Real Estate Investing 301 - Advanced Strategies

In Real Estate Investing 101, Part I we covered buying a house to resell for a short term profit, while minimizing risk and making it happen fast. We delved further into flipping in Real Estate Investing 201. In Real Estate Investing 101, Part II we covered buying and holding property for long term appreciation and wealth building. We also touched on class shifting to increase value. Real Estate Investing 202 continued on the Buy and Hold theme and offered deeper insight into making it profitable. In Real Estate Investing 203, we looked at shifting property classes for highest and best use, while increasing property value and return. Each of these articles is available on Ezines.

This time, we are going to look at investing from a different perspective. The previous articles have been about buying property "wholesale" and selling it "retail". But, there is another way to buy property that may be more efficient as well as more profitable.

Want to make $50,000,000?

Invest in REO Bulk Portfolios. The problem is that this is out of reach for the VAST majority of real estate investors. It requires a huge commitment of time, energy, and (most importantly) cash. For a $50M profit, one should expect to spend a little more than $100M. But, the result can be a fairly passive profit in the 40%-50% range within 6 months to a year.

Decoding the alphabet soup

REO is industry jargon for Real Estate Owned. This is property that has be foreclosed and repossessed by mortgage lenders. Some lenders retail the property through traditional channels. They hire real estate agents to market the properties along side any other area property. The lenders usually have a few more hoops for buyers to jump through, and often aren't in the best of condition. These are the foreclosed properties mentioned in the earlier articles.

Bulk REO portfolios are simply large groups of properties that the mortgage lender doesn't want to take the time to market. By gathering these properties together, they are able to dispose of them more efficiently. Since they often need to sell them quickly because of banking regulations, they price them to move. They can be priced any where from 40% to 70% of BPO or LTV. Of these, pricing relative to BPO is much preferred.

BPO is Broker Price Opinion. It is similar to an appraisal, but much simpler and less expensive. It is also like a CMA or Comparative Market Analysis that your local real estate agent might provide when you are looking at buying or selling a home. Contrary to the name, a BPO may be issued by a real estate agent that isn't licensed as a broker. When dealing with REO bulk portfolios, some sellers might not actually hire a broker or agent to do the opinion. In cases where the properties are new (builder loan defaults and other similar situations), they may rely on online valuations. This is rare, though. The bottom line is that is the property carries a BPO of $200,000, and is being sold at 50% in the package, it is costing the buyer $100,000. The BPO also takes into account the current condition of the property, including repairs it may have needed at the time the BPO was issued.

LTV stands for Loan To Value. In this case, if the property originally sold for $100,000, and the buyer put $5,000 down, the LTV would be 95%. So, in theory, if the property is being sold at 50% LTV, and the buyer is paying $100,000 for it, the bank loan was about $200,000. The problem is that we don't actually know what the property might be worth. On one extreme, the defaulting owner may have put 20% down. Sticking with our $200,000 house, this means that they put up $40,000, and the bank was on the hook for $160,000. At 50% LTV, the bulk buyer would be paying $80,000 for the property. At the other end of the scale, the buyer might have put nothing down, and they might have overpaid for the property. With the current real estate climate, there is a possibility that the property devalued. Further, when people aren't able to make their house payment, maintenance and repairs are often deferred. So, we might be talking about a property that was purchased at $200,000 with a 100% loan, but now is only worth $150,000. Buying it at $100,000 (50% off of LTV) still would yield a profit, but not as much as buying at 50% BPO, which would be $75,000. The biggest problem with buying based on LTV is predictability. We don't have as much of an idea about the retail value of the property in its current condition.

Now for more of the basics

As previously mentioned, these are portfolios, and are purchased in bulk. Calling up the local bank will not get you a 50% deal on property. Bulk REO portfolios are usually offered in packages starting around $50,000,000. Most are sold in packages priced at $100M to $500M per transaction. Some packages are $1B or more. There are a few consolidators that will sell smaller packages, but they are generally marked up as they are broken up. And, because these are broken up from bigger packages, it is more difficult to specify property types. Even the smaller packages generally start around $10M.

With the more traditional packages, priced at or above $100M, the buyer is able to custom order the properties. The buyer can request only properties within a certain geographic area, price range, and type (single family, attached, commercial, etc.). Keep in mind that we are talking about a LOT of property. Even with a valuation of $300,000 each, at 50% ($150,000), there would be over 650 properties in a $100M bulk portfolio. Finding all of the properties to fit the order would normally take a few counties, at least.

