Due Diligence and Overseas Property Investment

brazil investment propertyMost property investors that have been active over the last few years have probably considered looking overseas in their quest for decent investment opportunities. I myself have, on countless occasions, looked into overseas property but most of the time find myself put off by what seems a very difficult and long winded process. One angle I do love the idea of is buying an overseas investment property in an area where you would enjoy holidaying but also getting the added bonus of good capital growth.

I know there are plenty of overseas opportunities out there which give you 30 days free use a year, but how strong are these as investment opportunities and should you be governed by this or not?

I think the first thing to look into is what you expect to gain out of overseas property investment?

  • Medium to long term capital growth
  • Rental Yield
  • Buy to sell opportunity
  • An investment to holiday in as well

Now if your overall aim is to make money from this overseas investment then you should probably take it that if you can get an element of “free holiday” a year it will be a bonus. As far as looking into the individual overseas investment opportunities available I will not go into specific countries now. Continue reading Due Diligence and Overseas Property Investment

Buy to Let Affordability

Buy to let has been a thriving investment product for quite a few years now, the fact that many would be purchasers cannot afford to get on to the property ladder has made sure that there is always enough demand for rental property.

Now with the increase in interest rates and the decline of many buy to let mortgages numerous investors have stopped investing in buy to let and are instead looking at other avenues like overseas, flip sales and re-possessed property.

Does this mean the end for buy to let investment? Well let’s look at the factors. The first thing you learn about in any Business Course is the simple principle of demand and supply.

Less Supply + More Demand = Increase in Prices.

More Supply + Less Demand = Decrease in Prices.

So how can we be talking about the decline of Buy to Let if demand is so high, has supply really outweighed demand?

I do not think it is as simple as that, true, there is high demand for property at the moment, and true, this has driven prices up in the last few years. This in turn has led to many properties being priced out of potential purchasers price ranges. Continue reading Buy to Let Affordability

Buy Undervalued Las Vegas Real Estate at PropertyHookup.com

las vegas discount real estateReal estate inventory has increased and prices have dropped in several areas across the nation one of which is Las Vegas, Nevada. Several years ago this sin city was a hot area for real estate investors who boasted property increases of ridiculous numbers like 50% in a year. Those days are far gone and now many property owners are having to foreclose because they can’t make their mortgage payments.

I was actually one of those real estate investors who purchased a single family home during the boom and rented it out for two years before having to sell at a small loss. I honestly was lucky to sell (my house was on the market for 4 months) and only did primarily because I offered seller financing. The person who ended up buying my house had poor credit and couldn’t qualify for a loan which gave me a distinct advantage over the dozens of other houses on the market. Not only that, but I had a great realtor by the name of Geri Martucci at Keller Williams who helped me market the property using many different channels and methods. Continue reading Buy Undervalued Las Vegas Real Estate at PropertyHookup.com

7 Basic Steps To Aquire a Foreclosure Once You Find a Property – Step #1

Step #1 – Look at the Property

Foreclosure signLet’s assume you found a property from one of the foreclosure sites I mentioned in my previous post “How to Find Foreclosures – Where Do I Start?” or in a legal notice from your newspaper. You’re excited with the information you read about the property and you’re ready to start doing additional research. At this point it’s a good idea to go look at the property before you spend any of your time processing the legal work. Until you do that, you don’t even know what the neighborhood looks like, the condition the property is in, and if it’s vacant or not. If you don’t know these simple things about the property, you’ll never know how risky of an investment it could or could not be.

What happens if the legal description or foreclosure notice you read doesn’t list the physical address? You have a couple options like contacting the title company and asking them to lookup the street address, calling the attorney that’s managing the foreclosure, or go down to the courthouse and look it up. Once you get the address, you can continue reading below.

Once you arrive at the property you’re only able to in most cases, view the outside of the home. You really need to see the inside if you are to properly make a decision and this is always extremely difficult because it’s not like an open house. There are several options here and it really depends on your judgment and comfort to be able to have a peek inside. Your options are to walk up the steps and knock on the door and see if anybody is home, if the house looks vacant or abandoned maybe take a quick walk around the property and peek through any windows without disturbing the neighbors, or just walk away and look for a different property. Now I’m not suggesting you trespass nor illegally enter a property and that’s why I said use your judgment. If it’s nighttime and you’ve got a flashlight it’s probably not a good idea to wander around the property unless you want the local authorities coming by to meet you.

Let’s say you were able to see the property and got a nice glimpse of the inside. You felt it’s a good prospect to bid on. Your next step is determining what it will appraise for. I’d recommend you hire an appraiser, realtor, or another investor who has more experience to help you pin down an approximate price on what it will appraise for. There’s a good chance depending on if you were able to get a glimpse of the inside in the previous step, that the appraiser will not be able to look at the inside and only give you a rough appraisal based on what he or she can see on the outside. Of course, there are exceptions, and you might not be too disappointed if you trust just the condition of the outside.

