“Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”

This is good advice as long as you don’t get so spread out that you are doing too many things but nothing with success. It’s important we understand the fine line between focusing on one niche without putting all your eggs in one basket, (so to speak).

To simplify the term real estate investing, there are really only three ways for investors to make money in real estate:

1. Real Estate Appreciation and Equity
2. Cash flow while you own it
3. Assignments: Payment when you flip a real estate contract without owning it.

So where do you start? Let’s try to answer this question on every aspiring real estate investors mind. Since real estate investing encompasses so many types of exit strategies or I like to call profit centers, it’s important to study and pick those you are most passionate about. In my Coaching U2 Profit Your Way training I thoroughly teach on over 24 profit centers, otherwise called exit strategies. The following is a summary of ten of the most popular real estate investment strategies with their advantages and disadvantages.

1. Rentals or Cash flow Investment Property: These types of investment properties are the ones which generate rental income. These are mainly apartment buildings and rental houses.
• Advantages: One of the easier ways to get started, and good long term return on investment while also earning monthly income.
• Disadvantages: Risk of not renting property leaving you with the mortgage payment and no income. Property management can be a challenge. You typically will wait awhile to sell your property so payoff is slow.
2. Lease Option. This is when you buy a property, then sell to someone else via a rent-to-own arrangement.
• Advantages: You get higher rent, and the buyer is usually responsible for maintenance. Cash flow can be good.
• Disadvantages: Most rent to own buyers don’t complete the purchase (this can be an advantage too, but it does mean more work for you). Bookkeeping must be done properly and can be complicated.
3. Fixer Upper Investment Property. These types of investment properties are the ones which are in ugly condition and need renovation. These properties can be acquired to flip after fixing-up quickly or held to rent out.
• Advantages: You can receive a quick return on your investment (months). You usually get below market value pricing on properties bringing you instant equity.
• Disadvantages: Higher risk. (Many unpredictable expenses come up in construction). You get taxed heavily on the gain when you sell in under a year.
4. Vacant Land. Many options including just holding while appreciating. You can also split it and sell it.
• Advantages: History has shown that land always appreciates in value (it’s the buildings on the land that go down. It is simpler than most real estate investments, with the possibility of great profits.
• Disadvantages: It can take a long time to increase in value. You have expenses, but no cash flow while you wait unless you sell the contract before closing.
5. Commercial Real Estate. These are any building containing 5 units or over and/or buildings sited for commercial use.
• Advantages: Long term triple-net leases mean little management and high returns. Lending is usually based on the value of the property vs. personal credit.
• Disadvantages: Commercial property valuation requires a more complex method, taking into account the income potential of the property. This is recommended for the more experienced investors as there is a lot more involved to set up and maintenance.
6. Buy property with Forced Appreciation. Buy in the path of growth and holding until values rise. For instance buying a lot in a residential development prior to roads being completed.
• Advantages: Can yield large profits, especially if you buy low to start.
• Disadvantages: Future price is not predictable – the market can turn, the developer can go out of business. You have expenses with no income while you’re waiting.
7. Preconstruction Investment Property: These types of investment properties are acquired directly from a developer before the construction or renovation is completed.
• Advantages: Low money out of pocket to tie up property while being built. If purchased in appreciating markets, you make money in equity at closing and can instantly re-sell at a profit.
• Disadvantages: You can’t always predict what a market is going to do. If market depreciates, you have lost money. Also higher tax rates in selling quickly.
8. Pre-Foreclosure Investment Property: These types of investment properties are the ones which you buy from sellers who are behind in their payments and may lose their property to the bank via foreclosure.
• Advantages: You have opportunities to buy properties at below value pricing – “Instant equity”.
• Disadvantages: Legal liabilities are higher. Finding these properties requires a lot research and footwork to find a deal that works. You can do all the work and still not have a deal with enough equity to profit after expenses to sell, (taxes, realtors, etc).
9. Assignments: This strategy has you get into a property at a discount, preferably with a known buyer in place before you commit to your purchase. After you are in contract to purchase a property, you would sell your contract for a fee to someone else. For example you get into purchase contract to buy a $120K property for $100K. You turn it to an investor for $110K and profit $10K cash without the cost and hassles of ever closing on the deal.
• Advantages: This is a great way to make quick cash with low or no upfront investment, low risk and fewer headaches from closing and ownership. This strategy creates a win win win outcome for everyone involved.
• Disadvantages: This will only work if the property you are buying has equity so that you may buy it a discount. In declining markets, this type of property is harder to find. Also when dealing with banks on REO’s or Short Sales you will find they will not allow you assign your contract. However, there are ways to get around this if you plan and handle the contract correctly up front.
  Do you want to know how I have managed to get around not being able to assign a contract? I have purchased properties in the name of an LLC set up exclusively to buy properties. I then sold the LLC to someone, making them the owner of the LLC, therefore making them responsible for closing on the purchase contract and end buyer of the property.
10. Flipping - Wikipedia defines Flipping as is a term used primarily in the United States to describe practice of buying an asset and quickly reselling (or “flipping”) it for profit ..

