On the other hand a little one bedroom, one bath shack sitting in the middle of downtown Boston would be worth a small fortune. So you can see that the location is of the utmost importance when you are considering a piece of real estate to invest in.

The same thought process holds true when you are considering buying land in Costa Rica.

Like in any other country, you should ask yourself, “what makes the location of a piece of real estate valuable? The answer is reasonably clear. The value is based on nothing more than the desirability factor. Desirability is a fluctuating intangible that is really hard to nail down.

Property that is totally undesirable to one person might be just the next person’s dream-come-true. And this feeling is true for real estate investors and for home buyers and for renters. It is true for all aspects of the real estate market.

The main point for any real estate investor to consider first is what their strategy will be for making money from the investment. Buying is only half of the equation and whether the location of the property is good or bad depends upon that crucial profit strategy.

For example: If an investor is going to invest in a property with the intention of just waiting for the market to go up, prime real estate is probably the very best choice. Locations that are near entertainment centers or developing areas would be best because the likelihood that the property will increase in value simply by waiting is a pretty good bet.

On the other hand, if an investor is going to invest in a property with the intention of renting it and making a monthly income from it, he might be better off to look into urban properties. Urban properties wouldn’t be considered prime real estate but they are prime rental properties.

And we can’t forget the real estate investors who are handy with their hands. These people like to purchase properties below market value and fix them up. They can make repairs and renovations to rundown properties themselves, sell it for a great deal more than their purchase price and make a very nice profit. The location that these kinds of real estate investors often find the best is in neighborhoods that are made up of mid priced homes in working neighborhoods.

There are many factors that real estate investors consider when they are deciding which property to invest in.

Technorati Tags: costa rica, real estate

1) Do what needs to be done. Don’t cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase. You do not accomplish this by taking shortcuts and using shoddy workmanship.
2) Avoid spending money that doesn’t need to be spent. By this I mean don’t spend money creating more work. Most investors do this by tackling additions, ripping out walls, or changing the floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house. Otherwise spend the bulk of your money in kitchens and baths where they are best known for bringing in bigger profits.
3) If it ain’t broke don’t fix it. There is a lot of wisdom and experience in this old saying. There is no reason to go in and fix something that doesn’t need to be fixed unless doing so will improve the value of the house to its buyers.
4) Always work within a budget. Most investors set a budget for their money when planning to flip properties but very few manage to stick to that budget. This is the biggest difference in making the amount of money you anticipated and putting the entire flip at risk.
5) Create a home that the buyer will want to live in not the home that you will want to live in. You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it. Second, it sets you up for hurt feelings if a potential buyer rejects any small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it most often leads to unnecessary expenses, and more money and time spent which defeats the purpose of a quick flip type of project.
6) Time is money. Remember this in all things. The more time it takes to do the flip the more money it’s going to cost and the less money you are going to make. Plan small changes that have a big impact and can be done quickly to get the most out of your flip.
7) Never attempt a champagne flip unless you have a champagne budget to back it up. Just as flipping above the market is not a wise move it is also equally unwise to flip a house beneath your target market as well. Do not attempt to flip a house in an upscale neighborhood if you can’t manage the upscale building supplies and appliances that will be needed in order to make it a success.

While these aren’t guarantees for success they are solid advice that will minimize the risks you face when flipping properties.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

Technorati Tags: flipping property, house flipping, houses for sale, real estate deal, real estate investing, real estate investment, real estate investor

