REAL ESTATE STATUS IN JUNE 2015
Real estate has a proven history of being a good investment. In the long term, real estate investments always provide a reliable ROI. In more difficult economic climates there are some things to watch out for in real estate. First, don’t believe whatever people tell you. Take the time to learn about how the market works and seek the advice of an experienced real estate agent. Don’t just believe in what you hope is true, get the facts from an experienced real estate professional. Second, deal with the reality that the days of flipping houses are over for a while. Right now a long term investment of at least 3 to 5 years is best for most buyers. Real estate brokers and their agents typically do not provide title service such as title search or title insurance, do not conduct surveys or formal appraisals of the property such as those required by lenders, and do not act as lawyers for the parties, although they may “coordinate” these activities with the appropriate specialists. Some real estate brokers may be associated with loan officers who may help finance buyers to make their purchase.
development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others. Developers are the coordinators of the activities, converting ideas on paper into real property. Real estate development is different from construction, although many developers also construct. Real estate brokers who work with lenders may not receive any compensation from the lender for referring a residential client to a specific lender. To do so would be a violation of a United States federal law known as the Real Estate Settlement Procedures Act (RESPA). Commercial transactions are exempt from RESPA. All lender compensation to a broker must be disclosed to all parties. A commission may also be paid during negotiation of contract base on seller and agent.
Real estate investing franchises offer thorough sales training. If you are good at sales anyways, that is a definite bonus and if you are not then the training will definitely benefit you. With the help of the trainers you can adopt your life learned sales skills to the home buying industry and excel quickly. A home buying franchise offers you the one on one training that could only otherwise be found by spending tens of thousands of dollars on mentoring programs. Also, with a franchise that mentorship type of program never really ends. Most real estate investing franchises are offered for 5 or more years, so you are pretty much guaranteed these types of benefits during that whole time.
Real estate investing involves the purchase, ownership, management, rental and/or sale of real estate for profit. Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive (although capital may be gained through mortgage leverage) and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment. The primary cause of investment failure for real estate is that the investor goes into negative cash flow for a period of time that is not sustainable, often forcing them to resell the property at a loss or go into insolvency. A similar practice known as flipping is another reason for failure as the nature of the investment is often associated with short term profit with less effort.
REAL ESTATE JULY 2014
Real estate “flippers” do not have the huge benefit of name recognition like an established company would. So, someone who wants to go out and start attracting prospective sellers will have a much harder time as a mom and pop type investor who is going at it alone than they would if they had the powerful name of a successful company behind them. Think about it…..if you had a $300,0000 house for sale and you needed to sell it quickly, would you be more likely to sell to Joe Blow mom and pop investor or someone who was with a reputable, established company? Obviously, you are going to go with the reputable company on such an important decision.
Real estate is one of the most challenging industries one can possibly be into. It is filled with rather wise, competitive, and strategic investors you’re going to meet along the way. It is somewhat a challenging economy for each and every real estate entrepreneur and it will be primarily important for you to consider things about real estate entrepreneurship first before making first hand moves, setting goals, and creating future plans in the business for success.