Before Buying an Investment Property - Things You Must Know

Investing in real estate can help you make big profits; it is known to return from capital appreciation and cash flow. Examples of investment real estate properties include apartment buildings, bungalows, villas, private homes and commercial warehouses, etc. Often, these properties are classified as liquid, which means that you can sell in a hurry. As an investor, you should be aware of certain facts before putting your hard earned money in real estate. This article will inform you about these facts.

As an individual looking to invest in real estate, you should have a clear idea about the amount of money, energy and time you are willing to spend on it. In other words, you must know how much you want to commit or have the ability to commit to this type of investment. You must be aware that to get the benefits, you have to put a lot of time and effort; Research will need several properties and market well before making any investment decision. If you are unsure of your ability to search, you should always seek professional help; Realtor with experience can help you conduct an effective and prompt investigation. Remember to carry out the research is very important because it can make you lose all your money.

As mentioned above, to succeed as an investor, you must conduct a thorough investigation, the two properties and characteristics of the individual market. This requires you to have some questions ready; once you find the answers to all these questions, your search is over. Whether the cost of the type of property you are looking to invest in are decreasing or increasing. Find out if there are many options available for you to choose when investing. Find out if your favorite rental properties are falling or rising. Gather information on the economic situation of the area in which you plan to buy a property. Finally, whether land, a house or building in which looking to buy you will achieve your goals cash flow and capital appreciation.

It was found that most successful investors rely heavily on their instincts. However, intuition is certainly not the only thing they think about when making a decision on these issues. They also run the numbers to make sure that the money you are looking to invest will bring good returns. You must decide on the basis of the combination of the two, instincts and numbers.

Analyse Financial Performance Part 1

When looking at a commercial property of any kind that you need to spend time in the financial aspects of the property before forming an opinion on the price you think you can get. The financial aspects of the property can have a big impact on the price and not the interests of buyers. The financial aspects of a building or property can affect active for many years and for this reason, must be analyzed and identified.

We have detailed some of the key aspects of financial participation in the purchase of goods or sales scenarios. While these are not the only areas of life and concern, are the most important in most circumstances.

We recommend that you create a list of these items for your review and inspection of the property is much better and professional process.

1- Bank Guarantees : An investment property includes leases and other documents that support the tenant occupancy . A process of regular rental and involve creating a sort of guarantee to be provided by the lessee to the lessor during the lease term. It is important that this guarantee strength and substance to reimburse the landlord in situations where failure of the tenant under the lease. At the time of sale of the property , the security documents must have some sort of ability to transfer or re-issued to the next buyer. This process is known as a collateral assignment . You should consult your own lawyer to identify the types of implied warranties and the ease with which this can be achieved at the time of sale.

2- The schedules of assets : The property contains many movable and immovable property . These are usually listed in the asset register . A well maintained commercial space will be an asset register for consideration . Obtaining registration of assets in the early stages of considering selling is productive because it tells in detail what sells and later became part of the due diligence process .

3- Tax and GST : Each country and location of the property has its own unique tax laws and requirements relating to the particular property and real estate investment. In the sales process , it is important to understand that these issues are properly addressed and updated . Sometimes you need to access the net benefits of the property in recent years been applied to tax returns and filing process. You can also request written confirmation from the owner of the property that all tax matters are ongoing.

4- Capital Expenditures : Key of assets that are replaced in a commercial property are generally considered capital expenditures and are detailed for tax purposes and depreciation for a period of time. Tax laws where states repayment terms that apply to different types of capital expenditure. For example , a team that is purchased for the control system of the building will depreciate much faster than the air handling unit , which was bought by the factory air conditioning . Records properly maintained property include a detailed record of expenditures and assets when the goods were acquired. Property buyers will be interested in this case is against depreciation cash flow in the coming years .

5- Independent Evaluation : Many owners get a regular assessment to support the financing of the property package. It is not uncommon that each year these assessments occur . Mainly carried out by a qualified and accredited expert . If you see this documentation and taken into account in the assessment of the property, it is convenient to consider the true independence of the evaluation has been done and its relevance to today's market . Some assessments for funding can not be on par with the current market conditions . Penalty may seek a truly independent assessment at the time of sale or preparation for sale.

