The rental boom in the real estate market
January 27, 2009
Within reason expert predict a boom in the rental market in 2009.The increasing number of foreclosures has forced home owner to now be renters. Most savvy Investors is now investing in rental properties. Aside from the tax benefit that rentals bring, this economy has indicators that show why renting will be the way to go. This blog discusses some of the indicators
Supply exceeds demand
With each new foreclosure, one more family has moved from owing to probably renting. The fact is that family will need a roof. True they could move in with family or friend but the higher likelihood is that they will rent. The slowdown of new homes not built also will result in the demand for rentals far outstripping the supply.
Renting is cheaper that owing
With the current economy renting may prove to be cheaper that owing. This is because rent does not include any interest, taxes or insurance that a loan payment bears. The cost maintaining a house is also expensive as prices of fixtures go up. This will result in many people renting.
Rental real estate has always been lucrative. Particularly due to the tax advantage and cash flow aspects However l think that this economy will impact the rental market positively. .
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How to Survive The Real Estate Downturn
January 24, 2009
The real estate market is in a downturn and the experts say it will get worse before it gets better. So as real estate investors how do we survive this period. This blog examines three ways that can help surviving this period.
Do not panic
This is because panic creates inertia a state where you do nothing about the situation. Remaining calm will help you focus on the situation. When you do not panic, you accept the situation at it is at this time and start to be open for alternatives.
Be informed
Be educated on the situation and what resources are out there. I believes the first thing is to understanding how we got where we are. This helps one avoid the same mistake. The library is a good resource which is free, the internet is another resource.
Think outside the box
In hard time you can not do what you have always been doing so. You may have to do something other than what you were use to. If you are selling lower your price to the lowest possible or give away gifts. Link with others doing the same and share the deals. Possibilities are endless and with an open mind you can came up with more solutions that will blow your mind away.
Advantages Of Networks In Real Estate
January 22, 2009
They are so many numerous gains in joining a network group in real estate. My emphasis is in real estate but l believes that all other different kinds of business can benefit from networking. Networks are usually a collection of people with similar interests to promote their business. This blog discusses some of the benefits that l have gained since joining. Our network group is called the Mokan group which is Missouri Kansas group.
The first deal l ever did was a result of this group. A lady whom we met often at the group came to me with information of a house that she was helping the owner sell. Because of the amount they were selling she would not be able to list it. I went and met the couple and we discussed the situation. Another lady who is now my business partner knew an investor who was investing in that area and we were able to sell this property and net $3000.
Being a regular at this meeting which we hold once a week one gets to meet other regulars and form a bond. This is a result of the common interest which in my case is real estate. This is how l came to meet with my partner and now we do more deals and have specials area that we can assign each other. This reduces duplication and improves on efficiency.
Some of our members are contractors, roofer, plumbers, real estate agents and tax professionals. This contacts helps in when a need arises. When l first joined my contractor had taken off with part payment and unfinished job. Using people from the group the work was done in less than three weeks. This people know that their name will be passed around the group if they do not perform. They also an understanding that payment is after work has been completed. This creates a win-win situation for both parties.
This group has provided an immense source of resources. By having various professionals in the group my answers is only a phone call away. I have learnt so much by joining this group and also made money. Other things that our group does is fundraising to help our community. This group has become very meaningful to me. I would strongly recommend anyone to join networks in their area.<–>
How To Use Affirmation In Setting Goals
January 21, 2009
The use of affirmations is said to significant increase the achievement of goals, this is because most of our decisions (almost 99%) are made by the subconscious. This arouses my interest as to how l can influence by subconscious to align with my goals. The answer was the use of affirmations.
Affirmations are positive thoughts and ideas about yourself and expectation of your future. They only work if you say them. Affirmation gives instructions to the subconscious as the subconscious mind does not have negative qualifiers like not and don’t. They are three elements to include in writing affirmations.
Affirmations need to be in present tense.
For instance’ I am creative’ or ‘Money is easy to acquire’ this lets the subconscious mind be open to ideas and opportunities that align to your goals. This also aligns like minded people who either provide you with opportunity or meet some of your goals.
