Options as a Strategic Investment » Real Estate http://optionsasastrategicinvestment.com Using options as a major part of your investment strategy Sun, 28 Feb 2010 09:09:33 +0000 http://wordpress.org/?v=2.8.4 en hourly 1 Panama Real Estate Investing http://optionsasastrategicinvestment.com/panama-real-estate-investing http://optionsasastrategicinvestment.com/panama-real-estate-investing#comments Sat, 09 Jan 2010 21:19:06 +0000 admin http://optionsasastrategicinvestment.com/panama-real-estate-investing The time to invest in Panama real Estate is now. Panama Real Estate is experiencing and unprecented boom and there are many foreigners. The real reason this Central American Country is attracting tourist is that panama real estate is at such a bargain compared to the US beachfront or mountain properties it provides the perfect opportunity for investment for retirement living. Panama beaches boast untouched pristine sand and gently curling waves. Panama is also one of the best, if not the best, residency deals in the world today.

Offshore

It is debatable if Mexico is cheaper than Panama but they do tax offshore income in Mexico so it is probably more expensive for this reason alone and the crime situation makes it hazardous. Costa Rica is not really cheaper and has a serious crime problem plus there are no longer benefits for Expats and you would have to pay income tax on your offshore income like retirement, social security etc in Costa Rica. Unless you open a business that does business in Panama within the local economy or take a job in Panama you can plan on your income being tax exempt as offshore income.

Investment

The real estate investment in Panama is increasing because of the natural beauty of ocean view property in Panama. Don’t let your real estate agent tell you where to buychances are, they’ll be pushing you into the investment where they get the biggest or fastest commission check. As more and more people discover the Azuero Peninsula Panama investment in this area continues to increase. Everyday more and more people are making an investment in Real Estate in the Azuero Peninsula of Panama. The Azuero Peninsula Panama should be on the list for all those seeking excellent investment opportunities and a tranquil, beautiful living environment. The coming year is looking good for recent investments in Panama’s real estate and tourism industries. Here are a few reasons why Panama real estate is a boom in investments: Panama has a stable government and an economy growing greater with time.

Panama Beach Property

The beach is ideal for swimming, snorkeling, and just relaxing. Real Estate Values in Panama and primarily in these Pacific Coast Beach areas has been appreciating very steadily, and as interest and growth increases so to do the real estate values. Real Estate in the Azuero Peninsula have unimaginable views, access to unspoiled beaches, and all for very affordable prices. This Azuero Peninsula Ocean View Real Estate is only a distance to many excellent beaches.

The arrival of Nikki Beach may attract a new crowd to Panama. However, the concept of Nikki Beach is quite distinct from these other groups. Nikki Beach is focused towards an exclusive market: People over 30 with purchasing power that want to have a good time in an exotic, unique environment. Nikki Beach is exclusive property of Michael Penrod and his family, though at some of their clubs and hotels they do maintain strategic alliances with local investors. Regarding waterfront property, by law all beaches are public hence all beach-front properties must provided a right of way, starting from the highest tide line to the property line.

Living

Panama has one of the lowest costs of living in all of Central and South America. When thinking of the best places to retire, it is important to understand that Panama has a very low cost of living combined with amazing beaches and scenery that propels Panama to the number one spot to consider for those wishing to retire abroad. There are numerous benefits to living the Expatriate lifestyle. Town Living – There are nice neighborhoods that offer convenience and proximity to shopping and restaurants.

Legal

Factor in obscure Panamanian laws, crafty scam artists, andthe newcomer’s relative inexperience to Panamanian culture, and thefirst-time investor is faced with a troublesome and confusing puzzle. A lot of legal problems arise with use rights and this includes litigation. Once your attorney has confirmed the property title is legal and free of liens or other restrictions, the final closing is scheduled and the buyer/seller signs the final Buy/Sell Contract. The law does not require a Buy/Sell Contract to be in Spanish to be legally enforceable.

Retirement

There is something for every taste in retirement living in panama real estate. A welcoming community, safe environment, low crime statistics, excellent incentives for retirees, together with the natural beauty and ethnic diversity that is Panama, all appeal to the increasing number of baby boomers from North America and Europe who are looking for a different option for retirement. During the past several years Panama has been consistently rated in the top ten for the best retirement locations worldwide. With a little homework and due diligence, you will find that Panama has all the criteria for a solid investment or retirement destination.

