Real estate investment decisions are made on the investor criteria. Unless the rental property serves some other purpose, perhaps to close a 1031 tax exchange in a hurry, capitalization rate, internal rate of return, cash on cash return, or some other factor or combination of all factors, tell the real estate investor whether to make the investment or walk away. Real estate investing, after all, is all about the numbers.

There is, however, the matter of any "upside rent potential" associated with the income-producing property that prudent real estate investors should consider before making investment decisions. This is not always the case, though. Remarkably, there are times real estate investors pass on good investment property opportunities because they fail to consider the potential of a property's upside in rental income adequately.

An income property with "upside rent potential" simply implies that its rents are lower then what the market will bear and the "potential" to collect higher rents and generate more income are a real possibility. To the real estate investor analyzing the income property it means, "hold on, and don't make any decision to pass on the property until you've reevaluated the cash flow based on several other rent scenarios".

Believe it or not, sellers (or their agents) sometimes, whether by neglect or faulty research, do fail to consider the property's true income potential when setting a price. If so, then any APOD, Proforma, Marketing Package, or other income and expense statement presented you, at the very least, distorts the income and every key rate of return guiding your investment decision. If unchallenged, and you rely on those numbers, and deem them unfavorable, you could pass up a good investment opportunity. It happens.

Always conduct your own rent survey. Know what comparable rental properties in the area are getting for rents and then make your own evaluation of what the market will bear. You might uncover something the seller overlooked, or perhaps discover that the seller set the price for the property with no consideration for upside rent potential at all.

Then run your own numbers. Using the rents you regard more in line with the market, recalculate the investment property's cash flow, cap rate, cash on cash, internal rate of return and other financial measures. Who knows, you could discover a nugget of a deal you might otherwise have missed. It happens.

About the Author

James R Kobzeff is the developer of ProAPOD Real Estate Investment Software - Rental property cash flow, rate of return, and profitability analysis. Create a wide-range of reports and investment presentations at your fingertips in minutes. For real estate agents and investors.

Real Estate Investing Software - So those just starting to invest in real estate can determine whether the property makes money before they invest. Perfect for new real estate investors.

Mortgage and Financial Calculator - Compute hundreds of mortgage, time value, and cash flow computations in seconds. Printable schedules and tables. It's like having a hand-held financial calculator, but fast and easy.

Everyone wanted to get into the game. Real estate was the darling topic at cocktail parties and from your hair dresser. People were quitting their jobs and running after real estate riches. This frenzy was fueled by lenders who were giving loans to anyone who can fog a mirror a loan - with no money invested. Loan requirements were being relaxed to Prozac-like standards. Teaser low rate and negative amortization loans were everywhere. Appraisers appraised at way over market values. Why buy just one property when you can get five and make even more money? After all, if my manicurist can do this, why can't I?

What could possibly go wrong?

Well the bloom is off the rose.

After 20 years in this business, I can tell you this is no surprise. I have been telling people this since 2005. Everyone was saying that low interest rates were fueling the market and that when interest rates rise that will be the end. Well interest rates have actually gone down and still real estate in collapsing. Millions of people have adjustable rate loans that are adjusting. Banks have swung the pendulum in the other direction and are over cautious about who can get loans and how much they have to put down. No one wants to buy the junk sub-prime loans that were created so they could be sold to hedge funds, other central banks and unsuspecting pension funds.

The real estate market is flooded with newbees who are really speculators - not investors. These are people who are ruining it for the rest of us. They don't bother to educate themselves; they don't go to real estate clubs to network; they don't buy tape sets; they don't go to seminars. They depend on the advice of people who have something to gain from their actions. These promoters do not care whether they are giving good advice or not - as long as the promoter is making money. Everyone has something to pitch - new construction bought before the shovel is in the ground - ideas that are just ideas.

These speculators don't bother to find the right places to learn about what is happening in the real estate market RIGHT NOW! They were hypnotized by all the hype that was going on about how the real estate market will go up forever and that this time is different - there won't be a downtown. Sound familiar? Just like the stock market hype in the year 2000. Everyone swore that things had changed and that history no longer repeated itself. It seems that all these ex-stock investors were pouring their money into real estate. There just does not seem to be any other place to put money. However, even the stock market is scary and lately, so is real estate.

These people were under the delusion that what goes up will continue to go up forever so all they have to do is buy anything at full market price, take out a no money adjustable rate loan and rent it and hold onto it for a few years and make big bucks. Well some of the people who ran to Vegas and tried to do that already found out the hard way that there were thousands of others doing the same thing and they could not rent the house. Even if they could, renters don't always pay and sometimes they destroy things. Think that can't happen elsewhere?

Now the difference between these people and true investors could not be more dramatic. These people are learning the hard way that what goes up will eventually come down.

We investors were taught to buy below market for appreciation and cash flow through improvements to the property. I was always taught that you make money the day you bought the property. If you have this philosophy, you can never get hurt. No matter what happens to interest rates or prices, I bought right. If it appreciates, fine - that's only the gravy. The meat and potatoes were the price I paid. I don't care what happens to interest rates. I only keep properties with fixed rate loans under 6%.

It is more important now than ever to become educated. All the people I trained with say the same thing; buy below market and make your own appreciation, buy for the long haul and let your tenants pay off your loans, or buy for cash flow. DON'T BUY FOR APPRECIATION!!

