Investing in real estate is more complex than simply buying and selling homes. To help new real estate investors to decide which strategy might work for them I put together 5 rock-solid strategies. It is up to you which strategy you feel more comfortable with.

1. Buy and Hold

This real estate investment strategy is commonly known as rental properties. Becoming a landlord is easier than you think. You buy a property, you advertise it as "for rent" and you sign a contract with your new tenant. That’s where the love story ends. You need to know a lot about your duties and your rights as a landlord or you will find yourself in trouble.

Screening your prospect tenants is your first line of defense. Protecting your property from damage is your first duty. I might paint a little bit dark picture of being a landlord. But dealing with tenants can be the most frustrating job you ever had. Do yourself a favor and visit a bookstore or library and get as many books on landlording as you can get. Armed with this knowledge you will be able to create a positive cash flow and a long term relationship with your tenants every time you put the "For Rent" sign in the yard.

With the buy and hold strategy you basically have 3 income streams going at once.

Amortization; while paying your mortgage you also lower the amount you owe.

Appreciation; while owning the property it increases in value.

Tax incentive; as a landlord you will be able to deduct your investment cost over several years. (See you tax advisor for professional advice).

Based on this information you can easily see that even if the rent doesn’t cover 100 % of your mortgage payment you will still be able to create a positive cash flow.

2. Flipping

This is the art of "buying" and "selling" real estate investment without actually taking ownership. In a flip situation real estate contracts get assigned and the person who assigns the contract to someone else typically gets a commission for their services. That’s how you can make money with real estate without credit checks or no money down. Because you never take possession of the property, you don’t need to apply for a mortgage.

You only need 2 things to be able to flip a home. First, you need to find an attractive property that will sell very quickly. Second, you need to find a buyer within a very short period of time. Typically 2-3 weeks. Then you simply flip the contract to the new buyer and you will collect your commission at a so called "double closing".

This sounds complicated at first, but with a little bit practice you will be able to create a nice income from this. By the way, this is the preferred concept of most real estate "gurus" who appear in late night infomercials.

3. Rehabs

Rehabs are the most risky form of real estate investments. You hunt for a cheap, run-down property and you hope that your preliminary remodel cost estimates will leave enough room for a nice profit. Well that’s the theory. Most real estate investors are failing with this type of strategy.

You either didn’t get the property cheap enough to make a profit or the damages are more extensive than estimated which will offset the cheap purchase price. To make matters worst. If during the rehab phase of typically 3-4 months the market is going south all bets are off. Trust me, I made my share of experiences with this and I told myself, never again.

4. Commercial Real Estate Investment

What comes to your mind first when you think of commercial real estate investment? Big factory complexes, shopping malls or maybe huge office buildings. Well, my answer is much simpler. Anything bigger than a 4 unit apartment building, some call it fourplex, is considered commercial. The great thing with commercial real estate is that the value of the property is determined by the rent income it generates and not by how crazy people are going with bidding on residential real estate.

Theoretically there’s no such thing as sellers or buyers market for commercial real estate. I wrote a complete article about the pros and cons of commercial real estate. So I keep this brief. Personally I love commercial real estate. Of course, commercial real estate is more or less off limits for beginners, because commercial real estate lenders want to see some form of prior experience in real estate investments. However, if you got some experience, go for it. As an added benefit; the competition is far less.

5. New Construction

This is the most affordable and easiest way of real estate investment. Getting into the earliest phase possible of a new development is a sure thing to make money. Keep an eye on the market and you will be able to sell your new home before construction is finished. The construction companies don’t like this, so they limit the number of homes an individual can buy. Even so, keep one or two homes constantly under construction and you will make some nice profits. Of course this works only in a sellers market. Stay away from this strategy in a buyers market or when you see big changes in the local real estate market.

