Real Estate Network

Archive for April, 2011

By:

QMS Financial

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Some of you may be wondering what the Infinite Banking System is, while on the other hand, others may wondering how to leverage it with their real estate career. As a real estate investor or broker, you are likely aware about how hard it is in the current economy to help clients obtain financing as well as, see it all the way through to closing. The idea behind the Infinite Banking Concept is to be able to leverage your own money to finance your own purchases while not losing the ability to earn interest on that borrowed money.  As an added benefit, you enjoy the luxury of paying yourself back the principal and interest that you would have otherwise paid to a lending institution and, more importantly, you still have ownership of your newly acquired property. Just think of what your financial situation would look if you could have the principal, interest, AND the property of all your real estate acquisitions.  Yes, many of you may be thinking, well if I had the money I would consider that strategy, but finding this capital to begin with is often the challenge at hand.

One source of capital for you to consider is money that has been stocked away dormant, waiting to be used. For example, some of us may have a personal, Self-Directed IRA, or some other retirement account. Ideally, as a real estate investor you would like to leverage the property yourself and eliminate the burden of time and paperwork the banks place on you.  In today’s market, quick timing is of the essence and in order to get the deal done it is crucial to have your own cash readily available for your real estate acquisitions.

You hear many people say that today is the greatest time to be investing in real estate.  While I cannot disagree completely, I would do so on some level. Real Estate itself is not necessarily seasonal.  Though it does fluctuate with the market conditions, anytime is a great time to invest in real estate given the proper timing for the right property! So get out there and start investing! Throughout the remaining portion of this article, we will explain why the Infinite Banking System is a great tool to be used as a way to finance your own real estate purchases. We will also look at how both can be used conjunctively to accomplish your real estate goals.

As a precursor to writing this article it is important to briefly explain how the economy affects real estate investors. Most of us know that the real estate market, like all types of investment markets, operates in cycles. We know this. We also know that the issuance of sub-prime loans in the past has caused mortgage lenders and brokers alike to become stricter on their loaning practices. During the sub-prime mortgage crisis we noticed a lot of individuals who over-leveraged themselves. The simple effects of supply and demand were the roots of this lending crisis. When lenders became more lenient on lending practices (i.e. sub-prime mortgage lending), financing could be taken, and in some instances, with 110% LTV (loan-to-value). This opened the door for many people, who were not necessarily experienced, or financially qualified, to come rushing in blindly and purchase homes way above their means. As we now know, this created an influx of demand, which caused prices to skyrocket, sometimes above their assessed value. As time went on individuals realized that they could not afford these investments (maybe due to some sort of balloon payment, or simply because their income could not afford the extra burden). Either way, individuals started selling or walking away from their homes because they were unable to afford the payment on their mortgages This increase in the supply of real estate inventory started a time period where there was a great opportunity for investors looking to get property to start buying it up. Due to this excess of bank-owned and foreclosed properties, prices of homes were pushed down to extreme lows where soon thereafter, a “Buyers Market” emerged.

So as the mortgage industry started to become a lot stricter, many investors became unable to qualify for financing even though their track record might prove otherwise. So now I will get to the bottom of this article. Using the Infinite Banking System you can become your own bank. No lenders, no pre-approvals, no underwriters, nothing! You simply get to agree to the terms that are fit for you and let the Infinite Banking System do the rest. You will have to have a similar interest rate that a conventional bank would charge you, but just remember, you are paying yourself back so the higher the interest the better. You can structure to pay yourself off when you close and take your money and principle back at closing, or you could pay yourself back in monthly installments. Using this concept the terms are decided by you, not the bank.  As you pay yourself back, you now begin to realize the profits the banks normally make in addition to your return on the real estate investment!

So at this point you might be asking yourself, “Well where am I going to get this money from?” There are many different places to get your money from and we will explain the 401(k) plan in a little more in detail to help you better understand the benefits of the Infinite Banking System. We will also list a few other sources as well.

(1) – Most, if not all, of us have some sort of retirement savings plan. It has been drilled into our mind that if we want to not work our whole life, then we should start investing in a 401(k) retirement plan. As you might already know, there is a penalty for taking money out of your retirement account before the age of 59 ½ years old. One benefit of the Infinite Banking System is that you have absolute freedom to utilize your account for whatever purposes you want with no withdraw fees. For example, lets say that you find house for sale for $ 55,000.

You could either take a loan out against your 401(k) or just pull the money out and pay the penalties the taxes.  If you decide to take a loan out, you are limited to the lesser of 50% or $ 50,000.  You also lose the opportunity to earn interest and gains on that money within the 401(k) and may not be able to make further contributions to your 401(k) until that money is paid back.

If you decide to just pull the money out of your 401(k) and pay the penalty and taxes, you will need to pull more than the $ 55,000 out to compensate for the immediate loss and, like in the first example, you give up the right to share in the interest and gains that could be realized if that money were left in the 401(k).

