is possible. Both residential and commercial real estate can provide you with an excellent rate of return, and there are very few investments that can come close to providing you with this kind of return on your investment.Using the Money of Others
Another reason that real estate is such an excellent industry is that many times it will not cost you much to get started. While many people are afraid to get started in real estate because they think they need a great deal of money, you can actually get started by using the money of others. You can actually use other people’s money to start investing in real estate. There are very few other ventures that will allow you to invest and reap returns with the money of other people.An Everlasting Commodity
Real estate is a commodity that is never going to go away. As long as the earth exists there is going to be property that will be bought and sold. This is one thing that makes this such a great industry to be involved in. You never have to worry about there being a lack of real estate. While some commodities may run out, you will never have to worry about that happening in the realm of real estate, which makes it a very safe industry to start investing and working in.A Job for Everyone
While the real estate industry is competitive, like all industries, there really is room for everyone within this industry. While some companies may start laying off workers because there are too many workers for the amount of work available, this will never happen in real estate. Real estate never stops because it is a cyclical industry that is never ending, which means that there is a place for everyone who wants to get involved. There is no need to worry about losing your job here, since you can guarantee that real estate will continue to be bought and sold.Part-time or Full-time
While many jobs may require that you get involved in them full-time, the real estate industry allows you to be involved either part-time or full-time. This will no doubt depend on the amount of time you have and the needs you have as well. When you are first getting started, you may want to start out part-time to get the feel of the industry and on your feet, and later you may want to go full-time. Other people enjoy just keeping real estate as their part-time job and they use it almost as a hobby or second income. You can make this industry your full-time or part-time job, and either way you are sure to earn money.Anyone Can Do It!
Although many people seem to have the idea that working in the real estate industry take a brain like a genius and a great deal of education, this is not true. The education required is actually minimal, and it is simple enough that anyone can get involved in this industry. There will be not complex math or financial skills involved, so there is not need to worry that it is too complicated for you. If you have the motivation and you want to make money, this is an industry that will allow you to do so.You Don’t Have to Do it All Yourself
There are many different processes that occur when you are working in real estate, and there are actually many different professionals involved, which may make you think that it is a complicated process. Actually, you can build a team of professionals to save yourself from having to do all of the work. Once you have a great team in place, you will be able to streamline the process until everything is a completely automated process that will run smoothly. With a great real estate team in place, you will be able to do more deals with less effort, which will help you to earn more money.If you have been considering the real estate industry, there is no need for you to hold back any longer. This is an industry that you can be successful in if you are motivated. No need for years of education, or even a great deal of money to get you started. With minimal education and money, you can get started in the real estate industry and be on your way to making money. Why not get started today and join the best industry that there is!
Because real estate prices have dropped quite a bit, the potential commissions that real estate agents and brokers could earn have also dropped. But the drop in commissions can be more than offset by the amount of properties that can be sold. And getting quality real estate leads is one of the keys to making this a reality for real estate professionals. This is because there are so many more properties on the market now than there were before the bubble burst.The rise in the number of homeowners who are underwater on their mortgages has increased so much that a very large number of them have decided that they cannot afford to stay in their homes. They would rather sell their home and buy a comparable home for a much lower price, and take the loss so that they can improve their cash flow situation by having a lower mortgage payment each month. And since there is no shortage of properties to buy, these people had no problem finding a suitable home for a good price.And another result of the rise in available properties is that more and more people are becoming first-time homeowners. Since prices on homes are falling, more and more people are able to afford a home for the same amount they are currently paying in rent. So the logical choice for these people is to buy a house rather than continuing to rent.These factors all lead to one thing – a higher need for real estate agents to help the buying and selling of all of these properties. Therefore, even though prices have fallen, the quantity of available properties, buyers, and sellers has raised which more than makes up for the lower prices in terms of how much a given real estate agent could make in the current real estate market. And as we all know, the more clients a real estate agent has, the more properties they’ll sell and the more money they’ll make.The problem comes in when a real estate agent has already gone through their current client list. The best way for them to get more clients is to somehow obtain more real estate leads. Not only do they need more leads, they need high quality leads if they are going to be successful in converting a high number of them into clients who actually follow through on buying and/or selling one or more properties.So how can you get more real estate leads? There are of course many different ways. These include buying them from an agency that offers them, advertising, subscribing to lead generation websites, developing and keeping current your own real estate website that draws potentialclients to it, and best of all by getting them through your own network. There are undoubtedly other ways of generating real estate leads as well, but these are the most common methods – all of which have proven to work to a certain