Investing In Real Estate In New York City New York

Like any other investments, investing in real estate has its upsides and downsides, and since there are different types of real estate to invest in, finding the right real estate will help you find the upsides. Some of the types of real estate you can invest in are land, waterfront property, rentals, and commercial real estate.

Land:
Land is one way you can invest in real estate. There are many types of land to purchase. Before you buy it, make sure that you get it surveyed, by more than one surveyor if necessary. After you find out how much the land is worth, you will need to find out how much it will cost to develop the land.

Land may be zoned as commercial, industrial, or residential (among others). If you want to build a subdivision, make sure you are purchasing land that is zoned residential. Zoning can change over time, which creates a risk when one purchases land and lets it sit undeveloped for long.

You should also consider subdividing the land, and how much it would be worth sold in pieces.

Waterfront Property:
There are many who would like to spend a week or two at a beach. Investing in waterfront property, and renting it our year round is a good way to make some money. You can also pencil yourself in for a stay during the off-season.

Rentals:
Duplexes and apartments should also be considered when investing in real estate. One problem with multi-unit housing is keeping the rentals filled. Another problem is the potential of having the rentals full with less than desirable renters, who may or may not pay their rent on time.

As with all other forms of real estate, figure out how much the real estate is worth--get it appraised. You will also want to find similar housing that has recently been purchased and use that as a guide for what you should be paying.

Also, look at what others are charging for rent, so that you will know approximately how much you can charge, and will be able to make off of your investment.

Here is a checklist of things to do before you purchase a property for investment:

• Have the property examined by an inspector
• Create the contract you will use for renters, if you plan to rent
• With the aid of a real estate agent, determine a monthly rent price, and the price of any move-in fees or deposits.

Commercial real estate:
If you don't want to deal with a lot of people, like you would have to with a rental, you may want to consider investing in commercial real estate.

Costs to consider when investing in real estate:
With all types of investments you need to keep in mind that there is more to the investment than the initial cost of the real estate. There are property taxes to consider, and the cost of maintaining the investment. Consider these and other costs (including any costs for repairs, advertising, maintenance, etc.) before investing in real estate.

As with other investments it is very appropriate, and smart, to find out as much as you can about the property, since types of real estate investments and the level of risk they pose and level of profit they stand to make you vary widely. You'll have to find one that is best for you not only in terms of finances, but regarding level of convenience and length of investment as well.

Today's Real Estate Agent Job Description: Do You Have the Skill Set?

Every year many people think about starting a career in real estate sales. It looks enticing, the freedom to create your own schedule, to be in control of how much you earn, and to have your own business. The reality though is not a pretty picture, over one third of new real estate agents leave the business in their first three years. Why do so many leave? The biggest factor is that they haven't researched the real estate business to determine if they have the required skill set to be successful. Like any career there are some skills that can help set you on a path to success.

You should know early on that real estate sales are not a "get rich quick" career. To be a top producer in real estate takes business planning, patience, people skills, and resilience in addition to many other sub sets of skills. Many potential new agents are not aware of the fact they need a financial reserve to get them through the first six to twelve months in the business to pay household and personal expenses in addition to start-up and marketing costs related to their new real estate sales business.

The number one reason why new agents fail is their lack of self-motivation, you will be an independent contractor and will determine every day what you future will be in the real estate business. While your managing broker and possibly an office mentor or coach will offer some structure and counseling, if you are not a self-starter, conscientious, disciplined, and organized you hopes for success will be diminished. These skills can be adopted if you do not have them now.

My favorite question to ask a new agent is "Why did you get into real estate sales?" Over the years I have received many responses, but the all time leader is "I love houses or architecture". While houses and architecture might look like the answer, it is not. Real estate is a business vehicle for people and their personalities to interact. Real estate is more about people than houses. People skills are the number one skill for you to be successful. People skills include building rapport, problem solving, active listening, assimilating needs and wants, and emotional resilience. Real estate is a business, not a hobby or interest. Real estate consumers expect and deserve an ethical and professional real estate experience.

Your personality will also play an important role in real estate sales. You should like or respect all kinds of people, personalities, ethnic groups, and lifestyles. If not you could find yourself in violation of federal, state and local fair housing laws. Your ability to manage the sales process from first contact with real estate clients to closing efficiently will help kick start your career by providing you with referrals from satisfied clients.

