Phil Hartog Blog

By: Frank Collins
Real estate investing is considered to be a safe investment over time. This is one reason why many do this as a full time profession. One can also invest in real estate and not be involved full time. Most people think of real estate investments as homes or condos or multi-family properties. Commercial real estate is another excellent choice when it comes to investing in real estate.

Commercial real estate investments typically allow the owner to continue their day to day unrelated business while their hired professionals upkeep and maintain their commercial property investment. Although most people think of commercial real estate as office buildings, retail stores, or industrial facilities, there are a lot more property types in the commercial real estate.

Some examples include properties such as health care centers, retail structures and warehouse. One of the most desired and financed commercial property is called residential. More specifically, apartment buildings (real property that consists of more than four residential units) are considered commercial real estate.

Most people consider commercial real estate difficult to enter due to financing and larger down payments than residential property. Although this is true to an extent, there are many commercial financing programs that will offer up to 90% financing and some even up to 97% financing for small commercial properties up to $1 million dollars. Of course, commercial mortgage loans go significantly higher to $500,000 and more.

Commercial real estate investing can be significantly profitable due to increasing rents, inflation and material costs. An investor must be able to analyze an opportunity more thoroughly in commercial real estate versus residential real estate. Some initial analyzes involve the rent rolls, pro-forma statements, and operating income. These numbers are crucial to the lenders to determine the amount of financing you will receive. Once you know the amount you will receive from the lender you can easily determine if the investment is worthwhile. You could take up commercial real estate for either reselling after appreciation or leasing out to residential tenants or retail tenants.

If you research and learn there will be substantial commercial growth in the area (due to tax breaks or gentrification), it may be wise to evaluate the potential for appreciation in commercial real estate and then seek out a good investment. If you find that a multifamily or office property, for example, is available but too expensive for you to buy alone, you may want look at joining or creating a small investor group and acquire it together. In another example, you might find it lucrative to purchase a commercial property that you can change to a warehouse which you can then rent to small businesses. As you have learned here, there are many creative ways to achieve success in commercial real estate investing.

Author: Stuste Phens
Real estate investment is about finding good deals
Real estate investments are often treated as one the best ways of investing money. However, what you are looking for is not just any real estate investment, but real estate investment that can give you good returns. By real estate investment we mean investing money into property i.e. buying property at a low price and selling it at a higher price so as to make a profit out of it. So the most important part of good real estate investment is to get hold of such properties which can give you good returns.

Now, how can you get these potential profit-making deals?

Your first avenue for finding good deals is the local newspaper (the property newspaper). Just search for properties that are listed directly by the owners who want to avoid paying commission to the real estate brokers. Since the owner is saving on the commission that they would otherwise have to pay to the broker, they would probably be able to offer a lower price to you and be more open to negotiations. You could also place your own ‘wanted’ ad in the local newspapers. On the same lines, you could use internet to search for the real estate investment avenues. In fact, you would be astonished by the number of real estate investment opportunities you are able to locate on the internet. Not only that, searching for real estate investment opportunities (i.e. property for sale) is much easier on internet than anywhere else.

Another good way to hunt for real estate investment opportunities is by using the services of real estate brokers. Some people use real estate agents as their first (and maybe the only) touch point for getting real estate investment opportunities. The real estate agents act as information hub for people looking to buy property. In fact, a lot of sellers find it much more convenient to sell their properties by listing it with real estate agents.

Multiple listings service is another good way to find real estate investment opportunities. Since the multiple listing book is provided only to the real estate agents and not to the general public (unless you are very lucky), all the cream (good real estate investment opportunities) would have already been taken before you get to see the book. The key here is to look for expired listings that didn’t get converted to a deal.

Another good way to get a property, that is a good real estate investment, is to look for foreclosures by banks/ VA/ FHA or to visit public auctions. You can generally get a good deal here. Divorce settlements are another good real estate investment opportunity.

Author: Gray Rollins
Over the last several years, real estate investment has been the center of much interest. Infomercials abound about the money to be made by real estate investment. Reality television shows concerning fixing houses and reselling them are in great abundance, and a new American dream has been born. While real estate investing can be quite profitable, it’s not as easy as they make it look on television. You must know your market area very well and while there is potential for great profit, the risks are high in real estate investment. There is always the possibility of failure and that must be an acceptable risk for you if you wish to prosper through real estate investing.

Here are some tips to keep in mind when investing in real estate:

1) Specialize. Don’t bounce back and forth between different types of real estate investing (such as fixer uppers, rentals, lease options, low down payment homes, etc.). If you specialize in one and become an ‘expert’ in that particular type of investment you will only be making the costly mistakes that are made during the ‘learning curve’ for one type of investment property rather than for several. In addition to missing out on some of the costly errors, you are becoming more and more accomplished in your chosen area of expertise with each new transaction.

