Commercial Real Estate Investment Strategies: Do-it-yourself Market Research Pays

One of the strategies commercial real estate investors like to employ is hiring consultants or market research companies to analyze a specific market a commercial real estate investor wants to pursue.

To a beginning investor, the overall strategy seems logical and well-intended. Who better to know a market than the analysts who spend there days and nights collecting, analyzing and reporting on such data?

I’ll tell you: YOU—the commercial real estate investor.

There is no substitute for doing your own research. There is no substitute for keeping your own counsel. There is no substitute for doing your own homework.

Why?

Because it’s YOUR MONEY that will ultimately be spent. It’s YOUR bank account that will ultimately reflect the success or failure of a commercial real estate endeavor.

Too many well meaning beginning real estate investors think they don’t have what it takes to do the homework required on a market. Too many well meaning investors yield their analysis people who supposedly know more about the subject than they do.

This is a costly strategic mistake.

I have nothing against market research people or consultants. I have no axe to grind with them. They are extremely competent, thorough people who provide a valuable service.

My issue is with HOW they are used by the commercial real estate investor.

The challenge is when an investor trusts their judgment–more than his or her own. Many times an investor will be in awe of their command of the information, specifically statistics.

The reason I say this is because I have seen many an real estate investor unwittingly fall victim to this process. It’s very easy to find yourself yielding to a “professional’s” opinion based upon research which you have paid handsomely for.

Don’t. It is a mistake that will cost you later on.

Look at it this way: Let’s say you want to invest in the stock market and you use the services of a stock broker to recommend a buy.

Do you really believe that the stock broker’s goal is for you to make a wise and carefully thought out purchase? Do you really believe their recommendation has been thoroughly researched and analyzed? Forgetting the self-serving aspects of the commission he makes selling you a stock, would you really want to trust him with your investment portfolio?

My guess is probably not.

So what the proper way to use these market research professional? There three common ways which these professionals are valuable to the commercial real estate investor:

1. One is as a way to flush out new ideas and do homework and research “heavy lifting” which need done that the investor doesn’t have time to accomplish on his or her own. The investor know exactly the information he is after.

2. The second strategy is as a way to confirm the findings which the investor already believes are accurate. In other words, the investor is looking for a second opinion before he commits more resources to the project.

3. The third strategy is very interesting: Some investor will use professional resources to poke holes in their strategy. To find the fatal flaw. To find “the fly in the ointment”. The investor will never admit this to the professionals, yet he wants to know all the reasons the deal won’t work.

You’ll notice one thing in common with these three strategies: The investor will always do his own research. It’s a critical aspect of success—one that should never be delegated.
About the Author
Specializing in commercial and investment real estate, Tony Seruga, Yolanda Seruga and Yolanda Bishop are always searching for new and profitable commercial properties across the U.S. Visit http://www.maverickrei.com for more great information

The Top 3 Real Estate Investment Strategies

There is a lot of information out there about real estate investing. This information can be sometimes confusing, because it is never really clear what the best investment strategies are. This article focuses more on the best strategies that will work in the current real estate market. This is a biased market skewed more towards buyers. There are many homes for sale out there, however, they have very few people currently looking for a home to buy. Therefore, every investor in the market today needs to use those strategies that are most likely going to succeed in this market. He or she needs to focus more on strategies that are most likely to attract buyers or renters to their properties. Here are the 3 best options.

1. Buying for long-term hold: this involves buying a property with the intention of renting it out for several years prior to selling the property. They real estate investor in the situation looks for homes that have been deeply discounted, buys these homes, and then turns around and rents them out with positive cash flow. Their goal here is to make at least $200 a month after paying all of the expenses, which include the mortgage payment on the home, taxes, insurance and any other expenses related to maintaining the property. The advantage of using this strategy is that the tenants end up paying down the mortgage for the landlord. The home builds equity with time and is eventually owned free and clear by the landlord after several years of renting the property. The key here is to buy the property at a discounted price and rent it out with positive cash flow.

