How to Pay Yourself More Each Month and Make More Money in the Longer Term With Real Estate

Writen by Joel Teo

Are you making enough money today to retire in the future? Most financial planners tell you to invest in their insurance plans, or unit trusts or other financial instruments so as to develop long term wealth. Why not consider doing the same thing for your own real estate? This method works if you are a low risk real estate investor and want to quickly pay off the mortgage on your own property.

This article will explain the simple low risk strategy to owning your own real estate quickly and improve your finances.

Firstly, reduce the amount of money you spend on credit. Financial institutions in America are earning lots of money because of the easy access to credit and debt. More Americans are in debt than in positive cash flow and use the debt to purchase depreciating consumer assets like cars, home stereos. The first thing you should do today is to reduce your credit and debt so as to reduce your interest payments for consumer items.

Tighten your budget each month and then spend your money more prudently and then tell yourself you are controlling your own business (your life) and are in control of your expenses of your family and your own expenses.

Secondly, draw up a monthly cash flow statement and analyze your monthly cash flow. Specifically take a close look at how much your monthly mortgage instalment payments contribute to your outgoings in your cash flow statement. Now instead of spending money contributing to more insurance policies or annuity, why not double your own mortgage instalment payments. This means practically that you get to own your own property in double the time.

Note that the downside of this strategy is that your monthly cash flow may be a bit tight but the key is to place the monthly payments on autopayment so you do not even get to hold onto the cash so you will not feel a sense of loss. Now that you know that you will be paying up your first property in half the time, spend your energy looking for a second real estate investment property. You are now a qualified real investment bargain hunter.

Thirdly, once you have paid up your first property fully, look for a real estate investment property with good rental yield. You want to use this property to generate good cash flow. How this works out in terms of a cash flow analysis is that you take the monthly rentals minus the mortgage instalments (inclusive of principal and interest) and see how much cash flow you can get from this real estate investment. Spend your time looking for a good property and it can make you more money in the longer term.

In conclusion, double paying your property mortgage instalments and reducing your consumer credit and debt is key to regaining control over your financial future. Take massive action today and start profiting from real estate instead of living from cheque to cheque.

By Joel Teo 2006 All Rights Reserved

Joel Teo is the owner of several websites and takes a keen interest in real estate investment. Learn how you can start making money with Mortgage Foreclosures & Real Estate Investment. today.

Not having a Clear Strategy can be Fatal

Writen by Alan Forsyth

Are you buying for yield?

Speculation on cap growth?

Or to add value?

Too many investors buy without having a clear strategy, or buy the wrong type of investment for them ie they want income but buy an off plan property that requires a 30% deposit and 10% buying costs, tying up all of their savings – and do not realise until further down the line. Or buy a buy to let and then realise do not like the idea of being a landlord!

They can also have a perfectly reasonable strategy, which is working for them ie buying buy to lets for around

The How & Whys of PreConstruction Investment Opportunities. Las Vegas High Rise Condos

Writen by June Stark

The Ins & Outs of PreConstruction Condo Investing

PreConstruction Investments can be tremendously rewarding from a financial viewpoint. The key is to locate a vibrant market and seek out those projects who are pre selling in a quiet pre public Friends & Family of the developer style launch.

The advantages to the developer of permitting VIP clients to select units prior to the public are that he can determine which units are the most sought after so that he can adjust his unit mix and pricing accordingly. This will help him maximize his profits later on & balance his building unit wise as it is released.

If an investor can locate a true friends & family release he or she will benefit from a real increase in pricing once the public phase of units are released. How is this accomplished & what should an investor watch out for?

Developers often times have solid relationships with realtors who specialize in preconstruction condos. These realtor usually have a solid clientele base who participate in pre public launches and readily are prepared to convert their reservations which are typically refundable, into “hard contracts”. Friends and Family releases are small pools of units sort of a test market for the developer ans units are often allocated to realtors who have proven track records of representing solid clients familiar with the process.