Now, lets say you use your own bank instead through the Infinite Banking Concept.  You withdraw about $ 75,000 (sufficient amount to cover closing costs, repairs, etc.). Lets say you charge yourself 12% with a payback in 30 years for loaning yourself the money. If you were to make monthly payments, you would be looking at around a $ 880 payment, but for this example lets say you are a creative real estate investor and you plan on flipping the house in 6-9 months with the plan of paying yourself back at closing. Six and a half months go by and finally you have sold the property for $ 95,000 dollars! What would be your cash back to you as an investor? So after you look into it, you calculate that 12% return on the initial  $ 75,000 would be $ 84,000 (1.12 *$ 75,000).  That whole $ 84,000 goes back into your own bank now, not the 401k, and can be used again, and again, and again, The capital gains on the house minus the payment of principle and interest to your Infinite Bank account would be $ 11,000. Your total cash out is $ 95,000! Minus the taxes on capital gains and the cost to take money out of your 401(k) you are looking at coming out with a good chunk of cash with additional money to re-invest. Now how good would that feel to recapture all your money back like that! Now you are free to start the investing back up and start building that Infinite Bank Account. Remember, that the Infinite Banking account is like your 401(k) plans in that you are going to be making payments into it monthly, and at your terms. This is just one option to consider. Other investment vehicles can be used to generate money from to help rocket your real estate career to the next level!

(2) Personal Trust Fund

(3) Re-finance your mortgage on your house

(4) Insurance Policy

(5) Self-Directed IRA

(6) And More!

The real reason why the Infinite Banking Concept is so great is that it gives you full control of your money and allows you the ease of setting your own terms as your own bank. For real estate investing purposes it can be a great way to ease the burden of the banks off of your back and let you be the bank! So understanding that the economy is going to change is something that we should all be aware of but, like we said, there will always be great deals out there. The financing you need though, will not always be there at the drop of a hat, so utilizing the Infinite Banking System to help leverage your real estate career might just be the best move you make. And like the game of chess, move yourself into a position to checkmate anything that stands in your way.

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For more info on the Infinite banking Concept please visit www.qmsfinancial.com or send an email to Justin.howard08@hotmail.com. Start your real estate career at the next level today!

Thank you for your time and may greatness be on the road ahead of you in your journey to success!

Perhaps the greatest and most potentially troubling component of sprawl today is actually deforestation. Towns and villages, farms and ranches ever expand into the countryside, eliminating wooded areas in their paths. As people around the globe fell trees for use as fuel, or to clear land for farming or ranching, the world’s total stockpile of forests continues to shrink. It is estimated that today more than 32 million acres (13 million hectares) of forest are lost each year — a total area greater than that of the seven states of Connecticut, Delaware, Maryland, New Hampshire, New Jersey, Rhode Island and Vermont combined.

As that forest is lost, climate change can be exacerbated, and erosion and siltation can both diminish arable land, and alter or deplete river flows throughout the world. Desertification and drought can follow where loggers and farmers have gone before. Gone with the disappearing forests are many species and the broader gene pool that contribute to planetary biodiversity, as well as many as-yet-undiscovered natural products, chemicals and medicinal aids that could otherwise benefit humanity.

Shantytowns are another form of sprawl. Most often settlements of the poor and dispossessed, clustered about large cities, shantytowns usually consist of incredibly dense agglomerations of dwellings, built primarily of scrap materials and lacking proper water supply, sanitation facilities, electrical power, telephone networks, and road systems. Such towns are often riddled with crime, disease, drug use and high rates of suicide. Shantytowns thus place severe burdens on the urban infrastructure — police, fire, health care, water, sanitation, communication, transportation, social services — of their host cities.

The sprawl most Americans readily recognize is that of the burgeoning suburb and the emerging ‘edge city’. Since 1950, more Americans have lived in suburbs than in any other type of community. Such suburbs are typified by the prevalence of single-family homes situated on individual plots of land, often in homogenous ‘developments’ created by single real estate or construction companies. The gridded streets and taller structures of the cities give way to more varied roadway patterns and single-story structures of the suburb. All commercial activity disperses to low buildings fronting on sizable parking lots. No one walks in a typical suburb, for nothing needed is ever within walking distance. The auto therefore becomes essential, and shapes much of a suburb’s texture.

An edge city differs from the average suburb, in that it concentrates a significant mass of office and commercial space, usually in mid- to high-rise structures, and thus often offers more jobs than bedrooms. It can most often be identified as ‘a place’ and a destination. Also, edge cities are relatively recent phenomena, emerging only since about the late 1960s, and sprouting rapidly.

Buying a house can be a crazy, stressful experience, and moving in and redecorating can be even worse. So why do we love watching shows about this topic? My opinions on the topic are below:

* It’s fun to watch people make the important decision of buying a house. We get to see what matters to the future homeowners and compare their thoughts to our own. We decide which house we think the buyers should choose, and get to be surprised (and sometimes horrified) by the buyers’ decisions.

* It’s interesting to see how far money goes in different places. For example, you’ll need a lot more money in California than Kentucky to buy identical homes. You also get to see different home styles in different places. For example, you’ll see different home styles in New York and Texas.

* House Hunters International lets us see countries we may never visit and may have known nothing about. It teaches us about life in other countries, and we get to see what homes look like in the other nations. It can be really fascinating!

* House Hunters can make us frustrated, but not in a way that’s too maddening. We see people want more space for less money, when we know that it’s impossible. We realize how much further our money would go if we moved to a different state or country. We laugh as people moan and groan about floor plans that aren’t open enough or backyards that have too many weeds. We realize how trivial the concerns are, and get a bit of frustration, and a laugh, from it when the buyers don’t realize how silly they’re being.

