Comet Settlement Real Estate

Miami Preconstruction Real Estate investing is buying properties prior to their construction. For example, a condo that will be built in 2 years, you can put a small deposit to hold the condo and capture the appreciation during the 2 years, which is the time it takes for the condo to be built.

Why is Miami Preconstruction investing attractive to investors?
No carrying costs during the 2 years till the condo is built. There is no mortgage, no taxes, and no expenses at all. Most of all, you do not need to manage tenants which can be a concern for Real Estateinvestors. Also, you do not need to qualify for mortgage. So, regardless of your credit history, developers will sell you a unit.

How to calculate your return on Miami Preconstruction Real Estate investing?
If the condo for example priced at $500K, typically, in the Miami market, developer would require 20% deposit. 10% at contract time and additional 10% when construction begins. So, your total out of pocket deposit would be 100K which 20% of 500K.

Miami Real Estate market has been appreciating over %25 annually. However, for this example, let’s assume Miami Real Estate will appreciate 20% annually. By the end of the first year, this condo that has not been built yet would have already appreciated from $500K to $600K. Which means you have made $100K on your investing of $100K. That 100% return in one year. In other words, you could double your capital every year.

How to buy Miami Preconstruction ?
Be aware to these facts: Developers are NOT Mutual Fund Managers in the business of making you money. They are business people in the business of building real estate. They understand the Real Estate market and they make the most profit by selling for the highest price. This is the myth that could cause investors not making the right decision.

So, do your own research, the Internet can be a great aid in finding initial information. After doing some initial research, find a good realtor that understands the market and Preconstruction to help you evaluate the options you have available.

If you’re contacting the developer directly, you could be taking a gamble since the sales staff has no loyalty to you to disclose vital information, they work for the developer. Go with a knowledgeable local realtor to represent you. You can find realtors to provide this free service. They are paid commission by the developer and your price is the same.

What Miami Preconstruction investing do you choose?
Waterfront Real Estate is the safest investing possible. Tens of thousands are moving to Miami area every month and most asking for waterfront or oceanfront real estate. They are willing to pay a good premium to enjoy the life style. There is a lot more details that cannot be covered here.

Bubble or Not?
Miami Preconstruction and Miami Real Estate has been very rewarding to its investors. If you’re looking for long term investing, this is a great vehicle for good ROI with little effort. “Be selective”, Not every developer and every project is well analyzed and priced right. Like many financial markets, Miami Preconstruction and Miami Real Estate are controlled by greed and fear, the primal emotions that drive the markets.

Interest rates might not have great impact on Miami Real Estate since Miami is an international market with buyers from around the globe. International buyers are enjoying the extended buying power from the weak US dollar and heavily investing their cash in Miami Real Estatemarkets. Florida has very flexible rules towards foreign nationals buying Miami and Florida real estate. Also, we are seeing buyers from markets such as California and New York that are aggressively buying Miami Real Estate and oceanfront properties.

Savvy and long term investors will do well. Risk management is the key to survival in financial markets and that includes Miami Preconstruction Real Estate investing.

Andrew James, Miami Preconstruction realtor and investor
Direct 786-326-7776
info@MiamiNewConstructionGuide.com
http://www.MiamiNewConstructionGuide.com

Andrew James is a full-time realtor and investor in Miami real estate and preconstruction. He is the founder of http://www.MiamiNewConstructionGuide.com, site dedicated to miami preconstruction investors

[tags]Miami real estate, miami preconstruction, miami preconstruction real estate, real estate investing[/tags]

Tags: miami preconstruction, miami preconstruction real estate, Miami real estate, real estate investing

Let’s call him John. A bright and hard worker just trading time for dollars at his regular job. His first house flipping experience could have been a lot better.

John was watching “Property Ladder” on the A&E network one day and got the bright idea to flip a house himself. After all, those people were making money. A complimentary show “Flip This House” confirmed that money could be made, lots of money.

