Real Estate Investment Property - Getting The Best Capital Growth

If you are looking at real estate investment and want to get the best capital growth then you need to keep 2 main points in mind.

If you do you will maximise your return and limit your risk so, here are your two important tips for maximising your returns onreal estate investment property.

1. Property Price to Reward

When buying investment real estate property we all want a cheap deal, but keep in mind you need to balance the risk reward and this means buying property with the best risk to reward.

For example, you can take a risk and buy a property cheaply in an area that may do well in the future but you are better off buying in a position where you KNOW its going to do well. For example buy near:

1. Existing popular locations

2. Changes in the infrastructure coming such as roads, marinas, entertainment etc

You know the chances of popular area spreading out are high and you also know that changes in the infrastructure will see values rise. So buy on facts, not on what you hope might happen or what you think will happen

Act and buy real estate investment properites on SOLID facts not whims or opinions!

2. Buy Into a solid uptrend

When buying a market, buy one that has and is still producing good gains for the amount you spend.

For example buying investment real estate in the US has shown solid gains but the market overall is slowing down.

On the other hand there are new property hot spots overseas that realtors try and sell you that may take off. But will they? Sure but big variable here is the word "may" You can make more if the market does but most don't.

Look for a market with a track record of gains, rising investment and property prices that are fair value.

Costa Rica is a good example. A good solid up trend for years, rising investment and beach front property up to 70% less than in the US and only 3 hours away.

Will this trend continue? The answer is probably yes, as baby boomers look for new homes there are plenty of Americans in Costa Rica already and the demand Looks set to continue.

Many people when buying investment real estate property think that once a market has taken off they have missed the boat but this is not true.

Property trends can last for 20 or 30 years in some areas.

3. Get local help

If you are buying overseas real estate investment property, make sure you get a decent attorney so everything is done correctly and you are not caught out.

Remember laws in other countries are different and you should not assume their the same as in the US or your country of residence.

When you are buying investment real estate property follow the above three points and you will maximise the risk reward on your investment and enjoy some solid capital gains in the years ahead.

Commercial Real Estate Syndication: Property Selection and Purchase-Part 2

We've been discussing the process of assembling groups of investors for the purpose of acquiring income producing commercial real estate. To read the first part of this series, just go to the Investment Property Insider Blog whose URL is listed below and look for "Property Selection and Purchase, Part 1. We'll assume for the purposes of this article that you've selected your target investment property. Now you need to get it into escrow, but with a purchase structure that favors your group investment strategy.

The ideal time period for a group investment purchase is 120 days. This time period breaks down as follows:

Days 1 to 30: Focus on completing your Due Diligence (investigation) on the property, clearing contingencies, and verifying everything stated by the seller.

Day 31 to 45: Here is where you create the Investment Circular and form the LLC that will own the property, by filing the Articles of Organization and the Operating Agreement.

Days 46 to 90: Now you can solicit interest from potential investors. Your goal will be to get completed subscription agreements and monetary contributions from the new members of the LLC by the end of this period.

Days 91 to 120: This is basically a contingency period for you in the event the subscription process takes longer than expected.

As a matter of strategy, you should consider the 90th day as the "make or break" of your group investment. It is very likely that you won't be able to keep the escrow open longer than 90 days without putting your deposit at risk (called "going hard"). So, if it looks like you can't fully fund your LLC by the 90th day, it's probably best to unwind the escrow and get your deposit back ... sooner, if possible.

In fact, you'll probably have quite a bit of pressure to release your deposit sooner than 90 days. What to do? Well, as you continue with your group investment program, you'll want to line up your investors sooner than indicated above. Realistically, you'll want to give your "A-list" of investor candidates notice as soon as you take a property to escrow.

Speaking of escrow, when you open it, you want to write the purchase contract with you, the syndicator, as the borrower. This is for tax reasons. By doing so, you establish your ownership of the property rights. It is by assigning these rights to the LLC before you close that you establish your ownership percentage (whatever you negotiate with your investors) in the property.

