We all are thinking about it and some of us are actually taking action and getting their hands on real estate investment properties. The longer the NY Stock Exchanges doesn’t produce desirable returns the more people are starting with real estate investments.For most of us the obvious choice of properties are single family homes. Although you can invest in real estate without owning a home, most people follow the experience they made while purchasing their own home. This is familiar ground and the learning curve for doing a real estate deal of this type is pretty slim.Of course there’s a drawback with this approach. The competition is fierce and there are markets where investors are artificially driving up the cost of the properties while completely discouraging first time home buyers. If this is the case, the burst of the real estate bubble is just a matter of time.How do you avoid these situations and still successfully invest in real estate? How do you get ahead of the competition and be prepared for bad times in real estate investments as well? The only answer I have is commercial real estate.Why commercial real estate you might ask? Commercial real estate is a solid investment in good and bad times of the local real estate market. The commercial real estate I’m referring to are multi unit apartment buildings.Yes you will become a landlord and No you don’t have to do the work by yourself. You are the owner and not the manager of the apartment building. The cost of owning and managing the building is part of your expenses and will be covered by the rent income.Apartment buildings are considered commercial real estate if there are 5 or more units. To make the numbers work you should consider to either own multiple small apartment buildings or you should opt for bigger buildings. This will keep the expense to income ratio at a positive cash flow. Owning rental properties is all about positive cash flow.With investing in single family homes it is easy to achieve positive cash flow. Even if your rent income doesn’t cover your expenses 100%, the appreciation of the house will contribute to the positive cash flow. With commercial real estate the rules are different.While single family homes are appraised by the value of recent sales of similar homes in your neighborhood, commercial real estate doesn’t care about the value appreciation of other buildings. The value of the property is solely based on the rent income. To increase the value of a commercial real estate you need to find a way to increase the rent income. The formula on how this is calculated would be too much for this short article. I listed a few very helpful books where you can find all the details.What’s another advantage to invest in commercial real estate? Commercial real estate financing is completely different than financing a single family home. While financing a single family home you are at the mercy of lenders who want to make sure that you are in the position to pay for the house with your personal income. Commercial real estate financing is based in the properties ability to produce positive cash flow and to cover the financing cost.After reading all these information about commercial real estate you want to go out there and dive into the deals. Not so fast. First, you need to learn as much about real estate as possible. In commercial real estate you’re dealing with professionals. If you come across too much as a newbie you will waste these guys’s time and your commercial real estate career ended before it actually started. Second, no commercial real estate lender will lend you any money if you can’t show at least a little bit of real estate investment experience.What’s the solution to this? Go out there and do one or two single family home deals yourself. It doesn’t matter if you make huge profits to start off with. Most newbie investors are losing money on their first deal anyway. If you can manage to show positive cash flow with your single family home deals you are ahead of the pack.My advice, buy a small single family home in a decent neighborhood and rent it immediately. This will keep your out of the pocket expenses at a minimum and you will have rent income to cover for your monthly expenses. Bonus, you gain experience as an investor and as a landlord.Here’s another observation I made during my real estate investment career. Most people like to analyze, learn, discuss and analyze some more. They never actually got to do a real estate deal. They love to talk about real estate investments, but never did it themselves.My approach to real estate investment was simple.- I bought some books about real estate investment.- I read every single one of them.- I put together a simple plan on how I want to get started.- I started looking for properties.- I bought my first investment property 30 days after I started reading my first book.- I made positive cash flow with all of my properties so far.What is my point? You have to go out there and practice what you’ve learned. The only valid credential in the real estate business is practical experience. Having a couple of deals under your belt, you can go out there and start looking at commercial real estate and even impress seasoned investors with your knowledge. Because you made this experience by yourself and you know what you’re talking about.Book reference for commercial real estate investments:Gary W. Eldred, PhD: “Make Money with Small Income Properties”Jack Cummings: “Real Estate Financing and Investment Manual”You will find these books and many more on my real estate investment website at http://www.suncoastrenttoown.com/author_directory.htmSincerely,Peter Dobler
Biblical Wealth Strategies With Real Estate
I’ve heard the statement many times. “You know, I’ve been wanting to get into real estate, but…”How do you finish that sentence?”I don’t know how or where to get the money.”
“It’s too risky.”
“Is it biblical?”
“It would take too much time.”
“What if it doesn’t work?”
“It seems like real estate investors take advantage of people.”
“What about a real estate bubble or a market downturn?”
“I’ll start when I get in a better financial situation.”
“I don’t want to deal with clogged up toilets in the middle of the night.”These thoughts and many others can prevent us from achieving God’s best for our lives and realizing our full potential.Whether your desire is to quit your job and get into real estate full-time, or you just want to add some appreciating assets to help in your retirement, or restart in real estate because you did it the wrong way, I believe everyone should have some form of real estate in their portfolio!We know that real estate investing is one of the best avenues to create wealth. God created real estate, and it’s valuable because He is not making any more of it!And it is interesting to note that if you study the lives of some of the wealthiest people in the country, past and present, you will find that even though there is a diversity of investments and businesses, one common thread in almost every one of them is real estate.I mentioned in the first session, about how many of us have thought at one time or another, “Man, why didn’t I buy that piece of real estate back when?” What makes us think that things will be different ten years from now if we don’t act and start buying real estate now? I believe ten years from now, we’ll be wishing we had bought more real estate when “prices were so cheap.”Most of the time, we don’t take action because we don’t know how or where to get the money. Maybe you believe that real estate investors take advantage of people. Maybe you’re afraid of a real estate bubble or a market downturn. All of these reasons boil down to one thing: FEAR!Perhaps you have heard the “horror” stories of people who tried real estate investing, and they had a bad experience with “problem tenants” or “maintenance headaches.” They don’t hesitate to tell you all the reasons why real estate doesn’t work. These are the people who usually just dived headlong into the world of real estate investing without educating themselves. Some of these well-meaning people will consider themselves experts since they have bought a house or two, but chances are they did not buy it right, they did not finance it right, they did not market it right, they did not manage it right, and now they are blaming everything but their own lack of education. I’ve made some mistakes in my real estate businesses, but I’ve learned from them and I move on!Most people simply buy real estate rather than first investing in learning about real estate. With the real estate materials provided to you through EPIC Wealth Strategies, you can be on your way to learning the correct way to invest in real estate – with excellence, honesty, and integrity.The Scriptures are full of references to God’s commands of possessing land. In Deuteronomy 1:8, God says, “See, I have set the land before you; go in and possess the land.” Similar verses are Deuteronomy 3:18 and 4:22. Psalms 37:22 says, “Those the Lord blesses will inherit the land.” Psalms 37:29 says, “The righteous shall inherit the land.” Psalms 135:12 says, “And He gave their land for a heritage.” I Chronicles 28:8 says, “Be careful to follow all the commands of the Lord your God that you may possess this good land and pass it on as an inheritance to your descendents forever.”In fact, “land” is mentioned in the Scriptures over 1,700 times, so apparently God places quite an importance on it. In today’s terms, you can substitute the words “real estate” in the place of “land” (sorry, the word “real estate” wasn’t translated from the original Greek and Hebrew). God created real estate, and He created it as a good investment. We’ve seen the world latch on to the idea of real estate investing, especially in recent years. But as Christians, we can’t back down from something God said is good just because the world has latched onto it. As with the story of the talents in Luke 19, God expects us to make a good return on His investments, and you can do that in real estate.This entire series is based on Multiple Streams of Income, with real estate being one of the three main asset classes you should invest in. But even within real estate itself, there are ways to diversify your property portfolio through various property types, locations, and buying/selling strategies. Later, we’ll look at the many ways you can diversify your real estate, even through various commercial property types, but before we do, let’s look at some of the reasons why real estate is one of the best investments you can make…
