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

Real Estate

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. Read more

“Time” Is A Major Real Estate Wealth Growth Tool, So Use ‘IT’ And Watch

In this report I use figures from my area of the world … I know they don’t apply all over the world, but they should encourage you to get the figures for yourself.After all no report is going to make your money grow … it’s the knowledge you gain and “Your Application Of The Knowledge” that makes your financial wealth Grow.In another report I gave you a concept I borrowed from Phil Ruthven, a truly wonderful speaker on economics, on how he looks at Home Ownership.Now I want to look at the Tools we have available to help us Grow!real estate wealth,So folks, if you want Real Estate Development, you must use all the tools available to you to get some. Of all the tools you have, the single most important one is TIME.real estate wealth,

1. Time is your greatest friend. Time to buy good investment property and let it double in value every 8 to 10 years or better.real estate wealth,

2. Federal Government Real Estate Investment Tax Deductions are another tool the Government uses to tell you in Words, Dollars and Cents that they want you to get wealthy so you can look after yourself to your final days. real estate wealth,

3. Correct Financial tools are also vital to your wealth development. See my report of Finance. I will go into some further detail in this section on the use of Evergreen Lines of Credit and how they work.

4. Good Real Estate Management is the next tool. Well-managed and well-maintained real estate investments, that houses good quality tenants is also essential. Trying to do this work yourself, is a mistake. See my report on Property Management. real estate wealth,In Australia, it has been instilled in our consciousness, that we must all own our own home. And there is nothing wrong with the concept. It’s just that we should have been told to rent it out; Don’t live in it.

By buying a house TO LIVE IN, while we are young, we are wasting the wealth creating tools of Time, Double Income, (if married) Property Income and Tax Deductions. No wonder so many people have to play catch up later in life. real estate wealth,So the first clue to Real Estate Wealth Development is don’t buy a residential property for you and you partner to live in. You buy a house as an investment and you rent elsewhere.Growth Tool No. 1 – TimeTime is your greatest friend. Real Estate is a long-term investment and by being loyal to it, the real estate will reward you handsomely all through your life. real estate wealth,You can prove this to yourself, as I did, by getting the figures of average house sale prices, from the Australian Bureau of Statistics for Brisbane, the largest City in Australia.To save you the trouble I got the figures and I painstakingly went through them in order to validate the old wives tale that, ” real estate doubles every seven years.”Well, it does better than that, you’ll be pleased to know.I was able to get the figures from 1973/74 to 1994/95. I think I started there because that was when I arrived in Brisbane on transfer from Melbourne. real estate wealth,That is a twenty-two years period, during which we had several credit squeezes, a few recessions and a few good times as well.In 1973/74 an average house price for the whole of Brisbane was $23,234.00. That average includes the best and worst house and suburb.Seven years later, in 1980/81, it was $43,470.00 an increase of 87%.However by the next year, the eight-year, it had risen to $56,757.00 giving an increase of 144% from 1973/74. So you see that it more than doubles by the eight year. real estate wealth,Going on a further seven years from 80/81 to 87/88, the $43,470.00 went up to $83,679.00; a further 92%.Interestingly, going on one more year to the eight year, it had again increased to $113,917.00 giving an increase of 162% from 1980/81.A further seven years from 87/88 to 94/95, the price of the average house in Brisbane went up to $163,325.00; a further 95% increase.

real estate wealth,Unfortunately the Bureau amalgamated the Shires of Logan and Caboolture into this statistical base and I could not extract the figure for the eight year.However on the evidence of the previous 22 years I believe it is safe to assume the increase would be at least 5% making it an increase of 100%. real estate wealth,So these figures prove that over a period of 22 years the asset has increased by seven times its original value and all you would have to do is buy it at the beginning.I hope this gives you some idea of why TIME is so important to growth. And remember that I am talking about average prices, I am not talking about hot inner suburbs that will obviously do much better.If you REALLY understand these figures; you should ask yourself why you are willing to miss out on buying good real estate by stopping negotiating for the sake a few hundred or a few thousand dollars. I’ve seen this done many times because of stubborn-ness. Crazy! real estate wealth,For goodness sake it’s the Real Estate Asset that is in short supply; not money. If you have found real estate that fits your criteria; BUY IT!

The Real Estate Development Coach Copyright Colm Dillon, October 2003All Rights Reserved.

Real Estate Rebate – Can The Traditional Model Survive?

The Beginning Of The Real Estate Rebate: Society as a whole has been significantly impacted by the emergence of the Internet. It has made the world a smaller place and has intern changed the way we communicate and conduct business. It has helped companies target their clients through avenues such as Google & Yahoo, and has subsequently put the products and information that consumers looking for, at their finger tips.

Social Networks such as Myspace and Facebook have made it possible to stay in contact with friends and family around the world via the Internet. As time passes these changes and effects will become more wide spread and alarmingly self evident. One such industry that stands to be dramatically affected is Real Estate.For decades, the real estate industry has been defined by traditional representation in which an agent charges the seller a commission to market and sell their home or represents buyers through the entire home buying process. In the past, the traditional model was the staple of the real estate profession and it faced little to no opposition. This has begun to change. With the dependency that society and has developed on Internet, creative minds have begun to develop new models that cater to every type of consumer. As a result, consumers no longer have to settle for the “One Size Fits All” traditional model, but have a choice in choosing the type of service that fits their real estate needs.New Models: Consumers may now choose between a variety of real estate products and services.

