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Have you ever asked yourself how do I get started in real estate investing? Tips on Real Estate Investing and "Creative Real Estate Property Investments" found here.

Property purchases by people generally means it will be their family residence. On average, a family lives in their first home for approximately 5 years and as the family grows they will then purchase a newer and larger home. What the majority of buyers don't understand is that you can actually make money with property by getting proper property investment advice and also using their first home as a money making venture.

MAKING MONEY WITH
PROPERTY REAL ESTATE MADE SIMPLE

Property purchases by people generally means it will be their family residence. On average, a family lives in their first home for approximately 5 years and as the family grows they will then purchase a newer and larger home. What the majority of buyers don't understand is that you can actually make money with property by using their first home as a money making venture.

If your goal is earning money then your home can actually work in your favour. Renting the property for regular income is just one of the ways your property can work for you. Another venture is to "spruce it up (fixer-upper)" without breaking the budget and then reselling the house for a tidy profit. With the profit you make in excess of your purchase price and costs of refurbishing, you then put those resources into buying a house somewhere else. You repeat the entire process again and soon you've doubled your profit. If you want to make money with property, this is probably the simplest method.

Did you know that the profit you make from selling your home is tax-free? Most people don't and what's even better is you don't pay taxes on this income. It's a legitimate and hassle-free method to make money from real estate. With a bit of knowledge knowing what to do and how to go about it, anyone can learn how to invest in property. You may say, as a large number of other people have, the property investment market is just too risky in this uncertain economy. But the reality is there has never been a better time to buy real estate cheap, fix it up a bit and then sell. Suddenly you are making money with property.

It is a common misunderstanding by many people that to make money with property you have to be wealthy but, in actual fact, by playing your cards right anyone can get into this venture. Recent home sales indicate that many properties on the market today have been foreclosed, creating an environment where you can purchase a property for well below market value, rent it out and you now have the property paying for itself. Substantial tax benefits are also readily available with your property if you know what home exemptions can be applied when tax time rolls around. Keeping accurate records of all your repairs and upgrades gives you tax deductible expenses.

Anyone can learn to make money with property. Although you don't need a great deal of time or investment to get started, you will most certainly need to be dedicated. Once you enter the world of property management, whether you choose to sell, invest, or use it as an income property, you need to be certain that the time and effort you put into the process will give you the best return possible. To purchase a property with little or no money, local real estate agents are the best source for properties coming up for sale or auction.

With some knowledge and a bit of dedication, making money with property suddenly becomes easier than you think.

WHY INVEST IN REAL ESTATE

You may be like many people who believe the key to succeeding in real estate investment is to purchase several investment rental properties, lease them out for the next few decades, accumulate millions of dollars in real estate equity and a cash flow to sustain you in your retirement. Technically speaking, that is true. Mortgages on most properties are paid off in 30 years, those same investment properties willl have doubled in value and the rental income will also be considerably higher than it was at the beginning.

Now, while all that sounds very rosy, there's just one problem. While achieving wealth over the next few decades is a great idea you also have to live for today and pay bills and other financial needs. So, how do you solve today's cash flow problems, make enough money to cover your expenses and then live comfortably enough to focus on building your real estate empire.

Let me introduce you to quick-turn real estate, also known as flipping. Quick-turn real estate has a major advantage over traditional property investment by putting cash in your pocket today. Each quick-turn real estate deal can put $5,000 to $50,000 or more into your pocket with each deal you close. Your life can be changed in a matter of months, not years, with quick-turn real estate. Quick-turn real estate is the fastest way to gain financial independence away from any job you're doing now.

The biggest concern for most of us is security, which is why so many of us keep working at jobs we hate....the security of a regular paycheck. That is why you don't want to quit your job, just yet, to pursue a career in real estate empire building. Not only would you be putting your future at risk but that of your family as well. You need to be able to do this real estate business part-time first to see if it then becomes feasible on a full-time basis. You need to broker a few deals to gain some experience, have confidence in yourself to do it and only then would you tell your boss to get lost.

A Minimum of Risk

Another major advantage of quick-turn real estate is the lack of risk. By learning as much as you can about real estate in general and real estate investment specifically, the risk you face in buying and selling property is minimised dramatically.

Traditional investment property deals have one major drawback and that is the fact that you are personally liable for each and every property you own should something unforeseen happen. Let's look at an example. You own 10 investment rental properties, all of them mortgaged to the bank. For each of these 10 houses you paid an average $150,000. With a downpayment of $10,000 on each property the bank financed the remaining balance for 30 years at 7%. The investment rental income is $1,300 per month for each property and your property loan payments, including principal, interest, taxes and insurance are $1,100 per month.

With an income profit of $200 per month on each house, multiplied by 10, you're earning $2,000 per month, the investments are growing in market value each and every day and things couldn't be better. Right? In an ideal world it would be but, unfortunately, things can go very wrong in a short space of time.

Consider the following. First of all, there has been no accounting for repairs, management or vacancy expenses. Should you choose to manage your investment properties yourself and don't mind tenants calling you in the wee hours of the morning because their hot water heater blew up, then take the management expense out of the equation. You're left with the other two: maintenance and vacancy. At a bare minimum, factor in a cost of 5% of your gross rent being eaten away for vacancies and 5% for repairs, assuming of course your investment properties are in good repair and you don't have tenants trashing any of them (tenants can do that sometimes you know). So, from $156,000 gross rental income, $15,600 will disappear in vacancies and repairs. If you add that additional $15,600 annual expense to your annual mortgage payments on 10 houses ($132,000), your investment rental income has suddenly dropped to only $700 per month instead of $2,000 per month. You obviously won't get rich quick at this rate.

To make matters worse, there are other little snags. For example, what if vacancies can't be filled in a hurry and a couple of your investment properties remain vacant for two or three months. What if a tenant trashes one of the houses, quits paying rent, you finally evict him after two months and it takes another two months and $15,000 to repair the damages. Four months with no rental income and not enough profit from all your other properties to pay expenses; you are now stuck with having to dig deep into your pockets.

To make matters worse, there are other little snags. For example, what if vacancies can't be filled in a hurry and a couple of your investment properties remain vacant for two or three months. What if a tenant trashes one of the houses, quits paying rent, you finally evict him after two months and it takes another two months and $15,000 to repair the damages. Four months with no rental income and not enough profit from all your other properties to pay expenses; you are now stuck with having to dig deep into your pockets.

Suddenly you find yourself being motivated to check out the "We Buy Houses" ads, trying to offload this huge headache you're left with. Not surprisingly, you'll soon discover that a lot of great deals can be had from landlords who have gotten themselves into exactly the same predicament.

So, now that we understand how traditional property investment can be a high risk venture for the unitiated, let's look at why quick-turn investing has minimum risk when done correctly. For starters, with a quick-turn scenario you would never walk into a bank and ask for a mortgage loan. You don't personally guarantee debt to finance a deal. Secondly, if you don't write a big cheque to buy real estate you won't lose that big check. A well-known quote is: "always buy houses as if you're broke".

By using creative strategies, you can make deals without ever personally guaranteeing debt or writing a cheque. Some of these strategies only cost $10 for a serious deposit and not a cent more is invested in the home or property deal. On the off-chance you should run into a venture requiring all cash, there are ways of easily getting the cash without using banks or personally guaranteeing the debt. Be sure to do your homework and ask questions. Also a thought here to ponder, foreign investors love U.S. real estate so why shoudn't you?

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