1) Don’t forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also make sure the plan you have drawn out for the property will match with the other neighborhood properties in order to make a quicker sale.
2) Don’t blow your budget without good reason. Your budget is what you used to determine whether or not the house would be a profitable venture. If you spend your budget and cannot recover the money you’ve spent in the selling price of the house you will have cut into your profits, if not cut them all together. The goal in flipping houses is to get in and get out as quickly as possible and spend as little money as you can in order to make a profit.
3) Don’t forget to set daily goals and hold yourself accountable to those goals. If you don’t reach your goals for the week it can set the entire project back as much as 3 weeks depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don’t neglect the exterior. Curb appeal is what brings buyers into the house. If you spend all your money, time, and effort making improvements to the exterior of the home you will have little left to make the outside appealing to potential buyers. A homebuyer wants to buy the entire package. A home that looks run down on the outside leaves the impression of being neglected on the inside and many potential buyers will never walk inside if the outside looks forlorn.
5) Don’t spend money you don’t need to spend. While it would be great to put in granite countertops and stainless steel appliances into the kitchens of every home it isn’t always practical and this is often money that you will not receive back on the sell of the property, particularly in homes that are in lower to middle class neighborhoods. If you want to get the most for your money avoid costly expenses that aren’t exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, paint what you can, and add a few cosmetic touches before moving on.

The market for real estate is a very fickle market. Avoid risking too much time and money on a property that isn’t going to recover those added touches and expenses. Instead hold onto those ideas for higher end flips once you have a few successful flips under your belt.

Technorati Tags: flipping a house, houses for sale, land, property for sale, real estate business, real estate investing, real estate investment, real estate investor

So, how does one obtain financing creatively? Some of the most popular, just to name a few, are listed here

Partnerships are fairly common because this is first thing a lot of real estate investors think about doing when they start out. Often new investors want to find someone who can front the money and then split the profits fifty-fifty. There are better ways to make more but this is an option.

Hard Money Lenders are individuals or companies that have cash ready for you to borrow. This is usually a better alternative than traditional banks even with a low credit score and it is a great source for getting funds quickly. Many hard money lenders don’t like to lend more than 65% of the fair market value of a real estate property, so the better the deal, the more options you’ll have.

Private Lenders can be an even better alternative to hard money lenders because you can often arrange better terms since you are dealing with someone privately. A private lender can be anyone, even friends or family. Everybody wins because you are offering them a much better rate of return than they will get in their savings or mutual funds and it’s secured by real estate.

“Subject to” Financing comes from the clause “subject to existing financing”. With this strategy you are leaving the existing financing in place and just taking over the payments on the sellers existing mortgage. The loan papers do not contain your name at all. The note will stay in the name of the seller. There are other ways to do similar seller financing as well. If you have poor credit and want to begin investing quickly, this is an excellent strategy.

Wholesaling or Flippingare specific real estate investing strategies that are essentially creative solutions to eliminate the need for obtaining any funds at all. This is where you tie up a property at a discount (using an agreement) and then flip the property to another buyer or real estate investor for a quick profit. This is virtually risk free with no need for excessive cash, credit or financing and no need to do repairs or work yourself. This is why when it comes to making quick cash in real estate, this method of flipping houses is one the best routes to take not only for avoiding many of the financing headaches, it allows you to make cash more quickly for today’s real estate market. You need to look at as many options as you can then compare each one of the terms. This way you’ll know what will work best for your individual circumstances.

Technorati Tags: flipping houses, investing in real estate, make money in real estate, making money in real estate, real estate investting

Real Estate Investment Strategies

There are many different investment strategies so it is best to learn some of them before you being investing in real estate. The most common strategy that real estate investors use is the one that can lead to the most problems. That real estate investing strategy consists of buying properties which the investor believes will soon increase in value due to market-wide appreciation. Although this strategy can be used successfully, it is based on pure speculation and can fail. There are three investment strategies that can be used and are based on facts instead of speculation. The first is known as the bargain purchase. Many investors will often buy a property at twenty percent below market value by using the bargain purchase method. People use this to make up to twenty percent profit investing in real estate using this strategy when buying foreclosures.

The second strategy is known as the increase value strategy. The building would be sold at the current market value using this strategy. There must be some improvements that could be done within a six month time period that would increase the value of the building by twenty percent for this strategy to be successful. Finally, many real estate investors use the double digit cap rate. The double digit cap rate strategy is used for buildings that have a capitalization rate of ten percent or more. You get the capitalization rate by taking the net operating income for the property and dividing it by the purchase price. You can profit big with these things if the market is depressed or you are looking into small market niches. Whatever type of real estate investing strategy you choose it is wise to have a real estate agent on your side who can help you make the right decisions and tell you of any new listings, including foreclosures that you may be interested in.

