Real Estate Investing – Strategies to Become a Successful Investor and Create Wealth

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Real estate investing is one the pillars of wealth creation in the world today. The last time I looked at the Forbes list of 400 richest Americans, I could still count over 31 tycoons listed as billionaires.

In the same vein, you have individuals in your city and state who have made their fortune and hold their wealth in property investments.

Why you need to invest

In his essay “Theory of Human Motivation” first published in 1943, Abraham Maslow, father of behavioural psychology observed, that people are motivated to fulfill three basic needs. The three basic human needs are food, shelter and clothing. And many people will try to fulfill these three needs, before any other need.

When you invest in real estate, you add value to your customers in one of the important area of human needs-shelter. You are investing in an evergreen industry.This is why, I believe you should include property investing as part of your wealth-building portfolio.

However before you go out and buy your first property you need to have the right plan of action to succeed. The first thing you have to be aware of is that…

Goals are important.

Your need to know, what you want to accomplish:

  • Are you looking at wealth accumulation within a short time frame (3-7 years)?
  • Are you investing for the Long term (retirement)?
  • Do you want be a Full time investor and derive all your income from your real estate investment?

When you ask yourself these critical questions, you are able to focus and achieve your dreams.

You need to develop critical success traits.

It is important you develop or become aware of the traits, you need to win as a real estate investor. Five main traits are important for success:

  • Competency in your niche, this means you know about the basics, at the minimum and then become excellent in the niche you decide to invest.
  • Control over your emotions. This is important if you are going to stay in the investing arena for the long haul because there will always be difficulties in the real estate market. The difference between a novice and a professional is the ability to ride the eye of the tiger without getting into the belly of the tiger. Being a real estate investor takes guts and you need to have them if you want to become wealthy
  • Comprehension. This means know your market cold. You understand who your customers are, what they are looking for, why they want to deal with you. If you lack these key trait-insight into your market-you are doomed to fail.
  • Consistency. This means you have focus and discipline to, take action daily, weekly until you accomplish your goals.
  • Integrity. You stay true to your principles, because integrity is important in real estate. This means you are trustworthy, to your bankers, investors and tenants.

Strategy vs. tactics

The strategy (what to do) is more important than the tactics (how to do) of real estate investing. Let me explain.

If for instance, you wanted to gain wealth in a very short term then to buy and hold real estate, which is a long-term strategy-will not be the right strategy to achieve your goals. Flipping and wholesaling properties- buying undervalued properties and selling at a higher price to gain profit-may be the best strategy.

Knowing enough vs. Knowing it all

I think it’s important to have an understanding of real estate investing, however you don’t need to know all about real estate investing to start.

You need to one thing that I think is important for an investor… You need know enough about the basics-how to analyse properties, how to get financing, and how to assemble you real estate team together. That is it.

If you wanted to make a full time career as a real estate investor, then you would have to know more. You would have to specialize in a niche.

I am not going to spend many hours learning about short sales, wholesaling and foreclosing investing especially if I am not going be a full time investor. It would be counterproductive for me, when I should spend my time doing what I am best at doing.

Let’s recap, to succeed investing in real estate…

  • You need to understand why you are investing in real estate.
  • You need to develop critical traits for success as a real estate investor.
  • You need to choose the right tactics to match your investing objectives.
  • You need to know enough about what you want achieve

Article Source: http://EzineArticles.com/6054300


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Always Bet on Safe Real Estate Investment Rather Than Quick Investment

Always Bet on Safe Real Estate Investment Rather Than Quick Investment

Financial planning and investment is all about finding out where to invest your money so that you can get the best possible returns. Real estate investment has always been considered as safe because seldom the demand for real estate witnesses a dip. Property investment is the safest and there are strong reasons as to why it is given priority than other forms of investments like mutual funds, bonds, stocks and ETF. You can literally grow your money through property investment with minimum risk.

Investors skittish of stock market investments prefer to invest in the real estate market but there are many who have not yet got over the 2008 downturn. Scars of those days have not yet healed for many and they are not ready to invest just for the sake of property investment. They need strong and logical reason behind this investment; they prefer to wait it out rather than put in all their money hastily.

If you take property investment decisions in haste, chances are high that you will end up with something in your portfolio that would fail to produce the desired ROI. In property investment, only four different routes prevail; however, here we are going to look at only two of the most popular ones.