degree.One of the easiest ways to get real estate leads is by purchasing them. There are companies whose sole purpose is to find people who want to buy or sell a property. They then sell this information to people who are willing to pay for it. So if you are a real estate agent looking for real estate leads and either don’t have the time to find your own, or simply don’t want to, then this may be a good option for you.There are two different major ways to do this. You can purchase the real estate leads from a company as a set of data that you will get in the form of a list or spreadsheet. Then you will need to start sifting through them and using the data available to qualify and categorize them yourself. And after that, it’s time to start making calls to find out they are valid leads or not.The other way of purchasing real estate leads is by subscribing to a real estate lead generator website that will send you much smaller lists of leads on a regular basis. This can be nice because the information is likely to be much more current than buying a single very large list of leads. But this also means that there are fewer to work with so it doesn’t give you as much freedom in terms of choosing who to contact first.Purchasing real estate leads or subscribing to a lead generation website can also be expensive. This can be a very bad thing since the whole intent of buying leads is to find clients, sell properties, and make commissions, if the leads that you buy don’t turn into commissions. In that case, not only did you not sell any properties (or many properties), but you wasted money on worthless information, and you wasted time contacting worthless leads when you could have been working on finding good real estate leads instead.Another way to generate real estate leads is by advertising. If you are a real estate agent, broker, or business person, advertising your services may be a good way to generate real estate leads. This type of lead generation is great because rather than you doing the work to find people who want to buy or sell a property, the tables are turned and they come looking for you instead.In addition to having people try to find you instead of you trying to find them, there is another benefit to advertising to generate real estate leads. The people who are trying to find you are already definitely interested in buying or selling a property. This means that you don’t have to worry about whether they are going to turn out to be qualified leads or not, because they definitely will be.A similar way to generate real estate leads by advertising which can be even more effective than simply advertising on a billboard or in the paper is by setting up your own real estate website. Websites are surprisingly inexpensive to have hosted, and having one developed for you doesn’t have to be expensive either. And if you learn the basics of website development, you’ll be able to maintain it by yourself after it’s been set up so that you can always keep it current.The reasons to keep your website current cannot be understated. First, you have to keep it updated with the properties you are trying to sell so that the people who visit your website will have something to look at – and since this list of properties will be changing frequently as your client list grows and changes, you’ll need to change your website often to incorporate the new properties and eliminate the ones that are no longer available.A second reason for keeping your website updated on a regular basis your page rank will grow higher. Search engines use a number of factors to determine how relevant they are to certain keywords, and where to display them in a list of search results. And one of the biggest things that moves a website toward the top of the list is it’s page rank, which is greatly affected by how active and how current the website is. So the more often you update your website, the higher its page rank will be, the higher it’ll show up in search results related to real estate keywords, and the more visitors you’ll get to your site.Once you get visitors to your site, you’ll be getting the exposure you want to potential clients for free. They can stay on your site for as long as they want to and look at as few or as many properties as they want to. And you don’t have to do anything in order to help them. In fact there could be thousands of people all on your website at the same time. That is something that you would not likely ever have the opportunity to do in person. This phenomenon is what is known as leverage, and leverage is what can turn a small business into a fortune 500 business in short order when managed correctly.The best way to do real estate lead generation also happens to be one of the most difficult – at least in the beginning. The method of finding leads is by building a very large network, and using it. This is one of the best ways to get leads because it is one of the most surprisingly effective ways. But unfortunately, it’s also one of the more difficult ways to start, and takes a while to yield significant results.The first thing you’ll need to do is to start building your network. And it’s not that you just need to start building it, you need to intentionally focus on building your network each end every day, no matter where you are or who you’re talking to. This is because for most people, networking does not come naturally.If you are like most people, you are probably somewhat shy and don’t make it a point to intentionally meet and talk to new people on a regular basis. But if you want to build a network, you’ll have to do exactly that. This is something that can come as a challenge to say the least, both emotionally and technically, but it is well worth the effort in the long run.It can be emotionally difficult because a large part of building a large network is dealing with rejection. And if you want to build a large network quickly, you’ll have to deal with a lot of rejection each and every day. Too many people, being rejected is taken personally and it ends up wearing them down so that they eventually give up before they gain the benefits that building a large network provides. But if you can learn how to not take rejection personally, you’ll succeed where so many others have given up and failed as a result.And networking to generate real estate leads can be done almost anywhere. When you need to put some gas in your car, park on the other side of the pump from someone who’s already there and try to strike up a conversation where you’ll be able to tell them that you’re in the real estate business and can help them or anyone else they know who may be looking to buy or sell. And if you’re really serious about it, you may want to only get $10 or some other small amount of gas at a time