A 5-Point Plan to Successful Real Estate Investing

By: Alexandria Anderson

People enjoy being mystified. Works of art them, so they ooh and ahh and congratulate the writer or the artist on his natural talent. The sciences are mystifying to them, and so they don't even wonder about what researchers are actually doing. Investment in real estate is mystifying to them, and so they make the assumption that it's just a odds game and that some people are either lucky, or that they possess an inborn talent.

They refuse to accept that succeeding in all three disciplines is simply a matter of breaking it down into steps and following through. Anyone who reads the Rich Dad, Poor Dad series by Robert Kiyosaki will realize that, in real estate investing, there are five important steps necessary to succeed. Investor must:

1.Learn how to speak in the language of real estate investment. This means that you should take in the basics of {accounting and finance and know how to read financial statements. These skills will help determine whether a property is assets and potential drains. Also, it's vital to know the basics of real estate and tax law so that you do not make expensive mistakes, but in addition to know where the great tax deductions for real estate are. Understanding the basics of these subjects will also make it possible for the investor to know what to ask his lawyers and accountants when he hires them, and to understand the significance of what they tell him.

2.Keep experts close by. This is all about networking and studying the people who may wind up on the real estate investing team of experts who will help him find and evaluate properties. He should familiarize himself with the community of experts in the city in which he is looking to invest his money, thereby familiarizing himself with the city itself.

3.Study the market consistently and closely. He should read up on various cities and see what the experts say about them, but he should also take a look at them himself. He should do this double-time in his own city, if that is the he is planning on investing there. He should familiarize himself with economic factors and learn which areas are good news, and which are bad news. He should study what the rents in his marker and determine if a property located in that part of town would help him reach his financial goals. He should also and walk through as many pieces of property as possible with his team of experts, even if he is not ready to buy.
4.He should know the right and wrong way to negotiate with a seller. Many have the wrong idea regarding negotiation. They are under the impression the purpose of every negotiation is reach a closing regardless of the circumstances, and to strongarm the seller into ceding to his demands. If the investor can work the relevant numbers to his advantage, and the seller will agree to his terms of sale, that is the point at which the investor ought to proceed and purchase the property. If not, the {buyer should refrain from closing on the deal. “The ABCs of Real Estate Investing,” by Ken McElroy states that the investor should go into every negotiation assuming he will walk away in the end.

5. Take care of your property. This comprises just what you would expect. Make the necessary repairs and improvements to the property and get the empty units filled. Make sure the tenants' wants and needs are addressed.

This description represents a streamlined version of the long road to real estate investment success, however these five simple steps show that investing in real estate is a process which can be learned by anyone. Nothing about it is really magical or mystical about it.

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Alex Anderson Uses The Minnesota MLS Real Estate Listings To Locate Quality Homes For Sale In Minneapolis. Download A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com

YOUR FIRST HOME IS STILL WITHIN REACH

By: Alex Dalley

YOUR FIRST HOME IS STILL WITHIN REACH!

With the average property now costing £150,000, more joint first time buyers have opted to take the plunge and move in together for their first home. Single first-time buyers up to now had normally accounted for more of the purchases than joint first-time buyers partly due to affordability and lifestyle choice. Since last year we have began to see a shift in favour of more couples choosing to move in with their nearest and dearest.

Statistics from the Council of Mortgage Lenders (CML) shows that affordability has continued to get worse for first-time buyers in recent years. The CML is the trade association for the mortgage lending industry, with members accounting for around 98 per cent of UK residential mortgage lending. Research found that buyers contributed an average of 20.7 per cent of their income towards their mortgage last year, compared with 17.9 per cent in 2006. Although even more disposable monthly incomes are set to be consumed by mortgages in 2008, figures released so far this year suggests first-time buyers do not appear to be dissuaded from entering the property market at present. This, in-turn, is bringing back much needed confidence to the sector.

According to Connells Survey & Valuation, the number of mortgages approved to first-time buyers for house purchasers grew by three per cent in January 2008. There were 75,300 approvals for house purchases last month up from 73,000 in December 2007. Ross Bowen, Managing Director of Connells said “The mortgage market may finally be finding a floor after months of decline overall, caused by higher interest rates, the reduced supply of credit from mortgage lenders and consumer confidence.”

Results from the Spicerhaart Financial Services monthly survey into mortgage transactions has found that there were two per cent more first-time buyers in January 2008 than in December 2007. The survey also found that first-time buyers were responsible for a third of all property purchases made during January 2008. Steve Cox, Operations Director for Spicerhaart Financial Services, said, “individuals just starting on the property ladder have been encouraged by the drop in the base rate, but have not been discouraged by the need to put down a larger deposit and stamp duty.”

Many experts are predicting that during 2008, single first-time buyers will have a difficult year. Property values have increased by 18% in the last two years, but incomes have basically stayed the same. In 2006 interest rates were very low at 4.5%, compared to now. Buying alone was affordable and not too risky. With interest rates at 5.75% at the end of 2007, mortgages have become too expensive for individuals to take on alone. Presently, base rates are on the way down, but the confirmed bachelors and bachelorettes will have to wait a few months to get any real benefit.