2. Buying for short-term flip: this involves buying a property at a great discount with the intention of selling it right away for a quick profit. The investor here buys the property with at least a 30% equity. He or she then turns around and sells the property to another investor leaving a 10 to 20% equity for the new owner. This is called wholesaling. This strategy used to be very popular a few years ago. It is still being used today but it’s not as popular as before. The key here is to buy the property only after you have already located a buyer. The best way to do this is to build an e-mail list of potential buyers. Another option is to borrow a list from someone else. Here is the step-by-step process: you build an e-mail list or you locate the list owner, now you locate a property with significant equity, you collect details about the property and send out an e-mail to your list, you now close on the deal and then turn around and sell it to the end buyer for a profit.

3. Using the lease purchase as an exit strategy: in this situation, you are buying a property with the intention of renting it out for one or two years prior to selling it. The first step here is to buy a property at a discount. You then locate a buy/renter who signs to agreements: the first is a lease agreement for about two years, the second agreement is an option agreement. The buyer has the option to actually close on the deal within one or two we years. The investor cashes out at the end of the option agreement. The advantage of using this strategy is that you get very good tenants who actually take care of the property while paying a higher than usual rent. Thus you get positive cash flow and you serve the property at a huge profit within one to two years. This is one of the best options in the current market conditions.
About the Author
Eric Mabo is a Real Estate Consultant , who specializes in locating discounted foreclosures.

The 5 Worst Stock Investment Strategies

Most investors approach the stock market with the wrong frame of mind. But it’s not their fault. They’ve been conditioned to follow investment strategies that simply lead them in the wrong direction towards financial disaster.

So to prevent YOU from making the same mistakes, I’m going to lay out all the horrible investment strategies for you so that you don’t make the same mistakes as everyone else, and start on the correct path to wealth in the market.

You’re Not Going to Get Rich Quick

Nearly all beginning investors, along with a great number of “veterans,” have the mentality that they’re going to strike it rich. Well that’s great, that’s optimistic, but they expect it to happen right away. This is probably the worst investment strategy you can have…because it isn’t an investment strategy!

They’re assuming that they can beat the system and crack the code of the stock market that investors have been struggling to find for years! The tortoise is going to runs laps around the hare in this one, guys. What you need to do is develop an investment strategy that can work for you over the long run.

Don’t Gamble

The majority of investors don’t know when to buy low and sell high. This is one of the basics, but people continue to follow hot “investment strategies” and “trends” to strike it rich. In gambling, it’s not about the big take. Good poker players, for example, make the most with their good hands and lose the least with their bad ones. Here’s an investment strategy: play big, but play smart.

What’s So Great About Your “Insider” Tip?

So many investment strategies are abandoned for the “insider tip” that guarantees millions. But here are some questions to think about…How many people have heard this tip before you? Has the investment strategy been circulating for long? And who did you hear it from? If this insider information was given to you by a friend instead of a listed company director, you’re not going to have that great of an edge. If this hot and quick investment strategy has been around for a while…it’s not going to be very quick any more and has probably lost its magic.

The Suicidal “Set and Forget” Investment Strategy

Holding onto your stocks for extended periods of time is just going to bring trouble. Stashing stocks away so that they can grow and mature into some rewarding fund later in life is NOT going to bring profit. There are too many things that can go wrong, with the company or the actual market, to create beneficial odds for yourself by using this old investment strategy.

Do You Really Know When to Buy or Sell?

Not knowing what to do, being unsure of yourself, and investing blindly will kick you out of the market before you know what hit you. This is an information age. There are investment strategies, techniques, and dozens of ways to analyze EVERYTHING. Use them. Study up. Don’t just sit there with your eyes closed making the best guess you can come up with. Create an investment strategy that works for you. Stay on top of your game and more importantly…your money.
About the Author
Joe Harris provides all the proven stock market investing tools you need to succeed today, including investments in the gold market. For details visit his site: http://www.myeinevstor.com

Stock Trading Investment Strategies

There are as many stock trading investment strategies as there are stock traders. Each stock trader finds trading concepts that they believe are important to trading stocks, and traders combine these concepts into trading systems. Each stock trader sets their own personal strategies and finds what works for them.

