Real Estate Investing in Foreclosures

Miami real estate investing is not very hard to learn, even though that there are many facets that are essential to understand before attempting to start investing. While many books and seminars are offered on investing only a few deliver the desired results. Investing is not taught in any university and it is more of an art than an exact science. It requires a lot of perseverance and determination. Many investors learn by trial and error although a mistake could be very expensive and usually devastating. Numerous millionaires made their money through real estate investments. Information, education and research are major considerations for an investor to be successful.

Real estate investing in Miami, Florida is a full time business where investors are constantly trying to maximize their profits and minimize their risks in other to generate wealth over time. Investing is a verified long term wealth creator. It is a numbers game and many of the transactions will not work but it is all worth it when one deal goes through and all your hard work is rewarded. It takes a lot of time and effort to effectively dominate the art of real estate investing. It is a risky business but it is the best way to create lasting financial security. Investing in Miami real estate is an excellent way to make a positive monthly income and built long term wealth and obtain financial independence.

Investors in Miami real estate have recently taken a beating and many have seen their investment properties lose value. An investor should not panic and sell in this market to avoid huge loses. Since it is a long term business an investor should realize that the time is now to rent the property and hold until the market turns around. If an investor requires a predictable and safe return on investment then investing in Miami real estate is not the answer. The business of real estate investing is very risky, and unpredictable but well worth the effort. An investor should consider buying foreclosures and bank owned properties. The Miami real estate market has hit bottom and it should be bouncing back very soon.

Miami real estate investing is different than various types of investing. An investor must overcome many roadblocks and obstacles. Usually finding financing is the single most overwhelming challenge an investor will face when trying to purchase Miami real estate. Using leverage in the business is common so arranging financing is very important. Do not purchase investment property with no money down. Little or no money down has caused many properties to go into foreclosure recently. Investing is not as perplexing, time consuming and financially draining as one might imagine.

Bank owned properties or Reo’s and Short Sales are a good way to start to look for a good deal in Miami real estate to purchase. The list of bank real estate owned (Reo) properties is huge. Not all banks want to discount properties so finding a good property to buy takes a lot of work and patience. Short Sales are the new trend in speculating in Miami real estate. Banks are not very eager to short sale their inventory and it takes usually about two months for the bank to accept or reject the offer. Government foreclosures are another to avenue to search. These properties include HUD, Housing and Urban Development, VA, Veteran Administration, FNMA and Freddie Mac. HUD homes are very popular and usually they will sell to the higher bidder in a weekly online auction. Investors are allowed to bid when the property does not sell to owner occupants. These HUD-FHA foreclosures properties are offer an excellent value. Foreclosures remain the best way for investors to start in the Miami real estate investing business since most of them have instant equity.

The best way to start investing in Miami real estate is buying foreclosures. The tremendous amount of foreclosures now in the Miami real estate market overwhelmingly gives the investor a lot of inventory to choose from in order to purchase the right property at a discounted price. This opportunity will more than likely never be available again and investors should take full advantage. An experienced Miami real estate agent who specializes in foreclosures is essential in order to guide the investor. The agent must have access to current bank owned REOs, foreclosures, short sale properties, pre-foreclosures government foreclosures and other distress listings. Investing in Miami real estate is a very exciting and rewarding business.

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Take an Online Real Estate Investing Class

That’s because every investor needs to continue their education and learn from someone with more experience in order to succeed. Not only are real estate investing classes a great way to gain this knowledge, but they also provide a great way to network with other investors. Sometimes, professional investors with years of experience teach real estate investing classes.

The cost of these classes is worth the interaction with such a successful figure.

Real estate investors looking for real estate investing classes truly have a wealth of choices. This is great news, because real estate investing classes are an investment of time and money — both of which are non-renewable resources. Before you spend your precious hours and your dollars on any class, you should investigate to make sure that you select the right class.

One of the choices you will need to make when selecting real estate investing trainings is what sort of class to take. Community colleges, professional organizations, and other institutions offer in person classes. These real estate investing classes are the traditional learning experience – you learn in the classroom, and interact with your fellow students and instructor in person. In addition to these, though, there are also real estate investing classes available online.

