Between Real Estate and Reality Or Between Realty and Reality

You hit the ground running hoping to sprint your way to the finish line. You may have gotten winded with the realization that real estate investing is a marathon and not a 50 yard dash. Or you may have tripped over the start line coming out of the gate. Either way, your investing career is going nowhere fast. You've got a full time job that's getting in the way of your big plans. Being a full time real estate investor is closer than you think. Here's how to work around your full time job and build towards a better tomorrow - today.

First, change the way you look at your 9 to 5 job. Think of the paycheck you earn as a consulting fee - income for your real estate investing business. It covers your basic needs while providing you with some of the cash you need to keep the doors of You, Inc. open for business. When your consulting day is over you simply move into the next phase of your day: prospecting for new business opportunities.

Every day I want you to do something to drive your investing career forward. So set aside a block of time for these activities. If all you can spare is 90 minutes per day, make the best use you can of the time you have available. Look through some of your on-line resources to quickly locate properties that meet your investing criteria and then follow through. Don't make a list and call it a day.

If you systematically do small things that move you in the direction of making a property purchase, you will succeed. You can and will make that first - or fiftieth - property purchase, regardless of your employment situation. It will take some planning on your part to make it happen. But, you also need to find a good way of motivating yourself to take action.

When you pulled the trigger and fired on a new real estate investing career, your eyes were glazed over with child-like wonder at the possibilities that real estate investing gives you. Don't be afraid to admit it. You had a target in mind when you pulled the trigger. You had a tangible goal of some kind or you never would have taken that first step.

Every one of us had - and probably still does have - a dream we're working towards. It might be to donate $1 million to fight AIDS in Africa, to build a Little League ballpark with your name on it, or even something less altruistic: A desire to get very rich. Real estate investing is still the best vehicle for achieving your dreams. Whatever they are, I want you to capture the essence of those dreams; a photograph or something that symbolizes what you can do with the fruits of your labor to create a vivid daily reminder of your goal.

Place that reminder in a conspicuous place - on a bathroom mirror or a counter top - as a daily reminder of what you want to do with some of your real estate investing proceeds. If it's too large for a mirror, take a picture of it. This is an important step because it will help to motivate and reinvigorate you when you begin losing your focus. Look at it several times a day beginning first thing in the morning.

Your dreams - whatever they are - provide the fuel you need to take action on those days you'd rather just be a channel-surfing couch potato. You will achieve your dreams, but you may need additional ammunition in your arsenal to make it happen. In addition to having a dream you should:

- Set specific goals for yourself - These goals should be specific, quantifiable and attainable. Instead of having a goal that says, "I want to be rich within five years." you should put a firm number on it. "Within five years I'm going to own 15 properties with a monthly cash flow of $15,000 (or whatever figure you set).

- Create a vision - On a daily basis look at the symbol of your dream. If it's a picture, carefully look at it - really LOOK at it - and declare your commitment to achieving your dreams.

- Believe in yourself and your abilities - It's sometimes easy to listen to naysayers and negative people. Avoid these people like the plague. They're like a cancer that will eat away at your dreams if you let them. Don't allow it to happen. You can achieve your dreams and your goals if you believe it can happen and you take action.

One final point: If you're waiting for a telegram from destiny telling you that it's time to step up and make it happen, this is it. Your success is waiting for you. No day will be absolutely perfect. Today is better than yesterday because yesterday is dead and gone. Tomorrow hasn't yet been born. By living in the magic of the moment you can seize your real estate investing destiny, lay claim to your future, and begin the process of consigning your 9 to 5 job to the annals of history.

Real estate investing is kind of like the lottery. You've got to get in it to win it and you can't really get into it sitting on your couch thinking about how you're going to spend the money when you finally get up and get started.

So go ahead.

Put the remote on the coffee table and take the first step.

Real Estate - Distressed Property Terms

With the volatility in the real estate market, an entirely new terminology has been thrown into the already complex process of buying real property. These terms have been used within the industry for quite some time but were not commonplace until recently. The definitions below will assist the home buyer in understanding this new vocabulary.

