How to Buy and Manage Rental Properties by Mike Milin (Paperback – Revised) Top Offers

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Rental Properties – 6 Quick and Easy Ways To Buy Them

Investing in real estate is a wise solution to avoid the nightmares of inflation and the many acts of deceit that our economy is subject to. Though we see an abundant increase in population, the number of prospective habitual opportunities will always be the same and is the sole reason for the skyrocketing costs in real estate. Rental properties are goldmines for any real estate investor, considering that there are literally millions of tenants who will readily accept a furnished accommodation with all the perks, rather than going through the hassle of buying and enhancing their own land. There are six things to keep in mind, before you invest in rental properties, which will help you foresee an unrivaled investment.

Setting realistic goals: In order to determine how to market your property to reach full potential, you need to have a concrete plan in place, which will ensure that you meet and exceed your expectations. An example of this would be to redeem your property for a quick turnaround or add to your list of consistent streams of income.

Affordability: There should be no surprises whatsoever, when buying rental properties and this includes property maintenance costs, rents in the area and the depreciation rate of tenants. Being a handyman will decrease your repair costs by 5-10% and this only applies to brand new properties.

The value of a real estate wholesaler: Although the end decision of buying the property is yours, a real estate wholesaler can truly make the process all the more profitable, by rendering his expertise and familiarizing you with the best neighborhoods to invest in. There is no doubt that you’ve decided on how much you want to fork out for a real estate property, but a real estate wholesaler can ensure that you are getting the best deal, by bringing to you the best available discounted properties.

Pre-approved loan: Before you shop for a rental property, it is best to get yourself appraised to what you’re worth, which can only be accomplished with a pre-approved loan in place. This will help you manage your finances in an efficient manner, knowing what the down payment is going is going to cost you and how much your financial institution is willing to grant you as a loan.

Shopping for rental properties: As part of your shopping experience, evaluate and gather as much information as possible, including the cost of repairs, location and the value you can redeem it for. Make sure that that all your discrepancies are catered to, before you make any commitments.

Bargain and seal the deal: Now that you’re well acquainted with the real estate domain, it’s time to bargain and seal the deal. There are many costs involved in closing a real estate deal and the seller may be willing to succumb to most of them or share them with you. It is best to get the property inspected by a professional in order to avoid any surprises, even if you’re simply buying a fixer-upper.

These six ways are surely going to assist you in acquiring rental properties that are the most beneficial and profitable for years to come and doing your homework is the key to an enviable real estate portfolio.

Question by Bill N: Landlord’s Furniture in a Cash for Keys deal in CA.?
My landlords got foreclosed on and the real estate broker offered me a cash for keys deal. It indicates that I need to have the house broom clean, free of all debris, trash, and personal property. My rental came partial furnished however and I don’t want most of my landlords furnishings. The real estate broker said that I am still legally responsible for the removal of this property even though the deal says “personal property” specifically. I have contacted the landlord in an attempt to have them get their property but to no avail. I have been searching for laws on this issue but I can’t find out if the Realtor is right or not. So am I responsible for my landlord’s furnishings as well?

Thanks!

Best answer:

Answer by know-it-all
Not sure what cash for keys means, but is sounds like the agent is trying to get you to do his work. If it is not your property ( the furnishings) you could have the landlord come back on you for theft. I would leave it clean, but take only your belongings.

Add your own answer in the comments!

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Investment in Real Estate: Rental Properties are Awesome Deals

A good investment in real estate is a rental property. These are residential “for rent” properties like houses for families, apartments or even dormitories for students. Do you know that these properties can be even better than your pension plans or retirement plans?

One of the main reasons why people enter the real estate investing business is to have a steady cash flow. Owning a rental property offers financial security to investors. Imagine having a monthly salary without doing anything. This is why more and more people are now getting properties that can be a great source of income and can give them the chance to have an early retirement that they want.

Let’s say you have a six-unit apartment. Each unit gives you ,500 a month. That is a total of ,000 income every month. You can sit the whole day, read books or watch your favorite show. That is the best thing about investment in real estate like rental properties. It gives you another opportunity of earning money without the pressure of everyday office work. You can have more time for yourself and for your family.

If you are planning for an early retirement, having a rental property can provide you so much more than your monthly pension. This is like a lifetime investment. When you keep and maintain the property, you can even hand it down to your son or daughter in the future. They too can start with their own real estate investing venture.

So how do you start looking for a really good rental property? If you lack the funding to buy your property, you can start processing hard money loan. Hard money lenders want real estate projects like apartments or for rent homes because they know that it is profitable. You can get the financing you need in no time because you really have an awesome deal.