Impacts of the Panama Canal

The Panama Canal is also about to undergo an expansion. Now Panama a country of 3 million people has an annual income of one billion dollars from the Panama Canal revenue. The Canal expansion, another major boost to the economy, is expected to bring tens of thousands of new jobs along with long-term incremental revenue for the country. With the expansion of the Panama Canal there are a lot of high paid executive coming through for a short time. Panama is a hot tourist destination for many reasons, least of which is the Panama Canal, though it’s certainly still a popular visitors site. If the project of building the extra canal goes through it is expected to result in an apartment shortage due to extra workers being sent here by their companies which of course means you could buy an investment unit furnish it and rent it out for big bucks for many years while the new canal is being built, not kidding about this.

Panama Real Estate is a great investment. Panama is currently one of the most considered and researched locations with many investors. Panama could be the new destination for this exclusive market of “jet setters. Panama’s modern amenities are similar to that of North America, making life a bit easier day to day. Panama has one of the lowest costs of living in all Central and South America. Panama real estate is hot right now…don’t wait to stake your claim.

]]> http://optionsasastrategicinvestment.com/panama-real-estate-investing/feed 0 Spectrum Of Loan Programs http://optionsasastrategicinvestment.com/spectrum-of-loan-programs http://optionsasastrategicinvestment.com/spectrum-of-loan-programs#comments Thu, 31 Dec 2009 21:18:15 +0000 admin http://optionsasastrategicinvestment.com/spectrum-of-loan-programs If you were to rate every possible loan program on a scale from the most conservative to the least conservative, you’d have the 30-year and 40-year fixed amortizing loans on the conservative end and the negative amortization variable-rate loans on the opposite side. Those are the two extremes.
On the conservative end, you’re paying off the loan at a fixed interest rate. Nothing changes. Your payment is exactly the same each and every month, for 30 or 40 years. That means you make the exact same payment today as you will in the year 2036, or even 2046.
On the aggressive end, you’ve got a loan where your payment isn’t even enough to pay the interest on the loan! So the size of the loan is actually getting bigger each month. To make matters worse, the underlying interest rate is variable. That means you can’t even plan the extent to which your loan balance is expected to grow.
We’ll take a look at the whole spectrum but first, we need to examine the interest rate structure. The 30-year fixed mortgage is one of the most conservative options available. It has the least amount of risk. Well, for the bank, the opposite is true. By reducing risk for the borrower, all the market risk is transferred to the bank. If interest rates sky-rocket, the bank cannot change the rate on your mortgage. It’s fixed. They also can’t “call” the loan because you’ve got a full 30 years to pay it off. So the bank could be making more money but they’re stuck with you and your low fixed-rate mortgage.
That’s a risk the bank takes when it gives you a fixed-rate mortgage. And as a result, the bank charges a premium for 30 or 40-year fixed mortgages. In fact, all other things being equal, interest rates get higher when you fix them for a longer period of time. An interest rate that’s fixed for 5 years will be slightly higher than one that’s fixed for only 3 years. A 7-year fixed is higher than a 5-year fixed. A 10-year is higher than a 7. A 15-year is yet higher and a 30-year fixed interest rate has traditionally been the highest. Of course, recently, the lending community has come out with the new 40-year mortgages. When fixed for the full 40 years, the rate is slightly higher than the 30-year. You pay for the luxury of a fixed interest rate; the longer it’s fixed, the higher the rate is.
Remember: “all other things being equal.” That’s what we’re talking about here. Given the exact same credit, income and assets; given the exact same closing cost structure; given the same down payment or equity; the interest rate will be higher as you fix it for a longer period of time. There’s no question that rates could be higher or lower if other things in the file are different. For example, if you’re comparing a 2-year fixed Subprime loan to a 5-year fixed A-paper loan, the 5-year fixed would have a lower rate than the 2-year Subprime but there are big differences between A-paper and Subprime loans.
The 30-year fixed is, historically, the most conservative choice. You pay for that security with a slightly higher interest rate but the risk is extremely low. The new 40-year mortgage is now increasingly common and by amortizing the loan balance over a longer period, it allows for slightly lower payments. Both of these loans have traditionally required “amortizing” payments; that is, they include both principle and interest.
Recently, the option of a 10-year Interest Only period has been introduced. The rate remains fixed for a full 30 years but you only have to pay interest for the first 10. If you think about it, there’s no reason to have a 40-year loan if you also select the Interest Only option. If you’re only paying interest, the amortization period become irrelevant. Either way, you’re only paying interest. The difference would show up after the Interest Only period expires. With a 30-year loan, the remaining amortization period would be squeezed into the last 20 years. With a 40-year loan, you’d still have a full 30 years to pay the principle down.
Now, how many of us actually plan to spend the next 30 or 40 years in the same house? Perhaps some of us are but the majority plan to move into a different place sometime before 2036 (30 years from now). The trick is to balance the fixed period with the length of time you intend to stay in the property. There’s no sense fixing the interest rate for a period of time when you’ll no longer have the mortgage. There’s no sense paying for a luxury you’ll never benefit from.