Stay tuned for step #2 – Contacting the Trustee

6 Tips For Flipping A House

flip ugly houseThe first two tips for flipping a house are not about what to fix or change. They’re about time and money. Specifically, they are about how time costs money, and about how to determine how much to pay for your “flipper” in the first place. Read these first two carefully then, to make sure that you do this right.

1. Know Your Numbers

How much will the house sell for when it is ready? A clear idea of the ARV (after repair value) is necessary to safely make an offer on a property. Don’t just guess that you’ll sell the home for $20,000 more than what you put into it. You don’t decide what a home is worth – the market does, so get advice if necessary. Then subtract from the ARV all possible costs you will have, including price, buying costs, repair costs, holding costs, and the costs of selling. Now subtract the profit you want, and you have the highest price you should pay. Start with an offer lower than this, of course. Continue reading 6 Tips For Flipping A House

When Will the Housing Market Finally Hit the Bottom?

The housing market is just getting worse. Home resales tumbled 8% in September to the lowest levels in this decade, prompting the obvious question: When will it all end?

The honest answer is no one knows. Optimists have been saying for more than a year that the worst is behind us, while the pessimists have been saying recovery is still a year, or years, away.

So far, the pessimists have been right about the weakness in the housing market, but their forecast that the collapse in housing would lead to a general economic malaise has, at least so far, failed to pan out. The economy has slowed, but has not fallen into recession, as consumers and investors adjust to a world in which home prices don’t automatically rise 5% or 10% a year. Continue reading When Will the Housing Market Finally Hit the Bottom?

Housing Slump May Persist For at Least Another Year

This article posted on the Real Estate Journal today talked about how the real estate slump could continue for a while.

The Mortgage Bankers Association predicts the housing recession will last until the end of the third quarter next year. And if confidence isn’t restored in the credit markets, the wait could extend until 2009, the group’s chief economist said.

In the meantime, the slowdown in housing has become a primary cause in the slowing of the national economy, said Doug Duncan, chief economist of the group.

“Tough times,” he said, after sharing the group’s loan production estimates during a briefing with reporters on Tuesday. Tough times indeed.

On Wednesday morning, Duncan is scheduled to deliver the MBA’s economic forecast to its members at the group’s annual convention. The forecast calls for home sales to bottom out in the third quarter of next year and for housing starts to hit their bottom slightly earlier, in the second quarter.

Existing-home sales for 2007 will total 5.72 million units, a 12% decline over 2006 sales, he said. Sales will decline another 10% in 2008, before picking up by 5% in 2009. Continue reading Housing Slump May Persist For at Least Another Year

A Real Estate Investment Alternative

Prosper LendersIf you’re like me, you’re trying to figure out the best way to take advantage of the high inventory real estate foreclosure market but you’re a little cautious. You’ve got some cash sitting in your bank account earning a respectable 5% interest but you’d really like to buy some property. The only problem is you don’t know how much worse this market is going to get or when it’s going to recover. So what do you do?

One alternative is joining an online lending community where people can borrow and lend money essentially bypassing the banks thus getting better rates. You’d be the lender and sites like Prosper.com (aff) and Lendingclub.com would help you build diversified portfolios based on lender preferences. They speak of returns anywhere from 9% to 14% all depending on the amount of risk you decide to take. Here’s an example (aff) of how it works. Lendingclub also has a blog which has some good financial articles.

I think it’s a pretty good idea if you’re looking for a higher return and want a place to park your money until the real estate market settles down. I have signed up for a prosper.com account and started browsing the borrowers but have not yet loaned any money out. If you’ve used either one of these sites before, please let me know how it’s worked out for you.

Can You Get Started In Real Estate With $50,000?

Flip Real EstateA few weeks ago I received an email from a gentleman by the name of John. He seems to be a bright guy around my age and was looking for some advice on how to invest in real estate with $50,000. He wanted to get involved with flipping houses and already had one successful flip with a net gain of $55,000.

I love getting these sort of emails and thought I’d share our conversation with you since he’s not the only one looking to do this. Here’s his email to me: Continue reading Can You Get Started In Real Estate With $50,000?

Important Tips To Keep In Mind Prior To Investing In Real Estate

real estate tipsA smart investor’s earning potential is really high, as a Real Estate property only appreciates with the passage of time. With the booming Real Estate markets, the youngsters have actually started looking at Real Estate investments as great options to secure their future. There is nothing wiser than buying a flat at a young age, when your liabilities are low, and then selling it at peak at double its purchase price. To reap benefits, you need to however sow smart. As in, there is a lot of groundwork involved in finalizing a property and investing in it.

Invest smart
You need to study the Real Estate market well before finalizing the property in which you want to invest. The key areas where you should focus are: condition of the house, locality in which the house is located, prevailing rentals in that particular area, infrastructure of the area in terms of availability of recreational, health, and transport facilities in the area. Resale value of a house located in a developed area is huge; hence, prefer buying a flat in a developed locality. Continue reading Important Tips To Keep In Mind Prior To Investing In Real Estate