Real Estate Investing – 6 Things That Can Add Value to a Property

Real estate investing is seldom for the fun of it. Real estate investors simply do not decide one given day that it would be entertaining to take cash out of the bank in order to purchase a tenant problem in any apartment building. Real fun is taking the kids to Disney World. Real estate investing is about making money. And the reason people start real estate investing is to make a lot of it.

It is not about luck, however. The most successful real estate investors do not purchase income property on the flip of a coin. Real estate investors who succeed understand that the real money is made in real estate investing when value can be added to the property. If you are new to real estate investing, you may be unaware of six things that can add value to an investment property. So you are encouraged to consider them whenever you purchase or own rental property.

  1. Inflation- Inflation increases rental property value simply because of the increased cost to replace the property. The increased cost of land, building permits and fees, materials, or actual construction adds value to properties already in operation.
  2. Improved infrastructure- This is the effect due to development around the property. Roads, electricity, water, and sewer systems, police and fire protection, parks, hospitals, and so on have a major effect on the value of property.
  3. Economic conversion- When the use of a property changes, like when new zoning laws allow you to convert a small apartment building to offices or a single-family home into a four apartments it can add value.
  4. Increased cash flow- It is understood that real estate investors buy the cash flow in rental property. An investor who is able to increase the cash flow (assuming other factors do not change) will increase the resale value of income property.
  5. Capital improvements- Unless the value of the land makes capital improvements superfluous, adding extra apartments to a building, or an extra bedroom or bathroom when the market demands it, can increase property value.
  6. Supply and demand- The shortage of available rental property at a time when the demand for rental income property is high drives rental property values up. This makes it important to pay close attention to the local market, because when your town or region has room to absorb more, and investors are there to buy, your rental property value will increase.

Most of these factors are not in the hands of a real estate investor. You cannot (for example) control improved surrounding development or prevent the construction of additional units that may flood the market and thereby drive your rents down. But you can research it.

Meet with your local planning and building department. Ask them about their comprehensive plans for the area. Learn whether zoning can be changed that would permit a more profitable use for the property. Discover how many permits have been issued to builders for the construction of comparable rental properties in the area.

Always keep in mind that successful real estate investing is not accidental. Real estate investing is a business, and it is incumbent upon you (as CEO) to diligently research ways to make that business profitable.

So You’re Thinking Of Becoming A Real Estate Investor?

Becoming a real estate investor should be seriously considered before investing in your first property.

Today, there are many career and part time business opportunities that promise to help you live a life of greater wealth and freedom. There are, for example, work-at-home opportunities that promise to allow you to stay at home, parked in front of a glowing computer screen and promising you’ll be earning a good living. The fact is, you can become an entrepreneur in just about every field. You can own a chain of stores, start your own home-based business, or you can sell your own information products such as audio discs or online courses online.

With all these options, why should you become a real estate investor?

In my opinion, even with the many opportunities out there today, becoming a real estate investor is still one of the smartest choices for many would-be entrepreneurs, and here’s why. Unlike other choices:

Becoming a real estate investor can actually carry less risk.

The truth is, everyone needs real estate sooner or later. Businesses need retail space in order to house their shops or store their supplies, and families need homes in which to live.

This constant demand ensures that the smart real estate investor always has willing audiences looking for his or her product. This is simply not true of people who sell information products or who work at home at other careers.

Secondly, the earning potential for real estate investors are sky-high.

Because real estate investors are selling very high tag items — homes sell for anywhere from tens of thousands to millions of dollars — the profit margins can be terrific.

At the same time, start up costs for the real estate investor are not prohibitive. If you want to own your own chain of restaurants, you may need to invest hundreds of thousands of dollars or go deep into debt in order to purchase the space, supplies, and in order to hire the staff. You can realistically become a real estate investor while still at college and living in a dorm room.

You do not have to have specialized knowledge, tons of ready cash, or much of anything else except knowledge and focused determination. The truth is, there are already a number of mortgage products, loan products, and other financial resources in place to help the would-be real estate investor get started. After the first real estate deal or two, the real estate investor generally has enough money of his or her own to start investing in more properties.

Therefore, the real estate investor does not have to stay in debt and therefore face the risk of losing money in a bad economy.

Thirdly, becoming a real estate investor can be deeply satisfying.

A real estate investor helps families find an ideal home, helps people with bad credit find a property that they thought they could not afford, and helps businesses established a base of operations. It can be truly rewarding for the real estate investor to make such a deep impact on people’s lives. At the same time, the real estate investor enjoys complete freedom. He or she does not have to report to a boss, spend hours in a cubicle, or even spend hours at home.

“This sort of freedom — combined with the truly awesome earnings potential of being an investor — makes real estate investing a wonderful part time business opportunity.”

If you want to earn a real living while enjoying greater freedom, consider all your options. Once you do, you may find that becoming a real estate investor makes the most sense. This is the opportunity that allows you to survive in just about every economy and allows you to enjoy a truly rewarding career and truly terrific profits.

To Massive Profits.

Brad Wozny


PS. How would you like to generate a six figure bank account or realize seven figure profits in as little as seven months?

Real Estate Agents In Chicago – Selling Your House

There is a fortune out there in property deals waiting to be made by real estate agents in Chicago, New York, London, Mumbai, and Shanghai. This group is a very talented group when it comes to making money. The huge gap in property supply and demand is what is driving the increasing importance of real estate brokers in these markets. There is a great shortage of quality properties in these cities and it is coupled with the large increase in disposable income of the highly-paid professional classes. This has resulted in a large increase in interest in real estate.

Real estate agents function as go-betweens, assisting both a property’s purchaser and its seller. They do that by displaying to the potential purchaser properties which fulfill his or her requirements at a satisfactory price. Concurrently, the agent is assisting the seller by displaying his or her property (including advising on ways to show the property to its best advantage) and by working to ensure that the seller is properly compensated. The broker comes to be considered truly indispensable when the deal turns out to be in everyone’s best interest.

If you are working in any big metropolis like Chicago, and you have the right resources at your disposal; you would certainly want to invest in Chicago real estate such as a new house. Such an investment ensures that you beat inflation through price escalation of property and at the same time affords you the opportunity to live in a better apartment in a better location.

You can search for real estate agents in any metropolitan city like Chicago through dedicated web sites dealing with the real estate industry. You must check the background of such real estate agents before making use of their services. This also facilitates that you land up getting a good deal as when you compare the services of a number of real estate agents, you can have a wider option of choosing the best deal.

A wise consumer will make a point of learning real estate law in a certain area so that he can evaluate the offers real estate agents make to him. Like in any other profession, there are unscrupulous real estate agents who promise their customers anything just to make a sale. It is far better to study property laws than to be conned by an agent into a transaction which isn’t honest and aboveboard. A little time spent in research can save you thousands of dollars and a huge amount of stress

Remember that your chances of securing a good real estate deal gets enhanced by employing the services of real estate agents, subject to your smartness in dealing with them and your ability to sieve through their talk.