Real estate is increasingly a technology driven business. You will need to have or learn to use at a minimum a personal computer, digital camera, and e-mail and software programs to create effective marketing pieces and efficiently manage your time. The majority of real estate consumers today expect real estate agents to be able to email listings, arrange virtual tours, and have an Internet presence.

Real Estate Development - When is the Right Time to Get Started in Property Development?

The media is currently full of real estate 'doom and gloom' - real estate repossessions and arrears are up and real estate prices are down ... its almost as if the 'sky is about to fall'! This situation has seen many real estate developers, and property investors generally, leave the market - and for those thinking of starting out in real estate development, these are scary times indeed.

What seems like the worst time to get into real estate development can, in reality, be the best time. Successful real estate developers today realize that they can use time to their advantage - their real estate development projects will typically not be ready for sale or rent for 2 to 4 years from inception. So if they have bought well, they are less likely to be affected by the economic situation at the time of purchasing their real estate development site.

In fact, a weak market is a real estate developer's paradise, because a weak market is a buyer's market, and one of the first steps to any real estate development project is securing a viable real estate development site on the best possible terms.

Although we know that the real estate development business is cyclical, and many parts of the world are in a property downturn, we also know from history that knowledgeable real estate developers are successful in any market - falling, flat or rising.

We're working towards what we believe the economic conditions will be in 12 to 36 months time. Indeed we ourselves are still active in the market - seeking Council permission for a number of real estate development projects. This gives us the opportunity to act quickly and build our approved real estate development projects when the market does become buoyant.

It is our opinion that the following market signals are some of the key factors that will lead to increased future opportunities, especially for real estate developers:

· The pent up demand for housing. In March 2008 leading Australian economics forecaster, BIS Shrapnel chief economist Dr Frank Gelber argued that housing prices across Australia will rise by 30% to 40% over the next five years because of the built-up shortages of housing.

· The current Federal Government has stated that they will work towards increasing Housing Affordability and have begun to announce incentives including Tax Credits of $6000 per year if the housing is rented at 20% below market rent.

· We believe that an increasing number of people, in the short to medium term, are likely to require the rental accommodation that we intend to build. This is due to either their financial stress (can't afford to purchase a home) and/or demographic trends (including Gen-Ys who are less likely to buy Real Estate).

Even if our 'crystal ball' is incorrect, we know we have the resources to hold real estate development sites during possible further market fluctuations to come, and increasing rents are certainly helping with that!

Our belief is that this is a golden time to act - perhaps a once in a generation opportunity. Maybe it is not the time to sell completed real estate development projects at the moment, but it is certainly a great opportunity to secure the development site and obtain development planning approval. Now this strategy is not for everyone - you must have the necessary resources to hold the development site and especially the knowledge of real estate development to take advantage of these opportunities.

The best approach for anyone contemplating real estate development will depend on his or her own personal and financial circumstances, but the key message here is that you must do something!

There are many strategies that small real estate developers are currently using, if they don't have the resources to complete a real estate development project right now, including to turn their real estate knowledge into cash by locating ideal property development sites, perhaps taking out an option on the site, and on-selling the 'Development Permit Approval' to someone who does have the resources.

Successful real estate developers know that times of opportunity like this only come along once in a while, and they're taking action so they don't miss the boat.

Regardless of your immediate financial situation, this is the perfect time to leverage your real estate development knowledge into current or future income. If you have any doubts about your ability to do this, or you would like an experienced real estate development mentor to guide you, act now to get the knowledge and mentoring that you need. There is no time to waste!

Real Estate - As US Real Estate Tumbles Diversify Overseas

Real estate prices have risen nicely in the last few years and most buyers speculating in real estate have made some great profits, however changes are coming that will see the real estate price tumble in value and its already started.

Prices are declining and will soon crash. Why? To get the real estate outlook and what may happen we have to look at the wider picture.

Real estate prices have already slowed

The real estate market carried the American economy through the 2000 stock-market crash, a recession and climbing oil prices has lost its momentum in recent months and now has begun to slow the economy, which saw growth at a modest 2.5 recently

That was a big fall from 5.6 percent growth rate of the first quarter and was caused partly by the third consecutive quarterly decline in spending on real estate, after several years of great growth.
Now were going to get a crash

1. Inflation & Interest rates are on the move

When money is cheap people spend it and a lot of this money flows into real estate when money is expensive we have the opposite its pure and simple economics.