In today’s marketplace, you can fix an interest rate for 1 month, 6 months, 1 year, 2 years, 3, 5, 7, 10 years, 15, 20, 30 or even 40 years. So take a minute and think about how long you intend to stay in your current property. 5 years? Maybe 7? If that’s the case, you should only fix your interest rate for 5 or 7 years; maybe 10, just to be safe. That way, you’ll get the lowest interest rate possible while still getting the security of a fixed interest rate for the period of time you expect to keep the mortgage.
Most of these loans – the ones that are only fixed for 3, 5, 7 or 10 years – still have a full 30-year term. The payment is still calculated as if it was a 30-year amortizing loan. Again, if you select an Interest Only option, the amortization schedule becomes irrelevant. It doesn’t matter; you’re only paying interest anyway, at least until the fixed period expires. But for an amortizing loan, the payment is based on a 30-year amortization period and is completely fixed during the initial fixed period. After that, the rate changes to an index plus margin and the loan becomes variable. The margin never changes but the index can move up or down depending on trading activity in the bond markets.
In what circumstances should you select an Interest Only mortgage? Many homeowners today are stretching to make their monthly mortgage payments. Home prices have risen much faster than salaries, so it’s a bigger strain on homebuyers than it was years ago. If you select an amortizing mortgage, you’re basically putting yourself into a forced savings program. Any money you put towards your principle increases your equity. You get all that money back when you sell the house because your loan balance will be lower than it would otherwise, leaving you with more equity. An amortizing mortgage is definitely the ‘conservative’ choice.
On the other hand, you can look at an amortization schedule and see how much of the principle you actually pay down during the first 5 years of a 30-year mortgage. Not much. If you’re only planning to stay in the property for 5 years, the difference in your equity is fairly minimal. Meanwhile, paying interest only would reduce your monthly payment. In California, Interest Only mortgages are extremely common and they definitely serve a purpose for those homeowners who are planning to get into a new, perhaps bigger, property within a few years.
The important thing to remember, obviously, is that your original principle balance never gets any smaller. In that sense, you’re basically renting the house and banking on appreciation to build equity. During the past 10 years with house prices rising between 10 and 20% each year, this strategy has paid-off handsomely. But what happens when the market starts going sideways as it is today? What happens if prices remain the same or even go down a bit?
Also, consider the fact that you’ll have to pay 5 or 6% real estate commissions when you sell. If you put 20% down on a house and only pay interest for 5 years and if house prices remain stable, you’ll actually lose money on the deal. You’ll start with 20% equity. If you end up paying 5% real estate commissions, you’ll sell the place with only 15% equity (20%-5%) so you’ll have less money after you sell the place than when you bought it 5 years earlier. And that doesn’t include the closing costs associated with the original purchase. Those generally run about 2% so you’d end up losing 7% of the house’s value during the 5-year period.
If the place actually drops in value, the situation gets even worse. I recently spoke with someone in this situation. He bought a place 10 months ago and can’t keep up with the mortgage payments. His situation is even worse because he’s got a prepayment penalty in his loan. Meanwhile, his home hasn’t appreciated a cent. Between real estate commissions and the penalty, he’ll be out over $35K if he sold today (he originally did 100% financing). If he rents it out, he’ll still be under water about $1500 per month. Either way, he’s in a bad situation. You have to be careful. Profit is not guaranteed.
That brings me to the last major loan program; one that is gaining in popularity. It’s a bit scary, actually, because this last type of mortgage is the least conservative of the bunch. It’s called an Option ARM and it gives the borrower a choice of 4 different payment options each month. They can pay a minimum payment which is based on an artificial starting interest rate of just 1%. They can pay the Interest Only payment. They can pay the 30-year amortized payment or they can pay the 15-year amortized payment – the highest of the 4.
We’ve all heard about these 1% mortgages. They’re heavily promoted and most of the marketing is deceptive. I personally believe that less than 10% of the people who get into these loans truly understand what they’re getting into. There’s no research to support that – it’s only my opinion. Let’s take a closer look and unravel the hype surrounding these loan products. Believe me; they’re not as great as they may appear.
First off, rates have never been 1% and they never will be. 1% is a marketing label that helps sell loans. They calculate the payment assuming a 1% start rate, but this minimum payment is less than the Interest Only payment. You’re under water right from the start. The difference between this minimum payment and the Interest Only payment is referred to as “deferred interest” and it gets added to your mortgage balance each month. It’s called Negative Amortization and it erases your equity every time you make that low minimum payment.
The next thing is that these loan programs are not fixed. They’re variable right from the first month. The minimum payment structure is indeed fixed for the first 7 years (in most cases), but that’s an artificial payment – a Negative Amortization payment. Those minimum payments don’t reflect the true interest rate at all. The underlying interest rate on these loans is variable and can change every month.
Third, the 30-year amortized payment is not fixed either. When people hear “30-year”, they automatically assume “fixed”. That’s not the case here. There’s a big difference between “amortized” and “fixed”. With a variable interest rate, the 30-year amortized payment changes each month. And these days, it’s probably getting higher, not lower.
We have to admit that there is value in these programs for people who fully understand them. In an appreciating real estate market, they can make it easier to maintain an investment property or provide flexibility for someone with an uneven income stream. But if the real estate is not appreciating, these programs erase your equity and destroy potential profits. So be careful.

