Setting Up Your Real Estate Investing Business – The Business Setup Checklist

Since I get over 1,000 real estate investors coming to my various real estate investor websites and registering with me each week, as you might expect, I get quite a few people asking me how to get started investing in real estate.

When my business was smaller and I was just running my own real estate investing business and our local real estate investor group meetings, I used to sit down and meet with investors that asked me this question individually. We’d go to lunch at my favorite burrito place and I’d ask them many questions.

I’d want to know about why they wanted to invest in real estate, what they expected to get from it, how they thought they’d be making money as a real estate investor, how much time and money they planned to invest in themselves and their real estate investing business, what their business and investing experiences had been so far, and so on and so forth. After a couple dozen of these meetings though, I noticed a pattern in what I suggested to each of them (and yes, it really took that many meetings for me to notice this pattern): I suggested that each one of them get started wholesaling real estate.

After I told them that they should wholesale real estate first, I’d then run down–very haphazardly–a list of the things they needed to do to get started in their real estate investing business. A few years have passed since those first meetings and the first time that I made a quick list of how to get set up investing in real estate. Over the years, I’ve had quite a few people get started in the business based on those meetings with me. So, in this article, I’d like to share with you my Business Setup Checklist for Real Estate Investors.

In the Business Setup Checklist, I am not going to have you spend tons of money at first to lease an office, purchase expensive computer equipment and otherwise commit to lots of expenses with no proven income from your business. Instead, I will share with you what I believe to be the most important things to do and to purchase to get started in your own real estate investing business.

First, I believe you need to take time to sit down and decide where you are going. Stephen Covey says, and I agree, that you should “Begin With The End In Mind.” It is much easier to accomplish a goal if you know what you are trying to accomplish. Please, do yourself a favor, and don’t skip this critically important step.

Second, setup, or at least figure out, the minimum telephone communication system you will be using. Many times, it will be using your cell phone (and changing the message from something unprofessional to something more business-like). Of course, there is a wide range of telephone services you can setup. Start very basic, spend very little and expand as revenue increases.

Next, I am a big believer in using 24 hour recorded information lines in my marketing and so I do recommend paying the money to get this set up. With these, you can spend less on marketing and then have people call in to get more information about buying, selling, renting or private money before talking directly to you. You’ll be tempted to bypass this step and use regular voice mail (remember I’ve helped lots of other people get started investing in real estate) and that would be a mistake.

The next step is the MOST IMPORTANT step of all: get your marketing and get it out. Nothing happens until you start talking to motivated sellers in this business, so you need to get them to call you (or start calling them). So, take some time to figure out your basic marketing. Depending on your budget, you may also consider getting a website and bandit signs at this point as well. If you are on a tight budget, use the free website route and skip the bandit signs until later.

Once you have your marketing and are starting to get it out, you should then be getting organized and ready for seller calls. Make your Seller Presentation and Credibility Pack. Setup your office files to track income and expenses, marketing files and property files. Also, make sure you have the files and forms you need stored in your car. You never know when you might need to write up a contract and better to have them with you in your car at all times, then to miss out on a deal.

And finally, set up your business entity. The reason I recommend this last is because most people will stall on this step and unless you have assets to protect, it is a mistake to get hung up on it to begin with. If you have significant assets to protect, you should meet with your personal attorney at the start of any new business to get personalized, professional advice relating to your unique situation.

So, those are the basic steps to setting up your real estate investing business.

James Orr is a professional real estate investor, marketing expert and founder of the LearnToBeRich.com on-line investment game.

He works with a network of real estate agents, brokers and real estate investors across the United States through the AnalyzedDeals.com [http://AnalyzedDeals.com] website.

Article Source: http://EzineArticles.com/expert/James_Orr/531093

 

Sky Rocketing Prices of Real Estate in India

Well you are at right place if you have planned to buy a house or property in India. In the purpose, individuals need everything best from reliable agent who can guide you, well established company for home finance and insurance, credential professionals to design your dream home to superior quality furniture.

Due to booming economy, favorable demographics and open foreign direct investment (FDI) system, the demand of real estate sector of India has mushroomed incredibly. A number of IT parks and residential townships being constructed across-India.

A wide range of factors that include rising income of middle class, increasing nuclear families, low interest rates and changing attitude of this modern generation has boosted up housing demand. Today’s young working population considers theory of save and buy to buy and repay also increases demand of property in India.

