Many variables come into play in speeding the growth of your real estate investment business. One of the most important is the availability and use of good financing sources. Another is the awareness and employment of available financial services. A third is creative application of the resources found in investment services.
Using these tools allows you to make large and rapid strides in developing your business. It takes some work and some practice, but you can master them fully if you concentrate on it. Just keep in mind that these areas are worth the trouble to learn, because they can give a great return on your effort.
The ability to secure financing for an investment when you need it is critical to achieving success. This is true on an individual project basis, and is especially true in a long-term investment business plan. A successful real estate investor attends to the financing aspect of his or her business in the early stages of its development.
For a listing and ranking of the best real estate and related financing sources, go to Top 10 Financing Sources.
Many times a person will start out in real estate investment by buying a single-family home. A single-family home generally looks like the safest bet, offering fulfillment of the basic need for housing. It also offers anticipated appreciation in value, low risk of loss on investment, relative ease to sell and an active buying and selling market facilitated by brokerage firms.
Because of a usually aggressive and competitive mortgage loan market, it is the easiest and most straightforward type of real estate to finance. Because single-family home loans are backed by good collateral, the percent of loan to value available is high compared to other types of loans.
Of all real estate investment choices, a single-family home provides the best investment selection. This is true for the beginning real estate investor and for the experienced investor who appreciates the positive aspects of a single-family homes as an investment.
We have compiled a step-by-step outline for getting started as a single-family home investor. This outline will help you with the information and tools you will need. You may see this at Single-Family Home Investment.
There are several reasons to keep your mind open to a property trade, and to be ready to trade when circumstances dictate. Many real estate investors do not understand the the basic facts of trading. They have never considered a trade, much less done one. If you will take the time to learn about trading, and learn when trading might be a great solution to a problem, you will be far ahead of many real estate investors.
Sometimes you find yourself with a real estate investment that just won’t sell at a price you can accept. For whatever reasons, the property you want to sell is just not attracting interested buyers. Maybe it is not attracting buyers because of its location, or because it is the highest-priced house in a neighborhood, or because it is has special-use improvements, or because financing the property offers challenges.
Whatever the reasons for the slowness in selling, the difficulty may be overcome in a trade where both parties to the trade get something they want. It is possible that the other party to the trade is dealing with issues of slowness in sale or lack of buyer interest just as you are. Either or both partners to a proposed trade may have tax considerations that point them in the direction of a trade.
In any case, you will be better off if you have the basic ability to evaluate and execute a trade. You may, through a trade, solve the problem of owning a slow-moving property. You may accomplish more than that. You may find value in the property you trade for that did not exist for the previous owner. When you find yourself in such a situation, It is time to open your mind to a trade. See Property Trading Facts.
Large profits can be made in land investment. A long view and patience are the keys to success. There are many stories of persons who made great fortunes by investing in land and holding that land for long periods of time. Bob Hope, who became one of Hollywood’s richest entertainers before his death, supposedly gave the advice, “Buy land, and never sell.”
Most land investments are not income producers. The investments are made almost wholly with long-term capital gains objectives, unless the land is bought specifically for development. Because of the lack of income, successful long-term land investors need separate income-producing businesses or separate sources of income. They need sources for land investment capital in order to build their businesses.
It is not uncommon to see a real estate investor or a real estate investment company operating in several real estate areas. Some have property development activities, apartment ownership or property management operations. These functions all produce profit and cash flow in the short-term. The profit and cash flow in the short term can provide a stable base for long-term land investment activities and long-term growth.
For one considering a long-term land investment program, it is essential to have a souce of funds to pay the monthly bills. Above and beyond the monthly bills, there must enough cash flow to fund land acquisitions on a continuing basis. It is possible for a person without substantial assets to start and build a successful land investment program. To do so, however, It is absolutely essential that income sources be planned and assured so that growth objectives of the land investment activities can be met. See Land Investment Pointers for more discussion.
Sometimes a successful single-family home investor decides it is time to go commercial. That person usually finds that commercial real estate investment is a different ballgame from single-family home investment.
Different factors come into play for commercial investment success than in single-family home investment. The sellers are a different type from single-family home sellers, with different styles and objectives. Also, commercial brokers are a different breed from residential brokers and use procedures that allow them to operate more effectively with their commercia buyers and sellers and lessors and lessees.
