Wednesday, March 9, 2011

Turn-Key Luxury Home In Hale

Areas such as Alderley Edge, Hale and Prestbury have had their Edwardian and Twenties suburban homes demolished in recent years to make way for modern mansions. During the boom years these homes were bought for their plot of land, flattened and replaced with open plan high tech houses all around Cheshire. Local cried out as they witnessed perfectly good homes being razed to the ground, they felt that the mansions were too big for the plot of land. Hale has a mixture of these homes along its fancy residential streets but one of the houses stands out from the crowd. A resident of Hale for twenty years, Rittu Kumar, has built a spectacular home which is not only furnished but fitted with the bed linen too. She feels that the boom years of developers buying a plot of land for ?1million, spending ?1million on the build and then selling for ?3million have now disappeared. These developers have now gone out of business; she has adopted a different approach with her turn-key homes. Any person interested in one of her properties only has to turn the key in the lock.

Her first project was a house in Carrwood in Hale Barns, the house was valued at ?5.5million. The house was over three levels and 9,200sqft in size. She bought the one acre plot in 2007 and demolished the sixties home that was on the land, she built a classic house making maximum use of the sloping site to create two storeys at the front and three storeys at the back of the house. Along with her business partner, an interior designer, she left her distinctive mark inside the house. She uses bold colours, hard woods and glass, something your average developer would not. She uses textured leather on the walls or purple and red fabrics and there is no cream and magnolia throughout in her homes. She hopes to bring the high end turn-key homes to Cheshire that the Candy brothers create in London. Her next project is two flats in Mayfair and a villa in Cannes. She makes sure that every room has at least one striking feature and the Cheshire house has a ?100,000 cinema room installed which comes equipped with twelve leather chairs.

The house has been on the open market since October but she expects it sell in the spring but she has already been offered rental of ?25,000 for the house. However she feels that a wealthy entrepreneur will buy the house and not the expected rich footballers of the region. The property market in Hale is doing well and so she might get her buyer in the end.

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When It Comes to Investing: A Good Realtor Is A Huge Part of Your Success!

Many Realtors will tell you they work with Investors and they really do, but when it comes down to the business of investing and turning a profit sometimes the only person making money on a deal is the Realtor who sells the property in the first place. If you have been an investor a while, chances are you have a good Realtor that you have an established relationship with. But if you are new to investing or new to an area, or worse, like me, new to both, sorting out which Realtor really knows what properties and what price will work in the investing world and what won't are two different stories. It always pays to do your homework and use caution when you are about to purchase an investment property regardless of how much or how convincing a Realtor can be. A good realtor can jumpstart your business just like a bad one could help kill it. Due diligence even when establishing relationships is key!

Recently I signed a Purchase and sales agreement on a REO and the offer was accepted. Like any investor I've made dozens of offers and a lot of times I don't even go see the properties until they are accepted because I would do a whole lot of running around for properties that the banks would never accept my offer on. But in this case the bank did accept my offer on this property and it probably was because it wasn't much lower than the asking price. This offer price and this property were heavily influenced by a realtor that told me how savvy he was and how great this house and this area were. So, I was the proud owner of a new property and according to this Realtor, who, by the way, worked almost exclusively with Investors as buyers, this was a property that I was going to make a ton of money on.....or so he told me. This Realtor, he was so excited, he tells me how I am going to easily make 20k, and if I walk with less than 10k I have done something wrong. Tells me I can sell this baby within 90 days and in 90 days I'm going to kiss him I'll be so happy cashing my check. Perfect, I say, a paycheck in 90 days sounds good, that's exactly what I'm looking for. He says you are going to see how great it is to work with me, I've got you hooked up with a money guy, a title guy and now I'm getting YOU this Steal of a Deal! "Oh my!", I think, "I am one lucky girl."

So, with much excitement and trepidation I went out to this glorious property that my Realtor told me I would kick myself if I did not buy -- to find a house that is almost a DUMP. Ok, ok, I'm in the business of buying dumps and making them pretty and reselling them, right? That is what I am doing as a real estate investor, right? Heck yeah!

