Posts Tagged ‘investment strategy’

An Investment Strategy That Really Works

Thursday, November 19th, 2009

One of the greatest strategies for investing in the real estate market is real estate deed trolling. This effective strategy really works. In fact, a great number of investors in the real estate market are using this strategy today to gain substantial wealth.

More and more people are getting ready to pen eBooks and newsletters on the subject. However, real estate deed trolling is as simple as getting a list of upcoming properties in a tax deed auction, and then getting in touch with the owners who are on the verge of losing their property and willing to sell it to you at a very nice price. Once you purchase the property, you will be able to resell at a higher price and pocket all of the profit.

Where to Start

The first step toward real estate deed trolling is to pay a visit to the office in your area that is in charge of auctioning off tax deeds. You will be able to obtain the list of properties that you need from there. The report will include any mortgages, judgments or liens as well as any parties or owners who have an interest in the property legally.

This file will also include copies of deeds, documents, owner notices, correspondences and much more. As you are weaving your way through the properties that are to be auctioned off the highest bidder, make a note of any legal descriptions, mortgage and lien amounts, property identification numbers and owners. Now you have your list for real estate deed trolling.

This is just the beginning. Once you begin putting the list to work for you, you will be able to obtain real estate deals that you never thought possible. On average by using the real estate deed trolling investment strategy, properties are purchased for at least 20% below market value. This opens the door for huge profit.

Property Options Australia
Property Options Blog © 2006 - 2009

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Effective Collaborating

Thursday, October 8th, 2009

These days, many investors are wondering what exactly the secret to effective collaborating is. The truth is that the answer to such a question varies from situation to situation. In fact, there truly is no secret to effective collaborating. On the contrary, a number of moves must be made toward reaching your goals if you plan to be successful. Precise agreements, communication and explanations are all vital to a successful collaboration.

Collaborating can be a tricky thing to do. Having a partner may be very advantageous for you, as well as provide you with knowledge that you need to make the entire investment process that much easier. Several investors often come across a property that is a real deal, but like the funds to make the investment. One advantage to having a partner is in a situation such as this your partner could put up the funds so you do not miss the deal. You will also benefit from the resources that a partner will bring to the mix, some of which are otherwise unobtainable.

What Next

Once you have made the decision that collaborating is the investment strategy that will work best in your situation, the next thing you need to do is recruit the ideal partner. Some investors choose to become members of investment clubs in order to make the process of finding a partner quick and painless.

Be clear and honest with each prospective partner that you interview. Ensure that they are aware of your terms, conditions, and what you expect to get from the partnership. Clearly stating all of the details in the beginning could prevent future confusion.

Collaborating in the real estate industry is usually beneficial for all parties involved. However, at times it may take a little more work to ensure an effective partnership. In fact, you will find that some partnerships simply do not work at all. You may have to go through a process of trial and error in order to find the right partner that will help you accomplish your real estate investment goals most effectively.

Property Options Australia
Property Options Blog © 2006 - 2009

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Possible Investment Strategies

Saturday, September 19th, 2009

The primary strategies for investing in the real estate market are bargain purchase, double-digit capitalisation rate and increased value. All of these strategies work in their own way and will help you to effectively create the steady flow of income that will give you the wealth you desire.

Bargain Purchase

A bargain purchase is when you purchase a property for a minimum of twenty percent less than the current market value. Right now is the perfect time to find a bargain purchase. With more and more homeowners being motivated to sell due to foreclosure, unemployment or a number of other situations, it is easier than ever to find a great deal.

Increase Value

You may decide that the increase value strategy is the way you want to go with your investment. This is the term that is used for purchasing a property at current market value with the realization of untapped potential. You make any necessary changes and repairs to the property immediately to increase the property’s value. In order to be successful, you need to increase the value of the property by no less than twenty percent within six months from the time you make the purchase.

Double-digit Capitalization Rate

Double-digit capitalization rate is the term used to describe buying a property on the terms that the capitalisation rate is at least ten percent. To calculate the capitalization rate, you need to figure your income minus your expenses for operating and maintaining the property divided by the amount that you pay for the property. This is the rate of return that you would see if the property were in your possession free and clear. Double-digit capitalisation is rare, occurring most often in small market niches or depressed markets.

No matter what type of investment strategy that you decide to put into motion, you need to start with the most important investment: yourself. Take classes and attend webinars as often as possible. It is important to always be learning in order to stay on top of the market and be successful.

Property Options Australia
Property Options Blog © 2006 - 2009

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How To Choose An Investment Strategy

Wednesday, September 16th, 2009

A number of different strategies can be used to build your career as an investor in the real estate market. They road to success begins by knowing which strategy is the best one for you.

Long or Short-term

There are two different holding period categories, flipping and long term. If you decide to go with a long-term investment, then you have decided to hold the property for a number of years. Many investors take this route to successful investing.

When you choose to flip a property, you sell as soon as possible once the purchase is finalized. In many cases, you may even be able to sell the property before you purchase it or at the same time. Selling before you purchase or simultaneously is possible in theory and successfully accomplished from time to time by skilled investors.

What Is Your Schedule Like

Different investment strategies take different amounts of time to execute effectively. If you have a full-time day job or do not want to devote all of your free time to the real estate market, you need to choose an investment strategy that is the least time-consuming. If your job requires you to work by the hour or at a regular salary, you most likely will not be able to pursue a strategy that requires you to deal with the real estate market during your normal business hours.

How Much Do You Have To Spend

Some investment strategies, such as investing in foreclosed properties, require you to have a large amount of money on hand. Others, such as builder auctions, require very little or no immediate payments.

Stick With What You Know

Are you mechanically inclined or more familiar with legal issues? You need to find an investment strategy that allows you to use your strengths to your advantage, while steering clear of your weaknesses.

People Skills

Perhaps one of the most important factors to becoming a successful investor in the real estate market is your people skills. If you hold your properties long term, you will be a landlord who must deal with all types of people. If you invest in foreclosures, you need to be able to negotiate with sellers to get the best deal.

Property Options Australia
Property Options Blog © 2006 - 2009

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Have A Clear Strategy Without Distraction

Wednesday, July 1st, 2009

Too often, real estate investors put their money into a property based on what someone has told them, such as the value will rise or a discount is offered. All too often, investors make a purchase without first establishing a clear strategy, or they purchase the wrong type of investment property to meet their specific goals.

contemplate1In addition, there are times when an investor will have a strategy they are working with that is reasonable, but then they are distracted by a fresh deal that does not suit their overall goal, or purchasing a property in need of restoration without the means to complete the work.

It is critical that you plan your investment strategy before you purchase your first investment property. When drawing up your plan, you must take into consideration the amount of time, money and expertise that you are willing to put into each property.

Create A Strategy That Works For You

Too often investors try to create a strategy for investment that is too broad. For example, there are investors who will buy individual pieces of real estate in a number of different countries. Although they may be getting good deals, managing finance, legal and tax issues can be difficult.

Instead, it may be better for you to aim for two or three investments at a time, making it easier to watch the overall market. It is best to be an expert in a couple of markets, than to be spread too thinly over a large number of investments.

Be sure to include an efficient exit in your investment strategy. It is extremely important to know how long you plan to hold each property, as well as what it will take for you to sell. Your strategy plan should detail how soon you plan to sell in order to effectively estimate your overall profits.

To sum it up, your investment strategy is very important right from the start - you
must consider:

• How will you invest your money, such as commercial, multi-unit, etc.?
• What are your goals, such as profit and timescale?
• How much time do you want to put into your investment for renovations, etc?
• What is your exit strategy?

Property Options Australia
Property Options Blog © 2006 - 2009

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