These services are characterized by enabling buyers or sellers to seek specific real estate assistance as opposed to the whole package. In the case of sellers, real estate agents will charge a fee only for the services they provide. For example, a seller may only want to list their home on MLS (Multiple Listing Service Used By Real Estate Professionals around the Country) for the added exposure, and require some assistance drafting a purchase and sale agreement. Listing a home and receiving assistance with a P&S will cost you hundreds of dollars as opposed to paying a 5%-6% commission that would cost thousands of dollars. Buyers who are interested in finding a home on their own or willing to participate in the initial house hunting work, can receive a rebate at closing. This model gives buyers the professional assistance of a realtor and rewards them for their efforts with a portion of the commission at closing. One company that gives buyers a rebate is SharpBuyers. They are a national real estate rebate company based out of Boston Massachusetts. They have agents all throughout the country that will help buyers find a home and give them a rebate at closing. Another emerging model is real estate consultants. These are licensed real estate professionals that exclusively charge flat fee’s for specific services.

The brokerages that offer these innovative real estate services are referred to as Discount Brokers, Rebate Agents, and Real Estate Consultants. It can clearly be seen, that all of these new models engage the buyers and sellers in the home buying or selling process. Subsequently, these models are ideal for the home buyers of tomorrow, generation X and Y. These are tech-savvy home buyers and they are not afraid to delve into the process if it means they will save thousands of dollars. Ten years from now, generation X will collectively be in their early and mid 30’s. Many will use the traditional method to buy their first home, while others will seek out innovative brokers. How will the market share shake out in 2017? Only time will tell. It is anticipated that many traditional brokerages will be forced to adapt to a mixed service model, meaning they will offer both traditional and discount services to buyers, rather than one or the other. This may prove to be a necessary strategy if traditional brokerages would like to remain competitive after 2020. The new real estate business models enable consumers to have the best of both worlds, professional assistance and more money in their pockets.

Real Estate and The Internet Today: In today’s world, the effect that the Internet has had on the real estate profession is extremely apparent. As the popularity of the Internet initially grew, many agents were concerned that consumers would cut them right out of the deal. To date, this has not been the case. The real estate industry has come to embrace the Internet and all of the great marketing tools that it has given birth to. It has also helped real estate professionals have better access to listing information, recent sales history and various statistical data reports. Leonard Nomura of Bentley Real Estate Group says he could not imagine life as a broker without the Internet. The numbers are astounding. According to the National Association of Realtors, 77% of home buyers used the Internet to find their homes in 2005. This has steadily grown from 2% of buyers using the Internet to find their homes in 1995 and is speculated to be over 85% today. According to clickz.com, 50% of all consumers who surf the web, do so with the intent to purchase consumer goods and services. This includes Real Estate, automobiles, clothing, music and anything else imaginable.As a result of the emerging mixed service models, consumers can now choose from a range of real estate services that did not previously exist. It is believed that many real estate professionals see these new models as a threat because of their ability to significantly impact the traditional real estate brokerage’s market share.

According to Real Trends an industry newsletter, alternative Real Estate Models currently make up 2% of the market, but could grow to 12% by 2010. The transformation of the real estate industry has only just begun. Time will tell the true story of how the market will shake out, but the bottom line is this; alternative real estate models are putting money back into consumer’s pockets and you will always put a smile on someone’s face when you show them how to save thousands of dollars.

The Keys to Success to Investing in Real Estate

Most real estate professionals flunk within the first few months of trying to create a business enterprise out of real estate investing. The trick begins with a beneficial marketing plan and then practicing a disciplined effort to the marketing plan on a even basis. There is a lot more required to succeed, and you will encounter more tips, tricks and unique real estate marketing techniques in this article. Read more

Top 7 Mistakes Rookie Real Estate Agents Make

Every time I talk to someone about my business and career, it always comes up that “they’ve thought about getting into real estate” or know someone who has. With so many people thinking about getting into real estate, and getting into real estate – why aren’t there more successful Realtors in the world? Well, there’s only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office – for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table – lots of energy and ambition – but they also make a lot of common mistakes. Read more

Real Estate Investing Financing Truths – Part 2

No Money Down and other ‘Creative’ Real Estate Investment Methods

For many years, investors have seen the traditional real estate investment methods described in Part 1 of this article as a lot less than desirable!They began looking at the prices of houses and finding methods of bringing the price more in line with making more money in a faster way.These savvy investors developed ways to get loans on properties that allowed them to pull money out whenever they buy a real estate investment (cash back at closing) and lower their payments to build up their cash flow (‘creative’ investing).They even developed methods of determining a Sellers motivation for selling – and bought the property at a discount price.These creative investors also saw that some Sellers were not able (for whatever reason) to sell the property at a discount price, however, they still needed to get rid of the property, as they didnt know how to manage it as a landlord, or make money from it – not that it couldnt be done, they simply lacked the knowledge of how to do it.The Seller just never learned how to profit from a real estate investment. Read more