so that you’ll need to go to the gas station more often and have more opportunities to network.You can also build your network by meeting new people at any other place. You could talk to someone at the grocery store, library, church, waiting in line at the bank, or anywhere you are around other people for more than a few minutes at a time and starting a conversation wouldn’t be too awkward. It can be done anywhere, with just about anyone, at almost any time. And the more dedicated you are to it, the faster you’ll be able to grow your network and the better off you’ll be in the long run.Some of the best ways to network are by talking to the people you already know. These are people who are already in your network, and you can use them to help you grow your network even larger. The most obvious way is to simply ask them if they are interested in buying or selling a property in the near future, and to keep you in mind if they are.But another way to help you grow your network is to ask them who they know that may be interested in buying or selling a property. You are basically asking them for real estate leads using different words. You could ask them for the names and numbers of people who they know who may be interested in buying or selling a property, or you could ask them to give your contact information to the people they have in mind when you ask them that question.It’s a great idea to have business cards with your contact information made up when you’re networking. That way you won’t have to rely on people’s memories which are definitely not the most reliable things when compared to something they can simply read from a card. Cards on the other hand make it so that the person you are giving your contact information to doesn’t have to rely on their memory, and it puts forth a more professional image as well which can only benefit you.Real estate values have taken a dive and one of the results has led to there being many, many more properties on the market now compared to before the economy took a dive in 2008. This means that even though the prices are lower, the higher quantity of properties on the market make it possible to buy and sell more of them and make more money in commissions as a result which will more than make up for the decreased individual property values.I order to sell more properties you must have more clients. And to get more clients, you need to have more real estate leads. These real estate leads can be generated in a variety of different ways, all of which can be useful to real estate professionals. Having reliable leads will definitely result in more clients, more sales, and more money made in commissions. Purchasing them, advertising for them, or getting them from your network is all great ways go get leads that all have their own strengths and weaknesses. Pick the one that will work best for you, and you’ll be on your way to making more money through real estate in less time that you think.
Investing in real estate is as advantageous and as attractive as investing in the stock market. I would say it has three times more prospects of making money than any other business. But, But, But… since, it is equally guided by the market forces; you cannot undermine the constant risks involved in the real estate. Let me begin discussing with you the advantages of real estate investments. I found the advantages as most suited and really practical.AdvantagesReal Estate Investments are Less RiskyAs compared to other investments, less of misadventure is involved in a real estate property. I will not get away from the fact that just like any investment you make; you have the risk of losing it. Real estate investments are traditionally considered a stable and rich gainer, provided if one takes it seriously and with full sagacity. The reasons for the real estate investments becoming less risky adventure primarily relate to various socio-economic factors, location, market behavior, the population density of an area; mortgage interest rate stability; good history of land appreciation, less of inflation and many more. As a rule of thumb, if you have a geographical area where there are plenty of resources available and low stable mortgage rates, you have good reason for investing in the real estate market of such a region. On the contrary, if you have the condo in a place, which is burgeoning under the high inflation, it is far-fetched to even think of investing in its real estate market.No Need for Huge Starting CapitalA real estate property in Canada can be procured for an initial amount as low as $8,000 to $ 15,000, and the remaining amount can be taken on holding the property as security. This is what you call High Ratio Financing. If you don’t have the idea as to how it works, then let me explain you with the help of an example. Remember that saying… Examples are better than percepts!Supposing, you buy a condo worth $200,000, then you have to just pay the initial capital amount say 10% of $200,000. The remaining amount (which is 90%) can be financed, against your condo. It means that in a High Ratio financing, the ratio between the debt (here in the example it is 90% Mortgage) and the equity (here in the example it is 10% down payment) is very high. It is also important to calculate high ratio mortgage insurance with the help of Canada Mortgage and Housing Corporation (CMHC). If needed, you can also purchase the condo on 100% mortgage price.Honing Investment SkillsA real estate investment, especially when you buy a condo for yourself, will be a pleasurable learning experience. It gives you the opportunity to learn and when I went ahead with my first real estate property, I was totally a dump man. Ask me now, and I can tell you everything, from A to Z. Necessity is the mother of all inventions. I had the necessity to buy the property and so I tried with it, and I was successful. I acquired all the knowledge and skills through experience of selling and purchasing the residential property. Thanks to my job. It gave me the experience to become an investor.Not a time taking AdventureReal estate investment will not take out all your energies, until you are prepared and foresighted to take the adventure in full swing. You can save hell lot of time, if you are vigilant enough to know the techniques of making a judicious investment in the right time and when there are good market conditions prevailing at that point of time.You should be prepared to time yourself. Take some time out, and do market research. Initiate small adventures that involve negotiating real estate deals, buying a property, managing it and then selling it off. Calculate the time invested in your real estate negotiation. If the time was less than the optimum time, you have done it right. And if you end up investing