The scariest thing about all this is that usually real estate markets are regional as well as cyclical. After all, economic conditions are different in different parts of the country, so when one market is up, the other one is down. Well, it looks like the markets across the county had the same bad thing happen to them at the same time - like rising interest rates and teaser rates adjusting. Things could get ugly for the whole national economy. Not a pretty thought!

Well, that's when the fun begins for true investors like me and I hope, you. It is imperative to get educated so you know the difference between investing and speculating or the school of hard knocks will educate you.

Phyllis Rockower, REIC of LA founder

Real Estate investing can be fun and rewarding. At the same time, it can be frustrating and time consuming without much reward if you don't know which areas to avoid and which mistakes to avoid.

The following five (5) reasons cause 50% of investors to fail in their first year.

1. Lack of Target Market
2. Lack of Focus
3. Taking uncalculated risks
4. No lead generation systems
5. NO systems to make offers
6. No system for funding deals if you do get them

1. Lack of Target Market: One of the biggest mistakes I see people make is starting out by running generic untargeted ads with no clue why they're doing it. Who do you want to target? This fundamental begins, first, with some studying of the market -- or you can check with your local realtors to see if it's a buyer's market or a seller's market.

Target marketing is not about you, your service, your knowledge or your lack of knowledge in the market...it has to do with who your TARGET MARKET IS. Well...Who is your target market? Where are they and how do you reach them?

As of the time of this writing I have two favorites.

The first is free & clear property. By this I mean no mortgage (or very small mortgage relative to value) on the property. Many of these sellers do not have an immediate need for cash or they would have already pulled it out of the property. If there's a lot of equity in the property then that gives you many different ways to exit (profit) on the deal.

If there's no equity, you're stuck trying to do a discount with the bank (called a "short sale") and/or negotiate with the seller and if you do purchase it you're waiting over time and praying for the market to push things up to capture appreciation. This is no fun. Why waste time on these types of deals. Now, there are cases where sellers are behind on their payments and the house is over leveraged (owe more than it's worth) and in that case you can refer to a real estate agent that is familiar with selling homes via the short sale process. If you are an agent, there is a hidden gold mine here for you.

Other advantages of this target market of free & clear include:

" Lots of free & clear property owners are older and prefer to take monthly payments on the property versus cashing out.
" Many owners of free & clear properties do not want to face the tax consequences of selling outright and, therefore, prefer payments.
" Many times you'll find owners of these properties have several others in their portfolio.

These advantages are all good news for you. I recently received a call from a gentleman with three properties. Think about that - a target market that produces three or more leads from one letter.

I sent a yellow hand written note to a listing that had expired in my local market place. Come to find out, the owner owns many more properties. I'm going to see these properties next week. You can ask me what happened next time you see me, but I would say that was money well spent. A piece of paper, my daughter writing the letters (or you can outsource when bulk mailing) and a .41 cent stamp. That one deal can be worth several hundred thousand in equity over the next several years.

My second favorite is expired listings. Expired listings are always great because they have been on the market with a realtor being marketed the conventional way. By that I mean - the property was stuck on MLS (multiple listing service), ads were run, maybe there were some open houses (which don't work) and then they left it, hoping it would sell. Well, if it didn't sell, usually the owners do not want to speak to another agent. In comes you - the transaction engineer - to solve their problem.

I remember Earl Nightingale saying that our compensation will be directly proportionate to the demand for our products or services. One of my mentors talks about us getting paid in direct proportion to the size of the problems we can solve for the home owners.

If a listing expires, even in a sellers market, there's an opportunity for you. These expired listings become quite plentiful in a down real estate market. As of the time of this writing which is January of 2008, the market is still a buyer's market and there are hundreds of expired listings in my market place - and yours.

I've given you two targets that I like right now, but here are some others just to get you thinking:

" Divorce
" Probate
" Bankruptcy
" Geographic Farm Area
" Ugly Houses you spot driving around or from referrals
" Frustrated landlords
" Attorneys
" People who cannot afford payments
" People who have lost their jobs
" Death of a loved one
" Failing health
" Failing business
" Job Transfer
" Retiring owners
" In foreclosure
" Just before foreclosure
" Absentee owners (another one of my favorites)

2. Lack of Focus: One of the first thing I ask clients is what they spend their time on. Your time and focus must revolve around cash flow at the beginning or you'll have no business. Some questions I like to ask and that I urge you to consider:

1. What is my break even point with my family's budget? How much bare minimum, in other words, do I need to pay all my bills and break even?
2. What is my break even with my new investment business?
3. Is what I am doing each hour of the day moving me closer to my goals (I like that to be on an index card in front of you or on your desk where you can be reminded daily to stay focused)?
4. What should I spend my time on to make certain my family and business goals are met?
5. Who am I surrounded by and listening to? I call it the dish rag theory. Many speakers and trainers will tout their system and try to throw a dish rag to slip you up - stay focused. 6. Do I have systems in place to weed out the time wasters?

3. Taking uncalculated risks: Real estate investing can be very lucrative if you avoid taking uncalculated risks. Some of them include: Not getting comparables or totally forgetting to verify comparables, writing personal checks instead of being creative (a transaction engineer), forgetting the basics, signing personally for debt instead of being creative with your sellers and failing to dig into the details of loans you take "subject to".

4. No lead generation systems: It never ceases to absolutely amaze me that realtors, real estate investors and many other business owners don't even include lead generation in their thought process and/or business plan. I remember when I was a realtor (prior to learning how to capture all sellers via my investment division) learning methods from my coach Mike Ferry. Mike used to tell stories about how he had to do calls, write letters, run ads, etc - generate non-stop leads. It used to motivate me to go do that in my business. I recommend to any business owner to concentrate on LEAD GENERATION.