Sincerely,
Peter Dobler
(c) 2005

Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.Learn more about real estate investments at http://www.suncoastrenttoown.com or send a blank email to suncoastrenttoown @ getresponse .com

5 Rock-Solid Real Estate Investment Strategies

Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet. Despite this many who have sold there home privately have benefited from the following:

? Saving thousands in commission
? Savings in time spent selling home

? Experience a wider choice of online services
? A feeling of remaining in control
? Reduction in stress
? A sense of achievement.

Selling property-What is your home worthSelling property privately means that you will have to arrive at the correct price to sell your home.House prices and the value of your home is a major topic for potential buyers and those already on the property ladder. There are now ample resources enabling you to value your own home, making it easier to sell your property privately.

Before you value your property you must arrive at two important figures:

1. The lowest price you will accept for your property
2. The ideal price you would like to achieve

ResearchGather all the facts before arriving at a realistic price for your property by:

? Using online House Price calculators which will give you a guide price

? Using the internet to find prices of similar properties in your area

? Looking at House Prices statistics this can help identify the trend over the last 12 months.

? Using house price websites to discover exactly the prices that properties had sold for in your neighbourhood

? Research local paper and estate agents windows.

UK Housing Market Price Data

Halifax & Bank of Scotland House Price Data: www.hbosplc.com/home/home.asp

Nationwide House price index: www.nationwide.co.uk/hpi/default.asp

UK House Price Calculator
ww.nationwide.co.uk/mortgage/tools-and-calculators/hpi.htm

UK House Price-Websites

Net House Prices: Instant online house prices throughout the UK
http://www.nethouseprices.com/index.php?ref=99924

Mouseprice.com Find the price paid for every house sold in England & Wales
www.mouseprice.com

Our Property: Millions of prices direct from the Land registry:
www.ourproperty.co.uk/

UK house price predictions
http://www.housepricecrash.co.uk/

Nicholas Marr
Director of Marr International Ltd a Uk based property marketing companySelling property worldwide on behalf of private sellers,estate agent worlwide http://www.homesgofast.com/sell_your_home.php

Selling Property – Valuing Your Property

GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATE

If you own rentals and/or investment properties, you know that you have to keep track of your portfolio, maintenance profiles, property managers, and related financial matters. There are a multitude of programs for the Palm-Pilot system to keep up with lease dates, lease expirations, and rent due dates. They will let you know when to send late notices and how much the late fees are for each rental you have in your list. Most of these programs will also alert you when you have a lease that will expire within the next two months, this allows you to prepare a new lease contract or plan the repairs and marketing for the unit. They’ll even give you yearly totals spent on property management fees and maintenance fees, and bounce those amounts against your rents collected. This will give you an idea of how the property is performing. Some will even “conduit” to your computer when you HotSync, which allows you to create Excel spreadsheets for the data produced.

These programs will also store information associated with each individual property, such as who the handyman is for that property, warranty company contact information, insurance information, and tenant contact information. Most programs out there will allow you to log and track the Gross Scheduled Income (GSI), Gross Operating Income (GSO), Net Operating Income (NOI) and Cap Rates for each property in your portfolio.

A few programs that you might try, you’ll have to figure out which one is best for your current situation. There are many more, just search around on www.palmgear.com and you should be able to find exactly what you need for your own rental and leasing situation:

Rental Manager 2.16. This program is great for vacation rentals! Keeping up with availability, accounts receivable, reservations, reservations not confirmed, and dates of expiration.

Rentulator 1.01. Is a free program that allows you to enter the price of the house or condo and the percent you would like to earn, and the program will calculate the rent you would need to collect for that situation. You will need to calculate total debt service and other factors before punching them in, but the program will tell you what you need with the correct amounts plugged in.

LANDLORDING

Most properties in my portfolio I have property managers that collect rent and inspect the units. On those properties that I manage myself, when a tenant calls with a problem, all I have to do is decide whether it requires the warranty company, just a quick fix by a handyman, or if I’m in the area, I might just run by and take care of it myself. All the information is right in front of me, regardless of where I am at the time of the call.From experience, I can predict that whenever my tenants call, I won’t be anywhere near my PC or file cabinet! Fortunately, with your Smartphone, you won’t ever have to go to your office to access your files again. Sounds nice, huh?