Homezonedirect.net is a organization dedicated to providing you with the most up to date and relevant information available to help you make the wisest choices regarding your home and financial future. Our team of committed experts scour the Internet searching for the right information so you can begin to understand these financially troubling times we are in.

We are not here to sell you anything, we only want to provide you with as much information as you need to help you make the best decision for your family.

Technorati Tags: foreclosures, increase value strategy, Investing, investing in real estate, make money in real estate, real estate investing, real estate investment strategies, selling a house, selling your home

The number of British tourists visiting Lanzarote continues to rise. Despite collapsing airlines, a weak pound and falling disposable incomes.  As new figures just released by the Spanish airport authority AENA reveal a 7.9% year on year growth of holidaymakers from the UK visiting the Island of Fire during August.

In total 571,851 British tourists have visited Lanzarote during the first eight months of 2008, a trend which if extended across the rest of the year will represent the islands best performance in the UK market place since 2003.

Lanzarote is now also firmly established as the most popular destination in the whole of Spain with Irish holiday makers.  With over 200,000 tourists from Eire expected to visit the island during the course of this year.

As a result on-going demand for good quality holiday rental property in Lanzarote is increasing – not least as owners benefit from a year round rental calendar too thanks Lanzarote´s clement climate – as temperatures rarely fall below 20C even in the depths of winter.

As elsewhere in Europe property prices on Lanzarote have started to fall in recent months – enabling investors to get a foot on the property ladder for as little as €65,000 (around £52,000).

Investing in Lanzarote

So where are the hottest spots on the island for overseas investors?

Tourism on Lanzarote took off in Puerto del Carmen – a former fishing village called La Tiñosa which today is Lanzarote´s most popular resort.  Particularly amongst British and Irish visitors – who are drawn by the excellent beaches and wide selection of bars and restaurants.

Apartment complexes predominate in Puerto del Carmen – with only two main hotels servicing the resort.  In recent years many of these complexes have undergone extensive renovation – and the island tourist authorities are now pressing ahead with plans to pedestrianise the main Avenida de Las Playas in the heart of the resort.  In order to further enhance Puerto del Carmen´s appeal as a holiday destination.  A long awaited new golf course will also be opening just outside the resort by the end of this year too.

The Bitacora Apartments in the heart of Puerto del Carmen are a good example of a revitalised complex.  Featuring 72 one and two bed apartments in attractive and well maintained grounds with good communal facilities and pool – all just five minutes walk from the resorts main beach.

The apartments have been refurbished to a high standard – featuring brand new kitchens, appliances, furnishings and additional extras such as broadband connections and satellite TV.  Prices at the Bitacora start start from €99,000 for a one bed apartment.

Just ten minutes away from Puerto del Carmen lies the emerging resort of Matagorda, which is especially popular with Irish tourists.  Dut to its tranquil atmosphere, good quality beaches and minimal transfer time from the islands airport.

The recently refurbished Matagorda Bay complex is generating plenty of interest amongst overseas investors – as it is the only fully renovated sea view complex offering apartments for sale in the whole of the resort.

As a result around 70% of the units here have already been snapped up by buyers impressed with the quality of the communal facilities and the high spec of the renovation. Which has been handled by one of the island’s leading developers.

Key features include ergonomically designed, stylish modern interiors, flat screen TV´s and wireless internet connection. Top quality fixtures, fittings and furnishings are also included in the prices – which start from €99,950 for a studio apartment and €119,950 for a one bedroom apartment.

Technorati Tags: Investing in Lanzarote, Matagorda Bay, Puerto del Carmen, Tourists Visiting Lanzarote

The opportunity to optimize measures for wealth accumulation and enhancement may be jeopardized if retirees and would-be retirees do not look beyond geographical borders to include a foreign property into their self-directed IRA real estate holdings. They fail to see how a self-directed IRA real estate account can offer a wider-based global area for foreign real estate. There are pockets and clusters of geographical entities worldwide Europe (both eastern and western), Asia, some Arab countries (Dubai is a shining example), and the Asia Pacific regions where real estate property investing is going at a feverish pace.