]]> http://optionsasastrategicinvestment.com/spectrum-of-loan-programs/feed 0 Mexico Mortgages; an Upward Trend for Investing in Real Estate South of the Border http://optionsasastrategicinvestment.com/mexico-mortgages-an-upward-trend-for-investing-in-real-estate-south-of-the-border http://optionsasastrategicinvestment.com/mexico-mortgages-an-upward-trend-for-investing-in-real-estate-south-of-the-border#comments Sat, 26 Dec 2009 22:44:27 +0000 admin http://optionsasastrategicinvestment.com/mexico-mortgages-an-upward-trend-for-investing-in-real-estate-south-of-the-border Mexico mortgages are becoming more popular as an option for non-Mexicans to buy their property south of the border.  TopMexicoRealEstate.com/blog, a popular blog site helping new buyers to safely acquire real estate in Mexico, is now guiding people to learn more on the financial options available through programs offered by multi-national companies such as Stewart Title.

 

With years of experience down in Mexico in ensuring safe real estate transactions through their services such as title insurance, escrow services and closing coordination activities, the Stewart Title group has now opted to include a strategically complimentary product being that of Mexico mortgages.  “Loans obtained by Americans, Canadians, and Europeans have represented less than 10% of the purchases for second homes in Mexico. If you include to this scenario the current U.S. credit crisis, the access to financed capital has reduced substantially across the board” states

Ivan Castillo regional manager of Stewart Title of the Yucatan Peninsula, but quickly adds “Financing in Mexico using the Mexican property as guarantee has become more readily available through the services that we offer, with interest rates that have become very accessible in the last several months.” 

 

The program has been designed to ensure a simple and efficient process for the American, Canadian or European to obtain approval for loans with clarity and with ease of mind.  Working with several lenders, the group is able to find various programs that best suit the borrower and his needs with an increased probability of qualification for the Mexico home mortgage.  “This is where our network of offices and years of expertise comes to play” added Ivan Castillo.

 

Mexico mortgage loan options

 

Mexico Home Purchase Loans

 

Refinancing your Mexico Property

 

Property cash out (raising cash on a percentage of the total amount qualified from your property)

 

Construction Loans

 

Lot loans are also available

  

The loans are offered against the collateral on the property in Mexico and the lenders are located in either the United States or from Mexico.  Fico scores of 680 or above with the requirement of making a down payment of 25%.   

 

 

There are estimates that nearly one million Americans have already purchased a home or future retirement property down in Mexico.  This amount is projected to increase as more Canadians and Americans begin retiring in the next decade.   New services and tools to help this expanding market obtain and maintain their Mexican homes will become more accessible with the years.  This can be seen with companies such as Stewart Title whose new program has been introduced with their adjustment to the market and projection of substantial increases in the amount of Mexico Real Estate property acquisitions that will begin utilizing these new channels and sources of financing. 