Have all your important files with you 24/7, 365 a year!

REAL ESTATE AGENTS

Some of these programs will track every aspect of the business of realestate. Realtors and brokers can track their listings and when they expireand even search the entire MLS (Multiple Listing Service) anytime -anywhere. The program will remember lockbox codes and cross-reference themto the address and location of the property.

You can also track real estate commissions, both gross and net. You can evenset goals for closing a certain number of sales per month, which you canthen compare to your actual closings at the end of each month. Export thesefiles to your favorite spreadsheet to print monthly and yearly charts ofyour progression.

Now for a program that carries a monthly fee. Supra and eKey. Found at:www.supraekey.com

If you are a state licensed practicing Real Estate Agent, you can subscribeto a service that will give you access to your listings and the entire MLS.This software allows your Smartphone to act as an electronic Key to give youaccess to Supra Keyboxes placed on listings. If the Keybox is the electroniciBox type, you can open the Keybox just by aiming your Smartphones IR(infrared) port at the Keybox and tapping the send button.

The software expires at the end of each day, to update the software you musteither HotSync or eSync your Smartphone or tap on update in the menu, whichallows your Smartphone to go online using its’ wireless connection and itwill update the software. The default will automatically log on between 12amand 6am and update your key for you. It automatically updates each night andtells you who has shown the listing; date, time, name, office name and phonenumber. (If you are in a location that doesn’t have a digital cellularsignal, the software will attempt to find a connection every 30 minutesuntil it updates itself. You get the information you need delivered to youwithout having to drive to the listing to collect business cards). By thetime you wake up, all codes, lockbox activity, and your MLS will be updated.You will know how many other agents accessed and showed any of yourproperties that you have listed. If someone at the office added a listing toyour MLS, it will now show up on your Smartphone.

Some of the old lockboxes require metal contacts to be slid into the shackleto open the lockbox, AEII type. On these older units, the “supra unit” isneeded, because the unit has the metal contact key built into the case ofthe unit. You just insert your eKey shell of the PDA into an AEII typeKeybox. Or for the newer Keyboxes, the iBox type, just point your Smartphoneat the iBox and hit the button. Always remember, iBoxes relock after 30seconds!

You can easily change your own iBox codes by changing them on your handheldand transmitting them to your lockbox when you arrive at the location.

Messaging: Associations and brokers now have a way to quickly and easilycommunicate with their agents through a tool the agent uses on a dailybasis. Need to change the date or time of a meeting and get the word outquickly? Messages appear on-screen. Basically, SMS, which stands for (smallmessage service).

If you were driving through a neighborhood and found the perfect home foryour client or yourself, wouldn’t it be nice to punch in some numbers andhave all the information for the property in the palm of your hand? And youmight possibly be able to obtain the lockbox codes right on the spot, andview the property that minute. This is called productivity, either get init, or get ran over by it!

You can search your own listings by any of the following fields: area,price, class, status, bedrooms, bathrooms, and up to three additionalcustomizable fields that you can set to what ever you like or think isimportant.

There are many other services out there that will assist you in being one ofthe Top sellers in your area. One service from www.homegain.com will SMStext page comparisons to you when prices rise or fall in your farm area. Itused to be free, but now they charge a few dollars a month to monitorcertain areas. This service is also nice if you own property and would liketo know when to either refinance the property or maybe it’s time to salethat property. Real Estate prices usually don’t move very fast unless we’rein a crash of some kind, and then of course, their moving down rapidly. Butit’s still nice to know what your properties are doing without having toresearch all of them each and every month. This way you get the reports, andyou can either go on with life, or look closer at the numbers for aparticular property and take whatever action you should.

