http://www.REIClub.com – How to Analyze Your Flip Property – Consider These Points When Evaluating Your Potential Wholesale Property…

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on a checklist that every investor should follow before purchasing real estate.

It is very common for new real estate investors to jump into real estate without a plan, or without performing diligent property analysis. Unfortunately, these are the same types of investors that jump right back out in a few months when they lose money on their first deal. Let’s not have that happen for you.

The very first thing you need when you analyze real estate are

- Comps
– need good comps – several very similar props close by, within 1 mile
– beds/baths/parking/square footage/construction similar
– MLS access preferred – or ask agents, appraisers, online services
– what have buyers paid, what your buyers will pay

- Repairs
– need multiple estimates – can vary by quite a bit – mom and pop vs. professionals
– Other Costs
– landscaping – grass, flower bed, trees, bushes, etc…
– holding (monthly) – mortgage, property insurance, property tax, utilities, etc.

- Neighborhood
– owners vs renters – affects your end user, and value of your home
– school quality -
– amenities – pool, tennis courts, rec center, etc…
– proximity – downtown, transit

- Competition
– Other props for sale – what are their updates, newness, location
– popular area or not – how many other properties are being sold in the area
– days on market

- Determining Offer Amount
– After Repaired Value Less Buyer Discount Less Repairs Less Other Costs Less Profit
– need to come up with valuations based on buyer’s criteria
– first offer needs to have negotiation room for your profit

In summary, there are many varying factors in Real Estate Investing, my advice to you, first determine if your end user will be a tenant or owner. This will affect your deal evaluations and how much you spend on repair costs. There will also be some deals that may work for some of your buyers and not others, but the key is to adapt to the market. Don’t pigeon hole yourself into a bad deal. Remember, make enough offers and you’ll get some deals that fit your criteria.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:5:38

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Investors Workshops http://www.investorsworkshops.com

In this video, Shawn Watkins discusses why Real Estate Investing is better than investing in golds.

Investors Workshops is an investment club for real estate investors of any level. We feature speakers that do not pitch products.

Do you like to learn in an environment with like minded people? If you’re like me the answer is a resounding ‘yes!’. I have created Investors Workshops to allow real estate investors the chance to learn with other creative people. Each month, we will present a speaker covering a different topic relating to Real Estate Investment and the creation of wealth through real estate.

We meet the last Wednesday of each month from 7pm to 9pm, at the DoubleTree Hotel at 100 City Drive South, Orange, CA. The cost of the meeting is $25 per person ($35 per couple).

We welcome real estate investors of all experience levels. Whether you’re new to real estate or looking for a great networking resource, I think you owe it to yourself to check out a meeting.

Duration : 0:5:29

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http://www.reit.com Heitman Managing Director Tim Pire said the best real estate investment opportunities in Europe can currently be found in central London and Germany and its surrounding region. Pire spoke with REIT.com at the European Public Real Estate Association’s annual conference in London in early September.

“Those real estate markets have been strong and the underlying economies have been stronger than other markets,” Pire said.

On the flip side, Pire said there are many countries in the periphery of Europe that are struggling, including Portugal, Ireland, Italy, Greece and Spain.

“They are really struggling with what is going on with their economies and how that is having negative impacts in terms of employment, real estate values and real estate fundamentals,” Pire said. “There will be limited opportunities in these markets until the situation starts to stabilize.”

Pire said as a whole the expansion of the REIT approach to Real Estate Investment across Europe has had a positive impact, although not as much of an impact as he would like.

“I wish the REIT market would have grown more than it has because I think it is a great vehicle in terms of giving individual and institutional investors a chance to invest in liquid real estate across a number of different markets they might not otherwise have exposure to,” Pire said. “Through REITs, investors can diversify by property type, geographic region and relative to different strategies.”

Pire said there are several positive reasons the REIT market in Europe should start to grow more rapidly. First, he said REITs did fairly well during the financial crisis and have recovered fairly quickly. Second, there has been new legislation passed in areas like Italy and discussions underway in other markets to either create new REITs or enhance existing legislation, Pire said.

Looking at the U.S. REIT market, Pire said the summer sell-off put REIT shares at a discount to net asset values. While the continued economic weakness has slowed improvements in real estate fundamentals, Pire said the strong capital flows should support pricing.

“I look at the fact that we have had a move in the capital markets. Real estate fundamentals haven’t moved that much. So NAVs have probably moved a little bit, but not as much as stock prices,” Pire said. “It has created a good entry point to get into the sector if you have a longer-term view.”

By Matt Bechard

Duration : 0:3:27

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http://www.REIClub.com – Are Tax Sales a Good Investment For Real Estate Investors? Here Is A Quick Video On The Pros And Cons Of Investing in a Tax Sale

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got quick video on the Pros and Cons of Investing in Tax Sale Properties.

Tax Sale vs. Tax Lien

- Tax Lien:
A lien in general is a claim or security of interest placed on personal property to secure the repayment of debt. Therefore, a tax lien is a lien imposed by Federal or state law to secure payment of back taxes.