My son Nicholas started his own speaking business in 2007. His mornings now are filled with making calls, visiting schools and nonprofit organizations, sending out his audio interview CD, etc. - generating leads. This fundamental is critical to your business. Now, an important distinction that I want to make here is the difference between automated direct mail and other automated systems versus cold call prospecting and other phone prospecting. What is a better use of your time - finding a needle in a haystack or speaking to needles that find you?

I'll show you how to speak to only the needles shortly...But first, what do all business owners hate? They hate being advertising victims. By that I mean - receiving mail from people who have wasted money on advertising, not knowing exactly what to do, but feeling that they HAVE to advertise just for the sake of it. This was me in my building business in the early 90's and in my realtor business in the mid 90's until I met Dan Kennedy. He taught me what he calls Magnetic Marketing a dynamic system for attracting your most desired leads without you chasing them. Business owners also hate not knowing where their next customer is coming from - uncertainty.

Before we go further, let's be certain that we understand what business you're in. You're not in the real estate business...you're not in the investment business; no, you're in the marketing business.

You're going to generate leads by delivering the right MESSAGE to the right PEOPLE at the right TIME. The second you fully understand that, you'll start earning big profits.

Next you can mail a simple hand written yellow note to them. Yes, a hand written, personalized note on a yellow piece of paper. When you do this you'll want to use a hand addressed envelope that is the size of a card or invitation with a regular stamp - not from online stamp print outs or bulk mail. This gets your mail opened.

Even if you have an incredible message in your envelope, if the note never gets opened because the envelope contains a typed label on the outside and a computer generated stamp, it might as well have never been sent. It's going to end up in the basket. Don't you sift through your mail? This yellow letter in an invitation style envelope that is hand addressed will increase your chances of it getting opened.

You can look at an exact sample that we get done through a service. Here is a format you can use on your letter - remember, hand written:

"Hi (seller's name),

My name is (your name) and my wife/husband's name is (spouse name).

We'd like to buy your property at (property address).

Please call us at (contact number).

Thanks, (Your name)"

You simply mail this yellow letter to your targeted list and get the phone calls coming in. When you put a number on your yellow letter, be sure to make it a local number. It doesn't work to say you are buying property and it looks real personal - but, then you put an 800 number or out of state number on it.

I know what you're thinking now - do I have to write out hundreds or thousands of letters by hand? Of course not. You can write some by hand (expired listings that come up weekly), you can copy your letters using yellow lined paper, you can copy your letters at a local staples, etc.. When making copies, you use black ink and leave the name and property address blank and just fill it in.

Alternatively, you can outsource this task which is what I prefer. You can outsource it to a local over-55 community, a hospital or someone looking for some simple part-time work. We use a service for this which handles the writing, copying- everthing - and ships them to us to mail. This is your first step in automating your business so you can have a life.

You can also run an ad in your local (small) paper. I have found that the larger papers are too expensive and not cost effective. I usually pick a small town or city paper and keep a simple line or block ad running for the entire year. One of my local papers in R.I. charges $85 per month. That ad is usually good for at least one deal per year so, using the average profit of $27,000 or better per deal, $27,000 from a $1020 investment is a good deal in my book!

You now have your ad running and yellow letters hitting your target market. Now, don't only send two letters out and then email me asking why you didn't get a deal or two. It will cost you approximately $750 - $2200 in marketing per one deal. Let's say it costs you $2500, $2500 to get $27,000 or more = STILL a good deal in my book!

The reason the costs vary is because it depends upon a few variables - buyers' market or sellers' market, your target market, your ability to follow exact directions when doing your yellow letter and not messing around with it, and whether or not you decide to bite write or make your own yellow letter copies to save money.

5. No systems to make offers: One of the biggest mistakes I see that can literally shut you down is your inability or lack of systems to construct and present offers. Now, the main reasons for this can be broken down to three categories: (1) Lack of knowledge to prescreen out sellers that are out to see if they can get retail or higher versus sellers that need to sell, (2) Fear of rejection, (3) Ability and confidence to analyze a deal and get it funded if accepted.

6. No system for funding deals: a simple goal to remember is that you want to buy as much equity up front in a deal while using minimal to no cash of your own. Things that can impact you obtaining funds include, but are not limited to:

" The price you purchase at relative to the loan you need (loan to value ratio)
" Who your lender is and what their policies are.
" How you purchase the property: all cash, subject to, owner financing, option only.
" Your exit strategy for the property: retail, wholesale, lease-option.

Save your personal fund for those months that you'll need to bridge the gap between closings.

Chris Prefontaine is a Internationally recognized real estate coach & trainer. Whether you're a seasoned investor, or new to the industry be sure to check all state guidelines and laws before you invest. For more information about becoming an expert investor or having your own personal coach, visit http://www.R-E-A-N.com Chris will give you a 30 minute personal coaching call.

You can visit http://www.hugewhy.com and sign up for a FREE weekly e-zine. It's the perfect way to jump-start your week! Sign up today and start receiving the 7-Day Focus on Success, dedicated to success!

If you are an International Investor and want to create Cash Flow that will last for Generations and enhance your Immigration status in the US now is the time to by US investment properties.

Why you ask?