You can also look for tired landlords. These are owners of rental properties who are tired of hassles tenants are causing them. These owners want to dispose their property immediately. It’s the best time for you to make an offer to buy their property. You can expect big discounts on their properties. They want to sell ASAP so don’t lose that opportunity. Make that awesome investment in real estate possible.

REIWired.com gives you more real estate updates. If you want to start investing in real estate, visit us now.

How to Nail Your First Income Property Transaction

As a residential agent, you overcome the largest hurdle and are well on your way to closing your first income property deal once you make the decision to sell multifamily property: The desire to sell more than houses is foremost.

In this article, I’ll show you four things you must now do that will help you seize every opportunity, perhaps avoid missed opportunities, and maybe bypass months (perhaps years) of trial and error before you close and subsequently collect your first rental property sales commission. It’s not exhaustive (there are other factors, of course). Nonetheless, if heeded, they are guaranteed to get you started on the right foot.

1. Learn some basic terms and formulas. After numerous years of assisting residential real estate agents frantic for rental property advice, I strongly recommend that you understand just two real-estate-investing-related terms (and/or formulas) in the beginning. Comprehension of other terms and formulas can wait and follow later.

The APOD

An APOD is a report that shows the income, expense, and cash flow of an investment property for the future first year of the property’s operation. It’s an assumption because it’s based upon current property data subject to change; but it does provide a good “snapshot” of property performance during the first year of ownership. APOD is an acronym for Annual Property Operating Data (in case you’re wondering).

Cap Rate

Understanding how cap rate (or capitalization rate) is calculated is likewise paramount to working with rental income property. You will start hearing the term and seeing the return used almost the instant you start working with investment real estate. I’ll forego the textbook definition and cut to the chase: Here’s the calculation (memorize it):

Net Operating Income (NOI) divided by Sale Price = Cap Rate

2. Learn the typical cap rates for you local market. Conduct your own comparative market study.

Dig through your local MLS to determine what capitalization rates income-producing properties are listed and/or sold. This calculation is commonly included in rental property listings and if not, make the calculation yourself (you only need the property’s net operating income and sale price). If the listing doesn’t show the NOI then derive one by computing the gross income less about 45% for vacancy allowance and operating expenses. If gross income data isn’t provided, you can either call the listing agent or simply decide to move on to the next property.

Ask a real estate appraiser. Call around until you find someone who appraises income property and ask about typical cap rates for multifamily and commercial properties in your area. Appraisers are an excellent resource for local market conditions. While you’re at it, be sure to subscribe to their newsletter if they provide one: Sometimes they include surveys and other income property data you will find useful.

Ask a real estate professional. If you know an agent that specializes in multifamily and commercial properties, buy him or her a coffee and start a discussion. If they are truly active with multifamily property and you know them well enough, you should get lots of good information about your area’s rental property activity and capitalization rates.

3. Invest in real estate software. Yes, it sounds like a shameless plug for my real estate investment software, but not so (honest). Having sold income property for nearly twenty years, I can attest that quality cash flow presentations got me listings, sales, and real estate investor customers time and again. Truly, you would be wise to invest in real estate software (some software) that enables you to create real estate analysis and marketing presentations. Consider it a way to develop your real estate investing knowledge and at the same time as a tool to advance your income property business.

4. Let others know you work with rental property. Once you master steps 1-3, call your residential customers and alert your colleagues. You might be surprised how quickly you benefit having them know about your interest and commitment to investment real estate. It regularly prompts existing customers to discuss real estate investing opportunities more openly and colleagues to give you multifamily referrals. It’s not magic, but the steps above will put you ahead of the pack in most offices and therefore the traction to move on the fast track toward your first income property deal.

Here’s to your success.

NCR has emerged as one of the most preferred destinations as far as real estate investments are concerned. Property market in NCR has seen its capital values appreciated by around 40 per cent. Indeed, selected sectors in Noida, one of the prime locations in the NCR, have even doubled in the value over that period.

Needless to mention, commercial properties in Noida are zooming upwards on the back of fast upcoming multi-national companies in the region. Most of these companies prefer to take the land on lease, which has given a boost to property rental market in Noida.

With big companies shifting out of the inner city areas because of the lack of space and infrastructure facilities, residential relocation too followed. This resulted into a mass migration to suburbs such as Gurgaon and Noida, thereby propelling residential property prices here.

The scenario brought golden prospects for builders who made a beeline to come up with their real estate projects in Gurgaon, Noida, and other parts of the NCR.

Also, a short supply of properties in Delhi served as a blessing in disguise for NCR real estate market. Likewise, Gurgaon is better known as Delhi’s fastest growing suburb, where the properties zoomed 50 per cent in just the last one year.

Real estate Gurgaon is all prepared to reach sky-high levels. Earlier, Gurgaon properties were believed to a part of an unorganized market dominated by local players. However, the things have changed for good now. The sector is increasingly being considered to be fuelled by famous property developers and managed by professionals.