When the order is placed, the compiler puts a package together. The package may be from a single institution, or from multiple institutions. In order to place an order, the buyer fills out an order form, provides a Letter of Intent (LoI), and completes a Non-Circumvent, Non-Disclosure Agreement (NCND). They also must get the information ready for their Proof of Funds (PoF) letter that will be required by the selling financial institution.

A Letter of Intent may also include the order information. However, primarily the LoI is just a document that states that the buyer wishes to purchase a bulk REO package. It may also outline what types of properties the buyers wishes to buy, otherwise that info will need to be provided on the order form.

In order to maintain the security of the involved brokers and principals, a Non-Circumvent, Non-Disclosure Agreement is entered into by all of the parties. The NCND keeps the buyer's broker, the seller's broker and the principals from disclosing sensitive information to outside parties, as well as keeping them from going around anyone involved in the agreement to complete future sales.

A PoF letter is exactly that proof of funds. These transactions are seldom done with mortgages in any recognizable format. We will go into why this is the case in just a moment, but for now we will just say that the sales are done through a wire transfer. In effect, the sale is a cash sale. The property is sold without encumbrances, and with a clear title.

After the compiler gets the order together, there is a short period, generally about 48 hours, during which the buyer can reject specific properties from the package. At the beginning of the period, the buyer puts up a deposit (like earnest money) that is generally 10% - 15% of the package purchase price. With the completed list of properties in hand, the 48 hour countdown to reject properties begins. They have seven days to complete ALL due diligence. After seven days from the delivery of the order, the deposit goes hard. In other words, it is no longer refundable. The transaction is generally closed about 15 days from the delivery of the order to the buyer.

Since these deals go from beginning to end in 15 days or so, there is simply not enough time for a bank to go through the steps they would need to finance the property purchase based on using the property as security. However, after closing the transaction, it may be possible to get a package loan on 60% - 80% of the cost of the properties. However, this will complicate the disposal transactions and decrease profits. So, at closing the buyers need to have their funding in place, and it needs to not be dependant on the property.

Strategies for selling hundreds of properties

For most buyers, holding the properties isn't the option that they are looking for. Turning the properties is the goal. Generally, there are a few different strategies that sellers use to dispose of the properties. These depend on both the properties and the type of buyers.

Wholesale sellers sell to other investors at a discount from BPO. This allows them to minimize further expenditure, while maximizing return for less than optimal properties. The properties can often be moved fairly quickly. One drawback is that more expensive properties are more difficult to sell. Most retail investors are competing for the lower end of the market.

Retail sellers spread their properties around to real estate agents to list. These are often asset management companies and other similar business entities. These may be the properties that one sees listed as "corporate owned" in the MLS. In many markets, this can bring the maximum return, but is really only viable for the best of the properties. And, it may take a long time.

Properties that don't move through the other methods generally end up in auction. The biggest problem is that by the time get to auction; they have been left sitting for many months or even more than a year. Most properties will have degraded further from sitting disused. Even if they haven't grown mold or been trashed by squatters, they have cost money to carry. That may be directly if a loan was obtained to pull cash back out of the property, or indirectly through lost opportunity costs.

So, how should we get rid of the properties?

I would recommend a combination of the accepted methods, but with a twist. A good real estate agent will know which properties are likely to sell without much hassle. This agent should also be able to give pricing scenarios that minimize market time, while preserving at much margin as possible. So, feed this agent the cream of the properties, and price them aggressively to sell quickly.

For the properties that aren't going to sell at retail, mix them between wholesale and auction strategies. Surprisingly, auctions often deliver better prices for the seller, but if there are too many properties sold at once, the market is diluted. The same holds true for the properties that are to be sold wholesale to investors.

Finally, properties that aren't likely to sell well through the traditional channels might be best disposed of through selling at very deep discounts to contractors or other vendors. These super deals can really help to curry favor and move your other projects to the top of the scheduling heap, as well as provide leverage for pricing discounts.

