Today's investment markets offer investors a wide variety of options. One of the most rewarding opportunities is real estate investing, which can produce a very good income stream. If you choose to become a real estate investor, you will enjoy several benefits not associated with other types of investment.

First of all, investing in real estate has the enormous benefit of financial leverage.  Even if you borrow the money for your real estate investing from a bank you can often get into a deal with a 10% down payment which means your returns are instantly magnified due to the fact that you are earning on the bank's 90% contribution as well.  As an example, let's assume you have $10,000 to invest and you get 10% return on your investment regardless of the vehicle.  If you put it into the stock market you will buy $10,000 worth of shares and after 12 months your investment is worth $11,000.  If you put that same money into real estate with a 90% loan you earn 10% on the full $100,000 investment and finish with $110,000.

Full article… Real Estate Investing Vs. The Stock Market

Popularity: 6% [?]

Technorati Tags: 1031 exchange, depreciation, financial leverage, investing in real estate, investment markets, real estate investing, real estate investment, real estate investor, stock market, tax benefit, tax breaks

I know of some people who have become totally caught up in the euphoria of newfound knowledge and just couldn’t stop buying audio programs and attending very expensive seminars and bootcamps.  This seminar junkie must have spent at least $50,000 within a 12 month period and still hadn’t bought their first investment property.  They were just bouncing around from one great idea to the next.

I don’t know whether, in their case, it was because they were just caught up in the excitement of that environment, whether it was their way of convincing themselves they were active when they may have been too scared to get started, or they were honestly trying to find the best strategy for them.  I’m guessing it was a mix of these things.

Full article… Don't Become A Seminar Junkie: Experience Is The Best Teacher

Popularity: 5% [?]

Technorati Tags: beginning real estate investing, deal analysis, education in real estate investing, getting started in real estate investing, real estate investing beginner, risk management, risk reduction

Education is paramount to success in any endeavor but when we are speaking of investing it is most important to consider its impact on risk.

Investing is widely regarded as a risky pursuit by amateurs and those who are uneducated in the field. To professional investors, a person’s education or knowledge of an investment is by far the single greatest determinant of risk. A well-educated investor can always walk away from a ‘risky’ deal.

A lack of knowledge sees so-called investors get into difficulty time and time again. Whether it’s the first time investor who just bought a house in a bad location that is losing money or the guy who thinks he’s smart because he has a nice paper profit after some blind luck in a stock market boom. Chances are that if they don’t know what they are doing they are headed down a bumpy road.

Full article… Education in Real Estate Investing: the best risk mitigator

Popularity: 5% [?]

Technorati Tags: amateur investor, educated investor, education in real estate investing, first time investor, getting started in real estate investing, professional investors, risk management, risk reduction

I found this video today and strongly recommend you sit through it. At 55 minutes it is long but I was so impressed with the common sense that Warren Buffett displays on this issue.

Like most of us, I have listened to many different opinions on the topic and in this interview Warren made more sense than anyone else I've heard discuss the crisis.

As expected from a professional investor of his stature he is not in a state of panic or even worry over the state of the economy even though he has never seen things this "bad" in his lifetime. Instead he is busy acquiring bargain investments in readiness for the next phase of growth. He continues to operate on the basis of:

"You want to be greedy when others are fearful and you want to be fearful when others are greedy."

He uses an analogy of the economy being a star athlete in need of emergency medical treatment which brings a lot of clarity to the issue. Not only about what needs doing but about the futility of playing the blame game. He is pragmatic, compassionate, decisive and easy to understand.

Just watch it!

If you liked this video please Digg it or Stumble it below.

Popularity: 9% [?]

Technorati Tags: charlie rose, financial crisis, warren buffett

Here's a question that a reader posted the other day followed by my response.  After reading their question, try to come up with your own thoughts before reading my response and determine how you would have handled this situation.

Dear Scott,
There is a property that I am really interested in. I would like to take action to put it under contract. This will be my first deal.
How do you go about purchasing Multiple Properties?
example: This is a 5 House Package ( 5 Houses can be purchased for $8K)If I buy them all,I can get a bonus of a $245,000 uptown condo for $204,000. These condos are still under construction and the option was bought for $10,000. The five house package buyer gets this $51,000 value equity pack for free! Also, this is a "wholesale/assignment" deal that requires all cash. I would be dealing with another investor.