6- Income and income analysis : The property income is a reflection of leases and occupancy of these permits. It is essential to understand that the rent was collected pursuant to leases or licenses, and that all questions are current rental . Part of this process also involves checking the profile of rent review and lease maturity profile. A volatile property with a lease or leases that are about to expire is likely to affect the price or buyer interest . By examining the occupancy rate against tenants leases must examine the original documents and overlap that the leasing program and any discussion or information provided by the owner.

7- Lease disputes : It is rare property that has no existing lease dispute has been affected by a conflict of previous lease . For this reason , it is useful to consider the grounds of challenge and resolution of the lease. If in doubt , ask for a copy of the correspondence and any subsequent agreement between the parties concerned . Disputes unresolved rental can jeopardize or delay the process of selling the property.

8- The issues of property tax : property tax on land has a direct impact on aspects of commercial real estate investment . In different places , recovery and payment of property taxes is affected only by local law . In some cases , property taxes may or may not be recovered from the tenants to the property. This will have an immediate impact on the income statement and the net income of the property, which affects the price . Consult your financial advisor for the owner of the building or the tax administration will achieve clarity in the tax incidence . Like most agents and brokers are not tax experts , others must involve tax professionals , as appropriate .

9- Operating Expenses: Operating a commercial property involved in operating expenses due to operating costs. Most of the properties of different types in the same location have similar operating costs. However, if a property has excessive operating expenses , higher than the average in the region , the property is likely to be difficult to sell. Most property buyers include the average expenditure on buildings that are considered realistic for each property. This also indicates that real estate agents and brokers must be aware of the average costs and the process of analysis to be applied in this situation. Operating expenses are analyzed on the basis of $ ' s per m2 or $' s per m2 ( depending on your location, the monetary base, and country)

10- Leisure mortgaged : Most commercial mortgage real estate properties will have some sort of financial support. When there is a mortgage, you must understand how it is handled or unloaded in the sales process. The client should consult the mortgagee to clarify these questions for you. In a situation of distressed properties , the sale of the property may be required to achieve a given before clear title can be reached price.

Best Insurance plan for protecting your interest

The protection of property is the owner's responsibility and accountability becomes even more pronounced in the case of commercial properties. The best way to protect the lives, property and the property is still the best insurance policy and that is why this insurance is very important these days.

Different types of insurance

Different types of insurance for commercial properties are there. This is particularly

Comprehensive insurance covers movable and immovable property.
Insurance for properties where the extent of the property are covered by the insurance plan.
Contents insurance covers all goods that are present in the insured property. Includes furniture, all kinds of antiques, paintings, carpets, and the like.

Factors Taken Into Consideration

When deciding the best type of insurance for commercial property, some factors are always taken into consideration. These factors are

Total area and extent of the property.
Type of landlord to whom such commercial property belongs.
Types of tenants are also an important factor in determining insurance..
Possible excessive amounts that would be needed because the allegations made by other people affected, including employees.
Policy discount rate and the premium that has been chosen by the insured.

When insurance refers to the owner

In many cases , the insurance on commercial property is also related to homeowners insurance . For example, the insurance plan you buy rent. In the event such insurance is necessary that all eventualities are covered so that all the requirements of the insured are covered perfectly. When the policy is good and complete and that the coverage provides for the reconstruction of the property as well as other requirements and liabilities of the lessor to the lessee , and the public , as well as loss of income and such others.

Insurance is vital for the owner

Basically , the owner and commercial real estate are two aspects of the same thing. An owner leases the property it owns and which obviously is owned commercial value. Insurance for the protection of property is of vital importance to the owner. However, most homeowners also make the mistake of considering the same owner home insurance should be sufficient for commercial real estate as well . Unfortunately, this is far from the truth . Owner of the house that does not help when the owner let your property as it is now marketed by leaving the place of money.

Top 10 Secrets of Successful Commercial Property Ownership!

1) What is your type?

There are many different types of commercial properties that you can buy, including:
- Office
- retail space
- Funds or warehouse
- restaurant
- commercial condo
- Strip Mall

The first step is to clearly define what type of property you want to buy and how much you want to use. The following information will help you maximize your investment dollars to get the best deal possible when purchasing real estate.

