Many of the richest people in the world started out in real estate. That’s why real estate investment is so popular. But what are some essential things you should know before jumping into real estate?

1. Know how market timing works.

This means that you need to not only research how market cycles work, but that you need to sit back and watch them for yourself. The fact is that markets go up and markets go down. A lot of successful investors aren’t looking for a three-month buy and flip. They buy when the market is low and sell when it is high.

2. Know how to analyze real estate numbers.

You have to be able to identify all of the factors that are affecting your profit.

There are four major parts of real estate investing: cash flow, appreciation, loan reduction and tax benefits. You need to understand how the four factors work together to produce a rate of return.

Real estate isn’t simply making you a profit when it appreciates. And it isn’t necessarily loosing money when it depreciates.

3. Know the economics in your area.

You have to look beyond the simple growth of the neighborhood you are investing in to the overall health of the city, state and country. For example, if interest rates are rising, you need to understand that borrowers are being cut out of the market.

The six aspects of economics you must understand are: mortgage interest rates, affordability indices, supply and demand, demographic information, commercial real estate and the job market.

It helps potential investors to take classes in both macro and micro economics. Macro will help the investor understand the large forces that impact real estate, such as recessions, national interest rates, war and demographics. Micro will look at individual sectors and focus on the local real estate market, such as local disasters, local recessions, unemployment rates, supply and demand, new housing starts, housing for sale and types of vacancies.

There is a lot that you need to know before you jump into being a real estate investor. Yes, if you are just buying and fixing up and selling one house, you have the potential to make money. But if you plan to do this as an investment, you need to obtain the necessary education. Otherwise, you are gambling with your money.

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Agriculture is king in Bakersfield. The region grows over 250 types of crops, with about 30 types of fruits and nuts, 40 types of vegetables, and over 20 field crops. Lumber, livestock, poultry and dairy products are also big industries here. The area is also home to the California State University, and Bakersfield College, and numerous museums and galleries.

Bakersfield Homes

Bakersfield properties pool is 83,428 residential properties including Bakersfield new homes. The median age of real estate in Bakersfield is 1979. The average household size is 3.41 people. 3% are one bedroom homes, 14% are 2 bedroom homes, 56% are 3 bedroom homes, 22% are 4 bedroom homes, and 2% are 5+ bedroom homes.

Bakersfield Mortgage Statistics

Homes With No Mortgage 18%
Homes With Mortgage 82%
First Mortgage Only 63%
First & Second Mortgage or HELOC 19%

Bakersfield Area Real Estate Tax

Bakersfield Real estate Tax: Median Real Estate Taxes (2000) were $1,422 comparing to 1999 Median Family income $ 45,556. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Bakersfield School District: Children make up 32.7% of Bakersfield population. Bakersfield has 80,683 under 18 years old residents, or 0.81 kids per one worker, or 0.97 kids per one household.

Bakersfield Real Estate & Bakersfield Homeownership

There are 18354.16 or 22% one person households, 23359.84 or 28% two person households, and 14182.76 or 17% three person households in Bakersfield, California. Median residents age is 30.1, Senior citizens (65+) make up 21,681 or 8.8%% of Bakersfield population.

There are 99,769 workers (over 16 years of age) in Bakersfield. Of these, 92.68% drive to work. Approximately 1.73% of workers in Bakersfield take public transportation. An estimated 1.32% walk to work.

Median Bakersfield homeowner’s housing expenses are 22%

Crime in Bakersfield (2003), crimes per 10,000 residents per year
Violent Crimes 61.28
Robberies 17.77
Aggravated Assaults 40.88
Property Crimes 570.8
Burglaries 109
Larceny-Thefts 381.09
Motor Vehicle Thefts 80.71

Invest in Bakersfield Properties

When making a decision about buying real estate in Bakersfield California area, you should consider the following statistical data:
Near Medium City
Near Large City Los Angeles, California
Bakersfield Zip Codes 93301, 93304, 93305, 93306, 93307, 93308, 93309, 93311, 93312, 93313, 93314
Bakersfield Area Codes 661
White population 61.87%
African-American population 9.16%
Asian 4.33%
American Indian & Alaskan
Hispanic (of any race) 32.45%
Median Family Income (1999) $ 45,556%
Population Below Poverty Level 17.72%

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Real Estate Demand

1. Does the area have decent job growth? Ask local authorities and use census information. Ideally, you want to see job growth equal to or exceeding population growth. You also want areas with professional jobs moving in. It is estimated that for every professional job created, there are four service jobs created, and all those employees need a place to live.

2. Is the population growing? You can check the US Census figures online, or ask the local government if they have the statistics. Stay away from areas that have little growth.

3. Is there a decent quality of life? It’s subjective, but important. Are there theaters and bookstores? Count coffee shops and cafes. Trendy areas usually have increasing demand for housing. It’s also a good indication of a high quality-of-life if people are willing to take lower-paying jobs just to live there.