Home Buyers and Sellers Real Estate Glossary
Every business has it’s jargon and residential real estate is no exception. Mark Nash author of 1001 Tips for Buying and Selling a Home shares commonly used terms with home buyers and sellers.1031 exchange or Starker exchange: The delayed exchange of properties that qualifies for tax purposes as a tax-deferred exchange.1099: The statement of income reported to the IRS for an independent contractor.A/I: A contract that is pending with attorney and inspection contingencies.Accompanied showings: Those showings where the listing agent must accompany an agent and his or her clients when viewing a listing.Addendum: An addition to; a document.Adjustable rate mortgage (ARM): A type of mortgage loan whose interest rate is tied to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.Agent: The licensed real estate salesperson or broker who represents buyers or sellers.Annual percentage rate (APR): The total costs (interest rate, closing costs, fees, and so on) that are part of a borrower’s loan, expressed as a percentage rate of interest. The total costs are amortized over the term of the loan.Application fees: Fees that mortgage companies charge buyers at the time of written application for a loan; for example, fees for running credit reports of borrowers, property appraisal fees, and lender-specific fees.Appointments: Those times or time periods an agent shows properties to clients.Appraisal: A document of opinion of property value at a specific point in time.Appraised price (AP): The price the third-party relocation company offers (under most contracts) the seller for his or her property. Generally, the average of two or more independent appraisals.”As-is”: A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.Assumable mortgage: One in which the buyer agrees to fulfill the obligations of the existing loan agreement that the seller made with the lender. When assuming a mortgage, a buyer becomes personally liable for the payment of principal and interest. The original mortgagor should receive a written release from the liability when the buyer assumes the original mortgage.Back on market (BOM): When a property or listing is placed back on the market after being removed from the market recently.Back-up agent: A licensed agent who works with clients when their agent is unavailable.Balloon mortgage: A type of mortgage that is generally paid over a short period of time, but is amortized over a longer period of time. The borrower typically pays a combination of principal and interest. At the end of the loan term, the entire unpaid balance must be repaid.Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.Bill of sale: Transfers title to personal property in a transaction.Board of REALTORS® (local): An association of REALTORS® in a specific geographic area.Broker: A state licensed individual who acts as the agent for the seller or buyer.Broker of record: The person registered with his or her state licensing authority as the managing broker of a specific real estate sales office.Broker’s market analysis (BMA): The real estate broker’s opinion of the expected final net sale price, determined after acquisition of the property by the third-party company.Broker’s tour: A preset time and day when real estate sales agents can view listings by multiple brokerages in the market.Buyer: The purchaser of a property.Buyer agency: A real estate broker retained by the buyer who has a fiduciary duty to the buyer.Buyer agent: The agent who shows the buyer’s property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction.Carrying costs: Cost incurred to maintain a property (taxes, interest, insurance, utilities, and so on).Closing: The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed.CLUE (Comprehensive Loss Underwriting Exchange): The insurance industry’s national database that assigns individuals a risk score. CLUE also has an electronic file of a properties insurance history. These files are accessible by insurance companies nationally. These files could impact the ability to sell property as they might contain information that a prospective buyer might find objectionable, and in some cases not even insurable.Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer may also be required to pay a commission to his or her agent.Commission split: The percentage split of commission compen-sation between the real estate sales brokerage and the real estate sales agent or broker.Competitive Market Analysis (CMA): The analysis used to provide market information to the seller and assist the real estate broker in securing the listing.Condominium association: An association of all owners in a condominium.Condominium budget: A financial forecast and report of a condominium association’s expenses and savings.Condominium by-laws: Rules passed by the condominium association used in administration of the condominium property.Condominium declarations: A document that legally establishes a condominium.Condominium right of first refusal: A person or an association that has the first opportunity to purchase condominium real estate when it becomes available or the right to meet any other offer.Condominium rules and regulation: Rules of a condominium association by which owners agree to abide.Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.Continue to show: When a property is under contract with contingencies, but the seller requests that the property continue to be shown to prospective buyers until contingencies are released.Contract for deed: A sales contract in which the buyer takes possession of the property but the seller holds title until the loan is paid. Also known as an installment sale contract.Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.Cooperating commission: A commission offered to the buyer’s agent brokerage for bringing a buyer to the selling brokerage’s listing.Cooperative (Co-op): Where the shareholders of the corporation are the inhabitants of the building. Each shareholder has the right to lease a specific unit. The difference between a co-op and a condo is in a co-op, one owns shares in a corporation; in a condo one owns the unit fee simple.Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.Credit report: Includes all of the history for a borrower’s credit accounts, outstanding debts, and payment timelines on past or current debts.Credit score: A score assigned to a borrower’s credit report based on information contained therein.Curb appeal: The visual impact a property projects from the street.Days on market: The number of days a property has been on the market.Decree: A judgment of the court that sets out the agreements and rights of the parties.Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the buyer acknowledges.Divorce: The legal separation of a husband and wife effected by a court decree that totally dissolves the marriage relationship.DOM: Days on market.Down payment: The amount of cash put toward a purchase by the borrower.Drive-by: When a buyer or seller agent or broker drives by a property listing or potential listing.Dual agent: A state-licensed individual who represents the seller and the buyer in a single transaction.Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer’s good faith.Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.Expired (listing): A property listing that has expired per the terms of the listing agreement.Fax rider: A document that treats facsimile transmission as the same legal effect as the original document.Feedback: The real estate sales agent and/or his or her client’s reaction to a listing or property. Requested by the listing agent.Fee simple: A form of property ownership where the owner has the right to use and dispose of property at will.FHA (Federal Housing Administration) Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by a mortgage company or banker.Fixture: Personal property that has become part of the property through permanent attachment.Flat fee: A predetermined amount of compensation received or paid for a specific service in a real estate transaction.For sale by owner (FSBO): A property that is for sale by the owner of the property.Gift letter: A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.Good faith estimate: Under the Real Estate Settlement Procedures Act, within three days of an application submission, lenders are required to provide in writing to potential borrowers a good faith estimate of closing costs.Gross sale price: The sale price before any concessions.Hazard insurance: Insurance that covers losses to real estate from damages that might affect its value.Homeowner’s insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.HUD/RESPA (Housing and Urban Development/Real Estate Settlement Procedures Act): A document and statement that details all of the monies paid out and received at a real estate property closing.Hybrid adjustable rate: Offers a fixed rate the first 5 years and then adjusts annually for the next 25 years.IDX (Internet Data Exchange): Allows real estate brokers to advertise each other’s listings posted to listing databases such as the multiple listing service.Inclusions: Fixtures or personal property that are included in a contract or offer to purchase.Independent contractor: A real estate sales agent who conducts real estate business through a broker. This agent does not receive salary or benefits from the broker.Inspection rider: Rider to purchase agreement between third party relocation company and buyer of transferee’s property stating that property is being sold “as is.” All inspection reports conducted by the third party company are disclosed to the buyer and it is the buyer’s duty to do his/her own inspections and tests.Installment land contract: A contract in which the buyer takes possession of the property while the seller retains the title to the property until the loan is paid.Interest rate float: The borrower decides to delay locking their interest rate on their loan. They can float their rate in expectation of the rate moving down. At the end of the float period they must lock a rate.Interest rate lock: When the borrower and lender agree to lock a rate on loan. Can have terms and conditions attached to the lock.List date: Actual date the property was listed with the current broker.List price: The price of a property through a listing agreement.Listing: Brokers written agreement to represent a seller and their property. Agents refer to their inventory of agreements with sellers as listings.Listing agent: The real estate sales agent that is representing the sellers and their property, through a listing agreement.Listing agreement: A document that establishes the real estate agent’s agreement with the sellers to represent their property in the market.Listing appointment: The time when a real estate sales agent meets with potential clients selling a property to secure a listing agreement.Listing exclusion: A clause included in the listing agreement when the seller (transferee) lists his or her property with a broker.Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest.Loan application: A document that buyers who are requesting a loan fill out and submit to their lender.Loan closing costs: The costs a lender charges to close a borrower’s loan. These costs vary from lender to lender and from market to market.Loan commitment: A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.Loan package: The group of mortgage documents that the borrower’s lender sends to the closing or escrow.Loan processor: An administrative individual who is assigned to check, verify, and assemble all of the documents and the buyer’s funds and the borrower’s loan for closing.Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer’s loan.Lockbox: A tool that allows secure storage of property keys on the premises for agent use. A combo uses a rotating dial to gain access with a combination; a Supra® (electronic lockbox or ELB) features a keypad.Managing broker: A person licensed by the state as a broker who is also the broker of record for a real estate sales office. This person manages the daily operations of a real estate sales office.Marketing period: The period of time in which the transferee may market his or her property (typically 45, 60, or 90 days), as directed by the third-party company’s contract with the employer.Mortgage banker: One who lends the bank’s funds to borrowers and brings lenders and borrowers together.Mortgage broker: A business that or an individual who unites lenders and borrowers and processes mortgage applications.Mortgage loan servicing company: A company that collects monthly mortgage payments from borrowers.Multiple listing service (MLS): A service that compiles available properties for sale by member brokers.Multiple offers: More than one buyers broker present an offer on one property where the offers are negotiated at the same time.National Association of REALTORS® (NAR): A national association comprised of real estate sales agents.Net sales price: Gross sales price less concessions to the buyers.Off market: A property listing that has been removed from the sale inventory in a market. A property can be temporarily or permanently off market.Offer to purchase: When a buyer proposes certain terms and presents these terms to the seller.Office tour/caravan: A walking or driving tour by a real estate sales office of listings represented by agents in the office. Usually held on a set day and time.Parcel identification number (PIN): A taxing authority’s tracking number for a property.Pending: A real estate contract that has been accepted on a property but the transaction has not closed.Personal assistant: A real estate sales agent administrative assistant.Planned unit development (PUD): Mixed-use development that sets aside areas for residential use, commercial use, and public areas such as schools, parks, and so on.Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet.Prepaid interest: Funds paid by the borrower at closing based on the number of days left in the month of closing.Prepayment penalty: A fine imposed on the borrower by the lender when the loan is paid off before it comes due.Prequalification: The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some prequalifications have conditions that the borrower must meet.Preview appointment: When a buyer’s agent views a property alone to see if it meets his or her buyer’s needs.Pricing: When the potential seller’s agent goes to the potential listing property to view it for marketing and pricing purposes.Principal: The amount of money a buyer borrows.Principal, interest, taxes, and insurance (PITI): The four parts that make up a borrower’s monthly mortgage payment. Private mortgage insurance (PMI): A special insurance paid by a borrower in monthly installments, typically of loans of more than 80 percent of the value of the property.Professional designation: Additional nonlicensed real estate education completed by a real estate professional.Professional regulation: A state licensing authority that oversees and disciplines licensees.Promissory note: A promise-to-pay document used with a contract or an offer to purchase.R & I: Estimated and actual repair and improvement costs.Real estate agent: An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker’s license must work for a licensed broker.Real estate contract: A binding agreement between buyer and seller. It consists of an offer and an acceptance as well as consideration (i.e., money).REALTOR®: A registered trademark of the National Association of REALTORS® that can be used only by its members.Release deed: A written document stating that a seller or buyer has satisfied his or her obligation on a debt. This document is usually recorded.Relist: Property that was listed with another broker but relisted with a current broker.Rider: A separate document that is attached to a document in some way. This is done so that an entire document does not need to be rewritten.Salaried agent: A real estate sales agent or broker who receives all or part of his or her compensation in real estate sales in the form of a salary.Sale price: The price paid for a listing or property.Seller (owner): The owner of a property who has signed a listing agreement or a potential listing agreement.Showing: When a listing is shown to prospective buyers or the buyer’s agent (preview).Special assessment: A special and additional charge to a unit in a condominium or cooperative. Also a special real estate tax for improvements that benefit a property.State Association of REALTORS®: An association of REALTORS® in a specific state.Supra®: An electronic lockbox (ELB) that holds keys to a property. The user must have a Supra keypad to use the lockbox.Temporarily off market (TOM): A listed property that is taken off the market due to illness, travel, needed repairs, and so on.Temporary housing: Housing a transferee occupies until permanent housing is selected or becomes available.Transaction: The real estate process from offer to closing or escrow.Transaction management fee (TMF): A fee charged by listing brokers to the seller as part of the listing agreement.Transaction sides: The two sides of a transaction, sellers and buyers. The term used to record the number of transactions in which a real estate sales agent or broker was involved during a specific period.24-hour notice: Allowed by law, tenants must be informed of showing 24 hours before you arrive.Under contract: A property that has an accepted real estate contract between seller and buyer.VA (Veterans Administration) Loan Guarantee: A guarantee on a mortgage amount backed by the Department of Veterans Affairs.Virtual tour: An Internet web/cd-rom-based video presentation of a property.VOW’s (Virtual Office web sites): An Internet based real estate brokerage business model that works with real estate consumers in same way as a brick and mortar real estate brokerage.W-2: The Internal Revenue form issued by employer to employee to reflect compensation and deductions to compensation.W-9: The Internal Revenue form requesting taxpayer identification number and certification.Walk-through: A showing before closing or escrow that permits the buyers one final tour of the property they are purchasing.Will: A document by which a person disposes of his or her property after death.