If you haven’t seen Property Ladder, it’s a television show that features first time home flippers. Usually in that show the inexperienced flipper, egged on by Kirsten Kemp, make almost a year’s salary or more by fixing up an old house and selling it. Kirsten Kemp is a veteran of flipping houses and is a bit too pretty to be mistaken for Bob Vila.

John figures that the people featured in these shows are not all that bright and certainly he could do as well. With a bit of nervousness John put a 10% down payment on a home that needed repairs and begin the repair process. Or did he?

The first thing John did was to ponder what really needed to be fixed and if he needed a contractor to do it. Two weeks went by.

After getting several bids, John chose a contractor to come in and totally renovate the property for $11,000. That included paint, carpet, appliances, and a new wall to turn an open area into another bedroom. Once it was agreed, the contactor was to start working. As luck would have it, the contractor had some unfinished jobs and couldn’t start for another two weeks. John was patient, after all it was going to be a great flip and he was going to make money. It was just another $800 for an extra month, no big deal.

Once the contractor started he stared with a bang. Just like on the show “Flip this House” a big yellow dumpster was deposited on the lawn and a crew started ripping out wall paper and junk from the house. That demolition lasted about two days.

The next thing this “go getter” contractor did was to disappear for another two weeks. The excuse: Men had quit and another job was pushing them behind.

To make a long story short, the contract took 8 months to get nearly complete, and then John pulled the plug and fired the contractor.

John paid others to come in a finish what was started. He had now 9 months of house payments into the project, 10% down, and construction costs.

After the house was ready, John listed it with an agent, and it sat another month. John lowered the price a bit with the prompting of the agent, but got cold feet after two weeks and wanted to raise it again. Too late! The house had a full price offer. Good news, sort of.

All said and done John made a little money and got a whole lot of experience. It was a flop, but at least he didn’t lose money.

Let’s review what John, now wiser, could have done differently on his first flip.

Firstly, putting 10% is ok, but not ideal. John should have used private money or have financed the property at 100%. That money could have been used for fix up rather than being tied up in the property.

Second. John waited too long to decide what he was going to do. He should have known before he bought the property what his plan was. This would have saved two weeks at least.

Third. While John got a referral for the contractor, he should have gotten more bids. A deadline for the completion of the job, with penalties, should have been written in the contract.

Fourth. John waited too long to fire the contractor once he knew there was a problem. He was afraid that he would still owe the full amount if he terminated the contractor before the work was done. A proper contract would have prevented that fear.

Sixth. John listed with a realtor too early. The property should have been for sale by owner from day one and John should have tried to market the property himself.

Seventh. The price was set, and then changed too quickly. Better marketing would have netted John with a nicer profit. John should have known the selling price even before buying the property.

A lot of mistakes were made, but John still made a slim profit. All is well that ends well, but you don’t need to make these same mistakes. Learn from John.

Scott Ames is publisher of BirdDogCity.com a website dedicated to those interested in flipping houses for profit, either retail or wholesale. You may visit the site at http://www.birddogcity.com

[tags]Real Estate, flip houses, flipping, real estate investment, investing[/tags]

Tags: flip houses, flipping, investing, real estate, real estate investment

They’re sold on late-night TV, hawked at seminars, they sell in books, and, admit it, you’ve wondered about them–those programs that tell you that you can make a fortune investing in real estate with no money down. Is it true? The answer is, yes, but….

If you can find an undervalued property, use somebody else’s money, or do a sub2 deal (check your glossary at the website if you’re unsure about that term), it’s relatively easy. Undervalued properties are somewhat hard to come by in these overvalued days in most areas, unless you’re ready to do some serious rehab work or have a keen insight into market trends in a specific area.

And, most lenders want you vested in the deal with some significant cash–understandably. Why should they take all the risk? At the very least, they’ll want you to be able to show that you can maintain the property until it turns around or that you can turn it over quickly and profitably (which usually means selling it to somebody willing to pay a premium because of less-than-great credit).