If you have taken a look at commodity prices such as gasoline, you will see rises and this is reflected in inflation moving up. The Fed has stepped in to raise rates to combat inflation and will raise them further in the months ahead.

By its very nature this means that there is less money to spend and house prices are affected already.

There are less new buyers and existing buyers are reluctant to move.

A real estate market that is booming needs to see real estate being turned over i.e. new buyers entering and people using their profits to move on, or buy second and vacation homes.

Higher interest rates also hurt buyers who took out adjustable mortgages (ARMs) a few years ago to get onto the property ladder

The benefit of these mortgages is that buyers get low interest rates that are reflected in monthly payments for few years, then monthly repayments are increased dramatically.

3. Psychology

Any market is affected by the psychology of the people who invest in it.

When confidence is high people buy, when it's low they sell.

This is true of any market, not just real estate and people are selling now as over 70% of Americans believe real estate prices will fall.

The result?

A large number of homes are going up for sale in a period that has seen record new home construction and a huge amount of new homes for sale.

A Simple equation

Lets make it simple

Interest Rates rising = less money in economy = less to spend on real estate

Investor psychology down = increased selling & decreased buying = falling real estate prices

The result? A gentle decline soon ends uip in a crash.

Protecting yourself & Making money from real estate

If you invest in real estate for a living, have a second home or are wondering about buying one, then you can protect yourself.

The answer is invest in overseas property and look for capital growth you can buy cheaper and get bigger gains.

Consider this:

In Costa Rica, just a 3 hour flight from the US. Investors are pouring in to buy second homes and investment properties.

They buy at 70% cheaper than in the US, they get the same rights as residents, in a stable, friendly and beautiful country.

Even better, they can take advantage of increasing real estate prices with prime property up 500% in the last 5 years and a buoyant rental market.

When the US market crashes make huge gains here

Why? Because people still want second homes, investment property and they want value and that's what they get in Costa Rica and its only 3 hours away!

Make huge Gains If US Real estate falls

Americans spending in Costa Rica is already at a record high and as the US market falls investment will increase as the market offers a fantastic alternative with low risk to build wealth.

If you are looking to protect yourself from falling property prices in the US, Consider Costa Rica and you could find make far bigger gains than you ever did in the US.

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.

Real Estate Investment Financing

Real estate investment financing is a better option than the traditional residential real estate mortgages. The financing in this sector is done mainly by borrowing money as it is more lucrative than investing one's own money in a single real estate. Real estate investment is a great possibility for many people to gain equity and to generate cash flow and due to this, demand for commercial real estate investment financing is increasing day by day. The real estate investments include homebuilder stocks, real estate mutual funds and real estate investment trusts (REITs).

A real estate investor can get around 98 percent financing for his investments. Even, cent percent financing is available. Zero down real estate investment financing is a fully documented loan which is provided to a single family, townhouse, or condominium. The only requirement for this program is excellent credit. It is now available at reasonable rates. For investment properties, limited and no documentation loans are also available.

Many companies are providing financing for the real estate investments. Most of the business concerns are allowing a maximum of 5 to 6 new rental property mortgages yearly. These companies provide low interest rates and quick close available (48 hours) options to the investors. For a reliable and stable financing, short term and interim financing loans are available. It is hard for a person to get real estate investment financing for more than six properties in a single year. In this situation, sellers financing is the best alternative for achieving the maximum leverage of the investment.

There are various real estate investor financing books available in the market from where one gets rich information about the financing methods. Other means through which one gets ample information about the real estate investor financing are courses, books, tapes, software and services. Before trying a real estate investment financing, make sure that the banks are regulated by the federal government and are capable enough to underwrite conforming loans.

Real Estate Investing - Books,TV Infomercials, and Seminars

Real estate investing has become popularized today because of real estate investing TV infomercials and traveling seminar circuits. But real estate investing has not always been so popular.

In the 1960s, William Nickerson wrote, "How I Turned $1000 into Three Million in Real Estate" and "How to Make a Fortune Today Starting from Scratch." It was one of the first real estate investing books to get national attention. A little later, Al Lowry authored "How You Can Become Financially Independent by Investing in Real Estate." Al Lowry might be called "the father of the modern-day real estate seminars," because he was the first to hold seminars as a result of his book sales.