2 ) Build equity Through its investment

Equity is money
Building equity is the main, if not the ultimate reason for buying instead of renting a commercial property . Let's face it . This is money in the bank. In fact, it's better than money in the bank because you can get the same kind of return on your money when you're sitting on the bench rather than when you build equity. On the other hand , if you choose the right financing for the purchase of commercial real estate, you can not only build equity through ownership , but you can also use their savings capital to grow your business , hire additional employees, or even buy an extra slot when the time comes .
Having beats rent because you can sell your investment once exceeded the space or sell the business . While commercial real estate in your area has not been appreciated (which is unlikely ), you can recoup your investment by renting space once you move and sell when the time comes .
If you are thinking more in your building , you can buy something that exceeds your current needs , and rent additional space until needed for expansion. This will give you a steady income that can be used to help pay your mortgage or invest in your business .

3)Do your research

The more you can learn about the properties and options , mortgages, financing , zoning and remodeling , will be in the best position to make informed decisions about the acquisition of a commercial property.
However, you do not need to know everything. This is where the development of a strong team of competent professionals in their fields of expertise can be your most important step . Build a team of advisors - people you can trust to guide you in the right direction is critical to your success .
Understanding the current market conditions
Keep your eyes open for news articles relating to the procurement of commercial real estate. Is " hot " right now ? It is a buyer or a seller's market ? What types of interest rates are available?
The Internet is a great place to start . Perform a Google search for " commercial real estate market ," for example , will give you the results that include news and resources for national trends , analysis and market research .
In addition , many real estate agents, lenders and lawyers across the country offer free articles and timely information on their websites that highlight trends in commercial real estate in the country today . Again , make sure to listen to both sides of the story .
Click Expert Resources
National market research companies can give accurate information about the area where he is preparing to locate your business . You can also find information on demographic characteristics, including average age , household income , the disintegration of ethnic groups , and most of the censuses available from the U.S. Census Bureau .
Also contact commercial lenders or realtors additional resources. Seeking help, it is usually best to talk to a lender or experienced in the country and up to date information from a minor operation that can not have recent data for your real estate agent. If the lender / realtor failed demographic updated since 1996 , you basically wasted. In addition, a lender or real estate agent who specializes in the type of property you are looking for is more likely to have specific information you need , you can save time on research.
Study, the current vacancy rate
Research that the unemployment rate has been over the past year in the area that interests you. If it appears that there are high levels of vacancies , try to find out why. Is it a bad neighborhood ? Talk to store owners in the immediate area and how long they do business there. Ask them if they have any concerns that you as a potential owner should know about the area.
Realtors Commercial Research
It is important to look for commercial real estate agents who specialize in the kind of space you need. Grill on the property that you plan to select the procurement process around so that you know what to expect . Ask how long the process usually takes surprises. Check their references and history (more on the search for a commercial real estate agent in No. 5) .
Browse experienced commercial lenders
Choosing a lender and program funding is as important as the choice of the property. Again, know all the funding process and its various characteristics . Do not assume that because you have had a relationship with your bank for years that the use of funds is the best option .
Banks do not always offer the lowest rates for commercial loans , and have a change sometimes much longer than non-bank lenders . Some banks require to transfer their accounts to qualify for a loan. Be aware of the provisions for a bank for a business loan.

4) Plan your plan

As a business owner, you understand the importance of carefully planning every move. Buying a property requires less preparation . Before you start looking for a building , sit down with your finances and determine how much of a mortgage you can afford to take .
Create a budget
In calculating your budget to buy a property, do not let taxes, insurance premiums , and repair and maintenance and the cost of customizing the space to meet your needs. Failing to create a budget for these expenses often overlooked quickly put you in the hole with your new property. If you need help creating this budget , ask your realtor or commercial lender for advice .
Room to grow
To determine the amount of mortgage you can afford , consider your income and expenses. Your mortgage and property expenses which should leave enough space to run your business without breaking your normal expenses.
Sometimes it is necessary to accept a reduction in benefits to gain the kind of space you need to grow. Think of it this way: the purchase of a larger space will allow your company to stretch their wings, which will result in greater benefits in the future. It is a risk that must sometimes be willing to take if you want to develop. Remember, if you buy more space than your company needs immediately, you can acquire tenants who provide rental income can significantly offset your monthly mortgage obligation.
Planning Ahead
It is almost always a good idea to buy a little more space than they actually need . You can rent additional space until you need it . If this is your plan , draw how you earn an income to help subsidize your mortgage. However, do not forget that you can have periods of the space is occupied , it does not rely on the income to cover your mortgage every time. Make sure you can pay the mortgage on their own .
Having an exit strategy
So, how to stop it ? Hopefully with big dollar signs . After all, that's why you invest, is not it ? To collect the time of investment . Therefore , you must have an exit strategy .
You can choose to keep your commercial property to retire, real estate is an asset that can provide a steady stream of passive income : a strategy for lucrative retirement.