Strategies for investing in stocks and trading these stocks will depend on how conservative an individual stock trader is. The venue that stocks are traded in will also affect trading strategies. Swing trading is one type of stock trading investment strategy. This stock trading investment strategy depends on swings in the stock market. Swing traders take advantage of the up and down swings of the market. Swing traders have to control their emotions, and they look for certain signs or signals to let them know the time is right to step into the trade. This stock trading investment strategy does not work well for some traders, because identifying the proper signals can be very confusing, and a lot of traders let emotions interfere with thier stock trading decisions.

Day trading is another strategy for trading in the stock market. Day traders use a strategy that involves buying and selling stocks that are held for a short period of time only. Day traders use a strategy that makes a quick profit off of small gains and losses during the day. Day trading is considered a very high risk investment strategy, and day traders do not really invest. Their position is only held for hours at the longest, and this type of trading can be successful because of the volatility of stock prices on the stock market. The biggest strategy used in day trading is to watch the market every second and then buy and sell when the market is right. This type of stock trading is extremely risky, and it is recommended that only experienced traders even attempt day trading.

Finding a stock trading investment strategy that works for you should involve researching the stock market and stock trading. Identify trading concepts that you believe work for the market, and use these concepts to build your own trading systems and strategy. Every stock trader has their own concepts, strategies, and systems that they believe are successful. A strategy that is successful for one trader may not work for another trader. Traders build their strategies through learning and trial and error. Finding out everything you can about the stock market, how it works, and what successful traders do will help you to define your own stock trading investment strategies that are effective for you as a stock trader.

Copyright © 2007 Joel Teo. All rights reserved.
About the Author
Joel Teo writes on various financial topics including Las Vegas Real Estate . Learn about Las Vegas Real Estate Investment at http://www.RealEstateInvestment101.info

Investment Strategies For Real Estate

Approximately one fourth of all homes sold in 2006 have been purchased as an investment. Returns are almost guaranteed because property values are always on the rise due to a growing world population. There are more ways than ever before to profit from real estate investment.

1. Flipping

In the industry, flipping is a term used to describe the act of buying, fixing up, and then reselling a piece of property. To flip a property in short term investment usually requires a large investment of capital, whereas long term flipping relies on less fixing up and more on the value of the area appreciating over time.

2. Offsetting Costs

Many costs associated with renting the property can be offset even while the home is being renovated. After the renovation is complete but before it is sold, you can rent the property out to new tenants. Of course, if you do that, you are most likely a long term investor. You also have to weigh the hasstles of finding tenants, the damage tenants might cause to your property, upkeeping the property and performing repairs, etc.

3. Snapping Up Forclosed Properties

A great way to make a bigger profit on your real estate flip is to purchase only properties that are forclosing. A forclosure happens when a property owner is no longer able to make payments on a mortgage. These people have likely been evicted from their home and, unable to rent the property, the owner is trying to sell it to recover at least some of their costs. Foreclosed properties tend to be in need of heavy repairs.

4. Investment From Afar

It is also possible to invest in real estate without buying any particular property. Many banks allow people to purchase trusts, bonds, or stocks oriented towards real estate specifically. You will be sure to want to talk to a broker before getting into this kind of real estate investing.
About the Author
For more great real estate related articles and resources check out http://getinvesting.info

Investment Strategies For Bullion

In 2004 a man went onto the internet and offered to trade a paperclip for a house. Of course, no one took him up on it, but they did trade him for something a little larger. This man kept trading up, the trade rarely had much monetary value. Sometimes its only value lay in the fact that it was part of the scheme.

The man now lives in his house in western Canada. The house he traded up from a paperclip.

There are many investment strategies for managing a bullion or precious metals portfolio. It is one of the most secure ways of investing small and building up. And, it is easy to trade.

You can trade bullion for almost anything – at a profit. The desire to own gold is so strong that many people will undervalue their own services or products in an effort to obtain gold bullion.

If only they knew how easy it was to buy on the internet.

The trick is to stick to the large trading houses. While there is a coin, or bullion trading company in every small city, there are different qualities and grades of gold. Even the slightest variation in weight can change a ‘good deal’ to a con.

The important thing to remember is that investing in coins, and investing in bullion are two different things. A coin has a fixed value attached to it. This value increases, or decreases, depending on how many people want to buy that particular coin.

The value has everything to do with the country that ‘minted’ the coin. It has nothing to do with the quality, or quantity, of precious metal in the coin.

