Noah George - Factors to Remember Before Investing in Real Estate

Many investors are moving from stock market to owning rental real estate. Buying rental property is a good way to build wealth. Noah George says once you have decided to buy rental property, your real work begins. Finding a profitable rental property usually takes plenty of time and research work.

Some people buy and sell investment property within the short period for profit. Some buy and let to achieve a rental income and accumulate equity, for long term. Decide how long you would like to keep the rental property before owning it. The longer you keep the property, the more you have to invest in maintenance, repairs and improvements. If you're thinking of buying a rental property for a shorter time horizon, you may lose value of the property if you're buying in an overheated market. For small investors, long term ownership is better.

Careful consideration must be given to location. Decide whether you want to invest in your local area or invest in a hot location which may provide more attractive investment options. Property price must also be considered, with widely varying properties available at all levels of investment. A lender can advise you on how much you can borrow to invest in property, along with any further costs or fees involved. A solicitor can advise you on legal costs, disbursements and stamp duty cost if applicable.

Noah George says there are several ways of finding real estate properties. Some ways are print media, networking, directory assistance and internet. Just browse through print materials like books on real estate business, real estate magazines and newspaper listings under investment properties. By using these materials you can find top companies that provide real estate services. After gathering the prospective companies, list at least three to consider. After finding three best companies, compare their available services and rates to get the best option. Also check their honesty, efficiency and track record. Try to pick a firm that can guide you in expanding the profit making possibilities for your real estate investment.

Take help of family and friends in finding a good service provider. You can get reliable referrals from people whom you trust. Remember to still do cross checking with the referred companies. You can actually ask some of their clients for the kind of services they deliver. That way, you can get real testimonies.

You can ask for directory assistance and ask the operator for the contacts of companies doing real estate investment services. With this method also you have to do your homework on background checking your short listed companies. Last but not the least there are several websites that you might want to check out to get a glimpse of these companies services.

Noah George - Smart Strategies For Real Estate Investment

If you're deterred by the roller coaster rides of the stock market, then real estate is the best place to invest your hard earned money.

But real estate business is not an easy one. It calls upon concrete strategies to realize your goals and turn your business into a lucrative venture. If you're an aspiring real estate entrepreneur, then have a look at the five strategies given below that will help you in having a successful real estate investment.

Buy and Hold strategy

Noah George says Under this strategy, you buy a property and lend it on rent. Hence, this strategy is usually known as rental properties. Buy and hold strategy of real estate investment opens three paths of income for you:

amortization--you lower the amount of debt while paying your mortgage,

appreciation--you increase the value of your property over the years, and tax incentive--as a landlord you'll get a chance to cover up your investment costs within a few years. Even if the rent doesn't break even your entire mortgage payment, it's not disheartening, as you still have a positive cash inflow.

But before entering into a contract with your tenant, you should make yourself aware of your rights and duties to avoid trouble later.

Flipping strategy

Flipping involves buying and selling real estate property without taking its ownership. You sign a contract with the buyer of your property and earn a commission for your services. There are no credit checks or down payments involved in flipping. And the bright side is that you don't need to go for a mortgage, as you're not the actual owner of the property that you are selling.

However, there are two conditions for successful flipping of a real estate property: the property should be able to attract buyers within no time and you shouldn't keep hold of the property for a long time, i.e., not more than 15-20 days. Under this strategy, Noah George give advice to simply buy the real estate property, flip it to a buyer, and collect your money as commission.

The strategy of Rehabs

Here, you buy a ramshackle property at a cheap rate with the expectation that your rehabilitation cost estimates will be highly rewarding at the end. This strategy looks good only on paper. The truth is that such kind of real estate investment involves a high amount of risk and usually end up in loss. This happens because you either fail to find a worn-out property that is cheap enough to give you a profit, or worse--the rehabilitation costs end up being higher than the cost of purchase.

Commercial Real Estate Investment strategy

Commercial real estate doesn't always mean magnificent shopping malls or office complexes. Any building larger than a 4-unit apartment is regarded as a commercial one. The big advantage of commercial real estate investment is that your property value is calculated in terms of the income it generates through rent and not in terms of bidding on residential real estate.

New Construction strategy

This strategy involves selling your new home during its construction phase. Most of the investors find this strategy to be the most affordable and the easiest one. The important thing here is to keep yourself updated with the market trends. However, there's a limit imposed by the construction companies on the number of homes you can buy.

A smart way to make an optimal use of this strategy is to have one or two homes under construction continuously. But this strategy brings profit only in a sellers' market. If you find the local real estate market to be highly fluctuating or to be on the buyers' side, then it's better to avoid this strategy.

Noah George - Why A Real Estate Agent Must Possess Fiduciary Responsibility?

