1. Formulate a Team

There are a lot of important things to consider before purchasing an investment property: down payment, tax liabilities, market conditions, general banking and trust account handling, landlord-tenant laws, lease preparation, contract formation, and the list goes on.

You can take the time to do the research yourself or you could consider hiring a team of professional to assist you. To handle all these issues you may need to consult an accountant, a lawyer, and a sophisticated realtor… OR you could hire a property management agency- the right agency will be knowledgeable on tax topics, the local market, accounting, and lease preparation and execution. You could, and many people do, manage a single property or a few properties on your own, but if you want to maximize success then you should plan to spend considerable time researching all of these areas before signing that purchase offer.

2. Determine YOUR Location

I say YOUR location because that is often most important to your investment decision. Are you going to invest in your local community or are you going to invest in another area? If you buy in your locale then you may be able to handle the management yourself. If, on the other hand, you are determined to purchase outside of your area (usually beyond a 30 mi radius) then you need to consider the implications of being a long-distance owner.

Local owners have the ability to tackle all aspects of your property management. You can consult with YOUR account, YOUR realtor, YOUR banker, contractor, plumber, etc. Maybe you prefer the DIY approach to maintenance- no problem a quick trip over to your property is usually not much of a hassle.

Long-distance owners need to be aware that the DIY approach is virtually impossible. You will need to find trustworthy experts to consult for your professional services including your contracting. Often times long-distance owners will need to rely upon management companies to do their bidding. This is a crucial decision since your manager will be the one negotiating contract and lease prices on your behalf. It is absolutely imperative that you find a management company that you can rely on to keep an open line of communication and one that you know will hit the ground to track down new tenants and keep your investment in tip-top shape.

3. Title Transfer and Commercial Insurance

This area might not always pop up on the ‘investment property top five list of things to consider’ but being married to an attorney this is one area that I feel is overlooked. Often times investors do not consider the implications their investment properties have on their personal assets until they have expanded their portfolio to multiple properties.

Without going into specifics, you can imagine where I’m going with this topic. For example, a tenant slips and falls on the sidewalk in front of your property because your maintenance person or snow removal company didn’t adequately clear the ice. Who’s liable for injuries stemming from this fall? You, individually? Your homeowner’s insurance? Your maintenance person? With damages for personal injury lawsuits increasing on a daily basis this is a topic worth noting.

First decide where you fit in:

Home owner desiring a sale
Home owner desiring cash flow from a sale
Beginning investor with no cash desiring to make money
Experienced RE investor
Landlord with a current portfolio

Understanding where you fit in will help you determine what strategy to use in order to make mortgage notes a valuable investment for you. If you are a home owner simply desiring to sell your home then seller financing is something you should look seriously at. The next thing you need to think about is simply whether you want to hold the note as an investment and receive payments long term or if you want to sell all or part of the note to get a lump sum of cash. The answer will be different for every seller. If you decide you want to keep the note as a cash flow investment then it really only needs to satisfy your needs. it is still a good idea to do some research and find out how to structure a good note. If you are planning on selling the note then you definitely need to be sure and create a note that a mortgage note investor will be interested in.

If you are a beginning investor or desire to be an investor but you have no experience then you definitely need to think about things differently. If you are looking to make money with mortgage notes, know this. It is a lot of hard work.What you need to first accept is that you are talking about becoming an entrepreneur and running your own business. Recognize that running your own business is at least 10 times harder than working a job for somebody else. You must accept this and accept complete responsibility for that and then go about learning the business. You need to know all you can about the note business, how to market it and how to make sure your potential customers are satisfied. That may involve helping the home owner understand how to best structure a note or how much to expect from the sell.

If you are an experienced RE investor who already has properties and wishes to begin investing in paper then you will already have a good foundation and just need to add some additional insights to expand your business. You may need to learn more about lending rates. You will need to research the paper side of the business a bit. Know that you can turn any deal you own into a cash flow note deal. I would suggest that anybody thinking of investing in notes on a level that involves their creation, make sure the note is created in such a way that a current mortgage note investor would be interested in buying it if the need ever arose. Make sure there is a significant down payment and the rate should be above the going industry rate.