Here's the thing. I told this Realtor I need properties right now that I can Turn and Burn. 90 days, done. So, with this one he was telling me all the pros and cons, the fix up and the potential resale value. He sent me comps, the comps he sends back what he was saying and then some! How exciting, man do I ever need a paycheck!!!! But... and, of coarse, there is a but, I start my due diligence, and lo and behold, the house 2 houses down is for sale, has been for 120 days for 183k and recently was reduced to 169k. It's not moving. Explanation from the Realtor: that house is way dated. Ok, maybe, but that area still wasn't boasting house prices of over 185k and to make money I would need to sell for at least that amount.

Ok, take it in stride, let's look at the place. The neighborhood is great!! Houses are pretty, the house 2 doors down-great! Whoa, wait a second, this nice looking house, 2 doors down, with the price dropped down to 169k is pretty, prettier than the house I just bought. I tell myself, well ok, let's take a look in my house and see what we can do... OK, WOW! This house is going to need an overhaul!! This house needs a kitchen update, a new vanity for a double sinks in the bathroom, new tub, new windows, new doors, trim throughout, a new stove, a new master bath update, new exterior paint, some siding replaced, the basement is a wreck with all these itty bitty (8x8) creepy rooms down there, (eww), what else, there is even more-the cost of this rehab is adding up in my head. Not to mention all the stuff, the dumping fees are going to be huge!!! The carpet needs replaced and it just has a real creepy feel to me. Ok, I tell myself, well even with this, let's look at the house 2 doors down to see why I will be able to sell my house at a higher price and then we'll take a look at the rehab and figure out what we can do with and do without.

So, two doors down, it is clean, newly painted, has new kitchen cabinets, new floor in the kitchen, wood floors polished, it looks nice. Only issue I see upstairs is some fuddy-duddy wallpaper on one wall and a green counter top in the bathroom. But that's it, the house has a nice feel to it and is move in ready. So, the basement, on the other hand, has old, ugly carpet and needs paint. So, how does this compare with my prospective house. Well, my Realtor says that this house does not compare because it is so dated, it looks like some blue haired lady lived here with 80 light fixtures and pink flower wall paper. In my house, he tells me that I should take up the carpet and polish the wood floors, don't replace the cabinets in the kitchen---see about painting them, buy a new stove, paint the exterior, paint the pink bathtub, new floor in the kitchen, paint interior, clean it up and call it good. So, tell me how am I going to sell this for more than 169k like the house 2 doors down? I'm doing almost exactly the same thing but wait ---I won't have new kitchen cabinets and my house has these itty-bitty creepy rooms in the basement. So, what should I do-Realtor says he is willing to take risks, that is what you do in this business, so buy it, and then wait, oh yeah, hold it for 6 months and if it doesn't work make it a rental. I don't have 6 months to wait....

The bottom line is, this realtor wanted to sell me this house. The offer that I was told was such a killer deal, wasn't. With hard money costs, closing and selling costs, the only way I could make money is if I could sell around 185k, but that wasn't going to be possible when 2 doors down was not selling at 169k. This Realtor told me I was missing out on a good deal, but I disagree. The deal I got was - learning to not do business with this guy, he'd sell me ocean view property in Arizona if I'd buy it. Realtors are the most important part of a good investment team and a bad Realtor, like this one, could put a quick end to your business as an investor. Getting to know your Realtor, finding out what kind of experience they have with investors, and checking things out before you go all the way through with a deal are critical. Once you have an established relationship with a good realtor your business will grow and it is worth sorting through the crowd to get just one good Realtor that really knows how to work with investors!

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Tuesday, March 8, 2011

Venturing Into Rental Property Investments: Advantages You Should Know

There are so many benefits in owning a commercial or residential property on a rental. Even for managing a rental property, advantages are overflowing and a lot of people and investors are having a frenzy grabbing these opportunities. One huge advantage in particular of having your own property to be rented by others is that it's a tangible asset compared to other types of investments like bonds and stocks.

People find it easier to understand and comprehend when one can use the five senses on a particular object. Moreover, the flow of income with rentals an owner receives through time can be measured easily and thus continues on a long-term basis with possibilities that rental rates will increase in the future due to many factors. With this, rental property investments are on the rise.

While most people are more involved in investing their money and other assets into financial systems such as banks, stocks, securities and bonds. But these are low in rate of return; if one really wants to grow their wealth and asset base on a faster and larger scale, one has to the risks and spend money on potential income making projects. With this into consideration, real estate investments are what others do.

