Real Estate

Remember

• Five Real Estate Rules
• 1. Location
• You've probably heard this before from countless property agents and successful owners. There's a reason why housing prices in places like New York City and San Diego are ten times the price for an itty bit of land-everyone wants to live there, so the demand will remain relatively high. Even during difficult economic times, housing in prime locations will maintain value far better than less desirable areas. If you ever plan on selling or renting, location should be the top consideration.
• 2. Move Fast
• Buying property is something you need to think long and carefully about, but once you begin scouring the market for your dream plot, you need to be decisive and move quickly. The best properties get snatched up first and many sellers are willing to cut better deals if you swoop in at the right moment. Waiting too long on purchasing real estate can result in losing the property, the price jumping, or starting a bidding war with another hopeful buyer.
• 3. Inspection
• So you've found your prime piece of real estate, made the offer, are ready to sign the papers and start moving-but wait, you better have the inspection performed first. A real estate inspection is vitally important to ensure you don't walk into a dangerous trap. In many cases, the sellers were completely unaware of potential problems or issues with the property, which is why inspectors are an important part of the buying process. They will let you know whether or not you are making a wise choice, of perhaps if the price seems a bit too inflated for what you're getting.
• 4. Loans
• Before you even step foot onto a property make sure you have your loan and budget secured and worked out in detail. There is nothing worse than falling in love only to have to be rejected due to an insufficient loan. Having a secured loan beforehand is also a great negotiation tool and can give you a bargaining edge. Make sure that your budget is also reasonable and achievable. Just because you have been approved for a loan, doesn't mean that you can afford to comfortably make payments.
• 5. Be Picky
• Yes, you will have to compromise some when choosing real estate, but being picky isn't necessarily a bad thing either. Since it is currently a buyer's market, there are plenty of great deals that come up every week. So losing one property might mean a better one becoming available the next day. Give yourself ample time to search many properties so you'll find one that is as close to perfect as possible.

 

Legislation

All real estate transactions that take place in the United States are governed by legislation. However, contrary to popular belief, it is not a bureaucratic nightmare that many make it out to be.

The legislation is actually pretty straightforward for foreign investors, and not much different than it is for a citizen of the US. The one big exception to this is FIRPTA.

FIRPTA stands for Foreign Investment in Real Property Tax Act (FIRPTA) and was passed in 1980. It deals with how gains are taxed when a non US citizen sells their piece of property.

Prior to 1980, there was really nothing in the US Real Estate Legislation that encouraged tax compliance when a foreigner sold property in the US. FIRPTA changed all that. This allows it to impose an income tax on US property sold by a foreign investor.

To ensure collection, it also requires the buyer to withhold 10% from the sale price and send it directly to the Internal Revenue Service, the governing tax body of the US. Some states, like California and Hawaii, also require a similar withholding tax.

This 10% is not the amount of tax due on the property. An advance payment to the government is required by FIRPTA. Once a tax return is filed for the year, and the final income tax is determined, the money is used toward the income tax due, and a refund is granted if necessary.

Nevertheless, just like with any other tax law, there are ways in which FIRPTA can be avoided. Should a foreign investor choose to "exchange" their property for another piece of comparable US real estate, the gain would be deferred, and no FIRPTA income would be realized on the sale.

This is called a 1031 exchange. A third party intermediary is required for this type of transaction and no proceeds may be received from the sale, no matter how small. A certain number of criteria must be met if you want a 1031 to take place as well as keeping strict timelines. All in all, it's potentially a great way to transfer your investment to another part of the US.

While you may be looking to buy property in the US, not sell, you need to be aware of the implications of FIRPTA. With most foreigners holding property as a long term investment, the implications are not immediate, and certainly not a reason to shy away from the lucrative gains to be had in the US market. It is however, always good to have a thorough understanding of any US Real Estate Legislation that impacts you, and an exit strategy mapped out well in advance of when you need to use one.

Sell your house in profit

Selling your home can be a giant task, you want to get what you deserve for the house but you don't want it to take too long. There are many things that can help you to sell your home, whether you need to sell it quickly or if you can wait and get a little longer and get the price you truly want for it. There are certain tips that need to be thought of when you are selling your home.

There are many tips that can factor in when you are selling your home, whether it be the first time you have sold or a home or if you have sold many before. One of these tips is that if you are trying to sell your house quickly is it is beneficial to include a bonus for the real estate agent that is selling it. This extra bonus on top of their normal rate gives them extra incentive to work extra hard and focus more on getting your house sold. This bonus could result in the real estate agent offering more time to your property and offering more potential buyers showings. All this will help your home sell faster.

Sometimes when you are selling your home timing is wrong and you have to sell your house before you buy the house you will be moving into. Or it can go the other way and you may have to buy your new house before you are able to sell the house you are currently living in. In cases like this it is important to have a meeting with a quality real estate agent and work out exactly what it is you want to do. Things like being flexible on the closing date and other things of that sort will all help in making the selling of your home happen both quickly and efficiently.

There are many different factors that go into selling a home. Knowing the ins and outs of this process can be very vital in things of this sort. That is why doing all the research possible before selling your home can be very important. Knowing all the different tips that help immensely when it comes to actually getting your house sold. Having a good real estate agent to help you with all these things is just one way to help you figure out all the tips that go into selling your home.

Investing in real estate

Real estate investors behavior modification leads to a massive 800% increase in rate on investment!! The majority of residential real estate investors invest with their hearts instead of looking at their investment as a business, a business that needs to provide cash flow to cover the operation, these investors are content with a return often in the 2% range or even worse in negative territory. When asked the investor will say that they are looking for capital gain and tax benefits so are comfortable with an investment that is showing a negative return.