4. Is there wealth in the area? It’s a good sign when there is some degree of wealth in a town. Look for nice homes. Wealth means everything doesn’t die when the economy slows.

Real Estate Supply

1. Number of homes for sale? Lower supply of homes for sale means upward pressure on prices. This indirectly drives up rents as well, which makes for better investing.

2. New construction? Census figures can tell you what’s happened over the last ten years. Check with the local authorities to see if the the number of housing units they’ve issued permits for is more or less than the expected population growth.

3. Rent and vacancy levels? Rents have to be high enough, and vacancies low enough to justify investing. When we first came to Tucson, every building had vacancies We saw a man holding a sign that read, “Apartment – $250 Per Month.” A great place for renters, but not so great for landlords.

4. The available land that is buildable? Of course, less available land is better for future appreciation. When the land runs out, the prices start accelerating upwards.

When you use these questions to compare various towns and cities, you’ll see the differences more clearly. You’ll have an idea about how housing demand compares to supply in each. This will help you pinpoint the best investment real estate locations.

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A popular investment strategy, especially for new investors, is to purchase a more run down, mismanaged apartment complex at high cap rates. The cap rate, or capitalization rate, is found by dividing the Net Operating Income by the Purchase Price. Properties that are low performing often sell their apartments at a higher cap rate because there is more of a risk associated with them.

These properties are in need of many changes in order to become a commercial property that is working at its maximum potential.

Before you purchase a large commercial apartment complex, you need to get certain information. This information is crucial to your assessment and evaluation of the property.

There are two states you need to understand regarding the property, the state it is in currently, and the state it will be in after you fix all the major problems.

When you first find or are introduced to a property, be sure to ask for the income and expense statements. A lot can be told from analyzing the numbers that are reported on a monthy, quarterly or yearly basis. You can even use them to see how the property has performed over time. You will be able to see gross rents, expenses, net operating income, and all the items in which income and expense fall under such as refrigerator rentals and pool maintenance, respectively. Use this tool as a way to project future income after raising rents, filling the vacancies, transferring all costs to the tenants, and making the community an overall enjoyable place to live.

You must know how many units are in the complex, and what condition they are in. You can see what condition they are in by checking a certain percentage of the total units and assume that most are in that condition. However, it is always better to check all the units so you know exactly what condition the apartments are in. This could be a basis for lowering the asking price if the units are in far worse condition than you originally thought.

The vacancy factor is an important one. When a property has many vacancies, like 20% and above, it is not performing well. If you can fill these vacancies, then your ability to turn the property around is much greater! You must view all working leases, and ask the current tenants to sign a paper to verify the leases that you were given by the owner or working manager. You would be surprised how many owners may try to decrease their vacancy factor by false leases, just to make their property more enticing. However, if you are fixing the property up, then the larger the vacancy, the more opportunity you have to increase value and find a profit!

In order to evaluate this property, you must divide the asking price by the number of units and see what the price is per unit. You can use this to compare other similar complexes in the area. You also want to know what they are charging as rent, and what type of leases the tenants have. If the rents are below market rents, then you have the ability to increase value there. If your tenants have a full service, or net-net lease, then you have an opportunity to change it to a triple net lease, where the tenants pay taxes, insurance and utilities. You can literally pass all the costs of running the apartment to the tenants. After all, they are the ones using the facilities.

I am sure you can see the themes here. You want to identify areas where you can either increase or create value that was not there before. Be sure to get all the facts and numbers verified before you purchase your great investment. Be prepared to do some work to turn the place around. However, it will definitely pay off shortly when you use some simple tool, like increasing the rent and painting the exterior, making it a community where people want to live!

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Historically, people are not quite sure how Sarasota derived its name. One theory is that it was named after the daughter of Hernando De Soto, Sara. De Soto, along with Ponce de Leon and Panfilo Narvez, were the first explorers to land on the Gulf Coast in search of gold and silver. Another legend says that the name may have been derived from the Spanish “sarao sota”, which when translated means “a place of dancing.”

Sarasota, Florida is a fantastic, and colorful city. With a population of over 53,000, there are a lot of options for housing that are accessible to prospective homeowners. If you are considering building a home in Sarasota and need more information in regard to modular homes, there are assorted companies available to provide you and your family the very best home for your needs.

The Sarasota market continues to gain strength compared to the overall state of Florida, according to the Sarasota Association of Realtors. For example, Condominium purchases went up by 12% in July 2007, as compared with 141 sales in July 2006. The median sales price was up 14.8%, from $269,990 in July 2006 to $310,000 in July 2007. Single family home sales went up by 5% from 351 in July 2006 to 369 in July 2007, but median sales price was down 14.5%. Statewide however, the real estate market saw a decline of 24% from July to July for single family homes.

