Real Estate Investing Is A Better Gamble Than The Lottery

Writen by Dr.Phil Speer

Real estate investing begins when you move to the starting point.

Get ready.

Get set.

GO...

Are you ready to begin a real estate investing career? Or, are you already investing in real estate some, and want to expand your holdings? Or, are you investing in real estate a lot, but want to streamline your operation?

If you prefer real estate investing to a J-O-B, here's a tip on the real estate investing gamble for hitting the jackpot, striking it rich, and quitting that day job!!!

As one of my professors use to say, "Let's commence, to begin, to start, to get ready, to GO."

Do you bet on the lottery?

I am amazed at how many people throw their money away buying lottery tickets with such slim chances at winning!

At the start of 2004, Tennessee cranked up its new state lottery. The news media fanfare went on for months. Tennessee hired the lottery director from Louisiana to set up Tennessee's system, and this media publicity aired every night on the news as the public was whipped into a frenzy. Finally, the kickoff. Within just weeks, the announcement aired that Tennessee had taken in $50 million in lottery sales, and then $100 million in lottery sales. Newscasters quietly mentioned, however, that a whopping $100,000 had been paid out already in winnings. Wow! $50,000 in winnings compared to $100 million in ticket sales. What a windfall. (For the lottery, that is) Then came the subdued mention that some store owners were shutting down their recently-opened outlets out of conscience at seeing so many ticket purchases by regular customers who did not even have enough money to buy groceries! And all this ballyhoo was presented under the guise of lottery money to subsidize college scholarships.

Isn't it great for kids to get a good education, and isn't it greater that I can buy a lottery ticket - not in paying for my own kids' education - but to help other folks' kids get their education!

And in the meantime, I might strike it rich!!!

Come on. (Where is common sense logic?)

Some fishermen friends several years ago liked to boast about how much money they spent every year on lottery tickets in another state. When I pinned them down to their actual winnings, they admitted they spent over $10,000 a year buying tickets, and they CLAIMED they always made more in winnings than they spent for tickets. Funny thing, however, they couldn't show me a tally of their win-loss record!

If you are a gambler who wants to make it big in some game of chance, you need to visit Vegas instead of reading this article.

But if you really want to win the big stakes without taking the big risks, real estate investing is a great game of chance!

Oh yeah, I'm a gambler, too, but I like REAL chances at winning. I want the stats on my side.

Twenty-five years ago I made one of the biggest gambles of my life by starting out with nothing and trying to hit the jackpot investing in real estate. It was a gigantic gamble because I had no cash and no credit. I was able to scrape together a $10 bill and a real estate contract, and I started shooting craps.

No, sellers didn't like my offers. Most threw the contracts back in my face. Success did not come easily. I was often very discouraged and frustrated. I actually did not know at that time of anyone ever who had started investing with a $10 bill, and I have never heard of anyone since. But I never threw in the towel. And within a year, I had somehow bought almost one million dollars in rental properties!

That's a gamble that paid off.

I like that kind of gamble.

Gamble when the odds are in your favor. http://CashinHouses.com/

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://CashinHouses.com/ Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online "Academy of Advanced Real Estate Investing Techniques" - http://AAREIT.com/

Can I Sell My Private Mortgage Notes

Writen by Afra AmirSanjari

In this country millions of homes are sold every year. In most cases buyers go to a bank or finance company to seek mortgage financing.

In some cases, 200,000 in the U.S., home buyers rely on the seller rather than a financial institution to provide financing because:

• The purchaser may not qualify for a traditional mortgage.
• The purchaser may be a relative looking to save on closing fees.
• The seller may be interested in having a long-term income stream.

Often the seller is pressured into providing financing for the purchaser instead of receiving a lump sum. This forces the seller to assume the role of a mortgage company, worrying about servicing and collecting a monthly income stream. A stream, which may or may not be consistent, depends on the payer's ability to meet their monthly obligations.

Peacock Capital provides an option to note holders nationwide who are ready to sell their homes and use the equity for their own purposes.

We will purchase the note for a lump sum and collect the monthly checks. No more worrying about the "Check is in the mail" Or, "Will they stop paying, forcing a foreclosure?" Or, "Has my buyer kept up with their insurance payments?" Etc.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.
http://www.peacockcapital.com
info@peacockcapital.com

If You Cant Afford To Retiremove

Writen by Barbara Kimmel

According to Warren Bland, PhD, an award-winning author and geographer at Cal State, people have a great option. It's called "equity-take" that is, the difference in cost of comparable housing between your present community and the more affordable one to which you could move. So, if you are willing to make that move, you can pocket a good chunk of money instead of delaying your retirement.

