Archive for November, 2007
« Previous EntriesPutting Real Estate in Perspective
Tuesday, November 27th, 2007Although investment real estate is owned by many people who have no formal business education, it is a truly serious business.
Jobs produced by housing construction and real estate-related manufacturing and retail sales form an essential component of our economy. The financial benefits of new home construction and the […]
Building your Property Investment Business: The Myths and the Magic
Tuesday, November 27th, 2007In every business and every industry there are people who just seem to drip with success. They seem to know all the right people, make all the right decisions, be in all the right places at exactly the right time. They seem destined for success whether they even try or […]
You Want to Do It but Don’t Really Have the Time, Investing Myth
Tuesday, November 27th, 2007This really comes down to choices and priorities. There is always time to do the things we need to do like go to work every day, mow the lawn, feed the dog. Often there isn’t time to do the things we really want to do. Learn to speak a second language, build […]
You Have to Know Somebody to Get Going in This Business, Invest Myth
Tuesday, November 27th, 2007While knowing a few key people such as a real estate agent, an attorney or a banker may save you some time, you don’t need to know anyone even remotely connected with investment real estate to get started. And you’ll find that the goals you set for yourself will […]
Some People Just Have the Midas Touch, Invest Myth
Tuesday, November 27th, 2007It is easy to think that people who are successful investing in real estate have some sort of Midas Touch. But there is no such thing. They are just people who see opportunities and know how to make them real and profitable.
Take any ten-acre piece of land. Let’s say this […]
How To Minimize Risk And Maximize Profit
Tuesday, November 27th, 2007There is really only one question that should govern the decision to acquire a particular real estate investment: What is the probability of earning a certain profit in a given time period?
All the details of analysis and market research work toward accurately answering this question. Of course, there are many […]
Investment Property: Finding Your Diamond in the Rough
Sunday, November 25th, 2007Identifying investment property is like dating. You want to make sure you choose wisely because you will be committing time, energy, and money. You’ll be putting your heart into the effort and have big dreams of where things may lead—maybe a long-term commitment, maybe marriage. Dating just anyone, like […]
You Have to Be a Seasoned Negotiator and Businessperson, Invest Myth
Sunday, November 25th, 2007Again, this is just not true. Experience in business may make that first walk into an investor’s office more comfortable, but that’s all it will do. Your true power and confidence won’t come from your past experience. Instead, it will come from the solid deal you assemble that is a win-win for […]
You Have to Already Be Wealthy to Invest in Real Estate, Invest Myth
Sunday, November 25th, 2007People think they need to have a large lump sum of money to invest in real estate. They think it is like saving for their first home or that it’s something they can only do once they have made their fortune elsewhere. Both of these thoughts couldn’t be further from […]
How to Use Options to Acquire Real Estate
Sunday, November 25th, 2007Options hold a special place in real estate acquisition. They are rights to purchase without the obligation to perform associated with a conventional purchase agreement. In some highly leveraged cases an option increases in value at a much greater percentage rate than would be possible with an outright purchase […]
Partners - A Good Thing or a Bad Idea
Saturday, November 24th, 2007At MC Companies my partner, Ross, and I have been together since almost day one. His skills and my skills dovetail perfectly. He handles the construction and development and I handle the management and operations. We both handle acquisitions and together we each bring to the deal our own […]
You Can “Flip” Your Way to Success or Get Rich Quick with No Money Down, the Invest Myth
Saturday, November 24th, 2007Many people think that flipping property, in other words buying it and quickly turning around and selling it for more than you paid for it, is the way to grow wealth. The people who believe strongly in this have been lucky enough to make money this way. But in my opinion, […]
You Need a Great Deal of Confidence, Property Invest Myth
Saturday, November 24th, 2007Not true. People underestimate themselves all the time. They listen to that little voice of self-doubt that whispers and sometimes shouts in their brain telling them all the reasons why they can’t do something, why they shouldn’t even try. I believe there are two voices: the voice of reason, and […]
Investors In Real Estate Should Know The Three Drivers of Supply and Demand
Saturday, November 24th, 2007Simply, there are three drivers of a market’s or submarket’s economics that come into play. As an investor in real estate, you’ll want to keep each of these variables in the forefront at all times. They are true indicators of supply and demand.
This is the first and possibly most important indicator of […]
Letter of Intent
Wednesday, November 21st, 2007Once you’ve established the valuation using the five steps of property evaluation you are ready to draft the letter of intent or a purchase and sale agreement. I prefer to use a standard letter of intent to map out the deal points between myself and the seller before moving to […]
Business of Investment
Wednesday, November 21st, 2007It Takes a Team
Who was it that said “No man is an island”? Whoever he was, he could have been living in the twenty-first century because today we don’t do anything without the help of other people. Even when movie stars win Academy Awards, they never walk up to the podium, […]
Property Invest Myth: You Can’t Be Afraid of Failing
Wednesday, November 21st, 2007Show me an entrepreneur who says he or she isn’t afraid of failing and I’ll show you a liar! A bold statement, absolutely, but a true one. Everyone is afraid of failing. The difference is that some of us let that fear of failure hold us back. Sometimes fear stops us from […]
Invest Myth: You Have to Know the Tricks of the Trade
Wednesday, November 21st, 2007There are no tricks of the trade in the purest sense of the term. But there are secrets to success in life. And as long as you know those, you’ll be successful at anything. First, you have to set goals. Goals will be the foundation of the roadmap for your success. They […]
Real Estate Investing Contingencies
Monday, November 19th, 2007Your attorney will be able to advise you about contingencies. Contingencies are provisions within a contract that give you recourse to cancel the deal in the event of unforeseen circumstances. A few examples of typical contingency statements include loan contingencies and due diligence contingencies. These are critical and […]
You Need to Start Small, Big Deals Are Too Risky (Real Estate Investment Myth)
Monday, November 19th, 2007There is nothing wrong with starting small. Perhaps you’re thinking about buying a $250,000 single-family home and making it a rental property. Or even a $320,000 duplex. But why rule out a $2 million, fifty-unit building? Believe it or not, any of these properties are within your reach.
Of course right […]