CALCULATING YOUR POTENTIAL CASH FLOW

When I go out to inspect potential real estate investments, I enter all the notes for that particular property under that property’s name and address. Later at the hotel or on the spot, I can run the numbers with my HP-12C calculator (see below), and know if I’m looking at a positive or negative cash flow. Of course, you will want to take in the consideration of the potential appreciation for that area. Some negative cash flows are worth having if you will make your gain in appreciation. Sometimes a small negative can be welcome in the face of a large appreciation factor for an area. When I get back home, there is no confusion about which property had what features and cash flow. Another program that helps you compare properties is TriLoan, (see below), to see which property is the best investment. This program allows you to set four different loans or properties side-by-side for easy comparison. All in the palm of your hand.

REAL ESTATE CALCULATIONS

KK-12C, by KK Technologies Co., Ltd., is a great program that emulates the HP-12C calculator. It even looks like the calculator on the Palm screen. If you are currently using the HP-12C, then you won’t need to learn anything about this program; you’ll already know how to operate it.The HP-12C is one of the most popular RPN (Reverse Polish Notation) financial calculators ever made – it’s been out for a long time and is still popular mainly in the Real Estate arena. I like the fact that I always have it with me wherever I go. There are quite a few options on the KK-12C that the normal calculator doesn’t offer. One nice feature is that all registers can be saved at any time with unlimited sessions. This is nice for viewing later.

THREE OUT OF FOUR LOANS

TriLoan, by John Coogan, can be found at http://www.triloan.net/tl.htm. This program allows you to compare up to four loans at the same time. All you have to do is enter the loan amount, terms and rate, and the program does the rest.

If you’re looking at more than one property or loan, you can compare up to four on your Palm-Pilot screen. This is great for field work-there’s no need to write the figures down and not know if any of them are even a good deal until you can get to a PC.

The program allows you to save all properties under the name you give them, and look at where you are in the amortization table at any time. There are over 200 other options to calculate your investments down to the penny. These include viewing your equity, loan-to-value, expected rent, payoff, net operating income, cash flow and more.Both of the above programs can be used for any loan calculations, I’m just giving examples on mortgage loans.

Find anything in your portfolio in seconds, anywhere – anytime, send an email with “ebook” in the subject to receive a free version of the ebook at: ebook @ robertlett .com

Robert Lett. April 2005

Robert Lett
http://www.robertlett.com

Let me ask you a question: How much is your computer worth when you or your employees are sitting in front of it? Now, how much is that same computer worth when you or your employees aren’t sitting in front of it?

When you’re out of the office and that potiential client calls, do you have to tell them that you will get in touch with them when you return to the office? Is that potiential client calling your competition in the mean time to see if they get a better response? What if you could have all your important files with you 24 hours a day, 7 days a week? Hanging on your belt or sitting in your purse, and it wouldn’t weigh too much more than the cell phone you are currently carrying.

Order now at the discounted price for reading this article at http://www.robertlett.com/order.htm

For a free copy of our ebook, email a blank email to: ebook @ robertlett .comWant more information? Take a look at: http://www.robertlett.com/whatisit5.htmGet our free monthly tips and updates newsletter, email us at subscribe @ robertlett .com

Real Estate Professional in the Palm of Your Hand

Many real estate agents begin and sometimes sadly end their careers without a plan. And as the saying goes, failing to plan is as good as planning to fail.

Sure, some do the usual and expected things to cultivate new business, like mailing letters and post cards to friends and relatives, phoning acquaintances, and giving out business cards to any and everybody they meet.

Heck, some are courageous enough to “cold call” prospects, the most dreaded of all tasks! And while all of these activities are good things to do, they don’t necessarily translate into new business opportunities – now or later!

And while these may be good strategies you need more. But instead of working harder why not work smarter?

The most successful Realtors and Real Estate Agents have “lead generating systems.” Some Farm Expired Listings for huge profits.