What to watch out for? You should make sure that the realtor has a true relationship with the developer & access to “ground floor first phase pricing” not just unit access or you will be paying retail rather than wholesale so to speak. A realtor should be able to provide you with info on what the developer has built in other markets, who is financing the project, and whether a contractor is in line to actually build the project. It is important to know if the developer owns the land he plans to build upon.

In a vibrant market such as Las Vegas, there are several “newbie” developers unfamiliar with construction costs who have not lined up financing nor contractors and are trying to jump on the high rise condo craze that has developed in this area. Oftentimes the projects are cancelled, all reservation monies returned, and the purchaser/investor has lost opportunities to particpate in the early launch of a viable project. The cost of such a mistake? Lost opportunity.

How does the preconstruction investment work? Typically, a reservation is made Sometimes non unit specific. This is usually accompanied by a refundable deposit. Once you have been assigned a specific unit & estimated price, the contacts are available along with a public offering statement & condo docs for your review & your attorney’s review. If you decide to proceed & sign the contract you will be required to return the contract with the balance of the deposit amount Typically the balance of 10% and other 10% or 20% is usually due along the way.
Developers usually increase pricing during the public release based upon demand. It is not unusual to experience a “paper profit” appreciation of 10% 20% or more during the release process.

No other monies are due until you take possession of the unit in a few years time. A large advantage is that once you have made your initial deposit you are not required to pay any mortgage or service any debt. In a great project in a vibrant economic area the demand for the units increase and the likelihood of being able to sell your unit upon completion to somene who wants to live there is quite good all the while the unit has appreciated in value.

In the case of condo hotels once you take possession of the unit oftentimes you will have a fully furnished condo in a great city and a wonderful vacation home while the debt incurred is offset by the unit’s rental potential the hotel condos being operated by a major hotel chain. These units can be placed in a rotational pool & the condo owner shares in the revenue with the operator.
Examples of such projects are The Cosmopolitan Resort (next o the Bellagio), Trump Tower Las Vegas, Las Ramblas Las Vegas, and Starwood’s new W Las Vegas. The Friends and Family launch of the new W Las Vegas Condo Hotel is underway.

Las Vegas Hotel occupancy in the luxury resorts is at an all time high of about 97%. And Las Vegas has 5000 8000 people moving in each month. There is no state income tax. No inheritance tax.
And so much to see & do. It has become a world class city with the best restaurants, shows, museums (even the Guggenheim has opened on the strip) and the finest of dining.

For more info on the preconstruction high rise condo investment opportunities that Las Vegas has to offer Contact Info:
June Stark 702 376 5220
Junestark@msn.com

Lauren Stark 702 236 8364
Laurenvegas@msn.com
###

June & Lauren Stark are the #1 High Rise Team in Las Vegas
June is a 33 year Las Vegas resident and former systems analyst for major corporation including Lever Brothers, Summa Corp. ( Now Howard Hughes Corp.) and a former associate officer of the United Nations NYC Headquarters.\

Lauren is a native Las Vegan and an award winning top producer who has been licensed for 9 years. She holds a B.S. in Businees/Marketing from UNLV.\ They have been awarded the top producer award from SKY LAS VEGAS, Icon Las Vegas and June has been featured in Trump Towers promotional DVD.

Real Estate Investing: Why Paying Cash (or Putting Too Much Down) Could be a 6 figure Mistake

Writen by Joel McDonald

Most buyers who just won the lottery, received a large inheritance, or are fortunate enough to have enough cash decide that they want to pay cash for their home for the convenience of not having a monthly mortgage payment. However that convenience is costing those buyers nearly $5000 per month over $200,000 over 20 years! Here is an explanation.

Let’s say you have $250,000 in cash, and you have a choice of putting 10% down and carrying a 90% mortgage, or simply paying cash for a $250,000 home.

If you pay cash:
$0 monthly payments. Yeah!
No diversification in stock market.
0 profits per month.

After paying your $904 mortgage payment from your $1312.50 stock profits, you are left with $408.50 in profits per month! That’s $4902 per year!

If the above scenario isn’t a strong enough argument for not paying cash, think about this: Your home won’t be worth a penny more in 20 years if you pay cash than if you take out a loan, so it doesn’t really matter how much the market appreciates. However, if you took out a mortgage insteady of paying cash and invest in the stock market in addition to your home, your stock market returns compound annually and amount to over $200,000 in additional profits!