Affirmations need to be positive
This means that you write what you want to accomplish not what you do not want to accomplish.
‘l meet qualified buyers’ and not ‘l do not want to meet unqualified buyers’.
Lastly Affirmations are specific
State exactly what you want. For instance ‘one of my affirmations was’ I have many good renters for my property After two weeks of saying this l now have three potential renters and am still getting calls.
One of my goals this year is to use affirmations to achieve my goals. I would encourage you to use affirmation and let me know your results.
Four ways on how to avoid foreclosure.
January 17, 2009
The number of foreclosures in the coming year are predicted to rise thus people need to be aware of how they can avoid foreclosure. The fact is that it can cost the bank much more to foreclose than renegotiate terms, which is what some banks are doing. They are options out there to help home owners. The government is also extending assistance hence the owners need to be informed and educated on this issue.
Stay in touch with the mortgage lender.
The most basic thing to do is not to ignore the problem as this only makes the problem worse. Mortgage lenders are willing to work with the mortgage owners so get in touch with your lender. Now with the government buying out bad loans they are options to help borrowers in these difficult times. This means that the borrower needs to open and respond to all mail from the lender. Communication with the banker is of utmost importance.
Understand your mortgage rights
Look for your loan documents and read them. The aim of reading the loan document is to find out what the lender may do if you can’t'makes payments. An understanding of the timeframe and foreclosure laws is of essence. This is because every state is different. A visit to the state government housing office may provide useful information. Another useful resource is the use of a HUD -approved housing counselor. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.
Beware of foreclosure recovery scams
They are companies out there who for a fee say they will represent you so be very cautious as you can get assistance for free. Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor. You may be signing the title to your property over and be a renter of your own property.
Make your house a priority.
Review your expenditure and look for an optional spending that you can do without such as cable TV, Memberships, entertainment. Look for assets like jewelry that can be sold for cash. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
Last but not least it is thus very important to know that they is a lot of help available to avoid foreclosure. The key is to be informed and educated to these resources. Focus on the solution and using this resource will hopeful avoid one from going through foreclosure.<-->
How To Measure Your Goals In life.
January 11, 2009
Most people by now have probably set their 2009 goals but how will they measure the achievement of these goals. Writing them down is obviously the first thing. One of the great personal development teachers Jim Rohn shares some thought on measuring the goals. As you reflect on your goals hope this article can help improve and achieve those goals this year.
I really like this acronym S.M.A.R.T., because we want to be smart when we set our goals. We want to intelligently decide what our goals will be so that we can actually accomplish them. We want to set the goals that our heart conceives, our minds believe and that our bodies will carry out. Let’s take a closer look at each of the components of S.M.A.R.T. goals:
Specific: Goals are no place to waffle. They are no place to be vague. Ambiguous goals produce ambiguous results. Incomplete goals produce incomplete futures.
Measurable: Always set goals that are measurable. I would say “specifically measurable” to take into account our principle of being specific as well.
Attainable: One of the detrimental things that many people do - and they do it with good intentions - is to set goals that are so high they are unattainable.
Realistic: The root word of realistic is “real.” A goal has to be something that we can reasonably make “real” or a “reality” in our lives. There are some goals that simply are not realistic. You have to be able to say, even if it is a tremendously stretching goal, that yes, indeed, it is entirely realistic — that you could make it. You may even have to say that it will take x, y, and z to do it, but if those happen, then it can be done. This is in no way to say it shouldn’t be a big goal, but it must be realistic.
Time: Every goal should have a time frame attached to it. I think that life itself is much more productive if there is a time frame connected to it. Could you imagine how much procrastination there would be on earth if people never died? We would never get “around to it.” We could always put it off. One of the powerful aspects of a great goal is that it has an end, a time in which you are shooting to accomplish it. You start working on it because you know there is an end. As time goes by you work on it because you don’t want to get behind. As it approaches, you work diligently because you want to meet the deadline. You may even have to break down a big goal into different parts of measurement and time frames. That is okay. Set smaller goals and work them out in their own time. A S.M.A.R.T. goal has a timeline.