A good listing system can:

jump start new or average real estate sales career; bring in real estate listings on a regular basis; week after weekgenerate prospective buyers and sellers; give you marketing exposure in months rather than years; and position you to know the best real estate investment buys

Personally, I love Expired Listing Systems and their laser beam like focus on warm, responsive sellers. Sellers that are typically still Realtor friendly, eager to sell and will do what it takes to get their properties sold.

Owners of expired listings are motivated for many reasons; double mortgages, vacant properties, terrible tenants, recently married and combining households, recently divorced and liquidating real estate assets, and on and on.

Plus, they have gone through a listing cycle and may be anxious to get on with their lives. But, as you know, or will soon learn, all listings aren’t worth having.

As for me, I initially listed every property that I could; vacant land, single family homes, condo’s, triplexes, mobile home parks, mobile homes, homes in top notch condition, fixer uppers, whatever.

And I got to feeling pretty darn good (and just a little smug) as my listing portfolio grew to more listings than I could manage.

So, I first hired a part time clerk/assistant to help me market my listings, then took on a newly licensed salesperson as a partner and split the listing fees 50/50. Pretty soon my listing system was humming and I was averaging 1-2 listings a week.

I then had an army of agents working for me day and night, as almost all of my listings were in the Multiple Listing System. Working to get me paid, even when I was chaperoning field trips, getting a haircut, or just taking a day off!

That’s what a good real estate listing system can do for you!

So, if you don’t have a good listing system you should get one. After all, if real estate listings are the lifeblood of the industry then how successful can you be without them?

Lanard Perry is the author of “Farming Expired Listings – Your Personal Guide To Listing Success.” Visit his website at http://www.farmingexpiredlistings.com for more real estate sales and marketing ideas.

Farm Expired Listings For Big Commissions

Branding can be done to any product, or any person. Before undertaking an exercise in personal branding, however, consider your distinctive strengths and abilities and what they offer the market place. Traditionally personal branding was for sporting celebrities who gained enormous coverage and following through their sporting prowess. Movie stars have also had celebrity status and association since movies began.

A personal brand is about creating strong, favorable associations in the minds of people that you encounter. If you don’t actively do this, they will still make associations. Therefore, it may be better to be proactive and undertake the branding exercise for yourself, you cannot control what they think but can give them some information to assist with the associations.

WHY BRANDING OURSELVES?

- Places you in a leadership role
- Enhances prestige
- Attracts the right people and right opportunities
- Adds perceived value to what you are selling
- Earns recognition
- Associates you with a trend
- Increases your earning potential
- Differentiate yourself from the competition
- Position your focused message in the hearts and minds of your target customers
- Confers top of mind status
- Increases authority and credence of decisions

HOW DO WE BRAND OURSELVES?

Like any branding exercise, the key to personal branding is having a good product, one which you understand and pitch to the right market. The first step in personal branding is knowing who you are, find out what strengths your brand possesses and how these strengths can help you. Personal branding is not about presenting a fa

Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. The point isn’t if they will all work for you. The point is to know what is possible, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.

1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a “fix and flip.” You can often get the money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months.

2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% of the purchase price or property value. If you have 10% in cash, you might be able to borrow the other 10% from a friend or the seller.

3. Seller-carried second mortgages. Sometimes a bank will loan you 90%, and allow the seller to take back a second mortgage from you for 5%, leaving you needing only 5% for a downpayment.

4. Land contract. Called “contract for sale” or other names as well, this just means the seller lets you make payments, and delivers the title upon payment in full. I sold a rental this way for $1,000 down, because I wanted the 9% interest, and the higher price I got this way.

5. Credit cards. If a seller will take $10,000 down on a fixer-upper that you expect to make $20,000 on, why not use credit cards? This is a true 0-down deal for you, and if you turn the project in six months, you will have paid $900 in interest on an 18% credit card. Don’t let $900 get in the way of making $20,000.