Innovative strategies for smaller investors

Because of the financial resources required to complete one of these deals, they are generally restricted to only the highest level of individual investors, as well as institutional investors. Actually completing the transaction, from start to finish would normally take a bare minimum of $12M - $13M. In addition to the $10M for the property, there would need to be a reserve for improvements, taxes, commissions and other transaction expenses. Almost all of this needed to be effectively in cash (ok, not in cash, but in available capital. For a $100M bulk REO purchase, one might expect to spend an additional $10M.

By turning around the property disposal and beginning by auctioning off some of the properties that aren't cherry picked off of the top, additional cash is generated. This should reduce the additional capital requirement. Basically, it would fund the later stages of the transaction, as well as spin off cash to begin to pay back the investor, or investors.

A great strategy for smaller investors would be to form a group (I'm not a lawyer or accountant, so I can't go into structure such as LLC, Corp, or partnership, etc.). Instead of focusing on ownership of individual properties, the investment could be treated as more of a passive investment. Hire a good real estate professional, or have a major partner responsible to run the day-to-day operations of the properties. Aside from the marketing for the properties to be sold retail or wholesale, and any renovations that are needed for any of the properties, there isn't much management that needs to be done. There will need to be marketing for the auctioned properties as well, but if those are disposed of early in the transaction, that need will be minimized.

While there may be increased expenses from purchasing in smaller quantities, part of that may be offset by being able to sell at higher prices. When selling 50 to 100 properties, there are many more options than there are when selling 500 to 1000 properties. When looking to dispose of 750 (nominal number) properties, more will have to be auctioned and wholesaled simply to make the remainder logistically possible. Aside from renovation resources (time, money and contractors), marketing and selling properties can be expensive for a real estate agent. Hitting one with 300 properties might be counter productive. However, having too many agents can make logistics more difficult, as well as increase overall marketing costs because of duplicate efforts.

Building a relationship with the Bulk REO Portfolio sellers, by doing regular transactions (perhaps quarterly, or even monthly if properties can be sold quickly enough) will often allow for leverage on brokerage fees. Another advantage of working regularly with the same REO sellers is that they may be able to bundle small orders with larger orders to lower the price in relation to REO. For $10M packages, many compilers are looking to sell at 60% or even a little more. As the order size grows, the price may come down to 50% for $100M deals, and even as low as 45% for $1B packages. If a $10M order gets bundled to a $100M order, the smaller order might get filled at 55%. That extra 5% discount can translate to $500,000.

Research. Plan. Prepare. Remember the old adage that it takes money to make money. This holds true in buying Bulk REO Portfolios as well. This time it means it takes a LOT of money... to make a LOT of money. Also, understand your own market and your own limitations.

Lane Bailey is an Atlanta area REALTOR®, auto enthusiast, 4x4 builder and former sports car racer. He specializes in properties for other enthusiasts. Lane is also a husband and father. Lastly, he is a guy that enjoys tools, technology and working with his hands.

Lane is a member of the DeKalb Association of REALTORS®, Georgia Association of REALTORS® and National Association of REALTORS®. He is also a member of the Century 21 Network Realty group in Tucker, GA. He is also the Chairman of the REALTOR® Political Action Committee, and President of his 4 wheel drive club. He recently ran a committee that staged a blood drive with the off-road community.

If you are interested in Real Estate investment, Lane is a great resource. As an entrepreneur, and investor, he understands the language and priorities of investing in property. Whether you are looking for properties to flip or hold as rental assets, he can find the properties that meet your criteria.

Lane can be contacted through LaneBailey.com

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Real Estate Investing For Beginners - Part 2, Types Of Properties For New Real Estate Investors

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

• Detached single family homes


• Attached single family homes


• Multi-Unit properties


• Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

• Allows owners of rental properties to be 'shielded' from dealing with tenant and property issues directly.


• Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.


• May provide a less stressful experience


• Offers the ability to purchase real estate investments not immediately local to the investor.


• Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

• Advertise properties available


• Recieve applications for tenancy


• Perform Credit and Background checks for applicants


• Recommend rental pricing


• Pay maintenance and/or repair bills for the owner


• Send monthly statements and rental income (Less any outstanding bills. Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to 'flip' properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for 'flipping'.

The real estate market fluctuates greatly. Yesterdays great 'flipping' market may be (recent market trends as an example) tomorrows 'Hold on to it' market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let's discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

• Financial considerations - How much can you afford?


• Availability of properties - What types of properties are available?


• Location - You've heard this one a thousand times - Location...Location...Location...