Well first of all the US is dollar is weak against International monetary equivalents. Meaning you can buy more property with less investment. In Fact for a European that wanted to by $1,000,000 dollars worth of investment properties in the US it would only cost them about $600,000. That is remarkable in that it creates a situation where you can develop significant cash flow with properties that will last for generations. You can also enhance your immigration status.

Recent Changes in immigration law have put in place program that you can get your green card if you purchase $1,000,000 in US Real Estate. Again with the current exchange rates and interest rates this is extremely affordable. But in addition to that you can create little cash flow investment properties that will pay you money month after month for generations.

With the right strategy you can create a source of income that is passive and pays you month after month and receive a US green card as a bonus.

Just imagine if you invested in a turn key rental solution that you purchase five use properties for $200,000 US dollars. With current Exchange rates this you mortgage will be less the $100,000 on each property. Then you rent these properties with positive cash flow anywhere from $500 to $1000 each.

You have a monthly cash flow machine!

and you can also visit Real Estate Investing for Life to sign up now for the FREE property investment opportunities. You will also receive cash flow Investment property opportunities - Donald Griffith Speaker / Author / Real Investing Coach - Contact Donald Griffith at 800-276-8191

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

• Detached single family homes
• Attached single family homes
• Multi-Unit properties
• Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

• Allows owners of rental properties to be 'shielded' from dealing with tenant and property issues directly.
• Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.
• May provide a less stressful experience
• Offers the ability to purchase real estate investments not immediately local to the investor.
• Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

• Advertise properties available
• Recieve applications for tenancy
• Perform Credit and Background checks for applicants
• Recommend rental pricing
• Pay maintenance and/or repair bills for the owner
• Send monthly statements and rental income (Less any outstanding bills. Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to 'flip' properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for 'flipping'.

The real estate market fluctuates greatly. Yesterdays great 'flipping' market may be (recent market trends as an example) tomorrows 'Hold on to it' market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let's discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

• Financial considerations - How much can you afford?
• Availability of properties - What types of properties are available?
• Location - You've heard this one a thousand times - Location...Location...Location...
• Income potential - Does the property in question match your real estate investment strategy?

Detached and attached single family homes Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a "hands off" approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

The continuing purpose of this article series is to assist new investors in making sound real estate investment decisions. Making sound real estate investment decisions initially may lead to the more lucrative opportunities of Commercial real estate investing

As a Keller Williams Success Realty real estate agent and REALTOR® working in Panama City Florida, my mission is to provide the public with quality Panama City Florida Real Estate services!

I believe the future of Real Estate sales will be maintained and driven by the online power of the consumer. I provide quality service for Panama City Real Estate investors, from Commericial income properties to 1031 Tax Exchanges.

If your thinking about getting into real estate wholesaling one of the critical factors is finding out the type of properties that your buyers are looking for. Many rookie real estate investors forget to ask the right questions to their buyers. Here is a list of the very important questions that you must get answers to from each of your buyers.

What area are you looking for homes in? Get as much detail as possible about the location where the buyer is looking to purchase a home. Keep in mind that many cities have transitional areas, try to find out exact locations or school systems that your buyers are looking to purchase in.

What price range are they looking for? This kind of speaks for itself, get the exact price range that your buyers are looking for. Make sure to pay attention to the cost of the rehab plus the cost of the home if your buyer has a limited amount of capital to spend work with.

What type of rehab are you looking for? Are your buyers looking for a complete remodel with structural, electrical and plumbing repairs, or are they looking for a home that just needs carpet and paint.

How soon are you looking to buy a home? Be sure to find out how soon your buyers are looking to purchase a home. The last thing that you want, is to be looking for homes right now and your buyers don't want to buy for another 6 months.

Getting the answers to each of these questions will be very crucial to your success in real estate wholesaling.

Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit.

Is real estate wholesaling illegal? I have heard this question asked dozens of time by new real estate investors from across the United States and my answer is always absolutely not! Many people mistakenly put wholesaling in the same category with the property flipping scams that are now heavily publicized by the media. Illegal property flipping and real estate wholesaling have nothing in common.

Illegal property flipping is a result of buyers paying over inflated amounts for a piece of real estate. Then they either getting a large amount of cash back at closing or they are working hand in hand with the sellers who then pays them off in exchange for buying the piece of property at an over inflated price. The buyer is essentially sacrificing his or her credit in exchange for cash. This over inflation is a result of the market value of a home being far less than what a crooked appraiser can pull sold listings for.

Real estate wholesaling on the other hand is a completely legal activity. Most wholesaling transaction involve either selling a contract to another investor, or buying the home and immediately selling it to another investor at a discount. Unlike illegal property flipping with real estate wholesaling nobody is getting hurt. Wholesaling presents the perfect win-win scenario for all parties that are involved with the transaction. The buyer is happy because they are getting a great deal on a piece of real estate and the wholesaler is happy because they are making a $5,000-$10,000 fee for their services.

Eric Medemar is a real estate consultant from Grand Rapids, MI. Be sure to check out his FREE real estate investing guide as well as his Highly acclaimed real estate investing course where he will show you his easy to understand methods for investing in real estate without cash or credit.

Article Source: http://EzineArticles.com/?expert=Eric_Medemar

The recent downturn in real estate market affecting Miami has created a difficult situation for many homeowners and investors. The rapid appreciation of the years 2003-2006 created a peak activity that could not be maintained for long, and now prices are expected to remain stagnant after the decrease in property values began in 2007.