6. Retirement accounts. The laws get pretty complex in this area, but you can check with a tax attorney to see how you might borrow from your own retirement account to finance real estate investments.

7. Friends and family. Keep it all business, if you use this source, but loaning you money at 7% isn’t a gift if their money is getting 2% in the bank.

8. Note buyers. The seller needs cash. He raises the price, and sells to you for $100,000 with no money down, taking back two mortgages from you for $90,000 and $10,000. He arranged (or you did) for a note buyer to pay him $80,000 cash for the first mortgage at closing, getting him the cash he wanted. You pay two payments now, one to each note holder.

9. Get a loan on other property. Interestingly, if you take out a home equity loan for a vacation, and then forget to use it for that, you can use it for the downpayment on an investment property, without violating the rules of the bank that gives you the primary mortgage. In other words, you got in with no cash of your own.

10. Partnerships. For bigger projects, you could arrange for five investors to each put money into a partnership, with your share being the management responsibility instead of cash.

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com

Ten Creative Financing Techniques

1. What is an escrow?

Escrow is defined as a process where parties deposit instructions and funds with a “disinterested” third party until conditions of the instructions are met. This applies whether the purchase is real estate or an expensive Ebay item. In a real estate escrow, a title insurance company, escrow company or attorney will traditionally serve as the third party. They will oversee completion of the instructions (or purchase contract), ensure funds are paid to the seller and the title to the property is transferred to the buyer. In a refinance, your escrow closer will ensure that your previous mortgage company is paid off with the new loan proceeds.

2. How is an escrow started?

If you are working with a real estate agent, your agent will “open escrow” for you by depositing your earnest money check and the purchase contract with an escrow/title company or attorney. If you are purchasing a property without the help of a real estate expert, you will have to open the escrow yourself. For a refinance, ask your loan originator for assistance.

3. How will you hold title to the property?

Ways of holding title (such as sole and separate, joint tenancy, community property with right of suvivorship) vary by state. Most escrow/title companies can provide information on what applies for your state, but you may want to consult an attorney for legal advice for your particular situation. This is a decision you should make immediately along with exactly how you want your name to appear on all documents. Provide this information to your escrow expert as soon as possible as it allows them to prepare the documents correctly. If you decide later to change how you want to hold title or how your name should appear, these changes may delay your escrow closing.

4. What is title insurance?

Title insurance protects your investment by insuring you are the only one with a valid claim to that property. During the escrow period, a title company, abstractor or attorney will research historical records that pertain to the property you are buying or refinancing. After examining those records, a commitment for title insurance will be issued, indicating any items that must be cleared prior to closing. The commitment will be sent for your review. Contact your escrow/title officer or attorney if you have any questions about the commitment. You will receive your title insurance policy after the closing.

5. How is the escrow closed?

The escrow officer or attorney will make sure all contract instructions are met. They will monitor deadlines and compliance (such as for home inspection, loan approval, termite report, hazard insurance) and request payoff information for existing loans against the property. If you are the seller, you will sign documents to transfer the property to the buyer. If you are the buyer, you will bring required funds to the closing appointment, and sign loan documents and other legal papers. The seller’s existing mortgages or other obligations will be paid off, the seller will receive any remaining proceeds, and the transfer of title to the buyer will be recorded at the courthouse. The escrow is then closed.

About the Author:
Sharon Hassler was a successful loan officer and real estate agent in Southern California, then served as Communications Manager for First American Title-Arizona for 11 years. She is President of Go Get Experts, LLC, owner and operator of http://www.GoGetEscrow.com, a web page directory for escrow officers, closers and attorneys, along with http://www.GoGetLoan.com, GoGetNotary.com and GoGetHome.com.

Copyright

These are real building questions that I received from readers of my e-book, “Residential Development Made Easy” with answers from me, Colm Dillon, and a major USA Construction Master operating in 48 States.

Question 1.