• Income potential - Does the property in question match your real estate investment strategy?

Detached and attached single family homes
Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a "hands off" approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

The continuing purpose of this article series is to assist new investors in making sound real estate investment decisions. Making sound real estate investment decisions initially may lead to the more lucrative opportunities of Commercial real estate investing

As a Keller Williams Success Realty real estate agent and REALTOR® working in Panama City Florida, my mission is to provide the public with quality Panama City Florida Real Estate services!

I believe the future of Real Estate sales will be maintained and driven by the online power of the consumer. I provide quality service for Panama City Real Estate investors, from Commericial income properties to 1031 Tax Exchanges.

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Real Estate Investing Clubs

Real estate investing clubs, known as reias, are now a reality for the people wanting to bond together for the purpose of real estate investments, just as the investment clubs in stocks. Often, educational seminars are conducted at the club, with national and local speakers providing real estate investing information.

The individuals can search the internet for finding their local investment clubs. Most of the reias that are available have the intention of allowing the visitors to join the clubs on a regular basis. But, it is recommended that the people gather relevant information about such clubs before making any commitments. Usually, you can attend the first meeting at no cost to check out the club. Make sure you ask what their fees are for both monthly and yearly dues. This kind of first hand knowledge can be useful, before deciding to join or not.

The process of starting a local reia can be a daunting task. The aspirants have to be well versed with all the regulations regarding the proceedings. The knowledge about handling the day-to-day operations of the clubs has to be properly studied before starting the club. Most clubs are started only after many hours, sometimes weeks of research by the founder or the board of directors.

It has to be ensured that at least one member of the group is adept in the proceedings of laws that govern such clubs. In fact, the members having specialized knowledge about finance, accounting and other such procedures can prove beneficial for the running of the investing clubs.

Most of the reias have regular meetings that take place at least once in a month. These meetings are taken to make the important decisions regarding the group of the clubs. The group that comprises the club, votes for the appointments of the president, the vice president, secretary and the treasurer for presiding over the meetings, and forms the management of the clubs.

Special committees can also be formed for doing tasks of scouting for investments in potential properties. The meetings are sometimes held via the internet if the members are not present in the vicinity.

Newsletters are usually sent to all the members for keeping monthly correspondence about the dates of the events of the club, usually via email. Invitations are given by the reias to professional planners of the real estate industry for sharing their views with the members of the clubs. Other professionals such as: tax planners, finance experts, attorneys, mortgage brokers and the local realtors are also called for sharing their views with the clubs members.

Charles W. Moore, a U.S. Army Veteran began Real Estate Investing in 2001. He's a Successful Investor, and Author of, "Million Dollar Rent To Own Real Estate Secrets Exposed." Get his Free Report on Rent To Own Real Estate Investing [http://www.Rent2OwnExposed.com] at: [http://www.Rent2OwnExposed.com] - Learn Real Estate Investing, Stocks Markets and Internet Marketing, visit: http://www.REIeBooks.com

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Real Estate Bird Dogging-A Great Way To Build Investing Confidence

One of the problems faced by many newbies (new investors) in the real estate business is lack of confidence. Confidence cannot be built without doing the activity that you are trying to build confidence in. This presents a problem with most people because real estate is not something that you can just practice, you cannot practice buying a house, or practice selling it. You could pretend to buy houses I guess, or pretend to sell houses, but pretending is for kids. This is where real estate bird-dogging comes into play. It gives you a reason to practice, you get paid. Now if money won't make you practice then nothing will.

Instead of not getting paid for all those hours spent learning the market, you could be making thousands. I cannot think of a better way to learn real estate than getting out and looking for good deals, then finding good deals and showing them to buyers, who pay you for your services. Then after the buyers close you can follow the progress of the home and see if you made a good decision or not. The best part is that during your practice, even if you made a not so great decision you still get paid, and you do not lose a penny.

I started out my investment career as a Realtor. I built my confidence through selling investment properties to other people and watching them make money. After selling 9 homes to other investors and seeing them profit tremendously, I knew it was time for me to start making myself some money.

