June 13, 2007

Maximizing Return

Buy low, sell high. Anyone in any market aims for that, but few succeed. The only reasonable conclusion is it’s easier said than done. So, to be part of that group of ‘we happy few’, consider some of these ways to maximize your return.

In any business deal there are essentially only two ways to achieve the highest profit - keep your costs as low as possible, and attract the highest bidders.

To keep costs low going in, do as much yourself as possible. Two areas to start on are inspections and repairs.

Acquire the skills, and even licensing, needed to perform professional level Read more

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No doubt, negotiating an agreement you’ll later be happy about is the toughest part of any investment. It’s a rare investor who consistently says afterwards that they got everything they wanted at the price they wanted to pay. But like any skill, negotiating can be learned.

Knowledge and information are your best and most basic tools for successful negotiation. You need to know the market, the law, and as much as you find out about the seller’s status.

That final item includes knowing whether they’re approaching or in foreclosure. Are there any recent life events motivating the Read more

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June 10, 2007

Managing Risk

In the world of property investment, there are various points along the ‘just looking’ to ‘ready to sell’ spectrum. Protecting your investment takes on different hues at different points.

When first looking for property you have to consider the amount of ready cash available, the state of the current market, as well as your own level of experience with the many aspects of investing.

The first lesson of risk management is: know the law. Whether a novice or a savvy investor of long experience, few things can put your investment at greater risk than ignorance of the rights and requirements Read more

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June 8, 2007

Investment Strategies

According to one study 23 percent of all homes sold in 2004 were purchased as investments. Considering the historical returns, and the high percentage increase in prices over the last few years, this shouldn’t be surprising. But there are several ways to profit from an investment in property.

‘Flipping’ is the practice of buying property, then selling for - hopefully - quick profit. The flip side to flipping is keeping property for the long term to take advantage of tax incentives and capital appreciation. Calculate the total costs vs amount saved from tax write off. Don’t forget to include Read more

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Buying and is similar to timing other - stocks, bonds, mutual funds. But there are two important differences.

Most investments can be bought or sold within minutes at the market price. Buying or selling real estate takes months. That difference introduces interesting wrinkles in timing when to buy or sell.

Like other investments, selling at a high point, with the intention of buying back in at a lower price, Read more

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