Investor Relations » Real Estate Investment

What Commercial Real Estate Investment Clubs In Michigan Can Do For Investors

Admin — Fri, 08 Jan 2010 00:23:44 +0000

The commercial real estate investment clubs in Michigan can help investors find properties that are sitting waiting to be purchased by someone. There are different kinds of commercial properties for sale, such as regular commercial sites and commercial lots. Some of these have not been developed yet. Once they get a buyer, development can begin.
The state of Michigan has lots of families whose income fits in the middle class range. Since the state is known for supporting different types of things relating to sports, such as swimming pools and other related sports, there is no doubt that commercial real estate would thrive here. The commercial real estate investment clubs in the state have connections to make things happen.
In the state of Michigan, you will also find commercial real estate for retail areas, physician’s offices and industrial areas. With the help of the local investment clubs, you can find information on commercial lots and office buildings. There are lots of places in Michigan where you can get your money’s worth in commercial real estate investments.
Members of the commercial real estate investment clubs can help you create a business plan. This plan should include what your business is about, the focus and objective of you business, and who your customer base will be. As long as you provide the club members enough information, they can assist you with finding viable commercial properties.
The commercial real estate investment clubs in Michigan can help you search for different investment properties if you are not familiar with the process. You should narrow your choices down to a few in the beginning. This way, you won’t get overwhelmed with information. There are plenty of commercial properties to select. However, the best properties that investors seem to thrive on are the ones by the lake area.
If your business is one that needs to have a location near the lake or waterfront, keep in mind you will be paying a little bit more because of the location. Location means a lot when you are want to invest successfully in commercial property.
You as an investor should choose an area in Michigan where it is conducive to the demands of your business. The commercial real estate investment club can help you do that. They can help you select an area where the traffic will flow. If you choose a high traffic area, it may cost you a little bit more. Don’t despair, it will be worth it in the long run. The clubs in Michigan are very familiar with the industrial areas that surround where they live.
Some of the club members may be familiar with the lake front and waterfront areas in Michigan, and can provide tips and insight as to whether or not the area is a viable location for you. There is no need of setting up shop there if you don’t have anything to show for it.
The commercial real estate investment clubs in Michigan can help you find quality real estate agents and brokers who can secure a deal for you with that property. The clubs can also help you check out getting financing and insurance for it.
If you are considering a commercial investment in the state of Michigan and need assistance, do your homework, check a few local clubs out, find the best one that suites your needs, attend their meetings, educational seminars. Find people that are successful and have experience investing, see if you can partner up with them, learn from them.

Guidelines for novice Real Estate Investor

Admin — Sun, 03 Jan 2010 10:25:43 +0000

Real estate investment is a solid and secure form of investment. But before starting real estate business there is couple of things which a real estate investor should know. You must always know what you are doing before you do it. So, formerly getting started with real estate business you need to obtain the basic idea on the subject. You can get ideas by reading some books on real estate or attending seminars relating to real estate investing. Real estate investor programs also educate you in how to build investor investing websites, which may lead to profit maximization. They can even help in building both marketing and investing websites. With the knowledge of both processes, the investors can make money and minimize risks. The programs also help you in getting information and tools you need for tackling problems in investing. It even teaches you important things in regards to investing. The investors must use their skills and must bring them into practice. The investors must even seek advice from ACTUAL investors working in the local market. You must have a home inspector, contractor, realtor, tax accountant and attorney to give advice to you. Home inspector keeps you away from big mistakes and realtor gives you advice on markets and attorney is must in real estate business. It is very important for you to understand the principles of this trade before you start your operations. Without understanding how the real estate industry works, you should not start the business as it may results in an unprofitable deal or even bankruptcy. Many novice investors buy the first or the second property they visit. They fall in love with them and stick to it in such a way that, they are not even bothered to check, if there is some better deal currently on the market and this may bring about loss in the business. You must always check out the properties in and around your area, the rental rates and the insurance and property taxes levied before buying it. You must always look for a better deal. However, this doesn’t mean that you do not buy anything, but wait, wait and wait. You must learn how to pick out the right investment property along with how to help the profits grow. The investor must set financial goals. You must be clear and certain of your goals. If you don’t do that, you cannot determine which deal is good enough and either starts investing blindly into the first property seen or puts all operations on hold. The novice investors should not make huge investments in the beginning; they must start with small investments only.

Real Estate Investing for Beginners – Part 2, Types of Properties for New Real Estate Investors

Admin — Sat, 12 Dec 2009 18:22:13 +0000

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/TownhomesBeing 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

* Receive 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 investorsProperty 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

What Real Estate Investors Must Know About Insurance and Risk Management

Admin — Sat, 12 Dec 2009 05:57:21 +0000

What Real Estate Investors Must Know About Insurance and Risk Management

The real estate investment market has seen considerable growth in the recent past. The price of homes is on the rise, and relaxation of many demands and regulations on investors has stirred significant interest from many new economic groups. Lenders have lowered credit score requirements, and waived some previously standard documentation.

