The real estate market is one where a profitable investment is always to be found somewhere amidst the foreclosure lists or lying dormant on an agent's desk. This guide aims to give you the background necessary to allow you to find profitable real estate investment.
First, the key to profiting with real estate investments is to find a highly motivated and urgent seller. This is something that is quite easy to do in today's market as foreclosures are at record highs with a long ways to go in order to get back to "normal". The idea is to negotiate a lower price on a piece of property; requiring a motivated seller. Foreclosures are a prime target for investors as the seller usually is in a position sell their house quickly or desperately. If you are talking to an unmotivated seller on the telephone, it will soon be very clear that you are not going to get a discounted price on this property, which would not make it a very good real estate investment. If the seller, or the bank, is motivated then you may be able to negotiate a lucrative deal.
One counterintuitive aspect of real estate investment is that you normally make a profit when you buy real estate and not when you sell it. This means that, while there is often little you can do to increase the value of the property; sellers are human and are often willing to negotiate their price. Saving money while buying real estate is the key to selling homes for a profit, this is what makes a good real estate investment.
With that in mind, you need to develop a list of properties that you are considering investing your money in. You will need to view around ten pieces of property before you carefully choose which one will be the ideal real estate investment. One useful technique for sourcing profitable a real estate investment is to interview the agents; the people that profit on a daily basis. Interviewing an agent and finding out if they own any real estate investments could be productive; also very useful. Remember, most of them will be more
NYC Coop Sales Price Now Public Information
It's an old axiom that, despite increasing numbers of condos, coops still account for around 80% of NYC's apartment inventory.
Yet, until recently, the sales figures were shrowded in mystery. No more. A recently passed law allows access to these figures through use of the City's ACRIS system. While the link may not be up for long, you can find a pdf guide to how the system works at NYC.gov/html/dof/html/jump/acris.shtm.
Noah's Ark 2006
In the year 2006, the Lord came unto Noah, who was now living in the United States, and said, "Once again, the earth has become wicked and over-populated, and I see the end of all flesh before me.
Build another Ark and save 2 of every living thing along with a Few good humans."
He gave Noah the blueprints, saying, "You have 6 months to build the Ark before I will start the unending rain for 40 days and 40 nights."
Six months later, the Lord looked down and...
Commercial Rent Prices Up - Square Footage Down?
A recent article in Business Week suggests that the open space model of the dot com era may, actually be a paradigm to enable businesses to reduce one of their largest expenses, namely, commercial office rent.
Yet, the position of the author is hardly universally shared, eliciting a number of rejections and criticisms in the posted comments following the article.
From my own experience, there is no doubt that, technologically, more and more things can be done in more and more places....
Bubble Metrics
I came across a very interesting website, that of the Center for Economic Policy Research, an organization that's done alot of looking into the housing bubble issue and that has alot of articles that you'll find interesting and informative.
What's really noteworthy, though, is a unique bubble calculator that seeks to measure whether you'd be better off renting or buying by plugging in the price, mortgage terms, location and projected hold time into the fields, which then takes into...
Expected Report of Year Over Year 2nd Qtr Condo Price Declines
Today's NY Sun reports that an expected industry report on condo prices will show softening on a year over year basis for the second quarter.
As the article recites, industry analysts opine on whether they foresee a repeat of the coop collapse of the late 1980's when oversupply combined with softening demand and tax reform to cause a sharp drop in prices.
Some, according to the article, feel the City's overall healthy economy will prevent this recurrence in the case of...
Worried about Interest Rates? Tell that to the Rent Guidelines Board
In an unusually raucus session of the Rent Guidelines Board's annual spectacle on guidlines increases for rent stabilized apartments in NYC, the Board members could hardly hear themselves over incessant drum beats from Tenant activists, yet still managed to outrage them, while disappointing landlords in the process.
Read about the meeting and the increases at <a...
Problems When the 1031 Tail Wags the Dog
Here's an interesting article about what happens when investors, in their zeal to meet the stringent time requirements of a 1031 exchange, invest in properties in areas they're unfamiliar with and do so without their usual degree of due diligence.
<a href="http://www.realestatejournal.com/buysell/markettrends/20060615-hagerty.html?refresh=on" >http://www.realestatejournal.com/buysell/markettrends/20060615-hagerty.html?refresh=on</a>
Everybody into the Pool!
When it comes to Terrorism Insurance, the government's days as a reinsurer of last resort are numbered, ending in 2007 following one extension of a temporary act intended to restore confidence among the Nation's insurers and reinsurers following the huge losses suffered as a result of the 9/11 attacks.
A lobbying group called the Real Estate Roundtable, <a href="http://www.rer.org/," >http://www.rer.org/,</a> recently proposed modeling a future system after that...
Taxes and Commercial Real Estate Activity in NY
Today's NY Sun has an interesting article sure to reinvigorate the timeless intellectual arm wrestling about whether booms and busts in real estate are primarily driven by tax policy or the business cycle.
This article focuses on the infamous "Cuomo Tax", formally known as the Real Property Gains Tax, enacted in the '80's by then Governor Mario Cuomo. In short, the tax that excluded townhouses and one and two family houses, surcharged capital gains on most other...
Another View on the Bubble-No Bubble Coin Toss
Glenn Roberts, Jr. of Inman News today quotes from findings of the Anderson Forecast, an economic report out of UCLA.
According to the report, housing is more likely to head for a crash rather than the gradually deflating balloon we've all be hearing about lately.
For more, check out the article ( subscription required) at <a href="http://www.inman.com/hstory.aspx?ID=53488" >http://www.inman.com/hstory.aspx?ID=53488</a>
than willing to sit down for an interview because you, hopefully, will use them to finally conduct the transaction.
Agents understand the market "inside out" and can be an excellent source of investment properties with low prices because others have not seen or understood the potential of them. After you create a good relationship with a local real estate agent, you will typically receive a phone call every time they notice a good property reach their desk. Remember, they receive a lot in return for this relationship because the more real estate that they sell the more commission that they earn. Therefore, they will be motivated to help you find the perfect investments.
Another very useful method for sourcing great real estate investment is the use of foreclosure lists. You can check out websites to find resources for finding foreclosures properties and to get possible deals emailed to you. Typically, you will have to pay a subscription fee to access this information but it is definitely worth the cost. Who knows, you may find the "mother lode" of all deals.
In order to profit from foreclosure lists easily and quickly, follow these steps:
First, buy the daily foreclosure list for your area and flip through the pages Select only the properties that has have been on the list for less than thirty days Highlight the ones that are within your budget Look particularly for ones located in nice surroundings or desirable neighborhoods and only select properties that are within fifty miles from where you live. Using the internet, access the local tax records and obtain the tax value of this particular piece of property
Once you have picked a few potential properties then ask your agent to take you for a viewing. If you are happy with what you see then you can contact an appraiser, make sure that the house is structurally sound. This step is necessary to ensure the value of your investment.
At this point, you will be in a position to make an offer and to attempt to "buy low" in order to "sell high".
Admittedly, finding a profitable piece of property is usually the result of a small amount of hard work. However, this article has put you at a great advantage regarding real estate investment. The rewards of finding valuable properties speak for themselves. Buying an under priced investment can mean profits of tens of thousands of dollars.