5) Calculate your savings and profit potential

Reduce monthly payments
Consider the purchase of commercial real estate as savings for your business. Real estate costs are the third largest business expense , behind payroll and taxes. Repayment of borrowings long means your monthly payment could end up being less than what you would pay rent because the owners tend to require more of your monthly loan payment . In other words , owning your own commercial property can actually be more affordable, based on current market conditions.
Ask your lender to provide an analysis of the current market in your area and you can see which scenario is best for you (rent or purchase ) . The lender should be able to explain the options in detail with examples of monthly rental costs compared to monthly payments and the benefits of each .
Analyze the rental value
When you find a property that peaks your interest, check the status of current tenants ( if it is a multi-tenant property) in terms of the amount of rent they pay. Check if the current market rents are undervalued , which is less than what you can get on the market today. Your real estate agent or lender should be able to help you determine how much you can pay for rent and determine the amount of profit you can make each month.
tax Benefits
There are many tax advantages to owning a commercial building. In most cases, you can deduct a portion of the value of the property at tax time , and the improvements it has made to the damping , which can save more money on your taxes. The purchase of the property in your business or company name is also a better tax strategy under your own name.

6) Consider your schedule

If the reason you are looking for a commercial property because his contract ends , think twice before jumping into a decision you might regret . Finding the right space , obtaining financing and go through the process of obtaining a commercial building can take months . If you do not have that kind of time , you may need to rent month to month now.
Take your time
While you may be eager to move into a space, take your time. The purchase of any type of property is an important decision, and buying commercial real estate is even more important for the development and growth of your business. Selecting a property in the wrong area , or an area that can help you grow your business and even harder to fail , so plan carefully .
If the real estate agent or lender provides an estimate of three months from start to close , the plan for more time - just in case . Note that there are many people involved in the process of purchasing a property, the seller , real estate agent, lender , appraiser , surveyor, paperwork approvers , secretaries , and more, and this process can often take a little longer .

7 ) Location , location, location

One of the most important factors to consider commercial real estate is location. If the property is located on a busy corner that is hard to find, your business can not do well (in fact, this is probably the reason why the property is for sale) . If you want a kennel and the property you are considering is in a residential area , not only will your business disturb residents, zoning can prevent operate there .
Foot Traffic
For a retail business , look for areas with high foot traffic that will give you exposure and increase walk- ins you need to succeed.
If you are looking for an industrial or manufacturing setting , then you can stay out of the spotlight now and buy something in a warehouse district . These areas are usually cheaper than the stores.
easy to reach
Make sure your site is easily accessible by road. Look to see if the site is in a difficult crossroads . Is there work in progress that seems not to end in the short term ? Also, what is the building once the potential is over?
Discover competition
If you want to open a restaurant in a neighborhood that has several bars , you may want to try somewhere else with less competition . However, a healthy population of restaurants usually means a healthy population of clients.
Know Your Customer
Study the demographics of the area you are interested If you want to move your sports shop to a new location , you probably want an area with a high percentage of young and active adults. An urban area with lots of foot traffic could be better for this type of retail store in a suburban retirement community .

8) Choosing a care provider

There are several types of lenders available to help you with your commercial real estate financing . But please note that not all are created equal. Do your homework when looking for a lender that fits your specific needs.
It is important to find a company that can provide broad access to capital, to understand their priorities, we offer the best price for your loan and complete the process in a timely manner .
Types of lenders
There are three basic categories of lenders : lenders, direct lenders and indirect hybrid . Direct lenders lend their own funds. Some examples of credit institutions direct lenders include commercial real estate , banks and private lenders . Indirect lenders place funds on behalf of others, and include mortgage brokers and mortgage bankers and financial intermediaries . Hybrid Lenders pay both its own funds and loans for the account of others , and include some investment banks, investment advisors and credit companies.
Banks generally widespread in services, and offer a wide range of products. While this may sound good , think for a moment . Would you rather have a lender who knows a few financing options, or much about three or four products designed specifically for you?
Credit institutions are more specific in nature and are experts in the products they offer . Banks are more traditional in their financing products , while banks are more entrepreneurial and creative.
Banks often require financial relations come under its aegis , including deposits , location , while non-bank lenders only work with a real estate loan.
The U.S. Small Business Administration (SBA ) is an excellent resource for small businesses looking to expand your business or buy property for commercial use. The SBA offers tools that can help you plan your next move and loan programs for a variety of commercial purposes. The SBA itself does not grant loans, but works through banks and non-bank lenders who offer loan programs for small businesses that meet their needs .
From the beginning
It is important to choose your lender early in the process so that you can maximize leverage and achieve a lower cost of funds. Your lender will require a way to determine their eligibility for funding and to find out what kind of deal you can negotiate.
You will need to provide your income tax and expenditure , balance and personal financial statements of all future owners of the property. If you have not already written , you must create the profiles of the management team , including information on education and employment history and relevant experience for your business. Other necessary documents include an assessment of the property, contract of sale, and plans to use the property. The provision of these documents on time can help simplify the process. Again, your real estate agent and lender to help you through the process .

