Andrew Vaughey Beginners Guide

Author: Razho Litzodo

In today’s financial climate, real estate continues to be a strong investment in many areas. When investing in real estate, they say that the three most important things to consider are location, location and location.

As mentioned above, location is an important factor in buying real estate, so make sure that you do your research first.

For real estate agents, the key to success is to mail to the same “farming” area over and over to get your name in front of potential clients enough so that they remember you when it is time to list or buy a home. Summarily, effective real estate marketing technique is the foundation of a good real estate marketing system, which is key to your short, intermediate and long term success. These real estate marketing ideas, anchored by a good real estate marketing listing system, can help supercharge your business and help you achieve the success you deserve.

Here’s an example of a real estate marketing technique that every agent and his and her uncle uses: “Offer a No Cost Obligation Competitive Marketing Analysis (CMA) to attract consumers. A real estate agent resume is made up of several marketing pieces – all of which are designed to attract new clients. A good real estate marketing flyer will also be attractively designed, neat and devoid of clutter.

A real estate post card marketing campaign will enable you to frequently and inexpensively market Real Estate Postcards to the masses, and as you know the more frequent your contacts with prospects the better your results will be. Most real estate agents stick with what they know and simply print up the details and send them around by post. Select a a series of real estate post cards to send to the owners in the targeted neighborhood(s).

Buyers and sellers need outstanding real estate agents to help them through the process of buying and selling a home. New college grads and other sales professionals seeking a job in the commercial real estate industry should do a thorough job of researching how good their prospective employers’ training program really is. The prospective commercial real estate professional should interview a couple of newer employees at the firm to find out how their training has gone so far.

Author: Joel Teo

Have you ever wondered why some real estate investors fail to meet their monthly bank instalments for their real estate investment loans or why their once stellar real estate investment has gone sour? This article will cover two critical external factors attributable to Real Estate Investment Loans that can affect the viability of your Real Estate Investment.

1.Interest Rates
One of the key advantages of Real Estate Investment over other types of investing is the ready access of information available through the traditional print media and the internet. If you do not know much about macro-economics, the first basic bit of economics that you can learn relating to your Real Estate Investment Loan, is the effect of an interest rate rise and whether there is going to be a rise and why and when. A rising interest rate may eat into your monthly cashflow and erode your earnings so it would be wise to spend some time thinking about the effect of a change in the interest rate on your current investment situation.

When choosing a Real Estate Investment Loan, you want to have an eye on current interest rates, future interest rates and the penalty that you might have to pay should you want to refinance your loan later to take advantage of a subsequently lower interest rate. So an obvious thing to do is to get a fixed interest rate, if you think that the interest rates are going to be higher in the next few months. The way to analyze this is to spend some time reading the business part of the newspapers to consider how monetary policy in the Federal Reserve is going to be in the next few months. This explains why some financial institutions and large property developers hire former Federal Reserve executives to tap on their expertise in understanding Federal Reserve Policy.

Another related interest rate investment strategy pertaining to Real Estate Investment Loans is to buy the property ?subject to the existing mortgage” if the mortgage was locked in at a lower interest rate than the prevailing market rate. This particular strategy works well in a rising interest rate situation. Remember that a slight percentage increase may translate into a large jump in the amount of interest that you are paying so it would be wise to do your maths and get a friend to double check it before you leap into a deal.

2.Rental Yields
The most common indicator and thing that people would know about rental yield if you ask them is the Return on Investment (ROI). This is the annual rental as a percentage of the total cost of the property. So for example if I had paid $100,000 for the property and I recoup $10,000 per annum, my ROI would be 10%. Note that as a quick rule of thumb this also means that (excluding interest), you would fully pay up your property in ten years if you apply the full rental proceeds to servicing your real estate investment loan.

However, ROI is not the end all and be all of the analysis, another consideration when analyzing Rental Yield is not only the current or past rental yields but the future rental yields. Thus in order to do future projections, we need to study the property cycle of the target country and examine economic factors which may affect supply and demand of rental property in the area.

For example, let’s say that we deem a particular Real Estate Investment viable this year for the purposes of cash flow and get a Real Estate Investment Loan. But what the you might have not considered is that you bought the property at a high in the property cycle and rental demand might go back to normal levels thereafter, rendering your so called Real Estate Investment in negative cash flow territory. So we can observe that you need to learn about the potential downside of your investment and do your sums carefully before you embark on getting your Real Estate Investment Loan.