If you already own cash flow properties in the form of rentals you might want to consider the idea of seller finance for some of those properties or others you find. With this mortgage note You will have the same benefits of cash flow as you do from the rentals with the added benefit of a more responsible tenant. they will be more likely to take care of the property because they are buying it from you. They will likely take better care of the maintenance and they will be responsible for taxes and utilities and all other fees. Read more about the Mortgage Notes Business today and find out how to make it work for you.

But like any other realty market, some properties in the country give a very good return, while others produce lackluster results, at best. You may not lose your money by blindly investing in any property in the country, but you may lose the chance of earning a very good return. It is, therefore, advisable to wisely choose a property from booming Costa Rica realty market.

3 most-attractive Costa Rica real estate options you should not let go of

Manuel Antonio Real Estate

Manuel Antonio is, perhaps, the most sought-after tourist destination for people coming to the country because of its nearness to Parque Nacional Manuel Antonio (Manuel Antonio National Park). This is the biggest drawer of visitors from abroad, so a property bought in the vicinity of the Manuel Antonio village will fetch high return on investment. In the recent months, demand for investment properties in Manuel Antonio has witnessed a significant surge. Although the national park is the smallest in the country, its biodiversity is second to none. This is an ideal investment destination also because it is not as over-exposed as San Jos, which has Pos Volcano National Park, the most visited national park in the country, in its vicinity.

Quepos real estate

The reason behind shooting demand for Quepos real estate is its proximity to Parque Nacional Manuel Antonio. It is the closest town to the national park. The small town of Quepos had traditionally been lazy. It was a town of plantation workers, fishermen, and merchants, but the fate of this little town, which is only 7 kilometers from Manuel Antonio, changed when visitors from outside came flocking to the neighboring national park. It is at the time, one of the hottest realty markets in the country.

Costa Rica luxury real estate

Luxury is always sold dear, and Costa Rica is not an exception to this rule. If you can spare money to invest in million-dollar villas then you should look for luxury segment. This segment pays a huge dividend, but its not suitable for those who want to enter, buy, modify, and sale the property in a jiffy. You need to have patience to make a killing in Costa Rica’s luxury real estate market. Manuel Antonio is a fertile ground for such properties.

Property market in Costa Rica has grown to this extent also because of the ease with which foreign investors can invest in the country. For an American investor Costa Rica’s real estate market offers a fabulous opportunity, and the safest real estate investment in foreign country. When contemplating the investment options, one should never let the above described property investment options go out of sight.

Here are some of the cooling measures governments had put in place to tackle this sensitive issue of providing affordable housing for their own citizens.

Let us first take a look at land scare Singapore, an obvious hotspot considering her small size, political stability and attractive demographic. Foreign institutional and retail investors from around the world as far away as USA, Canada, Europe, Middle East, and neighbouring countries like India, China, Indonesia and Malaysia are flocking to this island state to snatch up the private properties.

Prices for leasehold condominiums located in the sub-urban area can easily cost $1 million. To retard the escalating property prices and to pacify the outcry from the citizens, the Singapore government reacted swiftly with these latest sets of cooling measures, effective 1 December 2011.

1) Foreign investors will be subjected to a 10% stamp duty in addition to the current 3% of the property price.

2) Permanent Residents buying their 2nd or more property will be subjected to an additional 3% stamp duty from the current 3%.

3) Singaporeans buying their 3rd or more property will be subjected to the additional 3% stamp duty.

Real-estate prices have gone up so much that some analysts in this island state are expecting prices to fall by as much as 20~30% from end 2012 to 2013. But having said that, this is subjected to the economic developments coming from U.S, Europe and China.