]]> http://optionsasastrategicinvestment.com/mexico-mortgages-an-upward-trend-for-investing-in-real-estate-south-of-the-border/feed 0 Marketing Methods Used in Real Estate Investments http://optionsasastrategicinvestment.com/marketing-methods-used-in-real-estate-investments http://optionsasastrategicinvestment.com/marketing-methods-used-in-real-estate-investments#comments Thu, 24 Dec 2009 21:21:51 +0000 admin http://optionsasastrategicinvestment.com/marketing-methods-used-in-real-estate-investments Finding motivated sellers of real estate property is a challenging task. One has to be innovative & enterprising to locate motivated sellers.Unique Marketing Methods to Find Motivated Sellers:Magnetic Car Signs:You can use your car for this purpose. If you have seen magnetic signs made for your cars expressing your desire to buy homes along with phone numbers, prospective sellers will get in touch with you. You can have similar signs in all the cars of your family members.Door Hangers:You have to create door hangers which suggest that you are interested in buying houses, which should display your phone numbers also. Children of the neighborhood can be utilized for this purpose. This gives direct publicity & word of mouth advertising. As negative fallout, some house owners may get angry. You have to manage the situation. It may bring positive feedback too.Service Professionals:You can print business cards detailing your intention along with e-mail id/phone number/fax number & distribute them to service professionals like electricians, plumbers, painters, masons, etc. there may not be immediate response. But, they may be useful at a later date.Local Internet:Include your website address in all your business cards, flyers, newspaper ads & the like. You should advertise your services on local Internet websites such as community website, local newspaper sites & other websites belonging to local organizations.Annual Promotion:Promotional campaigns every year will boost up the prospects of locating motivated sellers. Something like a big billboard can be placed in a strategic area at a vantage point. It should catch the attention of the passersby. Radio or Television shows may help you in promoting your business. Seminars or symposia can be arranged to publicize your business. The expenditure for all these ventures will be quite high. But, this will bring a fortune. It will shoot up your real estate investment options. Many motivated sellers will knock at your door. People who are new to the profession need not spend huge sums for promotion campaigns. They have to establish in the business initially with a few deals & jump into the foray of big business when the atmosphere is very conducive.For more details, please visit:http://realestatewealthtoday.com/FREE-eBook.htmlThis is a day of online trading. Almost all branches of business activity employ Internet for their business promotion. Real estate is no exception to the trend of online marketing. A good number of house owners search Internet when looking for perfect property. Real estate owners must have an effective web presence.Internet has brought about dramatic & significant changes in the real estate industry. This is to be noted by real estate agents & investors. It is simply astonishing to know that there are over 20 lac hits everyday for the keywords “Real estate” in the major search engines such as Google, Yahoo & MSN. The real estate business will remain open 24/7. The prospects of business promotion will be tremendously bright. You need to ensure that it is placed high on the scale within the results pages of the search engine.If a potential property buyer has to click in your site, you need to appear, normally, within the first two pages of the results. The reason for this is 80% browsers stop with the first page & 95% of the browsers do not cross the second page. So, if your site is not ranked within the first two pages you may not get sufficient business promotion. Through Internet marketing, it can be achieved.Advantages of Internet Marketing: * It offers quicker solutions. * Clients can easily reach their avowed targets. * Most of the younger generation are net-savvy & they can clinch the deal using Internet. * Websites have become more popular than literature, thanks to Internet.So, prospective sellers & expectant buyers – both of you can get the deal performed through Internet.

]]> http://optionsasastrategicinvestment.com/marketing-methods-used-in-real-estate-investments/feed 0 Ways to Profit from Investing in Real Estate and Land http://optionsasastrategicinvestment.com/ways-to-profit-from-investing-in-real-estate-and-land http://optionsasastrategicinvestment.com/ways-to-profit-from-investing-in-real-estate-and-land#comments Mon, 21 Dec 2009 21:11:47 +0000 admin http://optionsasastrategicinvestment.com/ways-to-profit-from-investing-in-real-estate-and-land In today’s competitive world, land is shrinking fast and population is multiplying by many scores. The need for new houses and land is thus rising and today there is no other option but for making for an investment in the real estate and land market. Once you purchase a property or land, the value of it cannot decrease below some level on the contrary the thriving economy demands more land and more properties. There are fewer disadvantages and far greater returns in investing in the real estate and the land market.
In order to make the most of your real estate investment all you have to do is just waiting and that is the mantra of high profit in this industry. Buying at low value and selling at higher prices is the basis rule of profit in this hot market of today’s world. The real estate and the land market have witnessed tremendous growth not only in the developed countries but also in other countries where the economy of the nations is at an all time high.
Profit in the Real Estate Investment
Real investment in areas like commercial real estate, boarding houses, mobile homes, rental houses, and many other areas have become popular with the real estate professionals. The buyer and the seller in the real estate market profit equally well. In order to reap maximum profits from your investment in the real estate investment there are some qualities that you should possess. Abilities like, a thorough knowledge of the market, the ability to know the needs of the customers, and capacity to see in the future that is you should be able to comprehend the future market trends in the industry.
Selling the property that is bought is not the only way to profit in the real estate rather one should buy the property hold it maintain the property so that the net worth of the property increases over time and then you can sell it for a good profit. For example if you hold rented property and the rent is on time by the boarders and you maintain the property regularly with the rent being paid increases the value of the property and also the net worth of yours.
The other way to profit in the investment of real estate is buying a property that can attract the potential customer. It may be that one buyer may be repelled by the location of the property while some other will pay whatever amount to have the property. This fact points to your ideal selection of the property and its other attributes like its maintenance, the number of rooms, the spaciousness of the property and other factors.
Profit in Land Investment
Land investment market is today considered more lucrative than the real estate investment. The land investment market does not depend on the housing market and the government policies. All the investor needs to do is to buy a strategically positioned land and wait for the right time. Land that has bee declared for residential use, amenities, good road accessibility, things like nearby schools, markets, and hospitals should be looked for having a good return on investment in your land. The investors can even decide to develop the land all by themselves and that is the most profitable way to earn great ROIs on your land investments.