9) Know your financing options

While in the phase of "shopping" for a store to buy, you should start researching your financing options. There are many types of financing options available on the market , so it is important that you find one that best suits your needs . It is also very important to know how you are qualified to borrow. This will help you and your real estate agent to find the type of property for you quickly.
Regardless of the type of loan that you end up being the negotiation of the loan is based on the same basic elements: the intended use of the property, the expected return on plan assets or activities conducted therein , geography, type and size of the property , the perception of risk for the lender and market conditions . There is no charge for any commercial funding. The type that you receive is based on your particular situation.
If interest rates are low , ensuring a low fixed rate means you pay less interest on the entire mortgage . A variable interest rate , which is considered by some as more risky , can give you a lower amount for a period ( before the increase ) , allowing you to use the money saved for other investments .
When weighing your financing options, do not forget that some debt is good. Do not assume that you should take the loan obligation of higher down payment so that you can "pay off your debt faster . "He put more money means that you have less resources to invest in your business.
Term loans
Based on the amount of money you need to borrow , there are several financing options available . An option is a long-term loan . Term loans can be used for a variety of reasons, including financing permanent working capital , new equipment , refinancing , expansion, acquisitions and , of course , buildings.
There are loans specially designed for real estate and commercial equipment . Banks normally lend up to 80 % of the value of the property to be financed, and the loans must be repaid within 15 to 20 years. If you are able to find the remaining 20 % of the cost of the property ( and have no better place to invest money ) , there is an option to consider.
Up Up and Away
Beware of balloon payments. By paying a very low monthly amount initially sounds good, you often end up spending more money to refinance your commercial mortgage loan as lenders reset or interest rate and review your company during the term of the loan .
line of credit
If you want a more flexible loan, you may have the option of a credit line that can provide liquidity as necessary, up to a ceiling . Credit lines almost always have a variable interest rate , and have interest only payments for the first one to three years .
Private equity / joint ventures
Equity financing involves joint ventures with investors who have the capital . Usually , the investor will receive a percentage of the profits of their business in exchange for the capital you need to buy the property or shares of the company if it is public.
Some investors take a backseat to their executive decisions , while others will want a say in the running of your business . Joint ventures are not for everyone , so consider these factors when considering a .
SBA Loan Program 7 (a )
The SBA has a variety of products that are ideal for small business financing . The SBA loan is the most widely used loan program 7 ( a). The loan is granted by banks or non-bank credit.
To be eligible for a (a ) loans in July, your business must be for profit , and can not buy property for investment purposes. There are many other guidelines to qualify for a (a ) loans in July. The maximum amount a company can borrow a loan of 7 (a ) is 2 million. In addition, 7 (a ) SBA loans have variable interest rates tied to the prime rate . This type of structure of interest rates can make you vulnerable to fluctuations / quarterly monthly interest rates can have a significant impact on your monthly mortgage payment .
Now you can see why it is so important to find a commercial lender that can help to digest all this information and take the time to explain your options .