Bank Owned Homes - The bank or lender foreclosed on the property through a Trustee Sale and now has full ownership of the home. In essence, foreclosure, bank owned homes, and Real Estate Owned (REO) are synonymous with one another.

Foreclosure - A foreclosure is a legal proceeding in which the Mortgage Company (Bank or Lender) terminates their relationship with the homeowner after the homeowner has defaulted on the original terms of the Deed of Trust. The ownership of the home then reverts back to the Mortgage Company. In Arizona real estate, this is known as a non-judicial foreclosure. Once the property is owned by the Mortgage Company, they will attempt to sell the home or parcel of land in the future. The term foreclosure is also referred to as Real Estate Owned (REO) homes or Bank Owned homes.

Loan Modification - The lender, bank, or Mortgage Company who holds the note on the loan agrees to modify the original terms of the loan. An example might be a reduction of the interest rate or changing the length of the loan from 30 years to 40 years. One of the main requirements to qualify for a loan modification is to prove to the lender you have a "hardship". If the lender agrees to modify the loan, they seldom will reduce the principal balance of the original note.

Pre-Foreclosure - A pre-foreclosure occurs when the homeowner is at least 90 days late on their mortgage payment and have been given a Notice of Default by their Mortgage Company. This creates a window of time for the homeowner to bring the loan current, successfully complete a short sale, or have the home sold at a Trustee Sale. The Trustee Sale is an auction typically conducted on the courthouse steps.

Short Sale - In Real Estate, a short sale home is one where the homeowner owes more than the property is currently worth. The homeowner could have one, two, or even three mortgages on the home. The seller or homeowner must make arrangements with their Mortgage Company or companies to accept less than what is owed on the property if the seller decides to sell.

Trustee Sale - A Trustee Sale is an auction open to the public. It is held by the trustee, who acts as a third party on behalf of the lender. The lender is also known as the beneficiary. The lender prepares a credit bid, also referred to as the opening bid. Trustee Sales occur several times throughout any given day. They have specific restrictions and rules that must be followed to the letter of the law, to avoid legal ramifications set forth by the trustee.

The terms and definitions above are the most frequently used when purchasing distressed real estate in today's market. As the real estate market continues to evolve, we are certain to see additional language added in the future.

Real Estate and the New Series LLC

There is a national trend developing. Today, more LLCs are being formed in the USA than corporations.

Necessity, it is said, is the mother of invention. Given the simplicity, protection and flexibility of the Limited Liability Company ('LLC'), some states have begun to adopt the new 'Series' form of LLC. Starting 10 years ago with the concept of 'cell' captive insurance companies used offshore, the states of Delaware, Nevada, Oklahoma, Iowa, and now Illinois have embraced the new 'Series' LLC. It may be very well-suited for certain types of business and investment holdings -- such as multiple income-producing real estate, aircraft leasing, container vessels such as tankers and cargo ships, franchise business enterprises (i.e. multiple fast food stores), trucking and transportation fleets, and companies having operating divisions that need to enhance the liability shield to better protect one portion of the business activity from another.

THE CONCEPT MAKES SENSE.

Use of multiple LLCs for property owners is a conservative and safe way to go. However, instead of registering a traditional LLC, forming a new 'Series LLC' may be a smarter way to go for real estate investors. The concept is simple. It's based on the model of the Cell Captive Insurance Company used in other countries.

Even though one LLC 'mother ship' entity is formed, each separate cell within it (called a series) can be separately accounted for, and each can own assets and operate as a separate business enterprise. The idea behind the legislation is that the liability of one cell does not infect the others so long as guidelines are followed.

So now, instead of using land trusts or numerous traditional LLCs, a less expensive option may be to hold several rentals or fix-and-flip properties in one Series LLC -giving each cell within it a separate business designation, i.e. 'Valley Properties LLC Series I or Series II or Series III' or 'Valley Properties LLC Series A or Series B or Series C' for example. This simplifies formation and reduces legal and tax costs, since only one registration is made with the state and one single consolidated tax return is prepared. To keep the paperwork clean, each series will need to separately identify itself as distinct from the others in all business and tenant transactions -- including lease and rental agreements, deposits, bank accounts etc. in the name of that particular series as opposed to the 'mother ship' LLC or any of the other series. Of course, it will need to register as a 'foreign' company in any other state in which it holds properties - but only once.