more time, then you need to work it out again, and make some real correction for consummating next deals. You have various ways and methodologies, called the Real Estate Strategies that can make it happen for you in the right manner.Leverage is the Right WayThe concept of leverage in real estate is not a new one. It implies investing a part of your money and borrowing the rest from other sources, like banks, investment companies, finance companies, or other people’s money (OPM). There have been many instances where people have become rich by practically applying OPM Leverage Principal. As I had discussed under the sub head – No Need for Huge Starting Capital, the high ratio financing scheme gives an opportunity of no risk to the lenders, as the property becomes the security. Moreover, in case the lender is interested in selling the property, the net proceeds resulting from the sale of the property should comfortably cover the mortgage amount.Now consider a situation, where the lender leverages the property at too high ratio debt say 98% or even more, and all of the sudden the market shows a down turn, then both the investor as well as the lender. Hence, greater is the mortgage debt, more is the lender’s risk, and it is therefore necessary that lender pays higher interest rates. The only way out to ease the risk from lender’s head is to get the mortgage insured. Two companies authorized to insure your high-ratio mortgage debts are CMHC (www.cmhc-schl.gc.ca), and GE mortgage Insurance Canada (gemortgage.ca).Letme explain you with the help of an example… supposing, you are buying a real estate property worth $ 200,000 at three mortgages, with the first one of $100,000, the second of $75,000 and the third one of $25,000. Possible percentage of interest rates charged can be 3%, 5% and 7%. The last mortgage amount of $25,000 will be accounted, as riskiest; as it would relatively be the last mortgage that you will pay when you finally make a selling deal.On the contrary, if the first mortgage representing almost 90% of your property price is insured against getting default or as high ratio mortgage, then in the above example, the basic interest rate would be 3%.Let me explain you the leveraging concept by taking another example.Supposing, you are buying a real estate property worth $200,000, and made down payment of 10%, equitable to $20,000, while financed the rest amount of $1,80,000. Over the year’s time, the value of your property appreciates by 10%. In this case, what would be the total return that you’d incur on your down payment of $20,000? It would be 200%. Yes 200%. Putting in simpler words, the down payment of $20,000 made by you has an appreciation of 10% over it, i.e. (10% increase of original home price of $ 200,000), 200% return on your down payment investment of $20,000.On the contrary if you invest all the money in buying the property of $200,000, and in wake of appreciation of 10% over the year ($20,0000 would then be accrued to as 20%.Synonymous with leveraging is pyramiding, where you borrow on the appreciated value of your existing property. Pyramiding applies the principal of leverage that enables you to purchase even more properties. This appreciated value over the real estate property in some selected areas results in accumulation of rich financial virtues.Real Estate AppreciationAn appreciation is an average increase in the property value over original capital investment, taking place over a period. There are some neglected real estate properties that have an appreciation below the average mark, whereas, some of the properties located in maintained geographical areas, showing high demand, have an above average appreciation. In such centrally located and high demand areas, the average appreciation can reach up to 25% in a year. I will discuss appreciation in the chapter on real estate cycles. For now, for general understanding, appreciation is what goes up.You Make Your EquityAs you gradually pay your mortgage debts, you are creating your equity. In other words, you would be reaching to original house price on which you have no debt. Your equity is absolutely free of percentage increase in appreciation. From the investor’s perspective, in real estate market, equity is the amount that is free of debt and it is the amount that an investor holds. When you sale your property, then the net money you get, after paying all the commissions and closing costs, becomes your equity. Lenders don’t want to take risk by allowing a loan on over 90% of equity. Therefore, in this manner, the lenders take the safety measures in wake of their loan being defaulted.The Federal Bankruptcy act says that all the first mortgages of over 75% of the appraised or purchase value must be covered under high-ratio insurance schemes. However, there are certain conditions, wherein, CMHC offers the purchasers of real estate property qualifying the insurance, a mortgage of up to 100% of purchase price over your principal house value. In the wake of an event where borrowers want more money from the lenders, they would ideally settle for second and the third mortgages.Low InflationInflation is the rise in the prices of the products, commodities and services, or putting it another way, it is the decrease in your capacity to buy or hire the services. Supposing, a commodity was worth $10 a decade back, will now cost $ 100 as the result of inflation. For people who have fixed salaries feel the real brunt of the dollar, as the inflation rises. In Canada, the inflation rate varies and it varies every year. There was a time when Canada had a double-digit, but it was controlled to single digit, after the regulation of policy.If we analyze closely, the land appreciation value for the residential real estate is 4% to 5% higher than inflation rate. Therefore, when you invest in real estate, then you are paying mortgage debts in high dollar value. Now as you are getting more, salary to pay less amount than the amount that you had paid in the original mortgage.Tax ExemptionsYou get various tax exemptions on your principal and investment income property. The tax exemptions available in real estate property investment are more than available in any other investment. In other investments, you lose terribly on the investments in your bank in the form of inflation and high taxes therein, but in real estate; you don’t actually have such hindrances.Various tax exemptions available are:
•The interest receivable from your bank account, term deposit or guaranteed Investment Certificate (GIC) is completely taxable as income. A little math here will do the magic work for you. Supposing, if you get an interest of 8% on the deposit, and the on going inflation rate is 5%, the Real Return Rate will come out to be settled at 2%.