First: You can go ahead and invest in a rental property

Second: You can buy shares in the REIT or real estate investment trust

Buying the rental property is quite straightforward method wherein you buy a rental property and give it out on rent. However, this type of investment is not for everyone as many fail to juggle their professional lives and at the same time upkeep a property like a landlord. It takes a lot of time and effort to maintain the property you buy unless you are using the services of a management company. You can obviously use the services of a management company but be ready to take a cut in your profits.

On the other hand if you invest in REIT, you don’t have to actually own a property on the ground and go into the landlord-mode. It operates just like a mutual fund and the only difference here is that it is property investment. The trust is a group of investors who make property investment and lets the individual investors buy its shares. The trusts are able to receive tax benefits as they pay a major chunk of their income to their shareholders. You can buy shares on public investments, which implies that your investment is quite liquid. You are ensured of regular dividends.

Two other methods of property investment that are often used by investors include notes and croudfunding portals.

Notes – You will be able to invest in second mortgages, paper notes etc. You can even sell or buy notes just like other real estate invest estates. The best thing is that there are no brokers involved in this.

Crowdfunding Portals – Many people with similar investment interests can come together to fund real estate investments. This is a new form of investments and is being tried out by some.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Why to Consider Investing in Properties

Why to Consider Investing in Properties

There are many avenues in which you can invest your hard earned money, such as stocks, bonds, shares and property. If you are considering your investment options in terms of stocks, bonds and shares it is a good idea to get the advice of a financial advisor. When it comes to property investments, a property investment specialist can recommend properties that suit your requirements. More people are noticing the growing economies for property investment opportunities recently. What is it that makes growing economies so attractive for investors?

There is speculation that the price of properties will rise in 2017 as the population increases. It means that more people will require rentals and purchases of homes so now is a good time to invest in the residential market.

Certain countries have shown much growth over the past couple of decades and consequently they are growing into maturing markets. More commercial buildings are being erected in the town centres which changes the skyline of the cities. The new buildings add to the modernisation of a growing city and gives it a futuristic appeal.

Properties in certain maturing cities offer more space for the equivalent price asked for in other major capital cities. You can get a larger apartment or office space for the same price you would in a first world country. The larger spaces are more attractive to people seeking homes or commercial office space. So if they can get it a lower a price, there could possibly be a bidding war for the right property in the right location.

Another factor contributing to the growth of certain cities is Expo 2020 which is the first world expo that will host 72 countries. It will be the hub for new developments, new ideas and to connect different countries. This will see more jobs being created therefore the demand for property will increase. This demand will increase the price of property investments.

Growing cities have become popular tourist destinations. This peak in interest has caused a rise in tourist numbers and, consequently, a rise in accommodation such as hotels. Beautiful modern buildings are the homes of hotels and these attractive buildings encourage tourists to visit the growing cities.

As the markets mature, more developments are on the rise. The property market is growing and new architectural ideas are being brought to life. Therefore there are quite a number of reasons to consider investing in a growing market.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Considering Buying Income Property? Have A Revenue Strategy

Considering-Buying-Income-Property

Many savvy investors realize how essential real estate investing might be, as a component of one’s overall strategy, etc! Some get involved as partners or investors in larger projects, where they depend on others to make the right decisions. Others, however, prefer to make their own decisions, and invest in smaller projects, where they become responsible for decisions and strategies. Before getting involved in an Income property, one should carefully consider, which strategy, he will follow, in terms of revenue flow, pricing, etc. Before doing anything, an individual should carefully examine a potential property, in terms of the anticipated return on investment. This means when you look at the price paid, what percentage will you receive, based on the revenue flow, minus the continuing expenses (such as mortgage interest, taxes, utilities, insurance, etc). Different people have different perceptions and ideas, in regard to what that percentage should be, but I believe one should aim for a net 6%, to make the project worthwhile. Let’s evaluate four key components.

1. Know your market: Pricing is not merely picking some number out of a hat, and automatically, receiving that total! Rather, one must evaluate what the competition and marketplace/ conditions, indicate as the realistic range. Consider the ramifications of which segment of the range you opt for! Pricing at the upper end might provide more revenue, but there may be certain risks. Pricing too low, might not generate sufficient revenues. Sometimes, the middle range will make sense, but not always!