This description pretty much explains property flipping, with there being a slight difference from that description of flipping assets. In real estate you can get into an agreement to flip a contract you have gotten into before you even buy it. This can be done with ease when you know exactly what your buyers want and with no money out of your pocket utilizing transactional funding. Flipping can also mean closing and quickly reselling your property, sometimes even doing both transactions the same day – this being subcategorized a “double closing”.

• Advantages: My favorite strategy. You work the deal backwards. You create relationships with buyers who can close quickly with cash, (I mentioned earlier there is a system that does this for you at www.CashBuyers4Flips.com ). Then you find a property meeting the needs of your buyers. This strategy allows you to profit literally from no money down, with lower risk and very little of your own time.
• Disadvantages: The law requires you to disclose your intent to resell quickly to sellers. When dealing with banks, this can sometimes cause your offer to be rejected. You must buy properties in the name of an LLC in order to utilize transactional funding. Setting up and maintaining an LLC will cost you money. Though the intent of a buyer might be to close on the transaction, sometimes “life happens” and something causes the buyer to be unable to follow through. You may have to walk away from earnest money if you cannot find another buyer quickly

Now that you that you have learned strategies to consider, you will need to consider the type of properties you want to go after, developing a marketing strategy to find motivated sellers of those deals. Over the next months I will be sharing steps and strategies on how to profit investing in real estate 12 different ways.

Please leave a comment if you have anything you would like add to what I have written here with the heart to support fellow real estate investors. (Any solicitations for business will not be published) I appreciate the feedback!

Zig Ziglar says, “You can’t fly with the eagles if you continue to scratch with the turkeys.”

I have to agree…you see he goes on to describe the term “eagle” referring to high achievers – those positive, motivated, successful people who make you feel honored and appreciated when you are in their presence.

“Turkeys” are those that are negative, downers who probably don’t align with who you are inside… or even who you want to become.

“You must be the change you wish to see in the world.”
Mahatma Gandhi

When I decided to finally sort out my life, I had to seriously limit contact with some of my best friends because their values and morals did not match mine. Nor did their attitudes reflect the kind I wanted duplicate. So I had to begin by distancing myself a bit from those “turkeys”.

Are you afraid that if you begin changing your habits and thoughts, thus your circumstances, your current friends may no longer accept you?

What if they judge you and don’t understand your motivations, or say those dreaded words ‘you’ve changed’?

Well, if they do say those words, “you’ve changed”,say “thank you”! ‘You’ve changed’ are probably the most beautiful words in the Universe when it comes to success and wealth, and life change in general.

“When you blame others, you give up your power to change.”
Dr. Robert Anthony

Most people fear change. However, you don’t have to be “most people”. Try looking at the noticeable changes as a compliment acknowledging that not everyone around you is going to accept the ‘new you’.  Your acceptance of this truth will free you to act authentically as the person you aspire to be.

And when you are feeling like your own strength can’t carry you – remember there is a much strong source of strength – all you have to do is ask.