As the investor: You buy the rights to the money owed in taxes and the interest and penalties that have accrued.

- Tax Sale: (also known as a a ‘Tax Deed Sale’)
Refers to property, in this case real estate, being sold by a taxing authority or the court to recover delinquent taxes. This is commonly done by Auction.

As the investor: You are buying the rights to the property itself.

- Return on Investment

Tax Lien: Allow you to earn high interest rates on your investment
– When delinquent property owner “redeems” the lien you get your initial investment PLUS a guaranteed percentage interest. The interests vary by state.
– Average 12-24% interest per annum – as high as 50%

Tax Sale: Deed sales transfer full property rights to your name.
– Average Purchase Price 30-60 cents on the dollar
– Tax Value = Purchase Price

- Right of Redemption: Gives the right to the original homeowner to reclaim their property during a specified time. If they are unable to pay it, the current lien holder can start foreclosure proceedings

Tax Lien: 1 year to 3 years – redemption period
– Delinquent pays the lien plus interest and any other fees (accrues monthly)

Tax Sale:
– Delinquent pays back interest plus the costs incurred to foreclose

Tax Liens / Tax Sales Pros

- Pennies on the Dollar – Buy properties for a fraction of the cost
- State Authorized Returns – awarded to the investor at 16% – 25%
- Volume – auctions are typically held at the first of EVERY month – VARIES BY REGION
- First In Line – Tax liens have precedence over other liens or encumbrances, such as mortgages, judgments, trust deeds and different liens
- County collects the fees owed – not you
- No Maintenance Responsibility
- No Landowner Liability
- Free and Clear – possibility
- Guaranteed Return on Investment

Tax Sale /Lien Certificate Cons

- Specific Regulations – Failure to comply precisely with these rules could make the lien completely worthless.
- Homeowner Bankruptcy – IRS or other creditors may have other claims on the property, rendering your tax lien worthless.
- Worthless Property – you invest in a tax sale with no potential – uninhabitable, structurally unsound, previous owner tried to sell it and stayed on the market for a long time, etc…
- Additional Liens – must pay off all previous liens before you can clear the title
- Competition – public auction – lots of other interested investors
- Lien Laws – vary from state-to-state – strategies may not work in some states

Tax lien investing is a significant opportunity which also requires some specialized knowledge. Always remember, when investing in tax sales or tax lien certificates, almost all risks can be averted by doing minimal analysis before purchasing. Due diligence is the key to success in this niche of Real Estate Investing.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you’ll be automatically notified when we upload more quick video tips for you. Take care and good investing.

Duration : 0:6:12

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http://www.reit.com The Otto family are well-known in Europe as leading commercial real estate investors, and the family made noise in the U.S. when they invested in U.S. REIT Developers Diversified Realty Trust (NYSE: DDR) back in 2008.

At the European Public Real Estate Association’s (EPRA) annual conference in London earlier this month, Alexander Otto, chief executive of Germany’s ECE Group, spoke with EPRA’s Steve Hays for a series of joint EPRA and REIT.com interviews.

ECE Projektmanagement G.m.b.H. & Co. KG was founded in 1965 by Prof. Dr. h.c. Werner Otto. The company is the European market leader in the field of inner-city shopping centers. Moreover, ECE also develops and builds transport complexes, logistics centers, company headquarters, office complexes, industrial buildings, as well as other special-purpose properties.

Looking at the prospects for retail and industrial development across Europe, Otto said he expected activity to remain slow for the near term as economic struggles continue.

“I think there will be a lot of investment in good, existing assets,” Otto said.

ECE is active in 15 European countries currently. Otto said large, stable markets like Austria, France and Germany offer opportunities for new development. Whereas, he said southern Europe is a more difficult market where demand is limited and financing is difficult to obtain.

Otto said he expects the economic issues in many southern European countries could linger for some time, especially in ECE’s primary focus of the retail sector.

Otto has spoken out publicly against some of the criticism inner-city shopping centers have received in some European markets.

“The criticism of these downtown shopping centers is very much a German phenomenon. In a lot of U.S. cities they see the value of these properties and give subsidies to encourage developers to invest in the inner cities,” Otto said.

Otto said as retailer formats expand and needs change, it becomes difficult to accommodate and attract tenants into existing inner-city formats. The centers also bring in a lot of parking to the downtown areas and help promote the area as a whole, Otto said.

Regarding the company’s investment in Developers Diversified, Otto said the share price has appreciated and the whole experience has worked out well. Otto said in 2008 when the investment was made, the property markets in the U.S. were in more distress than in Europe and the availability of capital was particularly challenging. However, he added the U.S. capital market also changed very quickly.

For the coming year, Otto said ECE wants to expand upon its 18.5 billion euros in assets under management. He said there is clear need for professional property managers, especially on the retail side.

By Matt Bechard

Duration : 0:4:44

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Technorati Tags: Alexander Otto, commercial real estate, ECE Group, EPRA, European property markets, European retail development, German real estate, inner-city shopping centers, international, NAREIT, Otto family, Philip Charls, real estate investment trusts, Reit, REITS, sovereign debt crisis