Archive for the ‘bookmarks’ tag
Source Real Estate Finance Book
How To Guide: Is Real Estate Investing Right for You?
If I knew then what I know now, I never would have voted for the war.
Ken Lucas
For me the greatest source of income is still movies. Nothing – stocks, financial speculation, real estate speculation or businesses – makes more money for me than making movies.
Jackie Chan
I have 1900 units, why do I need a 401K?
Robert Kiyosaki, recent interview Time Magazine
To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man.
William Shakespeare
From Robert Kiyosaki to Donald Trump, from Robert Allen Carleton Sheets, from Dolf de Roos to Diane Kennedy, investing in real estate is touted as a way for average people with time, money and patience to build wealth.
But is investing in real estate right wealth vehicle for everyone? If this were a one-size fits-all-world the answer would be yes. But, then, stocks would be the perfect investment vehicle for everyone and the discussion would end there. I have had investment real estate since 1994. I have had tenants attempt to squat in my properties, I have been sued, I have had a unit vandalized, someone drove into one of my buildings and I gave gone through my fair share of property managers.
If I knew then, what I know now, would I have bought my first property? The answer is yes. Real estate has done more for me than the stock market has with less overall financial risk despite the headaches and they have been many.
Five Ways to Know if Real Estate Investing is Right for You.
1. Are you a good manager of your personal resources or do you have significant amounts of short term debt?
If the answers are no and yes, in that order, do not invest in real estate until you address these issues. Real estate is illiquid. Once purchased, the hold time on your new property may be significantly longer than you anticipate. This means that your potential exposure to unplanned expenses on your property may be longer than anticipated. Significant amounts of short term debt or the inability to plan your finances in anticipation of expenses may turn your real estate investment into a financial nightmare.
2. Are you a team player and can you captain that team?
Investing in real estate means partnering with others to ensure your success and recognizing that your partners may know more than you. You will encounter brokers, property managers, attorneys, handy men, plumbers, electricians, contractors, roofers, inspectors, mortgage brokers and appraisers. If you are a control freak, prefer to work alone or cannot be direct in your communication when working with people, real estate investing may not be right for you.
3. Do you understand the kind of investing you will be doing? Will you be investing for cashflow or speculating for appreciation? Do you have the analytical tools necessary to help you work up a pro-forma for the property you will be buying?
4. Do you truly understand that wealth-building in real estate occurs over many years and that you have to “survive” your first couple of properties to build wealth?
Over 20 years ago I started baking bread. The guide book I bought featured a “loaf for learning”, a basic loaf that I could practice kneading, mixing and still turn out an edible product. Your first properties will be “buildings for learning”. As you move beyond the initial learning curve, you will move on to create wealth. In certain markets, real-estate can produce appreciation returns beyond expectations and create the illusion that real estate produces instant cash. In my life I have seen two such markets. Frankly I would not want my future financial well-being to rest on my ability to time markets. Sophisticated investors have as their core investments, cashflow properties, properties that perform during hot or cold markets.
5. How do you react to unpleasant business news?
Is your overall reaction anger that dissipates into a sense of helplessness or do you become a problem solver? Being able to solve problems is the key to having a successful business and investing in real-estate is a business. Real-estate is also a people business, by this I mean your tenants are people and the service personnel who will work on and market your properties are people. If the failings of others afflicts you with moral indignation and heartache, real estate investing is not for you. Tenants will fail to pay the rent and you will have to evict them, your property manager will charge you market or above market for repairs and will fail to market your properties properly in order to keep them full.
While real estate investing is a great way to build wealth, investing in real estate isn’t for everyone. It is easy to “catch the fever” and jump without looking, the first step is to make sure that you know yourself; these five points of consideration will assist you to that end.
The next step is to educate yourself about your local market, financing options, price and rents. You can start by finding a local Cashflow or real estate investing club. If you join a local real estate investing club make sure some of the members actually own investment property. That way the club won’t just be a club of “wannabes”.
Next assemble your team of property managers, accountants, brokers and agents. You will do this by interviewing prospects. Once you decide on a team, you will still have to trade the members out from time to time.
Finally do your first deal.
About the Author
Ouida Vincent is a physician, active real estate investor and entrepreneur who has made more than her fair share of mistakes on the road to wealth. Ouida has made many of the mistakes she writes about and has come out on the other side. To find more interesting articles, business tips and key success philosophies go to http://www.ouidavincentsblog.blogspot.com
Addicted to Real Estate – Za rent stays lika before
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Little Red Book of Selling: 12.5 Principles of Sales Greatness $8.98 Editorial Reviews From Publishers Weekly If salespeople are worried about how to sell, Gitomer (The Sales Bible) believes they are missing out on the more important aspect of sales: why people buy. This, he says, is “all that matters,” and his latest book aims to demystify buying principles for salespeople. From the red cloth cover to the small trim size to the amusing (but not cloying) cartoons o… |
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Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown $14.41 Recovery? What Recovery?Did you lose money in the stock market in the last financial crisis of late 2008? Has your home lost value? Are you “underwater” in your mortgage or concerned about selling?Do your dollars buy less than they used to at the grocery store and the gas pump?Have you lost your job or know someone who did?Are you worried about the safety of your money and investments? Don’t Get F… |
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Rich Dad’s Advisors: Guide to Investing In Gold and Silver: Protect Your Financial Future $9.18 Learn to Invest in History’s Only True MoneyChances are you’ve been hearing a lot about gold and silver lately – and for good reason. They are great investments in times of uncertainty such as the economic times we are now in. If you are interested in investing in gold and silver, but not sure how to start or aware of the reasons why gold and silver are excellent additions to you… |
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SPIN Selling $10.98 Written by Neil Rackham, former president and founder of Huthwaite corporation, SPIN Selling is essential reading for anyone involved in selling or managing a sales force. Unquestionably the best-documented account of sales success ever collected and the result of the Huthwaite corporation’s massive 12-year, $1-million dollar research into effective sales performance, this groundbreaking resource … |
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California Real Estate Practice (Paperback) $44.65 This second edition is thoroughly updated to reflect the tremendous number of changes in modern real estate practice in California resulting from the banking, finance and construction industries over recent yearsAuthors Bob Herd and Bruce South… |
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Real Estate Investment (Hardcover) $89.36 This book fills a gap in the existing resources available to students and professionals needing an academically rigorous, but practically orientated source of knowledge about real estate finance. Written by an academic whose area of study is finance an… |
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Aftershock (Hardcover) $17.58 From the authors who predicted with unmatched precision the domino impacts of the real estate, stock market, and other bubbles that led to 2008`s market meltdown comes the definitive look at what is still to come and what investors can do to protect th… |
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1001 Things They Won`t Tell You (Paperback) $11.35 Offers insider knowledge and tips for consumers on one hundred businesses, professions, and institutions including insurance agencies, real estate brokers, funeral directors, home builders, dentists, financial planners, plumbers, and personal trainers. |
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What Every Real Estate Investor Needs to Know about Cash Flow– and 36 Other Key Financial Measures $14.53 An updated collection of thirty-six calculations offers a practical guide to determining property worth, projected profits, and investment potential in the real estate market for commercial brokers, beginning investors, and real estate veterans. Origin… |