Commercial office spaces requirement has incredibly increased due to mushrooming outsourcing, information technology and organized retail sector. If sources are to be believed, it is estimated that IT and ITES alone required 150 million sqft across urban India by 2010. Moreover, it is expected that organized retail sector required an additional 220 million sqft by 2010-11. With the rapid growth of Indian economy, the demand of commercial property has increased to fulfill the needs of business that includes state-of-the-art offices, hotels, shopping centres and warehouses.

After seeing the prices of Indian real estate is sky rocketing and estimating it will increase for a next few years, a number of prominent global players such as Carlyle, Blackstone, HSBC Financial Services, Morgan Stanley, Trikona, Warbus Pincus, Americorp Ventures, Barclays, Citigroup, et cetera have all already entered into the Indian real estate market.

According to the experts in the real estate market, the demand for all segments of the real estate sector will continue to grow. It is expected that the Indian real estate industry will grow from US$ 12 billion in 2005-06 to US$ 90 billion in by 2014-15.

Due to boom in residential housing, IT, ITES, organized retail and hospitality industries, the demand of Indian reality industry has been increasing day by day. It is assumed that foreign direct investment (FDI) alone might see a close to six-fold fly to US$ 30 billion over the next 8 to 10 years.

So, if you are interested to invest in India, then go through our website as we are associated with renowned property dealers who offer a wide range of facilities to our customers. Our motto is customers’ satisfaction is our satisfaction.

Martinez is currently working as an expert author for Real Estate Development in India. He writes for real estate and real estate related matters like Real estate growth, Real estate guide, Real estate companies, Commercial Real Estate and provides advices on such issues. For more details information on Real estate investors, Real estate jobs, Real estate agencies, real estate india.

Article Source: http://EzineArticles.com/expert/Martinez_Collins/104158

 

Finding the Perfect Real Estate Manager

Managers are all important members of a business as they can either help boost it or they can cause it to fail. In the current property environment that businesses have to try and sustain themselves in, it is important for all mangers to have a well rounded personality. In this you can easily understand why it is so important to get the real estate manager who has the right attitude, skill sets and experience.

Depending on the type and size of your real estate holdings, property managers will need to use different skill sets. If you have just a few apartments or single family homes that you are renting then your property manager will need to have very good communication and customer skills when dealing with your renters. If your real estate holdings are quite large then personnel management skills will become very important. You never want to get a property manager that is in the business only for the money.

Small Real Estate Holdings Management

Maintaining a 100 percent occupancy rate is of primary importance for the smaller real estate manager. After all having a 10 or 20 percent vacancy rate can put you in a very large negative cash flow situation very quickly. Your manager will need to keep your rentals occupied and the tenants happy. He or she will need to not fall victim to a tenant’s hard luck story on why the rent was not paid on time.

Your manager will also need to be able and willing to take care of minor maintenance problems such as painting, plumbing, electrical and carpentry work. After all, managing your property will not be a full time job and if your manager can take care of minor maintenance problems himself, it would go a long way in maintaining a positive cash flow.

Medium Real Estate Holdings Management

The primary difference between small and medium real estate holdings management is his ability to manage independent contractors. Your property manager will not have the time to do a lot of the maintenance himself. What you are looking for is someone that can develop a relationship with other small business or independent contractors that can do most of the maintenance on your properties but not pay full price for that service.

Your real estate manager will need the ability to see a maintenance problem and determine if the problem has to be fixed right away or if it can wait a few days. If it can wait a few days then your property manager will need to make arrangements with one of his independent contractors to get the job done in a timely fashion. Independent contractors will usually give you a price break if they can do the work around their schedule.

A great place for property managers to start building relationships with independent contractors is to talk to people that work at Home Depot, Ace Hardware and other home repair businesses. Talk to someone in the paint department if you need painting done or the electrical department if you need electrical work done. Someone is always looking for extra work. Independent contractors will require a lot of supervision to make sure the job is done up to your standards.

Large Real Estate Holdings Management

The primary difference between small or medium and large real estate holdings management is his ability to manage employees. Your property manager will have several full time employees. Dealing with employee benefits, vacations, keeping track of sick days and personal days off is an art form and can quickly get out of hand and become cost prohibitive if it is not done correctly.

The Perfect Real Estate Manager

The perfect real estate manager is one that you have trained yourself. If you have a lot of real estate properties consider dividing it up in to small holdings. If you have four or five property managers and one is not doing the job to your satisfaction then fire that person and give that property to the manager that is doing the best job for you. After a few years you will end up with one or two perfect managers.

This would be much better than turning your properties over to a large property management company and finding out a couple of years later that you suddenly have a 30 percent vacancy rate and all of your properties are in need of major repairs because the minor repairs were not taken care of.