Full article… Deal or No Deal?

Popularity: 15% [?]

Technorati Tags: deal evaluation, financial analysis

In this very quick wrap-up video of the Billionaire Inside, Donald Trump shares his most important rule to live by:

Above all else, never ever quit.

He says there are many important tips for success such as "love what you do", "know what you're doing", but the number one thing is to never quit.

For more information about this program visit billionaireinside.cnbc.com

Popularity: 14% [?]

Technorati Tags: donald trump, real estate video, success tips

In part 5 of the Billionaire Inside, Donald Trump talks about how your business and personal lives overlap and how to get balance between the two. 

 Part 5 Summary:

•  business begins with an idea but you must be able to implement
• only you can know when the right time is to leave your job in order to build your own business and it's a tough decision to make
• it's very hard to have balance in your personal life when you love your business
• if your spouse is not understanding of what you're doing it's not going to work
• too much of a distinct personality / look can be a liability but you've got to be yourself
• the biggest mistake he's made in business was losing focus
• his idea of a vacation is a working vacation
• you can position your business at either end of the spectrum and still succeed
• on branding: you have to get the word out
• you may need to be more creative with advertising when starting out on a small budget
• prenuptial agreements are sad, ugly instruments but you have to protect yourself from the downside

I'll have the final installment of the Billionaire Inside for you tomorrow.

Popularity: 14% [?]

Technorati Tags: donald trump, real estate video, success tips

Alright, here is part 4 of our six part video series with Donald Trump.  Today's clip concludes the discussion on real estate investing from yesterday.  Enjoy.

 Part 4 Summary:

• there's so much going on in Dubai it's hard to resist
• the US better get smart or it will get left behind
• there's great opportunities outside the US
• China and India are probably the most exciting markets right now
• real estate is largely a local business so make sure you have great partners when investing away from home
• now is definitely the time to go out and pick up some residential properties at a big fat discount but you will probably want to rent them out and hold them for a while
• it's easier to rent out in a down market
• the worst of the real estate recession is close to being behind us

Feel free to leave a comment below.  And we'll continue with part 5 tomorrow.

Popularity: 14% [?]

Technorati Tags: donald trump, real estate video, success tips

Today's excerpt of the Billionaire Inside is pretty short and unfortunately the audio drops out for a moment at one point.  However it gives you an insight into Donald Trump's opinions about the state of the real estate market and what that means for investors.  So here it is along with the summary below.

 Part 3 Summary:

• now is THE time to get into real estate
• there is less interest in real estate now when there should be more than ever
• it is not a time to sell though – so don't be thinking that it's a bad time because you can't find buyers
• to get into commercial real estate learn from a good commercial firm
• commercial is more of a people business – you need contacts

Okay, that's all for part 3 but we have three more parts of this program to review this week so stay tuned.

Popularity: 12% [?]

Technorati Tags: donald trump, real estate video, success tips

Here is part 2 of our 6-part video series with Donald Trump for this week.  The summary is below and part 3 tomorrow is where he talks most about real estate so stay posted.

Part 2 Summary:

• face-to-face is often the only way to do business
• he has been lucky in building his brand but you still have to know what you're doing
• education isn't a must but it gives you a big advantage
• on luck he quoted golfer Gary Player: "The harder I work, the luckier I get."
• keep great people around you and keep them motivated but stay smarter than them
• persistence is a state of mind

Popularity: 9% [?]

Technorati Tags: donald trump, real estate video, success tips

Whether you love him or hate him it would be rather silly to imagine you can't learn a thing or two from Donald Trump about success and real estate.  But, to be honest, I hadn't paid much attention to his information myself because I just didn't imagine there was much relevance for the average RE investor who invests in single family homes.  However, I've started reading a book called "Trump Strategies for Real Estate: Billionaire Lessons for the Small Investor" by George Ross and have been surprised how much relevant information there is. And due to that fact, I went hunting for some videos of Donald sharing some tips for success.

Low and behold, I found a 6-part series on YouTube which is actually from a special episode of the Millionaire Inside that premiered in October 2007.  The special was named the Billionaire Inside for obvious reasons and I thought I'd share each of the 6 parts with you over the coming week.  Keep an eye out for the third part in particular where he talks about real estate, the credit crisis, and what that means for investors.

