How to Prepare to Become a Successful Real Estate Investor

Jumat, 15 Juni 2012

Investing in real estate has been one of the building blocks of private wealth for a very long time. It has the potential to make the average man very rich, if he knows what he is doing. Real estate investing not only generates a solid income stream, but also provides a number of important tax benefits.

Any business that promises great profits also includes the possibility of great loss. Most losses are the result of mistakes that could have been avoided. Let's look at some steps to take that can help you be successful.

Step 1 - Educate Yourself!

DO NOT move blindly into real estate investments because the market is glutted with properties that are actually affordable and interest rates are low - or because you suddenly have a sizeable chunk of income that you want to invest.

The keyword in the previous paragraph is "blindly". All of the reasons listed are good reasons for becoming a real estate investor, but do so with your eyes wide open. Learn the system and learn how it can work for you - become a real estate investment master.

Begin at the beginning - dig into the fundamentals. Talk to an expert in the field and find out everything you "don't know." From that discussion develop a list of questions that you need to have answered and go to work finding the answers. With all the information sources we have available today, finding the answers should be fairly easy - possibly time-consuming, but easy.

Talk to everyone you know who has done well with this type of investing, pick their brains. Get them to share their experiences and mistakes they made if they are willing. Ask about books they recommend. Then, begin your research and study through online sources and the old-fashioned way - the public library.

Do not read just one book or watch one set of videos. To be truly educated in any field, you must study different perspectives on each topic and look for critical threads that run through all the material regardless of who the author is. Your understanding will begin to develop and you will slowly develop a solid knowledge base that will help you be successful.

Begin to network with others in the real estate world, agents, brokers and investors. In fact, joining a real estate investment club or taking classes on real estate investments could be fun and extremely useful in furthering your education.

Step 2: Get your finances in order

I am sure that it is obvious, but I am going to say it anyway. Investing in anything requires capital. You must either have personal capital to invest, financial partners that will help provide the capital (and hopefully have some experience in real estate investments), or you must have the assets and a credit history that will allow you to finance your purchases. They all work, but the bottom line is that you must have the financial strength to move forward.

Step 3 - Specialize in the type of real estate that interests you the most

Focus is critical. Don't buy a little of this and a little that. There are so many different types of real estate that without focus, you will not do well. Which area interests you the most - and why? Which type matches your personality, abilities and skills? Your choice should "fit" you and, most important, it must have the potential of helping you reach your financial goals.

If you are a do-it-yourself person with a creative flair and would enjoy being involved in the day-to-day oversight of properties, single family fixer-uppers would be a good possibility. On the other hand, if you have no interest in managing the properties, apartment buildings make more sense because apartment buildings generally have on-site managers that take care of everything.

Step 4 - Have all your ducks in a row before making the offer and finalizing the deal

Once you have decided which type of real estate will be your focus, study that market carefully - in great detail - before making an offer. Gather as much pertinent information as possible, for example, fair market value of the property, recent sales in the area for similar properties (comps), the maximum offer you are prepared to make, and have a valid estimate of expected rental income and immediate costs (renovations, repairs, etc.).

Be prepared for anything that may come up in the bargaining sessions. Make sure you are working with an experienced agent that you can trust. It is always best if the agent has been referred to you by an experienced investor. You may also want to discuss any potential purchase with other trusted advisors such as your financial planner, your attorney and your accountant.

American Millionaires Find St Martin Caribbean Real Estate Appealing: An Overview

Sabtu, 09 Juni 2012

Already a popular vacation destination, Saint Martin is fast developing as a highly profitable real estate market for the upscale property buyers overseas. More and more millionaires and business tycoons from North and Latin America and Europe are interested in the Caribbean real estate market. And most of them find Saint Martin as a prestigious location to own a property. Exemption of annual property taxes has made St Martin real estate market more appealing in the eyes of the foreign buyers.

Villas, condos, houses or cottages - options are aplenty when it comes to buying or renting a property in St Martin. Buyers from abroad often purchase villas on the beachfront and other prime locations on the island and appoint a reliable rental service agency to take care of the property in their absence. These rental service providers place the property to a renting program for tourists and vacationers. Thus the concepts like vacation rental and timeshares are rapidly growing popular in this part of the world.

The most interesting thing about Caribbean vacation rentals is that most of properties come with a host of amenities beyond your expectations. Splurge villas have designer interior featuring beautifully furnished rooms with large glass doors and windows to ensure splendid ocean views from the rooms. Fully equipped bathrooms and kitchens, dining, living, private pool are some of the common features. Private tennis court, golf ground and private beach areas in Caribbean villa rentals offer the taste of an extravagant lifestyle.

There are a number of reliable real estate agents in St Martin. Whether you want to buy or rent a property contacting through agents prove convenient. They have their own property listings with elaborate details of each and every property. Going through their websites makes your property search easier and faster. Their highly professional service makes your property buying or renting a hassle free experience.

However, there are some rules and regulations for buying properties in St Maarten/St Martin. Interested buyers should know the terms and conditions for purchasing a land or a property. But law is flexible and influenced by European property buying laws and system. Foreigners are allowed to buy property in the island but they need to produce a residency permit at the time of purchase. It can be non-working permit or working residence proof or visiting vacation permit applicable for 90 days. Buyers have to pay Notary fees, transfer tax and property registration tax.