For these and other reasons, newcomers have flocked in record numbers to this game. None of this, however, will guarantee a profit on your investment. As you increase the dollar amount of your investment, so do you also increase the associated risk.

It would be wise to become familiar with a few different forms of insurance available to real estate investors.

Title and liability insurance are among the most common. Title insurance is designed to protect against issues that arise over the legal transfer of title from seller to buyer. A title company will search necessary databases to ensure that the property is free associated burdens, so that it may legally change hands. This type of insurance will cover potential economic loss as a result of these and other paperwork, filing, and tax issues.

Liability insurance protects a property owner against injuries incurred on or as a result of using the property. The insurance does not cover the property owner, but rather it was designed for injuries sustained by a third party. So when the door-to-door vacuum salesman slips on his way up your walk, you can rest easy, because your liability insurance will cover his medical bills and any resulting settlement lawsuit.

There are many other forms of insurance, which have been designed to cover any number of possible mishaps. Hazard insurance, for example, will cover damage resulting from earthquakes, tornadoes, hurricanes, flooding, fire (natural), and dozens of other factors beyond human control.

You can buy insurance for chemical spills, fire (from, say, a candle), electrical failures, vandalism or theft, faulty plumbing or wiring, and so forth. There’s even a policy designed specifically to cover large appliance failure.

Landlords may purchase insurance to cover lapses in rent payment, tenant-related damage to the property, and abandonment.

If you finance your property with a loan, the lender will likely require that you purchase mortgage insurance, which pays out to a lender (not you) in the event of default or disaster.

The price of insurance varies according to the degree of coverage desired, and the associated deductible. Read the policies carefully, noting any fine-print issues which may be used later to deny coverage. There is no law requiring that you use a specific insurance company, so do your research first. Shop around, and look for the greatest coverage at the least out-of-pocket expense. Find the policy that is best-suited to your particular needs.

By: Paulie Sabol

Need to attend seminars from real estate investors before investing

Admin — Thu, 10 Dec 2009 16:16:49 +0000

First let us understand what real estate investment seminar mean. The real estate seminars are generally organized by real estate investment companies. And all existing and potential real estate investors will be invited either publicly through an ad in a newspaper or magazine, or individually by a phone call, an email or orally. The speakers at these seminars are usually a highly successful real estate investor who has amassed millions and he will speak to motivate you to achieve similar success. He will offer a variety of tips and relate his personal success story. There may also be certain other professional motivation speakers. An investment expert is also invited to deliver a special address to explain the investment methods and market scenario. The fact is some of these seminars are truly helpful and members can immensely benefit by getting buying and selling advice. But several seminars are organized with ulterior motive to entice you into making some high risk investments. Some of these real estate investment companies exploit the members by asking them to pay seminar attendance fees, selling some costly printed literature or books and deploying high pressure sales tactics to browbeat the participants. During real estate seminars, the successful investors conduct discussions to share their experiences with the participants. The seminars are also organized to help beginners pursue their dreams. The strategies suggested in these seminars often help the aspirants to get rid of their diffidence and get started. You have to however exercise caution while choosing to attend the real estate seminars. Ascertain who the speakers will be and what their credentials really are. The term “expert” is grossly misused in real estate circles. Do not be carried away by pep talk and do not succumb to pressure tactics when making decisions about real estate investments. Before deciding to attend a real estate seminar, conduct your own pre-study. Read the flier to determine if the speaker will present comprehensive information on real estate investments, financial implications and tax benefits. All good speakers, with professional integrity, will help you understand the various aspects of real estate investment. Find out if environmental and economic issues will be dealt with in the seminar. You will immensely benefit listening to details about Green Building tax credits and higher returns from sustainable developments. As these factors are of great importance in any long-term real estate investment, it is worthwhile learning about them in greater depth. Find out if the real estate investment seminar will have a question and answer session. If so, make sure to ask questions pertaining to areas the speaker did not adequately cover or was ambiguous about. Real estate investment companies conducting the seminars usually recommend high-risk investment strategies and borrowing huge sums of money that can imperil the investor’s financial position. If you have been approached about a seminar or real estate investment which appears suspicious, or if you have been misled into investing money on some wrong deal, you can lodge a complaint on the ASC and RECA websites. To succeed in real estate business which is rather complex, it is important that you periodically seek some independent professional advice. It is in this context that real estate seminars become relevant and useful. A real estate seminar will provide some critical information on real estate investments and other related issues. Therefore it might be a good idea to attend a real estate seminar provided one is cautious about the organizer’s motives and high pressure selling techniques.