But it was Mark Haroldsen who carried the real estate investing book/seminar thrust to the next level. Haroldsen wrote, "How to Wake Up the Financial Genius Inside You." If you were tuned in to real estate investing at that time, you remember the newspaper and magazine advertising showing a picture of suave and bald-headed Mark leaning against the front hood of his Mercedes. The picture appeared everywhere in full page ads of major publications. And as Mark began selling his books, he began holding real estate investing seminars. I have had lunch with Mark and Al Lowry as they swapped stories of the advertising blitzes that vaulted them into national prominence for their real estate investing prowess. Mark later wrote "The Courage To Be Rich" and "Tax Free."

But it was Robert Allen who capitalized on the previous groundwork by Lowry and Haroldsen. Robert Allen was reportedly paid $1 million advance royalties for his best-selling book, "Nothing Down," a compilation of 50 techniques for buying property with no money. Robert had learned these techniques from several years experience with a commercial real estate firm. He later wrote "Creating Wealth" and "Getting Started in Real Estate Investing." The Robert Allen Real Estate Investing Seminars became a phenomenal marketing bonanza. Conventions were held in the major cities across the country, like Orlando, LA, Dallas, Chicago and Atlanta. The authors of various real estate investing techniques spoke at these seminars, but their spiel focused on selling packages of real estate investing materials that they offered for sale. Millions of dollars of real estate investing materials were sold at these 3 day conventions. The convention frenzy ushered in what has since become known as "The Nothing Down Real Estate Movement" of the early to mid-1980s.

I keep all of these books in my personal library, and you can probably still find them in your public library and book stores. There's a lot of great information in these books that can make you very knowledgeable, even though some of the ideas are out-dated.

We are now presented a variety of ways for making money in real estate investing in TV infomercials, books and seminars. Which is best? Who can say? Real estate investing is learned through trial and error. Real estate investing skills and techniques are acquired by practice. I don't think anyone can dogmatically recommend a technique best for another person. Every real estate investor has unique needs and is in a unique situation. Objectives of real estate investing differs.

However, if you are limited with real estate investing educational dollars and need to generate quick return on investment, I think fixing up cheap houses is an ideal beginning point. Real estate investing in makeover properties generates quick, profitable dollars with low risk.

Real Estate Brokerage: A Guide to Success, By Dan Hamilton

Owning a business of your own is the American dream. Real estate agents or those considering opening their own residential real estate brokerage should read Dan Hamilton's new soup-to-nuts book on establishing a successful brokerage.

Real Estate Brokerage: A Guide to Success by Dan Hamilton, Thomson/ South-Western, 2006, ISBN 0324379463, Paperback, 380 Pages, $46.95 is written by an experienced real estate broker and instructor. Hamilton readily admits that the brokerage business is going through a permanent shift in how they will continue to be financially successful and remain the first point-of-contact for residential real estate consumers. Admission is one thing, but the author provides deep and clear ways to reorient your brokerage from agent compensation,recruiting and retention, business planning and development, to effective new-age brokerage marketing. All ideas are explained in great detail, with an added benefit of bolded topics and bullet points, for those who want a pick-up-put-down desk reference.

Chapter titles include:The Real Estate Industry, The Real Estate Broker and Owner, The Real Estate Brokerage Office, Real Estate Brokerage Operations, Real Estate Marketing, Additional Marketing Ideas in Real Estate, Real Estate Brokerage Compensation Structures, Real Estate Brokerage Staff Relations, Recruiting Real Estate Salespeople, Recruiting Interview, Retention of Real Estate Salespeople, Real Estate Business Development, Real Estate Business Planning, Financing a Real Estate Business, and Starting Up a Real Estate Business.

In addition to the chapters there is an appendix and introduction. Chapters are presented in an easy-to-understand format with review questions to help the reader assimilate the chapter information and it's relevance. Boxes highlight important definitions or statements. One benefit I especially liked was the use of relevant definitions adjoining text instead of the usual back-of-the-book glossary

This book is recommended to current managing brokers, real estate franchise operations managers, brokerage educators and trainers, and those contemplating starting up their own brokerage.

Real Estate Property Values - Ranked High

Rob Norquist, a real estate agent admits that Newport Beach is as active as it used to be, with some good record sales. He also agrees with the fact that a property, should never be considered deprecated, and as a seller, you should never give up and use the low end price. It is true that, during a certain period of time, depending on the real estate market, client's desire, real estate auctions, there may be moments when a property's price drops, but not forever.