The stock market is known to be unpredictable even with expert stock market analysts with constant and dynamic changes. On the other hand, real estate is more likely to be stable for a longer period of time even if the investment market performs poorly. Rental property investment can still go strong even when there's a recession, which can lead to credit crunch and other alteration in fiscal and monetary policies, is because during this period properties acquisition generally becomes tighter as people's income level becomes less stable and some even looses property due to foreclosure.

And when this happens, displaced people and those who had budget cuts tend to shift to cheaper dwellings which are rental properties. With this, you can be assured that your rental property investment are sure to have a return in the future no matter what economic condition the town or city or even the country may be into.

Hence, owners can be assured of a constant cash flow which can sustain your operation as well as mortgage payments on the property if any. Maintenance and repairs will not be too heavy on the budget and one can have an allotted budget ahead of time due to previous income from occupants.

One should also consider the fact that most real estate properties gain value in time depending on various factors specially when nearby properties and getting developed. Although property appreciation doesn't always happen and thus depends on factors such as type of property, property age, location, upkeep, status of nearby properties, visibility and others. Correct rental property investment needs to consider all those factors to ensure stability of the business and a potential increase in property value which can be used in the future.

Another benefit in rental property investments is the fact that total cost can be divided into the number of years you operate the rental property. Initial costs such as licenses and mortgages may be heavy for the first few years but may decrease the weight of cost in the long-run. Benefits in rental property investments too are larger in the long-run compared to buy-and-sell real estate businesses.

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Toronto Real Estate Market

Confused about where to invest? Well, let's peep into Toronto, for the time being. It houses a full extensive range of investment prospects. Whether you are interested in brown and green fields, port lands, developed urban areas or expansive suburban parks, Toronto has it all! The diversity in Toronto is further complimented by outstanding access to customers, suppliers and trained plus talented labor!

This might be the attraction that foreign investors fall for as there has been a considerable rise of investors in the real estate industry of Toronto! In 2010, this phenomena showed a 5 times increase when compared to 2009. The potential of the Toronto market is not hidden and this new wave of foreign investments is quite encouraging. It is leading the sector of real estate towards success, stability and establishment. Normally, Toronto is on the hit list when it comes to large scale investments in the real estate market. While every other market is suffering from the economic recession all over the world, the Toronto's real estate sector doesn't seem to have taken much effect. Due to the massive foreign investment, the market is gradually preparing itself to move towards the next step of higher success, reputation and establishment! The time isn't far when Toronto's real estate market would be on the top list of most valuable markets all around the globe!

The major foreign investors who have led Toronto towards this honorable status are the Russians, British, South Koreans, Venezuelans, Greeks, Chinese and people from Ireland. Recently, the citizens of Iran have started taking interest in this blooming sector and their main focus is on vacation homes. So you might soon here people boast about having holiday homes in Toronto, just like they brag about having summer homes in France!

One more significant factor behind this foreign investment trend could be the social tolerance existent in Canada. You rarely find information related racism, class system, gender discrimination, religious discrimination, prejudices or other forms of negative behaviors. The welcoming nature of Canadians irrespective of the person's religion, class, creed, nationality or culture has attracted the South Asian countries. The impact is influential enough to change the direction of real estate business investment from USA or UK towards Canada.

Today, Toronto is thought of as one of the most visited cities on the planet, Earth. This is yet another major reason which lures the endless inflow of foreign investors and helps them decide where to pour their precious money. Of course the choice is clear! Exactly who would not want to invest in a tolerant, developing and well-renowned market? Especially when the authorities of the market themselves encourage and boost you to come and invest and gain- in simpler words, offer you the membership of the leading real estate market of the world! Therefore, due to all these inspirations, it seems quite obvious and the only right choice to fall for Toronto as it is an emerging, global leader in the real estate investment sector!

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Tips On Finding A Fixer-Upper Home In Italy

Real estate investors' spending ability may have been restricted thanks to the difficult economic times, but the appeal of real estate in Italy is still undimmed.

Hence rising numbers of foreign purchasers in Italy are opting to renovate properties or even build anew as opposed to going for resale property. The top attraction is glaring - finance. Ditch any notions of unearthing ruins for Euro 1, a PR gimmick initiated a couple of years ago by one Sicilian town.