Next, let us look at Malaysia. This country is separated into two portions by the sea. Peninsular Malaysia lies south of Thailand, and is bordered on the west by the Strait of Malacca. Across the South China Sea are Malaysia’s eastern states of Sabah and Sarawak.

Malaysia is a relatively large country and thinly populated. The highest concentration of property investment is in the capital. Contrary to Singapore, there are no restrictions on foreigners owning landed properties, though foreign investors are subjected to the following set of regulations.

1) A foreign-owned levy 11,000 Malaysian Ringgit

2) Minimum property price is 500,000 Malaysian Ringgit

3) Not permitted to own Malay reserved land

4) Own up to a maximum of 2 properties only (If there is intention to own a 3rd property, application for approval has to be submitted to Foreign Investment Committee of the Economic Planning Unit at the Prime Minister’s Department).

The newest project located on the southern part of the country is expected to be the next economic power state for the country with its close proximity to Singapore. The Malaysian government had already invested millions of dollars into the development of this project and is expected to spend millions more, considering the sheer size and economic importance of the area.

There is More to Real Estate Investing Than You Might Think

Investing in RE is more than just buying a house that is undervalued. Sure an undervalued home can be a good investment, but it sets the individual up for quite a bit of risk. Instead, a better way to make a real estate investment during a down market is to purchase multi-family units. Apartment buildings provide numerous streams of income from one property. That said, there are a number of benefits to multi-family properties.

The Many Advantages of Multifamily Investing

The biggest advantage to purchasing a building with multiple units is that there will almost never be a time when all the units are empty. This means that even in the event that a tenant decides to move out, you will still have revenue coming in from other tenants to help pay for the mortgage on the building. Of course, there is no guarantee that the units will always be filled, but it is less risky that investing in a single unit building. The law of averages works in your favor.

Now you might be thinking that with a property that has multiple units, there are also many more things that can go wrong. Along with more units come more upkeep and maintenance issues. But this problem can be solved by hiring a handyman service. By leasing a unit to a handy-man and not charging any rent, the building will stay well maintained, and you can avoid the cost out of pocket costs.

What about the Fact that Multifamily Real Estate is More Expensive?

Some might say that the downside to purchasing a multi-unit property is the price tag can be a bit higher than on a smaller single family residence. While this can be a detriment to those who are having trouble getting a loan, it is not always as big a deal as you might think. Many lenders will count signed leases as income, allowing the person purchasing the building to qualify for a much larger loan. You can also go in with other investors on a multifamily property, cutting down on the size of your initial investment.

Decrease Risk by Hiring Real Estate Investment Advisors

It’s true that there are no guarantees with any investment. But there are ways to lessen the risk when investing in RE. Having a little business sense, and hiring the right real estate advisors will help a person learn how to mitigate risks and how to properly purchase, manage, and profit from multi-family properties.

It is obvious that the best real estate investments are those properties that are bought at lower prices than their market value. These properties can be later sold at their real market value or for slightly more. You may be wondering how to get hold of houses that are being sold at low prices. This is an easy enough task. All you have to do is be on the lookout for houses that have been repossessed by lenders. Houses on foreclosure are usually sold for a lower price than what they would be sold for in the market. Lenders are anxious to get their money back and would not care much for making a profit on the property sold. Houses are therefore sold at low prices.

Some of the best real estate investments are those that are sold for market values but have some hidden and unexploited potential in them. When you buy such a property ensure that you make the necessary improvements and have the property back on the market within six months to a year. This will ensure that you get at least 20% more on the house. This requires you to look for a house with care. Don’t just pick any house but, pick one which can be easily improved and therefore appreciate in value.

The best real estate investments for those looking for long term investments are rental properties. With signs of improvement in the economy more people are going on holiday. Holiday rental properties are therefore a good investment as more people prefer to have their own home away from home experience as opposed to living in a hotel. Residential properties are also a good investment as more people move into urban areas.