Eric Medemar is a realtor and real estate investor with 30+properties. He specializes in wholesaling, assigning, and flipping real estate. In 2007 He has already made close to $100,000 flipping properties. His goal is to help at least 170 people skyrocket their investment careers in 2007. http://www.BirdDogBiz.com http://www.TheMillionairesBlog.com

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Real Estate Investing Strategies - New Regulations May Slash Your Profits

New regulations about to go into effect may dramatically change the way you conduct your real estate investing business. When these new regulations, called "The Uniform Closing Instructions" (UCI) are introduced, they may very well limit your ability to make profits in real estate investing.

What are Closing Instructions?
Closing instructions are the instructions for the Title company on all the complex, nit picking requirements the lender requires BEFORE they will release the money.

The current closing instructionsthat lenders use vary wildly from state to state, and even county to county, as do settlement agent practices. This results in increased costs across every aspect of the closing process, costs which are then passed along to consumers, both in money and time.

The non-standardization of the closing instructions is basically the central reason some lenders permit certain types of transactions and others don't. Basically, closing procedures and documents are different from one place to the other.

This is all about to be changed. The UCI will require the closing instructions to be standardized throughout the country.

So just how will the new closing instructions affect you, the real estate investor?

1. The title companies that once were your friend and may have been willing to "look the other way" if your deal did not meet all the instructions perfectly, will soon have a fiduciary responsibility to abide by the rules outlined in the UCI.
   
   
2. There will be no more buy-low-today, sell-high-tomorrow double-closings assuming the buyer needs/wants traditional mortgage financing. Pre-foreclosures, simultaneous sales, wholesale flips, pass-throughs, etc., will all be restricted.
   
   
3. If the buyer is using cash, then the rules are still open BUT the title must be seasoned for a minimum of 12-24 months before the house can be traditionally financed by a mortgage company for the retail amount. E.g., mortgage companies will no longer loan $100K on a home worth $110K that was just short sold for $45K.
   
   
4. No more getting a buyer financed with traditional funding, selling to them for a medium to large profit, without title seasoning for a minimum of 12-24 months.

What does all this mean to you? The new creative investors will be cash buyers that can buy and hold a property for 12-24 months regardless of the cash flow. This could spell trouble for most investors who do not have large amounts of cash lying around to buy and hold properties (and who have the luxury of waiting a year or two to make a profit.)

Jack Sternberg is a nationally recognized expert on real estate investment who's been in the business for more than 30 years. His deals have totaled over $750 million.

Get the full FREE 48-page report, "The Uniform Closing Instructions Exposed: Critical Factors You Need to Know In A Dramatically Changing Real Estate Investing Environment" at http://www.uniformclosinginstructions.com

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Real Estate Investing - Building a Business vs. Starting a Business

What is one of the best ways to approach taking control of your life? Many feel it is having your own business. To be clear, I am not advocating quitting your job tomorrow to start a new business as this would not be wise. You most likely would not be able to replace your current income right away. What I am suggesting however is "building" a Real Estate Investing business in your spare time, which is different than "starting" a business.

You see, starting a Real Estate Investing business implies that you will finish it or simply give up. When you build a Real Estate Investing business you are doing it the right way, at a pace you are comfortable with. Building conjures images of growth, and that is what you want. Right? So how do you build a Real Estate Investing business?

First you need to choose a Real Estate Investing vehicle or strategy that you can work in your spare time, without jeopardizing your current job. Ideally you would be able to begin building your Real Estate Investing business with very little money. You would not cause financial hardship to your family.

You would be able to use resources that you already have. You must have a product that is desirable and that you can build upon. The Real Estate Investing business has to have the ability to begin earning money quickly. There must be enough growth potential to eventually allow you to quit your job and regain control of your life.

I know this may sound like a pretty tall order, but remember we are talking about your financial future. Would you want anything less? You will have to steadily work towards your goals (you must set goals), and it requires a different way of thinking.

Change is not easy, but it is necessary. Are you currently living the life you have always dreamed of? If not, you need to change something. Remember, regardless of the economy, a Real Estate Investing Business is a perfect product people simply because people will always need a place to live.

About the Author:

Chris Parks is a Real Estate Investor who has been involved in Real Estate in one capacity or another since the mid 1980s. As a member of a small group of Real Estate Investors and Entrepreneurs, and always having the knack for explaining Real Estate Basics in an easy to understand manner, Chris created Real Estate Investing for Newbies http://www.REIforNewbies.com in order to teach and assist new Real Estate Investors in a step-by-step, easy-to-understand manner.

(c) Copyright - http://www.REIforNewbies.com All Rights Reserved Worldwide.