]]> http://optionsasastrategicinvestment.com/ways-to-profit-from-investing-in-real-estate-and-land/feed 0 Beginning Real Estate Investing: How does Real Estate Investing Work http://optionsasastrategicinvestment.com/beginning-real-estate-investing-how-does-real-estate-investing-work http://optionsasastrategicinvestment.com/beginning-real-estate-investing-how-does-real-estate-investing-work#comments Mon, 21 Dec 2009 09:27:18 +0000 admin http://optionsasastrategicinvestment.com/beginning-real-estate-investing-how-does-real-estate-investing-work How does real estate investing work?

Simply buying real estate is not real estate investing.

 

Strategically sorting through many properties for sale and purchasing that one in many that meets your goals. Every real estate transaction should have one or more of the following to be called real estate investing, rather than real estate speculation:

 

Here are 4 simple tips to keep in mind as you begin to educate yourself in the process of real estate investing:

 

 

An option to spending countless hours educating your self on the best property to purchase an alternative for many investors is to hire (some call to action – visit http://www.equityteam.com)

]]> http://optionsasastrategicinvestment.com/beginning-real-estate-investing-how-does-real-estate-investing-work/feed 0 Realestate: Types of Investment Properties http://optionsasastrategicinvestment.com/realestate-types-of-investment-properties http://optionsasastrategicinvestment.com/realestate-types-of-investment-properties#comments Fri, 18 Dec 2009 09:47:03 +0000 admin http://optionsasastrategicinvestment.com/realestate-types-of-investment-properties Investing in realestate can be profitable and rewarding. Before diving in to the investment game, it is important to become educated about the various types of properties and risks associated with each. Additionally, investors should develop a strategic plan prior to purchasing their first property.

Two primary realestate investment options exist. The first involves purchasing properties outright, while the second involves purchasing shares of real estate investment trusts (REIT). This article focuses on buying real estate outright and summarizes the various types of properties and how to earn profits from each.

With the exception of REIT shares, all realestate falls into the category of either residential or commercial properties. Residential realty includes single family dwellings, individual condo units, mobile and manufactured houses.

Commercial properties include apartments and condominium buildings, retail outlets, shopping malls, restaurants, and office complexes. Vacant land can fall into either category based on local zoning laws for use of the land.

Vacant land can be an exceptionally lucrative realestate investment. Raw land can be used for erecting commercial office buildings, shopping malls, or developing residential communities, as well as ranching and farming purposes. Vacant land located in rapid-growth areas can quickly increase in value.

Residential realestate is the most popular type of investment property. The majority of real estate investors begin by purchasing a single dwelling home to be used as rental property or for house flipping.

Rental realestate can offer a decent return on investment, but it can take ten years or longer to turn a profit. In the interim, investors are stuck with the headaches of being a landlord or the expense of hiring a property management group to oversee the property.

One option to overcoming these duties or expenses is to offer the realestate under a lease-to-own contract. Buyers provide a down payment and reside in the home as a tenant. A percentage of the rental income is contributed toward the purchase of the home. Lease-to-own contracts typically last two or three years; allowing the buyer time to develop sufficient credit to obtain a conventional home mortgage loan.

Lease-to-own contracts can allow investors to quickly generate profit from their realestate investment. Legal contracts should be drafted by a real estate attorney. Investors must submit specific documents to the IRS when engaging in rent-to-own properties.

Another well-liked realestate investment is flipping houses. House flipping requires the ability to spot a good investment property and purchase it below market value. Most realestate purchased for flipping require repairs and renovations. Investors should have access to a team of qualified experts who can make repairs quickly and efficiently. After repairs are made, investors must be able to sell the property quickly in order to turn fast profits.

The goal of rehabbing distressed properties is to buy, fix and sell within 60 to 90 days. This can be a lofty goal for unseasoned realestate investors.

Rental properties and flipping houses are just a few investment opportunities. Commercial investments are typically more profitable than residential realestate, but carry considerably higher risks.

Taking time to understand the pros and cons, legal liabilities, and property types can help investors develop solid strategies that generate steady cash flow. Going in blind can cost investors time and money and place them at risk for lawsuits or bankruptcy.