Are there mandatory common national building codes that every state IN THE USA must abide by?

Reply

Unfortunately, the answer is no. But if so, would it make my job would so much easier if there was. Every county, township and city has its own codes.

We simply call each one and get the local codes and build from there. Can you imagine the inefficiency and therefore costs that this process adds to the cost of doing business from a builders and customers point of view.

It would be logical and wonderful if there was a common code for all States with separate list of Variations issued by each authority for things like climatic conditions.

By that I meanin cold climates we want codes to reflect minimum conditions for “retaining ‘heat’ inside the house” and the reverse for tropical climate.

However the basic code for building houses to be the same as to structural soundness etc. Unfortunately there is no “one” website to gain access to this information, you have to contacteach individual authority.

Question 2.

When looking to develop raw land whom is the best person to start with to determine what you can actually build on it?

Reply

I have written lots of information on this subject on my web site Blog at:http://www.realestatedevelopmentcoach.com/emailblogbut the start point is to determine the zoning of the land in question – from there everything flows.

I mean if you are looking at land that is zoned industrial (and you don’t know this) any thought you may have of building a house on it is a waste of time, OK?

Next – if it is land for creating a residential subdivision, go and see an engineer, if you live in the USA; or a Land Surveyor in other countries like Australia, New Zealand or the UK.

If the land is zoned for units, apartments, condos or any higher density development, you should see an architect if you want to develop the property yourself.

Question 3.

I have seen Hearing Notices placed on recently purchased land in my area. It seems to take months before the hearings in our area of P.G. County, Maryland actually happen.

Reply

Well, just as there are building codes for each area of the country, so too there are development codes set out in the Town Plan for each town, city etc.

The Town Plan sets out the development rules, such as building line set-backs from each boundary; height restrictions; material standards and lots of other things.

In addition to that you usually have to advertise to the Public by newspaper, as well as a sign on the property, that you have lodged a Development Application.

You will have been told by the Town Plan, how many times the advert has to appear and how long the sign on the property has to stay erected on the land – oh yes, it has to be erected on the front boundary, not on the rear boundary behind a bush.

All this takes time – advertising alone can be a month, then you have time if Objections from the Public are lodged – then time for it to be checked by authority officers – then it has to get on the Council’s agenda. Oh sorry, you missed that meeting. You have to wait another month. So yep, it is a long process.

Anyone who has an interest in the property or will be directly affected by what you propose to develop can attend these meetings.

Some people may not want you to build because of the noise, or the traffic your development will add or because they once saw aliens there. You get all kinds of people who reject change.

Question 4.

As a member of the public how do they make their concerns or support be heard?

Reply

If you’re a citizen attending the hearing, the chairperson will ask anyone who wishes to speak to approach the podium and state their objections or comments.

If you are better organized, you can lodge an objection in writing, setting out your reasons and referring to similar cases that support your position.

Question 5.

If you are the developer what action is required of you? What team of people do you need to be with you?

Reply

If the fire in your belly tends to come out of your mouth, when provokes, don’t attend – someone will find your ‘hot button’. Result – lose your cool, you lose the argument.”

If you’re proposed development is contentious, then I would engage a professional Town Planned to represent you.

As a professional, they are independent; can argue on the basis of town planning principals; will know the weaknesses of the local town plan; and will put your case in language and temperament far better than you can.

Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling ‘How-To’ E-book, “Residential Development Made Easy,” With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com/ez

Get To Know About Building Codes & Town Planning Applications, If You Want To Build A House

The concept of negative gearing has been originally developed to encourage real estate investment in Australia by allowing any income losses from property investment to be deductible from other income as a tax benefit. This means that the taxable income of the owner will be reduced after the deduction and therefore the total tax payable is also reduced.

In view of the fact that many of the profits from property investments are usually obtained as a capital gains at the time when the property is sold, but do not generate positive cash flow from rentals during the course of the holding period, negative gearing therefore came in to address this issue.