By Martin Njogu

It’s believed that the start of prosperity had already begun until the country’s economic slowdown. While at a snails pace now, the economy will rebound as it always has before. With the future of large scale growth very probable, investors will start to narrow down area with the greatest potential for profit. As individuals and companies alike focus in on Beaufort SC, they will likely become trained on three areas: the downtown Beaufort Historic District, commercial property on the Robert Smalls Parkway corridor, and acreage/waterfront property on St. Helena Island top the list of best investment real estate in the Beaufort South Carolina area.

Historic Downtown Beaufort SC is home to a unique area which lends itself to be a top investment area in the near future. The preservation of so many historic dwellings in downtown Beaufort makes the housing market extremely diverse to the buyer. Homes include large stately homes from the 1800′s, carriage houses turned into single family residences, townhomes from the 1700′s and homes built in the early 1900′s. Homes and neighborhoods are charming, with wrought iron gates, courtyard gardens and live-oak lined streets. Culture which includes horse drawn carriages that clippity-clop past grand homes, offices, shops, and upscale restaurants makes this market very desirable.

What makes the future investment in downtown so great are so great are the underway improvements to an area with so many already in-place advantages. Current project underway include the Bladen St. revitalization project and the Boundary St. Municipal project. Bladen St. has now been upgrades with new street lamps, freshly paved asphalt, and beautiful new sidewalks. The new Municipal buildings on Boundary Street are in the various construction phases to be completed by the end of 2009. The ascetic improvements are already evident. These improvements will propel home renovations, nicer homes to be built, and an overall rise in property value. Improvements like the one on Bladen Street are planned for the remainder of downtown, which will greatly improve the already desirable area. Since similar improvements in Charleston SC were completed in the 1990s, home vales have more than doubled. Expectation for downtown Beaufort SC are high, and rightfully so.

The next Beaufort SC real estate area which could see large property value increases in coming years is the commercial corridor of Robert Smalls Parkway. Anchored by the Cross Creek Shopping Center featuring a Super Center Wal-Mart, this commercial district is on the verge of exploding. In just the past 12 months Bojangles, Arby’s, Sake House, International House of Pancakes, Jersey Mikes, and other national retailers have opened their doors. Citing the Beaufort County Association of Realtors Multiple Listing Service, several hundred undeveloped acres are currently for sale along the parkway. While no area is a sure thing, commercial real estate in this area is one of Beaufort’s best investment areas.

The final area for great investment potential in Beaufort is waterfront property on St. Helena Island. Rural and for the most part undeveloped, St. Helena Island has oceanfront, riverfront, and tidal creek lots. With a buyer able to purchase an acre on deep water in the $300,000 range, property here is a great deal. Waterfront lots on St. Helena are often less than half the price as comparable lots in Charleston, Hilton Head, Bluffton or Mt. Pleasant. Is development coming to the St. Helena Island? You bet. Located directly between the oceanfront resorts of Fripp and Harbor Islands and Lady’s Island, the centralized location leaves no doubt. The biggest question is how long an investor will have to wait to turn a profit here. The answer depends on your age. An educated estimate would say five years. For investors who are at or nearing retirement age, this might not be your cup of tea. For everyone else, St. Helena waterfront lots are a sure bet for substantial growth in value.

Regardless if Downtown Beaufort, the Robert Smalls commercial corridor, or waterfront land on St. Helena Island, these investment areas are an investors best bet when it comes to investing in the Beaufort SC area.

By Todd Covington

Loaning is your only answer if you don’t have cash to acquire and upgrade a property. But most people are still worried of borrowing from lenders or banks because of investment property interest rates. It is similar to regular loans where you can pick between variable or fixed interest rate. When you loan from a bank, there are ways to save cash by reducing the amount of interest that you will pay. Due to rise of lending companies, banks are giving special offers and discounted rates.

Interest rates will influence on how you are going to pay for your loan, so if you have lower interest rate, you will be paying for a smaller loan. So it is vital for you to find the best investment property interest rates.