BUT, don’t let this discourage you. Instead, let it sharpen your insight as to what makes for a good deal, understand how lenders view them, and think creatively about financing so that a good deal can be had by all. Here’s one way.

Find a motivated seller, and line up a partner who’s seeking a good return. Form an LLC with the buyer. Have the LLC buy the property at a discount from the market rate in your partner’s (the buyer’s) name–it’s his money, after all. Next, run a “for sale by owner” ad, stating that “poor or no credit is okay.” Your phone will ring. They’ll pay more to get in, but they’ll have to be able to pull together a decent (10% or more) down payment and have a solid job. Your investor partner gets that cash to get his investment back. Then, sell the property to the new buyer and split the monthly cash flow with your partner.

You can repeat this process a few times and have a significant monthly cash flow, all with no cash from your pocket. Your contribution will have been putting the deals together. So, yes, “no money down” can still work, if the right people are in the picture. Keep your eyes open for possibilities, your contact list current, and your ambition level high, and you can do it.

Future articles will cover a couple of additional strategies.

Lynn Stonebraker has been profiting from real estate since 1987. Get free weekly training in her newsletter, available at Real Estate Info.

[tags]real estate, real estate investing, no money down real estate[/tags]

Tags: no money down real estate, real estate, real estate investing

Two very common questions asked by many real estate entrepreneurs are:

1: How can I get involved in real estate when I don’t have any money to invest? And
2: How can I invest in real estate when I don’t have time or an interest in management, repairs, maintenance or mowing the lawn?

Well, I hope by positioning these items side by side that the wheels are now turning inside your head. You should immediately recognize that while these may be opposite positions, but they are completely complimentary. It is very common for a person to have both sufficient available capital and a real desire to build a real estate portfolio, but they simply don’t have either the time or the desire to devote to maintain the management and operation of a property. The flip side of that coin is also very common. Just about everywhere you look are people who have the time, willingness, talent and desire to be in the real estate business, but they just don’t have the available capital.

Simply put, there is available an obvious marriage of convenience between these parties. Like all relationships, a person should choose their partner(s) wisely, but when a companion is found, a world of opportunity, progress and achievement is laid before you.

I can point out numerous highly successful real estate entrepreneurs who started out with only time and now have money. Likewise I can identify those who started out with money, and now have much more of it. While some people see having either time or money without the other as a hindrance to building wealth in real estate, it can be the perfect jumping off point for an exciting and profitable journey in property ownership.

One of the most exciting aspects of this potential is how easy it is to find a counterpart. If you have either time or money, it is simply a matter of letting people know that you are willing to invest what you have, to help a partner get what they want. My first transaction was with a partner. He put up the money ($5,000) and I put up the time and effort. The rest, as they say, is history.

If you are one of the many people excited about this business, but needs the right partner to make it happen, here’s what to do:

1. Make sure you identify what you have to contribute; i.e., exactly how much time or what amount of money you are willing to invest.

2. Make sure you understand the real estate business sufficiently to safeguard your intended investment, whether that investment be in time or money.

3. Advertise for a partner. Simple want ads will work great, but word of mouth will bring you comparable results. Just start letting people know. Every person with which you share your desire will bring you much closer to finding the perfect partner. I guarantee that you’ll be surprised at how fast you’ll find a match.

When building any real estate business, you must begin with what you have; desire, time, skill, or money. Whatever you have to bring to the table, it is valuable and necessary for success. So if you’re wanting to get going, keep going, or build bigger; consider joining up with a partner (or partners) that have what you don’t, but need what you do.

Spread the word, and then build the wealth.

Roger Beattie is a real estate broker, investor, and manager. He has been invovled in hundreds of millions of dollars of real estate transactions. He is also the creator of Middle Class Millionaires (http://www.middleclassmillionaires.com), a course that teaches real estate investment and management.

[tags]Real Estate, Real Estate Management, Investment, partner, start[/tags]

Tags: Investment, partner, real estate, Real Estate Management, start