Today, Gurgaon property market is in fact leading the development process in other parts of the country. What was once known to be a sleepy town on the suburbs of Delhi has now become a national and global business hub.

Many ordinary people have already made a killing by investing in realty. They were probably very apprehensive about buying the first investment home, but as long as that goes well, it is easy to get hooked! In case you keep mulling it over and wonder about the risks, here is a starter kit of very basic pondering points.

There are certain pointers that should be adhered to if you want your investment to be trouble free. These apply to selecting the property to buy, financing it and renting it out.

You may think that the profit has all been made in the property market. While property has risen considerably in price in the last few years, it is not too late to make money in the realty market. One theory is that the baby boomers will keep pushing the price up in certain areas. Why is that, you may ask?

Well, baby boomers (so called because their births coincide with the end of the war when all the service personnel were de-mobbed; following their homecoming, a slew of babies were born) are all coming up to retirement. At the moment the oldest baby boomer is only 61, so there still a few years to go before the main ‘rush’ to retirement.

While it is true that some retirees opt to stay in the same town that they have worked in, many do not. A large majority of retirees have similar dreams about retirement and large numbers move to a new location. They move to be with family, or to be near the sea, a lake, away from the snow (or toward the snow!), away from the damp, to have a view etc. Retirees also often ‘downsize’ and move into a smaller home.

Now we have two clues about investing: a choice location, or one with a view and a smaller property, so an investor may want to think about buying only a modest sized property. Leave your emotions at home and do not buy because of a ‘cutesy’ kitchen; think only of the numbers. If you buy near a hospital, college or University, you will find it easier to rent.

With regard to financing, quite often your prime home can provide the equity for a new mortgage. The rent should cover the mortgage payment, so you may need a good size down payment. Go to your bank or mortgage broker with your own personal financial facts before you start looking. Find out if the idea is financially feasible, check repayment costs and get pre-approved. All this is a free service and you can simply discard the whole idea if you are getting cold feet.

One of the golden rules when investing in real estate is to think about the rental situation before you start looking at property. This side of it is important, after all, it is the way in which the house pays for itself. The first question is: are you going to use a manager or attend to it yourself? If you plan to look after it yourself, you will be wise to buy in your own town – but not in your own neighborhood.

The reason for this is that monthly inspections, or even the possibility of them, can go along way toward keeping your house in good order. Not only does the tenant have to clean it and cut the grass once a month, but you will also have the opportunity to inspect for leaks in roof, appliances, drainage in the basement/foundation etc. Your tenant is less likely to accumulate old cars in the yard if you visit every month.

This brings me to the final pointer: a contract must contain definite guidelines indicating the code of behavior you require from your tenants. It must say ‘cut the grass once a month’ or ‘empty all garbage once a week’ or ‘no subletting’ . It must also say ‘inspections may be carried out once a month upon 24 hours notice’ . These clauses will mean it will be easy for you to evict the ‘tenants from hell’. Taking references, including those from the previous landlord, will probably help you to avoid these people anyway.

Now, you can sit back and wait for the retirement rush to force up the prices in the property market. While you are waiting you can analyze what it feels like to be an investment property owner.

Just as with selling any other product in the world, real estate is bought and sold at “wholesale” prices each and every day. Real estate wholesale buying generally happens between two real estate investors. One investor finds the property and then sells it to another investor who is interested in rehabilitation of the property for sale or as a long-term rental. In this process the first investor generally never really takes possession of the property and makes money only on the transaction itself.

People often wonder about real estate wholesale buying and selling in a down real estate market. Is it a good time to do it? Is it a bad time to do it? The answer is that in order to buy real estate wholesale you need to be able to put together a good, solid wholesale real estate deal. If you can put the wholesale real estate deal together, then you can do wholesale real estate business in any real estate market – up or down.

Have you ever talked to a struggling stock investor and they told you that the market was bad and it was not a good time to invest in it? Think about that for a moment. Isn’t the smart thing to purchase stocks while they are at a low price, and then later sell them at a higher one? Real estate investment really is the same thing. When the market is down or “bad” is one of the best times to purchase real estate to hold on to for a while, rent out, and make some serious cash on over time.

Don’t get me wrong, real estate wholesale buying deals are not usually simple or easy. However, with a good group of professionals on your side, you can make a lot of money in the wholesale real estate market.

The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head. The sad truth is that many people use a down market as an excuse not to do business. You really should learn to ignore the naysayers, not use an up or down market as your crutch not to do deals, and buy real estate wholesale whenever the deal is right for your investment strategy.