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Real Estate Investing Trends

Considering real estate investing? Or looking for the next big idea in real estate? People nationwide are continuously searching for new ways to sink their teeth into the lucrative market that is real estate investing. Before you choose your next big move in real estate be sure to analyze current market trends and choose a strategy accordingly.

There are several avenues to take within the rather large realm of real estate investing. Whether you execute more traditional types of real estate investing such as buying low and flipping or accumulating rental properties, there are several profitable routes to take. Consider using a combination of strategies in order to diversify your real estate portfolio and ultimately maximize profits.

One significant trend forecasted for the coming years is the rise of foreclosure investing. Due impart to exotic loans and the rise of interest rates, the amount of foreclosures nationwide is predicted to skyrocket in the coming year.

Perhaps you’re more interested in a preemptive move? Along the same vein as foreclosure investing is the trend of pre-foreclosure investing. Some of the same sites that offer foreclosure lists also offer pre-foreclosure listings. You can even get helpful tips on approaching owners who are in a financial bind. With pre-foreclosure investing you can avoid the auctions and wield more control over your transaction. Most importantly you would be helping the homeowner avoid a credit disaster.

With all the resources available online, foreclosure and pre-foreclosure investing is much easier than once considered. Some websites such as Foreclosure.com provide listings for foreclosures and pre-foreclosures. Foreclosure listings services also have helpful tools and resources making them a one-stop real estate investment shop.

Along with foreclosure and pre-foreclosure investing seems to be the strategy of holding the property as opposed to flipping and selling it right off the bat. Because the market has seen a rather abrupt slowdown, the profit is no longer in the flip but in the hold. Consider other options such as residual income from a rental property. Or it may be wise to invest more time and money to improve the property seeing as though there is no longer a need for conveyor belt housing.

Whatever your real estate flavor of the month may be, one thing is certain, real estate investing will always be a safe bet.

Florida Foreclosure Listings provides a complete guide to distressed properties throughout the state including the latest Florida real estate and foreclosure news.

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Real Estate Investing - 5 Reasons Why You Should Add Real Estate to Your Investment Portfolio

It may come as no surprise to you that real estate has created more millionaires than just about anything else out there. In fact, there is a government statistic that backs this up. According to the Department of Health and Human Services, only 1% of the population retires wealthy. That's anyone with a net worth of $5 Million or more. What's interesting to know is that the majority of this wealthy 1% club; about three quarters, did it through investing in real estate and business ownership.

You can choose to follow public option and listen to the media, or you can be smart and do what the wealthy are doing. They're investing in real estate, and here's why:

1. Income

How would you like to go on vacation for a month and still get paid? That's what real estate can do for you. When you own a portfolio of properties, you can receive passive income, or "mailbox money." This is the positive cash flow you get when your tenants pay rent. Build a big enough portfolio and your passive monthly income could swell into the thousands. I know one investor who purchases apartment buildings and his monthly passive income is over $100,000! The other type of income is active income. This is money you can make from various short term strategies, such as wholesaling, rehabbing, short sales, etc. Quick, lump sums of cash. Yes please!

2. Tax Deductions

Did you know that you can virtually eliminate your tax liability by investing in real estate? You see, as a real estate investor and business owner, you have over 400 tax deductions available to you. For example, the IRS generally will allow you to depreciate the value of the structure on a rental property over a period of 27 & 1/2 years. If you are a W2 employee, it would be like getting a pay raise. When I was working for a boss, I set my taxes up about even. So I didn't owe anything and didn't get any money back. Then one year I purchased a rental property, and when I filed my taxes the following year, I got a refund of over $10,000! Nothing had changed other than the fact that I bought the property.

3. Appreciation

Ask your parents what they paid for their first house. Of if you're a little more "seasoned" in age, think back to what you paid for your first or second home. Now ask yourself what that house is worth today. I bet it's hundreds of thousands more. Don't you wish you had bought 10 or 20 of them back then? What would your net worth be today? Even when the market softens and goes through an adjustment, it typically swings right back. According to the U.S. Census Bureau, Median Home Prices went down only twice in the 43 years between 1963 to 2006. Now if you were to look at 2007-2008, that may be the third time prices went down. But over time, real estate trends up. The population continues to grow and there will always be a need for housing.