The price decline however is not evenly split across Miami-Dade; some areas have fared better than others. One of the hardest hit areas is upscale Bal Harbour, where the average property price declined by 20%-23%, but keep in mind the average price for a 3 bedroom single family home is $1.9 million, and a 2 bedroom condo is about $700,000 average.

For modest Hialeah on the other hand, it was not as bad: the average property price declined 4%. Sunny Isles, with its condo towers clustered by the beach, took a -5% hit. Miami Beach real estate values experienced a 9% decline, which is bad enough, but much better than Key Biscayne (-18%) and Surfside (-12%).

Miami real estate suffered a 5% decline in property values in 2007. At the moment, one of the biggest concerns is the condo market with the amount of condos that will be completed in 2008. There's been a lot of speculative activity in the condo market in the last few years, and many are predicting further decline in prices through 2008.

At the moment the average price of a 2 bedroom condo in the Downtown Miami area is at $520,000, and despite all predictions, prices have not plummeted, although caution is advised, since many investors will be trying to unload many condos soon. On the other hand, foreign investors are coming in, taking advantage of the weak dollar, an alleviating factor for this market.

The local economy and the job market are other factors to take in consideration. The slowdown in construction, increasing oil prices, trouble in the financial markets and the national economy, explain the slower pace of employment growth in Miami-Dade in 2007.

Even at its lowest point, however, employment growth is expected to grow by more than 7,000 jobs. City officials believe Miami's economy is not in bad shape, new jobs are being created in tourism. Unemployment rate in Miami is lower than the rest of Florida and the country, and a local economy diversifying from tourism to health care, trade and banking, will have a positive impact in Miami real estate.

For residential rentals and Miami real estate in general, contact the local expert in South Florida, Miami realtor Orlando Garcia with Ocean View International Realty, visit SellHousesMiami.com for free MLS searches, featured homes for sale, mortgage calculators and tips and advice for buyers and sellers. Give us a call toll free at 800-516-2144

Article Source: http://EzineArticles.com/?expert=Orlando_A_Garcia

Properties in foreclosure present excellent opportunities to buy properties for much less than their market value. What many property investors don't know is that there are actually three (3) main opportunities to profit from foreclosed properties, based on the stage of the foreclosure process.

The three stages of foreclosure are based on when the foreclosed home or property is for sale. They are: pre-foreclosure, auction or trustee sale, and repossessed or real estate owned (REO).

1. Pre-Foreclosure

A property is in pre-foreclosure when the property owner has failed to meet their mortgage repayments and the bank (or other lender) sends them formal notification that it will repossess the property if they don't repay the outstanding debt by a certain date.

Since banks make their money by charging interest on the loans they provide, they generally view repossession as a last resort. If they believe that the home owner is likely to repay the owed amounts, they may even renegotiate the terms of the loan. However, with more and more people facing "reset" interest rates they can't afford and consequently defaulting on their repayments, banks are unlikely to be particularly accommodating.

Of course, if you can spot a property in pre-foreclosure, then, as an investor, you have the chance to step in and offer to help the home owner by purchasing their home. This will actually stop the foreclosure process and is a great opportunity for you, as you can buy the property without much risk, possibly no liability, and perhaps even without the need for a down payment or loan. You just need to be aware of the mortgage(s), liens and any judgments that attach to the property when you buy it.

The other great advantage of buying a pre-foreclosed home is that if you identify one early enough, you may not have as much competition for the deal as in, for example, the next stage of the foreclosure process...

And the next stage is... when the property goes up for auction.

2. Public Auction / Trustee Sale

Basically, unless the foreclosed home has been sold during pre-foreclosure, it will be sold to the highest bidder at a public auction (or trustee sale). The bank wants to get the property off its books and is generally keen to sell the home and recover its money. So, again, if you're familiar with market values, this is a chance to buy a home at a deep discount to its market value. Just be aware that if you buy a property at a public auction you'll be getting it at whatever condition it's in.

3. Real Estate Owned

If there are no bids on a foreclosed home at auction, the bank is forced to buy the property. This is known as the real estate owned (REO) or repossession ("repo") stage. Now, if you want to buy the home, you need to negotiate a deal with the bank, typically through a realtor. Although the bank is more likely to drive a harder bargain at this point, it will still be keen to get the property off its books. Therefore, you can still negotiate a good deal for yourself.

Rosanne Cellini has been successfully investing in real estate for several years. Her latest project has been delivering timely information about the foreclosure market to investors eager to learn more about this niche. To find out more please go to http://www.foreclosurespotlight.com

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As a beginning investor in real estate, it is imperative that you start with a solid strategy and understand the fundamentals. In this article, it is my intention to offer a few insights into real estate investing for beginners.

A few ground rules...

First let's agree that unlike stocks or bonds investing, real estate investing is not considered a 'Liquid' investment. What this means is, you can not sell real estate as quickly as you can sell stocks or bonds. Stocks or bonds can typically be traded very quickly through a stocks brokerage firm.

Real estate however, requires skill, patience, a marketable product and technique to liquidate. Even when using a professional, it may take awhile to sell investment property.

Realizing this at the beginning of your investment strategy will save you grief and money during the life of your investments. Knowing you can not simply 'Flip' (the process by which you can buy and sell real estate property very quickly) every real estate investment opportunity that comes along will assist you in making sound investment decisions.

Commercial Real Estate Investing

Due to the complexity of commercial real estate investing and the calculations used in strategies, this article will focus primarily on residential real estate investment strategies. At times, we may discuss items relating to commercial investments, but only when needed for clarification.

