Why Investment Real Estate?

Why investment real estate? Now that is a great questions.

Isn't that plan just full of tenants, toilets, taxes, late night phone calls and dealing with other people's problems? Real estate can give some to all of those elements, but they're not all bad. Real estate investing is like any other business or investment. There is the right way to do it, than there is the way everyone else does it or tells you to.

I do realize that I fall into the category of how "everyone else does it or tells you to ". I own rental real estate, I consult numerous people on how to buy sell, run and tent real estate. Does that make me an export, perhaps? Does that make me perfect or my word gospel? No! And anyone saying that is after you cash. Smile, nod and run. Because when you are dealing with people there is no 1 way, which is why I strongly encourage you to work with a Realtor and or a mentoring group.

Real estate investing is unlike other investments for many reasons 1) housing is essential to life and 2) the amount of direct control you have over the investment 3) Tax benefits and there are lots more.

With binds, stocks, silver and gold, what control do you have other than to buy more or sell? I ask to make a point, but also to learn. With the rental property I manage, I have control over the improvements, capital improvements. Which tenant moves in and maintains the investment. I have the ability to meet or beat. I also have the option to match market rates or to match competition. The big take away is I decide, and if I'm not deciding I have direct access to those who do. I hold them accountable and according to the way things are set up, the decision maker can be removed if they don't perform as expected, to our liking or if they no longer have the property and its investor’s best interest at heart. To me that is control of an investment. Buy hey, what could I know I'm just, a real estate professional.

I won't rattle on about reason 1) housing being essential. To me that is self explanatory. If not a single section of a blog post can't clear that up.

Other than control, real estate as an invest offers up many tax benefits. Within the real estate investment the difference between bills and rent equals cash flow. Or if that phrase is scary to you, call it a dividend. If this was a standard type of investment you would have to pay tax on that income. I mean it is money that came in, right? If the IRS wants you to pay on prizes won at a radio station why wouldn't they want to tax that money? Well using the physical hard asset of the real estate you are able to depreciation and in essence write off that income.  They do want to tax you on it. But within the complex labyrinth of federal tax law, there are benefits and loops holes for landowners.

Why is that you ask? Many people in congress are landowners themselves. Since they right that laws that the whole world sings, those laws will be in the favor. Also putting those benefits in there make it so middle class people can invest like the rich. My wife is teacher and I work 2 jobs. We own rental real estate. But if we couldn't take those tax advantages, then I’m not sure if or where our tenant would be. Not saying our rent house is a palace, but the neighbors that walked it said we fixed it up nice.

There are tenant, toilet, taxes and all the negatives you hear about. There are also a lot of positives to real estate investing. Especially if you can connect with a mentor, Realtor or group with great ideas you can steal from.  Depending on how you buy and the region you live in. You can also achieve great gains on the cash invested. I have sold real estate investment properties where my clients have come out of pocket no money and that include rehab. Other times they have received 100 % return on their investment with one year between cash flow and unrealized equity.

Yes the real estate market does correct itself. I know investors who bought at the peak, and now they’re current market equity is lower than hoped. They still have cash flow coming in and home prices are on the rice again.  When we bought the market was near the bottom. Now it’s on its way back up and prices are rising, but they’re not a peak cost yet.

There is more up front work than buying a bond. However the benefits can last you and your kids  a lifetime.

Sincerely
Joe Nickels, Realtor
Lifestyles Realty, INC

These Robert Kiyosaki books are a great start

Rich Dad Poor Dad: What The Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!
Rich Dad's CASHFLOW Quadrant: Rich Dad's Guide to Financial Freedom
Rich Dad's Guide to Investing

And
Rich Dad's Conspiracy of the Rich: The 8 New Rules of Money

JNickels Realtor Twitter Feed

 Tweeted links for the week of October 26, 2012. 

Real Estate Marketing

Technology is ever growing, ever changing, ever evolving, just like your client base. The question of what is the best way to get your property out there is getting tougher to answer. Or is that just for the people asking for free consulting? It does appear that there are more and more options hitting the market. Many investors, landlords, renters and sellers are wondering what the best method is.

Home Prices are Going Up. So What's In it for Me?

Here is the good news to almost everyone ever. They are starting to build again and from most major sources the prices of houses are going up. Some areas are going up quicker and steadier than others, but they are heading upward. If you're a buyer now is the time when you can still get into a home an a lower price than normal, but not at the cheapest of cheap prices to ever cheap. That means that while you'll still be able to find deals out there, you'll have greater competition for the purchase of that house.

Tweet Links For the week of 2012-10-19

The way for rates to considered historically low.. Is to have higher rates normally.


"Mortgage Daily News: Mortgage Rates Higher Again Ahead Of High Risk Events"

New homes surged in September. This is good for both new and traditional home sales/ buyers.

 " Bloomberg: Housing Starts Jump 15% to Four-Year U.S. High: Economy"

Depending on your market The sun never stopped shining on the RE market.
Less Shadow inventor means brighter days ahead
" CBS Money Watch: Real estate ray of light: Shadow inventory declines"


To Purchase a
Flash Play for Android 
Click Here

You Do Have an Option... an Option Period That is.

When making large purchases there are many fears that can creep up and make it so a buyer can become to paralyzed..... to well buy. We've all had those thoughts " Am I over paying", " Will a newer better on come out next week",  " What if it doesn't work" and so on. Depending on the type of item there are laws set up to help protect the consumer.
For cars there are lemon laws. Many companies allow up to 30 days to return an item. Infomercial products love to offer a money back guarantee.Even P90X: The 90-Day Extreme Home Fitness Workout DVD Program has a 90 day money back guarantee. (At the time of this writing. Check with Beachbody.com to see if it's still  there)

Houses however do not have such time frames and test periods. So it can be very nerve racking. Well unless you rent a house or rent to own a house. You then have deep insider knowledge of that home and whether or not you'd like to own it.

6 Reason to Use a Realtor: If Your Selling: Part Two

* I'd like to apologize for the delay in posting this sequel. My newborn has not been at 100%.

With so many things being uncertain in the world today. Having the confidence to say "This is mine. I will do with it what I please", is important. When the time pleases you to move up, out or around. Many people feel they can do it quicker, better or at least cheaper than professionals. I for one believe that, and at times my belief system is correct. While other times I get it so wrong my wife receives a prize for answering correctly.

6 Reason to Use a Realtor: If Your Selling: Part One

In these tough economic times, everyone and I mean everyone is looking to save a little money. Cut a corner or two there, so they can keep a couple of dollars. If you haven't heard the housing market is coming back around. Slowly, which is actually much better than if it came back quickly.  However in some markets it's slower than others. This is causing many people to try and list there own homes. There are pros and cons to this. Today I'll be talking about 6 reasons why you should use a professional Realtor to list your house.