* It’s very neat and clean. We see buyers looking at three houses, and everything is wrapped up in a neat little bow by the end of the episode. There’s no wonder or stress at the end of the half hour House Hunters episode – you know that the featured House Hunters participant will either buy a house or walk away with a clean little excuse about needing more time or money or something.

* We don’t believe it too much. Some lines feel a bit scripted, and the real estate agents are all perky, fun and have television presence. Plus, if you’ve read this article or one like it, you know that the show isn’t always quite as real as it seems. Sometimes, the show will get people who are closing on a house and show them two others as decoys. In the end, the homeowners choose the house that they are already buying. (This could explain why it sometimes seems like homeowners are making a bad choice…they probably didn’t see the nicer house before bidding on their house!)

* The whole family, or groups of friends, can watch the show. Unlike many reality shows, the show is almost entirely unoffensive. Plus, everyone can watch it as intently or mindlessly as they choose.

The changing realities of time always ask you to be in close connection with every business venture that is happening around. You have to think and plan for a career that is going to benefit you for long. If you have made up your mind for change and progress then Real Estate Investment Business is really worth giving attention. You may not have a prior training and even feel bit shy about selling something. I know, it’s a big dilemma for so many people and they simply refuse that “I am not a sales person”.  You have to be away from such thought process and look at the variable changes in economic structure of our country. You are going to fight the “Survival of Fittest” battle.

When you are determined, to enter into survival game of saving yourself from bankruptcy and even unemployment, then you have to consider the positive elements of Real Estate Investment business. Most of negative thoughts arise due to ignorance of the facts, and how much smooth is this world of property investment. It is really made more simple and within reach due to the presence of Private Money Lenders. These guys have changed the overall psyche of this business, and it is open for everyone, to practice and get his own share of fortune. Things were not as simple before the arrival of these private money lenders. But you can easily plan for your own long term stay in this business domain.

Now, you may be facing a common question as how you would be able to cater the needs of the industry, as if you are totally a stranger in this field. I am telling you that Real Estate Investment is not that simple and it makes you to investigate different meanings for getting full on-hand training. There are some of good private money lenders engaged in coaching and consulting of their potential clients. Then you can get some formal training from different colleges or universities, but I would recommend you to get attached with a professional investor. It is a very useful technique as it would make it possible for you to get a practical knowledge of what are really required or what is only a theoretical term in real estate investment business.

Things are really going to benefit you on long term basis, only if you are determined to enhance your capacity. You can ask that veteran investor, to take you as a trainee and without any stipend. I am sure it would cause a positive effect otherwise most of investors would simply refuse your request. Further enhancement in both of your relations comes, when you are going to tell him that your Real Estate Investment career would also benefit him too. Yes! You are going to ask him to be equal partner in all property deals that come to you during your training. He has to do nothing as you would search and make deals with brokers, find loans and then resell the property. But his fifty percent is right there waiting for him!

How to get your real estate license online in Arizona

Getting you real estate license online in Arizona has become a very easy and cost effective process. The real estate market is strong in Arizona and there is a need for real estate salespeople to help guide residents to new homes. A career in real estate can be very emotionally rewarding and financially lucrative. Arizona’s strong real estate market could spread all the way from Flagstaff to Tucson and it include a very diverse clientele and real estate market. If you have already decided that a career in real estate is for you, than continue to read for details about how can get your Arizona real estate license online.

Step 1. Choosing the right company to get your real estate license from is the most important decision in this process. Make sure to do your homework and find a company that is established and has a proven track record. There are many companies that offer real estate courses in many states. The company you choose will be your best resource for information regarding any continuing education requirements you’ll need and market conditions. We think that The Professional Development Institute is a very reputable and established real estate school that has a track record of producing highly successful real estate professionals. Their online programs are very affordable and full of the information you will need to prepare for the Arizona real estate exam. For more information about their programs visit online classes.

Step 2. While taking your online course make sure to set a date for your Arizona real estate exam. This will give you a target date to complete the course by. This is a great way to keep you on track and motivated. Be sure to give yourself enough time to complete the course when choosing the test date.

Step 3. Also, while taking the course, start to get involved in the community. Joining networking groups or other professional groups is a great way to get your name out there. Making relationships now will greatly benefit you once you are a licensed real estate professional.

Step 4. Be prepared to come up with ways to get your name out there. Whether it is business cards or fliers start thinking about places and ways that you will be able to let people in your community know that you are now in the real estate business and that you are eager to help them with their needs.

Step 5. Stay focused while studying online. It is easy to get too busy and push your real estate course to the side. Remember what your priorities are and follow through with your goals. Setting a specific block of time aside each day or each week is a great way to stay focused and dedicated.

Creating a strong reputation for your self is very important. Choose a school that is known and recognized. The Professional Development Institute is an incredibly prestigious place to study from and their prices are very affordable. We strongly recommend you start your real estate career with them. Their website is http://www.pditraining.net

Best of luck to you on your journey towards a successful real estate career!

Ukraine, the second largest country in East Europe, with an area of 603,628 kilometers, is bordered by the Russian federations on the north-eastern and eastern sides, Hungary, Slovakia and Poland on the western side, Belarus on the north-west and Moldova and Romania on the south-western side. A large number of international real estate investors are aware of the rapid development of Ukraine Real Estate.

