Is Commercial Real Estate Investing For You?

Posted by admin on January 28th, 2011


The two major issues that stop investors from pursuing commercial real estate deals are no time and no money. In my experience, I’ve started off with practically none of these resources available to me, but as I broke these barriers my investing career started to flourish and I became a millionaire in under four years. You can sure bet that I’m glad I got started and once you start seeing results, I know you’ll feel the same way too.

There are many real estate gurus who will tell you that you need to commit many hours per week in order to get your real estate business off the ground. Lots of time commitment with no pay off is a quick path to failure. Why? It’s hard to stay committed enough as it is and if you start to feel like you’re spinning your wheels and not getting anywhere, it becomes easier to say that investing is not working out especially when you’ve got other commitments and priorities you’d rather be doing.

While you do need to invest some time in moving forward, it’s not as much as you think it is. Start with doing something you can do regularly and stick with it until you see results. Now you do need to be doing something that generates a deal like calling property leads or doing direct mail and as you start to see results, it’ll be much easier to commit more time to finding other deals.

The second most common reason investors don’t pursue commercial real estate investing is that they believe they don’t have the money to do so. I started in real estate having less than $800 but the one thing I learned was that the better the deal was, the less people focused on me and the more they focused on the deal.

There are multiple financing sources available. You just have to learn how to access them. Your lender will give what it can and the rest will be made up with money partners. You may be thinking that you don’t have great credit or that you don’t know anyone who would want to invest with you but the key is to be open to finding other options. Remember if the deal is good enough, people will want in on it.

With all that being said, there are a few other qualities that can make or break a successful real estate investor.

1) Willingness to learn – successful investors take the time to learn about properties and their market conditions. They take the time to find out better ways of structuring deals to increase their profitability. They make mistakes. They learn and they move on making sure to not make the same mistake twice.

2) Able to move past psychological barriers – successful investors have a “can do” attitude. They are solution oriented and don’t stop dead in their tracks because they don’t have an answer to a problem they face.

3) Are people oriented – real estate is a relationship business. A successful business is one that has a network of contacts and experts who are used regularly to create more and more profits. That means we act with integrity and we make it easy for people to want to do business with us.

Commercial real estate investing is for anyone who is willing to do something in order to reach their financial goals. Whatever you don’t have, you can obtain with the right attitude and the right system in place.

By: Dave Lindahl

About the Author:
To learn more about real estate investing.

David Lindahl, also known as the “Apartment King” has been successfully investing in single-family homes and apartments for the last 14 years and currently owns over 7,400 units around the US. David regularly shares his secrets and experience on the same stage as Tony Robbins, Robert Kiyosaki, and Donald Trump! To get your free report on HOW TO AVOID THE 23 MOST COSTLY MISTAKES THAT REAL ESTATE INVESTORS MAKE AND HOW TO AVOID THEM Click on http://www.ReMentor.com/report_23mistakes.shtml



Common Mistakes of Commercial Real Estate Investors

Posted by admin on January 26th, 2011


Are you considering getting involved in commercial real estate investing as a career? If so, then there are some things that you are going to want to learn how to avoid. You’ll want to try to avoid the common mistakes and you’ll also want to be sure that you know the important things to do when you are involved in commercial real estate investing. Sure, more than likely you still may make a few mistakes along the way, but the more you learn about investing, the more likely you will be to avoid all of those common mistakes.

Things to Do

When you are involved in commercial real estate investing, there are some things that you will need to remember to do all the time. The following are a few of the things you need to remember to do when you start investing in commercial real estate.

Always Investigate the Deal – Before you close a commercial real estate deal, it is important that you take the time to investigate the deal. This will mean that you have to take the time to do due diligence on any piece of property that you consider investing in. Never think that you can get by without doing your due diligence, or you may end up on the wrong end of a bad deal.

Learn From the Mistakes of Others – No doubt you want to avoid making mistakes yourself when you are involved in commercial real estate investing, so be sure that you learn from the mistakes of other people. When you see another investor do something wrong, remember it and learn from it so you avoid making the same mistake.

Learn from Bad Experiences – If you do make a mistake, which is very possible when you first get started, make sure that you learn from your bad experience so that the experience was not in vain.

Know How Long You Can Wait for a Payout – You will also need to be sure that you know how long you are going to be able to wait before you actually get a payout on the investment you make. Make sure you have a realistic estimate on how long you can really wait, or you may end up having problems.

Common Mistakes to Avoid

Of course while there are many things that you need to remember to do when you get involved in commercial real estate investing, there are also some common mistakes that you will want to learn about so you can avoid them. The following are some of the most common mistakes that commercial real estate investors make. Learn them well so you can avoid making them yourself.

Mistake #1 – Ignoring Market Conditions in Your Area – One of the biggest mistakes that can be made in commercial real estate investing in ignoring the local market conditions. Even if you invest in a great property, if you do it in a bad market, then you can really lose money. However, on the other hand, even a bad property in the right market can really make you money as well.

