Commercial Real Estate Investment Articles

In checking through my files, I came across this article from several years back. I think this would be a good time to run, since nothing has really changed. And while it was directed toward the manufactured housing business (mobile homes), it applies equally to the current housing industry, as well.

I am sure you’ve heard the expression, “Attitude is everything.” This is very true. Right now, it’s simply your attitude and mentality that will give you the edge over others who are trying to invest in this highly volatile market.

Investing in real estate has changed in many markets in our country. If you are like me, you live in a real estate market that has gone soft. There are still some areas in the country where homes are appreciating nicely, but nothing like it was a year or two ago.

I’m writing this article from my hotel suite at the Fairmont Hotel on Maui. I’ve just finished the fifth annual Maui Mastermind wealth retreat, and I wanted to share with you some of my thoughts about what I’ve learned along the way as I’ve built my wealth.

In today’s market where there are so many foreclosure and bank REO sales, figuring out the real value of a property can be difficult. The comparable sales method is the most commonly used (and still the most accurate one) to determine the value of single-family homes, condominiums, and smaller rental buildings (two to four units).

Editor’s note: You may not be aware that you can invest in real estate using your IRA or other retirement funds. If your retirement fund is “self-directed,” you can use your funds for “non-traditional” investments (as opposed to stocks, bonds, etc.), as long as all proceeds from your investments are put back into the retirement fund.

Despite the obvious bursting of the housing bubble and the associated freezing up of credit markets, many (suspiciously self-serving?) forecasters and investors suggest that the housing slump is close to bottoming out–or soon will be!

How to invest in real estate? Don’t. You heard me right. I don’t invest in real estate and neither should you. Forget about being a real estate investor, and you’ll be well on your way, financially, to wherever it is you’re trying to get.

When it comes to saving taxes, being proactive is definitely the way to go. Now that the hectic holiday season is over, don’t forget to take a new look at ways to save money. Here are three suggestions to help you out:

The market is slowing and investors are drowning in house payments. Is there an end in sight? Probably not. But, there is something you can do about it. Dropping the price until you get it sold is one way to do it. But, I’ve got a better solution–sell the house.

Another month, another “home sales” decline, as the real estate markets in many parts of the country decelerate and transition into something less than the hyperactive state of the past few years.

Many people start out in real estate investing with great fervor, only to become discouraged after a few months when they don’t attain instant fortune.

For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a “housing bubble” that was sure to burst as all bubbles do.

So you’ve just purchased a new home study course. You followed the instructions. You found a good deal. You present your contract to the listing broker, and you get laughed at!

Curb appeal is one of the most important aspects of any real estate transaction. For me, it is the curb appeal that defines everything about my deal. How much will I offer? How much will it take to rehab the property? How does it compare to the surrounding living conditions?

Most people have come to mistakenly view cash (including cash to an existing loan and/or cash to a new loan), rather than benefits, as the driving force behind real estate transactions. So when cash is tight, transactions don’t get done, and benefits for buyers AND sellers are left by the wayside.

The day has come when savvy entrepreneurs, investors, rehabbers, FSBOs, Realtors, and other real property owners have come to the realization that they can sell their properties faster by offering owner financing and still get to a cash position.

Every real estate investor has heard how important it is to build rapport with distressed homeowners. What we never hear about is how to do it. What is it about someone that makes us instantly like or dislike them? We do not really know what it is about that person; we just know it is something.

[Editor’s note: Buying a home “subject to” means “subject to the existing financing” already in place on the property. The terms of the original note with the lender stay the same, and the note remains in the seller’s name. Typically, you would then sell the house to a tenant/buyer on a lease option.]

Year after year, home remodeling fraud costs consumers thousands of dollars and considerable stress and aggravation. Contractor fraud is a criminal activity pulled by scam artists on consumers. They tend to prey on senior citizens and singles, taking advantage of their willingness to trust others who sound believable.

People who have always put their money in blue-chip stocks, bonds, and money-market accounts commonly think of real estate as being an inherently risky investment. While real estate can be risky, you can certainly limit that risk by educating yourself.

Most of us are smart enough to realize that no real estate “system” is foolproof, and if anything seems too be good to be true, it probably is.

The headlines keep on coming. The only thing for certain is as leading business consultant, Tom Peters, would say: “If you’re not confused, you’re not paying attention!”

Housing markets throughout the nation are changing. It’s getting harder to buy right in some areas and tougher to sell quickly in other areas. Many creative real estate investors will leave the business frustrated that what was once working well is not working as well anymore. Attendance at real estate investor club meetings is declining. People are giving up on their dreams.

Real estate and housing markets across the nation are changing. You can hardly turn on the national news without hearing a story on how home prices are peaking–or even declining. Homes are taking longer to sell. The spread between asking prices and selling prices is widening. Unsold inventories are up. Foreclosures are on the rise.