The prices of real estate in Ukraine, particularly in cities like Kiev have escalated to a great extent over the last few years. Due to this, the buyers who purchased real estate in Ukraine in the early 1990s for a small price of few thousand dollars and now extremely happy as they have witnessed a sharp rise in the value of their property up to 40 percent every year. Add the revenue that you received from Ukraine rentals and you have a wonderfully profitable asset in your hands.

A number of international real estate investors made their decision to enter into the Ukrainian property market following the Orange Revolution which showed everyone that Ukraine has extremely strong democratic as well as European leanings which is most likely to continue in the same way in future.

Obtaining real estate in Ukraine is quite simple and convenient. The appreciation of property rates started during early 90s after the economy of Ukraine hit rock bottom and was more prominent in larger cities like Kiev, Lviv, Odessa and Dnepropetrovsk.  Following this, the prices of the resort areas in Crimea began escalating. At present, the price of Ukraine real estate in the city of Yalta is even higher than the capital city of Kiev. In the late 1990s, the prices of property in the different vacation areas of the country began to rise.

Property values in the country are not expected to halt their growth any time in the near future. According to the international real estate analysts, the main causes behind the growth of prices of Ukraine real estate include:

The low level of per capital housing during the time of Soviet Union.
During the soviet times, the people were not allowed to move to bigger cities. However, now that they are allowed, the demand for property is also increasing, leading to price rise.
The concentration of capital as well as opportunities in the big cities is leading to migration of people and hence, rising prices.
The rising income in the resort areas and major cities.
The lack of other alternatives of investments also results in rise in price of properties.
The mistrust of bank due to the loss they suffered during banking crisis and inflation in 1990s has resulted in rise in prices of Ukraine real estate.

This boom has occurred in the country even though the rate of interest is quite high. As and when the interest rates become lower, the demand for Ukraine real estate is likely to rise even further. So now is the perfect time for international real estate investors to invest in real estate in Ukraine.

In a world wide property market where investors are cautious, Brazil has been a stand out success story. This has been due to several factors including a strong natural economy that is not over reliant on tourism. Brazil has an abundance of natural resources, including oil, which gives the economy stability that investors look for. Brazil also has a huge population (just under 200 million) and is well pegged to become a future super economy. Plus great climate, beaches and a vast wealth of different landscapes. Favorable currency conversion for westerners, (1.00 GBP = 2.67 BRL/ 1.00 USD = 1.69 BRL & 1.00 EUR = 2.33 BRL)* and of course great property at great prices.

Over the last 5 years, government reformation has enabled Brazil to make significant improvements in social sectors. Average earnings have been on the rise, as has employment possibilities for a country looking to better itself. This has brought about more disposable cash flow and in turn, better interest rates and a greater desire for Brazilians themselves to purchase their own properties. Presently Brazil is the largest economy in South America, with increased incomes and a thriving economy driven internally and internationally. Thankfully Brazil has not tightened the belt on foreign nationals purchasing within their borders. President of ADIT (Association for Real Estate and Tourism Development in the North East of Brazil), Felipe Cavalcante, has let it be known that any worry over new legislation concerning Brazil’s natural resources will only affect agricultural land and will have no bearing whatsoever on investments made into real estate.

Where a purchase is made with the right foresight on up and coming areas, such as Natal in the North East, which has been an unbridled success story in the international property world. A mixture of the right location, with good access to road, airports and local facilities can prove an essential mix for a profitable investment, as these are the properties that are in demand for vacation rentals.

It has not been unusual for buyers over the last 5 years to have experienced 100% growth on initial investment and now with a current interest rate of 9.5% and having recently made mortgages available to foreign buyers, further boom in Brazilian real estate is expected. Brazil is a genuine opportunity.

A pledge has been made by Brazilian president Luiz Inacio Lula da Silva, to meet the demands of the flourishing market, his government will spend up to $ 18bn USD on a million new homes in the country by end of 2011.

With the world cup around the corner in 2014 and having arguably the greatest football team ever, playing in their home country, also hosting the 2016 Olympic games, all eyes will be on Brazil as they finally step out from the shadow of a developing nation and show the world they are now one of the finest, most progressive places to be in the world. With property prices still currently at a fraction of those in more developed nations, now would be a wise time to invest indeed.

How to buy a property in Brazil:
• Foreign ownership of land and property is permitted. Investment in property may be made from abroad as direct ownership or via a vehicle such as a resident company, partnership or investment fund. Possible restrictions may apply to purchase of rural land regarding desired size of area for purchase.
• You will need a tax registration number known as a Catastro de Pessao Fisica (CPF). This can be obtained from any foreign Brazilian embassy or in Brazil via a lawyer.
• The amount of your Brazilian property purchase must be wired into the country to the Banco Central do Brasil, as this bank allows the Government to record all overseas investment.
• After finding the property you want to buy, you need a Certidao de Onus Reais. These certificates are to be applied for, however, they are not needed for purchase of off plan properties.
• If buying off plan, be sure to undertake all due diligence, ensuring land is properly registered, building licenses are in place and a ‘copia da escritura publica’ certificate has been issued from the notary.
• Deposits are usually paid at this point from buyer to vendor and are non refundable.
• Drawn up at this stage is the sales contract, detailing full conditions of sale and acting as receipt for deposit funds paid.
• Final stage is the drawing up of the property sales deed of completion (‘escritura’). This will usually be carried out at the notary. Once in possession of this deed, take it to the Real Estate Registry Office to effect registry.