I recently visited Mexico, and being so impressed with the people, culture and lifestyle of the country, ended up purchasing property, as a foreigner, in Mexico. I was impressed with the professionalism of the Mexico Real Estate Agents, lawyers and banks, which were involved in the process of my purchase, and found that my original hesitations and fears about purchasing such a large asset in a country I was not completely familiar with quickly disappeared.

I had done a bit of research into some of the tourism and retirement areas that are gaining popularity with foreigners and decided that these areas would be my main focus to research and purchase. I found that in some areas property prices were increasing yearly by anywhere between 15 and 20%, and that these figures looked confident to continue on this similar trend for some time.

The Mexican government now allow foreigners to buy property in Mexico (within a restricted zone of 50km from the coastline and 100km from any boarder) via a bank trust, or “fideicomiso”. Although this may sound a bit daunting at first, it is actually a very good way of ensuring that what you think you are purchasing is actually what you really receive. The purchase remains within very tight legal boundaries giving you a real advantage that you are assured of getting what you pay for.

The fideicomiso is where the bank holds the trust deed of the property on behalf of the purchaser, however the property is not considered part of the bank’s asset is not able to be subjected to or attached for any bank obligation. You as the owner have the legal right to substitute any beneficiary who receive all the rights to the property should the owner die, and the process of passing the property on to an heir or beneficiary is very simple and straightforward as all that is required is a death certificate and the beneficiaries identification.

The average trust is for 50 years, and the bank easily renews this by simply giving instructions to do so. The trust may also be transferred should you wish to sell the property on to a new owner. I found that, using a reputable Mexican bank the fees for setting up the trust were relatively small (as these fees to vary from bank to bank) and the process went very smoothly. When completing the purchasing transaction, this process was carried out by a legal Notary, someone appointed by the Mexican government who have the required authorisation to follow through this process. I found that on average the costs for the entire process is between 5-7% of the property’s sale price.

I would highly recommend investing in property in Mexico. I have been so impressed with the experience that I had in the purchasing of my property, and the subsequent enjoyment of using that property, that I would recommend any foreign investor, weather for a retirement home, an investment, or a holiday home to definitely give Mexico’s property market a serious thought when next buying Mexico Beachfront Real Estate.

Author: Jason Keiller

Owing to IT related developments there has been an upward trend in Pune’s real estate. There is obviously a huge demand for commercial and office space and residential houses and apartments. Pune’s real estate developers experienced a significant change in the rising demands from the corporate houses. Among the major real estate developers are – Godrej Properties with `Eternia’ and `Millennium’ in Shivajinagar and Koregaon Park, respectively. GESCO, in collaboration with Singapore Technologies for `GE Plaza’ on Nagar Road- Shappoorji Pallonji IT Park at Manjiri- RPG Group with Foodworld outlets spread across several locations- Tata Group with Westside chain – K Raheja Group with Shoppers Stop- Pyramid megastore- Pantaloon apparel showroom – very close to MG Road.

Real estate trends in the city’s market has become very vibrant with housing finance institutions offering unprecedented offers, and builders packing in more lifestyle amenities, demand has seen an upswing. However, the upswing doesn’t yet cover all parts of the city. Also, major and established real estate builders enjoy clear customer preference over new names. Among the areas seeing a lot of investments in residential properties are Bavdhan, Aundh, Kharadi, Mundhwa-Hadapsar, Nagar Road and parts of Kothrud.

The demand for premium category apartments, deluxe villas and housing complexes from NRIs speaks significantly about the real estate trends in Pune. Developers like City Development Corporation, Omaxe and Vatika are aggressively tapping this niche property market. Some premium options in Pune like Panchshil Reality’s new development, ‘Waterfront’, will have unique features.

Apartments will overlook an expanse along the riverfront where a bird sanctuary is proposed to come up shortly. The higher capital and rental yield rates spells a good time to take long term positions in residential properties. Many NRIs from the Gulf are also investing in properties in Pune, as they consider buying and selling apartments in Pune are a safe bet.

For more details on India Real Estate, log on to magicbricks.com

There are several advantages to using a commercial real estate management company to manage your rental properties. Now is the time to stop being a landlord and to let a professional company do the work for you.

Using a commercial real estate management company allows you to maintain your anonymity and privacy. A professional company acts a liaison between the tenant and landlord allowing you to manage your property as you see fit without having to become personally involved. They are experts in tenant and landlord relations.

The primary responsibility of a commercial real estate management company is take rent payments and to maintain the property. Maintaining a property is critical for good tenant relations and tenant retention. The company will insure that all necessary repairs are completed on a timely basis and they will perform maintenance checks to make certain that everything is in proper working order.

A commercial real estate management company will also play a large role in filling open property. They fill theses vacancies by advertising the space for rent, taking the applications from potential tenants and doing all of the necessary checks on those tenants to include background checks.