Investing In Real Estate In Up And Down Markets
Some people who doubt that there is a right time to get started in real estate investing worry that there are too many people buying houses to find a deal. Competition is everywhere. If you can’t understand – that in business, competition is normal – then real estate investing is not for you. Just take a look at the marketplace in companies such as Coke and Pepsi, Nike and Reebok, McDonalds and Burger King, and a million other services and products out in the marketplace. So if you see a lot of investors competing against you then know that it’s a rewarding business to be in because you are not the only one that sees the potential for profit. Plus, there are more than enough deals to make everyone rich, in due time. At any given time there are hundreds of properties for sale in your own local market niches, enough for each investor looking for them.Some investors know that events such as the September 11th tragedy, the huge number of job layoffs and the decline in the stock market will kill the economy, and anything they buy will go down in value. But, once again, this need not be the time to fold-up your tent and quit before you get started. In order to be successful in investing, learn how to make money in “up” and “down” markets. Have strategies to utilize in both “up” and “down” markets to survive when the economy is bad or thrive when the economy is booming. And if everyone else is forecasting “doom & gloom” it only clears out the competition as you have more market share to profit from, as this is a good thing!Ask yourself: “When do I want to make money?” And the answer is usually right now!Thus, go out and get your investing business going, right now! And not base your actions on what others are saying because the majority of the population is not rich, only those few who dare to take the right risks and take the necessary steps to be successful.Stay in ‘the Game,’ and stay ‘the Course’ (persist)One of the major disappointments of the conventional, ‘rental real estate’ approach is there’s just no money in it NOW, only after a long period of ownership. There’s not enough spread between the income realized from rent – versus – the expenses of mortgage payments and repairs for the investor to make any money today. You barely get by in the early years of your property’s ownership. You’ve got to have other income to support your lifestyle. You can’t just count on the rentals to support you.Most likely, in the beginning you’ll be supporting your properties with your other income if you bought via the traditional way. That’s not too attractive. A lot of investors don’t have the stomach to endure the rough and tough financial stresses of the rental business. Even more so – people just don’t have the desire to hang in there to make it work, in due time. Thus, if you persist you will outpace your competition because they will no longer be in the business, and you will have “no competition”. This business is a long-term commitment and over 80% of real estate investors – who have been in the business for that long, go on to become millionaires. What I’m saying to you is this: Stay the course, and you will beat most all of your competitors because you can ride the ups and downs of the market in the Real Estate Game, in due time.Opportunity is everywhereThis is ‘NOT’ a common statement I hear from new investors. True, it may work differently in some markets than in others, but there are investors making money in every city (large or small, metro-area or the rural-areas), every day of the week. You have to learn your market: the rents, the trends, the local customs, the lenders, the title companies, etc.Then, learn the techniques and adapt them to your market. One thing is for sure, everyone needs a roof to live under, either renting or owning. People need to live somewhere. So study your market carefully, because there are tons of opportunities in every marketplace. You just have to learn your market and be able to service your market accordingly. If you don’t believe this, simply read the ‘Success Stories’ of all my students achieving financial independence and earning big profits using my field-tested and perfected real estate investing system.Typically, the main argument of real estate “Nay-Sayers” is by associating real estate with toilets, bad tenants, property damages, tenant evictions, etc. – all the bad tasting things that may happen to an investor getting ready to jump into the real estate game.For somebody who believes the only thing to real estate is getting a loan and buying a run-down duplex, in a bad part of town, entering the real estate game most certainly could turn into a major nightmare very quickly. However, an individual open to possibilities and who is willing to learn various techniques and strategies – will very quickly discover that’s this methodology is not the most profitable way to be transacting real estate deals.A True Wealth BuilderWell, if you shudder at the very thought of spending your nights and weekends unstopping troubled toilets, painting scarred up walls, and pacifying angry/upset tenants, you are in good company. I have no interest in dealing with ill-affecting and time consuming renter-problems or their negative attitudes. When you follow a systematic approach to investing, you won’t have to deal with negative outcomes!! There are other creative ways to manage properties that involve no hassles and no headaches whatsoever, such programs exist in our “Automated Management System” which take away those ownership nightmares.Much more profitable strategies exist if you are open to ‘non-traditional’ ways of investing in real estate. For example, in our System approach, there are “Rent Credits” used to maximize your time, while minimizing your overall risks, while creating positive cash flow versus, living with negative cash flow and tenant-troubles. There is a better way!! Your properties will be beautifully managed and maintained. Your Tenant-Buyers will be happy, you will pocket plenty of positive cash flow and you’ll be able to spend your free time locating additional real estate investments, doing the things you love and have passion for doing, which is the very point of becoming a professional real estate investor in the first place!!If you really are serious about real estate investing and do extensive research into the real estate business, constantly learning and improving your knowledge level you will realize that your risks are minimal when compared to other business models.If you talk to any knowledgeable real estate investor and compare the cost of starting a real estate investing company versus some other type of business, you’ll see that a real estate business has far less risks. I like to be upfront with you that you will need some marketing dollars at the least to launch your real estate business. You also need to have a long term vision of this venture and at least give it at least a good 6-12 months to make it work. Otherwise, your money (marketing budget) and time will be a waste.I know this but most people don’t know that it takes at least some money initially to make money as a real estate investor. I don’t mean to scare anyone away but let’s compare a real estate investing business to a restaurant/carryout business. I know these types of businesses very well because relatives of mine own restaurants/carryouts, so even though I never owned a restaurant, my relatives have taught me the inner workings of that business and what it takes to sustain it to be profitable.First, for a regular restaurant it takes $30K in gross sales just to break even each month. And this does not include the 15 hour days, and six days per week, and the initial investment of $120K down payment with great credit