2) Inspect. Always, always, always have a thorough inspection of any property before you buy. This can be costly but it is much less expensive in the long run to know without a doubt what you are getting into before buying the property.

3) Compare. Compare the value of other properties in the area with the asking price of the property you are considering. You want to insure that you have an accurate understanding of the value of property in the area in which you are buying. If you are buying a fixer upper you wouldn’t want to pay a price equal or near the prices of houses of similar size and better condition in the area.

4) Education. Educate yourself on the local market. This should include information such as the number of bedrooms the average home buyer wants, the school districts that are in demand and those that aren’t, and the features that home owners pay the most attention to in homes (such as kitchens, bathrooms, fenced in yards). Find out what the housing trends in your area are and make it your mission to provide houses that fill those particular needs.

Following the tips above will not guarantee you success or prevent failure, but they will get you started on the right foot in real estate investment. Keep in mind that there are other extenuating circumstances that must be considered when investing in real estate: among these are taxes, back taxes, the local economy, and actual demand for housing. If you have a firm understanding of the local real estate market perhaps you are ready to delve into the world of real estate investing.

Author : Phil Hartog
For those of you who are 1st time investors, you may be concerned about the concept of having tenants living in your house. Here are some steps worth considering to manage those concerns:

1. Choose a growth suburb that has low vacancy rates. This needs to be a research based decision, not an emotional one.

2. Engage an effective property manager that will filter out the ‘riff raff’ and only forward tenant applications that meet your criteria. (Make yourself aware of the latest anti-discrimination laws)

3. Do your own homework on what similar houses to yours are achieving in rental income. You should only have to do this once a year. Make sure you are achieving market price for your product.

4. Take out home insurance

5. If you have further concerns – enquirer about landlord insurance

6. Be a good landlord and put yourself in your tenant’s shoes – attend to maintenance issues promptly, buy your long term tenants a bottle of wine or some movie tickets as a Christmas gift and/or when they re-sign a lease. Be ‘firm but fair’ in your decision making. Remember, you are in business with your tenants, show them respect and hopefully it will be reciprocated.
Don’t worry, there will always be a friend, brother, uncle or cousin who has a tenant horror story to tell – have you noticed that often it is the people with the least experience in particular fields who are the biggest experts with the most to say.

7. Get some tax accounting advice and software - PIA or similar - to streamline your record keeping. Shop around for a good accountant who personally owns 2 or more investment properties and looks after clients who also own multiple properties.

8. Property investment is a great wealth creation tool for building equity and passive income. Good property managers will greatly assist in making this process a smooth one. Dealing with a few issues along the way is normal though – ‘no such thing as a free lunch.’

Author: Rhiannon Williamson
The last downturn of the global stock market saw millions of ‘every day’ investors having their fingers badly burned. Overnight life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy to say the very least.

As a direct result investors in their thousands turned their backs on the rollercoaster stock markets and sought alternative asset classes in which to invest their hard earned money. This has led to a global boom in real estate markets and property prices, and it has spawned a generation of budding real estate investors.

For those of you wondering whether it’s too late to venture into real estate investing or considering how best to make the most significant returns from property investment, here are 5 hot tips for successful real estate investment to set you on the path to potential profits!

1) Consider Investment Property Abroad

There are many relatively untapped property markets in countries around the world that offer the real estate investor greater return on investment in the form of rental yields or short to medium term capital growth.

While major markets in the USA, UK, Australia and Europe are slowing down, there are emerging property markets globally that are hungry for investment and are proving to be highly profitable.

For example, in 2007 a number of countries are already aligned for accession into the European Union and as a result property markets in these countries are likely to benefit from greater numbers of visitors, more trade, increased investment into infrastructure and more stable economies. The likes of Hungary, Slovakia, Bulgaria, Croatia, Turkey and even Northern Cyprus are just a few examples of overseas destinations with emerging real estate markets that may be worthy of your consideration.

2) Make Sure Your Plans Are Profitable

This sounds ridiculously simple right? Well, you’d be surprised how few people actually make sure their plans are actually sustainable and as profitable as they hope.

Examine any real estate market that you’re about to enter by firstly comparing property values across the city, state or region and making sure you know what your money will buy you. Then ensure that the rental yield you intend to obtain from your property is actually realistic or that the asking price you intend to set once you’ve renovated the property will be offered.

3) Never Assume Anything

This goes from assuming a house is structurally sound to accepting that tax laws won’t change – from believing your tenants when they tell you that they are house proud and honest to accepting the first builder’s quotation!