WORKING THE NUMBERS.

Real Estate investors 'work the numbers' every day. Acquiring an investment property, doing fix-up, advertising and insuring the property, attracting stable tenants, maximizing the tax advantages and working the cash-flow management are all part of how you build a portfolio of income-producing real estate. To save costs, rather than paying for multiple 'traditional' LLCs, consolidating through a single 'Series' LLC can offer significant cost savings.

Let's consider one case example. If an investor has 20 properties and uses the new Series LLC, even if the franchise tax is applied the savings in multiple entity formation costs and tax preparation may be significant. The difference could be better spent on acquiring more income-producing rental properties and marketing for new paying customers, don't you think?

WHAT ELSE TO CONSIDER?

o The Illinois-type Land Trust (sometimes called the 'Real Estate Privacy Trust') is effective for protecting privacy and avoiding probate, but it is not a liability shield. It is only a 'privacy mask'. Some real estate investors in the past have used multiple real estate privacy trusts built around LLCs to save franchise tax fees but now that the Series LLC has arrived, that practice will fade away as did the 8-track tape and the Beta video system. With the Series LLC you can have privacy and protection in one entity.

o Using the Series LLC won't make sense if there are a large number of un-related parties - because the flow-through considerations might be quite a burden to your accountant. After all, simplicity is what's behind the new Series LLC. Real estate investors will want to take advantage of the Series LLC as a preferred form of property ownership, particularly where the LLC members are single owners, married couples, maybe a family trust or a family limited partnership.

o After your Series LLC is registered and the Members have signed the Operating Agreement, be sure to then sign separate 'Series Agreements' for each cell they choose to use. All future transactions should reflect that particular series' name so that you reinforce the 'separate' quality of each of the series units or 'cells'. As long as the revenue and expenses are separately accounted for (perhaps using Quicken® or QuickBooks®) and one single consolidated tax return is prepared, the fact that multiple properties are under the umbrella of one 'mother ship' (sub-designated as Series One, Series Two, etc.) it makes it easy to track revenues, costs, tenants, fees, property taxes and profits of each Series.

WHERE SHOULD I FORM MY SERIES LLC? About seven (7) states so far have adopted the Series LLC. However, four (4) other states have adopted legislation which strictly limits creditors of LLCs to a 'sole legal remedy' known as the 'charging order' (a passive lien on distributions). However, of all the 50 states only Nevada has done both. Once your new LLC has been formed, if you're going to use it in another state, simply register it as a 'foreign' (out-of-state) company with that secretary of state's office. Once it is registered to do business, we can show you the smart way to guard your liability risks and lawfully manage your tax costs so that you have more to put into your retirement accounts for the future.

Afterwards, in your business transactions, be sure to have each individual Series clearly distinguished from the others. Treat it as a separate business. Consider having each series use separate brokers, separate lenders, and maybe different banks just to make it clear they are separate. Rental agreements and all other paperwork will need to reflect the series designator so that it's clear the tenant is not doing business with the LLC 'mother ship' but rather with one particular Series as a distinct business enterprise.

LOOKING AT THE 'BIG PICTURE'.

Forming an LLC to hold investment property is a positive step in the right direction. However, it's one step. Keep the 'big picture' in mind: what are you trying to accomplish by investing in real estate in the first place? You're trying to build - and preserve - secure wealth that gives you cash flow and a future for your loved ones. Keep in mind that each property you acquire is part of a building process that is dynamic. You are using a system to find, acquire and finance each property. Use the tools that empower you and don't be overwhelmed by the small details that can sidetrack you if you let them. Use professionals for tax preparation, property acquisition and finance, and keeping adding to your portfolio with focus and discipline. Use professional advisors as a support system but remember they work for you so that you can enjoy what you do best -- acquiring more income producing real estate.

Devonport Development Plymouth, Devon - Real Estate and Property Investment

Many people may be wondering if England is still a healthy and vibrant place in terms of property and real estate investment. If England is still highly investable and can still offer good returns on investment in the future, then you will more than likely be wondering where the best investments can be found. Have you heard about the English partnerships redevelopments projects? Read on.