Consider the person hailing from Buffalo, NY, where the average upper middle class home sells for around $250,000. In Thomasville, Georgia, one of the most desirable retirement places in the Atlantic Southeast, many attractive single-family residences in beautiful neighborhoods are selling for around $140,000. This means that you could net about $100,000 (assuming your mortgage is paid off) by relocating from snowy Buffalo to sunny southern Georgia, and increase your annual net income by $5,000 by investing in, for example, tax-free municipal bonds at 5 % annual interest.

People living in expensive metropolitan areas like New York, Los Angeles, the San Francisco Bay Area, Boston, Chicago and Toronto are in an even better position to use "equity take" to their advantage. The average price of upper middle class housing exceeds $1million in Manhattan, $700,000 in Los Angeles and the SF Bay Area, and is around $500,000 in Boston and Toronto. In contrast, home prices in many highly desirable cities and towns, suitable for retirement and located in all parts of the country, are more likely to be in the $150,000 to $300,000 range. Even a relocation from Manhattan to Boca Raton, Florida (one of Bland's "top ten" retirement picks), could leave you with an equity-take of $500,000. Investing that windfall in tax-free municipal bonds at 5 % annual interest, will increase your annual income by $25,000. As Bland says, "You can buy a lot of wine, gourmet food and entertainment with that kind of money"!

Barbara Kimmel is an award-winning book publisher, publishing consultant and publicist. She is the publisher of Warren Bland's book, Retire in Style 60 Outstanding Places Across the USA and Canada. Books are available through all major bookstores, amazon.com or http://www.nextdecade.com

The Size Of The Castle Is In The Eyes Of The Beholder

Writen by Reg Gustin

The rapidly appreciating home values throughout Phoenix have made moving up into newer or larger homes a huge challenge for many families. Although these owners may have substantial equity built up in their first home, making the leap to another larger home may also mean substantial jumps in mortgage payments. But while some home owners feel stymied by the increasing home values, others are finding it a unique opportunity to simplify their lives.

Many communities have seen a trend of "bigger is better", especially in the real estate arena. There are a number of neighborhoods that have large, boxy houses perched on small lots, with little thought to character or charm. In 2001, Sarah Susanka wrote a book that captured a lot of attention – The Not So Big House: A Blueprint For The Way We Really Live. This book emphasized that small homes can offer a great deal a beauty, charm and style, all without the price tag of the McMansions.

In Phoenix, many homeowners are taking this trend to heart. They are selling their large, family homes and moving into smaller homes that are a better fit for their lifestyle. If you think these smaller homes are the "starter homes" of old, think again. These homes may be smaller and may be streamlined, but that's where the similarity ends.

These homes are elegant and offer custom-built features, generous, open floor plans, luxurious pools and spas, easy access to golf courses, and plenty of room for entertainment. The homeowners also realize a great deal of equity from the sale of their family home – money they can use to buy a smaller, but more luxurious home and even have money left over to invest, purchase a second home, put into a college fund, or even help other generations get into the housing market.

The trend of downsizing also creates opportunity for younger home buyers. As more of the baby boom generation decides to move down to smaller homes throughout Phoenix, it increases the inventory of family homes available for sale. An increase of inventory may soften the prices for the family home, making it a little more affordable for younger buyers that previously wouldn't have been able to afford to buy a home.

Buying a home for retirement isn't the same as getting into a retirement home. The baby boom generation is alive and vital, with home needs that reflect their vitality and healthy pursuit of life.

Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs.

Get a FREE mortgage rate quote from a reputable Arizona mortgage company at Central Arizona Homes.

Search the Arizona MLS at Central Arizona Homes

Click here and get a FREE copy of The Greater Phoenix Area Housing Appreciation Report, as compiled by Arizona State University with your free subscription to his monthly ezine, MARKET NEWS.

Miami Rentals With These Prices How Can I Find A Good Rental In Miami

Writen by Erica Perez

Believe it or not it is still possible to find a reasonably priced rental in Miami. The real estate market affects the rental market in a big way. When the market was booming rental prices remained the same but as the real estate market has slowed down rents have started rising up to 12% in some areas of South Florida.

The recent condo-conversion trend did away with large apartment rental buildings making the amount of available rentals harder to come by. Most condo-conversions were inexpensively priced, this made it appealing for many people who would otherwise rent to jump on the bandwagon and buy. This of course means that units that were once lived in by tenants are now owner occupied consequently reducing the inventory of rentals available. In spite of this, those same condo-conversion buildings and even some pre-construction properties may be the best place for renters to find a well priced unit. Investors who purchased many of these units and were unsuccessful at selling them at a price they had previously hoped for have quickly pulled them off the selling market and are now looking for their first round of tenants to rent out their investment.