The cost to retain a commercial real estate management company is usually reasonable and it really makes being a landlord much easier. A company has the resources to keep vacancies low and to keep tenants satisfied. Most companies will charge a percentage of the rents collected each month. This amount can vary between 3 and 10% with a lease commission also being standard to the industry.

Consider a commercial real estate management company and the many advantages that this type of company can offer.

For more information on commercial real estate, visit http://www.commericalrealestate.asia.

For more information on property management, visit http://www.propertymanagment.asia.

Arizona real estate has been the hot topic for discussion among real estate experts for the last couple of years. Almost meteoric sales trends have made many of the communities some of the fastest selling areas in the United States.

Almost weekly, a new expert announces their prediction for the future market trends – will it go up or down, be stable, increase slightly, burst like a balloon – everyone has an opinion. But most experts aren’t examining one of the most important real estate markets – the commercial real estate market.

Commercial real estate in Arizona is a competitive. Although appreciation rates in commercial real estate haven’t kept pace with the same skyrocketing rates of residential property, it has been appreciating at an extremely profitable rate.

Arizona’s population is rapidly growing; in fact, the state has had record levels of growth. With this growth comes an increased demand for rental housing, goods and services. The value of commercial property has increased to meet the demands of this population.

An increase in home residents means an increase in demand for supporting services – retail businesses, restaurants, hotels, etc. In addition, there are a number of industrial parks expanding all over the Phoenix area. Many big businesses are moving into Phoenix; it’s rapidly developing a reputation as the new Silicon Valley. Along with the expanding industrial parks, retail properties are being built to support the business needs of the community.

The value of commercial real estate is determined by the stability of income from the property. Of course there are a variety of types of commercial properties: apartments, land, retail stores, office space, parking lots – just to name a few.

Commercial property is expected to continue increasing in value as the population of Arizona increases, and as more and more industries move to Arizona.

Many companies are taking advantage of the well educated labor pool in Arizona. Several areas in the state that were once considered farm land are now becoming industrial parks; high technology firms are moving into several business parks; neighborhoods that were becoming down-trodden are experiencing rebirths; apartment complexes are being rehabbed as condominiums.

The demand for housing and business spaces is creating a steady monthly and yearly income, as well as a real estate appreciation, in both residential and commercial real estate. Investors can expect commercial properties to be strong future investments throughout Arizona.

Wholesaling most often refers to the process of buying real estate for below it’s market value, and then selling that property to another investor, without fixing it up – this process is also sometimes known as “flipping properties”

Buying and selling or “flipping” properties that were purchased at wholesale prices can be challenging and difficult. If an owner of a property finds out that you are a real estate investor, they may raise there asking price knowing there you only buy wholesale.

Even though the entire process of flipping can be difficult, locating wholesale real estate can be relatively easy – if you know where to look. The people that are willing to sell their house at wholesale prices are usually known as “motivated sellers” – people need to sell their house quickly for any number of different reasons. This may include divorce, foreclosure, the owner may have needed to relocate due to personal or health issues or various other reasons.

There are several ways to locate wholesale real estate ideal for flipping. Some great wholesale property can be obtained from various government agencies’ that may have taken over a property. This may be due to the owner failing to pay their taxes or their mortgage (HUD Homes, VA Homes, etc.).

You may want to concentrate on searching for foreclosure real estate. Banks and other lenders often supply lists of properties that they are selling or you may want to look in the legal sections of various newspapers and business journals under the notices issued by the city or county. The city or county may have “red-tagged” properties which they see as unfit for human habitation because of a safety or health issue.

Look in newspapers for advertisements from people that say things like – “We buy Houses”. These ads are usually placed by fellow investors who may have a good list of properties that they are selling and there is nothing to stop you calling them.

Networking is critical when you are trying to locate wholesale real estate. Contact local realtors and make them aware that you are interested in wholesale deals. Creating a good network of contacts is invaluable and one of the most important things you can do. Don’t forget to follow up with your contacts – rather than waiting for them to call you back.

Sometimes a simple approach may be the most effective. There are many successful investors that simply drive around in respectable neighborhoods to look for slightly run down houses that may be for sale. It is just a matter of time until you locate a perfect property to flip. Each time it will get easier and easier. Focus on which system works best for you and before you know it, properties will start to find you. With the right knowledge, foresight and connections it can be a very profitable venture.

If you want a home for the summer, something to rent out for extra income, or a place to retire than look no farther than real estate Torrevieja. With it’s close location to Alicante, you can’t loose in this pristine spot. When you buy a property in Torreviaja, Spain you will not be making the wrong choice. Torrevieja is a lovely tourist destination where you can spend the winter and rent out your place during the summer with no problem!

If you want to rent out a property or buy a property to live in then you should go to Torreviaja several times before you make your final decision. You will need to see the difference between villa life and apartment life before you settle down and pick out something right for you.