To be perfectly safe, you should consider opening two escrows. The first one is for the purchase of the property, as described above. The second is set up to fund the LLC. Its sole purpose is to hold the funds from the members as they subscribe into the group investment. Once it's fully subscribed and the purchase escrow is ready to close, funds are transferred from the "funding" escrow to the purchase escrow. The reason to have the second escrow is to protect the investors' funds in the event there are complications with the purchase escrow. The seller's permission would not be required to release the investors' funds back to them with this structure.

Another option is the "receipt of third party deposit." In this process, investors fund their contributions directly to the purchase escrow, but they do so under certain conditions which allow the escrow officer to return the funds in the event the purchase doesn't close. The LLC (after assignment by the syndicator) and the seller are the parties to the transaction. The investors are third parties whose funds are disbursed according to separate instructions. Check with your escrow provider to see if they will allow third party receipts before opening escrow.

In my next article on this subject, I'll cover the strategies you need to consider to control a property for a sufficiently long period of time to allow you to actually fund as a group investment.

Real Estate and Condos - A Practical Overview for Individuals

With more real estate opportunities opening up in Asia, it's easy to see why investors are shifting their attention to cities like Manila. Real estate in this region is an exciting and profitable venture for prepared investors. If you are eager to take on this business idea, here are some questions and answers to guide you.

What is real estate in Manila like?

Manila real estate is a thriving business. Consider that prime business hubs such as Pasig, Taguig, and Makati have multiple housing and commercial district plans currently under construction.

You may be wondering why mention Pasig and Makati when all you know is you want something in Manila. To set the record straight, Manila is a common reference point when discussing a large area called Metro Manila. Manila is a city within this region. It also has many commercial areas, but the currently developing areas are in Pasig, Makati, and Taguig.

Many local financial analysts are excited with these places because developments look promising. Commercial and residential areas are nearer each other and this creates more trade interactions. These areas are bound to produce business opportunities for interested investors and employment for locals.

Are real estate prices in Manila reasonable?

Manila real estate prices are definitely worth every penny. Investing in a property near business districts can open you to endless income opportunities. Many buyers will be interested in it and you can sell it easily to the highest bidder.

For instance, you can lease it to employees who need living arrangements closer to their workplace. Monthly rentals could be a stable revenue source that needs only periodical maintenance work on your end. If the property is in a prime commercial slot, you can lease it to companies or consider opening your own business.

What property should I buy?

Multiple properties are available including houses and condominiums. Among these choices, however, Manila condos are more practical if you are a foreigner looking to establish a residence here.

Philippine laws prohibit foreign nationals from owning lands. If you buy a house, you buy the structure, not the land it stands on. You cannot give away the land or have a family member inherit it given that the government could deem the transfer illegal.

A condominium is more practical because foreigners can enjoy its amenities and services to the fullest. Many Manila condos today are under pre-selling schemes. Real estate developers offer the condos to interested buyers before they begin the construction process. Later, buyers could live in these residences or sell the property at higher prices. The strategy is like paying dimes on the dollar for the condominium as you buy at a low cost and sell at a high cost to rake in revenue.

If pre-selling sounds too risky, you can always invest in condominiums. Lesser risks are involved in this venture as the structures are already in place. You can move in anytime after paying a certain percentage of the condo price or choose to sell what you bought.

If you have yet to make up your mind about Manila condos or any other property, do not be upset. Maybe you just need to have more information and time to decide. Consult local real estate brokers to get a better idea on what investments fit your style and budget.

Residential Real Estate and Its Importance of the Whole Economy

Residential real estate is one of the viable investment opportunities that are driving the US economy forward. A good number of US citizens have always desired to realize the much celebrated American dream by engaging in property investment. While several individuals have succeeded in owning a home, others are still in the process.

Residential investment vehicles gives investors the opportunity to purchase or sell all kinds of homes such as apartments, condominiums, terraced houses, cooperative houses, duplexes, and so on. Such investment opportunities are always available in many of the states. Buying and selling of such homes are always ongoing in various cities located in the US.