Whenever you do find a place negotiate the price. Owners may be willing to offer a small reduction in rent to attain a good tenant. Don't be afraid to ask the worst they can do is say no.

A free rent finder may also be a good place to turn to help in your search for Miami rentals. They usually know about undiscovered rental deals and will help you negotiate a better price.

Want help finding affordable Miami rentals go to http://www.myrentagent.com for Free Rent Locating Help.

Fix And Flip The Formula

Writen by Steven Gillman

Making money with a "fix and flip" property is a great way to make money in real estate. However, it isn't about repairing drywall and planting flowers. It's all about how you do the numbers.

People often buy and sell a fixer-upper without a definite plan. They buy a house, fix it up, then add $10,000 or $20,000 onto their costs. They then put the house up for sale at this price.

Have you ever bought a house according to what the seller has into it? Of course not. You look at similar houses to determine the value. If you have $110,000 into a fix-and-flip project, and similar homes are selling for $105,000, how much will you get? It has nothing to do with what you've spent, does it?

The Fix And Flip Formula

1. Determine the after-repair value of the house you're looking at. Get an appraiser's help, or look at what similar houses have actually sold for (not asking prices). The price it's likely to sell for is going to be your starting point.

2. Calculate costs: closing fees, loan fees, document prep, homeowner's insurance, title policy, repair costs, interest on loans, property taxes, sales commission, fees, title policy, etc. You want projected costs of all four categories: buying, improving, carrying, and selling. Subtract all costs from the expected sales price.

3. Subtract a profit that makes it worth the effort. Now you have the highest price you can pay. You have to walk away if you can't get it for this price or less. You'll offer thousands less, of course, to give yourself negotiating room.

A Fix And Flip Example

You've found a fixer-upper, and determined you can get $98,000 for it when it's done. Buying costs will be $2,000. Repair estimates add up to $8,000. Carrying costs will be $2,500. Sales commission and other closing costs will be around $8,000. You figure in $1,500 for the "unexpected." For you effort, you want a $10,000 profit.

When you subtract all of that from your expected sales price, you have $66,000. That's the most you'll pay if you want a safe real estate investment. Offer $61,000, and walk away if you and the seller can't settle on something under $66,000.

You always start with the eventual sales price and work your way back. This is the right way to safely do a fix and flip.

Steve Gillman has invested in real estate for years. See a photo of a beautiful house he and his wife bought for $17,500 on his home page, or go straight to the section on Investing In Real Estate: http://www.HousesUnderFiftyThousand.com

Florida Real Estate The Sunshine State

Writen by Raynor James

Florida real estate is definitely worth a look if sun and fun is your ticket. Florida real estate, even close to the beach, is a very good deal.

Florida

Florida is a well-known haven for people living through winter storms in the northeast. Sun and warm water are an obviously attraction, but there is much more to Florida. Orlando seems to be one giant theme park with Disney World, while Miami offers entertainment of a distinct adult variety with a legendary nightlife. Throw in the Florida Keys, tons of college and professional sports teams, the Kennedy Space Center and you have a state with a lot to do besides loaf on the beach. Then again, loafing on the beach should never be denigrated!

Miami

Miami is a city that really needs no introduction. With Cuban influences, the city is an explosion of styles, colors and fun loving people. Palm trees are plentiful as are beaches, bars, outdoor cafes and walking streets. When you need a break from the beach, Miami hosts professional sports teams in baseball, basketball, hockey and football. The real key to the area, however, is simply the festive atmosphere and people. Nearly half of the population is Hispanic with a heavy influence appearing throughout the city. Every day is a party in Miami.

Orlando

If Orlando isn't the capital of theme parks, I feel sorry for the place that is. Orlando is home to no less than Disney World, Universal Studios and Sea World. The theme parks are actually located on the edge of the city, which makes Orlando proper a bit bland. Humidity can be a bit of a bear during the summers, but the winter is incredibly nice.

Tampa

Tampa is an underrated city in my opinion. The chief criticisms seem to be it is overly modern and a bit boring. In fact, it is just the opposite. Tampa has a funky cultural feel, particularly in Ybor City where multiple cultures clash in free wheeling fun and you can get a Cuban cigar hand-rolled by a Cuban artist. Museums, art galleries and theme parks abound. The beaches of Clearwater are white, clean and a good place to roast in the sun.

Florida Real Estate

Florida real estate is very reasonably priced considering much of it is so close to an ocean or lake. The average home price in Orlando will run you just above $300,000, roughly the same amount as Tampa. In Miami, prices vary wildly depending on the part of the city you are looking in, but you can expect price ranges from $250,000 to $800,000.