2. Option One: Pricing at the upper end of market: Wouldn’t it be great if we could simply charge the highest price, and get the most revenue? However, one must realize it might not get the desired results, or if it does, may take longer to achieve. When that happens, a vacancy might exist, so one should always use a percentage (I recommend 75%) of the total revenues one would receive if fully occupied, in determining if one hits that magic 6% return!

3. Option Two: Pricing at the lower end of market: While providing the best chance to optimize occupancy rates, there is the risk of having lower quality tenants, etc. In addition, doing this, may offer the owner, less flexibility, etc. In rental properties I personally own, I often will price in the lower 50%, if I can attract and keep/ maintain, reliable, quality tenants, by doing so. This is also a gamble, but has worked effectively for me, since I have been able to have a far lower turnover rate, than the rest of the market.

4. Option Three: Pricing in the middle: This may be a wise compromise, if done carefully, and wisely. Always keep a keen eye on the market, your expenses, and carefully screen and qualify potential tenants.

All of these pricing strategies have pros and cons, but what’s most important, is for you to clearly identify, which strategy you will pursue, and maintain the discipline to be consistent! Effectively owning, managing and making money, on rental properties, requires discipline, commitment, and paying keen attention!

Article Source: http://EzineArticles.com/9690771


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Memphis Is Growing

There is some perception that Nashville out shines Memphis when it comes to economic clout. However, a closer look at the numbers reveals that perception is not exactly accurate. Of the 25 wealthiest zip codes in Tennessee, Memphis and Shelby County have 11 among the riches. Six of those eleven are completely within Memphis city limits. And that doesn’t include the near by areas of Southaven and Olive Branch, Mississippi.

Germantown is the wealthiest community in Tennessee with a median income of $152,000. Other high income neighborhoods in Memphis are Cordova, Collierville, Arlington, and Eads.

Memphis-is-Growing

Memphis Business is Growing

Most people know that Memphis is a highly popular tourist destination that provides a wide variety of jobs in the tourism industry. However, Memphis jobs are much more diversified and becoming more so. The city is a magnet to small businesses and Fortune 500 companies alike.

The big commercial players include FedEx that started operations in Memphis in 1973 and today makes more than six million shipments every day to more than 220 countries. Auto zone is a leading auto parts retailer with more than 3,400 stores and made Memphis its headquarters back in 1979. International Paper first organized in 1878 and is now the largest paper and forest products company in the world, with operations in more than 40 countries. Also, UPS recently expanded operations.

IKEA is planning to soon open a store in the commercial Wolfchase area at the corner of Germantown and highway 64, not far from I-40. Other areas of Memphis experiencing growth and expansion include Overton Square, the $70 million Highland Row Projects, growth of the University of Memphis and the very recent opening of Bass Pro at the Pyramid. But it doesn’t end with these. There is also the multi hundred million dollar redevelopment of Sears at Crosstown and St. Jude Children’s Hospital is adding on an $800 million expansion. Nike is also putting in a warehouse along with the expansion of Central Station. When you start adding it all together the hundreds of millions quickly begin totaling billions of new projects coming to Memphis.

Job Growth is Real

According to the Commercial Appeal, Memphis has added 22,000 more jobs over the past year and is expected to perform even better as this year continues. The national unemployment rate has reached 5.5% and Memphis is approaching that number with a current unemployment rate of 5.9% – down from 7.3% six months ago.

Memphis works from a broad economic base that includes agriculture, medical, chemicals, machinery, clothing, food products, electronic equipment, pharmaceuticals, cosmetics, among many other medium to small industries.

No wonder that major companies and people from all walks of life are attracted to the Memphis area.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

Strategies to Become a Successful Investor

Successful-Investor

Real estate investing is one the pillars of wealth creation in the world today. The last time I looked at the Forbes list of 400 richest Americans, I could still count over 31 tycoons listed as billionaires.

In the same vein, you have individuals in your city and state who have made their fortune and hold their wealth in property investments.

Why you need to invest

In his essay “Theory of Human Motivation” first published in 1943, Abraham Maslow, father of behavioral psychology observed, that people are motivated to fulfill three basic needs. The three basic human needs are food, shelter and clothing. And many people will try to fulfill these three needs, before any other need.