Do your due diligence on every single aspect of the process from ensuring the asking price for a property is fair to checking your tax returns before your accountant submits them for you. This is your investment, your future, your potential profit and therefore it is ultimately your responsibility.

4) Employ An Expert When In Doubt

Few people are a master of all trades therefore be prepared to acknowledge areas where you are far from being an expert and at least consider courting a second opinion. Again, this goes from checking out the structural soundness of a property to understanding the legal ramifications of letting out your property. If in doubt always double check – and if this means you have to call in an expert, make sure you call in an expert!

5) Set A Realistic Budget And Stick To It

Whether you’re purchasing property to let out or buying real estate to renovate you need to sit down and add up every single area of projected expenditure to enable you to set a realistic budget with which to work.

Make sure you add in everything from having searches and surveys conducted, legal fees, accountancy fees, insurance costs, likely interest payments on any finance required, taxation, connection of utilities, marketing for tenants or buyers, real estate agency fees, and of course don’t forget to add on the cost of the property and the price of any renovation and refurnishing and decorating work required.

Spend time considering every single area where a cost will be incurred and detail every likely payment that will have to be made and you will arm yourself with a bullet proof budget and do all you can to ensure you encounter no nasty surprises along the way.

Author: Les Calvert
The Australian Property Market
When it comes to nations in the world that are experiencing a thriving real estate market, Australia is towards the top of the list. Indeed, over the course of the past decade, the real estate market in many locations around Australia has been booming.

Major Australian cities naturally are experiencing the biggest growth in their real estate markets. Cities like Sydney, Perth, and Melbourne are leading the way in the real estate arena. In addition, a great number of more rural areas in the country are experiencing a surprising growth in their own real estate markets. Many people have come to find the more rural areas of the Down Under to have particular appeal.

Investment Property in Australia

An increasing number of people — both Australian nationals and people living abroad — have become more involved in purchasing and owning investment real estate in Australia since the turn of the century. Generally speaking, the up tick in the acquisition of investment real estate throughout Australia is taking shape in two general areas.

First of all, a growing number of people are seeking, finding and purchasing real property in th major Australian cities that is then leased to different types of business enterprises. A surprising number of foreign nationals are involved in this type of investment scheme. For example, many Europeans have taken to investing part of their capital in commercial and business properties in the major Australian cities.

Generally speaking, investors have realized a fairly substantial return in this type of investment in recent years. Indeed, from a long term investment standpoint, real estate values have continued to rise significantly in all major Australian cities for the past decade.

Second, a notable number of people who are seeking an investment in income producing real estate have taken to putting their money into properties that are involved in the tourism trade in Australia in one fashion or another. Tourism remains a primary industry in the Down Under in the 21st century. An ever growing number of visitors are trooping to Australia with each passing year.

Most real estate analysts in Australia maintain that no proverbial bubble is yet in sight when it comes to the investment market Down Under. Therefore, most of these experts agree that a present day investment in real estate in Australia is a solid decision, not only for today but well into the future.

Residential Real Estate in Australia - Single Family Properties

As a nation, Australia is a country in which home ownership is a goal (and the reality) for a vast majority of people throughout the country. In point of fact, at the present time, over 70% of the population of Australia owns residential property. A clear minority are tenants or involved in some other living arrangement that does not include the ownership of a home.

In today’s Australia, the development and construction of single family residences is being undertaken at a fast clip. The major Australian cities, for the most part, have not yet been overbuilt. Thus, the demand for these properties continues to outstrip supply, at least to some extent. As a result, and generally speaking across the country, the Australian residential real estate market remains a seller’s market. Most industry experts and analysts expect this status to remain over the course of the coming ten years.

The percentage of residential properties owned by foreign nationals within Australia remains very small. Presently, most foreign nationals that are electing to live a part of the year in the country still tend to be leasing property for that purpose. However, and with that said, each year more and more foreign nationals are in fact making the purchase of residential properties in Australia for their personal usage.

Residential Real Estate in Australia - Apartments

When it comes to tourism in Australia, a significant number of visitors to that country plan extended holidays or travels within that nation. Many travelers who have Australia as a destination are determined to stay in the country for a period of months rather than weeks or days. As a result, the market for apartments and similar types of housing situations remains strong.

Recognizing the strength of this market, many people have taken to buying up and investing in apartments and other multi-family dwellings for investment purposes. Some foreign nationals are getting into this mix themselves.

When it comes to buying and investing in this type of real estate, the number of foreign nationals involved in the ownership of these properties understandably is largest in the major Australian urban areas. However, with more and more visitors to Australia — as well as Australian citizens themselves — becoming more interested in life in rural areas, more apartment units are being developed in smaller communities all of the time. These projects are ripe opportunities for many foreign investors interested in gaining a foothold in the Australian real estate market.