If you want to get in on Florida real estate, now may be an ideal time. For 2005, property in Florida appreciated at a rate of nearly 25 percent!

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner. Visit our home buying page to view and buy Florida real estate.

Selling Your Home Consider An Auction

Writen by Gloria Smith

It's a pity that very few people consider auctioning a house as a viable selling option. This may be because many believe that auctions are only done at Christie's for small works of art, or done by banks to get rid of their repossessed properties. The latter reason may also be the most compelling reason why home owners would rather not put their house on public auction, and choose to just wait it out.

Unfortunately, waiting for the right time to sell a house or the right person to come along and purchase the house will not be beneficial to your property's existing market value. Remember that the longer your house stays on the market, the older and the more new competition it gets. Although the land the house rests on may increase in value, the physical structure itself, devalues. In addition, you may be paying extra on taxes and maintenance, expenses that you can do without.

If there is an existing real estate demand or the property rates are high, why not grab the opportunity and put up your unit for an auction. It's a quick and effective way of selling a property at a short period of time and what makes it different is that you won't have to accept low offers. When your property is auctioned; you will most likely get maximum returns. Auctions also reduce haggling and negotiations as the buyers are to abide by the terms and conditions (including payment terms and deadlines) the seller sets.

Auctions are usually done in a function room of a realtor's office. The official valuator will determine the true value of the property and bidding starts from there. By pitting several interested buyers together in one venue, the buyers will know how much they are up against and can easily outbid each other until a buyer offers to buy the property at a price no one would want to match.

Even if your property is up for auction, you are not limited to accepting the bids offered at the auction itself. You may entertain other offers to purchase and, in case the winning bid is lower than an external offer to purchase, you can put the property on hold (or set is aside) until you've decided to whom you'd want to sell your home to.

To know more about auctions, their procedures and your responsibility as a seller, it is best that you request a real estate agent to discuss these with you thoroughly.

LegalHomeForms.com provides Real Estate Forms and Contracts for buying and selling property. Download a Real Estate Contract today.

Does Staging Work

Writen by Scott Boulch

Staging can involve minimal effort on the part of a seller. Merely rearranging furniture can show a house off to advantage. For some sellers, however, staging a home for sale is a major production. It might include hiring a fix-up-for-sale decorator and renting a house full of furniture, complete with house plants and decorative art work.

Homes that are staged for sale tend to sell faster, and for a higher price, compared to listings that have not been staged. Staged homes are more appealing. You may find more demand and possibly multiple buyers for a well-staged home.

A homeowner in Oakland, California learned the hard way what a difference staging a home for sale can make. She listed her home for sale last year with an agent who told her to do nothing to get her home ready for sale. The agent insisted that it was a waste of time to fix a house up for sale because the buyers would surely want to redecorate to suit their own tastes.

After months on the market without even a nibble from an interested buyer, the home was withdrawn from the market. The owner then consulted a different agent. This agent detailed all the cosmetic improvements that needed to be done in order to sell the home.

The home was re-listed after all the suggested improvements were completed. It sold with multiple offers the first week it was on the market--the second time. It also sold for more than the list price.

First-Time Tip: Ask your agent if your home needs staging. If so, your agent may be able to help you if he or she has expertise in home decorating. If not, your agent should be able to recommend someone who can help you stage your home for sale.

Fresh flowers are a nice touch inside. Outside, use flowering plants at the front entry for added color, and to show off the yard. Don't forget to paint the front door so that it looks fresh and inviting.

Buyers like homes that are cheerful and bright. Open curtains and drapes, unless the outlooks are poor. Buy inexpensive window coverings that let light through if the windows have an unsightly outlook, or if they look directly onto neighbors.

Leave lights on when the home is shown, even when the sun is shining. Add lighting to rooms that are dark, or increase the wattage of light bulbs, if the fixtures will allow it.

Make sure that the heating or cooling system is set at a comfortable temperature. A frigid house is uninviting, and so is one that's too hot on a sweltering day.

Small staging efforts can make a big difference. Buy a new shower curtain to replace the old one that's mildewed; change out-dated cabinet pulls in your kitchen or bathrooms.

Outdoor living is important to most buyers. Stage your yard, patio or deck with outdoor furniture. The outdoors then becomes an extension of the living area. This adds value in the buyers' mind.

An unused cubby-hole can be turned into usable space with a little staging. An extra large walk-in closet can become a computer room. A sun room can be transformed into a den or home office.

When you sell a home, you're selling a fantasy. Even though the buyers won't live in your home the way it looks in its staged-for-sale condition, they'll be attracted to it because it presents a lifestyle they aspire to.

The Closing: Buyers pay for homes that look livable and inviting, even though the furnishings will be moved out with the sellers.

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