Woe to the self-directed IRA real estate adviser or trustee who does not have the foresight to investigate real estate overseas to further the interests and well-being of their clients. A world of difference can set an IRA adviser apart from others who are too parochial in their thinking and carry around a small town mentality. Since the self-directed IRA real estate account does not prohibit the acquisition of foreign-based real estate, why deprive clients of the possibility of building their assets with lucrative options outside North America? This is what the self-directed component means in the self-directed IRA real estate account. Clients have carte blanche to look into other investment possibilities. Millions of Europeans have, for a long time, looked outside their own borders, scooping up ski resorts in places like Spain and Portugal, Bulgaria, and Costa Rica. These countries have become so popular among foreign investors that properties have increased in value tremendously. Real estate developers and promoters are now on a scavengers hunt in less well-known countries so they can offer projects to interested investors.

Technorati Tags: Investing, ira, real estate, real estate portfolio

It is possible to become successful in real estate investing in a short time and, even when starting a business of real estate investing, you can find the time without crimping your current lifestyle!

Starting a business of real estate investing with a simple plan.

1. Groundwork of your simple plan is crucial when starting a business of real estate investing.

I know, it is easy to say - and the truth is, it is easy to do! Most people get stopped when starting a business of real estate investing because they simply FAIL to plan. That’s right, it isn’t because their plan didn’t work, it was because they did not implement even a very simple plan!

To be successful in real estate investing, first find someone else that is successful in real estate investing, watch them, interview them, find out everything you can about what they did when starting a business - and write up a simple plan of what they have done to be successful in their real estate investing - something that you can follow each day.

In order to have what they have, you need to do what they do, so find out what percentage of their day is spent on the telephone, for instance.

Find out how much of that time is spent on making calls, receiving calls and the type of calls they are (Customer Service, making deals, etc.)

That gives you a good idea of what your total time should look like, when you are starting a business of real estate investing of your own.

2. The next step in developing your simple plan as you are starting a business of real estate investing is to divide your total time (10 hours per week is a great start) just like your successful mentor does.

Even if they put in a hundred hours per week, they still divide their time, just like you will, once you begin working your simple plan.

The ’secret to success’ isn’t in the hours - it is how you spend them!

Follow the simple plan outlined here to make the most of your hours and get the most out of everything as you are starting a business of real estate investing with a plan of success.

If your mentor spends 1/10th of their time making outgoing phone calls to find new business, then you need to spend 1/10th of the time you dedicate to your real estate investing business doing the same thing, a pretty simple plan, huh?

3. Set your Goals.

A clear destination is something you always do when starting out on vacation, isn’t it?

Then have the same thing in mind when you are starting a business of real estate investing.

Every successful person says to have a goal in mind so you know where you are going, and our simple plan gives you the steps to get there!

A goal is crucial in anything, and certainly when starting a business of real estate investing.

Without a destination (a specific income amount, a personal item like a car or boat, or simply an amount set aside in savings), how will you know if you ever arrived?

4. Track your progress.

You have your goal in mind, and a simple plan to begin. It is time to get into your 10 hours per week program and ‘backtrack’ to create a clear and simple plan to follow.

Take your goal (a clear date of completion and ‘destination’), divide it out and chart the required progress each day, week, month and/or year to quickly know what is required to reach your destination.

Follow your progress each day to know quickly if you are sticking to your original goal destination, or if you are ahead or behind schedule.

As you are starting a business of real estate investing, you will likely come across some detours, that’s OK (and where many people get lost… Do not!)

When driving, if you find a road that is blocked or a path that seems impassible, you simply find another way around, right?

The same is true when starting a business of real estate investing, just find another way.

Include in your simple plan a few hours here/there just for such ‘emergencies’.

If you have no emergencies, do something else that will get you closer to your destination, or just relax and enjoy where you are.