David Cowley has created numerous articles on real estate investing. He has also created a Web Site dedicated to real estate investing. Visit Real Estate Investing [http://www.rgvre-team.com]

Article Source: http://EzineArticles.com/expert/David_Cowley/78936

 

Real Estate Agents and Dubai Real Estate

Purchasing a real estate offshore is a different cup of copy than buying real estate in our own country. With the Dubai real estate market thriving, the best choice for those investors who wish to case in on the city of wonders is to find real estate agents specializing in Dubai real estate.

The climate and culture in Dubai is different from any other country on earth. The sweltering heat and long summers tend to overpower many buyers. Real estate agents understand the changes that need to take place in order to own a piece of property in Dubai and with the right amount of knowledge can help guide you through the process of finding a comfortable property with all the amenities of home.

Not just any real estate agents can help to find the right property in Dubai. Only the most elite real estate agents with time spent in Dubai will understand how to look for Dubai real estate make an offer on that real estate and close that deal of dreams. Wasting time with real estate agents who want to sell Dubai real estate but have never set foot in the country is like playing with international fire.

When you are looking for an international real estate agent there are different factors to consider. You should have an understanding of the market fluctuations, complete listing of the available properties in Dubai, both completed and in the building phases and an agent that is willing to spend the time needed to find the perfect home, condo, apartment or villa for your money. There are many real estate groups that help you find the best real estate for you and help you giving tips on maintaining the real estate to get maximum profit in future.

Landvest Limited, the Real estate agents in Dubai is an official European partner of Dubai properties and provides specialist advice on all aspects of buying and selling on Dubai real estate.

Article Source: http://EzineArticles.com/expert/Anitha_Hari/124981

 

The Importance of Knowing Your Local Real Estate Investing Market

How well do you know your local real estate market? The answer to that question will have a lot to do with whether real estate investing provides a lucrative future for you and your family or rueful memories of what might have been.

By knowing your local real estate investing market, you’re able to keep your finger on the pulse of your local community and to stay abreast of changes in trends, sales prices and rental rates. Knowing immediately about these changes is critical to your investing future. Here’s how each of these three areas will affect your future:

o Trends – National media outlets report gloom & doom outlooks for real estate, but even in the most depressed real estate market there are isolated pockets and neighborhoods with property values that are increasing. If you don’t know your local real estate market, you’re simply taking a wild guess as to value. When negotiating with a homeowner, it’s imperative that you know what the property is worth. Otherwise, you run the risk of overpaying or offering too little, which could offend the property owner and get you kicked to the curb with your hat in your hand.
Another reason you want to know your local real estate market is because certain areas within a given community make better investments than others. If you invest your hard-earned dollars in an area that is declining, property values could fall and some or all of your investment could be at risk. By keeping an eye on trends within your local real estate market, you can more readily take advantage of opportunities to get in on the ground floor of an investment and ride the wave of property appreciation, which will have a positive impact on your bank account.

o Sales prices — How much is property worth in your local real estate market? Do you have a clue? You need to be cognizant of local sales prices — especially now — because property values can change very rapidly. In today’s volatile investing environment, it’s not unusual for the value of a property to fluctuate by $10,000-$15,000 in a given month. If you have a property that you’re considering selling, you can gain or lose a tremendous amount of money in no time.

o Rental rates — Current knowledge of your local investing climate is imperative when determining what rental rates are in a particular neighborhood. If you do a cash flow analysis on a property and you assume that it will rent for $1,500 per month and in reality it will only generate $1,100, you could have a problem, especially if you were anticipating a positive monthly cash flow of $200. If the rent a property can command is $400 less than you anticipated, you would have a monthly loss of $200. Negative cash flow sets the stage for a constant drain on your financial resources, and could eventually cause you to rethink your commitment to real estate investing.

Today’s real estate investing climate makes accurate and timely information critical to your success. If you don’t know your local real estate market, you could be in serious trouble. An excellent way of developing a proper and accurate knowledge of your local market is by trailing an experienced mentor who knows what he or she is doing. In addition to teaching you how to analyze current market conditions, you’ll also be able to better understand what to look for in your local real estate market.

Real estate investing is a great way to expand your financial opportunity, but a failure to know and understand all of the variables within your local market can very quickly erode opportunity. Learn your local real estate market and make this your best year ever!

Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1000 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US http://www.CoachingByPeter.com

Article Source: http://EzineArticles.com/expert/Peter_Vekselman/61170