Investment Financing

Before you begin to look for a real estate investment , it is advisable to research how much you can afford. One way to accomplish this is to find and work with a qualified professional real estate agent who knows the area in which you are interested in purchasing. Agents often work with and can suggest a lending company or mortgage professional.

In addition you can work directly with a lender or mortgage professional.

Working with a real estate agent provides you with several benefits, not the least of which is they are typically well informed of news and growth markets in the area you are interested in investing.

Investment Strategy

Long term or Short term Investing: Let's describe long term investing as real estate purchases that are maintained for more than 5 years. Short term investments we will consider purchases maintained less than 5 years. The length of time for either of these strategies canvary greatly depending on market conditions and income/expense ratios from the investments and other factors.

Along with your investment strategy of long or short term investments, an advisable consideration is what do you expect from a Return On Investment (ROI) perspective. ROI can best be described as how much money you expect to make on your real estate purchase and in what time frame.

Summary

Intelligent investing is about balancing risk and reward.

Real estate investing requires education, and for new investors it is advisable to work with an experienced real estate professional. Let's not forget lots and lots of homework and research.

If you take your time, work with a knowledgable real estate professional, there is no reason why you would not be able to realize the financial gains others have realized in real estate investing.

End of Part 1

As a Keller Williams Success Realty real estate agent and REALTOR® working in Panama City Florida, my mission is to provide the public with quality Panama City Florida Real Estate services!

I believe the future of Real Estate sales will be maintained and driven by the online power of the consumer. I provide quality service for Panama City Real Estate investors, from Commericial income properties to 1031 Tax Exchanges.

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Investment in commercial real estate offers great rewards. It also offers great risks. The key to seizing the opportunities and minimizing the risks is knowledge and preparation.

All that's required beyond that is common sense and an objective eye about the risks and rewards. And that's the purpose of this article-to give you a quick guide to those rewards and risks so you can decide if the field is the right choice for you. Let's look at the rewards first.

1)The first reward of commercial real estate investment is that it's relatively easy to get into. In other words, you don't need a PhD to be successful. In fact, you don't need a degree at all. What you do need is a willingness to learn by yourself and from professionals in the field.

2)The second reward in the commercial business is it offers a great variety of investment opportunities. Properties can range from duplexes to multi-unit dwellings to shopping centers. This provides you with a wide range of possibilities-and profits!

3)The third opportunity lies in the ability to take advantage of leverage. Leverage is the use of other people's money (OPM) to finance your commercial real estate investments. Through the use of leverage, you can get into the market by investing little of your own capital.

4)The fourth is the opportunity to achieve good returns. Historically, U.S. investors have received an average 8-10% annual return on such investments. Plus, unlike the stock market, commercial real estate is not volatile and doesn't suffer the sometimes extreme ups and downs of securities investments.

5)The fifth -and one of the best!-is providing long-term appreciation. In other words, such investments tend to increase in value over time, putting money in your bank account on a consistent basis.

6)The sixth is that commercial real estate generate income and can do it over long periods of time (e.g., apartment buildings, office buildings, etc.).

7)The seventh reward is that they provide three real tax benefits--deductibility, depreciation, and deferability. You can deduct normal expenses, depreciate your investments, and defer taxes through the Tax-Deferred 1031 Exchange.

8)The eighth reward of investment is that it permits you to build wealth. With solid purchases, you grow equity over time, and, all the while, you receive income. Talk about a great retirement plan!

Now, let's look at the other side of the coin-risks.

Risks of Commercial Real Estate Investment

The first risk is risk itself. By that, I mean that risk in commercial investments can be much higher, especially with larger projects such as office buildings or shopping centers. That's why it's important to keep a cool head and objective eye on every deal you consider. Remember this central point-the numbers must always add up! Never, ever fall in love with a property!

The second risk is the lack of knowledge on your part. In this field, amateurs are goldfish swimming among sharks. My best advice is to start with small investments and learn as you go. The best way to learn is to find yourself a mentor who's willing to teach you the tricks of the trade. You may want to join a firm specializing in commercial real estate investments and work your way up.

The third disadvantage is that it requires capital. Since you'll be dealing with professionals, you'll definitely want to "put your money where your mouth is." You'll go nowhere without proof of capital.

A fourth risk of commercial real estate investment is that it ties up capital. You have to have the ability to carry the costs of such investments over a long period of time. In most cases, commercial real estate is simply not easy to sell quickly so you'd better have the reserves to meet ongoing expenses.

A fifth risk is a downturn in the economic cycle. If a recession occurs, jobs are lost and businesses suffer. In that case, your investments may produce little or no income for a while. As mentioned above, reserves of capital can help you weather such economic "storms."

So, there you have it-a quick guide to the rewards and risks of commercial real estate investment. Now it's up to you to weigh those risks and rewards and arrive at a decision-to invest or not to invest.

Good luck!

Jack Sternberg is a nationally recognized expert on real estate investment who's been in the business for more than 30 years. Sternberg's deals have totaled over $750 million and he's been to the closing table more than 1,500 times. For more, visit http://www.askjacksternberg.com

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Multifamily property is any rental income property that has more than one family unit. The smallest would be a duplex (two units) and then ranging up from there to larger rental complexes easily consisting of hundreds of apartments.

Multifamily properties, like all income-producing properties, has the advantage of being able to support debt from the income they produce. Understood in real estate investing circles as "using other people's money", this idea must always be kept in mind when buying this because the success or failure of the rental property depends on the income it generates to meet debt service and other obligations to keep the property. Rental income property virtually prospers or declines based upon "using other people's money".