When you invest in real estate, you add value to your customers in one of the important area of human needs-shelter. You are investing in an evergreen industry.This is why, I believe you should include property investing as part of your wealth-building portfolio.

However before you go out and buy your first property you need to have the right plan of action to succeed. The first thing you have to be aware of is that…

Goals are important.

Your need to know, what you want to accomplish:

Are you looking at wealth accumulation within a short time frame (3-7 years)?
Are you investing for the Long term (retirement)?
Do you want be a Full time investor and derive all your income from your real estate investment?
When you ask yourself these critical questions, you are able to focus and achieve your dreams.

You need to develop critical success traits.

It is important you develop or become aware of the traits, you need to win as a real estate investor. Five main traits are important for success:

  • Competency in your niche, this means you know about the basics, at the minimum and then become excellent in the niche you decide to invest.
  • Control over your emotions. This is important if you are going to stay in the investing arena for the long haul because there will always be difficulties in the real estate market. The difference between a novice and a professional is the ability to ride the eye of the tiger without getting into the belly of the tiger. Being a real estate investor takes guts and you need to have them if you want to become wealthy.
  • Comprehension. This means know your market cold. You understand who your customers are, what they are looking for, why they want to deal with you. If you lack these key trait-insight into your market-you are doomed to fail.
  • Consistency. This means you have focus and discipline to, take action daily, weekly until you accomplish your goals.
  • Integrity. You stay true to your principles, because integrity is important in real estate. This means you are trustworthy, to your bankers, investors and tenants.

Strategy vs. tactics

The strategy (what to do) is more important than the tactics (how to do) of real estate investing. Let me explain.

If for instance, you wanted to gain wealth in a very short term then to buy and hold real estate, which is a long-term strategy-will not be the right strategy to achieve your goals. Flipping and wholesaling properties- buying undervalued properties and selling at a higher price to gain profit-may be the best strategy.

Knowing enough vs. Knowing it all

I think it’s important to have an understanding of real estate investing, however you don’t need to know all about real estate investing to start.

You need to one thing that I think is important for an investor… You need know enough about the basics-how to analyse properties, how to get financing, and how to assemble you real estate team together. That is it.

If you wanted to make a full time career as a real estate investor, then you would have to know more. You would have to specialize in a niche.

I am not going to spend many hours learning about short sales, wholesaling and foreclosing investing especially if I am not going be a full time investor. It would be counterproductive for me, when I should spend my time doing what I am best at doing.

Let’s recap, to succeed investing in real estate…

  • You need to understand why you are investing in real estate.
  • You need to develop critical traits for success as a real estate investor.
  • You need to choose the right tactics to match your investing objectives.
  • You need to know enough about what you want achieve

This is how I have applied myself to real estate investing. Moreover, it has helped me transform my losses to wins and I enjoy the cash flow from my properties,with the knowing I will become financially free.

Article Source: http://EzineArticles.com/6054300


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com

What is Turnkey Real Estate Investing

turnkey-real-estate-investing

This is a simple concept in which the investor buys, rehabilitates, and then resells a property at a profit. This is also known as “flipping” a home. This process usually happens remotely, because the investor remains in his or her own home, sometimes in a locale where flipping doesn’t make sense, and utilizes the Internet to find and invest in opportunities. The goal here is to make the process of investing in real estate as easy as possible, so all the investor has to do is flip a switch or “turn the key.”

Typically, then, you’re purchasing a single-family home, fixing it up, in order to bring it in line with current codes as well as make it more appealing to buyers. Here’s how it works:

  1. A turnkey retailer or company purchases the property.
  2. One or more investors purchase a share in or all of the shares in the house.
  3. The retailer or company “fixes up,” or rehabilitates, the property to make it current and appealing to buyers.
  4. Once the property is rehabbed, it’s put back on the market for resale.
  5. As soon as a sale is closed, the investor gets his or her money back plus whatever profit was earned, according to what share of the investment he or she owned.

If done properly, this can be a very sound investment strategy. You, as the investor, have earn a profit from flipping the home, and you can have as little or as much involvement as you wish. You can be as involved or uninvolved in the flipping process as you desire, helping to oversee the contractors rehabilitating the home or leaving the entire process up to the turnkey retailer.

Why not just buy a house myself and flip/rent it?