Author: Edward Godshalk

There are many advantages and disadvantages of investing in real estate one of the advantage of investing in real estate is, real estate is an investment that can give you income for the rest of your life. If you buy properties and rent the properties out it can give you life long income. One disadvantage of investing in real estate is the cost it takes to maintain or fix up a property. Many times when you think you’re done with a property something can break or needs to be replaced. Another critical disadvantage is certainly the risk of losing your hard-earned money due to bad information and wrong investment. Below are some points that you should consider before you begin to invest in real estate that could decide if you succeed or fail.

1. The first thing you should consider when investing in real estate is can you afford it? Real estate investing is an expensive thing to begin to do and you need to take a look at your budget. To invest in real estate is a big commitment and you are going to have to know if you are going to be able to afford it before you begin.

2. If you are buying the estate solely for the purpose of reselling it in the future it is very important that you do a lot of research on the estate. You need to find out how much of an appreciation the land goes through and also calculate which areas are going to bring you the best profit. This is important because you do not want to go out and buy an estate on land that is not in demand.

3. The next most important point to consider before investing in real estate is to choose a good real estate software or tool. A good real estate investment software:

- One that meets your criteria for what you want to do. Whether you are interested in acquiring and managing rental property, investing in a real estate ventures or buying property to flip your online search should be narrowed down to the specifics to eliminate software you are not interested in pursuing.

- Has a website that is easy to navigate and have the answers you need to your solution. If the real estate software vendor provides testimonials from previous users and customers take advantage by contacting them if possible to find out first hand what there evaluation of the software mat be.

- Provide you the unique competitive advantage over the others. Like the ability to geographically and statistically pinpoint the exact property that will create a high appreciation investment opportunity accurately.

Author: Joel Teo

Retail real estate investment property is probably one of the easiest type of property to understand when considering commercial real estate investment. Anyone you ask would tell you that the shop space with the best human traffic would fetch the highest rental. This article will expand on that basic idea and explain why this statement is true and how you can apply it to your property search criteria to find a good retail real estate investment.

Before we go into the three reasons why human traffic flow is important, we want to frame this concept in a larger picture. Most people when they go to view a shop space for real estate investment purposes, usually think about what they observe but fail to appreciate the impact of zoning and development on human traffic. Spend some time talking to the real estate agent and learn all you can about the community, crime, zoning laws, highway movements and everything you can learn about the area that your retail store is going to be. You would have gotten a bargain if you purchased a zone that was slated to be redeveloped by the state as you would see an increase in rental returns and property pricing of your property.

Now that we have covered the broad picture of human traffic, the following will list three important reasons why human traffic or the lack thereof is very important when choosing a retail real estate to invest in.

Firstly, retail commercial property include shops, retail malls, short retail strips. As mentioned, places with good human traffic flow, mean more prospective customers and thus higher rental returns. But it depends once again on the type of tenants that you have. If your tenant mix is made up of convenience stores, and lots of office workers go past as opposed to residents, then the rental may not reflect such human traffic flow. Thus while the general rule that the more human traffic the better the rental, qualified human traffic is even better. Thus spending some time to scout around the neighbourhood is always better than going to the neighbourhood blindly.

Secondly, commercial prices of buildings and property is directly proportional the rental income. Thus in addition to present human traffic, as mentioned earlier you might want to consider new developments in the area and their impact on your rental prospects. If for instance a new shopping mall is opening around your building and your shop space is on the ground floor, then you will realise that you might be getting a whole lot more for your property in terms of value, or the developer might want to purchase your property at a price higher than what you purchased it for.

Thirdly, commercial real estate that enjoys good human traffic will increase the ability of you being able to lease out the place. Have you ever noticed that some places are bustling with business activity. Choose a retail property in such a place and you will be able to have tenants coming around to ask to rent your property. Banks know that a good tenancy would mean a higher chance on your part to pay their interest so would be naturally more interested. Thus it can be said that high rental occupancy ratios also leads to a perception of the banks of greater credit worthiness on your part.

In conclusion, human traffic flow is one of the key things and if not the most important factor to consider when you are thinking of purchasing a retail rental property. Spending some time to explore the neighbourhood at different times of the day would help confirm whether the real estate agent is pulling a fast one on you in terms of human traffic flow. Take your time to analyze the real estate in your area and then take massive action to generate the returns that you want to get today.