]]> http://optionsasastrategicinvestment.com/realestate-types-of-investment-properties/feed 0 Investment Opportunities in North Cyprus http://optionsasastrategicinvestment.com/investment-opportunities-in-north-cyprus http://optionsasastrategicinvestment.com/investment-opportunities-in-north-cyprus#comments Mon, 14 Dec 2009 10:34:21 +0000 admin http://optionsasastrategicinvestment.com/investment-opportunities-in-north-cyprus North Cyprus Real Estate Sector keeps attracting an increasing number of customers and investors from overseas due to favourable climatic conditions of the Mediterranean and strategic location of the island on the crossroads of 3 continents, comparatively low prices and the prospect of successful investment with high profit generation, a large amount of offshore zones and easiness of country entrance (no visas needed). No wonder the amount of construction, consulting and real estate companies flourishing on the island does not surprise anyone.

 

The NorthernLAND company offers residential, commercial and private projects of different types: villas, bungalows, apartments, penthouses, stores, offices and restaurant buildings. Buying at NorthernLAND guarantees a stress-free purchase, quality and satisfaction.

ABOUT NORTHERNLAND 

NorthernLAND is a Construction and Development company with offices in North Cyprus and England. The reputable company with many years of experience has launched over 300 commercial, residential and private projects of high standards and quality and has got an impressive number of happy customers. The company offers projects of original designs in picturesque places of Famagusta, Iskele, popular Bogaz , Kyrenia and marvellous Karpaz regions.

 

Within our clients we suggest 3 large groups:

 

1). Clients purchasing residential property with the purpose of residing in North Cyprus. Among these customers many are British citizens; quite a number of them are retired. They love the slow peaceful pace of life and the lovely climate here, big amount of historical places, local cuisine, high standards of medical services.

 

2). Clients purchasing property as an alternative variant, holiday type houses (with good rental opportunities). This group predominantly consists of capital citizens and big city dwellers. People come from London, Moscow, Saint-Petersburg, Almaty. A big part is constituted by foreign students who come to North Cyprus to study. There are 5 big University complexes in Northern Cyprus, where the language of education is predominantly English. Rental prices are comparatively high here. That is the reason why many of them choose to buy properties, and some of them join the first group by the end of their education.

 

3. Investors, buying projects (apartment blocks, shopping centers, restaurants, casinos, hotels and so on).

 

Each of our clients follows certain aims and objectives, and we are trying to find optimal variants for all of them. It includes design, location, quality of materials and work, meeting construction deadlines, flexible payment options.

 

How NorthernLAND works?

 

Above all, QUALITY is our priority, and our satisfied customers are our main marketing tool. Nothing sells better and is that much cost-efficient than favourable comments and recommendations.

 

‘We offer a wide range of services from architectural design and planning to judicial and consulting services’-tells one of  the owners and the company’s director  Ahmet Cennetoglu. We are practising personal approach, trying to find an optimal variant for every client, regarding their preferences and tastes.’

 

POSSIBLE VARIANTS:

 

·          Our Designs, your choice.

 

        In this case the client chooses a project within existing designs. If it is an ‘off-sale’ purchase, alterations  in the interior and       materials are possible.

 

·          Your design, our approval

 

Our architects and engineers will carry out necessary investigations, check and correct  the design taking into account the area peculiarities and it’s size according to the planning regulations.

 

·          Your wishes- Our Design. 

 

In this case our specialists will create an original design according to the customer’s wishes, and will step by step implement it to reality. Our architects keep consulting with the clients on every step, and as a result  various interesting and very individual projects are brought to life.

]]> http://optionsasastrategicinvestment.com/investment-opportunities-in-north-cyprus/feed 0 Techniques to Aid in Real Estate Investing Success http://optionsasastrategicinvestment.com/techniques-to-aid-in-real-estate-investing-success http://optionsasastrategicinvestment.com/techniques-to-aid-in-real-estate-investing-success#comments Wed, 09 Dec 2009 09:55:27 +0000 admin http://optionsasastrategicinvestment.com/techniques-to-aid-in-real-estate-investing-success Through real estate investing, almost 90 percent of the people who belong to the rich and the famous have earned so much in one way or another. More so, for those who weren’t able to achieve a wealthy life through property investing is now using real estate as a vehicle for preferred investment to be able to create increased wealth or protect the money that they already have. There are actually five techniques to be able to have successful investing. After pondering on these methods, you will realize that it is easy to engage in real estate investing.

1. Use your time wisely.

Right now, how do you spend your time? A lot of people indulge in working and some waste their day through sleeping. If you belong to the type who wants to sleep a lot, then it is time to put your nothingness into use. Through investing in real estate, a person can spend at least four hours a day investing and making the most of it. There are things that people need to do especially with loved ones, that would be fine. But apart from spending time with families and friends, idle times call for much opportunity in real estate. People who are currently rich are those who seldom spend their time glued to the tube. Giving a parcel of your time to investing will bring about numerous benefits.