You might be thinking you can just eliminate the middleman, the turnkey retailer or company, and do all of the legwork yourself. While many investors do just that and succeed at it, there are some drawbacks. In most cases, you’ll end up undertaking much more work than you would as an investor. Here is what you would have to do if you became a flipper, rather than utilizing a turn-key solution and having the turnkey retailer handle the process for you.

• Finding the property: First, you would have to locate a suitable property, which means knowing which neighborhoods are going to appeal to buyers or tenants.

• Rehabilitating the property: Next, you would have to renovate and rehabilitate the property, making it adhere to current codes and also be an excellent single-family property. This requires proper budgeting and attention to contractors and laborers, something that requires an on-site presence.

• Marketing the property for sale or rent: Once the house is move-in ready, you would have to find a buyer or a paying tenant to move into the location.
Should you decide to rent out the property, you would be entering a whole new dimension. For more information on turn-key real estate investment where you rent instead of resell, check out our outline of that investment strategy.

If this sounds like a lot of work, that’s because it is. With turn-key real estate investing, as little or as much of that work can be taken off your shoulders and put on someone else’s. Let’s look at the advantages of turn-key real estate investment.

The advantages of turn-key real estate investment

In a full-fledged turn-key real estate investment situation, you are an investor, not a flipper or landlord. You’re hiring someone else to manage the property for you, so all you have to do is collect on the profit. Here are some of the primary advantages of turn-key real estate investment.

Does not require your presence locally

With turn-key real estate investment, you acquire single-family properties in remote locations. This allows you the freedom to remain living where you want, while still maintaining a cash flow from a location that has excellent real estate values. You can continue living in your gated community in Florida, for example, where flipping houses might not make sense, while investing in flippable or rentable properties in Seattle or anywhere else that has a strong demand for such properties.

Easy diversification of your investment portfolio

turn-key real estate investment can be a wise move, if done correctly. One aspect of correctly executing a turn-key real estate investment strategy is investing properly in multiple markets, something that is easy to do since it requires little to no time of your own. The benefits of investing in multiple markets is simple: it provides you with protection from an unexpected downturn in an economy. For example, an investment in single-family properties in Seattle might seem like a guaranteed cash flow scenario, but what happens if Boeing announces major layoffs? If that were to happen, home prices would fall and properties would be more difficult to sell, negatively affecting your profit.

Since turn-key real estate investing makes it so easy to have multiple properties, this is a significant advantage of the investment strategy if you do it right. In other words, don’t put all of your eggs in one basket.

You don’t have to be a real estate expert

When you deal with a reputable turn-key real estate retailer or company, that provider knows the real estate markets with much more precision than an outsider would. Sure, you could do some basic research on an area, checking out the local school ratings, crime reports, and price ranges, but a turn-key provider will know all of that and more; they’ll know the heart of an area, such as why people prefer one neighborhood over another.

The disadvantages of turn-key real estate investment

If turn-key real estate investing sounds like a sure-fire way to make money, you should be aware that there are disadvantages to the strategy. First and foremost, you will come across turnkey retailers that try to maximize their own returns at the expense of cutting corners, but beyond that there are other drawbacks.

The “middle man” needs to make money

The turn-key company is a business, and that business needs to make money. This means buying property at a discount and then selling it to you at a higher amount, of “flipping” the property, often for a hefty profit margin. Following that, the turn-key company can make an additional profit by managing the sale or rental of the single-property property for you. One thing to remember about this drawback, though, is that turn-key companies often have a marketing machine running at all times and can find incredible deals in their market, allowing them to give you a great deal even as the company makes its profit.

You gotta trust someone

There are “shady” turn-key companies out there. These companies will encourage an out-of-state investor to buy a bad property in a bad location, meaning more money leaking out of the investor’s pockets than coming in. You have to rely on the turn-key operator’s knowledge, expertise, and credibility to actually make you a good deal. This means you have to be dealing with someone you can truly trust.

Conclusion

There are serious benefits to turn-key real estate investment, and it can definitely be an attractive cash flow strategy. However, there are also drawbacks to take into account before you proceed with any deals. You will need to investigate the turn-key provider and make sure they are both reputable and profitable, and ensure that the cash flow opportunity they are offering you is actually feasible and realistic. turn-key real estate investment is a fantastic way to make money, as long as you are smart about it and take care of your own due diligence throughout the process.


Memphis Buy And Hold is specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com