Commercial Real Estate Investment Articles

The real estate contract is the most often used, yet little understood tool in the real estate business. Whether you are a rank beginner or seasoned expert, there is no excuse for not knowing and understanding real estate contracts.

The so-called day after “hangover” from the fast and loose lending spree that helped fuel the real estate boom during the first half of this decade keeps getting worse, with a continued fall out among lenders who catered to high-risk (or “subprime”) borrowers. Several dozen lenders have closed their doors because the Wall Street firms who have provided their funding will no longer do so.

As I write this in the spring of 2007, the real estate market is in the throes of yet another of its recurrent downward cycles. Consequently, a frequent question we get these days is: “How is the latest meltdown in the subprime lending industry affecting the purchase of owner-financed paper?”

We’ve all done it. Anyone who invests in real estate is bound to make a clunker deal sooner or later. I’ve been in this business for over 25 years and have made plenty of mistakes, and I am always reminded that experience is what you get right after you needed it.

So you’ve just purchased a new home study course. You followed the instructions. You found a good deal. You present your contract to the listing broker, and you get laughed at!

In my previous article, Top 5 Mistakes of Beginning Commercial Real Estate Investors, we discussed 5 of the 10 most common mistakes investors make in commercial real estate.

For years, hot-shot speculators made huge profits flipping condos in Florida and Vegas before they were even constructed. All the while, the naysayers in the ivory towers of Wall Street and academia warned of a “housing bubble” that was sure to burst as all bubbles do.

How to invest in real estate? Don’t. You heard me right. I don’t invest in real estate and neither should you. Forget about being a real estate investor, and you’ll be well on your way, financially, to wherever it is you’re trying to get.

Curb appeal is one of the most important aspects of any real estate transaction. For me, it is the curb appeal that defines everything about my deal. How much will I offer? How much will it take to rehab the property? How does it compare to the surrounding living conditions?

More Americans are falling behind on their mortgage payments at a record pace as stagnant home prices and a convergence of weakening economic factors have taken a toll on housing affordability, according to the quarterly survey just released by the Mortgage Bankers Association (MBA).

For real estate agents, business brokers, and mobile home dealers and brokers, seller-carryback financing can make the difference between a “sold” or an “expired” listing. This is particularly so in certain economic cycles, like the one we are entering NOW! A majority of listings expire, UNSOLD, especially single family residential (SFR) properties.

I often hear people say they can’t get started investing in mobile homes because either they don’t have any money, or they have very little money. Just this week, Eric, a young man in our local real estate club, said he only had $5,000 and wanted to know how he could get started with such a small amount. I told him that the amount doesn’t matter; what matters is that he get started. And NOW!

“Flipping” is the buzzword of the year in real estate: Flipping books, flipping articles in the newspaper, and even flipping shows on TV! What is flipping, how does it work, and how you can profit?

The question of the day for commercial real estate investors is: What is the effect of a slowing economy and possible recession on valuations? The run-up in values for some sectors has raised alarms, and opinions range from “no more than a ripple” to “impending doom.” For investors, there is much to consider in plotting our course.

Is it too late for real estate? I’ve been investing in real estate for twenty-four years, and I’ve seen the ups and downs of the real estate market. I’ve made some bad investments, but most of them have turned out great–as long as I was prepared to stay through the bad times.

In How to Profit in a Slow Economy (Part One), we discussed economic conditions and the outlook for capital availability for real estate investment. Now let’s turn our attention to the effects of those conditions on various commercial property types, and specific strategies that can profit from the current trends.

When I go to speak to real estate clubs, sometimes my reputation precedes me: “Mr. Landlord is the guy who talks about adding extras and upgrades to your properties for more cash flow.” After speaking for nearly 20 years and publishing the Mr. Landlord newsletter for 22 years, I’ve played a big part in revolutionizing the way thousands of rental owners market their rental homes.

There are two common questions that involve Realtors and investors: Should I become a Realtor? How can I work with Realtors?

Identity Theft is the fastest growing crime in America today. Would you know what to do if it happened to you?

This last year has been a tough year for real estate investors looking for ways to cash flow their properties. I’ve talked to a lot of business owners or employees who have not yet invested in real estate and wonder if they’ve missed out on the real estate rocket. And, everyone wants to know, “What is the next big thing?” And here is my radical response: I don’t care.

Two of the most popular types of retirement savings plans available today are the Roth IRA and the 401(k) plan. In 2001, Congress married these two types of plans by passing the Economic Growth and Tax Relief Reconciliation Act (EGTRRA), which included a provision allowing 401(k)s (regular and solo/individual) the opportunity to make Roth 401(k) contributions after the 2005 tax year.

Analysis paralysis–one of the biggest blocks of successful real estate investing. That’s when you stumble into a good deal, then stop dead in your tracks. You worry about the decision, and never do anything. In my first six months of investing, I looked at hundreds of great deals and froze.

When the account owner is ready to take distributions, they may do so, tax-free, as long as the account has been open for five years, and they are age 59? or older.

Once you know the date, time, and terms of a tax sale, get a copy of the list and start researching tax lien properties. I realize you may be holding a list with descriptions of hundreds–even thousands of properties. And I know that if you are unfamiliar with real estate it looks like page after page of unintelligible words and numbers.

And now your nerves kick in. Good grief! Gulp. You ain’t ready, friend, and even I can see it in your eyes. That door opens slowly and he pokes his nose through the crack, glaring at you now, “What the heck do you want?” Gulp.