Katie Tucker, Technical Manager for Charcol.CO.UK, said , “Joint buyers made up 45% of first-time purchases in 2006 and increased to 50% during 2007. Men buying alone fell by a corresponding amount, but interestingly, the amount of women buying their first property alone, hardly changed at all. It follows that, not only are more women buying, they are doing so jointly. More men are taking the decision to settle down with a partner for their first home. Buying together is a very sensible choice in terms of affordability. Not only for splitting the mortgage and the bills, but more cuddling up enables individuals to get out of the rental trap and investing in their future. Financially, sharing costs through joint ownership can also work out cheaper than renting.”

Joint mortgages are fast becoming more popular with lenders, increasingly offering products designed specifically with joint owners in mind. Individuals joining forces financially can now conquer high property prices and begin climbing up the ladder. However, it must be stated that joint ownership is not without its risks, therefore independent financial advice is recommended.

Editor: Simon Weston www.myfirsthomeltd.co.uk
Email: Simon.Weston@myfirsthomeltd.com

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We want to help people find their perfect home Working closely with various partners in the property business we make the purchase of your first home a pleasurable experience, reducing the stress Are you a first time home buyer? Are frustrated with your current circumstances be you a renter or currently residing with your parents? Have you tried and failed to buy your first home? If so join us and a solution to your current circumstances is on the horizon.... Working closely with various par

How to Get Cash Back When You Buy a Home

By: Omni Chaparala

While buying a house is a huge investment, it can also be a way to save money. Programs offering cash back on real estate have become extremely popular and are available to most people, no matter whether they are buying a house by themselves or through a REALTOR, and regardless of whether this is their first home or a commercial property.

Step 1:
Get money back when working with a REALTOR if you search and find your own home but use a REALTOR to close the deal. According to real estate experts, you are entitled to a percentage back at closing time because you did the legwork. Do keep in mind that most REALTORS will not offer you a cash back reward unless you ask for it, so be sure everything is agreed to in advance.

Step 2:
Use a company that offers cash back on real estate upon closing the agreement. DFW Realties in the Dallas Real Estate | Dallas Realtors market is a good example, as it allows you to get 2/3rd of the agent's commission at the time of signing which amounts to thousands of dollars. There are many certified companies that offer rebates, such as Inest. One of the advantages of using a certified company is that all moneys are kept in escrow until closing time, so you are never at risk of losing your percentage, no matter how the process goes or changes.

Step 3:
Declare the real estate purchase on your tax return. The government offers cash back to first-time home owners who closed a mortgage in any given calendar year and are within the 28 percent tax bracket. How much you get back will depend on the amount of your itemized deductions versus your total standard deductions.

Step 4:
Get cash back from the seller. If you are buying a home that is in foreclosure and paying actual cash for it rather than buying it through the bank with a loan, you are allowed by law to offer the actual priced quoted for the house, even if the seller is willing to take less for it. At the time of closing, you can take part of this money back as a credit towards repair, but you will still be legally able to report the total price on your taxes, increasing your break.

Caution

Cash back payments that involve telling the loaner (usually a bank) an inflated price for the house are illegal. While many real estate agents and homeowners are not aware of this problem, it is technically illegal to request a loan higher than the actual price of the property with the idea of getting some cash back from the seller at the time of closing the deal.

Learn to Love Your Losers

By: Leroy Rushing

Ok, so no trader truly enjoys taking a losing trade. But if you want to succeed in this business of day trading, learning to love your losers (or at least accepting them) is one of the most important lessons you can learn. Psychologically, human beings are not well designed for trading financial markets. We hate losing, we hate being wrong, and we get buffeted about by those twin emotions - fear and greed. This leads us into all sorts of self destructive habits. Moving stop losses further out - just to give the trade time to turn round. Or grabbing a profit as soon as it appears - just in case we have to give it back.

The simple fact is that most successful traders lose as many, more likely more, trades as they win. What separates them from the rest is their ability to cut a losing position and run a winner for as long as possible. The arithmetic is simple. If your average winner is twice the size of your average loser, then you can be wrong on 50% of your trades and still make very good money.

In fact, you can be wrong 66% of the time and still break even. Improve the ratio by more than two to one and you can make massive amounts of money in the markets. Unless you can learn the art of letting winners run and cutting your losers short, you will never get those big winners that make the difference, and you will never reach that magical relationship where your average win is at least twice as big as your average loss. This fundamental concept holds true no matter what time frame you trade and whether you’re a day trader, swing trader, or even if hold your trades for over a year.

The key to reaching this state of affairs is to develop or adopt a high probability trading system and stick to it. The more you can automate the trading process, the less likely you will fall into bad habits. This will take the psychological problems away and allow you to be less controlled by your emotions.

So don’t be afraid of losing trades. They are part and parcel of this business. Learn techniques that will allow you to minimize and control them and the profitability of your trading will improve more than you can imagine. Fail to master this concept and you set yourself up for disappointment and frustration.