4. Equity

It's possible to lose equity, no question, but when purchasing real estate, you should always purchase the property below market value. This creates instant equity in the property. What better way to increase your net worth? I have a student who purchased six properties over a twelve month period. Their net worth increased to over $250,000 as a result of this. How long would it take you to achieve this without investing in real estate? Probably never.

5. Leverage

This one is huge. Let's say you got a hot stock tip, and you went to your bank and asked them to lend you $100,000 so you could buy the stock. What would they say? Obviously they would laugh at you and think you're crazy. But let's say you wanted to purchase an investment property, do you think you could get a loan on that property if you have good credit? Absolutely. This is called leverage, or using O.P.M (other people's money.) When you do the math, even if you receive a modest 6% appreciation on a property over time, you would still end up with a triple digit return because you are receiving that appreciation on the entire value of the property, not just your small down payment. The wealthy understand this, and it's one of the reasons why they continue to get more wealthy every year. Because the poor and middle class invest in CD's, Mutual Funds, etc. while the wealthy invest in real estate.

These are my top 5 reasons why you should add real estate to your investment portfolio. Are there risks? Of course. Any investment involves risk, but there are things you can do to reduce your risk. The longer you wait, the longer you delay your success. If you want to maximize your chances of getting into that wealthy 1% club, retire early and live the life you have always dreamed of, then it's time to get in the game! If others can do it, why not you?

Paul Zelig is an independent business owner and real estate investor. Learn about a solution to overcome the common obstacles that prevent most people from investing in real estate and how to minimize your risks. Visit http://www.TeamNewRich.com to find out more and to get your FREE Roadmap To Retirement calculator.

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Real Estate Investing Wealth Building

According to research there is one thing that wealthy people has in common and that is that wealthy people has invested or invest in real estate. If there is one resource in the world that is slowly and surely diminishing it must be land. A person that owns land owns wealth. It has also been said that knowledge is wealth so therefore it must be said that a person that has knowledge and invests in property must be wealthy.

But does investing in property necessarily make a person rich? Property investing is definitely not a get rich quick solution and a lot of people seeing it this way burn their fingers quickly and therefore has a lot of negative things to say about investing in property.

Real estate investing must be seen as a long term process. The reason property investing works is the fact that over time property either keeps its value but more so it has been proven that real estate actually increases in value over years. Therefore it must be seen as a conduit or a means of transporting a person's money in order for money to work for itself.

This all sounds like a broken record if people say that a person's money must work for itself but that is exactly what investing in real estate provides. The other big advantage of investing in property is the fact that a person has full control over an investment and that a person needn't hand over hard earned money to somebody else in the hope that this person will make an investment grow.

Real estate investing is like a seed a person plant that has to be watered frequently and nourished until the seed grows into a big tree. Once the tree reaches maturity its benefits can be reaped to enrich a person. However patience has to be shown in order for the seed to grow and this fact has to be bourn in mind when it comes to property investing.

A person considering real estate investment should therefore get involved at a young age however it does not mean property investing has an age restriction as one of the key factors when it comes to investing in property is to buy the right property at the right price.

Being educated in what a person pursues is vital to success.

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Real Estate Investing Club - Learn How to Finance Investment Property

After thirteen years of real estate investing, I know that knowing how to finance investment property is a crucial part of any investor's success. Real estate investing clubs are a great way to meet investors who will share their experiences with you and possibly do deals with you. Getting a mortgage from a bank is not the only way to get started buying investment property, nor is it the best. Building relationships with other investors is a crucial part of success.

When I got started I was in my early twenties I was hard headed and persistent. I wish I had access to a real estate investing club, but I didn't. Some of my earliest investments were properties I bought from seasoned investors who were willing to offer me owner financing with terms where the properties supported themselves. In many cases I did need a down payment, which a bank would require and I didn't have. These investments were products of relationships I sought out with people who were willing to sell me property. I even did multiple deals with some of these investors.

The best way to learn how to finance investment property under terms that you can afford is to meet other property owners who are willing to consider alternatives to conventional financing. There are so many ways to do this depending on the situation. The only things that are required are a buyer and a seller who are open to making a deal. Reading books, speaking with real estate attorneys and networking with a real estate investor's club are important steps to take to learn how to finance all kinds of investment property.

For Insider Real Estate Tips and Strategies, Visit The Gorilla Real Estate Investing Club.