Certain areas of England, as I am sure you are aware, are in need of regeneration, and some more than others. This is where the National Regeneration Agency comes into play. This organisation who to work in partnership with the government, get involved in regenerating areas such as the former Sideway Colliery in Stoke-on-Trent (pumping £8 million pounds into the area in a project which will be finished by 2010). The group are also involved with the massive Devonport Development in Plymouth. The group are heavily involved with regenerating the South Yard Enclave on the Devonport Dockyard, into a housing development with affordable housing. The plan is to build more than 500 homes and to build a health centre, some shops and some office spaces. It is strange to think that the South Yard enclave will become a housing area, when ones thinks of the thousands of people who used to work in this high security MOD area in the past. Since the 1970s, with the decline in the numbers of people in the British forces, has meant that Devonport Dockyard has dramatically declined as a thriving place of business.

The Devonport regeneration is a part of what the government call their 'Neighbourhood Renewal Strategy'. This strategy combines affordable housing and employment opportunities for local people. The reality is in fact that people from outside of Plymouth are investing in Plymouth. From an investors point of view it is all very interesting particularly what is happening in Plymouth. A huge new shopping mall has been built at Drake Circus (a monstrosity some may say perhaps) and many investors from outside of the Plymouth area have been buying up property and real estate. Some projects in Plymouth have been receiving EU funding, in addition to the regeneration agency funding. The university has continued to expand in size and many student bars and pubs, and also many new outdoor cafes etc have been created. Valeria Lo Iacono, an Italian resident of Plymouth reports that "(Plymouth) is changing fast and it is an interesting place to be, although worryingly, prices for Plymouth residents are rising too fast".

For investors though, Plymouth is worth looking at. When you consider all of the money being pumped into the area, the growth of the university the regeneration of certain areas, it becomes clear that the city is definitely undergoing a facelift. After being neglected for 20 years and going downhill, it is visible noticeable when I return to Plymouth every year, how it is changing. Plymouth Argyle's stadium has been modernised, new baseball pitch and facilities in Central Park, the new shopping mall, European style outdoor cafes in the city centre. The city is clearly changing. Is it worth investing in? I plan to.

4 Tips For Succeeding in Real Estate and Getting the Best Deals Possible

When starting out in real estate investing, it can be tough. Whether you're selling your home or a property that you bought to sell, the process can be both daunting and exciting. However, marketing a home that doesn't sell at all isn't fun, so it's important that you do your homework to make sure that you know as much as possible about selling your home fast.

In this article, we will look at some tips that will help you to sell your home as quickly as possible. All of these tips work if you follow them, but if you don't, you will find that you have a home that's on the market for 30 days or more. Let's get right into it with tip number one:

1) Learn as much as possible

You don't have to go to college or real estate school to learn everything about real estate. You can simply use readily available free tools that will allow you to educate yourself on the matter. You should take advantage of the internet and the library to find books and articles on real estate investing, just so that you can learn everything.

When listing your home for sale, do proper market research. Stay on top of the market and see how much homes in your area are selling for. This will give you a great idea for how much you should be selling your home for. You can also employ the use of real estate agents to help out in your journey of selling your home. Here's tip number 2:

2) Get your financing right

A lot of beginners start off by getting the property first, and then getting their financing right - this is the wrong order. You should start off by getting your financing first, then go and search for your property. You should go to either a bank or a lending company and tell them how much you're looking forward to invest.

When you do so, they will require some information about you. To come up with how much they'll be willing to give you, they'll need your income and credit history to come up with the right ballpark figure.

3) Get your property

Now after you've gotten your financing, it's time to go and get your financing. But you should be cautious when doing so because finding real estate deals can be a little daunting if you've never done it before. You want to look for foreclosures, homes that say "for sale by owner" or even for rent properties.

4) Talk price

Now that you gotten your piece of real estate property, it's time to talk business. You want to negotiate the best possible price for it. Don't expect that you'll get it for a steal. Most sellers are looking to get the best money for their property as possible, so you will have to be flexible. You want a win-win situation for everyone, so be proactive, but don't be greedy. You never want to miss out on a deal just because you wanted a lower price than the seller was willing to give.