Holiday Property in Australia

Since the 1950s, when it come to the ownership of real estate in Australia by foreign nationals, the most common type of property that a non-Australian can be found purchasing is vacation real estate. Again, and as has been mentioned, tourism remains a primary industry in Australia. Thousands of people who are citizens of foreign countries have taken to purchasing vacation property in Australia. By making these investments, these foreign nationals are able to spend time on holiday or vacation within Australia and have a home base from which to operate while in country.

Many such investors are taking the additional step of renting or leasing out these properties during those periods of the year when they are not using the properties. In many of such cases, the vacation property owner has found that he or she is able to turn a tidy profit from this type of arrangement

Specific steps to buying real estate property in Australia

The ability of a foreign national to make the purchase of real estate in Australia requires governmental permission. Before a foreign national can commence seriously the pursuit of real estate to purchase in Australia, he or she must seek and obtain permission to purchase real estate from the Foreign Investment Review Board.

Whether a person is seeking to purchase residential property or investment real estate, it is important to initiate the approval process with the Foreign Investment Review Board early on. Indeed, most people apply for approval from the Board at least ninety days prior to launching a more concentrated search for real estate to purchase in Australia.

When it comes to a foreign national investing in residential or commercial real estate in Australia, getting approval from the Foreign Investment Review Board really is the most cumbersome portion of the entire process. Once this approval has been tendered by the governing Board, the process of satisfying the legal requirements to purchase and own real estate in Australia surprisingly is rather simplistic.

Overall, most real property in Australia is sold either through what is known as a conventional channel or through auctions. In considering the conventional course of purchasing real estate in Australia, when a foreign national identifies a property that he or she is interested in purchasing, he or she need only convey an offer to the seller.

In Australia, this initial offer can be verbal or in writing. Once received by the seller, the seller will either accept or reject the offer that has been tendered. In many instances, if the offer is not at the price the seller has set for the property, the seller may counteroffer. In any event, if an offer (or counteroffer) ultimately is accepted, a Contract for Sale will then be drafted.

After the acceptance of the initial offer (or counteroffer), the buyer is obliged to make what is known as a holding deposit. Generally speaking, the holding deposit is 10% of the total price agreed upon for the sale of the real estate in question. During the period of time in which the Contract for Sale is being prepared and drafted, a buyer or seller maintain the ability to back out of the transaction. If this occurs, more often than not, the buyer is entitled to a refund of the entire holding deposit.

Once the terms and conditions of the Contract for Sale fully are hammered out, the parties to the sale will sign the agreement. The Contract for Sale sets forth all of the conditions, restrictions and requirements that must be satisfied in advance of the ultimate and final sale and conveyance of the property. The primary conditions generally are the buyer obtaining financing and the seller making certain that there are no encumbrances on the real estate that would preclude its transfer to a new owner.

In most locales in Australia, once the Contract for Sale the deposit that is made by the buyer becomes irrevocable — in short, the buyer can’t get his or her deposit money back. However, in some Australian states there is a ten day “cooling off period” following the execution of the contract for sale. Within this time period, if the seller decides to back out of the contract, he or she can do so without losing the security deposit. There may be some financial penalty to backing out of the deal, but the majority of the initial deposit will be refunded.

At this juncture, the parties merely wait for the final wrap up of the obligations under the contract for sale that each party assumes pursuant to that agreement. The seller obtains appropriate financing in most instances and the buyer makes certain that the property is in proper condition for sale both physically and legally.

Author: Tony Smithston
You may have heard mixed feelings recently about investing in the real estate market. Maybe you think that it is too late for you to venture out in to the world of real estate. Fact of the matter is that the market is constantly fluctuating, and there are always great investment properties to be found. To increase your chances of being successful in real estate you need to follow a few important tips.

You may have heard before that there are perfect investment property markets in different countries around the world. The great thing about many of these areas is that they require much lower initial investments in a shorter turn around time. It is known that in general the real estate markets in America, UK, Europe, and Australia have been slowing down, but there have been emerging property markets that are highly profitable.

If ever you are in doubt you can always turn to an expert for the right answers. There are very few people in the world are a master at all trades. There are certain things that simply must be done by a professional such as checking the structural soundness of an investment property, as well as understanding all of the legal aspects of purchasing and renting out your properties. If you are every in doubt about anything, don’t hesitate to call a professional to clear things up for you.

A common mistake people make is with their budget, whether it be overspending or not setting aside enough money. When you are purchasing a piece of real estate with plans on renovation you need to make sure that ever single area of this project fits in with your budget. Don’t forget about extra fees that are associated such as legal fees, accounting fees, real estate agency fees, insurance costs, taxation, utilities and so on.