for a bank to even lend you the money needed to open it. You also have to have years of knowledge and experience before you invest your life savings to start a restaurant business. Then, it usually takes about 1-3 years until the profits really come in, thus, this is only if you can survive to stay in business that long. My father-in-law is currently running a carryout and he has had over seventeen years experience and he tells me how fed up he is with the restaurant business. That is why he’s also getting started as a real estate investor and he’s asked me to invest some of his money into our rehab properties. He sees the huge rewards and minimal risk involved in real estate compared to his restaurant business or other businesses he has been in. And he is seriously considering selling his business to do real estate investing full-time.When you compare risks in real estate investing versus investing in other business avenues and/or endeavors, as you can come to your own conclusion: real estate investing is the ‘Best Game’ in town, when it comes to generating great wealth, while achieving your American Dream for financial independence.Real estate investing has cycles just like any other businessThe stock market has it’s cycles. We experienced that after the September 11th Tragedy. Only less than two years prior, we saw a peak in the stock market with high tech stocks soaring and making stock market investors ‘paper rich.’ The stock market has it’s ‘ups’ and it’s ‘downs.’Modern real estate thrives on doing things smarter, wiser, strategically – not harder, more time consuming, with profit-eating outcomes. At the end of the day, the key to success is to focus on being a ‘great entrepreneur.’ I asked an experience investor (he owned about a quarter of Blacksburg, Virginia) what his specialty was in real estate investing and his response was not that he was good at Lease Options, Wholesaling, Short Sales, REOs, Rehabs, Notes, Residential, Land Developments, or Commercial real estate. But he said he was an ‘expert at making money.’ We both laughed at that but I will never forget that conversation. You need to know about the marketplace and technical factors involved in a deal, but your main duty whenever you are investing is always to make money. Thus, at the end of the day, your job is to make money in ‘up’ as well as ‘down’ markets. And if you focus on being a ‘great entrepreneur,’ you’ll be able to make money with many techniques, strategies, and skill sets to be successful in any market.
Real Estate Agent – What is It?
A real estate agent is a person that is used as an expert to facilitate the selling of real estate. In my opinion, a real estate agent should be open to new things, including innovative marketing ideas and cutting-edge changes that impact buyers and sellers. A real estate agent should be someone who listens to buyers, sellers and renters to figure out what the public hates about agents and proactively make changes in their own business plan accordingly. A real estate agent should have business hours that are applicable to other professionals that are paid thousands of dollars per transaction.A real estate agent should practice their skills by using them everyday. A real estate agent should not be part-time in the business. This means they should not have a full-time job and sell real estate when they need some extra money. A real estate agent should be skilled at keeping their cool when something goes wrong. A real estate agent should be professional and never hang up on a client or another real estate agent, no matter what was said or done.A real estate agent should be responsible to learn, understand and keep up with all marketing tools that could and probably should be employed in selling or buying a home. The fact that a real estate agent is “not comfortable with the Internet” when most homes are now sold via the viewing on the Internet by a buyer is no longer an excuse. A real estate agent should be diligent about understanding modes of communication and marketing via every type of media from which a buyer can search and ultimately buy a home.A real estate agent should not have to turn on their fax machine when they return from the store. They should be in business, full-time, and be set up to do business anytime inside their business hours. A real estate agent should not leave town without backup and just leave a deal hanging as a result. No one cares that the real estate agent is on vacation other than the agent himself. A real estate agent should never tell a seller that open houses don’t work, when in fact, open houses sell properties, everyday. A real estate agent should never be so in-the-box that they laugh at someone for discussing the use of a St. Joseph’s statute. They shouldn’t scoff at the fact that apple pie scent may or may not sell a house just because they don’t want to go to the trouble to explain what may or may not work to the seller.A real estate agent should not cry when a seller tells them that they no longer want to sell their home or that they are not going to use them to sell the home. A real estate agent should not steal yard signs from lawns or directional signs from subdivisions just because someone did not choose to list the house with them but a competitor. A real estate agent should not bash other business models. They should simply point out the things that they bring to the table and why they feel their business model works better.A real estate agent should not open the house for a buyer and let them stay in there alone, just because the buyer looks nice. A real estate agent should always look at the identification of a buyer because they recognize that they are responsible for the seller’s property. A real estate agent should always be grateful that someone is willing to pay them thousands of dollars for a job that has never been fully explained to the public as to how little knowledge an agent needs and how little you’re trained when getting your license.America is unfortunately the only place where all of these standards, or should I say the lack of standards, are applauded everyday as good and acceptable behavior. The public needs to be reminded that an overwhelming number of inexperienced, part-time real estate agents hold in their hands the fate of most people’s largest asset. When will we put our foot down and say enough is enough… real estate is a real profession that requires skill, knowledge and a constant reach to perform strategies and results for clients.The clients deserve better.
Commercial Real Estate – Big Profits
Real estate has always been known as the safest of investments.In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.So, is commercial real estate really profitable?
Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!
However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.
But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).There are many reasons to delve into commercial real estate investment.
For example you might purchase to resell after a certain appreciation level has occurred or to generate a substantial income by leasing the property out to retailers or other business types or both.In fact, commercial real estate development is treated as a preliminary
indicator of the impending growth of the residential real estate market.
Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.Also remain open minded and understand that should the right (perfect)
opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.
For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later).Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.About the Author:
Dave Jarvis is a licensed Real Estate Broker in Florida and is Broker and Owner of Realty Concepts, Inc. a Southwest Florida Real Estate Corporation.