Let’s understand what we mean when we refer to commercial real estate. The field is usually divided into four categories. They are office, retail, industrial and land. The factors that assign a particular property to one category or another are generally location, traffic criteria, type of improvements, utilities provided and zoning or other restrictions on use.
The division by categories helps buyers and sellers, lessors and lessees and brokers and agents get together more efficiently for deals. It is part of the lore that needs to be learned when entering a new area. The technical aspects of commercial property investment is certainly knowledge that is required to operate in the field. However, the customs, protocol and procedures are also important, and should be on one’s agenda for learning and practicing. To master commercial property investment, one needs to become comfortable with all aspects which determine success.
There are some hurdles to be cleared for a single-family home investor to become successful at commercial real estate. There is no doubt it is worth the trouble, because of the new opportunities available in the commercial field. As is true with many things, nothing ventured, nothing gained. So why not give it a try? See Buying Commercial Property for a discussion.
So you have done several successful buy-improve-sell projects with single-family homes. Now step up your game with a multifamily project. If you feel ready to take on a new level of involvement in your real estate investment business, then you are ready for apartments.
To get started in the apartment investment business, one should first understand the keys to making it a success. The six important steps are analyzing the investment opportunity, developing the operational concept, structuring the purchase, organizing the financing, assembling the management and operating personel and articulating the exit strategy and objectives. If all of these areas are addressed then a foundation is laid for a successful project.
There are two ways to get into apartment ownership, by building them or buying them. We will leave development for a different discussion. We will assume that this first project will be the purchase of existing apartments.
Because this is your first apartment project you likely will not be accustomed to working with the keys to success mentioned above. This should not hold you back. You may have some learning and some study ahead. However, there are abundant resources available. Just remember that the learning and study are essential parts of getting into the business and succeeding at it.
Like almost everything in life, you will get out of the apartment investment business what you put into it. Start with a genuine effort to master the fundamentals. Your first project may not be perfect. But if you keep at it, and if you sincerely wish to become competent at it, you surely will. The rewards you will then see from your efforts may become quite significant as your business grows. See Multifamily Housing Investment for more information.
An intelligent and well-planned interior design project can add much value to a home. If successful, it can showcase the best points the home has to offer. The choices and uses of furniture, furnishings, decor, art, and colors can create an effect on a visitor that is strong, memorable and favorable. It may cause the visitor to spread the word among friends and associates after leaving about a fabulous home tour he or she has experienced, because of being so impressed with what was seen.
Some of us have the time, energy, talent and persistence to complete such a project. Some may see such an undertaking as being exciting and fulfilling, a way to express one’s self, a statement of one’s identity. For those of us who like the idea of doing it ourselves, it is a great project which may be completed at one’s chosen speed, with no time limits assigned and no one to measure the progress.
Others of us may just not want to take on such a job. For any of a number of reasons, it may be best for some to hire a professional to plan and execute the project. Hiring an interior designer does not keep a design client from being involved in the the project. It does, however, allow the client to define the amount of time he or she is willing to give to the project and to specify the level of interaction to be maintained with the designer.
A thoughtful interior design project can bring rewards to the homeowner. It may simply provide the enjoyment of living in a more pleasant environment, which may have been the only objective in doing it. Or, if there was a financial aspect to the motivation for doing it, it may be realized. The design work can increase home value and bring about a greater price when a sale of the property is desired. For more information go to Interior Design Guide.
The surest, quickest and highest-return action an owner can take is usually doing a well-planned remodeling project. There are a number of actions that may be taken to improve a home, and most of them offer fairly predictable and generally profitable results.
The home exterior presents high potential returns. Replacing wood siding, soffit and fascia with energy-saving, longer-lived modern material can give a home a new look, lower utility expenses and freedom from the hassle and cost of maintenance. Replacing aluminum single-pane windows with state of the art double-pane windows with gas filler will give a bright new appearance, lower utility costs, better sound insulation and freedom from maintenance. New entry doors offer a great new first impression to visitors, better insulation and improved security to the point where forced entry is no longer a concern to the owner.
The same kinds of gains can be make by improving the home interior. Often the choice of first action is the kitchen, where a total new look and element of pleasantness can be achieved by replacing old appliances and renovating cabinets and countertops. The kitchen can become the favorite room in the home. Other cabinets in the home may be renovated at the same time for a very satisfying result.
See Home Improvement Stategies for more information.