You lose either way

However, the flaw with negative gearing lies in its concept as well. If an investment generates a positive cash flow, the increased income will make the investor liable to pay more taxes as well. In the end, the investor loses either way. If he makes money from positive cash flow, he has to pay part of it off in taxes, while negative cash flow will take money out of his pocket. Therefore, with a negative geared property, it is not possible to get a positive cash flow and pay less tax at the same time.

No guarantees on property value appreciation

Investors who are encouraged to put their money into negative geared property should think twice. As these properties are expected to generate profits only through capital gains, the value in capital gains should then be greater than the total losses incurred over the course of the holding period. However, there is no guarantee that the value of the property will appreciate, or at least appreciate enough to cover your losses. Also, you can’t possibly use your expected future profits now as it is not been realized yet.

Beware of attractive property packages

Who gains from this then? Well, investors who are seeking investment property will tend to seek out property developers or sales agents. In order to make a property seem attractive, they are packaged with elaborate financial models with expected returns on investment. However, commissions and profits to the developers have all been packaged into the sale price. With this, investors end up paying premium price for a property with negative cash flow, which is used to pay for hefty commissions to sales agents and developers.

The disadvantage of property depreciations

Another aspect that should be watched out for would be property depreciation for taxation purposes. While it is true that depreciation is applied and is used for tax deductions, however, accumulative tax deductions for depreciation costs on property with appreciating value may cause capital gains taxes to be large. This is because the greater depreciation you apply onto the value of your property, the lower its value will be on paper. Therefore, your difference between the sale price and the book value of your property at the time of sale will be great. This leads to larger taxes imposed onto you.

Do not purchase because of tax benefits

Finally, making a property investment requires careful planning and consideration. Extra caution must be put in especially when a property is projected to generate a negative cash flow. In the end, tax benefits should not the main reason for property purchase. You may end up losing a great deal of money in the end.

For more information, please visit http://www.mortgagemall.com.au

Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a real estate agent, Naomi has established herself as an analyst and property consultant.

Negative Gearing ? It?s Not to Your Benefit!

Questions Sellers Should Ask in Agent Interviews:

1. Is your license in good standing?

You can check an agent’s certification yourself with your state’s department of real estate. Avoid working with an agent whose license is not in good standing.

2. How many years of education and experience do you have?

Experience and continuing education typically make for better agents.

3. 3. How many homes have you sold in my neighborhood?

An agent who specializes in the area in which you are selling your home is preferable. This agent will be the most familiar with recent sales activity and will be able to recommend a good market price for your home.

4. At what price do you think my home can sell given the current market?

This will allow the agent to display his knowledge of your market.

5. How many other sellers are you representing now?

The busiest agents often are the most efficient.

6. Will you handle all aspects of my transaction or will you delegate some tasks to a sales associate or administrative assistant?

A knowledgeable assistant can be invaluable, but make sure that you can connect with your agent when you need to.

7. How much can I expect to pay?

Commissions are negotiable depending on what kind of listing arrangement you have with your agent.

8. Can you give me a Comparative Market Analysis (CMA) of recent sales in the area and homes currently on the market?

This should contain listing and sales prices for recently sold homes as well as sales prices and the listing date of homes currently for sale. It also should include detailed property descriptions (such as square footage and numbers of bedrooms and baths).

9. What does your marketing package contain in addition to a Comparative Market Analysis?

Listing presentations should also include a suggested asking price for your home, information on the local housing market, advertising plans, a discussion of various listing agreements, and an analysis of sale proceeds at various price points and commission levels.

10. Can I list my house with you for 60 to 90 days?

Most consumer experts agree that a three-month listing period, or less, is best. You can always renew the listing agreement at that time.

11. Where will you advertise my home for sale to attract buyers?

Most agents will provide you with a list of newspaper outlets and Internet web sites where they will pay to advertise your home in order to sell it within your timeframe.

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