You should explore different parts of the city and the outlying areas when you are in Torreviaja. This will help you know the different areas that you may want to buy something in and you will also know the areas to avoid when you are on your search. You should also visit during different seasons so you can get a vibe for the different times of year.

You will want to note all the amenities and different things located on and near your property. Are you close to the shopping area or hot places to eat? Do you want to be near the beach and boost your rental value? Will you be living there or renting it so do you need something warm for the winter to live in?

If you want to live there all year round then you want to make sure that it is warm enough in the winter and cool enough in the summer. If you just plan on using it for summer rentals then you don’t have to worry about the winter months and the heating situation. Is the property on a high floor where you will need to carry things up and down it regularly? Could this be a turn off to you or renters?

You need to shop around for loans to get the best deal for your money. The prices of homes in Spain are not as cheap as they used to be and you’ll want to make sure that you can qualify for a good loan before you get to serious about buying a place. Compare Spanish loans from loans in your home country.

If you choose to go for a loan in Spain, then you will want to be familiar with the laws about real estate in Spain. You can hire a lawyer who speaks both English and Spanish to help you with your situation. You will need him to help you apply for a mortgage and understand everything detailed in it.

You should also be prepared for all the paperwork that will follow this process. It will all depend on what country you are from, but the basics are usually a copy of your passport, pay stubs, the past three year’s tax returns, statements from your bank, and proof of your income level.

Located in the Eastern Caribbean, about 1,200 miles southeast of Miami lies the island of Antigua. This small, 108 square mile island with a population of approximately 78,000, is quickly becoming an investor’s paradise. Antigua real estate is a hot property with a variety of market offerings.

Its mild, tropical climate ranges from 76°F (24°C) to 86°F (30°C). January and February offer the coolest temps of the year while August and September, the warmer. With the average annual rainfall at about 42 inches, the heaviest being during the summer months, the pleasant climate is regulated by cool breezes and a surprisingly low humidity level. Antigua real estate is attractive to those wishing to locate to the area, those seeking vacation properties and those who wish to cash in on the tourism traffic.

Of the 78,000 people who make up Antigua’s population, the majority are of African descent. However, a great many residents do hail from Britain, the United States, Portugal, and other origins. Additionally, quite a few Europeans and North Americans have retired permanently to Antigua. This makes Antigua real estate a very attractive investment for those who want to cash in on the island’s 1.3 percent annual population growth.

Know the ropes for Antigua real estate

There are a few things that are different when making a purchase of Antigua real estate than when purchasing property from other areas.

When there is a purchase of property in Antigua, the buyer must usually pay 2 ½ percent of the agreed sale price of the property. This is for stamp duty and is to be paid to the Commissioner of Inland Revenue.

Non residents of Antigua must purchase a “Non-Citizen Land Holding License” in order to be able to purchase property in Antigua. The approval time to receive permission to purchase this Non-Citizen Land Holding License is usually anywhere from three months to six months.

All legal fees, preparation fees and execution fees of the “Instrument of Transfer” are the sole responsibility of the buyer. This stipulation shows good faith of the buyer in adhering to and following all required obligations and allows him or her to have the property legally vested in their name.

Property purchase requirement

In order to purchase Antigua real estate property, the non-national buyer must obtain permission from the Cabinet. All taxes pertaining to the purchase of the property must be paid. For instance, real, freehold property buyers much pay a 2 ½ percent government purchaser’s tax.

Approximately 2 percent of this is for legal fees while the remaining .5 percent, if applicable, is for a non-citizen’s landholder’s license fee. An additional tax in the amount of 7 ½ percent must be paid it the property is resold at a later date. In general, it takes approximately four months to even six months to obtain a property in Antigua.

If you are a non-national and are seeking to purchase a property in Antigua, you should be prepared to provide your own capital. Local bank loans are quite difficult to obtain. Also, a cash purchase of your property can be more attractive because mortgage balances are taxed a 3 percent five year recurring advanced tax for buyers who are non-residents. In short, though, purchasing a home, rental or investment property in Antigua can be quite advantageous – once you know the ropes.

Investing in real estate can be really profitable however there are certain things that you should beware of. In fact even real estate gurus steer clear of these things so you should follow suit. So what exactly are these issues that you have to stay away from? Read on to know about them.

Do not get into any venture without practice or education.

Nothing can equal practice and education in this business. If you do not know all the trivialities in this line, then you will never be successful as a real estate investor. There is a lot of competition in this field and the only way you can stay ahead is by knowing more than your competitor. And you can get added knowledge only if you have done proper research of the market and have had a little bit of experience in turning deals around.

Time is of extreme importance, so stay away if you do not have it.