Other cities such as, Huntington Beach, Costa Mesa, Irvine or Mission Viejo - are considered among other 25 cities as being the ones with the best real estate property values, with average values of $680,000 and more. The national average value in 2007 was $194,300.

However, some property values are based on subjective answers from residents living in a certain home, so the given numbers , and real estate evaluation may be hanging on a wishful thinking instead of a real appreciation . This is where real estate auctions come in picture, to inform potential clients about the property, and the investment possibilities, giving them a clear image of the real estate's worth.

Even though some buildings such as Orange County properties , dropped their values in 2007, but they recovered extremely well after. So this is another reason why as a seller, you should never fear if you observe a temporally value drop, because it is normal from time to time.

For instance, about 81% owners, sellers, agents, trusted in 2007 that their estate property values were over $1 million, against 75% in 2006. So things are for the best and it would appear that most of estate agents have finally understood what this business is really about. It takes a lot of patience and ability to maintain your property's value among top ones on real estate market.
But Norquist, trusts that many Newport Beach arguments are near the mark, sustaining that this city has survived the "housing slump" better than other locations. However, the unexpected surprise attacked more on sales, which he admits that they are on a falling edge right now, but there is still hope for better times.

Newport Beach is very well known for its highest-valued real estate properties in the U.S., being a perfect place for real estate business . It's location and proximity to the water, and the beach front view increase it's real estate value considerably. Auctions in this area are very interesting and those who are interested in real estate business domain should never miss them. You can learn a lot on such events.

Experienced real estate agents or even friends will surely advise you that as a buyer you are very likely to come across many real estate properties in foreclosure having perhaps no equity,being over priced . In such moments, lenders sometimes choose to accept a smaller amount than the initial.So you get in the negotiations process. As a hint, when you realize the over pricing phenomenon, you have to understand that this happens when the real estate agent , or seller is aware of the real estate property's value, and he tries his luck in a raising price. So watch out! The negotiation can become a difficult process especially when reasonable terms are not agreed by both sides: owner and buyer. Negotiations can occur privately or in public, where real estate auctions come in the picture. Of course, a real estate auction is safer and more trustful than a private one. Private negotiations occur especially when the agent is a close friend or relative to buyer's, and because of the friendly environment some details regarding even the real estate transaction may be skipped. So in situations like this be careful.

Even as a friend, for a real estate agent , money comes first, and friendship after. Of course, during such a negotiation, there can be all sort of problems, such as mortgage value, real estate market, all sort of official formalities, conflict of interests in a particular area etc. Moreover, time a very important issue when real estate auctions are involved. As a general rule, and as an advise for a potential buyer, negotiation process should not be extended on a long period of time, because, as I said before, in time, real estate properties drop their values, and the client's interest together with it. In this case, not only does the buyer loose, but the real estate agency as well. Why?Because if a property's value drops, the price must drop as well, if you ever want to sell it again. In this case the under priced phenomenon appears. This is why short sales are preferred. Many Realtors, and clients started using this strategy, because they faced the problem regarding their property's value.So they decided the selling process should not take too long.

Another important issue refers to the well known "acceleration clause" , which is an official word met in any mortgage document, meaning that the lender, after the real estate property is sold, can demand the payment of the remaining balance for the loan. Realtors can provide more information about this contractual right. If this clause is good or bad for a real estate transaction, it is hard to say, because it has its advantages and disadvantages. Buying a real estate property which has already a mortgage loan represents a pretty raised risk. Why? Because first of all, if the mortgage loan was contracted for many years, depending on the interest's rate, and marketplace evolution, you may come to pay the house's price 3 times more. However, if you have experience in monitoring the market place, and find a right moment when every interest's value drops, you could go for it. It's kind of a gambling in this business, and Realtors, or individual real estate agents know it best.

Realtors and real estate agents are here on the real estate market, to help clients understand how they can value their houses, what should they look for when trying to sell or buy a house, how to negotiate, and how to win a real estate transaction. Some may say that buying or selling a real estate property is easy, but the fact is that pricing a house is a very difficult process. Many real estate agents, brokers, have suffered many defeats before their first good business, so do not expect their job to be an easy one.