* Compare – lending companies compete with each other and it is in the best interest of the investor to search for the company that offer the best rate.

* Property investing – some lenders extend lower interest rates for property investment as it is considered a low risk investing. This is a good thing for those who foster their wealth through real estate.

* Borrow more – some lenders offer discounts on interest rates for a person who borrows more. This may appear risky but as long as the investor knows what he’s doing, why not? It will produce great return if money are used wisely. Borrowing more can also mean an opportunity to remodel the property, if possible, for an growth in revenue.

* Loan calculation – this is very [helpful|useful especially|specially if the investor focuses more on real estate investing because it can give you the best loan [option that will suit your needs. While some people use home loan calculators to find better investment property interest rates, it is still advised to speak to a consultant who can complete the calculations that is precise to his or her goal and situation.

Generally, it is very important for you to find a loan with a reduced interest rate as this will affect how less you are going to pay for your loan and save you a lot of funds. Again, search for special offers and discounted rates on investment property, and then compare providers to make sure you are getting the one with the best investment property interest rates.

By Allen D. Wright

Usually larger commercial projects are huge and take months and years to complete the entire construction. One of the best ways to expand the project to get more profits quickly is to sub divide the main project into smaller sub divisions and selling each piece as a separate thing. Attractive leasing rates, considerable cash flow, huge profits are some of the best features. The rental rates for commercial properties are normally calculated as price per square foot. Also commercial props have more advantages over the residential properties since they have longer lease period.

Making money on investing in apartments, shopping centers, hotels, and other commercial income properties are highly worthy. But investing in commercial properties requires bit experience. Once you gain success in small scale business, you are perfect to invest in commercial real estate market. Several opportunities are offered in commercial real estate and commercial properties are currently in higher demand than residential properties.

Since the investment is heavy in case of commercial real estate, you need to look into several factors before investing in it. The primary thing you need to keep in mind prior to invest in commercial real estate is, never hurry up things. Ensure whether you are financially fit for the investment and is ready for the move. If so, then wait for the right time to invest. It is not new for real estate market to face ups and downs every now and then. Hence make sure whether you are investing at the apt time. If you come across a commercial property that suits your requirements and needs, never simply go with it. Check for more properties which may include the same features. Hence it is better to have a list of properties in hand and choose the best one among them. Also in order to purchase a commercial property you would require a huge amount. Therefore preplan well and if you wish to get a loan, then apply for it at the earliest.

By Bob Gam

While absolutely nothing is assured, cautiously selected land could be a superb investment. Here’s the way it functions for personal investors:

A real estate investor firm researches land that has the highest probability of development

They buy the land when it does not have any permission for development either housing or commercial

The land is demarcated into compact sites Personal investors purchase sites of land for a very meager amount

Once purchased the investor has freehold ownership with his name mentioned on the sale deeds

Investor can promote the land whenever he or she feels like

Land will most likely improve in worth with the passage of time

Land will considerably improve in worth when ever the permit for development is sanctioned

The relative inexpensiveness of such land implies that it’s now a golden investment chance for personal investors. The land is usually purchased with out any permission for housing or commercial development, that is why it’s less expensive. Although this does not ensure that the earnings from such a investment will be considerably high. The real estate firm generally researches the region such as the numbers of new homes required and also the availability of other land around the proposed land of purchase prior to selecting which land to purchase. What this means is the real estate firm won’t purchase land unless of course it’s extremely certain that it will likely be granted permit for development at a later stage.

A prudent investor might place the cash gained by their initial “land deal” and purchase new sites of land. Such investment really is medium-term, so the returns are available in 5 to 10 years. What this means is that with cautious planning, you can re-invest your earnings right into a variety of land sites, generating much more cash when permissions are sanctioned. For the investor this is truly valuable as they are able to resale at a valuable price or are able to invest their equity into additional properties. Real estate investments have made millionaires out of people and they continue to be one of the best investments in the nation.

By Ashlee Pannell