5. Spend time ON your business, not only IN your business.

In your simple plan for starting a business of real estate investing, you must set aside part of your working time to plan, set goals, promote and advertise your business, not simply work along in your business, doing the things you do.

In today’s world, when starting a business of real estate investing, you will most likely have a website. You need to spend a certain portion of your time (even 10 hours per week total) on getting more visitors to that website. The more people that see what you have to offer, the quicker your business will grow.

You could spend time driving from house to house, telling everyone about your website (not a very simple plan for your time!), or you can maximize your time by writing articles about your business and post them online where many people will see them (many online services promote articles).

This is often overlooked by people as they are starting a business of real estate investing, and one of the reasons they fail to make their simple plan.

As your business grows over time, you will do less of this (but never stop!) and begin to work your simple plan toward the ‘IN your business’ phase.

6. Give excellent Customer Service.

It never pays to make your customers angry. An upset customer will kill more business than you can imagine. Find a way to work with them, or simply give them their money back.

Losing customers is something you cannot afford when you are starting a business of real estate investing!

Many people simply don’t make the time to provide quality service to their customers. Do not let that happen to you!

A little up front planning and goal setting, then follow-through each week, then simply repeat the process.

You will change your business from flat to cash in a short amount of time!

Follow the steps above and it can be done in as much or as little time as you have.

When starting a business of real estate investing, if you follow the simple plan I have outlined here, you are already a success!

Technorati Tags: real estate, real estate investing, real estate investments

Some benefits sellers have when they decide to use Property tax lien auctions to sell their houses is the sale is quick and you don’t have to wait for ‘pending financing’ rules set by the buyer. The money from the purchaser will be present at auction time
A homeowner who is auctioning off a house usually doesn’t have time to wait for a buyer to get financing or to auction the house off again if the buyer’s financing doesn’t come through. 

Property tax lien auctions offer properties for sale “as is”. Bidders know that they need to do some repairs and other things to take care of. It is not required for the buyer to be caring about spending a big amount of money on paint, new carpet or appliances before the auction of their house. The buyer will be responsible for replacing the water heater if it is about to malfunction. The buyers popularly know this when shopping Property tax lien auctions and they usually have a space where they are able to inspect the property before bidding at the auction. It isn’t the seller’s fault if the buyer cannot bring a professional home inspector along and something doesn’t work later. 

One of the benefits of property tax lien auctions for investors is not having to worry about potential purchasers wanting to view the home at their convenience. Sellers have a life of their own, as well as families and even pets. The risk of getting a call at any time of day or night from an agent who would like to show the home is more than likely the hardest part about putting a house on the traditional market. Can they turn you down? They might, but they probably won’t without at least seeing the home. If an agent can not be shown the home, they won’t come back to call again. You have to be prepared at all times to show your home. The owner needs to keep their pets out of the house during showings, and keep it clean always. Sometimes it can be hard, especially when the call comes when you’re having dinner or when you have a visitor.

Selling houses at Property Lien Auctions are an advantage to homeowners. Property tax lien auctions make it easy for homeowners to sell their home quickly for any number of reasons. While the seller may get a lower price for the property than if they had sold it in the traditional way, tax lien auctions are worth the loss of profit for some sellers.

Get more info about Pre Foreclosure Property such as purchasing tax liens where you’ll find all you need to know about the Buy Tax Lien Laws and much more.

Technorati Tags: buy liens, buy tax liens, delinquent taxes, foreclosures, pre foreclosures

Located close to the city’s major shopping areas and just 200m from the Poitiers TGV station, the CITEA Residence has the makings of a solid investment opportunity. Studio apartments start at 89,000 euros. One-bed apartments start at 150,000 euros. Interiors are contemporary with fully equipped kitchens and adjustable air conditioning. The complex also boasts an indoor swimming pool.

As part of the French leaseback scheme VAT on the investment is rebated to the purchaser. The CITEA Residence is scheduled for completion in April 2010.

For further information on the Poitou-Charentes Leaseback properties visit www.propertymagnate.com

Technorati Tags: french leaseback, leaseback, Pierre & Vacances, Poitiers, Poitou Charentes