Mistake #2 – Not Doing Proper Due Diligence – Another common mistake that some people make when they are involved in commercial real estate investing, is not taking the time to do proper due diligence. Usually it is best to hire professionals to help you with this job, since it can end up being more expensive if you try to do it on your own and you do it the wrong way.

Mistake #3 – Borrowing Too Much – If you really want to end up in a disaster, borrowing too much money is a mistake that will definitely lead you right there. You should never borrow too much money unless you are sure you will have the capital to pay it off. Remember that when you invest, you at least need to break even, or you’ll lose money. Of course the goal is to be sure that you actually make money on the investment.

Mistake #4 – Not Having Good Exit Strategies – Too many people have found out the hard way that you must have good exit strategies when involved in commercial real estate investing. Be sure that you have strategies for exiting in a variety of different situations. Without multiple exit strategies, you may end up stuck in a deal that you don’t really want.

Mistake #5 – Dealing with Bad Partners – While in many cases the deal or the property can be the problem, in other cases, a bad partner can actually be the problem. If you get involved with a bad partner, it can mean disaster for your commercial real estate deal. In some cases you may just want to get out of the partnership as soon as possible.

Mistake #6 – Taking Risks that are Too High – It is actually possible to take a risk that is too high, which is called overreaching. Going for the big deals too soon can also be a huge mistake. Sure, at some point the big deals will probably come to you, be sure that you don’t overreach towards them and end up in trouble.

Mistake #7 – Having More Land Than Cash – Many investors have found themselves making the mistake of having more land than they have cash to actually cover. If you have many properties at one time and you’re trying to use the gains you get for one to cover what you are losing on another, then you may never get out of this cycle. Get rid of problem properties immediately, even it if seems difficult to do. Then, take your time and focus on the properties that will allow you to make the maximum amount of profit.

All of these mistakes are very common. Hopefully you can learn from them so you avoid making them yourself. However, it is important that you remember that even if you accidentally make a mistake and get involved in a bad investment, there will be ways that you can bounce back and learn from those mistakes in the future.

By: Anthony Seruga

About the Author:
Anthony Seruga and Yolly Bishop of Maverick Real Estate Investments, Inc. work with builders, developers and other players in the commercial real estate industry to acquire and develop properties. They use progressive investment strategies that have proved extremely profitable. In addition to their own deals, they teach both seasoned and inexperienced investors how to be big players in the game. Visit the website for more info.



Real Estate Contract Assignment – Simple and Profitable

Posted by admin on January 25th, 2011


Contract assignments are probably the simplest and least complex profit generator of the real estate profit models.

Basically it’s an excellent way for those looking to get into real estate with zero to very little money. So if you’re short on cash or don’t want to finance properties this profit model is a great opportunity. This is fast becoming a popular second career because it’s so simple for you to get started. Basically all you need is motivation, basic marketing knowledge, and basic knowledge on how these deals work.

So just what is a contract assignment?

A contract assignment happens when you negotiate a sales contract with a homeowner to purchase his or her home, never intending to take possession or title of the property. Once the contract is properly executed, you may sell that contract to a real investor or rehabber that will take possession of the property.

You will profit in the form of an assignment fee that is paid to you by the investor. Typical fee is about $500-$3000 per assignment.

How do you find properties that are candidates for you to assign?

There are many types of homeowners that will be willing to negotiate a contract assignment type of arrangement with you.

One great source are homeowners in preforeclosure.

Were assuming the owner your talking to has no means of continuing monthly payments. It could be due to many things, job loss, divorce, injury or a spouse passing away, more than likely they have missed a few house payments as well.

Your job as a contract assignment consultant is to evaluate the deal on many levels.

First you may ask…is there enough equity in the home to make the deal attractive to a real investor?

If yes you can move forward

Keep in mind…you are providing a solution to the distressed homeowners problem. Typically you may offer to pay off the mortgage in full including back payments. Also, keep in mind you’ll be making an offer of about 70% under market value to make it attractive to your down-line investors.

It’s also reasonable to offer exit cash to the owner of a couple thousand dollars depending on how much equity the owner has built up.

So when you assign the contract to a real buyer who actually takes title to the property, the foreclosure stops as well as stopping further damage to the owners credit plus giving the owner some breathing room in the form of cash to pay bills or move.

Your investor is happy because he has a below market price property to sell or rent and you collect a fee for bringing the buyer and seller together.

This is a simple example. What will make you stand out to buyers and sellers is how organized and professional you deliver your information.

So where do you start really learning how to assign real estate contracts?

Why not learn real estate contract assignment the right way?

See the link at the bottom for more information.

By: Leslie Collins

About the Author:
Learn Real Estate investing by learning how to find, negotiate and profit via contract assignments… the RIGHT WAY – Visit: Contract assignment



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