Of course, getting the mental bit right is only part of the answer. There is a plethora of moving parts when it comes to trading. Learning how to pick good trades, understanding entry and exit signals, and spotting when a move is coming to an end are vitally important, too.

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About the Author:
Leroy Rushing is an active, professional day trader; trading coach; and eBook author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.

5 Reasons To Step Away From A Trade

By: Leroy Rushing

Volatile markets can send your positions into the negative. Indeed, bad trades frequently happen to good traders. Regardless if you are a scalper or momentum trader, the most important part to any strategy is knowing when to intelligently and rationally walk away from a trade.

1. No Support or Resistance in Sight

Technical analysis is the backbone of day trading. Day traders use technical analysis to find support and resistance levels to determine where the price will go next. Most day trading strategies are built on support and resistance, with some heed paid to news events over the course of the day. When holding a position deep in the red, or if you are contemplating taking a position, look at the chart for support and resistance lines. In an area with no support, it is likely that the stock could go in any direction.

2. Momentum is Against You

With a quick breakout out of an uptrend, you suddenly find that the market is moving against you. Upward gaps symbolize that the position has legs and will keep running. Momentum strategies usually send day traders and swing traders alike to place heavy bets in their momentum calls. Once a trend is established, traders from all around the world jump on and push the market further – meaning your trade runs further from your profitability. When the market gaps away from you, get out of the trade.

3. Low Reward

Trading success is dependent on producing returns and minimizing risk. When support and resistance levels are both within sight, it is generally not a good idea to make the trade. The marginal benefit from a support bump is not worth the risk of a trend breakdown. Create your own risk and money management criteria to determine when the time is right to make a trade.

4. Topping Out

Tops are difficult to call until they are over. Understanding candle sticks and candlestick chart patterns can make calling a top a much easier task. In a market top with significant support, the price could drop dramatically or go into a sideways trend. A sideways trend is a dangerous market because the ups and downs eventually breakdown to send the price in one direction, giving you a 50/50 probability of profitability.

5. Late in the Day

Late day breakouts can be profitable, but holding a position overnight can ruin your trading capital by market open. Swing traders might be able to weather the market open, but highly leveraged day traders should avoid late-in-the-day positions. Most trading strategies avoid late-in-the-day trades to cut interest costs and limit exposure to volatile market opens. In day trading, it is always best to start your trading day anew, limiting your risk to any overnight or pre-opening bell surprises.

The most successful traders know how to read strong trades, but equally as important, they also know exactly when to cut their losses or lock in their gains. Developing your trading acumen means trading your exit strategies and analysis.

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Leroy Rushing is an active, professional day trader; trading coach; and author. He is the Founder and CEO of Trading EveryDay, a distinguished provider of educational trading products and services that are available worldwide.

Success in Real Estate Investing Requires Healthy Skepticism

By: Alexandria Anderson

Some people will liken real estate investing to playing the lottery. They think it is all about being in the right place at the right time and that makes them adopt one of two mindsets. These people will either jump into real estate investing without looking first, or else they will steer clear of investing completely, believing it to be nothing but a fraud.

Although it's good to harbor a healthy degree of skepticism , it isn't good for a person to be so skeptical they refuse to even try. Kiyosaki's Rich Dad series portrays real estate investing as to be easy. Too easy, in fact, if you don't realize those Rich Dad books are simply intended to prepare the beginning investor to educate himself further on real estate investing. The series itself isn't a complete course, but merely an introduction.

After finishing a couple of Kiyosaki's books, it is possible to know the rudiments of real estate, and that it is possible for anyone to grow into a prosperous real estate investor. Skeptics who are not so skeptical they see the whole real estate investment game as a sham, will know there's much more to learn at this point.

The objective skeptic (as opposed to the bitter or cynical skeptic) realizes that doing one's homework plays a key part in the ultimate success or failure of a real estate investor. One must know the way in which one must go about doing that research and what details one needs to gain from the process, and one must proceed to put that knowledge into practice by actually carrying out that research.

Beginning investors should study up on the cities in which they are interested, learning about the economy, whether the area is attracting people in or repelling them, whether businesses are coming in or whether businesses are shutting down. These are only a couple of the things a real estate investor ought to know about an area in which he plans to buy property, but they are extremely important.

The true skeptic understands that even if he reads that an area is doing wonderfully, that doesn't mean no further research is in order. Facts must be verified with more than one or two sources. Cities must be visited. Officials of the city should be interviewed. Experts should be consulted.

A smart skeptic doesn't assume anything. Skeptics check things out, as do successful real estate investors. They let experts direct them to more experts. They question local businessmen and politicians. They get these experts and citizens to back up their impressions instead of simply believing everything they hear.

It's all about putting in the work to get the facts you need. Don't be afraid to ask questions – It’s a vital part every investor’s education. A little skepticism never hurt anyone.

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Alex Anderson Is A Licensed Minnesota Real Estate Agent Who Helps People To Purchase Money-Making Minnesota Investment Properties. Get A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com