10) Funding for Best Kept Secret

One of the main reasons small businesses choose to rent rather than buy their own commercial real estate is the perception that they can not afford the down payment. Many of them are not aware that SBA loans are available to eligible applicants and can provide up to 90 percent loan financing costs .
In fact, the 504 loan program was designed to help small businesses in the construction or purchase of properties , while encouraging business growth in the local economy.
Only 10% of low
While in some parts of the country , using the 504 loan program is widespread, there are other areas such as the Rocky Mountains , where the program does not receive the attention it deserves . If you are unable to remove a large part of the cost of the loan, the 504 is worth looking at : requires only 10% - and no closing costs in addition to the 10% drop ! ( Please note that there are some basic criteria that must be to qualify for the program 10 % down . Good work with the lender that you can do your best to help them qualify for this benefit. )
The other 90 % of the funding comes from two places : up to 50 % of total costs (land, building, renovating and indirect costs ) are paid by a senior pledge of a private lender , and up to 40% comes from a junior lien from a certified development company (this part is backed by a 100 percent SBA- guaranteed bonds).
Small payments
As most banks and loan programs require a minimum of 20-30 % of the cost of the property, and do not fold in indirect costs and cancellation fees , 504 loans are a great way to get the best of all : paying only 10% down to hold more capital and are able to make small payments over the term of your mortgage loan.
Because it has two separate loans with the 504 , you get a mixing rate that is below market . The first loan is fixed or variable, is equal to or slightly higher than conventional financing. The second mortgage loan ( 40% ) is significantly lower than market interest rates , and fixed for the term of the loan . Have a lower interest rate allows your company to maintain more capital.

Finding Homes For Your New Property Business

Last time we looked at Market research and one of the topics to be researched was properties that are currently available to rent in your locality. You can find these on your competitor's web sites and listed in the local press. Make a list of ALL the property available near you. It's an excellent exercise to type them out on your word processor and list them in order of price. Most property letting agencies list prices as PCM. That's price Per Calendar Month, though in some areas prices are listed on a per week basis, especially in and around London. Make sure when you compare prices, you are comparing like with like. You'll need to double check to see how the agencies list properties in your country, in your area.

As each newspaper ad appears, enter the new prices on your list in the correct position, cheapest first, most expensive last. What's the point of this? You are soaking up almost without noticing what a detached bungalow might be worth (rental wise) in one area of your town or district, or a two bedroom apartment in another. It's all part of building your knowledge into becoming THE local expert in property rentals. And when it comes to valuing properties for rental for real, you will already have a comprehensive register to refer to. True, these properties are not yours, not yet, but that doesn't matter, you can go to school on these valuations, and they will teach you a great deal.

But of course you need properties to let yourself, so let's get them. But where are you going to find them? They are out there and they are waiting for you, believe me, more than ever before. Here's where. 1. Do you or any of your friends or relatives have any property sitting empty? Has anyone you know passed away recently? If so what has happened to the house? Do you know of any property that has been up for sale for months and hasn't sold? Any of these could be your first instruction. Check out with the owners and casually ask them if they have considered letting. If a property is standing empty it is costing money. If it is let, it is producing money, and that's a big difference. And think about this. When people inherit property why are they always in such a hurry to sell anyway? The answer of course is money, they have probably never seen so much cash before, and can't wait to spend it on a world cruise and a German sports car. But what happens in a year or two when the money has gone? They are back to square one. Stoney broke.

But if the house is rented out, that property will generate money forever, not counting the fact that over time it will increase in value too. You can only sell a house once, you can rent it forever, and like everything else over time those rents will increase. If you know someone who is desperate to sell a house they have inherited, have a word with them. Point that out to them. Why Sell? Why do people sell? It is a mistake. If they are desperate for some cash they could always see the bank manager and take out a loan, but keep the house. It is a cash cow, always has been and always will be.

Secondly, why not rent out the house you live in now? What! Yes, I'm serious, you want property to let don't you? Why not start with your own? Perhaps the kids have grown up and left home and you are now bouncing round in a large 4 bedroom home. Do you really need all that space? You probably don't. So why not rent a smaller cheaper two bedroom bungalow to live in for a year or two, and rent out your house? You're not selling your home after all, and if you miss it that much you can always move back into it when the tenancy agreement expires. And if you are going to rent out your own home, make sure you value it highly, because there is no point in going to all that expense and trouble unless you are making money doing it. Right? Value it highly and if it lets, you make money, if it doesn't let, so what, you have lost nothing. I have done this twice and it worked very well for me.

But we want more, of course we do. Put on your walking shoes and get out and take a trip round the area. Take a notebook and visit all the sites where postcard ads are displayed. This might be at the post office, a works canteen, a supermarket, shopping malls, the newsstands, anywhere where small ads await you. It's common to find properties listed there. May be two or three on each site on a good day. Jot down the details and especially the telephone numbers and return home. Of course these properties are not yours either, but with a little effort they could be. How? By ringing the owners of course.