This form of investment strategy is endemic in residential real estate investment, and investors are conditioned to believe that this is good. To maximize your profit take note of and avoid the following pitfalls this will require a major adjustment to your thinking and investment behavior.

Behavior pitfalls to modify:

1.Do not fall in love with your investment property: Many property investors make an unnecessary mistake when they start their career in property investment.They look at their investment property in the same manner and with the same feelings as they do when purchasing their own home to live in and this is a critical mistake as emotion rather than business acumen takes control,and the principles of investment fly out of the window. Investing should encompass the principles of a sound investment and investors should look at the investment as a vehicle that will deliver the results that they are seeking seamlessly. Let me explain again, when purchasing an investment property it should be all about the numbers and nothing about the emotions, look for the properties financial statement. Certainly let emotions dictate the purchase of the home you intend to live in where, you would ask yourself emotion charged questions such as I "like" the house, will I "enjoy" living in this neighborhood, and numbers will if at all figure last, liking and enjoying are all emotionally charged issues.

2. Change your behavior and start becoming a successful investor by evaluating the property investment by it's numbers it's financial statement. Start asking your self questions like "Can I purchase this property at a discount,or at a whole sale price", "Is there enough room for a healthy spread if I use this property as a cash flow tool"," How much of a spread can I get over and above the cost of money to purchase this investment". TIP: Keep emotions out and the numbers in, you will be glad you did.

3. Do not be Greedy: A major pitfall especially for quick cash investors, is the danger of becoming greedy, very greedy.They get a great wholesale deal on their property investment and then try and flick it for well above retail, instead of at or slightly below retail.This stymies the sale and the hapless greedy investor has to hold on to the property for a greater length of time and invariably will end up taking less than they could have, if they had sold at or just below retail.Greed costs you more than the gain so quit being greedy. Listen being greedy especially on quick cash deals will come back to bite you.

4. Remember the beauty of quick cash is the quick part. Price your quick deals to move quickly, you will end up making more money than if you were being greedy.

5. Why are some investors susceptible to being greedy? It's because they subconsciously fear that this deal will be their last. I call this the scarcity mindset. Don't fall prey to that. There are plenty of deals out there and this one deal will definitely not be your last, unless of course you want it to be. Start cultivating an abundance mindset, instead of a scarcity mindset move forward by pricing your deals to make you money and sell quickly.

6. Thinking you know it all: No one likes a know it all.... do you? This is an awful pitfall that many investors fall into and is particularly prevalent when it comes to investing in real estate,and gets worse after you have been investing for a while. They believe that they know all there is to know about real estate investing.

7. Listen, the market is always changing just because something worked yesterday does not in itself mean that it will work as well today, not only is the market changing but so are the rules and the laws governing real estate.

8. Real Estate is always in a state of flux.There is always something new to learn in the realm of active real estate investment for profit. Perhaps the learning curve has diminished for those that have learned the basics of real estate investing, maybe there is not as much to learn, rest assured you will never stop learning and there will always be surprises in store for the know it all.

9. Instant Gratification: Remember there is no free lunch and definitely no easy way to wealth.It takes time,effort and hard work, sorry you can't sit on your butt and wish or expect someone else to make you wealthy, it is just not going to happen. Unfortunately far to many people from all walks of life and sadly those that should know better,all want the "instant fix", the "silver bullet", "The secret", to making millions. They all have one thing in common they crave for the "secret" and even if there was a secret, they would want some one else to do it for them.

10. Sorry to disappoint there are no secrets, just common sense, effort and following the principles of sound investing,now this is where the vast majority fail they do not follow the principles of sound investment and if they did start following these principles, after a few successess they look at taking short cuts which invariably cause them hardship, you often hear these people wail why me... If you seriously want to be financially free and wealthy treat your investment as a business and ensure it creates cash flow.

11. These four major psychological pit falls plague potentially successful investors, to overcome them you need to modify your behavior starting with the way you think.

Not convinced? Want to know some secrets that the wealthy use constantly?

Secrets revealed below.....

1. Harness your positive thoughts and make them a reality. What you think so it shall be
2. Prepare to go beyond your present circumstances.
3. Nurture the ability to believe in your self
4. Set and achieve goals
5. Learn how to have a go
6. Take responsibility for all your actions, stop blaming others when things fail or do not happen as planned
7. The willingness to do what it takes
8. Buy property as a business and not tolerate loss
9. Buy property correctly and never pay to much
10. An aversion to debt, borrow only what can be comfortably repaid and still make a profit
11. Run your investments like successful businesses
12. Speak to and follow successful people
13. Have a positive mental attitude.
14. Take responsibility for your actions, if it going to be it is up to me.

As you can see there is not much that separates the wealthy from the poor, no it is not the amount of money. I could give a poor person a million dollars and by months end they would be poor again, because they have not developed the fourteen points above. Being wealthy is all about you, your thoughts, your beliefs, your attitudes towards wealth, riches money and your self. Your mind is the secret to you being wealthy or poor.

 

Real Estate Agents

With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations.The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.

1. First and Foremost YOU are a business. Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.
2. Embrace a Planning Attitude. If you don't have a plan, then you are on some else's plan - usually the successful real estate agent's. During the last 10 years, what I have learned as a performance improvement consultant or coach is that most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.
3. Research Your Market Plan. Since you, as the real estate agent, are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.
4. Establish Sales Goals. Using your strategic action plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.
5. Create a Financial Budget. Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.
6. Make Managing Yourself a Priority. Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate business training coaching continuing education units, and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.
7. Find a Mentor or a Real Estate Coach. Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the "peaks and valleys." If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help and sales.

Being an incredible sales person and entering the real estate market does not guarantee similar sales success. However, these 7 tips may help you avoid many of the pitfalls by not being one of the four real estate agents who quit within one year or one of the nine who give up after 3 years.