Business and Investing

Friday, April 6, 2007

baby

Fixer-Uppers - An investment or a business?

I get that question a lot.
Usually the question is not as direct, but more of a subtle, "Hey, I want to make a lot of money quickly in the real estate investment business. I've heard that you can do that with fixer-uppers. Can you find one for me where I can make a quick $10-50K"?
The short answer to the question is, "ain't gonna happen". The long answer is, "Well, if you're real handy and have established relationships with contractors who are, in addition to yourself; have a lot of excess time on your hands, are an exceptoinally good business person, or have a partner who is and will take care of all of the extensive bookwork involved; have good to excellent credit and have more than adequate reserves on-hand to fund the carrying costs (while you wait for the property to sell), then you might be a candidate to consider buying a fixer-upper". However, it would really much better if you were a full-time contractor, i.e. a professional flipper. This business is not for the faint at heart and it is definitely not a trivial undertaking. Can it be done, sure. Does it always result in success? No. It probably results in failure more often than success, and here is why.
A dentist spends three to four years in professional training before they are ever unleashed on the public to fix teeth. A doctor can spend six years to eight; a neurosurgeon can spend 8-10 years in training, before they are considered capable to perform standalone in their trade. And, in the flipping business, you can make as much or more money than any of these. Do you think this will just come naturally? I'm sure you don't but many do.
Yet, with housing, we all live in something like a house, and we look at the walls, floors, ceiling, sinks, toilet, electrical outlets, etc. every day, and some of us wake even spend a little time with a hammer and nails, yet just because we have had "exposure" to what looks like a good house does not mean we are qualified to take a sow's ear and turn it into a silk purse. (And, don't believe those informercials! What are doing up watching those any how. Get back to sleep!)
Instead of watching infomercials, or even listening bery long to me, I highly recommend the book by Bill Bronchick - Flipping Properties - before you consider "investing" in your first flip house. (That's flip house, not flop).
Here is a link http://www.amazon.com/Flipping-Properties-Generate-Instant-Profits/dp/0793144914 and another http://www.abebooks.com/servlet/SearchResults?sts=t&an=bronchick&y=6&x=10
If, after you've read one of these and you're still interested in finding a fixer-upper in Des Moines, or surrounding suburbs, give me a call. I'm not opposed to working with the legally insane as your bird dog, representing you as your buyer's agent.
We'll need to establish a few ground rules first, so that we don't waste each other's time, but if we can get beyond those, then we can have some fun in the hunt. All I'll expect in return is the listing on the other side, should you choose to employ a Realtor (and, if you're a flipper and you don't employ a Realtor, you won't be a flipper for long -- I guarantee it!).
If that sounds fair, you've read at least one of these books, and you're still interested in a hunt, then email me. We'll meet and then make a decision whether there is a basis for further discussion. Finding a needle in the hay stack can be tough, and a good flip candidate is a needle in a hay stack, but they are out there.
Oh, did I happen to mention that flipping houses is a business, not an investment? I hope after all of that I did manage to convey that message. Party on, flipper ...

by Andrew Lietzow, MBA - Iowa Realty

Thursday, April 5, 2007

Retirement Investing. Use Your IRA or 401K To Invest In Condotel rental income properties

PLC International Marketing Networks continues to reward investors with exciting offshore investment opportunities in the Philippines by introducing the Self-Directed IRA/401K:
Beth Collingz, PLC Global Marketing Director for Pacific Concord Properties Inc’s Lancaster Brand of Condotels in the Phillipines recently announced that US investors can use their IRA to invest in Real Estate, collect rents and watch their investments grow tax-free or tax-deferred.
Historically, real estate has provided many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs.
Very few Americans realize that they have the option to self direct their IRAs and other retirement plans into real estate. Most investors believe that their only IRA investment options are bank CDs or the stock market and mutual funds, not real estate. If you currently are a successful real estate investor, or are just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
Why Haven’t I Heard of the Real Estate IRA Before?
Most IRA custodians do not offer truly self directed IRAs/real estate IRAs. They will only allow you to invest in their approved list of investment options, not real estate. IRA investing at a bank will probably be limited to CDs; at a brokerage firm, to stocks, bonds and mutual funds.
In addition, pre-construction condos, such as the Lancaster Suites Atrium Condotels in the Philippines, are reported to be one of the most hassle-free, profitable real estate investments to use!
With stocks and mutual funds constantly fluctuating in value and the risk of loosing all your money, real estate is still the only investment with true value.
The tremendous advantages a real estate IRA and other self directed retirement plans offer Americans include the following:
• The power of compound interest• Reduction of taxable income• Asset protection• Estate planning
For further info please do not hesitate to contact us:
Beth CollingzPLC International Marketing NetworksPacific Concord Properties Inc., Manila Head OfficeShaw Boulevard, Mandaluyong City. Metro Manila. PhilippinesPhone: Manila [632] 717 1958Fax: Manila [632] 718 1828
Pacific Concord Properties Inc., Cebu OfficeLapu-Lapu City, Mactan. Cebu. PhilippinesPhone: Cebu [6332] 340 0721Fax: [6332] 495 4938EMail: plcsales@pldtdsl.netWeb: http://www.lancastersuites.com [Lancaster Condotels]