Unfortunately, a concerning price and sales gains of these past years have determined in many cases quitting the real estate business. Many real estate agents who have seen the future preferred to do something else than real estate business. The credit market is also in a critical position, as many Realtors have observed. Mortgage values are also a result of real estate market position right now. Real estate investors have diminished their participation number to real estate auctions, as a sign they have seen it too.

Atlanta Real Estate Online

Atlanta real estate online services help you meet all your real estate needs in and around Atlanta. They help you to buy or sell your property or to relocate. These online services provide information on all residential and commercial properties for sale. Atlanta real estate online services are equally helpful for both experienced investors and first-time buyers.

There are hundreds of reliable websites offering you many kinds of Atlanta real estate services. Most of them have good listings of homes and other properties. They display high-quality photographs of homes and office buildings. In most cases, price tags are also provided. Certain real estate firms with online services make use of multiple listing services (MLS). Many companies offer mortgage help as well. Online real estate services usually monitor your deal from the very beginning to the final settlement.

Most Atlanta real estate agents foster their own websites. They provide huge area-wide lists of real estate properties. Information about some of the best real estate agents is also provided through various websites. These agents will help you make a market evaluation of properties, price your home, and pursue the various procedures involved in the buying or selling process.

Online Atlanta real estate services offer you many advantages, especially if you are an outsider. They offer direct access to various properties available for sale. These services keep you abreast of the changes in trends and help you make decisions accordingly. Atlanta's online real estate is flourishing, owing to a rapid growth in the Atlanta population and the increased rate of employed people.

How a Foreign National Can Buy Real Estate in America

Opportunities for real estate investment for foreigners is wide and varied in the United States. It doesn't matter where you're from and what currency you'd be using to purchase a property, you have a property waiting for you.

There are generally three kinds of real estate investment available to foreigners. These investments include the commercial estate investment and residential property investment. Residential properties are further classified into single family properties, apartments or condominiums and recreational properties. Regardless of what kind of real estate you are interested in, there are all sorts of tax ramifications, financing options and legal requirements that you have to deal with.

Why Should You Invest in the U.S. Real Estate Market?

You've probably heard of the increasing number of foreign real estate investments in the United States. This is not surprising. With the troubles that the real estate investment market is facing in the United States, greater opportunities in real estate investment were opened to foreign investors.

With the dollar's value in its all time low, foreign investors are finding real estate bargains all over the United States. There are no shortages of deals in this market. More and more distressed properties are being sold everywhere and foreigners are pouring in millions buying these foreclosed or distressed properties. The United States real estate has become a fairly attractive long-term investment for foreign investors.

In November of 2006, the National Association of Realtors released a report entitled "Foreign Investments in U.S Real Estate: Current Trends and Historical Perspective". The report showed that there has been a steady increase in foreign real estate investment in the United States. This is especially after the euro and the loonie became stronger in the face of the continuous devaluation of the US dollar. Prime bargains were opened to foreigners. Many foreigners have now looked into the possibility of retiring or settling in the United States.

If you're a foreigner, you would find a lot of reasons why you should invest in the United States real estate market. Aside from the fact that the floating exchange rate has given you a lot of leverage over the bargaining table, the financial market is a pretty good reason why you should invest in the US real estate.

The financial market in the United States in relation to the real estate market is quite liberal and the restrictions against foreign investors are pretty reasonable. This is ideal for foreign companies that are seeking to invest in the real estate market in the United States in order to avoid tariff restrictions and are considering setting up an office or a company in the United States.

Furthermore, despite the devaluation of the US dollar and the wide foreclosures of a lot of property, the real estate market remains to be stable, though slightly shaky, due to foreign investors' capital appreciation. Domestic real estate buyers may not necessarily share the same opinion, but the market has remained to be strong for foreign real estate buyers. This may be largely credited to the fact that there is minimal risk for them.

Why are Foreign Real Estate Investments Safe and Profitable?

There are a lot of investments you can make, but the safest you can make right now is investing your money in real properties. This is another good reason aside from the fact that you can make a pretty nifty profit, if you like, particularly now with the widespread property foreclosures and seemingly continuous US dollar devaluation. This is especially true if you are going to use the euro or the loonie when making your investment.

But why is US real estate investment safe for foreigners?