All over the US, there are agencies and individual agents helping people to invest in the residential real estate business. There are also various online real estate listing services that help home sellers to advertise their properties. A good number of US citizens get involved in the residential real estate business on regular basis. This has continued to help the US economy in diverse ways.

The Important of Residential Housing on the US Economy
Ever since the days economic recession which sparked off during the September 2008 financial crisis, the residential real estate has continued to remained one of the most viable tools that still drive the US economy forward. Since the recession ended in 2001, it has also been the primary driver of the US economy. Lots of cash returns have always been realized for the US economy through the residential real estate business. The bulk of the money comes from property taxes which most home owners pay yearly to the government in order to protect their properties.

The residential housing business has also generated lots of employment opportunities for the US citizens. Many young guys are now making ends meet by working as agents in their various cities. Many contractors, land surveyors, loan officers and others have also emerged. They have a lot to do in the residential real estate business. In most cases, they help home buyers to realize their dream while the US economy continues to boost in the process.

Housing for US citizens, it has continued to play an integral role in the US economy. The more several houses are provided, the higher the property tax multiplies. This ensures regular flow of income in the US economy.

There's also a growing interest of non US citizens in the housing business in the US. Several investors from other countries of the world are given enough room to purchase all kinds of homes in various states. This in turn drives the US economy forward.

Indeed, the future still holds a lot for the US economy. The residential market is actually booming. More good reports are also in the pipeline. The US economy will continue to grow higher as the real estate market thrives. The economy is still reluctant to have increase in housing values, as the property foreclosures inventory is still high.

Cocoa Beach Real Estate and Rental Property

The number of ground units other than condos for sale is less than 300. Home buyers seem to think that every unit is or should be for sale at distressed prices. This is not the reality of the Cocoa Beach Real Estate market. Cocoa Beach is located about one hour away from Orlando Florida. The low prices of even the recent past market have all but disappeared. The prices of condos have reached bottom several months ago and sales in those price points are not happening. Real estate prices are not expected to head back in that direction and home buyers should realize that the prices of today may be as good as they will get for a long time.

The number of condominium units for sale in June 2012 was 280 and this number was down from 560 units in June of 2010. The number of distressed condo sales in June 2012 is 55 percent and that is significant.

All of the numbers are more favorable than 2010 and are not anywhere near the highs of 2010. They indicate that while closing prices are rising a bit in a few places, the low inventory indicates that the law of supply and demand is at work. Distressed property listings are not a force in the market as they once were.

Developer foreclosures have all but dried up. This is due to the performance of today's economy and is not restricted to Central Florida.

The Cocoa Beach FL Rental Property is very competitive where it is allowed. Many condos have deed restrictions prohibiting rentals and communities. The people seeking rental property are far greater in number than in previous years. For those who have previously purchased a condo in the Cocoa Beach area at an even better price may find it attractive to rent. Owning a Cocoa Beach FL Rental Property can make the cost of ownership higher than expected do to today's economy. There are still many great deals to be found if you take the time to look around. The fees and the storm insurance can be outrageously priced which means that obtaining a positive cash flow in a competitive market will not be easy.

For those considering buying a condo or single family home in the Cocoa Beach Real Estate market now is the time. You may pay more than you would have six months or a year ago. In time the economy will rebound and the property you purchase today will be a worthwhile investment for you and your family.

Investing in Real Estate and Becoming a Landlord

Real estate is no longer just about finding your dream home it is now one of the most popular investment vehicles that is used by individuals. The market of real estate has a huge amount of opportunities that individuals can take advantage of in order to see a big profit, but the process of purchasing and owning real estate is much more complicated than the process of investing in stocks and bonds.

