Real Estate Broker Reveals the Insiders' Secrets to Making Money in This Market

Real estate has challenges today, but those challenges do not have to stop you from making money in real estate. A ten year veteran real estate broker reveals insider secrets on how to make money in any real estate market.

To keep expenses low you must be aware of your expenses. Your expenses may be:

1. Property taxes
2. Insurance
3. Maintenance
4. Mortgage

Despite the fact that an investor is not eligible for exemptions on income property, there are other ways to decrease the property taxes.

The investor must first understand how property taxes are calculated by the treasurer. To calculate the property taxes, the tax rate is multiplied by the assessed value. The tax rate consists of:

1. Police
2. Fire
3. Schools
4. Library
5. Trash removal
6. Health
The assessed value in most states including Indiana is some variation of the market value for the property.

The investor can lower his or her property taxes his or her property taxes by examining what the property is assessed at. Filing an appeal is recommended when the property is assessed for more than the investor paid for it or when the property is assessed more than the current market will bear. If successful with the appeal, the investor can save a lot of money.

The investor can save money on insurance, as well. The investor can have a higher deductible. The deductible is deducted from the claim with landlord or homeowner's policy whereas with auto insurance the consumer must pay the deductible before the claim is paid.

The investor can also reduce his or her replacement cost to 80% of the value; therefore, the investor will reduce the premium for the insurance. This tactic is only advised if there will be enough available after the deduction to pay the property's mortgage and/or money available to start on replacement of the property.

Still yet another way the investor can save money on insurance is by changing insurance companies. Yes, shopping around is another way to save money on your premium. Use caution here make sure you are getting similar or better coverage than you had before when changing insurance companies for a lower premium.

By setting aside a certain amount from each rental payment, the investor can reduce the cost of major repairs. By setting aside a little of the rent, the investor can be prepare for major maintenance issues.

Another way an investor can save money on maintenance is by having a home warranty. To cover most major components in the investment property, it is recommended to have a home warranty.

Shopping around is always the best way to save money on a mortgage.

Making and saving money in real estate is done by researching and shopping around for the best rates and values.

Serena Brown has been serving her community with her real estate expertise for over 10 years. She owns and operates Taylor-Brown Real Estate.

She has authored several blogs and books on the subject of real estate.

She has degrees in Electronic Engineering Technology and Business Administration.'

You can read more of her writings at http://www.taylorbrownrealestatetalks.com

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Real Estate With Venture Capitalists - Making Money In Real Estate While Somebody Else Pays!

An interesting thought for many new real estate investors is that sometimes other people will pay you to invest in real estate! These people are called venture capitalists or "private equity" and they usually fund the buying if they trust that the investor can resell it at a profit to them.

The venture capitalist would receive the largest share but the investor would receive a large commission from each sale. The main benefit of this is that you do not risk any capital when you buy and you are often able to invest far more than you would have done otherwise.

However, in order to find a venture capitalist and persuade them that you are good real estate investors there are some important steps that you must take. You can find directories venture capitalists online with a quick search using Google but this is the easy part. The more difficult aspect of this for a investor is convincing someone to put their money in your hands and to allow you to invest it in real estate, primarily when the market today is in dire straights with foreclosures.

One of the best ways for a real estate investor to do this is experience, some documents of old investments and the profits made on them. It is essential to have proof that you are a good investor before persuading a venture capitalist to invest in you.

More importantly, as a real estate investor seeking private equity you need a business plan. Your business plan needs to be carefully designed, legible and to show that you have a careful real estate foreclosure investment plan. It is your proof that you are choosing sensible properties to invest in and it does not need to be "glitzy", just solid and rational.

In order to sell yourself to the widest range of investors possible you need to write short and easily explainable thoughts and make certain that you accurately convey your 'step-by-step" plan towards their profit. You need to find the basic steps that made you successful with real estate in the past and write that down as an outline.

It is very easy to find free templates for business plans online that will help you to persuade a venture capitalist. However, these will only help you with outline and not with the technique that you need to be able to sell your skills as an investor to a perfect stranger.

The technique that you need is to write a business plan that explains in simple language how you propose to make money using the real estate market. If you have done it before then all you need to do is to write it down.

In this plan, you need to detail the types and sizes of the loans that you will need to invest in the properties. Above all, while writing this plan you need to constantly keep in mind the ways that you are planning to benefit the venture capitalist. Explain exactly how you will ensure that their investment is safe and a rough calculation of the amount that they will make.

Be detailed and specific but simplified and make sure that you feel confident in your abilities as a real estate investor. Don't be arrogant but do be confident. This will rub off on your potential venture capitalist.

Thomas Bladecki is the author and can provide additional information about the current foreclosure market and how to capitalize on Home Forecloures.

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