Five Key Principles To Real Estate Investment Riches

Real Estate Investing is the craze today with people involved in the Carlton Sheets program spending money on courses to find out how they can make money in no money down real estate investing. This article hopes to help you create some sort of mental picture of five key principles that can help you make more money with real estate today.

Principle #1- The money is made in the purchase
Real estate investing is like value investing in stocks and you want to purchase the real estate during a period of a real estate slump. The reason for this is so that you can get a huge capital appreciation when the real estate market heats up again.

Spending time doing real estate valuation is critical since if you cannot satisfy yourself on the maths that is a viable proposition, there is no way that your real estate investment would be a good one.

Principle #2- Monitor Cash flow
Real Estate investment typically have a monthly rental income which then is used to pay for mortgage instalments and other problems with the building like a roof leak. You would thus have to keep a close watch on interest rate hikes since they can potentially erode any calculated return on investment quite quickly. Once you have enough cash coming in, it is suggested that you then keep some of it in a rainy day fund in case some of the rental tenants do not renew their property and then take the rest and consider investing in another real estate investment property.

Principle #3- Leverage on other people’s time
Remember that no one can do everything, so the key is to focus on what you do best. If your strength is in negotiating deals, spend time looking for property and then get professionals and contractors to handle all the rest of the deal for you. Similarly, if you are good at decorating property, then find deals and focus on the interior design of the property. By focusing on what you do best and getting other people to do the rest of the work, you are leveraging on their time and you can then make more money from each new real estate investment that you undertake. Spend your time to build your team of advisors and employees who work for you and you will see your profits start going up. Remember that by rewarding them financially, you will get a group of dedicated people helping you make more money from your real estate investment.

Principle #4- Learn how to use leverage with a good rainy day cash balance
Did you know that many real estate investors started off with very little money to invest? Even large real estate developers like Donald Trump have learnt the power of leverage when investing in property deals. You want to leverage as much as you can so that you can control property worth many times more than what you own. Remember however to keep a rainy day fund containing a portion of the rental payments so that you can hedge yourself against a possible period where unit occupancy of your real estate investment is low. Leverage when used well can make you lots of money but if managed badly, will bankrupt you. Thus planning your cash flow and learning how to use debt is critical before you start serious real estate investment.

Principle #5- Spend time networking with real estate professionals
Do you want the latest real estate investment deals? The best way to learn of them is to break into the local real estate professional group and make friends with them. Learn some real estate investment lingo and spend time making friends with them because they are your eyes and ears on the ground and they can tell you about recent developments and changes in rental, property and infrastructure of their geographical location. Having the first player advantage is what many large real estate investors have and by spending time to network with real estate brokers, you will substantially close the gap.

In conclusion, spend time looking at these five principles and determine how they can be applied to your real estate investment and you might start seeing an increase in your real estate income.

Why Real Estate Investing Will Always Be Very Profitable

In recent months there has been a lot of talk about a crash in the real estate market.

Analysts predict a housing bust. News reports indicate that home sales are declining in several markets all over the country. This paints the picture that real estate investing is no longer a lucrative business. Investors all over the country are advised to get out of the game as quickly as possible to avoid losses.

What analysts and news reports don’t tell you is that every decade for the past forty years there has been some kind of warning about a crash in the real estate market. Each time these warning come out, people begin to mistrust real estate investing.

They turn their sights to other forms of investing. Analysts to preach this gloom and doom on the real estate market also do not understand that real estate investing is much different than stock investing. The same rules and trends do not apply.

Every decade when analysts state their predictions for a real estate market crash there are some real estate investors who heed this advice. These investors eventually regret doing so once they realize that there was no cause for alarm in real estate investing. Smart investors, on the other hand, realize that there is always money to be made in real estate investing and they know exactly why.

Humans have only a few basic needs. These basic needs never change, they never go away. These needs include food, clothing, and shelter.

The constant need for shelter lies at the root of the reason that real estate investing will remain profitable. Of course, there are some other key elements, but the least you need to know is that humans will always need real estate.

Even if real estate somehow dwindles from a structure with walls and a roof to a measly hole in the ground, it is still considered shelter. Someone has to provide these holes in the ground. Some holes will end up being better than other holes. Some people will have the means to buy and sell multiple holes. Real estate investing will continue to exist.

The real estate market alone will never experience a crash. In all the years that real estate has been around, the market has never crashed. The only time you will see a negative impact on the entire real estate market is when the general market experiences a downfall as well. However, when this happens, the value of all other commodities will decrease at the same time. Even in this case, real estate investing can still prove to be profitable.

You might see a local real estate market decline as a result of another catastrophe, such as New Orleans in the case of Hurricane Katrina. Because of a natural disaster, the majority of the real estate in the area was lost. There were no properties for homeowners to purchase. A key thing to know in real estate investing is that local markets always correct themselves. The disastrous loss in the New Orleans area created a huge opportunity for real estate investing.

Although the real estate markets in various cities might fluctuate from time to time, the real estate market as a whole will never experience a serious decline. This is the reason that real estate investing will remain a lucrative form of investing.

Home Improvement Tips To Help Sell Your Home

If you are a total layperson as far as home improvement is concerned, then you should hire help or enlist friends if you’re tackling areas where it does make a difference how you get the job done. Simple home improvement projects like painting can be attempted by everyone as the worst you can do is a patchy job that can be painted over.

Have Realistic Time, Money and Expertise Expectations – If you want to replicate a room that you have seen on Trading Spaces or Design on a Dime, get the inspiration but keep your expectations in check.

The people behind the work in such shows are experts; professionals in their field with years of experience. They can do things faster and better than an average person and if things go wrong, they also know how to make them right. When planning home improvement projects, keep your expectations real as far as budget and time considerations go as well.

The designers on the show often get great discounts from others in the business as they need the promotion on popular television shows. Plus, they often accessorize rooms with flea market finds and things picked up at garage sales. You could strike gold too, but it doesn’t happen very often.

Home improvement shows boast of the latest faux paint techniques and the hottest colors for the season. However, the green you like for your master bedroom may not appeal to prospective homeowners. If you do have hot pink bedroom walls for your daughter, tone them down or make them neutral as well. This is because new owners may not have a daughter who will use that room and they may want to move in to something that requires minimum effort.

The designers on the show are experts themselves plus they have a lot of help from back up crew and the like so they can delegate tasks and get more done in less time.

What You Can Do On Your Own – There are things shown on home improvement shows that you can easily replicate like rearranging your furniture, de-cluttering and even painting so don’t give up a home improvement project just because you can’t compete with the pros. However, assess your strengths and keep a plan B in mind. For instance, while you are redoing your kitchen, factor in the cost of eating out for all the days that the floor is ripped out and the appliances unusable.

Go through the entire home and toss, donate or store anything you do not need immediately. This will free up walking space, wall space, counter space and the like and prospective owners will feel they are getting more footage for their dollar. If there are pieces you can not part with, hold them in a separate storage area not your garage or basement. Then if you still feel they are important, bring them back in your new home.