1. Your work is little more than showing up and having your papers ready.
2. Your attorney and accountant will know exactly what to do and will give you this information.
3. The average contract signing will take only about one hour of your time. The average closing will take about 1.5 hours. So you will invest about 2.5 hours, during which your attorney will be present to tell you which papers to sign and to explain the various details of the contract signing or closing.
Since the contract and closing stages are so routine in the purchase of income real estate, I am skipping the details here. Also:
• Your attorney will be at your side to explain every step in the process, should you ask.
Your attorney can explain what’s going on much better than I can. So I am sticking to the business and cash flow aspects of your income real estate deals in this book.
• Your attorney is an expert on the legal aspects of your transaction. And your book’s author is an expert on the business and cash flow aspects of your income real estate investments. After you buy your income property, you will probably receive some rent security deposits. These can range from $1,000 for a small property to as much as $50,000 or more for a large property. But you are not allowed to spend these security deposits; instead, you must keep them in a bank account where they are safe and secure for your tenants.
INCREASE YOUR PROPERTY:
Having made the improvements suggested above (which will take about two months), you are ready to raise the rents in your building. Here are a few guidelines I find work well in all types of apartment houses:
• Tune in to today’s economy by ridding your mind of ancient rent guidelines. Rents have risen enormously! Be sure you raise your rents to reflect the increases that have taken place.
• Never be afraid of losing tenants. You can always rent an apartment to someone else.
• The bottom line always is: You must make money on the property; otherwise you will have to get rid of it. So you must take action to raise the rents as soon as possible.
• Your tenants will usually be willing to pay higher rents if you improve the property. Thus, their sympathies will be with you when you take steps to improve your building.
• Be certain you know the numbers (income, expenses, profit) of your buildings before you raise any rents.
• Make careful computations so you’re sure that the increases cover all your expenses and give you a profit and positive cash flow (PCF). Never support a building by putting cash into it each month.
REAL ESTATE TIPS:
When will the nation’s property values begin to appreciate again? This is the $64,000 question that real estate professionals, investors, and mortgage professionals would like to know. The truth is nobody can accurately predict the return of the real estate market. Like everyone else, I can’t predict the end of this crisis either, but what I can do is tell you what will have to happen to facilitate that change. The answer is quite simple: America must reinvest in herself once again. Without an investment, real estate is as worthless as the Dollar is today.Think back, or read a history book, about how families in the ’40s and ’50s used to buy homes. Young couples lived with Mom and Dad during the “courtship” prior to getting married, until they had saved 20% to put down on their “dream home”. They made an investment in America, (i.e. the American dream). In the years that followed we have devalued that investment in lieu of credit and the easy access to it. Property values rose artificially and our nation became addicted to credit.
The value of the dollar has been demolished due to the same principle. When we place value in assets based on their ability to be easily bought and sold versus the value that has been invested in the asset, we devalue its worth. For example, two years ago I could have bought an $800,000 house (and I assure you that I cannot afford a house that expensive). The owner of that asset (the $800k house) placed value on his asset based on the availability of buyers like me who could buy the home. The problem is, this homeowner probably had less than 5% invested in the home. Where do you think that homeowner is today?
Had he put 20% down on his home, he would then own a valuable asset in which he has a real investment. This outlay of cash forces him to buy and sell his home in the same manner he would move an $800k investment around in the stock market – very carefully. Thus, the home has REAL value. However, having bought the home with little or no money down, the asset became disposable and so follows the real estate market.
So, as I said earlier, I cannot predict when the real estate market will bounce back, but I can tell you what needs to happen before it does. America needs to reinvest in herself by getting back to solid buying and selling principles. This strengthens home values, which encourages investors who employ builders who employ carpenters, painters, real estate agents, loan officers and so on. America was built on the “American Dream” which has turned into the “American Nightmare”; she can only be rebuilt by hard working Americans, not by Wall Street.
SUCCESSFUL REAL ESTATE BUSINESS:
In recent years, many economists have recognized that the lack of effective real estate laws can be a significant barrier to investment in many developing countries. In most societies, rich or poor, a significant fraction of the total wealth is in the form of land and buildings. In most advanced economies, the main source of capital used by individuals and small companies to purchase and improve land and buildings is mortgages — bank loans for which the real property itself constitutes collateral.With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Cities such as Vancouver, British Columbia have experienced remarkable growth in real estate prices in the new millennium.
Now a days property is play many role it is use as investing money or for a living purpose If your desire is invest money in property then it is not bad for now a days but u r looking for living reason then there are many precautions that is keep in our mind earlier than the buying .If you are moving out of your rented flat and you want to your bond back. Then decide which city is good for you & your future then decide to buy it .as we know that in metropolitan city the price is touch to sky then it is not easier to buy a house. Then you should city as your budget.
Because the amounts of money involved are typically very large, a majority of real estate development projects are financed with a large amount of debt leverage. Because expense is high, sale is difficult, and return on investment is delayed, real estate investment is inherently risky. A large part of the work of developers is the management of risk.
Successful real estate developers can become enormously wealthy due to the large sums of money being transacted and the value of the assets they control. However, because of the illiquidity of their assets, they are also very often cash-poor. Inability to remain cash solvent is the primary cause of business failure for real estate developers.