By paying cash for your home, you tie up that money in an asset that will grow at the same rate whether you paid cash for it or not, and you lose the opportunity to diversify and invest that money elsewhere.

The same principle even applies if you don’t have cash to pay for your entire home. If you are thinking about taking money from your existing stock portfolio simply to lower your monthly payment on your mortgage payment, you may want to think twice about what you are doing.

If you’d like to experiment with different mortgage payments for different loan amounts, visit this useful mortgage calculator.

Joel McDonald is the CEO of Automated Homefinder a Colorado company specializing in residential real estate.

Relocation Colorado Springs

Writen by Jennifer Hershey

Colorado Springs is a great place to live. You can find a good bit about history, and a wonderful new home, just as you have always dreamed. Find a realtor in Colorado Springs and start looking for your new home now.

When it comes to finding a good realtor agent in Colorado Springs, you will might want to look at several areas like the Internet research engines, internet newspaper, and from any friends or family that you might know in the area. As for the area, you should first know a little bit about the history of the area and get a local introduction. You can find many links to quality agents and real estate right here on these pages.

About the history of Colorado Springs: Colorado Springs was founded in 1871 and is the second largest city in Colorado. It has changed over the years from a Victorian spa resort to a major city. Colorado Springs has the city life, but still with the small town charm. It has over fifty attractions and many regions. As for the atmosphere that you can find in this region, Colorado Springs is mostly a vacation hot spot. In fact, Colorado Springs draws in more than six million visitors per year and that is a lot of people, but it is also a region that provides many jobs at the same time. One of the regions of Colorado Springs is Pikes Peak. Pikes Peak is known as the “gateway” to all the outdoor adventures of Colorado. It is located about eighty miles south of Denver’s airport and is less than two hours away from the most popular slopes located in Colorado and six miles from downtown Colorado Springs. There are many things to do, all the time in Colorado Springs.

Peaks Peak is one of the number one tourist attractions because there is so much to do. The peak is open all yeah round and 7am 7pm from Memorial Day to Labor day. You will only need reservations for the Cog Railway and the cost practically costs you nothing. To hike the mountain, can take all day. There are so many more things that a person can do at the mountain that is great for all ages. Pikes Peak is the most visited mountain in the world, doesn’t it sound so great to be part of Colorado Springs? The views located at the Summit House shows off the best scenery in Colorado Springs and you will find it all quite exciting. The Summit House is the only restaurant located near Pikes Peak and serves thousands of people each day, if you are near this location you should stop by and take a look for yourself, you will never tire of it.

Many of the realtor agents in the Colorado Springs area have been in business for decades, so you know homes are bought and sold all the time, no matter what type of home you may be dreaming about, you can find it here. The agents in this area care more about introducing others to Colorado and will usually give tips about all the things that is offered in the area. You will also find that the whole town gives off this friendly and homey atmosphere. You can depend on a real estate agent to help you find that dream home.

In fact, many people do decide to move to Colorado Springs because of the atmosphere and simplicity and also because of the beautiful scenery. Colorado Springs is one of the most known areas of Colorado and when people visit the area, many decide to stay. How wouldn’t want to stay considering that Colorado Springs has so much to offer everything rather they are old or young. There are schools, museums, and so much to do, that the entire family will enjoy living in this area.

When Realtor agents in Colorado Springs realize that you are relocating to the area, they will most likely go all out to show you a good time. You will usually be given a map of all the streets, highways, schools, shopping areas, and major landmarks from your realtor and then they will most likely show you the high points of the city. Many will give their customer’s tips on where to get the best food or services. Who knows, maybe once you settle in your new home, you will bring other to the Colorado Springs area, if you want to sell homes as well!

Because there is so much opportunity in the area, eventually a person may want to invest in the city. Colorado Springs is a great investment, rather it be buying a house or running your own business. Many businesses in the area end up making great profits because of the activities that draws in tourist. There is no real off season when you live in Colorado Springs. When a person checks out the region with their realtor, there is much evidence to the fact that it is a great place to relocate and offers so many opportunities to the average American entrepreneur. With the high amount of traffic and people through out the region, many types of new industry and businesses find it easy to establish and build a business.