These distance education courses allow you to interact with your fellow investor peers and investment instructor via e-mail.

There are some advantages to in person real estate investing classes.

For one thing, networking is made simpler by person-to-person interaction. You can truly get to know your students and your instructor on a face-to-face basis. Of course, that is if class size is small enough to accommodate much interaction. Also, in person real estate investing classes do require a higher level of commitment. If you have a hard time committing to studies, having to show up at a specific classroom on specific dates can provide you with the structure you may need in order to stick with it.

That said, though, there are number of advantages to online real estate investing classes.

One of these advantages is cost. Because online classes do not require building fees, commuting, and other associated costs, they can be less costly than on-campus courses. Secondly, online real estate investing classes give you more options. If you do not live near a college or university that offers quality classes from a qualified investor, you can easily take excellent programs with very experienced and qualified instructors from the comfort of your own home. Many online real estate investing classes are very sophisticated and useful. In many cases, less time is spent on housekeeping items and on chatting, and there is more of a focus on actually learning the material you need to know.

In addition, online real estate investing classes are useful for those investors who have busy lives. These classes can often be completed on a self-paced basis. You can study when you have the time, even if your days are already filled up with previous commitments.

Ultimately, whichever sort of real estate investing classes you select, you should be looking for the best classes you can afford. Look for classes taught by qualified instructors who themselves have achieved considerable success in real estate investing. Look for classes that have excellent track records and which are highly praised by previous students.

Checklist For Real Estate Investments

Real estate investments are surely providing steady flow of income and returns, only if they are appropriate, strategic and really sound. As a new investor, how could you guard yourself against unlikely real estate investments? It would be helpful if you would take a look at this simple checklist for real estate investments. If you would buy an investment property, better check out the following factors.

Location – Market valuation varies depending on the venue of the property. Of course, valuation of real estate in expensive markets is higher compared to similar properties located in cheaper and less lucrative markets. Globally, Moscow, London and Seoul are among the most expensive cities where valuations of real estates are at their highest. Properties in New York, California, Paris and Rome, among some, have always been on top of their ranges.

Tenant credit risk – You should know that the valuation of real estate can very much depend on the expected rental income of the property. If the real estate is not likely to generate significant rental income, then its valuation would surely decline.

Physical characteristics – When buying a property, check out the utility and type of building as these should affect valuation. Of course, condominiums are expensive compared to apartments because the formers are of course more secured, more developed and are provided with better amenities.

Tax implications – Real estate valuation is directly affected by tax implications. Take note that properties are imposed with stamp duties and property taxes, on top of the income tax, which could be computed from the capital gains and rental income.

Higher investment costs – Always remember that real estate investments are practically higher and more expensive than almost all other types of investments. For example, you can easily buy and own stocks. By just investing a few hundred or thousand dollars, you can already build up your own stock portfolio. That is not the case about real estate assets. Not too many people are able to invest in properties simply because they do not have appropriate resources to do so.

Legal issues – Most real estate investments are not as secured as stock investments. Stock exchanges secure and guarantee legitimacy and safety of investments. In real estate, such regulating body is not present, although a real estate regulator is exiting to rule about real estate practices and at times, prices.

Liquidity – Real estate assets are usually not easily and rapidly liquidated. Transactions cannot be completed overnight or within hours. Market conditions would have to be considered as they would influence and regulate the length and duration of the real estate transaction.

How to Get Started in Real Estate Investing the Right Way – Guidelines to Real Estate Investing

Real Estate Investing is a great way to create residual income and build long term wealth. In my opinion there is no other business where a normal person can build life changing wealth if they take the time necessary to learn how to invest in real estate the right way, develop goals and action plans, and implement proven business models.

However, one of the biggest mistakes both new and old real estate investors make is thinking that the fastest way to succeed in real estate investing is finding properties at deep discounts, investing a few dollars in repairs, and then selling them at or near retail. Although this strategy sounds like it makes sense on the surface and even may work for a while, in reality it’s what gets many real estate investors in trouble down the stretch. The real key to insuring a long and successful life in real estate investing is to look at investors who are successful and study what they do and use their models in your business.

Those of us who have been around for a while and have enjoyed great levels of success in our real estate investing business understand that the very first step should be the development of a business and action plans. If you do not know where you want your investment business to go, how can you expect to get there?