We will look at three elements crucial to buying multifamily property that each surround this principal.

Obtain sound financing

The key to buying any income property is the ability to establish a sound financing package on the property; you want to obtain a loan that doesn't place excessive burdens on the property or yourself. Because lenders evaluate rental property based on income stream, and generally structure a loan based on the property's financial strength as well as the investor's, always bear in mind the role that "using other people's money" plays in financing the investment.

When applying for a loan on multifamily property, present lenders with clear and concise cash flow reports. When the property is represented fairly to the lender and the income and expenses are shown to be accurate, the investor is more apt to obtain a favorable financing package.

Conduct a rental market survey

Tenants and the rents they are willing to pay to occupy a unit in the apartment is the cornerstone of the investment. It is incumbent upon real estate investors, therefore, to understand local rental market trends for vacancies and rental rates when buying multifamily property.

Rental market trends are easy for investors to recognize. Just watch the newspaper or drive around the community noting all rental properties that have vacancies. If you see few "for rent" ads or signs, or surmise that rents are increasing, it probably signals a shortage of rental units, and a favorable opportunity for you; and vice versa.

When vacancy rates decrease, for instance, property owners can be more selective about the type of tenant they rent to and establish a positive direction for the complex; perhaps even increase rents. On the other hand, when tenants become scarce, owners might have to become less selective about tenants and perhaps lower the rents just to fill the units.

Consider economic conversion

In cases where the former property owners have let the property run down and rents had to be decreased to keep the units filled, an opportunity to upgrade the building and raise rents might be in order. If these rental properties are in a good area of town or in an area that is returning to a former higher quality, then the remodeling of a rundown apartment complex can be a profitable venture.

Just be careful to ascertain the cost for remodeling and what impact it will have on rental income. Pure "window dressing" for the sake of appearances only, unless it has a positive influence on occupancy levels or rents, is typically avoided by prudent real estate investors. Moreover, get a qualified contractor to give you a bid on remodeling. Otherwise, what you surmised as surface issues when you were buying the multifamily property could in fact be a costly can of worms.

The pros and cons of buying multifamily property

The most obvious advantage of buying any income-producing property is real estate investors can grow wealthy in the long run. Simply by holding onto the property and letting "other peoples money" payoff the debt, even if there is no immediate cash flow, is what drives people into real estate investing.

Moreover, multifamily properties serve a basic need, which limits the downside risk in that they provide shelters to those who cannot afford or who do not choose to buy real estate.

The downside to owning this mostly concerns the management problems associated in dealing with tenants; apartments can be management intensive. This is often the reason why investors who purchase income property hire the services of a professional property management company, to deal with the day-to-day issues of running the property. So you do have an option to (at the very least) minimize this disadvantage.

Buying multifamily property, not unlike any real estate investment property, provides investors the opportunity to build wealth. When done correctly, with a careful eye on elements such as discussed here, so can you. Here's to your success.

About the Author

James R Kobzeff is the developer of ProAPOD Real Estate Acquisition Software - Rental property cash flow, rate of return, and profitability analysis. Create a wide-range of reports for presentations at your fingertips in minutes. Easy to use and affordable.

Real Estate Investing Software - So those just starting to invest in real estate can determine whether the property makes money before they invest. The ideal solution for new real estate investors.

Mortgage and Financial Calculator - Compute hundreds of mortgage, time value, and cash flow computations in seconds! Printable schedules and tables. It's like having a hand-held financial calculator, but easier.

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I know from personal experience that gender issues, societal issues and wanting to do everything well - the perennial myth of the superwoman - can be barriers to women who want to have successful careers in real estate investing. You have a husband, a family, and many other responsibilities, so where are you going to get the time to devote to a career and how will you juggle it all?

Here are three tips you can follow to help you overcome these common barriers and start thriving today.

Get clarity and find clarity

Take a good, hard look at your life and prioritize your values. We all prioritize intuitively, but many of us don't actually take the time to put things down on paper. Consider the important things in your life - health, family, friends, business etc., and rate them in order of importance. Take a few moments, and do this right now.

Now take a close look at your list. Where are you? Many times, the women I know who do this exercise do not put themselves down on their own list. You HAVE to make yourself a priority. If you're not on the top of the list, there needs to be a paradigm shift or attitude adjustment about how you view yourself. Re-write that list with yourself at the top!

Set smart goals

Take another look at your list and your life according to those priorities and see where there needs to be improvement. Jot down how life would be if it perfectly coincided with what you imagined and compare it to your actual life. Where can you make changes? Start with the little things. Start slowly.

What are two to three things you can start working on today to not only build your business, but put yourself first? Maybe it's setting aside a space for your work or setting certain hours aside in the day to dedicate to your business by conducting research or making client calls.

At some point you're going to have to weigh the benefits and outcomes of your actions. Are you going to get better results by spending three hours cleaning or dedicating three hours looking at potential properties? My guess is that the benefits will come when you invest the time into your business; the dust bunnies can wait another day. When it's all said and done, what you're really doing is setting some boundaries.

Create positive reinforcement

Creating positive reinforcement and patting yourself on the back is essential. How do you do that? Look at the progress you're making on daily basis. Look at things from the outside. If you were a stranger and just met yourself, what would you think?

How would you feel if you met a mother of two who has the guts to get out there work hard to get what she wants? What would think of her? I believe you'd think she's pretty hot stuff.