Although, both, the real estate law, of, nearly every state, as well as the Code of Ethics, of most real estate associations, requires an agent, to proceed, with the fiduciary responsibility, to protect, and properly serve the best interests, of his clients. Noah George says However, while this may, seem, obvious, actually, doing so, may, often, be challenging, to, actually, achieve. Where is the, somewhat, fine - line, between, legally, required integrity, and ethics, and protecting your client's trust? Just as an attorney must protect his client, a real estate agent, must focus, within the limitations of the law, to protect, anyone he has been hired, to serve, and represent.

The fine - line, between telling the truth, and owing allegiance to one's clients: The law, demands, a licensed, real estate agent, must avoid making any material mis - statements, while, also, protecting his client's privacy, etc. This means, if one knows, of any significant issue, affecting the house, which might affect the value, and/ or future needs, etc, of any potential buyer, he must disclose those things, but, items, such as the personal reasons, the seller/ client, is selling, must never be disclosed. For example, perhaps a client is having financial challenges, which make him, need, to sell, but, have nothing to do, with the quality, condition, etc, of the house, itself. If that is the case, an agent must never disclose these circumstances, because he owes his allegiance, to his client.

Pricing: In their quest, to acquire real estate listings, Noah George provide, might over - state, their positions, and estimates, of pricing, and recommend, a higher listing price, than might be, in the homeowner's best interest. Since, in the vast majority of cases, the best, possible offers, come in, in the first few weeks, after it's listed, on the market, the best procedure, is generally, to price the house, correctly, from the start. Remember, serving the best interests of your client, is your utmost necessity!

Negotiating: When an agent negotiates, it must be, in your best - interest. Therefore, he must never disclose other offers, or the actual level of interest, unless doing so, is beneficial.

A real estate agent's fiduciary responsibility, is to protect his client's investment, and seek, to obtain, the best possible price, within the limitations of the real estate market, conditions, etc. Homeowners should discuss this, in - depth, before hiring, the best agent, to serve their needs, and interests!

Noah George - Truth about Passive Income Real Estate Investing

Few investments have created as much wealth as real estate. Investment in land and property seems to be the only true constant across the history of investing and wealth building but is truly passive income from real estate investing possible?

Noah George says Passive income is technically an income you receive on a regular basis that involves little effort on your part. You get paid every month, quarter or year but do not participate in management or contribute work in the investment.

Passive real estate investing is one of the hottest topics for investors with no lack of stories by successful real estate investors trying to sell their strategies.

Is Direct Real Estate Investing Passive Income or Not?

When most people talk about direct real estate investing, they usually mean either buying to remodel and resale at a higher price (flipping) or buying to rent for a monthly income. While house flipping can be extremely profitable, there’s nothing passive about the strategy so we’ll stick with real estate rentals for this post.

I know a few investors that simply act as the “money” and do little more than look over reports brought to them by different contractors and managers. Most of them started in the business by doing more of the work but have now grown their portfolio to cash flow enough that they can hire the work out.

This level of passive income real estate investing is in stark contrast to what many people try to do when starting out in the real estate investing business. I’ll go through the process of finding, leasing and managing your own properties below but you’ll quickly find that it can be a part-time job at the very least.

Like a lot of passive income strategies I’ve seen, real estate rentals can fall on a pretty wide range of passive income potential depending on your strategy.

Noah George says the New Opportunity for Real Estate Passive Income in Crowdfunding

I’ll go through the entire process of finding real estate properties, analyzing investments and managing your passive income properties but new laws have been passed that may solve all the problems in passive income real estate.

New laws around crowdfunding have opened the door for websites like Streitwise which allow investors access to real estate projects. Properties are professionally-managed so you don’t have to worry about a 3am call to fix a leaky faucet and management fees are lower than investing in REITs.

With real estate crowdfunding investments, investors can get access to different property types and locations across the country. That’s critical to diversifying your investments for safety and returns have been excellent.

How to get your Passive Income Real Estate Empire off the Ground

There are a lot of moving parts to a passive income real estate business model. Before jumping into your first property, there are a few questions you need to ask yourself.

Do you want to rent commercial or residential properties? I started my professional career as a commercial RE agent before starting residential investing. Buying and renting out commercial space like office, industrial and retail will generally yield a lower return but will also involve far fewer headaches. The drawback to commercial space is that it costs much more to buy one property.

In which socio-economic neighborhoods do you want to buy? I know real estate investors that have done very well buying and renting in lower-income neighborhoods. For me, it was a huge mistake. I fell into the trap of thinking, “I can buy a house for about half the cost as what I would pay in a better neighborhood.Even if I get slightly lower rent, say 70% as much, I’m still making a higher return.”Wrong!The money you lose on tenant turnover, unpaid rent and repairs far outweighs any benefit to buying property at a discount. Now, I always recommend to investors to never buy a house somewhere they wouldn’t want to live. If the business does poorly, you may end up living in one of your homes.