Bullion on the other hand has no markings. Its value is 100% dependent on the quantity, and purity of the metal. It is not held by the constraints of the dollar.

However, as the dollar drops, the value of gold increases, because the lower the value of a dollar, the more of it is needed to buy an ounce of gold. This is good news for bullion investors.

Dan diBartolomeo said in 2007: “While the gold price is the single most influential force in determining the behavior of gold mining shares, gold stocks are not nearly as sensitive to gold prices as current financial models suggest they should be.”

“Putting realistic numbers into the formula, the remarkable aspect begins to take shape. Assuming that the price of gold is $400 per ounce and direct mining costs are $300 per ounce. The gross profit is $100 per ounce. Note that the value is linearly related to this gross profit. If the price of gold changed to $500 per ounce (a 25% increase), the gross profit would be $200 per ounce, and the forecast price of the stock would rise 100%.

The percentage change in valuation of the equity position is four times as great as the percentage change in value in the commodity asset.”

The strategy is to purchase gold, at real value, and trade it for commodities which are normally purchased with paper money and currency. This type of trading gives the bullion investor more leverage when making a purchase.

Another way to invest is by buying futures and speculating on the market. At the moment, speculators have gold about $700 (summer 2007), but you can purchase gold coins for $500. Speculating is a gamble, but when dealing with bullion, the ‘losses’ are predictable.

As the world becomes more wealthy. As third world countries enter the manufacturing sectors, and as the standard quality of living increases around the world, bullion will become more valuable.
About the Author
Mark Walters is a third generation investor who guides others to financial independence through the Creating Wealth Club http://www.CreatingWealthClub.com

Effective Investment Strategies

Building your own retirement portfolio can be quite a daunting task. There are many different strategies you can adopt to help your investment dollars grow. The difficulty lies in choosing the strategies that will suit you the most.

Many people believe in investing heavily in property. While residential property investments have been very popular for decades, many investors have not enjoyed strong gains simply due to poor decisions when they bought the properties. Buying property in slow growth areas, gearing too high and poor property management can leave many investors with a very sour experience, not to mention the opportunity loss.

Over the past decade, share trading and investing have become far more popular. Many of the hassles of property investing do not exist with share investments. However, it still comes back to making the right decisions when purchasing, and then managing the investment well. The beauty of shares is that you can quickly, inexpensively and easily exit the investment if it is not performing. Conversely, you can quickly enter an investment if you feel it has strong potential.

As more and more investors become interested in the stock market, many are discovering that there is far more to share investing than just buying shares and leaving them in the bottom drawer. Investors are discovering strategies such as “Writing Covered Calls” and “Spreads, Straddles and Strangles”.

In fact, there are many different strategies which allow share and options traders to reduce their risk and/or increase their reward. Investors must also realize that they can make money in which ever direction the stock market is headed. For example in a bear market, it is possible to short stocks, buy put options or even sell cfds.

One of the most exciting strategies is Writing Covered Calls. To many, these words have little meaning, but to those who know, these words mean everything. Writing covered calls has been hailed as One of the most powerful, yet simplest, forms of wealth creation.

If you already own shares and would be prepared to sell them at a higher price then they are today, then writing covered calls may be for you. In return for the obligation to sell them at a higher price, you will be paid between 2%-6% of the value of the shares.

Now, there are some restrictions and limitations. Not all shares have Exchange Traded Options (ETO) available, and hence, not all shares will allow you to write covered calls. In fact, only 64 company shares have ETO’s. The Australian market can be fairly illiquid for all but the largest companies, but once you understand the strategy, you can use it on the American markets, as that market offers the same opportunities. The only difference is that there are thousands of ETO’s available.

Platinum Pursuits hosts investment seminars most weeks, as well as 3 day training workshops, where a variety of investment strategies are taught. Various Australian experts are invited to teach topics such as Option trading, writing Covered Calls, Self-Managed Super, Tax planning and effective international share investment. Be sure to secure your place at one of our upcoming seminars!
About the Author
Daniel Kertcher is a licensed stock market educator. Daniel has trained many people from North America, Australia and Europe in various trading systems. Join his trading mail list http://www.platinumpursuits.com and read more about him at his personal website http://www.danielkertcher.com or http://www.danielkertcherlive.com