Full article… Donald Trump Video: Success Tips and Insights Pt.1

Popularity: 7% [?]

Technorati Tags: donald trump, real estate video, success tips

Soon after I wrote my post about 101 Real Estate Investing Resources a few weeks ago I found a few more sites that I need to share with you.  There's actually more than 101 sites involved here but a few of them were already mentioned in my previous list so it's near enough to 101.

First up is this extensive list of real estate web 2.0 sites from 1000watt Consulting.  I suggest you work your way through this lengthy list.  There's some great community sites for networking and learning, as well as market research and property search tools among other things.

I also wanted to let you know about a great new blog for real estate investors, REItips.com by JP Moses.  I find it very interesting that since the real estate bubble burst not only have we seen many amateur investors leave the market but we have also seen many real estate investing blogs and other websites fade away.  JP has been active with FlippingHomes.com for some time now and is a very knowledgable, professional investor and the emergence of his blog at this time shows that he is not just some amateur riding a bull market.  I expect this site to become a mainstay of the real estate investing space and have no hesitation in recommending you add it to your feed reader.

Full article… Another 101 Real Estate Resources

Popularity: 4% [?]

Technorati Tags: real estate investing resources, real estate investing tools

As a follow up to my previous post about whether now is a good time to invest, I just found this Rich Dad video on YouTube which is very helpful.  I wish I had found this earlier in the year given it is about predictions for 2008 but it is still very pertinent to this discussion since the major trend at the start of the year is still very much in force – the housing and mortgage crisis.

The views expressed by Robert and his advisers should really provide some clarity for people who are trying to determine what action they should take given the current state of real estate markets.

Well, I hope that has shed some light on the current state of the markets and will help you make more confident decisions regarding your investing activities.  Don't forget to submit your questions and comments below.

Popularity: 7% [?]

Technorati Tags: housing crisis, ken mcelroy, mortgage crisis, rich dad poor dad, robert kiyosaki

Here's a collection of posts from the blogosphere recently that look at the housing / mortgage crisis and whether it represents a good time to invest. I recognize that this crisis represents a lot of heartache and pain for many people and do not wish to make light of that, however as investors we must consider whether now is a good time to buy.

Will We Know When The Market Turns?
If you think that the market is going stay where it is you will have no trouble finding the data to support that prediction. What usually happens in any market, stock, bond, commodities, etc., is that the markets turn without very many …

California Housing: Buy One Home, Get One Free! Really!
Posted By:Diana Olick. If you buy one of Michael Crews Development’s luxury homes, priced at around $1.6m, you get a 2000 square-foot cityscape row-home worth $400000 for free. The luxury home is in San Pasqual Valley, the row-home in …

Full article… Housing Crisis: Is Now the Right Time to Invest in Real Estate?

Popularity: 11% [?]

Technorati Tags: foreclosure crisis, foreclosures, housing crisis

This week we’ve put together a fairly comprehensive list of resources for you to check out. You can start using many of these immediately as they are free of charge. As for the others, you should weigh up whether you need them for the stage you are at with your business.

We have first-hand experience with many of these sites but not all of them so any feedback or reviews are welcome in the comments section below.

Training

With so many products on the market today I could probably have done a list of 101 training resources.  However, in creating this list I was reminded that there are quite a few “pretenders” out there in the real estate investing world and have tried to keep this list concise with only reputable resources, some of which are free.

General

1. RichDad.com: Rich Dad Poor Dad is the book that woke me up to the fact that I needed to take greater responsibility for my financial future.  A short time later I purchased my first investment property.  Robert Kiyosaki still delivers fantastic information and is the obvious choice to kick start this list.

2. RealEstateInvestor.com: This is a community of real estate investors that has been building a lot of momentum recently.  With an education center, networking and member blogs, there is plenty of great free information here.

3. REIAllstars.net is a new membership site that is building a portfolio of video training materials to help new investors fast track the learning process.

4. CREonline.com is the elder statesman of the real estate investing community online.  It has been around since 1995 and as such has a rich offering of great articles.

5. REIclub.com hasn’t been around quite as long but is the other big site in terms of the volume of articles and free content that they offer at this time.

6. BiggerPockets.com is a community site which is constantly evolving.  It currently has a popular blog, forums, articles, an analysis tool and many other useful resources.