If you think a successful business can be built in a span of weeks then you are completely mistaken. You need to take out time for marketing and networking. How would anyone know about your ventures if you do not even take out time to market it accordingly? In this business time waits for no one and you have to make the best of any opportunity that you get. This is what real estate gurus do as well.

Rentals can be a headache.

If you thought that a rental was an easy way to make some money then you have to change the way you think and wake up to reality. You always have to be on your toes to look after some or the other thing that has gone wrong. You have to make rounds for inspection, to get something fixed or checked or simply listen to your tenant’s complaints. You should know that in many states the laws meant for tenants or landlords give more leverage to tenants. The peace of mind that you lose by giving out a property on rent is much more than the profits you will make.

Stay away from contractors who want to be paid on an hourly basis

This is the best way for a contractor to take investors for a ride, so be wary of contractors who want payments by the hour. In fact you should get them to sign a clause where it should be clearly mentioned that their payments will be discounted if they do not complete a specified job by a specific date.

Be wary of buying homes sold on the courthouse steps or at sheriff sales.

It is true that you can make some good deals on these but the costs needed for repairs will definitely eat away most of your profits. Therefore it is always a good idea to check such property thoroughly.

If you want to be a successful real estate investor then you should definitely keep in mind the above points, since these have already been tried and tested by real estate gurus.

Rent to Own is a creative selling strategy that allows you to rent and sell an item or property quickly and receive three income streams. Rent to Own has many names: “Lease Option”, “Lease Purchase”, and “Lease with Option to Buy”, to name a few.

The use of the Rent To Own strategy has been around for a long time. Have you ever heard of RAC (Rent A Center)? It’s a business that allows customers with bad or no credit, to rent New Brand Name electronics or furniture with the option to own it in a year or two as long as they make their payments on time and take care of it.

We’ll use a Big Screen TV as an Example: The customer puts down a small payment, pays a monthly payment, and at the end of a year or two they have the option to pay off the Big Screen TV or return it back to store. Most people that have had that Big Screen TV in their house for the last year want to keep it. The best part is that the buyer will pay more than what the equipment or furniture is worth because RAC is taking a chance on them. RAC is trusting they will take care of the Big Screen TV and either buy it or return it in good condition.

Let’s apply it to Real Estate; the buyers are for Rent To Own Properties. They are people with less then perfect credit, people who are self employed or maybe just people who want to try owning a house before they actually buy it. These people may not be able to qualify for a mortgage now, but over the next year or two you help them clean up their credit in order to become homeowners.

They are called Tenant Buyers (T/B). The reason they are called Tenant Buyers is because you have them sign a rental contract as a tenant and a separate Option to Purchase contract that will make them a buyer in the next 12 to 24 months. (An Option gives the Tenant Buyer the Exclusive Right to Purchase but not the Obligation). The real benefit is that you create three income streams for the property. Three steps explained:

1. Market your Property Rent To Own. When you find a Tenant Buyer, you collect 3% to 5% up-front money called a Non-Refundable Option Payment, which you record on your Option to Purchase Contract.

2. They sign a Standard Rental Agreement for 1 to 2 years, giving you a monthly cash flow, typically around $125 to $250 or more. However, it can be much more. It could be several hundred dollars depending on what the Market Rents are and what you can negotiate with the Tenant Buyer.

3. When the Tenant Buyer exercises their Option to purchase the house, at the price you had agreed on when the original contract was signed, you can make anywhere from $10,000 to $30,000.

Profits Explanation: Let’s say you’re doing a 60-Month sandwich lease option from a Motivated Seller for a $10 Non-Refundable Option Payment. The Motivated Seller owes $75,000 with a Monthly Payment of $750. (P.I.T.I.) Note: You do not need to do a sandwich lease – you can use the Rent To Own Strategy to sell any property you own or control.

You collect from the Tenant Buyer a $3,500 up front Non-Refundable Option Payment (You subtract it from the purchase price) plus $200 a month, monthly cash flow (No Rent Credits) and a $95,000 selling price.

You would make the following from the spreads over the next two years:

1. Rent: $200 x 24 = $4,800

2. Price: $20,000(minus closing costs)

3. Up front: $3,500

Total Profits: $28,300

If you negotiate five deals a year, you’ll make over $140,000 from your investments in the next 12 to 24 months without all the maintenance headaches of being a landlord.

“Although renting a home can give you plenty of freedom to travel and move frequently, most people eventually opt to buy property. Further, most financial advisors approve of real estate purchases as solid investments and good choices. That is because purchasing real estate can give you:

1) An asset. When you buy, the money you put into your property becomes money that you are investing in your own future. The value of your home becomes part of your net worth. When you own property, lenders may see you as a better risk since your overall financial situation is stronger. Paying off your mortgage on time each month can go a long way towards keeping your credit rating healthy too.

