Real Estate Investing - Ten Myths

Is real estate investing only for the wealthy? Can you buy with no money down? Do you have to know the “right” people? Let’s answer by looking at some of the myths of real estate.

1. Real estate investing is for the wealthy. Money helps, but my first real estate investment was a $3,500 lot - which I sold for a profit two weeks after I bought it. Small deals, partners, low-down deals, or just putting aside $7 per day for a couple years until you have enough money for a downpayment - these are some of the ways to start with a little and invest in real estate.

2. “0 down” isn’t possible. I sold a rental property for $1,000 down because I trusted the buyer to make the payments, and I wanted the 9% interest and higher price. He could have gotten a cash-advance on a credit card for another $30 per month and made it a “0-down” deal. “No money down” means none of YOUR money down, and yes, it happens.

3. “0 down” is the best way. If you don’t invest some of your own money, you’ll have higher payments. You’ll also spend more time finding suitable properties, and pay more for them (generally cooperative sellers want more for their cooperation - I do). There are 0-down deals out there - they just aren’t always worth doing.

3. You need experience. Experience helps, but you get it by investing. Start with common sense, ask how you can lose money, be willing to learn the numbers, and you can start where you are.

4. Some investors have a “knack” for making money. Sort of. More accurately, some just took the time and risk to learn the market and continue their education.

5. You need to know the “right” people. It helps, so start the process. Talk to investors, real estate agents, landlords, etc.

6. You have to be great negotiator. If you learn to run the numbers and make the offers based on them, you can be the worst negotiator and still do okay.

8. You need insider knowledge. Understand one deal, and you are on your way. Read and read more, but the best “insider” knowledge comes from experience.

9. Fixer-uppers are safe. People have the idea that doing the work themselves is the safest way to assure a profit. Not true. Mis-planned “fix and flips” have bankrupted even experienced investors. Most poorly purchased rental properties will only eat a little money every month.

10. The key is lowball offers. The numbers have to work, and you need a plan. You can offer MORE than the market price and make money investing in real estate, if you understand creative financing - and how to do the math.

About the author:

Steve Gillman has invested in real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

The Art of Condo Conversions in the Real Estate Investors Market

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Have you decided to start as a real estate investor? This is your moment and I’m going to tell you how can you do that! It is really easy, whether you buy houses and rehab them or you invest in a condo conversion. Dan Case, a real estate investor in condo conversion, is willing to tell us what a condo conversion is. According to him a condo conversion is an apartment complex. The ones built in the last 5 or 10 years. They kind of have the condominium theme because there’s not a lot of distinction between an apartment complex anymore and a condominium. These condo conversions are a good opportunity and the main reason is the cost. If you start building right now the materials are very expensive. A developer recognizes this thing and it is better for him to buy an existing building. Another good thing about a condo conversion is the place where they are being sold. Typically there is a strong growth market area . The investor doesn’t have to worry about losing tenats as all these are already occupied. There are a couple of things you have to know when you buy tenant occupied. You take over the existing lease. If you don’t like being a landlord then certainly you’ll enjoy pre-construction much better than condo conversion. There’s a lot of work that goes with landlording or management of a property and it’s understandable why many people don’t want to manage tenant’s. When something is converted take into account the renovations. These depend on the age of the building. Dan explained to us that sometimes they just repaint it. In some cases they replace the balconies. In some other cases they add a lake gazebo or a nice picnic place. In fact the developer will redo the landscaping. This renovation doesn’t take into account only the exterior but the interior too. They paint the walls, add new carpets, sometimes new lighting or even new kitchen or bathroom so the conversion seems like a brand new unit. You get something new and what you have to do is to find someone to occupy it. There are also some custom additions and they go up to $ 1,000 standard meaning that you can choose the colour pattern you like, different types of lighting, and other options. On a condo conversion there is typically a 5% reservation fee and this represents 5% of the sale price. Condo conversion one bedroom, one bathroom sell for around $150,000 while two bedroom, two bath is $180-200,000 in the Titusville, FL area. And on a condo conversion you don’t have 12 to 18 month built time. As soon as you get the contract and have the exact sales price you call the inside lender. Most of the condo conversions have an onsite lender. You need to talk to them but also talk to your own personal financing person just to get a comparison. You can buy a home as a primary residence or as an investment property and another as a second home. You may wonder what’s the difference? The difference between the investment loan and the second or the primarily home loan is the payment. Investment loans typically require 10 %. There are a lot of mortgage companies that can do investor loans up to 100% . The difference is the prior interest because is an investment loan. You need the ability to treat it as the second home meaning 15 miles outside your primary residence. When you are buying as a second home you get the best policy and a second home only requires 5% versus 10% on the investment property. You are allowed to have multiple second homes but they don’t have to be within 50 miles one another. For example, Dan has a home in Orlando as a primary residence, one in Orlando as an investment and another in Daytona Beach as a second home. For the new investor the condo conversion is the right thing to do because of the limited amount of money out of pocket and the ability to have a place that you can rent out realistically. Make sure you are in a strong land market regardless so if you are buying a condo conversion or a new construction because you might have to carry a mortgage for certain time before you can sell it .

About the Author

David offers a free E-course on quick start strategies for getting started in real estate investing that is delivered free via email and tele-clinic at: http://www.FreeRealEstateInvestingCourses.com

Charlie Sheen Marries Real Estate Agent Brooke Mueller (Photo) - Post Chronicle

Charlie Sheen Marries Real Estate Agent Brooke Mueller (Photo) - Post Chronicle
Brooke Mueller Marries ‘Two and a Half Men Star’ - Charlie Sheen, star of TV’s “Two and a Half Men,” has married fiancee Brooke Mueller in Beverly Hills, according to media reports. Sheen, 42, is the ex husband of actress Denise Richards. It is his

Your Money: A Real Estate Deal Seen From 2 Sides - New York Times
Their plaintive scribblings painted a picture of first-time buyers chasing the American dream or growing families hungry for more space. The letters dripped with compliments for the property and ended with a plea for mercy (and a signed contract