Highly successful Investors understand that you must set clear goals, and make plans to achieve them. Goal setting is a vital component in any business that has achieved great levels of success. For example, a famous study conducted at Harvard University found that only 3% of Harvard’s graduating class of 1953 had clear written goals with plans to achieve them. Some twenty years later, the same class was polled again, and it was discovered that the same 3% was worth more in terms of wealth than the other 97% combined!!

As a new real estate investor, what you should take from the above example is how important it is to develop a business plan to increase your chances of being a 3%er. There is no great secret why a select few enjoy real success in real estate investing -because there are a lot of 97%ers. Therefore, you must set clear goals, and develop plans to achieve them in order to be a 3%er in the business of real estate investing.

Real Estate Investing – Long-Term Recession Proof Plans

Many people are speculating that now is the worst time to invest in real estate. There are heightened fears of a recession, the global credit crunch means that people are tightening their belts and the cost of living has increased substantially.

However, despite these concerns, real estate continues to be a solid investment. People will always need a place to live for a variety of reasons including the increasing demands of immigration, divorce rates, people seeking greater independence at a younger age, students needing somewhere to live close to their place of study and the high cost of getting on the property ladder. This is a great opportunity therefore to supply real estate to meet the needs of the rental market.

Real estate investing during a recession is just as easy as investing during a period of economic growth. Property prices are much lower and there tend to be a number of cheap foreclosure properties on the market. This means that there is a real opportunity to make money in real estate but the strategy during a recession should be seen as a long-term investment rather than relying on short-term “flipping” investments.

“Flipping” which means buying a property, carrying out renovations and selling it on quickly for a profit (usually within a 3 – 18 month period) was a very easy and profitable way of making money a couple of years’ ago but is a strategy which is full of holes in today’s market. Less people are buying property today and those that are buying are paying much less than the asking price and you could find that you actually lose money rather than make any profit. Real estate investing requires a long-term view (about 2 – 5 years), because any properties that you invest in now whilst prices are cheaper, will see a steady increase in their value over time in the coming months and years.

So, what are the factors you should look out for when investing in property over the long-term?

Decide your strategy

If you want to appeal to young professionals, one or two-bedroom apartments are ideal in an area close to bars and nightclubs, and to transport links to get them quickly to work. If your strategy is to provide homes to families, a 3-bedroom house with garage space, close to schools, parks and supermarkets may be ideal. Deciding your strategy beforehand will make the process of investing much easier.

Decide where to invest

Is the investment in an up-and-coming, highly desirable area? There must be accessible amenities nearby such as shops, bars, schools and supermarkets. Notice whether there is an oversupply of newly built apartments or houses in the area which are empty or taking a long time to sell or rent out.

Do your research

Learn how to value property. What are other properties selling and renting for in the area your interested in? Speak to estate agents (but don’t rely on them) to get the best possible understanding of the real estate market in the area. Do the investments you are considering add up? Research, research and research again and carry out your own due diligence in order to make sure you are investing in the right property, in the right area at the right time.

Rental Property & Equity

This is the key to real estate investing over the long-term. Rental properties can generate passive income almost immediately, although this will probably only be a small amount of profit each month. Although you can’t expect to get rich on the profits of one property, five or more investment properties all bringing in a small amount of profit each month will soon add up to a comfortable income. This profit comes in handy when it comes to maintenance repairs for each property or to cover periods when a property may be empty. The real riches comes from building equity over the long-term which you can release over time to enable you to buy additional investment properties.

Remember, this is a business

You should treat your real estate investing as a business, which means you should not get attached to the property, which is quite common, especially amongst first-time real estate investors! It’s a mistake to become too personally involved in your property. You should not consider your own personal requirements, but those of the future inhabitants.

The real estate market is full of people who are driven by greed and fear. There were people who were jumping in with both feet during the real estate boom times because they wanted to get rich quick, but they lost a great deal of money and their investments during the leaner times because they hadn’t carried out the necessary research and due diligence needed to be successful whatever the climate. Taking the long-term view in real estate investment will ensure that you are successful in periods of recession as well as during periods of growth.