Accountability (A contract with yourself or someone else). When someone knows what your goals are, they hold you accountable by asking you to “give an account” of where you are in the process of achieving that goal. Accountability puts some teeth into the process. If a goal is set and only one person knows it, does it really have any power? Many times, no. At the very least, it isn’t as powerful as if you have one or more other people who can hold you accountable to your goal.
Three Ways To Measure Your Online Marketing
January 10, 2009
It is important to have a measure of your online marketing efforts. I came across an article on the early to rise website that gave some ideas on the assessing the effectiveness of online marketing. This blog shares some of those ideas
1. Measuring effectiveness and efficiency through output
This can be done looking specifically at traffic sources, visits, unique visits, and visit percentages. Other areas to look at would be at referring sites and search engines.
2. Measures outcomes by behavioral changes
The way of measuring output by behavioral changes is at feedback from our customers… e-mails, phone calls, comments posted on your websites forum. Another area to look at is by searching the Web for keywords like the article title, and the product name to see if others were talking about it in chat rooms, external forums, and bulletin boards.
3. Measures business objectives/sales
This is by looking at direct sales of the product of the company. Orders generated from an e-mail link or ad link are coded for tracking, so attributing sales to those sources is definitive. If the sales come from a product page on our website where the true “source” cannot be tracked, I’d look at the sales during the corresponding dates of the campaign for correlations.
While this is not exhaustive l think it offers some parameter on online effectiveness of on-line marketing.< ><-->
Knowing When To Start InvestIng
January 9, 2009
Investing is investing is investing. What l mean by this is that whether in real estate or in the stock market the rules tend to be similar in certain aspects. For instance the gurus say that the time to buy stock is when it is on sale or when the stocks are cheap. The real estate gurus also say that the time to buy is when prices are low. Hence as far as price is concerned it is buy low sell high in both arenas.
The stock market tends to lead the economy. It heads lower before the economy does, and it tends to start heading higher before the economy recovers. So if you have your investment portfolio on the sidelines, you shouldn’t wait for the economy to turn higher before you start investing.
My advice is to start getting your money back into the market now. If you wait until the employment picture turns around, you will be late to the game.
Three Aspects Of Real Estate In 2009
January 7, 2009
They are certain aspects of the real estate market that show a more optimistic look in 2009. While all sectors of the have been affected certain indicators might help the real estate market.
1.Housing prices.
The houses prices have fallen about 21% and in certain areas 30%. For the real estate investors this lower prices do help stimulate buyer demand. In turn the buyers mop up the excess housing inventory.
2. The stimulus.
If successful they will be job creation and economic expansion. The resultant effect will be that cetain housing market will firm up quicker than expected. The stimulus will also aid in creating consumer confidence which will stimulate the economy.
3. Interest rates.
The recent interest rate reduction by the feds will help those who qualify refinance or buy starter homes. Programs such as the FHA are also assisting those with lower credit scores stay in their homes.
This aspects are worth taking in account as we head on the new year.<–>
Three Tips for Selling Houses In A Slow Real Estate Market
January 3, 2009
The real estate market may be slow but they are still buyers who are either looking for investment properties or their first home. With quiet a handful of houses in the market how does one still sell their house. They are still buyers of real estate so how does one attract these buyers. In this blog I will share three tips that are still effective
Price is Key
Be realistic your house value may be more than you can sell it for. The key is to find out how much similar houses in the area have sold for in the last six months. This will guide you in pricing your property in the current market prices. Once the property is priced right it will generate serious buyers .
Curb appeal and staging
Make a difference by having the curb appeal to buyer’s emotion. Furnish the house in a way that makes a home feel warm and welcoming. They are professional stagers who can furnish the house normally called staging a house. The goal is to let prospective buyers visualize themselves living in that house.
Rent with an option to buy
For those who are sticklers on their purchase price and do not need the money now, offer the house for rent with and option to buy. If this is done correctly the buyer stand a high chance of getting the price they wanted for the house.
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