It is undeniable that stock investments are not a safe avenue at this point. The recession has not only affected the US economy; the same recession has greatly affected worldwide stock investments. Stocks values are dropping. It is also a fact that even without the current economic situation, stock values fluctuates.

On the other hand, real estate investments are pretty stable if you would compare it to stock investments - or even bond or mutual fund investments. With real estate investment, you'd be putting your money in an investment that would grow in value as years go by.

What are the Benefits of Foreign Real Estate Investment?

US state government supports foreign investments and along this line has formulated various tax breaks to encourage foreign investment on real estate. Many of these tax breaks are not available in many countries. In fact, most countries would frown at foreigners owning real properties within their territory.

Foreign real estate investment in the United States is open to everyone. As long as you can afford to buy the property or at least comply with the mortgage requirements and payments, you can secure for yourself a pretty good property in the United States. Again, with the current economic situation of the United States, this is the perfect chance for you to make an investment.

Another great benefit that you can take advantage of is the availability of mortgage financing. Lenders have opened their doors to foreign investors who are looking into purchasing a property. So, you don't have to actually deplete your bank account. You can actually secure a mortgage loan and gradually pay it off.

I'm Canadian, What Are My Financing Options?

There is a steady increasing rate of Canadian real estate investors in the United States; and accordingly, the government has made certain that they have attractive financing options available to them.

If you're Canadian - or if you're a foreigner - you'd find a lot of reasons why you should buy a piece of real property in the United States. For Canadians, the parity of the currencies or the apparent devaluation of the US dollar is a pretty good reason itself. But how do you finance your purchase?

There are various financing options available to you depending on which state you are in. In Arizona, for instance, you'd get favorable financing terms if you are purchasing a property for recreational purposes, that is, you do not derive any income or benefit from your purchase or ownership. You will be required, however, to sign up a disclosure agreement and give a 30% down payment for your loan. To qualify though for a loan, you may be required to show availability of liquid reserves for a period of three to six months. You may also be required to present a minimum of 3-month bank statement.

If you are purchasing a property for investment, you'd probably meet stricter terms. Requirements may be more stringent. For instance, you could be required to give a down payment of more than 30% and you may be required to show one year worth of liquidity reserves.

Regardless of your reasons, if you feel like you can fulfill the requirements of a financing loan, you can then proceed to actually applying for a mortgage loan. Also, keeping yourself updated with the financing terms flux may be a wise idea.

Understanding the Tax Ramifications of Real Estate Investment

The first foreigner to have ever bought a real estate property in the United States was Peter Minuit. This opened the doors to foreign real estate investors. After a couple of centuries later, foreign real estate investment has grown into huge proportions, accounting for billion-of-dollar worth of industry.

The low risk attached to US real estate market, the availability of countless properties, and the steady market liquidity attract foreign investors in droves. The initial snag, however, is the process of understanding the legal ramifications of foreign real estate investment.

What you have to understand is that foreign investment in the United States can take a lot of forms. A foreigner has various options. He can acquire direct interest. He can acquire an interest in the real estate through a partnership, a corporation, or a limited liability company. The latter is the typical structure used by foreign investors.

Limited partnership or Limited Liability Company offers financial protection or indirect asset protection, especially in cases of bankruptcy, law suits and taxes. Foreign investors are generally taxed on the property as if they hold the property in direct interest.

Ideally, you should secure the services of a real estate accountant to help you out with the tax ramifications, but it would help if you, at least, know the basics before you actually talk to an accountant.

There are tax consequences that you have to deal with when you buy a real estate in the United States. You would need an Individual Taxpayer Identification Number which you will use with all your tax transactions. Your investment in real estates can be treated as a portfolio investment and will be accounted for as an investment income which can either be fixed or a periodic income. This is typically taxed at 30% on gross revenues. This tax though does not apply though to all foreign investors. Tax rates would vary depending on the tax personality the foreign investor opted for. For instance, a corporation would be taxed differently.

Other things that you should take note of are availability and requirements of tax refunds and state tax laws on real estate properties as they may differ from federal laws, among other things.

By knowing all these things, you may save yourself from a lot of hassles when you finally approach a real estate accountant. You'd be in same wavelength when you finally get down to talking business. It is, however, very important that you secure the services of an accountant. You'd have an easier time dealing with the taxes ramifications. You'd also have assistance ensuring that you comply with all the accounting aspect of your investment. This is especially true if you are purchasing a real property for investment purposes.