…but those who hope in the LORD will renew their strength. They will soar on wings like eagles; they will run and not grow weary, they will walk and not be faint.
The Bible – Isaiah 40:31

Watch for part 2 next week…. the exact steps to fly like an eagle and set those turkeys free.

Originally posted 2010-06-15 08:29:53. Republished by Blog Post Promoter

Do you agree that it’s important to be sure and do your own due diligence to decide what is good for you in your life?

I mean, don’t you want to do your own research on what is right for you, not just depending on what other people “tell” you to do?

I have said over and over again in real estate – you must “do the due”!

So how much more important do you think it is for you to do your due diligence on things that will affect your health?

Many of you know me as the “The Flippin Queen”, due to my extensive experience quick turning, (aka: flipping) investment properties.  I still aspire to live true to that name even in today’s crazy real estate market. In addition, I will continue to provide support and training to real estate investors through my many online tools and training. (www.managemybizonline.com)

And now, I have added a new topic to my support and training. I have added even more tools and support to educate you on what I believe to be the most important area in your life should you chose to want it. In fact, I believe, you cannot experience any kind of success without knowledge and action in this very important area… your entire life depends on it.

I am excited to begin a additional path of sharing with you in this area of expertise I have enjoyed for a good many years, (More on my personal experiences later).   I am calling this health education side of things, The Principles of Natural Health.

You see, in addition to continued real estate and personal development support, I am now going to be showing you what I have discovered to be the keys to enjoy living a healthier, longer life by following some Natural Health Principles guaranteed to enhance your life when they are followed.

Want to be part of doing your own due diligence on your own health with me? Start here…
Go here to register for this webinar bringing out the TRUTH in what are in
those products we use in and on our bodies every single day.

Register Here Now:
https://www3.gotomeeting.com/register/633891382

Go here to sign up to stay on top of ‘The Natural Health Principals’.
http://www.blog.bulanaturals.com
Follow these principals and you will find yourself having more energy and vitality than you hever thought possible!

Next week, stay tuned for more rock solid real estate words of wisdom .
Or Better yet – words of experience!

Originally posted 2011-05-25 11:07:16. Republished by Blog Post Promoter

“The one thing you can’t take away from me is the way I choose to respond to what you do to me. The last of one’s freedoms is to choose ones attitude in any given circumstance.”

~Viktor Frankl

[hana-flv-player video="http://www.ispiproperties.com/videos/marshallsylver/marshallsylver.flv"
width="400"
height="330"
description="Marshall Sylver"
player="4"
autoload="true" autoplay="false"
loop="false" autorewind="true"
/]

What if it was possible to be happy even when things aren’t going your way? What if there was a simple way to be happy, despite your environment, while staring adversity straight in the eyes?

Would you like to get rid of the noise in your head telling you every reason why you shouldn’t make an offer on a property or you cannot really make money at buying and selling houses or some other crazy negative thing.  That’s right – no more hurtful critical thoughts! Can you imagine?

I know it sounds like a great idea, but doesn’t seem to be very realistic at first glance. The good news is, it doesn’t have to be realistic, it just has to work, and it will, if you stick with a few basic principles. The key here is in the simplicity, and in keeping yourself accountable for sticking with the following principles.

My experience

This is a system I’ve been using for quite some time, and can testify to its merit. I decided that I was tired of being unhappy, and letting my own made up fears or even the real environment and the people around me control how I felt.

Be Selective In What You Think About

The wonderful thing about thoughts is that you genuinely own yours. No one else has power over what you think about. With this power, you are faced with a big choice that can impact your entire existence.

• Positive Thoughts. You can choose to think about goals, ambitions, people you love, beautiful scenery, and things you enjoy. This affects your physiology by making you stress free and healthier.
• Negative Thoughts. You can choose to think about death, disappointment, destruction and misery. It’s so stressful to think about how unfair life is, which causes your immune system to take a dip.

Ask Yourself The Important Question

Yes, a single question is powerful enough to change your thoughts. Just ask yourself: How do I want this to affect me?