7. CashFlowInstitute.com: Mark Walters offers a series of free videos about numerous real estate investing techniques.  Well worth a look.

8. RealEstateInvestors.tv offers hundreds of real estate investment educational videos for less than $40 per month.  They also have a 7-day free trial.

Full article… 101 Real Estate Investing Resources: A Professional Investor's Rolodex

Popularity: 26% [?]

Technorati Tags: real estate investing resources, real estate investing tools

Rather than just give you my analysis spreadsheets, my objective with this article is to show you how to develop your own.  It is critical that you learn how to do so if you are to succeed at real estate and I want to encourage you to begin "playing" with Excel as soon as possible.  This will be far more beneficial to you than giving a cursory glance to someone else's work because it is easy enough to understand.  Consider this a case of teaching you how to fish and feeding you for a lifetime rather than giving you a fish and feeding you for a day.

You see, chances are my spreadsheets would not even be suitable for you because I am likely using a different investment methodology.  Even if we are both using a similar technique there could be small differences based on our respective financing or some other aspect that means it doesn't quite fit.

But more important than any of that is this:

I have found that the greatest benefit of developing your own analysis spreadsheet is that you become intimately familiar with the numbers.  By the time you've developed it and used it a few times you understand the numbers inside out and upside down and have a thorough understanding of what numbers are most important and what effect certain adjustments will have.

Full article… Financial Analysis of the Deal: A Real Estate Investor's Most Important Skill?

Popularity: 15% [?]

Technorati Tags: deal analysis, deal evaluation, financial analysis, investing in real estate, real estate investing, risk management, risk reduction

The Whole Truth About Real Estate Investing

I know you probably came here looking for a bunch of secret tips and methods that the real estate experts use to make "the big money" in real estate.  Well, while I can and will give you a bunch of good tips, the truth is that none of them are great secrets known only to the wealthy.  I've revealed a bunch of things for you to look out for in the report "7 Traps of Real Estate Investing" but in my opinion, there is one secret that trumps all the rest and needs to be exposed.

The dirty little secret of the real estate investing world is that trainers around the country are selling their courses to people, quite comfortable in the knowledge that less than 5% of them will actually do anything with the information.  In other words, 95% of people will never do a deal and will never even recover the cost of that course, let alone become a successful investor.

Full article… Real Estate Investing's Dirty Little Secret

Popularity: 17% [?]

Technorati Tags: becoming a real estate investor, education in real estate investing, getting started in real estate investing, investing in real estate, real estate investing, real estate investing courses, real estate investing guide, real estate investing information, real estate investing tips, real estate investment, real estate investor

Just a quick post today.  I thought I'd pass on some other resources out there in the real estate blogosphere that are quite popular.  Each blog has it's own style so you will likely relate better to some of these than to others – I know I have my favorites.  But anyway, here they are:

• www.biggerpockets.com/renewsblog/
• blog.flippinghomes.com/
• www.mentorfinancialgroup.com/blog/
• www.realestateradiousa.com/blog/
• www.realestateweblog.org/
• getrealrei.com/blog/
• www.thereibrain.com/realestate-blog/
• www.equityscout.com/
• www.successrei.com/
• realestatevideo.wellcomemat.com/

Popularity: 3% [?]

Technorati Tags: real estate blog, real estate information

The most common questions I get from would-be investors time and time again are about how to get started in real estate investing, or some derivative of that question.

Then a reader named Telly recently asked about how I got started.  Specifically, Telly asked:
"I am curious about your first time buying a home. Was it easy? Were you nervous? And how did you do it?"

Two things struck me about Telly's query:

1. First of all, it suddenly dawned on me that telling my story might be a more useful way to help people get started rather than giving them more theory about techniques they can use.

2. Secondly, I think the questions "Was it easy?" and "Were you nervous?" highlight that the thing stopping most of us from getting started are more emotional obstacles rather than knowledge obstacles.  We tend to convince ourselves we need more and more information before we can get started.  In some cases this is right but the reality is that someone who has made the decision and mental commitment to do their first deal will find the information they require as they go.  It's a given.

Full article… Getting Started In Real Estate Investing

Popularity: 4% [?]

Technorati Tags: getting started in real estate investing, investing in real estate, real estate investing