Investing in real estate is one of the oldest practices that there is. Individuals will purchase a piece of property and allow tenants to rent it out. The owner of the property is the one who has to pay the mortgage, taxes, and maintenance cost, which is covered by the rent that the tenants are required to pay. Some landlords set the price of the rent at an amount that allows them to maintain the property and gain a small profit. More commonly landlords will only set the rent at an amount that allows them to pay all of the bills associated with the property and will not be interested in also obtaining that monthly profit. They exercise patience until the mortgage on the property has been completely paid off which enables most of the rent from then on to be profit for them. A lot of times property will appreciate which will result in the landlord being left with a piece of property that is more valuable than it was when originally acquired.

Dealing with renting out property is not always easy some individuals are unfortunate and end up dealing with undesirable tenants who damage their property or they may not be able to obtain any tenants at all. If either one of these situations occurs real estate investors will be left with a monthly cash flow that is negative which could make it difficult for them to make their mortgage payments. It is important that investors choose property that is located in an area where the vacancy rates are low which means individuals actually want to rent property in that location.

One of the main differences present between rental properties and other types of investments is how much time an individual has to invest in the maintenance of the property. When an individual invests in rental properties there are a lot of other responsibilities that come along with this decision of becoming a landlord. If you find that you do not enjoy having to perform handyman work on your property you could probably get a professional property manager to take over the property for you if you offer them a good price.

For individuals who are interested in purchasing rental properties, but do not want to have to deal with the duties that are associated with being a landlord they may want to look into real estate investment groups. This could just be the perfect solution to their dilemma. Companies that purchase or build sets of apartments or condos will turn around and let investors purchase them through their company which will enable them to become members of the group. The company that is responsible for managing the investment group will be responsible for managing all of the units such as advertisement of available units and maintenance, but the individual investors are able to own as many units as they want. The company receives a percentage of the monthly rent earned from the units in exchange for them managing the properties.

Real Estate and Condos in Pattaya Thailand

Thailand is a wonderful place to live. It has many beautiful beaches, mountains and parks to explore. If you are tired of the hustle bustle of the city, you can move to Pattaya. Before you can move to Pattaya, you need to purchase a condominium or nice property. Even if you don't plan to stay in Pattaya permanently, you can invest in a real estate property. In this way, whenever you come to Thailand for a holiday, you can stay in your own property. You don't have to check in to the local hotel and pay for the hotel room fee.

Pattaya has very limited high quality housing so the properties costs are relatively high. If you want to quickly search for suitable property you can take advantage of the online real estate agents and search via Google. Many online real estate agents have a search tool with large database of properties in Pattaya. You will be able to find the condo or house you want within a few minutes. If you need help in locating a Pattaya real estate property you can hire a local agent. The local property agent is familiar with the real estate properties available in Pattaya so he is able to give you good recommendations and cheap price. It is important that you tell the agent about your needs so that he can find a nice property that matches with your criteria. In addition you must tell the real estate agent your budget. When determining your budget you should take into considerations several factors including type of property, number of rooms, and size of property.

Under the law of Thailand, foreigners can purchase and own condominiums. Usually the condominium will have a 49% non-Thai ownership and 51% Thai ownership. There are two types of properties foreigners can own including freehold and leasehold properties. When shopping for the real estate property, the foreigners need to bring in funds into Thailand. The funds can be purchased through their local bank in foreign currency. After purchasing the funds in foreign currency, the foreign buyers must transfer it the bank account of the Thai developers. Upon receipt of the funds, the foreign buyer will receive the Foreign Exchange Certificate. The Foreign Exchange Certificate is known as Thor Tor 3 or T.T.T.3 form. The certificate proves that the holder of the account has deposited the sum of money to the local Thai developer account in foreign currency. Every major banks based in Thailand have the rights to issue the T.T.T. 3 form.

Foreigners who possess permitted residences in Thailand have the rights to buy condominiums according to the Investment Promotion Act (IPA). The permission for permanent residence is issued by the Board of Investment in Thailand. When purchasing a freehold property, the foreigner must present the passport. The foreigner also must present the certificate that is issued by the Board of Investment in Thailand. Once the quote of foreign ownership is met the foreigner will have an option to own the property.