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Real Estate - Investing a Luxurious Property

Miami Beach is a well known place because of its pristine beach and the powder-white sand and the exciting nightlife. One of the tourist attractions in the city is the oceanfront. But you have to know that there are other things and activities that you can enjoy in the city such as world class restaurants, museums and galleries which include the Bass Museum of Art and the Jewish Museum of Florida.

Homeowners have a lot of reason for moving to Miami Beach real estate and this includes the relaxing under the sunny skies, merry making in the wonderful beachfront and enjoying the exciting nightlife and the various cultures that is within the city. And because of these things there are lots of people who want to enjoy staying in the city. And if you want to enjoy truly world-class lifestyle, then you have to pick your own home in Miami Beach real estate. And you do not have to worry because there are lots to choose from. If you are a potential buyer then you can choose from the different options that the Miami Beach real estate can offer you.

On of the benefits that you can take advantage of owning a property in a real estate is being close to the beach. Having a dwelling that is near to the beach lets you to swim in the wide beach front. You can enjoy doing some water activities like swimming, jet ski and parasail.

The place is also good for those people who are passionate walkers and joggers because of the boardwalk along the beach. Another benefit of owning a property in Miami Beach real estate is being close to the production and entertainment communities that add to the appeal of having a property in the city.

Now Miami Beach is connected to Miami by boardwalk that coffer easy admission to tourist and investors to its glamorous hotels real estate and residential developments and recreational amenities. It is a place where tourist keep on going back to the city and because of this tourism has become the bread and butter of the city.

As a matter of fact the main intention of the place is to make the economic to bloom and have diverse culture through the help of the tourism in the city. Aside from that, tourism contributed a lot when it comes to the status of the Miami Beach real estate. It has been known as a major leisure and business destination. With all of these things to enjoy in the city of Miami Beach, no wonder why there are lots of people who keep on coming back to the city.

Miami Beach Real Estate

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Real Estate Investing With a Real Estate Club

Las Vegas is a great place to live whether you are running a business, looking for a new home or would like to diversify and increase your investment portfolio and personal financial holdings. The Las Vegas Real Estate Market is an excellent opportunity to quite literally make all of your goals come true. Las Vegas Real Estate Clubs are created specifically to help you to capitalize on the many different aspects of Investing in Real Estate whether for personal, commercial or investment properties.

During these difficult economic times, people are often looking for new and improved ways to increase their investments. According to one recent story in the Las Vegas Review Journal "Home sales are showing steady growth in Southern Nevada as savvy buyers snap up some of the best deals in 15 years, many of them foreclosures that resulted from the subprime mortgage crisis and ensuing economic recession."

The key to successful Real Estate Investing is in knowing whom to talk to, when to talk to them and what to look for. These clubs provides the means and opportunities for people just like you to get together with investors, brokers and anybody else who may be interested in Las Vegas real estate investments for personal or professional gains.

Many people have recently seen massive losses in their investment portfolios. The stock market is consistently inconsistent these days and people who have been relying on 401ks' or other retirement investment accounts have suffered some severe financial losses. If you have not been getting great returns on your financial investments, perhaps it is time to look into a different market in order to not only begin showing some positive financial returns but to offer you long term gains on top of immediate returns on investments.

Real Estate has long been a viable investment opportunity. Whether you are purchasing your primary residence or looking for commercial or other investment properties, you can earn substantial financial gains but you need to know what to look for, when to look and even where to look fin order to maximize your earnings potential.

One of the most prevalent reasons for becoming a member of a these clubs is being able to talk to other investors, speak directly with brokers, real estate agents and experts in their respective fields, attending Real Estate Investment Workshops, and always having a bird's eye view of the current housing market.

Any situation is going to be made increasingly easy and profitable when you have an entire field of experts within the industry getting together and sharing ideas and information. The same holds true with Real Estate but that does not mean that your benefits will end there. Many profitable businesses and partnerships have been formed with much less in the past.

Being a member will help you to meet like-minded people that may actually be willing to help you increase your holdings and your financial portfolios in ways you never dreamt possible before. What happens when you put groups of investors together and throw in a burgeoning commercial real estate market? The possibilities really are limitless.

This article was wrote by Debbie who works for The Las Vegas Real Estate Club. For more information on this article or our Real Estate Investment Club, please visit our websites.

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