When you ask yourself about what you want, you are able to take control. If being happy in the face of adversity is what you want, than you choose to let yourself be affected positively. You take negative situations, and treat them as a learning experience.

Instead of taking minor discomforts and turning them into major frustrations, let them affect you in a positive way. For example, you can turn a 48-hour commute into a learning experience.

Switch Channels

Treat your life as a television set, and when your thoughts project channels of unhappiness, hit the next button on your mental remote. Switch to something pleasant and stick to the happy networks.

Remember, you control whether your thoughts are positive or negative and with this choice you own your happiness – which  in affect makes you healthy, wealthy and wise.

Experts added by Alex Shalman

Originally posted 2009-12-17 01:00:35. Republished by Blog Post Promoter

In the spirit of Halloween, I’d like to ask you a question…

Are you afraid?… afraid to make the leap into this wild ride called – (Oooh, dare I say it?) …

Real Estate Investing…

Are you avoiding making an offer? Are you thinking you won’t have the money if you did make an offer and it was accepted? Or what if you can’t find a buyer?

Wow – so many things can go wrong!

Well, if you are afraid- you are not alone. I’d like you to read on to see if there is anything I can say to help you move along with that fear to find the success and happiness I have found both financially and personally from real estate investing.

You notice I said move WITH fear…not get rid of the fear. If you wait for the fear to go away – you may never move forward. A lot of us are afraid to try something we have not tried before. What divides those who actually succeed from those that don’t is this… successful people don’t let that fear stop them.

Grab this free gift designed to help you keep moving!

I am typing this article from my customized, comfortable home-office. I love being able to have the flexibility to do this stuff from wherever  I am at….and today I’m at home. I will be here when my 11 year old daughter gets home. I will give her a hug, make her snack, ask about her day and help her settle in to her plans – then head back to my office – right upstairs. (Or maybe I won’t?) I have the flexibility to do what I want to do. This time freedom is one of the biggest reasons I love real estate investing. The flexibility it gives me to be in another state or at home….and my business moves forward. I can do it from anywhere!

I’d like to ask you a question why do you think so many people read articles like this, get on teleconferences, pay a lot of money for trainings and attend seminars about real estate investing?

Answer…
Because we want to learn the safest, quickest, easiest way to make money!

Exactly!

So do you want to make A Little money or A lot of money?

Answer:
A lot of money!

Now – the big question…Why do YOU want to make money?

• To acquire wealth for our retirement (Can’t depend on SSI)
• To accumulate for our children’s education
• To obtain financial independence (Hopefully before retirement)
• To enjoy a more affluent lifestyle – bigger house, cool car, travel, etc
• To give back to others in need

Any one of these could be reasons for wanting to make more money…or maybe you have other reasons.

This is the most important step of all steps you take on your path to profitable real estate investing (or any new endeavor).  You must know your reasons (or your goals) in order to stay on this path called real estate investing!  When you know your “why” you are able to keep your “eye” on the goal as you are doing the stuff it takes to become a wealthy real estate entrepreneur.

If you aren’t clear on your “why”…stop right now and make a list of what you want. Why do you want to profit from real estate investing?

Let your mind go crazy – step out of your comfort zone. If money and time were not an option – what do you really want?

______________________________________________________________________

Write down a list of what you would “DO-BE-HAVE”… if you had more money!

Go Here to grab this form created by Mark Victor Hansen. It will help you to drill down on your reasons… stretch your mind to really dream about what you and those around you will gain when you make money through real estate investing.

Knowing your “why” is the launch pad for your success…  Click Here to grab this form.

Now, Imagine Making Offers for Real Estate with a crystal clear picture of your much anticipated and deserved profits.

Stay tuned for my next few blog posts showing you how….

Click Here to receive an RSS feed to have these posts sent to your reader directly.

Have a safe and happy Halloween Weekend!

Tamera Aragon
http://www.MassiveProfits4REI.com

Originally posted 2009-10-30 16:35:32. Republished by Blog Post Promoter