If you are interested in Southwest Florida Properties see his website at [http://www.rciflorida.com]For additional Real Estate information go to: [http://www.realestateseekerusa.com]
For Real Estate Financing information see : [http://www.mortgageseekerusa.com]
Successful Investing at Florida Real Estate
Definitely, there are heaps of people who want to earn a lot. So they find ways on how to have additional income.Indeed, real estate is a popular investment. A lot of millionaires out there, gain there millions through real estate investing. Even other celebrities are trying real estate investing for them to have additional incomes. They knew that real estate investing is a great way of making money.Surely, real estate investing is all what the television shows say it is, but you have to bear in mind that it is not that easy investing in real estate like in Florida real estate. Investing in Florida real estate requires plenty of works such as buying, selling, negotiating and even repairing some properties. So having the proper knowledge regarding this field is very important. If you desire to enter Florida real estate investing, you must gain the necessary knowledge, so to be prepared in entering such field. Definitely, if you enter such world, you want to earn and not just waste large amount of money. So proper education is what you should gain first before investing in Florida real estate.Everybody can invest in real estate if they desire to, and can even be successful in this field provided if they have the necessary knowledge in investing at real estate. And everybody can gain that proper knowledge if they want to learn about real estate investing especially in Florida real estate.Investing in Florida real estate requires buying property or home but before doing so, you have to educate yourself first. There are masses of strategies and techniques that real estate investors tried and do such as foreclosure, rentals, lease options and a lot more. But you have to bear in mind that those real estate investors gain their success by educating themselves on how real estate investing works.If you are entering to Florida real estate investing, you can work with real estate agent, in order to have someone to assist you with your quest. If you desire to buy property or home and sell it on your own without the help of real estate agent, it would definitely be risky in having financial loss if you to do have the proper knowledge before investing in Florida real estate.If you truly want to gain proper knowledge, there are lots of ways in order to know how real estate investing works. Purchasing and reading books about real estate investing and get some books about advices and guidelines about real estate investing. You can also use the internet in knowing about real estate investing. There are a lot of websites that offers trainings, explanation and education about different topics about real estate investing to help you gain the proper knowledge you need.Yes, investing in Florida real estate [http://floridamortgagebroker.us/] is a beneficial business. But in order to be successful in this field you have to be prepared in entering to real estate investing. Knowledge is an important factor in investing at Florida real estate. This article mentioned some ways in order to have the necessary knowledge you need. So if you desire to go on real estate investing, start educating yourself.
How Do I Know I’m a Real Estate Investor?
I recently had a long chat with one of the most successful real estate investors I’ve ever met. As I often do, I wanted to get a real understanding of the “Why?” he did real estate and what he wanted to accomplish for himself by reaching financial freedom.You see, I am firmly convinced of the truth that “If you have a big enough ‘Why?’ to do something, the ‘How?’ will reveal itself to you. This gentleman had some good things to say about the concept and completely opened my mind up to even deeper levels of understanding about the terms “success” and “freedom”.Listen, if you’re serious about making real estate investing an ultra-successful career for you, you have to go even further than just having investing in real estate be what you do for a living.It has to become a lifestyle. He threw my questions right back at me and we had some great give-and-take and it was like you could really feel that chemistry that comes into play when entrepreneurs are talking about their passion of investing in real estate.For him, it came down to asking this question, which fans of Tony Robbins should recognize its like:”If I had unlimited time, unlimited money, unlimited resources and encouragement, unlimited tools and teaching, unlimited support from friends and family, and unlimited belief in myself…what would I do? Who would I be?”Most of us would do the things that are passionate about, right?He was able early on to answer that he wanted to be a real estate investor who helped people solve problems and made money by investing in real estate. What he shared with me, however, is that he didn’t self-identify as a “real estate investor” until many, many years later.Until that moment, years later, when he claimed and began now to internalize the belief that “I am a real estate investor”, he was a hobbyist, a dabbler, a dreamer.He had this experience of self-actualization at a real estate seminar where one of the participants asked the speaker “How do I really know that I’m a real estate investor?”The speaker responded that “You know you’re a true investor when you can’t NOT invest!”He then went on to tell me that during the same seminar someone, obviously someone without a very strong “Why?” or motivation yet to become successful, asked the speaker “How can I find time in my busy schedule to do this business?”The looked at this questioner with the same patience and understanding that showed that this was the hundredth time the speaker had fielded this question, and said in effect “If you’re a real estate investor, you do not find time to invest and do this business…if you’re serious about this business you make time to do it.”After my incredibly successful investor friend let that sink into him and he found that he could really grasp hold of those two simple concepts, he realized then and there that he’d always been trying to FIND the time to invest and take the necessary actions to get his business going. For all of his “career” to that point he had been finding and taking that time to do his “business” AFTER other things that his attention and time expenditures PROVED were MORE important to him than becoming successful with real estate.The difference, after he had let these two concepts sink into him and really started to understand it and, most importantly, APPLY his understanding to his thought patterns and daily routines……the difference was that he did not just IGNORE the real-world practical matters that NEED to be a part of someone’s life (like for example to the beginning real estate investor, a steady income from a stable source to provide bills’ money and put food on the table) but other than that, he ASSURED himself that he would always MAKE time to create the life he wanted that was in answer to his compelling “Why?” to become successful- and he did it by taking solid, CONSISTENT actions and gaining unstoppable momentum.I think that these 2 concepts- of IDENTITY and claiming that you ARE what you want to be, and CONSISTENCY in finding the time necessary to DO what you ARE- applies to anyone wishing to turn a dream into a reality, whether it is to become a successful real estate investor or whatever, be it a published author, big ticket actress, or even just someone who wants to become the “World’s Best Dad”.Just substitute whatever it is that you’re passionate about for finding time to do “real estate investing” and knowing how you are really a “real estate investor?” and you’re on your way, if real estate investing is not your passion.I understand for many people it’s NOT. Many people want to USE the VEHICLE of real estate to take them to a place where you have the freedom and the luxury of time, and you have been able to achieve the financial security and independence to do what you want when you want.Now, with me, it’s writing. I’m passionate about writing, and will write whether or not I get paid for it. It’s not just what I DO, but it’s who I AM.How would you answer my friend’s question…if you had everything you ever needed already ACCOMPLISHED by investing in real estate and building a positive and successful lifestyle with plenty of passive income coming in every week?What would YOU do? Who would you BE?What’s your dream? What’s YOUR true passion?What will you do with the extraordinary wealth you can accumulate in real estate?Now I want you to write down what you are passionate about. You are passionate about something besides money, right? 😉 I certainly hope so! If you aren’t, it’s time to ask yourself a good hard question and take a long look at yourself and find out why not!Maybe your answer is like mine, that wealth and income from real estate investing can give me the freedom to write whenever I want, to get paid or not get paid but to have the flexibility for it not to MATTER. Maybe you want to spend more time with your family. Maybe you want to escape the 9 to 5 grind and make sure that you never miss another Little League game. Maybe you want to spend time golfing, fishing, or sailing, or learning the intricacies of Thai cuisine.Maybe in financial freedom you’d want to travel all over the world (of course, you’d at least LOOK at real estate while you’re there right? That’s called taking a PAYcation instead of a VACATION and you need to ask your tax professional about THAT little gift from Uncle Sam).Whatever your “Why?” is take a moment now and write it down! Commit this to paper. It’s important!Now, here’s where my friend and I agree that most people stop. This is hard. In fact, it’s often a question that if you give it the thought and meditation time that it deserves just might make you cry or knock you flat on your backside. Asking this next question you’re about to ask yourself can be downright HUMBLING or even, in some cases, extremely UPSETTING. But, you GOTTA do it!Now, write down your well-thought answers to this question:Why aren’t you living this life and doing all these things you desire NOW? If you’re not close, what would it take for you to be able to live your life of destiny and dreams?Think this is a silly exercise? Just ask yourself, “Am I getting the results right now that I want out of my life?” If you’re not, well…it might be wise to consider some opinions. ;)Just remember, without a map there is no treasure! Your “Why?” is the map that will keep you on track towards gaining momentum to becoming the IDENTITY of a true entrepreneur and professional real estate investor. And it keeping this in mind will PUSH you into taking all the actions necessary, in a CONSISTENT manner, to achieving everything it is that, until you WRITE IT DOWN, you only SAY that you really want.