Cold telephone calling is not an easy thing to do, and should only be done when you are feeling at your brightest. Make a couple of notes of what you have to say before you call anyone, as we can all dry up on the spur of the moment. Smile, and ring them up. You don't have to see a person to know if they are smiling, you can hear it in their voice, and don't we all prefer to deal with cheerful attractive people? Everyone's attractive on the telephone! You ring, and the person answers. Imagine it is someone advertising an apartment to let for 500 per month. Be polite, say good morning, be honest and upfront and tell them that you have recently started a new lettings agency, that you have good tenants waiting, (you will have the moment you begin to advertise, and I'll come back to that.) and that you might be able to let their flat. Sit back and wait for their response!

Some landlords will not speak to agents under any circumstances. Some landlords would not do business with an agent even if you offered them 10,000 per month and free beer forever. Life's like that. Landlords are the same as the rest of us, some are open-minded and will consider any reasonable suggestions, others are closed minded and stupid, some are downright rude, abusive even. Good luck to them. All you were trying to do was help them let their property, and if they couldn't see that, it's their loss.

Some landlords might say "no I need 500 just to cover the mortgage so I couldn't afford to pay an agent fee on top." That's OK, you could pay them that 500 per month, if you let the property for 550 per month, (allowing for your 10% commission)and that's so close to their price as makes no difference. Suggest putting the flat on your books for 550. At this stage all you want is the instruction. In the initial period price is secondary. Get the instruction first, and then worry about letting the property afterwards. Tell the landlord you would be happy to put it on for 550, and as it will be on the basis of no let - no fee, what has the landlord got to lose? Nothing, in effect they are employing you for FREE, they only pay you anything if you succeed. Most intelligent people could see the merits in that.

And then there are the amateur landlords who have no idea what they are doing. Perhaps they have inherited granny's house, and they really don't want to sell it, but on the other hand they are too busy to be chasing round after tenants all day. Perhaps they don't know how to find tenants, or how to reference tenants. Not everyone knows this, don't imagine they do. These landlords are precisely the kind of people you are looking for. They are the perfect client for you and when you come across them, court them furiously. You could solve all their property problems for them, and make some money for yourself. Suggest they might like to meet you at the property that is to be let.

If they show any inclination to do this, make an appointment to go and see them as soon as possible. Don't make the appointment for next week; don't make the appointment for tomorrow, what about this afternoon? What about in twenty minutes? Enthusiasm is everything. Huge & Impressive probably couldn't meet them in half an hour, but you could. Take your camera and ask if it is OK to photograph the house. Take your diary and note everything that needs noting. You don't need to measure the rooms, no letting agency does that, don't even consider it, as it would be a waste of time and could cause you headaches in the future if you made a mistake.

Remember, you will do anything within reason to land that property, and if it includes going out in the rain in ten minutes time, then do it. You can do exactly the same thing by ringing private small ads you see for property to let in the local paper. Ring them up, introduce yourself and offer your services. Offer them a small discount if need be. But remember this, you will be backheeled many times, rejected, but hey so what? You will also be invited to take it further plenty of times too, I guarantee it. Why? Simple, because there are so many new and amateur landlords out there, many of whom have property standing empty, and many of whom simply cannot afford to have no revenue. If they do, they run the real risk of the house being repossessed if the mortgage isn't paid. Not all landlords are rolling in cash, it's very easy to get into buy-to-let property, but sometimes very difficult to get out of it. These landlords are trapped, they HAVE to let the property and that is why many will be only too pleased to hear from a cheery character (You!) who might solve all their problems. Be persistent, keep at it, and once you have put together three or four properties you will be a step closer to truly launching your business.

Useful Mortgage Tips

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Submerge mortgage advice? Many people have the opinion of everyone on the planet when it comes to buying a house. People who tell their version of advice on most important factors and expect the potential home buyer to do as instructed.

This is good advice and what is bad advice? Use your common sense. Here are some tips we mortgage. We believe this will help you find the best loan and avoid problems with the advice of the family on the way!