Life gives everyone a chance to explore his ways and to search for opportunities in this world of gains and losses. One needs to follow a dream that is really fulfilling and promising for upcoming days. The momentary vision or enlightenment can lead us to a far better place than our routine duties and general procedures. At this difficult time, when everyone is struggling to keep pace with modern day’s fast paced life, and to gain all luxuries that researches are introducing on almost daily basis. I think it is high time, to plan for your entry into world of Real Estate Investment, and find a stable financial situation for longer periods of time.

There are lots or rumors concerning the property sales and purchases, and how different people have lost their ways in it. Actually it is a very difficult business for those people who do not deal in it with professionalism. Real Estate Investment Business is also made difficult by conventional lenders like banks. People have really been fed up of standing in long queues outside banks for the submission of loan applications. Then the verification of all previous financial documents takes place almost two weeks and still they refuse to most of clients, all due to their bad credits history or their insufficient monthly income, to pay regular installments. They want their clients to make down payments and then keep on maintaining a good balance in their accounts for their bank’s security. They also sell the loan titles to the third parties and generate income from that source too.

Then the emergence of Hard Money Lenders in Real Estate Investment sector is like a blessing. They are working in property investment with a very different philosophy. They want to bring prosperity to as many people in society as possible. They are offering easy way loan funds to so many people who have no experience in property dealings. They trust their clients and respect their feelings and aspirations. They would never ask for typical kind of things like bank statements, tax return statements and credit score history. They usually want their clients for good property proposals, and they have sanctioned 100% loan funds within 48-72 hours. They only ask their already hired independent evaluators, to check out the details of any property with the professional approach.

You have a great chance to explore your future in Real Estate Investment Business, and search for good properties in your own neighborhood. Try to look at everything with respect to being a professional realtor, and never attach your personal emotions with any of the properties and stay neutral like all evaluators. It would help you out in reaching at a real good decision, and you would start enjoying it, and would earn a lot out of it.  Real Estate Investment is not going to benefit you if you do not adopt a thorough professional approach. This business domain has really changed the lives of thousands of people in our own country. So, you can also say farewell to your dull and dragging job, after some experience and gains in this sector.

Article by Anthony Seruga and Yolly Bishop

Unless you’ve been living on Mars, you’ve heard horror stories about the subprime mortgage melt down, and the hazards of a debt-fueled bubble and unrestrained mortgage lending. If you’re a commercial real estate investor, one of the operative questions is “Will this impact me?”

The short answer is “Yes, but not as badly as you might think.” First of all, there’s some compartmentalization in the real estate debt industry, and more importantly, the odious concept of “third party mortgage broker” was laughed out of the commercial real estate market post haste. (Most commercial real estate lenders are insurance companies, who are looking for long term returns and asset preservation, rather than trying to make a quick turn. What this means for you is that while credit lines for home loans (and shady, shaky, bizarre home loan products and derivatives based on home loan products) are getting mulched, loans remain strong for commercial real estate investors.

Indeed, because most banks are taking a bath on bad debt, they’re actively looking for nice, stable business to business loans. From the financial services sector, commercial real estate loans are a good deal; the people who take them out have established credit ratings, and they have an income stream (from leasing and resale) that keeps the cash flow positive, which helps the banks avoid liquidity issues, such as the one that sunk Bear Stearns. Because you’re working directly with the bank, you have a much greater level of surety in getting your commercial real estate loan.

On top of that, there are some hopeful signs for commercial real estate as a segment. The house construction boom burst in late 2006; the mortgage melt down was written clearly on the wall in the spring of 2007…yet new office space starts went up around 15% as of the third quarter of last year. (That growth wasn’t repeated in the fourth quarter, as more investors took a wait and see attitude.)

The people who invest in US commercial real estate are people looking for long-term holdings and revenue streams rather than “flippers”. Commercial real estate is a good longer term, low risk core investment, and the sort of investment that companies trying to preserve assets move into. Likewise, because of the weak US dollar, commercial real estate investing in the US is appealing to foreign interests and sovereign funds. Furthermore, beyond the shambles the dollar is in, the United States is still an appealing investment target for commercial real estate. It’s still the largest economy in the world, and it’s still the engine of innovation and entrepreneurship. It’s easier to start a business in the US than nearly anywhere else in the world, which means that it’s easier for a commercial real estate investor to find tenants to cover the cost of the mortgage. The US’s comparatively light regulatory burden (compared to Europe), and near total transparency in banking laws (compared to Asia) make it appealing for a number of solid reasons.

Most of those investors are looking to get some return on their capital, which furthers the appeal of business related real estate investing. This growth potential is already being actualized – in dollar amounts, commercial real estate demand grew by 40 billion dollars last year…. however, in order to capitalize on it, you’re going to need to work harder structuring the mortgage and payment agreements. You’ll have to ask more questions, and provide a greater proof of assets to get competitive rates, just because investors are (justifiably) skittish after seeing the credit markets implode.

On the flip side, that kind of conservative investment strategy will help you in the long term, as market corrections won’t sink your commercial real estate ventures.