In deciding to build a home in Sarasota, there are some more questions to ask yourself and priorities you need to establish. Here are the stuff you need to consider:

* How much could you really afford in buying a home. A local mortgage company can help you answer this question.
* How much space do you need, or want.
* Are there specific areas of town that you prefer.
* How many bedrooms and baths do you feel you need ?
* Find out other amenities are important to you (ex: eat-in kitchens, family room, pool, attached garage, etc)
* How big a lot of land would you like to have
* Should the house be close to certain schools, your job, or public transport

In looking for housing developers and contractors in Sarasota, it would be best to check out the local yellow pages for additional support, or chck on online developers and real estate agents. One notable local developer would be McKenzie Builders LLC. McKenzie Builders is a full service residential construction company building affordable homes in Manatee and South Hillsborough counties on Florida’s beautiful Gulf Coast, with over 20 years of building experience in this area.

Another noted Sarasota developer would be Vision Homes of Southwest Florida. Vision Homes, according to its website, “ has redefined what “Excellence” means when it comes to residential design and building for the 21st Century”. Vision Homes is also acknowledged as Sarasota’s Leading Builder of Energy-Efficient Green Building Technology.

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If you are interested in real estate investing for handsome profits, you need to consider the curb appeal of any property you wish to rent or sell. A big part of the real estate game is buyer and tenant psychology. One thing that researchers have found about tenants and home buyers alike is that emotional response accounts for a great deal of investor success. In other words, the investors who can appeal to a tenant or buyer’s emotions — and make the tenant or buyer imagine themselves in the property — has the greatest chances of success. Curb appeal means improving the first impression that your property makes. Studies have shown that when the first impression of a property is positive, it is easier to convince a tenant or buyer to invest.

There are many ways that you can increase the curb appeal of your properties without a great deal of time and money:

1) Clean. A very tidy appearance is paramount to good curb appeal. Therefore, be sure to scrub the sidewalk, flagstones, walkway, windows, and siding. Mow the lawn, rake the leaves, clear the snow, and do everything you can to create the neatest possible appearance. You can do much of this yourself, although you may want to hire professionals or at least rent a high-pressure cleaning system for taking care of the exterior tiles or brickwork of a home. If the sidewalk outside your rental property or home is crumbled and in poor shape, you can generally contact the municipality to fix the problem.

2) Choose great colors. The color of your property goes a long way towards asserting good appeal. In general, you want to consider the colors of the properties around your property. If you are selling a suburban home, for example, located in a lot surrounded by pastel colored homes, you do not want to paint your property a right color. It would stand out too much. The right color blends well with the properties on either side of it. Make sure that the colors are fresh by applying a new coat of paint. Don’t forget the colors around the property, either. A bright green lawn or even crisp white snow contrasted with the few pine trees create visual appeal as well. If you’re interested in real estate investing, learn which colors to select, or hire a professional to select the right colors for you.

3) Repair. It should go without saying that you should ensure that everything outside is in good working order and looks attractive. This means that any broken walkways, bare patches on the lawn, and rickety shutters should be fixed up at once. You’ll find more success in real estate investing if you are selling a property that people want to buy.

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Burbank’s homes consist of luxury homes in the hills, and single and multi-family homes throughout the city. Its sunny weather, prosperous economy, relative safety, and consistently high-ranking schools make Burbank a popular place to live, especially with families and those in media and entertainment.

Burbank properties pool is 41,608 residential properties including Burbank new homes. The median age of real estate in Burbank is 1956. The average household size is 3.14 people. 7% are one bedroom homes, 39% are 2 bedroom homes, 42% are 3 bedroom homes, 10% are 4 bedroom homes, and 2% are 5+ bedroom homes.

Homes With No Mortgage – 26%
Homes With Mortgage – 74%
First Mortgage Only – 56%
First & Second Mortgage or HELOC – 18%

Burbank Real estate Tax: Median Real Estate Taxes (2000) were $1,640 comparing to 1999 Median Family income $ 56,767. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).

Burbank School District: The Burbank School District consistently rate as one of the most successful in the County. Parents are keen to purchase homes here in order to send their children to the highly successful District.

Children make up 22.3% of Burbank population. Burbank has 22,337 under 18 years old residents, or 0.46 kids per one worker, or 0.54 kids per one household.

Burbank Real Estate & Burbank Homeownership

There are 14146.72 or 34% one person households, 12482.4 or 30% two person households, and 6241.2 or 15% three person households in Burbank, California. Median residents age is 36.4, Senior citizens (65+) make up 12,859 or 12.8%% of Burbank population.

There are 48,430 workers (over 16 years of age) in Burbank. Of these, 89.33% drive to work. Approximately 2.56% of workers in Burbank take public transportation, reflecting the area’s over reliance on cars. An estimated 2.75% walk to work.