Use these 4 tips to get the best property as possible. They will be sure to come in handy when you do so. Good luck.

Real Estate And Tax Lien Certificates

Real estate in the same breath as tax lien certificates are not a big deal to most people, but to a savvy investor they can resemble $$.

Lets take that bad word named "tax" and turn it into lien certificate holder and the owner of this lien certificate will have a big smile on his face. He may not tell you why as not many investors share their guarded secret of investing.

Real Estate And Tax Lien Certificates is one of the safest types of investments you can make with generally a good above average of return. It is not hard to invest in certificates and if you are in the know how they are usually quite profitable; however investing blindly without sound solid advice can cost you money.

For example buy a tax certificate without research on commercial property for $500 and find out it is next to a pig farm your choices for that property use becomes severely limited and selling it might be a hard proposition.

So how do you know if investing in real estate and certificates is a wise decision?

A lien is levied against a property owner who has not paid his taxes on time by the government against the non-payer's property until he pays his bill.

This lien (if sales are allowed in that sate) should be make public and give the opportunity for investors to bid on tax certificates. When you bid and become owner of the certificate you have agreed to pay the taxes for the non-payer that did not pay them and in return you have won the right to collect the delinquent non-payers taxes that he owes plus a surcharge in the form of an inflated interest fee for the non-payer not paying his bill on time, mind you this does not give you rights to anyone's property. This fee is an interest rate which depending on the state could up to 18%, now that's a high interest rate any investor would love. The rate could be lower but it can also be even higher. This late penalty fee is an incentive to taxpayers to pay their taxes on time and the reason investors buy certificates.

Now the good part, nothing is guaranteed in life but buying lien certificates might be the closest thing that is and here's why. If the property owner after a certain length of time still has not paid his back taxes the government will auction off his property to get their money, what does this have to do with you the owner of tax lien certificate? No one wants to lose their property outright so 98% of the delinquent non-payers pay their late bill, so you not only get your investment back you get the interest penalty the delinquent non-payer paid to settle his debt.

I bet you are starting to see the incredible opportunity investing in real estate and tax lien investing has to offer.

Investing in Real Estate and Making Profits From it During the Good Times - But What Now?

During the good times, we hear of people striking it rich and earning huge big profits from real estate investment. In fact, going into property was one of the in-things and getting real estate leads were not in the least difficult. In fact, real estate investment was known as one of the biggest income earner for a lot of savvy investors. However, now times are really bad. People are losing their jobs. Income is plunging. Property prices are plunging. Affordability is also plunging. Even as these go down, bad debts increased. Many houses were repossessed due to unpaid mortgages. People were left literally homeless as their financiers swoop in and take their homes to reclaim the monies they owed.

Many naysayers are warning investors to be smart and to stay away from risky investments including the real estate industry where plunging prices and less affordability teamed together would mean less buyers. Although there are sellers aplenty, there is really no point amassing the properties when you can sell any of the properties now. Then all your funds will be tied to the properties and you can't use it for other uses. While there are other property investors who thinks they can still make a profit from real estate by buying the properties cheap and then waiting for the housing industry to recover, you can only do this if you have the extra funds that you do not need.

Of course, you could always purchase properties cheap due to the plunging market conditions now and then rent it out for some monthly income. To go into the buy-to-let industry, you will need a different set of skills and conditions. You will need to check the suitability of the property and the area so that you will be able to find tenants easily. Most importantly, you will need to know if there are a lot of demand for rented properties in the area before purchasing the property or else it would be a total waste of time and money. Just imagine purchasing a property with the intention to earn monthly income by renting it out and you later find out that there is no market for it. Or that there is no demand for rented properties in the area. Or that the area is simply too far from amenities like public transportation for people to consider staying there. Or that it is just too far from the business district or any schools. Whatever the reasons, it is always best to do a market research before buying a property with the intention to buy-to-let.

Even when you make a property investment with the intention to rent it out, you will need to get good real estate leads and in such a market conditions as now, it may not be easy at all. So, you will also need to work doubly hard to get tenants for your property so that you could make monthly profits from real estate. The global recession has caused the real estate investment business to plunge so it is always wise to be careful when investing in property.