When it comes to realtor agents in Colorado Springs, you will want to first figure out what area it is that you want to relocate to and then you can find a realtor quickly. You may want to look in several surrounding areas of Colorado Springs that are just as nice and class as the Springs and yet be close to your job in the city. If you are working out of town, you will find the highways are very accessible and will cut time off your commute.

You can purchase a home that is located exactly where you want because the construction business in the area is continuously growing, but most don’t stay on the market long. That’s why you should make an offer on a home as soon as you find something that you like, so you don’t miss out on something you really want to own. The Colorado Springs area is a good investment because travelers come to Colorado Springs all the time and want to relocate in the area once they have seen just how beautiful the area really is. In fact, don’t be surprised if someday a person rings the doorbell giving you an offer, but that type of thing doesn’t really happen every day, but you know what we mean!

Houses in this area are so hot that everyone wants to live in Colorado Springs. The property may seem a bit expensive, but considering that it could eventually be double or three times worth what you paid, it’s a good investment. Real estate in the Colorado Springs is practically a goldmine, since people travel thousands of miles each year just to go to the slopes or visit the Summit House, located on top of the world’s most visited mountain. Colorado Springs is definitely a place you would want to invest your money in because it is forever changing and expanding. The value of the real estate in this area is only going to climb, as the scenery and the atmosphere is something that a lot of people from around the US are seeking, getting out of the big cities, to smaller, seemingly more rural like areas.

When it comes to the real estate salespeople in the Colorado Springs area, clients find that they are very down to earth and eager to educate their clients on the history of Colorado Springs as well as the area’s diverse offerings. For a family that has different ideas or pictures of the most perfect place to live, Colorado Springs has it all. Just by simply asking your agent about the area, you will become overwhelmed with fun facts and interesting historical stories. It is a nice place for families as well as an enjoyable place for those who are single. You know an area is a great place to live when people travel the entire world just to spend a day there. Colorado Springs is a very safe and dependable place to relocate.

Jennifer Hershey has more than twenty years of experience as a mortgage loan officer. Her site http://www.explainingmortgages.com a real estate investing and mortgage resource devoted to making mortgage types and home loan programs easy to grasp

Real Estate Investing: Follow Up The Key To Successful Closings

Writen by Lou Castillo

If everyone always did everything they said they’d do, we’d all be a lot richer. Unfortunately, tasks are overlooked, and the ball is often dropped. If you want to have successful closings, you must have strong “follow up” skills to catch problems early in the process. Follow up on everyone and everything.

We can’t begin to tell you the number of closings that almost fell apart, or would have fallen apart had we not kept a watchful eye on the entire process to make sure that everything was completed when it needed to be. Here’s a typical scenario: you’re wholesaling a house and you have just 30 days to get it closed before the contract with the Seller expires. You find a buyer who can get a loan and close before the expiration. Then a few days before closing you find out that the loan isn’t ready and closing must be delayed two weeks, but the Seller already has another Buyer ready to pay more than your price, so they refuse to extend your contract. You just lost the deal.

So what is follow up? We used to think it meant staying in touch with the buyer to make sure that everything was completed for the loan. Then we learned that the buyer is often a newbie and clueless of what needs to be done. Mortgage brokers just usually respond “Everything looks great” until they can’t close the loan. So the real trick to following up is to speak to the final decision maker for each step. This works whether you’re selling a retail house or a wholesale house, or even if you are the buyer/borrower. The goal is to close without delays.

Assuming that you have already received a pre qualification letter from the lender, and ensured that the lender will loan on the deal (i.e. no issues with title seasoning, assignment fees, inhabitability of the property), the first step is to follow up with the broker/lender that all of the application paperwork was submitted, and have they forwarded it to the lender? If not, what is still required? Determine if the lender requires a termite letter, appraisal, and a survey (most lenders do). If so, have they all been ordered? When is each to be completed? Keep following up until you verify that each has been delivered. You also want to verify that the appraisal was sufficient for the loan.