2. Use your money.

Instead of spending your money and getting nothing in return, it’s about time to make better use of your money. Some of the richest people in the world don’t spend their money and see it go to waste. They invest in real estate. They know that making your money revolve and watching it grow is much better that leave it at a steady state. This is one of the most important things that one should learn in order to release you from the rat race.

3. Set reachable goals.

Goals that you set should be within your reach otherwise it will be exhausting on your part doing a lot yet not reaching anything. Goals should be set so as not to go astray in life. There is just a limited chance that you will be successful with this kind of endeavor but if you set certain goals, you have high chances of succeeding. You have to see yourself as someone and not just anyone in the future. Furthermore, you must have a plan and a clearer view on how your investment will turn out.

4.  Strategize.

Like what was stated above, to be able to reach the goals effectively, one must plan ahead. Planning is the best strategy one can do. In planning, you see how things should be done and how things must turn out. A goals has no worth without proper planning, and with planning, the different strategies are mapped out. When you plan, do it with a lot of options and a lot of considerations just in case something unexpected happens, you would know what to do and will not be hindered in achieving your goal.

5. Be a people’s guy.

If you don’t like to mingle with the common, then investment is not meant for you. You must have deftness in appealing with the masses to be able to get their sympathy and maintain a well-natured business with you. If you show how amiable you are when it comes to communicating, investors will have confidence in you and will eventually trust you.

Real estate investing would not live without charm and respect.

]]> http://optionsasastrategicinvestment.com/techniques-to-aid-in-real-estate-investing-success/feed 0 How to Get the Most Out of Your Preconstruction Investments http://optionsasastrategicinvestment.com/how-to-get-the-most-out-of-your-preconstruction-investments http://optionsasastrategicinvestment.com/how-to-get-the-most-out-of-your-preconstruction-investments#comments Mon, 07 Dec 2009 21:30:07 +0000 admin http://optionsasastrategicinvestment.com/how-to-get-the-most-out-of-your-preconstruction-investments Investments in preconstruction properties are the building blocks for a solid portfolio in the real estate business. So once you are in the real estate business, investments like these need to be pursued, as they can reap sizeable profits. The preconstruction investment business is lucrative, as the tricks of the trade are fairly simple and easy to learn. However, in order to strike good deals and maximize your profits, let’s take a look at the approach you ought to take.

Strategize your preconstruction investment. This is the key to obtaining maximum returns. Nothing beats a well-organized plan of action, so here are a few points to be considered while following a strategy that can provide you with the best opportunity to make money.

The primary factor to be considered for a preconstruction investment would be to set the criteria of your investment objectives. Simply making a quick buck is not the professional approach to make profits in the preconstruction investment business. You need to scrutinize the investment objectives, only then can you determine the best way to clinch the deal. Once the criteria are set, you can narrow down on deals that meet your specifications. Thus you save a considerable amount of time rather than pursue deals that turn out futile.

Once you have zeroed in on the properties you want to invest, it’s time to make an analysis. A thorough inspection of the preconstruction property must be made. Find out the likely returns by conducting a property market research for that area. Take the help of a broker to evaluate the pre-construction as well as post construction attributes of the property. Make sure that all the documentation is legal and basic amenities like electricity, water supply, sewage facilities etc. are available. These are the factors that will affect the resale value and consequently your profit margin.

To see a video from Kim and Charles on their Virtual Real Estate Investing systems click below: http://www.audioacrobat.com/playv/Wjk1ZC6f

It is imperative that you check the credentials of the builder, as investment into preconstruction property relies on the builders blue prints and drawings for the proposed construction. Examine the source of finance of the builder, if there is any doubt then the property may prove to be risky. Another factor that is important is timing. If possible try to clinch the deal before it is out for sale to the public. This way you can get the property at a discounted price and then sell it for handsome returns. After the initial preconstruction sale is over, the builder usually raises the price of the real estate, which will bring in good returns for you as a preconstruction investor.

Networking plays a crucial role in making profitable investments into preconstruction properties. Join other investors in the same business. This will help you gather valuable information on any market fluctuations. Based on this knowledge you can make informed decisions in the appropriate place at the right time. Once the construction is complete, it is most likely that prices could be high enough to tempt you to sell. You still have the option to hold on and rent out your property, which will add to your monthly income.

While you set out in the preconstruction investment market, formulate the best plan to get the most out of the deal. Do keep in mind that this segment of real estate investment assumes a rising market, so analyze the market well and rake in the cash profits at the right time.

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