The Real Estate Bubble-When Will it Burst?
March 31, 2009
More and more individuals are realizing that real estate is much safer, and a better return on investment than many traditional investment vehicles. Unlike stocks or bonds, real estate investments can usually be liquidated in order for the investor to access funds in far less time. Additionally, unlike many other investment vehicles, real estate does not come with the stiff penalties associated with early withdrawal. In most cases, investors can liquidate and not have to worry about losing large sums of money. Finally, real estate provides the assurance of a higher yield of return than other types of investment.
On average, real estate appreciates about 4% per year. That means that a property you purchased five years ago, under normal circumstances with no significant wear and tear, would be worth at least 20% more than the amount you paid for it five years ago. Some real estate markets perform significantly better than others at given times and with a mild remodeling or upgrade you could be looking at substantially higher returns on your investment.
Baca Lanjutanya..
Real Estate Agents - What Type of Content Should You Include in Your Newsletter?
March 28, 2009
One of the biggest concerns for Realtors who publish their own email newsletter is determining the type of content that will gain interest from their readership. After all, real estate agents who engage in this endeavor want prospective buyers and sellers to open their newsletter and thus be reminded that the agent is their local real estate expert. Ideally, readers should find the content so interesting that they will even forward the newsletter to their friends or relatives who might be prospective clients as well. This “viral marketing” often leads to a profitable source of income for agents.
An important first step is to determine what is of interest to your readers. Put yourself in their shoes. Here are some questions to ask yourself:
- What real-estate related topics are of interest to my target market? Is it mortgage rates? Property values? Equity loans? Closing costs? The escrow process? How appraisals determine market value? A piece of legislation that could affect property taxes?
- Why types of questions have you and your associates been asked lately? These may indicate an interest in understanding the escrow or loan process, for example, or how a local school bond might affect future property values. Is a major road improvement scheduled to begin soon, and what impact could that have on local residents? Are new zoning laws being considered? Is a new shopping center or theme park planned for the area? Maybe it’s what to do in the event of an earthquake.
- Is there a real estate issue that is costing your clients money? Do you have a solution or suggestion on how to handle this problem? Maybe it’s termite season. Is there a new regional development on the horizon, such as cable Internet? Perhaps your readers would be interested in knowing how to do simple home repairs or where to get assistance.
- Do you have any new business programs or services to introduce to clients? Or, use your newsletter to explain the direct benefits of an existing program.
- Are there any promotional offers (e.g., no closing costs for the next 30 days!) that you wish to communicate to your market?
The Best Entity to Hold Real Estate
March 28, 2009
Possibly THE most frequently asked question of me is “What is the best business entity to use for real-estate investments?” My recommendation to most people is that a limited liability company (an “LLC”) is the best entity for this type of use. Here’s why:
– Excellent liability protection for managers and members
– Flow-through tax treatment on LLC profits and losses
– Ability to transfer properties in and out of an LLC with minimal tax consequences
– Personal Asset Protection through the Charging Order procedure (for Nevada LLCs)
Liability Protection.
An LLC is similar to a C-corporation (”C-corp”) or a Sub-Chapter S corporation (”S-corp”) in that it exists as a separate corporate entity. It provides full liability protection to its officers and directors (called “Managers”) and its shareholders (called “Members”). As either a Manager or a Member, you are liable only for the money you have invested into the LLC and cannot be found personally liable for any debts incurred by the LLC. Consider the risks associated with owning real estate, especially rental properties. Tenant injuries. Trespassers injured while on vacant land. Unauthorized dumping or storing of hazardous waste. All of these could pose a serious risk to your financial well-being if you held the property in your name directly, even with insurance. Owning property in your own name means that in the event you are sued and found guilty, anything your insurance policy does not cover will come out of your own pocket. Putting an LLC entity between you and this personal liability means that your personal assets will stay protected. Baca Lanjutanya..
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