Real Estate Investing LIES Unveiled
Let’s get REAL about something – and quelch the LIES you have been told about Real Estate Investing!What I am going to reveal to you are some basic
truths about Real Estate investing – truths that may
totally affect the Real Estate investments you have
now – and certainly I intend to modify the way you
do Real Estate investing in the future.Let’s get right to it – and into the heart of the real
estate investing issue.You have been programmed all your life to become
what you are today – from school, friends, relatives
and, yes, your parents.Recent studies show that you are who you are now,
more from what you learned prior to age 8 than in
anything else you have learned since.Now, that may surprise you, but it is true that what
you learned at the earliest ages affects the way you
make Real Estate investments today, and the type
of Real Estate investing success you will have going
forward!Yes, that’s a bit shocking.You see, if you grew up in an environment where
you heard things like”We can’t afford it”, “Be sure
you have saved enough and have the cash to buy it”
(i.e., never use credit), or numerous other phrases
that you now hear yourself saying (you know what
I’m talking about – those times you catch yourself
“becoming your parents”), it is because of your
early programming (from 0-8 years) and what you
were told about money, success, and life in general.That is controlling your current income – and your
success – or lack of it…The things you were told at that early, most
influential age, are now creeping out and affecting
how successful you are in business, in life and yes,
in your Real Estate investing.THERE IS GOOD NEWSThe greatest thing about this fact – as horrible as it
seems – is that you can change the ‘programming’ –
you have the power to do it!You can reprogram yourself in any way you want –
have anything you want – do anything you want.All it takes is simply to ‘reinstall’ the right kind of
thinking.And, it is easier than you might think!One of the best ways to do that is to get a CD audio
set from someone you like to listen to – someone
that thinks positively and speaks of the life you want
to live. Many home study courses are available (yes,
including mine) that are designed to inspire and
motivate you, while they teach you the methods and
secrets of real estate investing.Purchase one – listen to it, over and over – until you
hear yourself speaking that way, too.You see, we are all simply creatures of habit and
environment – if we allow junk to get into our heads,
all we will ever say is junk coming out.If all you listen to is the bad stuff in life (like the TV
news, most ‘talk radio’ shows, those TV ‘real life’
shows that end up in fights – you know the ones.,
and even violent movies where the language is
nothing you’d ever expect to hear from your own
lips.), that is exactly what you will wind up sounding
like!It is true – ‘you are what you eat’ – and that counts
just as much for what you put in your ears as it does
for what you put in your mouth!If you spend your time around ‘bar people’, you’ll
speak and act like them. Not that there’s anything
wrong with that, as long as you made a conscious
thought that it is what you want, but I think you’d
be much more successful at Real Estate investing if
you were listening to a successful person teaching
you about Real Estate Investing!Now, let’s get right to the point about the various
methods and concepts you have learned about Real
Estate Investing.You may call yourself a ‘real estate investing expert’,
but if you have to get up every morning and wonder
where your next check is coming from, you aren’t
making real estate investments, you are being
employed in a Real Estate Investing JOB!Yes, that’s a hard-hitting statement.You see, I want you to ‘get real’ with yourself and
simply admit it – Real Estate investing is when you
put money into a Real Estate investment and then
get some money out – ‘real estate investing’
defined.Yet, it seems that most people I meet want to
attend my real estate training or purchase my real
estate courses that have to do with ‘No Money
Down’ (NMD) real estate investing.Now, that kind of talk just proves the point – you can
reprogram yourself to speak a different language –
even if it doesn’t make sense!A bunch of ‘gurus’ have told you over and over again
that ‘No Money Down’ is real estate investing – even
though you learned at an early age that ‘invest’
means to put money into something and get money
out (see http://dictionary.reference.com/search?q=invest for other definitions – none of them say ‘No
Money Down’…)Now, it’s not that ‘NMD Real Estate investing’ is all
bad – heck, my students and I make several
thousand dollars from these types of ‘Real Estate
investing’ transactions every year, too.Just don’t lie to yourself and say they are ‘real
estate investments’, we know very clearly that these
are simply ‘earned income’ from one portion of your
real estate investing business – the real estate ‘job’
portion – earned while in transition from your
‘corporate job’ to your ‘real estate investing job’ and
on the road to true Real Estate Investing.In other real estate investing articles, I cover some
of the methods and techniques you, too, can explore
while moving from your ‘corporate job’ to your ‘real
estate investing job’ and you’ll learn some insider
secrets for taking that leap quickly.