As women, we need to really start valuing what we're doing and acknowledging those actions. We need to quiet and inner critic and give ourselves positive reinforcement.

Start setting some small goals right now, and know that an investment in yourself will pay off.

Brenda Coté is a Real Estate Investor, Real Estate and Mortgage Broker, Mentor, and Wealth Coach. At Transforming Lives, Creating Wealth, Brenda employs a "whole person" approach to support female Real Estate Investors succeed in business and life. To download Brenda's FREE audio workshop, "The Seven Elements of a Wealth-Creation Mindset" please go to: http://www.TransformingLivesCreatingWealth.com

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Getting started in Real Estate is easier than you think! Of all of the occupations I have tried, researched, pondered, and read about over the years, there is none which compares to Real Estate. My work is fun. I take ugly houses and make them beautiful. I help people out of difficult situations. How does getting started in Real Estate sound to you?

I am a Real Estate Investor. I am my own boss. I often work in my pajamas from the comfort of my home. I have no employees to baby sit, no perishable inventory to move, no franchise fees to pay, and no store to maintain. Still, I am in the top 5% of all income earners. If all this sound good to you, getting started in Real Estate could be for you!

I am a Real Estate Investor. I now enjoy freedoms I've never had before. I am the master of my day. I choose who to work with. I choose my hours, and I decide if I will work 20 hours or 40 hours this week. I can also choose to take the day off, without obtaining anyone's permission. I can take a month-long vacation. I can sleep in, or take a power nap after lunch if I want. I can review my notes and return my calls while lounging in my jacuzzi. I no longer have to commute during rush hour. Shouldn't you be getting started in Real Estate too?

I have the freedom to spend lots of time with my wife and child. I do not have the stress and pressure of needing to close my next deal by the end of the week, by the end of this month, or even by the end of this year. I live in one of the nicest neighborhoods, in one of the most beautiful states, in the best country that has ever existed on this Earth.

I am a Real Estate Investor. There are many who "want" to be like me; many who are "studying" to be like me; and many more who would be like me, but are just waiting for "this opportunity to appear" or "that circumstance to change"... At the end of the day, very few actually are like me. So be one of the few and get started in Real Estate soon.

I have been very fortunate and blessed. I am finally living my dream. I love doing what I do, and I would not trade places with anyone, nor trade my life experiences for anyone else's. I am driven by the belief that life is short, and we need to "make a difference" in the short time that we're here, because after all is said and done, it's really not about "us." There is no better time than right now to get started in real estate!

If you think starting a Real Estate business takes lots of money, you're wrong! Check out the link below to see how you can get started for FREE!

ArmandoMontelongo.com

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So you have money burning a hole in your pocket and the stock market is not behaving comfortably. Now that the real estate boom has come to an abrupt end in most of the country, it is back to basics for real estate investors. No more standing in line to get a new release condo under contract just to flip the contract on the way out the door.

Real Estate Finance

It is all in the numbers. Real Estate can behave like a bond once it is rented long term. Look at it this way. You invest in a property, which is like buying a bond, and the monthly rental check is similar to a bond coupon. Now the ratio of the price you paid for the property and the rent you receive annually is equal to your yield. If the property cost you $200,000 and you receive a total of $12,000 in rent you would be yielding a 6.00% return.

If you could borrow the who purchase amount at an interest rate lower than your yield you would have money in your pocket at the end of the year. The property would yield a positive cash flow. Likewise if the mortgage rate was higher than the rental yield you would have to chuck in some of your own money to pay the mortgage.

It is important to understand that in this example we assumed an interest only mortgage. In real life the mortgage lender would most likely require a repayment of the principal over 15 or 30 years. As repayment is like savings it changes your cash flow but does not alter the yield.

Investment Goal

There are two fundamental goals in real estate investing. Firstly the property you are buying should have an acceptable rental yield and secondly it should appreciate over time. The first objective depends on the rent you can ask and the ability to keep the investment property rented. The second objective depends on external market conditions and the area and type of property you invest in.

Expected Rental Yield

In times of falling interest rates the rental yield tends to increase making it more attractive to purchase investment property. But often falling interest rates coincide with uncertain economic conditions. So it is important to ensure a property will rent long term otherwise your investment yield is in danger. In markets with rapidly increasing real estate prices the rental rates often lag behind. This is equivalent to lower yields, which makes investing less attractive and should slow down the property price appreciation until rental rates have increased or property prices have devalued.

Picking the right area

Think of real estate as a commodity. Would you rather own something that is rare and precious or something that is available in abundance? Look for the diamonds for your real estate investing. Find areas that are confined and do not offer much more development potential. For example beach front property has to a certain extend only limited availability. Once the front row beach homes are developed there is just no more supply. Or explore investing in mountain resort communities. Simply by their restricted valley locations they are confined to a small area.

What you want to avoid is suburban areas that offer plenty of undeveloped space. The outlet of ever-increasing inventory will greatly limit your appreciation potential.

One last tip: If you are serious about investing in real estate talk to a lot of local real estate experts. Find a knowledgeable real estate agent. Search for that person and do not blindly accept to find the right expert in the first Realtor you meet.

Toby Munk relocated to Aspen Colorado to pursue a career in real estate. In his first year as a full time Realtor he was top producer of the Aspen office at Aspen Sotheby's International Realty. All things Aspen Real Estate can be found on his personal website. It allows for full Aspen MLS search and offers access to Snowmass real estate listings.

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