Getting pre-approved for a mortgage before you get your hopes placed in a home. When it comes to buying a house, you must know the amount of mortgage you can afford. When you do, you can find your dream home you can afford. Therefore, lenders achieve before seeing the real estate agent!
Find the best interest rates. Whatever type of mortgage you choose to make, our advice is to shop around and compare interest rates. A small difference in a bank or lender to another is thousands of dollars over the life of the mortgage. The board is the most important feature to help you save money.
Compare apples with apples, but comparing all is our opinion. Finding a balance in the amount of money you pay each month and is ready to short advice. Again, go around all the different options and prices.
When it comes to determining the opinion of the lender and the mortgage, take the time to examine all aspects of the mortgage. Take these tips, it will help! This includes the cost of dismantling the costs involved, and all the conditions of the mortgage. The best mortgage advice is that you must choose the term of the mortgage is the best choice for you.

The next time you receive advice or long lost cousin uncle buy mortgage, think about what really matters. You need a lender who offers the best price

words, and the best overall service. Need advice on lenders to choose from, but you know the best lenders for one person may not necessarily be the right choice for you. Mortgage Advice should be solid, full of good advice, not biased attitudes and advice should be ignored!

Finding good mortgage advice starts with just doing basic research to find the answers you need. Do not go to the bank Aunt Sue because she's been there for 30 years, if a mortgage online can offer you a mortgage at a fraction of the cost. Our mortgage advice, do your research before

obtaining a mortgage. This is the best advice you can get!

The Successful Real Estate Investor

So you want to be a successful real estate investor? Well, you must have goal setting online. To have the best chance of achieving your goals be SMART goal. Now, not the definition of Webster smart but smart as an acronym for specific, measurable, achievable, realistic and timely. I want you to write these five words on a piece of paper, because all of your goals should be checked to ensure they comply with the standard intelligent.
So, first let's see the S in smart special meaning. Your goals should be specific and say exactly what you want to happen. Being specific is used to apply their efforts to effectively and clearly defined what they will do. The details of its objectives are what, why and how. Ask yourself this question: what will you do? Answer this question with action words such as learning, buying, creating, and so on. Why do you want to achieve this goal and what you want to achieve now rather than later, and finally, how. How are you? You must ensure that each goal you set is specific. Rather than setting a vague goal like I want to invest in real estate, set a specific goal, as I want to own two rental properties all cash flow $ 250 per month after all expenses. See how to be more precise planning can be much more accurate.
Okay, now to the M in intelligent, this means measurable. Goals that are too large are difficult to handle and if you can not manage your objectives them is not so simple. Measurable aspects of goal setting focuses mainly on short-term goals when it relies on you to achieve your long-term goals. Take, for example, our previous specific objective of having two apartment buildings each cash flow $ 250 per month after all expenses. To achieve this goal, it is necessary to establish measurable short-term goals, such as obtaining financing, localization properties, rehabilitate if you are worried, heck you might even have to learn how to analyze a rental property know although cash flows. See how, even if our goal was specific objectives still need more accurate short-term to increase their chances of reaching the goal. The last point I want to address measurable goals is that you must have a meter to measure against. Establish concrete criteria for measuring progress. This will not only keep you on track, but to achieve these goals in the short term, there is the excitement of knowing that you are one step closer to your overall goal.
Now, the A in intelligent, it means reaching. If you set goals that are too large or too far out of reach, not really commit to trying to reach. For example, setting a goal of buying 100 rental properties in the next 12 months, or to generate $ 250,000 in rental income over the next 12 months for most of us is not feasible. Goal setting like this, you can begin excited and ready to go for them, but after a while your subconscious will remind you that this objective is simply too to make and will become increasingly focused on achieving your goal and before long you stop treating everyone. The goal must be quite difficult as you have to work for it, but not so difficult that you have no chance of doing so. When you reach a goal that is exciting and is pumped to reach the next. This is the attitude we need to have, not a continuous list of unfulfilled goals. Building Momentum with achievable goals is a sure way to reach the most difficult goals over time.
The penultimate letter R stands for realistic. Now, realistic does not mean easy, but it does mean feasible. If you have $ 500 in your name and your goal is to buy 30 properties next week is probably not a very realistic goal. This could be done, perhaps, but it is more realistic than realistic, yes. Set goals that require effort, but if they are too difficult to just open the way to failure. Furthermore, the objectives of setting the hand are too easy simply to show that he is confident and that you are not very capable. Set the bar high enough for the realization feels like an achievement.

Finally, we come to the T, which means time. This is pretty self explanatory. By setting goals must have a point of arrival or delay. That's next week, next month, in two days, no matter what the case should not be a time limit associated with the target. When it is not set a deadline that is not truly committed to achieving your goal. Without time there is no urgency to start taking action now.

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