•You get completely tax-free capital gain on principal amount of your residential real estate property.
•You have the opportunity to ward off principal amount of your residential real estate property against the home expenses incurred by you.
•You can easily ward off the property depreciation against your income.
•You can cut the expenses incurred in real estate property investment through your income
•Tax rate reduced to approx. 50% of the capital gain.
•And many moreNet Positive and High Income is GeneratedIf taken in right direction and played seriously, a real estate investment can be your virtue making endeavor now and in times to come. You will not only be having additional assets building in your favor, but also with positive cash flow, your real estate property value will increase automatically.High Return on Investments (ROIs)Real estate investment gives you potentially high ROIs before and after the taxes levied on your income. In fact, investing in real estate gives you high ROIs after the taxes.Demand for the Real Estate IncreasesAs a natural instance, when the population of a region increases, the total usable land decreases, and this provides the impetus for high real estate prices. There are many communities that can or cannot have growth and development regulations, thereby, resulting in limited land available for use. Therefore, the real estate prices of the area shoot up. Remember housing is the necessity of an individual and therefore it is much in demand than any other single commodity taken. Furthermore, there are people who purchase additional houses for their recreation, recluse or as a past time. This in turn increases the demand for land.
Have you heard of a real estate investing program before? If you are looking into becoming a real estate investor, you may have come across real estate investing programs available both locally and online. Although real estate investing programs are a great resource for all hopeful investors, you may be wondering whether or not it would really be worth your time and money to take a course. To find the answer to your question, you are advised to examine the materials that most real estate investing programs cover.Before examining what you may learn when taking a real estate investing program, it is important that you remember variance. Not all real estate investing programs are the same. Programs are designed for different levels investors and they are offered for different lengths of time. These factors may determine exactly what is taught in a real estate investing course. However, with that in mind, there are many common points that are covered in most real estate investing programs.Many real estate investing programs introduce their students to real estate investing by providing background information on exactly what it is. Although you may already have a good idea what real estate investing is and what it is all about, this information may still prove useful to you. Unfortunately, many real estate investors get so wrapped up in making money that they often forget what real estate investing is all about. If you are relatively unfamiliar with real estate inventing, a real estate investing program can help to provide you with the information you need. If you are already familiar with real estate investing, the information learned can be used to help refresh your memory.It is also common for a real estate investing program to cover investing in general, as well as apply it to real estate. Information on what properties you should target as a real estate investor, like properties that are in foreclosure or properties that are considered fixer uppers, may also be outlined. Detailed information on each of these properties, like what they are, as well as what to look for with them may be outlined as well.Since a big part of real estate investing is being able to do something with the properties that you purchase, a real estate investing class should also cover this. For instance, many real estate investors fix up the properties they purchased and either try to resell them for a profit or become a landlord by renting out the property to tenants. A real estate investing program should give you information on each method, as well as tips on how to make each method work.Perhaps, the most important thing that you could learn by taking a real estate investing course is what you shouldn’t do. This information is important as it may prevent you from making many costly mistakes. Although many real estate investing programs are targeted towards beginners, there are some courses that are designed for more advanced or experienced investors. No matter what level you are currently at, you are advised to give a real estate investing program a serious look, as it may be worth your time and money, in more ways than one.