Median Burbank homeowner’s housing expenses are 22.4%

Crime in Burbank (2003), crimes per 10,000 residents per year
Violent Crimes – 28.21
Robberies – 6.88
Aggravated Assaults – 19.54
Property Crimes – 268.55
Burglaries – 49.84
Larceny-Thefts – 172.26
Motor Vehicle Thefts – 46.45

When making a decision about buying real estate in Burbank California area, many factors should be considered, along with the following statistical data:
Near Medium City -
Near Large City – Los Angeles, California
Burbank Zip Codes – 91501, 91502, 91504, 91505, 91506
Burbank Area Codes – 818
White population – 72.18%
African-American population – 2.06%
Asian – 9.15%
American Indian & Alaskan – {-}%
Hispanic (of any race) – 24.87%
Median Family Income (1999) – $ 56,767%
Population Below Poverty Level – 10.45%

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Contracts When Selling Your Home Without An Agent

It is undisputed that you can save tens of thousands of dollars by selling your home without an agent. Typical commission fees charged by an agent equal six percent of the sales price. On a $300,000 home, the fee of the real estate agent equates to $18,000 dollars. That is a lot of money you are leaving on the table.

If a seller can save so much money by foregoing an agent, why don’t more people do it? Simply put, they are scared of the process. In particular, real estate contracts can be a scary issue for most homebuyers. How do you know if you are doing it correctly? What if you don’t? Will you lose the home? Will there be lawsuits? Frankly, most people have nightmares about the idea of dealing with these issues. This need not be.

First off, most real estate agents do not know anything more than you do about contracts. They are in the business of selling real estate, not being legal experts. Moreover, most real estate contracts are of the pre-printed form variety. All and all, you need not be overly concerned with this issue. Of course, it isn’t my property.

There is a very simple way to get around the stress associated with dealing with real estate contracts and documents. The answer is found in the legal field. Specifically, you can hire a real estate lawyer to handle everything. You will get a legal professional that is one your side and who knows the details of the real estate process inside out. Frankly, they are a heck of a lot more competent than real estate agents when it comes to the transaction.

Ah, but isn’t it true that attorneys are incredibly expensive? Well, yes. In this case, however, they are much less expensive than paying a six percent commission to a real estate agent. Keep in mind our example above where we are paying a realtor $18,000 in commissions. Most attorneys charge in the $200 an hour range. If it takes 20 hours to handle the transaction, which is probably on the high end, you are looking at $4,000 in legal fees. In practical terms, you get much better advice and save $14,000 on commissions. In such a scenario, hiring legal counsel absolutely makes sense. Frankly, I am surprised more people do not do so.

The biggest barrier to selling a home by owner is often the fear of contract documents. Follow the above advice and you should have no problems.

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If your financial hardship has left you in a position whereby you are not able to pay your mortgage payment, whatever the reason may be, then you cannot afford to live in your home. Foreclosures are growing dilemma for many homeowners in the Untied States today; foreclosures are at an all time high. Alan Greenspan has made comments that the US may be heading for a recession in 2008.

Some lenders out there have not been playing fair, and some even to the point of unethical practices. These unethical practices are a primary reason that foreclosures are at an all time high and not expected to slow down in 2008, from what most experts have said.
On the bright side of things, you may have an option that may allow you to keep your home, even if the foreclosure process is already under way. Something that has been around for many years, and you may possibly utilize to save your home and equity. You may need to wait a year or two in order to cash out the equity on the property, but it is better then the alternative.

This option is referred to as a Lease Purchase Agreement, find a tenant to lease your home from you, with an option to purchase the home at the end to the agreed period or time; usually 12 to 24 months. You set a price for them to buy the house when the agreement is signed; this will allow you to set the price so you can save the equity and by some time to recover. With a tenant that has the option to buy your home you may be able to:

1) First and foremost is the avoidance of a foreclosure

2) Since renters are paying less today due to the high foreclosure rates, this may be a way to increase the monthly rent, due in light of the purchase agreement

3) A one-time payment, up-front as a non-refundable deposit, this is usually 1% – 3% of the sales price. The best part of this is that even if they decide not to buy your home, you still keep the money

4) Quickly locate a buyer for your property, most times faster then trying to sell you home in the traditional manner

5) Someone else will be paying the mortgage payment, and potentially a few hundred dollars a month more

Lease Purchase Agreements usually work well in any real estate market; these agreements referred to as a “lease option” as well. This is a very valuable strategy to keep in mind, especially during market that in a distress.

While there may be many other reasons to take advantage of a lease option, they are defiantly an excellent way to avoid foreclosure, and salvage your home from the bank. In a foreclosure, your credit will be destroyed for years to come, and the additional financial repercussions can take a tool on your personal life.

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