Wouldn’t it be nice to buy some mexico real estate, and enjoy a relaxing lifestyle on the beachfront, or in a beautiful, colonial city? “Of course it would,” you might answer, “but even if can afford the property, I still need some money to live on.” While this is definitely true, there are a variety of options available to earn money while living in Mexico, enjoy a low cost of living, and keep your savings in tact.

Finding a property for just about any budget in Mexico is certainly not a problem. An experienced agent will be able to guide to real estate which fits your budget, and is in a reasonable location, with the services you need nearby. And the cost of living in Mexico is really cheap; but if you need funds to keep savings in tact for later, or if you’re worried that retirement savings won’t stretch quite far enough, the strength of the Mexican economy, and widespread access to the internet allow you to earn money to enjoy the comfortable life Mexico offers.

If you are in a position to invest, real estate itself offers a very viable option. Buying real estate to rent to vacationers, or for long-term rentals can provide reliable and steady source of income. Mexico’s economy has benefited considerably from the 2 decades of NAFTA. It has opened many possibilities for investments and businesses of many types, and an environment conducive to investment from non-Mexicans. Explore your options.

Whether you are investing or not, you may also wish to explore low-stress ways of bringing some additional income while you enjoy your new home in Mexico. The widespread use of internet has opened the possibility for many North Americans to work entirely from home. High-speed internet is also available in most locations in Mexico, opening the option of doing this same work from the beachfront, or from a beautiful lakeside town.

How can you make money over the internet? Many people have begun to run small consulting business over the internet, tutors now help their students over e-mail or using video chat, translators can receive their assignments by e-mail (have you ever imagined that you could translate German texts to English for a Japanese company, while living Mexico? – welcome to the good side of globalization!), magazine and news articles can written at home on the beach, and sent to an office in Texas, website, or even print magazine editors can work from other countries. These jobs can earn anywhere between $ 15 and $ 100 per hour. In some cases you can choose how much and how often you work. In all cases, this money will go much further here in Mexico that back home.

If you’ve been thinking about life in a warmer climate, where your money will go further, consider Mexico real estate, and explore your options to earn money here.

Many people want to build a career as a real estate agent or may be interested in becoming an amateur realtor, or how to get a real estate license, but they do not have access to relevant information that would help them realize their dream. It is not too difficult at all to start out as a realtor with whatever information is available to you and from wherever you are located.

Get Clients onReal Estate Listings For Sale.

You have to look out for people who are genuinely interested in selling their properties, real estate listings and sincerely work towards helping them resolve any issues that they may be facing in the process of selling. If you come across someone who is almost certain of imminent loss of property, the most apt solution would be to immediately assume control of all the payments by employing a subject-to contract. You can offer some money that would help them shift to some other place. After they have moved out you may clean the property and lease it out to a potential buyer on the basis of rent-to-own. By adopting such a process you will be able to charge non-refundable deposit money. In the bargain, even if you end up getting anything between four and five percent of the real estate sale prices (purchase price) as projected somewhere in the future, it is a good enough deal for you. You can pursue such an approach till you find it appealing or till it is a profitable pursuit for you.

Make Profit on Homes To Sale.      

It is very important to get the renter or the buyer to formalize a contract. In such a deal, the amount you receive is entirely your prerogative, since the money you make is the difference in amount you are paying to the erstwhile owner and the amount that you are getting from the new renter/buyer. This is a good way to make some extra cash each month. The buyer has to know how to start buying a house when searching for homes to sale orreal estate listings for sale. The profits you make from such deals also depend on the condition of the property and the location of the property. You can make unlimited number of such deals since it depends entirely on your enterprising spirit. Buyers are always looking to find real estate broker that knows how to handle theircommercial real estate. You have to takecommercial real estate courses as a specialty to diversify your portfolio.

Advertise Homes To Sale.

You must also try to advertise in all the local newspapers which will help you locate people who would like to sell their property anytime in the future. You can find real estate agent listings in most property magazines and directories. As well as real estate companies for sale and real estate homes for sale. Should you receive positive responses to your advertisement, your next step would be to negotiate for a realistic purchase price and then to enter into a contract before looking for potential buyers/renters. You must be in touch with a lawyer who would be able to help you with the legal aspects of a contract and also in broking fair deals.

Get A Real Estate License.

Now that you have all the necessary information required to begin a career as a real estate agent or how to be an estate agent, all you need to do is go ahead with your career aspirations. Find clients who want to sell residential real estate and close the deal. Enroll for real estate classes, real estate school or real estate courses in VA today and get a real estate license after you have completed your real estate license requirements.

First off, watch some late night infomercials on TV. And possibly order some real estate tapes from Carlton Sheets. This will provide you with a positive upbeat attitude and a sense of false confidence that is essential in order to go bankrupt. Believe that after listening to some tapes, you can compete with people that have done this 7 days a week for years.

Second. For your first investment, buy in a city you know little to nothing about and avoid using a buyers agent who does know the city. Go directly to the sellers agent. The best way to make a truly horrible decision is to avoid any outside advice. The best part of this is that avoiding a buyers agent usually doesn’t save you any money since the selling agent simply makes more when you deal with them directly.

Look for a discount or a distressed property over a good long term investment. Late night infomercials and Carlton Sheets talk a lot about this. Getting equity at the point of sale. One thing about distressed properties with desperate sellers is that they frequently are in crappy areas with low appreciation rates. Buying a property at under market rate in an area with low appreciation potential versus a property in a good area is the kind of short sighted thinking that will really help you reach the goal of bankruptcy and foreclosure.