If we don’t already own the house, we order a title report as soon as we go under contract with the Seller to discover any defects early in the process, and begin resolving them. Closing attorneys usually do not order the title report until just before closing to receive as current information as possible. But if they find problems, it could delay your closing. It is well worth the $125 to run title ahead of time, and eliminate delays.

Once the broker has forwarded the paperwork to the lender, the next step is to verify the loan has gone to underwriting. If not, what is the delay? If so, was the loan approved? Do any conditions need to be met? What are they and who is handling them? Make sure that once the conditions are met, the loan is returned to underwriting and approved.

Verify that the closing has been scheduled with the attorney, and that they have cleared title. Find out if and when the loan package will be forwarded to the attorney. Then remind all of the players of the date and time of closing, to bring a picture ID to closing, and to bring any funds required in a certified check.

This seems like a lot of work that should be handled by other people, but the reality is that often times something is overlooked. Through your diligent follow up efforts, problems will be detected early and corrected, allowing your closing to occur flawlessly and on schedule.

Best of success & abundance,

Lou Castillo

Now, Easily find all the real estate funding you’ll ever need! This complete system will show you how to acquire unlimited real estate funding, even without using banks, hard money or your own credit! Learn more in this FREE Report!!

Real Estate Financing

The Lease Structure That Generates the Most Cash for Your Commercial Property

Writen by Yolanda Bishop

The Lease Structure That Generates the Most Cash for Your Commercial Property

Commercial properties are characterized through income generated by rents paid by tenants. These commercial properties can be apartment complexes, office buildings, strip malls, retail centers and medical buildings.

The more income a commercial property can produce, the more valuable it is. The true qualifying factor is the net operating income, or NOI, which is income minus operating expenses. Operating expenses include any expense that relates to the actual operations of the property. These can include taxes, utilities, maintenance, and management costs.

It used to be common for the owner to pay the property’s taxes, insurance, and utilities under a full service lease. The tenant would simply pay the rent every month, and the owner would pay the bills. This greatly cut into overall profits, as the owner was using rent income to pay the additional bills.

Savvy commercial property owners and investors soon came to realize that if the tenants are using the property, then they should have to pay for the expenses of keeping it in operation. After all, who is using the water, electricity, trash services and common areas? Not the owner, but the tenant.

Net leases became popular, instead of the full service lease, which required the lessee to pay only the taxes and insurance. The lessor would be responsible for utilities and other related operating expenses. This change in lease structure allowed more profit to stay in the hands of the owner.

Even still, owners took the lease structure one step further. In recent years, and even recent months, both young and old properties are being changed to net net net leases, or the triple net lease, where the lessee (tenant) is responsible for paying three of the most important operating expenses: taxes, insurance, and utilities. A true triple net lease is one in which the lessee pays all of the operating expenses, and the lessor simply receives a rent check every month.

This structure of leasing has become very popular, and many commercial properties are making the switch because it greatly decreases the overall expenses, net operating income, and make the property higher performing and extremely more valuable. The lessors may not be happy, as they are now required to pay for the entire property, as opposed to just their living space.

So how does the lessor know how much each lessee must pay? Besides separating the utilities and having each unit’s tenant be responsible for that which he or she uses, the common expenses are divided among all the units according to the total square footage of living space. The larger the unit leased, the more they pay.

In order to put this triple net lease structure into place, and see your income drastically increase, simply put a clause in the contract that the lessee is to pay the operating expenses which will be divided on a pro rata share, based on square footage usage. Under this lease, the tenant literally pays all common area maintenance which may include parking lot cleaning, parking lot’s electric, the lawn care, pool maintenance, and all other utilities used by the project.

If you feel that your property could better perform by implementing a triple net lease structure, then speak to your lawyer or advisor about rewriting the contracts to include the triple net lease clause. Watch your expenses drastically decrease, and you income rise quickly.

Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

A Log Cabin of Your Own

Writen by Eriani Doyel

When you think of a log cabin, what do you imagine? Something rustic and small that the settlers lived in until more permanent housing could be built? Or, do you imagine the cabins of today, with beautifully designed architecture and sturdy construction meant to stand the test of time and the weather? If you have thought about a cabin as a vacation home you should definitely look at the log models of today. Not only are they well built, but they are fairly economical and you can even build your own log cabin from a plan that you purchase.

There are a few basic steps to building a log cabin, whether you build it yourself or have it built for you. The first step is to find a location. Most cabins are in wooded areas and forests. Find one in a desirable area where the land is available and zoned for residential housing. Also check to make sure that utility service is available and that your lot would be accessible when you want to go there.

The next step is to find a builder or some plans. You can go online to find a builder and also blueprints that are standard or custom designed. Consider future changes in your family situation when you decide what features will be important in your log cabin. Such as how many bedrooms do you need? Are you going to need lots of storage? What appliances and electronics do you want? How many bathrooms?

Once you have chosen a builder or plans, it is time to lay the foundation. The foundation of your log cabin should be level to avoid cracking and sliding. Find out what precautions should be made due to weather. Any plumbing, etc. should be adequately protected.

Next, the exterior walls of the log cabin will be put up. They are what will give the cabin its shape and character. The logs should be treated to avoid rot and should fit tightly together with some type of sealant in between for insulation and security purposes.

The roof of the log cabin comes next. Some cabins have a metallic roof while others have wood or tar paper shingles. The choice is yours. Metal will not rot, but it is not as attractive or as insulating as other roofing material.

Once the roof of the log cabin is installed, you can begin work on the interior, windows, etc. If you want log inner walls they may need to be installed at the same time as the exterior walls in order to make a tight connection. If you use drywall, then you can put the walls of your log cabin up later.

A cabin can be a great investment, not necessarily in resale value, although depending on the market that can be true, it is mainly an investment in the quality of your life and the time you spend with those you love.

Eriani Doye writes articles about Finance and Real Estate. For more information about owning a log cabin visit dotcabin.com

Commercial Real Estate Industry Is the Condo Craze Over, or Just Gaining Steam

Writen by Mike Myatt

Over the last two years there has been so much condo activity that many commercial real estate lenders are starting to express concern over the future stability of condo markets. Some lenders have recently found themselves over allocated in condominiums as a result of the recent activity and have therefore become wary of all but the best opportunities.

While the best opportunities (typically in Florida, Southern California and select destination markets) are still attractive, developers in smaller markets are finding condos much more difficult to finance in recent months.

The reality is that many of the lenders expressing concern over the current state of affairs in the condo market are the lenders that have been the least active and have less knowledge about the asset class. Lenders familiar with the condo market are not as concerned about the opinions of their peers, but rather with the fundamentals of the projects and sponsors they underwrite.

Projects that demonstrate that they underwrite according to the following guidelines should be able to find financing even with the caution currently being expressed by some in the lending community:

1. Sponsor Suitability: Sponsors that have a successful trackrecord of developing other condo projects will be looked upon more favorably than those who are building their first project. Having net worth and liquidity in reasonable proportion to the project size always helps as well.
2. Capital Structure: Projects that have a sufficient sponsor equity contribution will receive more interest than those projects looking to move aggressively up the leverage curve.
3. Entitlements: Projects that are fully entitled and permit ready will attract more interest than early stage projects.
4. Market Feasability: How many units are you building vs. how many competitive units are currently available for sale. How many competitive units are coming online during the time period that your project is being built and how many units does the market absorp each year? What are your per square foot sales prices, how do they compare to the market, and is your location, construction quality and ammenity package in line with that of comparably priced projects?
5. Marketing: Who is going to sell your units and do they have a strong track record of selling condos within the market you are building in?
6. Presales: What type of presales have you been able to generate? The higher the percentage of presales, the more are lender interest you will attract.

The bottom line is that good projects from good sponsors will always receive interest from the capital markets.

Mike Myatt is Executive Managing Director of Pacific Security Capital, a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance, investment sales and advisory services. Contact Pacific Security Capital at 1 800 844 6085 or by visiting the company website at http://www.PacificSecurityCapital.com