Do You Need to Secure the Service of a Real Estate Lawyer?

If you are considering buying a property in the United States, you need to secure the services of a real estate attorney - someone who could help you with the legal issues concerning your purchase. It is tempting to forego securing the service of a lawyer to save money, but this could cost you a lot of money in the long run. Make sure that you have an experienced and trustworthy lawyer to help you out. Make sure that you have thoroughly checked out his credentials, profile, history of successful cases handled by him, and other factors that would influence your decision. You could check online and look for a lawyer working within the state where you are considering purchasing a property.

Functions of a Real Estate Lawyer

There is no actual distinctive function for a lawyer in a real estate case. However, you would really need the assistance of a lawyer for various tasks. A real estate lawyer would review the sales contract for you. He would also check on the title and other documents relating to the property. A lawyer would also review your mortgage contract and make the necessary adjustments or corrections. You could also get him to review with you the legal and tax issues concerning the purchase. A real estate attorney could also make the necessary adjustments relating to various expenses and costs involved in the purchase. He would assess your eligibility for tax refunds and draft the documents and statements relating to this.

Putting it simply, a real estate lawyer will be your watchdog. He would guide you through the whole process of purchasing a real estate in the United States in order to make sure that you will be legally protected. You will have a capable and trustworthy liaison to help you out with the contract. He will also face legal disputes if any arise.

Tips on How to Invest in Real Estate Successfully

Now, if you've fully bought into the idea of real estate investing in the United States, you might just want to know how to go about investing in real estate successfully. If you want to be successful in this venture, the first thing that you have to avoid is overanalyzing. Of course, it is a good idea to carefully think through your actions but it is a bad idea to overanalyze your investment to nonexistence. You might lose a great opportunity.

Before you purchase the property though, it might be wise to check the property value. If it sits well with you and you can reasonably afford the property, go ahead and make the purchase.

If you are considering the property for a quick flip, make sure that the property is in perfect condition and in good area. This is to ensure that you could double or actually triple your return of investment. If you can inspect the property yourself, do so. If not, a good and trustworthy agent can help you with this task.

Another important thing to remember when you're buying real estate is good financing. You should take your time to carefully consider all your financing options. Foreign investors can email in their queries to various lending institutions. It is a good idea to make sure that you've had their terms and rates on paper because they tend to change these terms and charge you with a lot of junk. Your real estate agent can help you with reviewing the escrow charges.

The bottom line, however, is that it is very important that you do your homework before you actually buy a real property. Investing in real properties in the United States can be profitable especially during these times. In fact, it may be the wisest and most perfect investment you can make right now.

Chicago Real Estate Investing

Donald Trump and countless other moguls built their empires on real estate, and, lately, a lot of people have realized the wisdom behind real estate investments. Chicago real estate investing is a formidable, yet very feasible, business. Chicago is a booming city that is economically sound with prime real estate everywhere. Owning a piece of land at the right location is like owning a gold mine: In just a few years, its value may jump to double the amount you started with in the first place.

But as with any business venture, jumping on the real estate investing bandwagon should be more than just a split-second decision. You must be well prepared before you commit to this daunting task.

First, you have to study Chicago real estate investing. Ask significant questions:

Where is the ideal location?

How is the market doing?

How much start-up capital should I have?

What are the different aspects of real estate investing should I be familiar with?

What type of property do I want to deal in?

When you have the answers to all these questions, then you can start thinking of Chicago real estate investment as a possibility.

When you start your business make sure you cover the important facets of promoting your Chicago real estate investment. Know the importance of advertising and how beneficial it can be for your business. You need to constantly let people know what is out there by advertising your property. There's no such thing as too much advertising-it's the lack of it that can hurt you.

You must also have reliable real estate agents handling your Chicago real estate investing business. If you surround yourself with hardworking and smart people, chances are you'll be in it for the long haul.

Sitting at the negotiation table can be intimidating, but you must realize that you're in this to win. Start your bargains at the lowest possible price: not too low, as this could be insulting for the seller, but low enough so that you'll have a lot of room for haggling.

Be pro-active. Be on the watch for the smallest movements in the market and make sure you are ready to pounce when prime real estate is suddenly brought to the market.

Chicago real estate investing can be a lot of hard work but it can also be very rewarding in the end.