When you talk to people including your realtor, try to spend time talking about all the crap you learned from your book or light night infomercial. The more you listen to other people, the more you might get different perspectives and the higher chance you might learn new things. This could really hurt your chances of going bankrupt so avoid listening to anyone. Remember you know everything even if you only got interested in real estate last week.

Be positive to the point of stupidity. Alot of investors I know always think about how their situation would be affected by a 10 or 20 percent drop in the market before making a purchase. You should avoid this kind of thinking. You need to be blinded by greed. You should only fantasize about how you are going to double your money.

When calculating your monthly cashflow, assume that you will have 100% occupancy all the time and no maintenance cost. While you are at assume that its going to rain money tomorrow.

Also, be stubborn when renting your properties. Decide upon a number say $ 900 a month and refuse to budge. Come up with some bizarre logic about how the property deserves $ 900 a month. Lose months of rent having the property sit vacant instead of going down $ 50 on the rent. Instead of responding to the market make statements like “Well the markets wrong then”.

As you move closer to foreclosure, don’t alter your spending habits. Don’t move into a smaller house or cut spending. Act like nothing is wrong.

Overextend, overextend, overextend. Are you approved to buy one house. Why not buy 5, heck why not 20. Instead of building up a portfolio of properties over time, gaining experience along the way, just buy alot of properties next Tuesday.

Alot of people are getting into the foreclosure game. Their is no reason you should be left behind. Throwing caution to the wind and filling your eyes with greed and you should find yourself walking down the golden path to foreclosure.

This is not a definitive guide to foreclosure. Alot of people end up in foreclosure due to many things unforeseen events like unpreventable family illness, divorce or job loss. This is simply a guide to what I call elective foreclosure.

When real estate investors hear the term depreciation of real estate, their reaction is almost scary. Property investors think that by the reduction in value of their property, which they are going to lose out on a lot of generated income. Due to this fear, investors will try every tactic to avoid the depreciation of their investment property. What is depreciation of real estate? It is a term used to describe an annual tax deduction toward the wear and tear for commercial and investment properties. The deduction will increase over time as property loses its value. This particular deduction is called depreciation of real estate.

Why are so many real estate investors afraid of claiming their properties depreciation on their income tax? Though a depreciation of real estate tax lowers the investor’s net income, the taxes of the capital gain of the investor by selling the commercial property to another party can go up. This tax was set at 25% for all recapture of depreciation of real estate plus a capital gain tax of 15% not including federal and state taxes. This could leave a taxpayer paying in sums of 30% or more in to the IRS if they sell their investment property. The annual tax is dependent on the type of property you own where you would take out 3.64% for rental housing for a 27 1/2 year life and 2.55% on commercial and industrial property on a 39 year life span of the investment itself.

There are two types of depreciation of real estate that is straight line and accelerated. Each is different on how you are taxed in which a straight line uses the same percentage per annum while the accelerated method is taxed on as ordinary income. What exactly is an accelerated and a straight line depreciation? Below explains what they are and some examples of how both straight line and accelerated depreciation works:

Accelerated depreciation is any method of depreciation that is used for accounting or income tax purposes that allow a greater deduction in the earlier years of life on an asset. Here is an example of the use of accelerated depreciation: A corporation has invested in an apartment building for $ 100,000 that is projected to run for 27.5 years. Utilizing the easiest form of depreciation, the corporation may allow $ 3,640 of the cost of the property to its expenditures each year for 27.5 years, until the $ 100,000 in capital expense has been met. Under accelerated depreciation, the corporation may be allowed $ 7,280 per annum for 13.75 years for the cost of the rental property.

Straight line depreciation is the easiest and the most used form or depreciation, where a corporation in which the salvage value of an asset is evaluated at the end of the period during which its used to generate revenue and will use a portion as an expense of the original cost in equal payments during that period. An example would be an investment broker purchased a three bedroom house for $ 60,000 and its expected to last for 27.5 years. Once the real estate broker begins to rent the property out, he will pay in $ 2,184 each year as an expense over the course of 27.5 years until it reaches the capital expense of $ 60,000.

With these in mind, a depreciation of real estate is beneficial to investors everywhere. Not only does this create a security blanket during tax time, but this will assist you in which method better suits your needs during tax season.

It’s that time of the year: The real estate industry is rolling out the shop-worn playbook of optimistic forecasts for the New Year. In San Diego these canned phrases are:

Solid signs of a firming market,
With interest rates near all-time lows,
Buying now is a no-brainer,
Get in now, before the huge pent-up demand for homes hits,
What a great time to buy with low interest rates and a good supply of homes for sale,
Act fast now, or you may be paying thousands more in a few months.

We have heard these same phrases since 2005. The major difference was that in 2005 and 2006 many of the Gurus were adding phrases:

It’s only a normal pull-back,
It’s known as a ‘pause to refresh’,
This is a once in a lifetime buying opportunity before the market resumes it’s double digit yearly appreciation.

Amazingly in San Diego, California, is the local media talking-heads still go back to the same industry spokespeople to get their 60 second optimistic new year outlook for the 6:00PM news.

Naturally, I’d like to join this optimistic, self-promoting crowd, but sorry, I have to tell it like I see it.