2008 Internet Real Estate Agent
Happy New Year! Here’s to 2008 being the year for taking your business and personal life to their highest level. The need for people to connect and exchange goods and services has been one of civilization’s ongoing themes. Now, the need for people to get on the internet and search for real estate information is going to increase exponentially. The big question is, not how technology will advance the real estate industry, but rather how will you use it.2008 poses many challenges for the real estate industry and its irrevocable relationship with the internet. How are you positioned to garner your share of targeted real estate leads and marketing potential of the internet? Are you investing in old traditional training techniques of sending out post cards, fancy listing presentation displays and a clever tag line? You already know that marketing to your sphere of influence and past clients is essential. But what other business systems have you implemented for seller or buyer leads?How are you spending your education dollars and time? Now is the time to take action.Search engine optimization and online lead generation is a competitive game, and it is growing more competitive by the day. You’ve read the articles, watched it on the news and read all the press releases. The biggest companies in real estate are investing the lion share of their resources to the internet. No more old traditional training, old school marketing or ideas. Major corporations are dumping money into their internet business in order to compete in the networked society we live in. What are you doing now to further your education and online real estate lead generation business? That’s your challenge in 2008 and beyond.As I’ve stated before, you can still create a very successful online real estate lead-generation business. However, these days are numbered.The Web is big, but it’s a finite resource. Well, more accurately said, cyberspace is infinite, but people will only dig so deep. Real estate Web sites that capture the top spots in the search engines are garnering high quality leads and massive lists of interested buyers and sellers. But, as more and more big-brand companies compete and figure out how to grab high ranking search engine positions, they will slowly but surely elbow out the little guy. It’s the nature of an industry to be “open” to early adopters at the beginning and then slowly close to only those that can afford the great investment of time and money needed to stay competitive. As more and more buyers and sellers use the Internet for real estate research, the “evening and weekend traditional real estate agent marketing model” is fast becoming extinct.If you want to stay competitive in the period ahead, you will need to grab a piece of the Internet action, and now is the time to establish your foothold. You CAN still create a successful real estate online lead-generating business. You CAN still get top spots in the search engines. It’s not too late, but I guarantee if you wait, it soon will be.More and more, I get calls from companies selling real estate leads. They notice I’m everywhere on the internet. My sites rank very high organically for specific real estate search terms and cpc. I also own the right spots on other real estate portals that drive targeted traffic to my listings, my sites and yes…..generate high quality, exclusive leads.I just received a call from a company selling real estate leads. As published in my book, Internet Real Estate Agent: A Guide To Dominating Internet Real Estate Leads and Marketing, there are specific questions you must ask to avoid wasting money and time. After going back and forth with the skilled sales rep., I was able to hone down the basics of how the program works.Here’s how their lead program works:1. A person is watching television, listening to the radio or sees a banner ad online. The add is asking the person to call a phone number to learn about a real estate tax advantage and commission rebate back to them if they buy or sell real estate.2. Pay $60 a month for a zip code.3. Pay 19% referral fee at closing (this gets split between the “lead company” and the customer at closing).4. Here’s the kicker….the leads are given to 7 other agents as well.This real estate sales lead business model isn’t new and many companies have a slight variation to it. Personally, I would never buy leads from this business model. I prefer to create my own exclusive lead systems.Here’s some of the pitfalls with the real estate lead business model you’re being sold.1. Leads coming from TV, Print, radio or the internet that rely on some form of incentive offer are usually very low quality leads. One of the incentive offers is a “commission rebate program”. Need I say more?2. Why pay a monthly fee so you can compete for the lead? Why not get EXCLUSIVE leads that are not incentive leads. You can’t do every lead program on earth, so pick and chose how you spend your money and time.3. I have a hard time paying a referral fee to someone when I’m competing with other agents, given a low quality lead and there’s no personal relationship. That’s not a referral, it’s a lead. No relationship, no history and no commitment from the potential customer to use me. I like paying referral fees to agents that have personal relationships with their real clients. When I get a referral call from another agent, they know the person being referred to me and I get the client. That’s a real referral and qualifies for that big referral fee.4. There are so many ways to generate leads. You should pick and chose the best ways to spend your time and money.After reading Internet Real Estate Agent, you won’t fall prey to poor Internet business models. You may make a mistake or two–I do from time to time when trying something new–but, these mistakes are quickly remedied. You will understand exactly how to improve your real estate website, what to know before buying a real estate website, advanced concepts for Google AdWords, how to market your listings online for more leads, the changing Broker/Agent model and much more. Discover how to set up your own internet real estate lead generation machine. Don’t be dependent on any one company for leads. Get educated and become independent!The book will guide you through a tremendous amount of information and facts, not hype, regarding Internet real estate lead generation and Internet marketing. It’s the lowest cost real estate training and education you will ever spend. It’s all about internet real estate lead and marketing. Keep this book by your side and use it as a trusted reference guide. Start working on your Web site, and then move onto the other areas of online lead generation and Internet marketing. Once you have your online real estate lead-generation business set up, it really will run 24 X 7, by putting the right message in front of the right people, at the right time.Agents and Brokers already know they need to market to past clients and their sphere, but it only gets you so far. They also know the urgent need to embrace the internet. The value of traditional farming techniques is diminishing. The fact is, everyone is mailing something; everyone is doing longer open houses; and everyone is getting into the real estate business. But, hardly anyone is doing online advertising. Even fewer are doing it right. In fact, most agents and brokers attempting to do online lead generation and property marketing are doing it totally wrong. Don’t waste money and time by buying leads from a company that sells false dreams of Internet riches. Take control of your business lead systems and start implementing your plan today.Here’s a short sample from the book:Marketing Your Listings for LeadsThe majority of this book has been on creating a real business Web site, driving quality traffic to your Web site, and converting that traffic into leads. Now let’s focus on how to create more business by marketing your listing online. You’ve worked long and hard to get the listing, now let’s leverage that listing to create more business. For most of the homes I’ve sold, the buyers began by viewing the pictures and details online and then contacted me about a private showing. If you market the property correctly, you will get leads. Using the list of marketing resources below, I average over 2,500 targeted property views for each listing. I get highly qualified internet buyer and seller leads when marketing a property online. Think about that for a second. Online, people are searching for a specific home, in a specific area, in a specific school district, in a certain price range, etc….and my listings are showing up. That’s a ton of quality traffic almost all of it was free.I just read the other day about a Director of Technology who serves on a major MLS board who said the traditional business model of getting leads from holding open houses is almost dead. People are using the Internet for research, and they are contacting an agent long before they enter the house. Based on my personal experience, I agree with this assessment. Having spent many Sunday’s working at open houses, I find it very rare for someone to walk through the door and say “I don’t have an agent.”The following list of ideas will put you in a position to actually make more money from each listing you have. If you don’t have any listings or are new to real estate, I suggest approaching an agent in your office that has a listing and ask if you can do some Internet advertising for him or her. Just be sure to abide by any local MLS rules you have…So here’s to 2008 and enriching your level of internet real estate education and business income.Happy New Year, Cheers!