2) Equity. The amount of your home’s worth not tied up in home loans is your equity and this alone can be a valuable asset. Every time you improve your home and every time property values in your area rise, your equity may grow. In case of financial need, you can borrow against the equity of your home, often at great rates and with tax breaks as well. In case of a financial emergency, your home equity can be a financial lifeline that can save you from disaster.

3) Tax breaks. In most cases, owning a home can offer you tax advantages. For example, real estate taxes are tax-deductible. If you decide to sell your home, you could enjoy even more tax savings. If you make a profit in selling your primary residence, you can enjoy tax free profits of up to $250 000 or even $500 000, depending on your circumstances. This can make your home a much better investment than stocks, shares, or other taxable entities.

4) Higher quality of living. While there are many beautiful rentals, most homes offer you more space than rentals for a smaller price. Ownership also means freedom. When you own your own home, you can decorate it as you like and live the way you wish. You do not have to worry about following a landlord’s rules.

There are many advantages to owning your own home. If you have been renting for a while and now find yourself in the position of being able to afford your own home, you may want to reevaluate whether ownership isn’t right for you. For many people, it is a smart long-term financial decision.”

In recent conversations with my local bankers, realtor’s and other area investors I know, a apparent business opportunity has presented its self.

With the struggling economy and upside down real estate market many real estate investors are now also losing their houses (rentals, vacant flips). According to recent conversations, these investors are losing there house in groves.

I received a fax yesterday from a investor from the East side of the state, basically stating that he was having a “fire sale” in an attempt to unload his inventory. He claims to be selling (for example) a 2 bedroom home with comps at 65K for just $8,500.00

The business opportunity that is presenting itself, although neither new, is property management. If you are a licensed realtor, with experience in managing rentals, you are in the good position to approach your area bankers and offer your services.

While most of these investors will hold onto their property to the very end, and continue to collect rents even though they are in foreclosure, many will not.

This is the time to pick up some extra money in a bad market, managing these rental foreclosures for your local banker. What an excellent opportunity to present yourself as a problem solver to your local bankers.

Although managing rentals is a big headache, it could pay big dividends in the future when the market gets better and you will be in prime position to obtain the listings when it is time to resell.

You will not get them all, but the banker will remember you and your problem solving capabilities in later transactions.

If you are an investor, now is the time to buy, but you should be buying very low on such deals, maybe 30-50 cents on the dollar. The banks, with tougher lending standards, will have to sit on these houses for months or years.

There isn’t a mystery when it comes to becoming a successful real estate investor. It is not just a matter of jumping into the challenge, and crossing your fingers for the best, or being born with an “investment gene”. There are, however, two things that every moneymaking real estate investor does, and that is prepare. When a real estate investor makes money, you can tell that he has prepared himself and kept himself and his team of professionals focused.

Ken McElroy, author of “The ABCs of Property Investing,” speaks of what happened to one real estate investor who finally hired McElroy’s firm to take over the handling of his building. Because the property investor had not concerned himself enough to research the area in which he was considering investing in, or the structure itself, he was left holding a criminal-infested eyesore in a crime-dominated area. It was a wreck he could’ve avoided if he had just done his research.

In addition, he wound up shelling out a lot more money repairing the building than he believed he had “saved” by not employing a crew of professionals to guide him along. Not to mention the missed income from not being able to rent to good tenants in such a devalued part of town.

Successful property investors never withhold when developing their teams. This is because there’s just too much information that must be expertly handled when you are managing real estate acquisitions. You don’t have the time to become an expert in everything – you need an attorney, accountant, broker and others to guide you.

Another trait of the successful is focus. Rather than trying to fish an entire city for any ol’ property they might be interested in, many investors opt to save time and resources by initially choosing the type of investment property they want – say an apartment building with a specific number of rental units. Then they keep honing their focal point until they have found, not only an appropriate metro area in which to look for property leads, but an appropriate neighborhood.

When they can’t locate anything within their preferences in their 1st choice neighborhood, they try other neighborhoods. For instance, if down-town is the target area, they might work their way into the suburbs. And they always stay focused.

One concept to remember, as well, is that you don’t have to wait in expectation of the For Sale sign is posted in order to approach the owner. Actually, Ken teaches contrary to this practice. This is because you don’t want your competitors of other investors artificially inflating the price of the property.

Ken says that highly effective real estate investors also remain impartial. As for himself, he said that he walks into each and every transaction with the assumption that he will ultimately walk away from the transaction. In reality, quite often he DOES walk away. That’s because most transactions aren’t worth making. The individual who becomes hooked on the notion of closing the sale usually ends up paying more than they should.

That isn’t so hard to recall. If you want to have success as a real estate investor, do your due diligence and stay focused.