The title of this article says it all. After the $ 8,000, Federal and California home buyer credits expired, the local San Diego real estate market entered into a double-dip continued erosion of home values.

After the homebuyer credits concluded, San Diego home values saw modest price appreciation. Now even this modest appreciation has disappeared. Even more troubling is that the resale home sales volume has been dropping at double digit rates for the last few months.  Just from April to May the western states sales dropped a reported 20.9%. Huge double-digit declines in home sales are a major red flag that cannot be ignored.

When will the government learn that you cannot artificially create lasting demand?  (Statistics show the vast majority of government housing programs, costing billions, are outright failures and have only prolonged our malaise.)  I believe the best thing the government can do is to stay out of the housing market and let the open market clean up the mess.

Think about this: Bernanke initially spent almost $ 2 trillion to drive long-term interest rates down.

The $ 600 billion QE2 has no effect to date. Actually, interest rates have moved up substantially. There are a few months left, but I am sure Bernanke will use the “it would have been much worse” argument and declare success. The reality is that there will be no QE3, not with Ron Paul now as the watchdog of the Fed.

Our aging population, combined with a decreased standard of living can’t equate to housing starts comparable to prior generations. I think our government’s relentless destruction of the middle class is making this different from prior real estate cycles.

Foreclosure moratoriums are beginning to expire.  I believe the banks will push to clean up their portfolios through increased foreclosures.

Except for cash buyers, home pricing is derived from the affordability of the monthly payment. Should interest rates and taxes go up (a good bet), the purchase price will have to come down to establish a market. Construction labor is already about as cheap as you can get it and inflation for materials is already present. This spells very bad news for homebuilders.

As far as pent-up buyer demand goes, the gurus again have it backwards. It’s not buyer pent-up demand, but seller pent-up demand to unload their homes.

The depth and longevity of this San Diego housing value depression has been imbedded into the consciousness of the usual first wave of home buyers in their late 20′s and early 30′s.  The high cost of living in San Diego has been further stressed with continued multiple raises in utilities, increased state taxes/fees, higher education costs and $ 3.00+ per gallon gas prices. This all equates to over-priced homes in the current world of qualifying for a home mortgage.

I just believe there are major problems with our economy at play that we have never seen before and that will have a deciding call on what happens with housing. I see demand based on finance rather than population at this point.

During the mid 2000′s, almost the entire mortgage universe had been refinanced. This included many baby boomers that were in the last half of the 30-year mortgage they took out when they purchased their home. Some of this was hopefully to pay down other expenses and not to maintain their fantasy of the luxury lifestyle.  The refinancing bubble that resulted from the irresponsible actions of Greenspan reset the 30-year mortgage clock. All borrowers looked at, was how the refinance lowered their house payment by $ X per month, without giving a second thought to the fact that they have also extended the term to a new 30-year loan.

Another round of refinancing occurred when Bernanke pushed rates down to the 4% range. The only borrowers left who have not refinanced are those with no equity and/or are facing foreclosure.

In either case, now many Boomers who are reaching the traditional retirement age, find themselves strapped with 20+ years left on their refinanced mortgages. Instead of preparing for the mortgage burning party that their parents had when that generation retired, they are wondering how they can make house payments on a lower income during retirement.

Since this is the first year of the boomers reaching 65, it is going to be a negative drag on housing for years to come.

For the San Diego and California real estate market we have to contend with our own Cap & Tax laws going into effect in 2011 that will increase utility costs by 20% over the next five and speeding up the loss of manufacturing jobs. We also have a new, old governor who was against proposition 13 which sets a maximum cap on property taxes and will likely propose new massive state taxes to deal with a $ 25.4 billion budget deficit.

If you have stayed with me this long, I’ll wrap things up by saying I personally do not see any real base building in the San Diego real estate market until 2012. Naturally, I hope I’m wrong and 2011 sees a big jump in San Diego home appreciation. With 30+ plus years of residential experience and my 2005 article that foretold this national housing bust, I wouldn’t bet against me.

Article by Kim Lee

Understanding about commercial real estate is not as hard as you may think. Even though this may sound difficult on the surface, fact is understanding about commercial real estate is not difficult. Generally speaking, commercial real estate is a property that is used for business only. This means that the property is zoned for business use, and it should be used for that purpose only. When compared to residential real estate it is quite easy to see the difference between the two.

There are two common types of commercial real estate that are probably known very well. First one is, office buildings. These can be everything from the huge office buildings that you see in a big city, or smaller ones that are in little towns. Irrespevitve of the size of property,if they are used solely for business they are known as commercial real estate. Additionally,properties that house retail stores can also be considered as commercial real estate.For example, the strip malls that are seen in suburbs all over the United States are commercial real estate. They are used for business only, and are meant for retail shop owners to move in and sell their products.

Many people may have this question in mind, what is the advantage of buying commercial real estate?. While most people will never purchase commercial real estate. Many people buy this type of property because they have a business that needs somewhere to work. And instead of renting they would much rather buy commercial real estate so that they can own it one day Investing in commercial real estate is wiser for them.

Although this differs from investing in residential properties, things remain the same for the most part. The main goal of a commercial real estate investor is to generate income as soon as possible. Now you could have understand about what commercial real estate is all about.There is not much you need to learn unless you are interested in buying commercial real estate. If you are in that position you will want to learn a bit more about the industry as well as how to make a purchase.

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