Yet in parts of Italy such as Basilicata, Molise and Sicily a rustic ruin can be snapped up from a trifling Euro 11,000. Factor in a bill for renovation that can begin from just Euro 800 a sq m and is it possible to convert a mound of rocks and stones into a 90sq m longed-for holiday house for just Euro 90,000 - a mere fraction of the cost otherwise. In addition, beyond the initial purchase price, construction expenses can be split over the length of the building project, which can take as long as the you prefer.

Stef Russo, from Italian real estate search firm The Property Organiser, explains: "The credit crunch has seen greater numbers of buyers going down the restoration path. Restoration costs in places such as Abruzzo are about Euro 900 per sq metre - about half what you would face in Tuscany. And rather than buyers having to come up with finance up front, restoration permits them to spread expenses over months or even years.

"In addition, buyers get the opportunity to put their personality on their homes, which is easier to do through renovation than if they buy a resale and then try to change it." The country's long history means it is replete with buildings up to 400 years old, merely awaiting some TLC to make them into welcoming modern dwellings.

Italy also has a rich supply of farmhouses - always popular with foreign investors - in large part because of the mass migration of swathes of people who, in the 19th and early 20th centuries, deserted Italy's villages for towns and cities or even a new life in the US and Latin America.

By the by, if you are tempted to try something a little more unorthodox, the answer to your prayers may lie in the approximately 6,000 religious buildings available to be converted into apartments and houses.

Once you have chosen a property, the next step is engaging the right professionals to bring your dream into reality. Although some are happy to do the legwork themselves, the most advisable route is to find a reputable geometra/surveyor (your realtor ought to be able to put you in touch with one).

They will be able to source good workmen for you as well as negotiate with local authorities for the necessary building permits. Be aware that many ancient rustic homes are built in stone and therefore sprucing up such homes will need constructors used to dealing in stone. A constant danger with projects such as this is that your outlay can fly beyond control, often by up to 25%.

Common moneypits include pools which can cost up to Euro 20,000); upgrading access roads budget up to Euro 35 a metre); and upgrading landscaping. But your surveyor can thrash out a contract with your builders outlining a maximum budget and a deadline, with penalties applicable if they are not stuck to. Although surveyors design homes to a certain level, their expertise is limited and it is wise to also seek out an architect to take charge of design.

It is vital from the get-go that you are crystal clear what you envisage and that you convey this to the architect. Brand-new ideas after your workmen have begun takes up valuable time, is expensive and demoralising for everyone else concerned. Face up to the likely timescales involved.

The purchasing process can take up to 12 weeks and obtaining building permits another six months depending on the Commune involved. One last thing, unless you intend being on-site almost continually, you should also have an independent project manager to oversee everything and help keep the project on track. Your architect or geometra can also step into this role.

One project manager says: "By popping up on site frequently, more often than not with no advance notice, we keep the purchaser clued in on progress with the help of detailed notes and photographs. So any issues can be sorted out straight away. We maintain everything going to plan and, even more crucially, ensure the buyer receives no unpleasant shocks."

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Ubud, Bali, Property Investment: Five Great Reasons Why Ubud Real Estate Will Grow in Value

By Glen Allison Glen Allison
Level: Basic

I'm a vagabond visual artist and travel photographer/writer presently embarked on a nonstop, ten-year marathon odyssey around the globe to capture the world's most extraordinary ...

?Bali is one of the worlds' most sought after tourist destinations. Its unique ancient Hindu culture is rich with elaborate religious ceremonies and processions that occur almost daily.
Five Great Reasons for Property Investment in Ubud:
1. Ubud is the art and dance cultural center of Bali. Located in the center of the island-state, this small village is one of Bali's three primary tourist areas. Ubud thrives on a steady, dynamic level of tourism that stimulates a fast growing real estate business climate for both commercial and residential properties. Bali's stable provincial government is democratically elected and encourages an open and welcoming business climate since economic growth adds greater tax revenues that permit new and ongoing development projects. The government's ever increasing investment in infrastructure stimulates even more foreign investment and the implementation of new business standards and regulations underpin long-term economic success strategies that point to sustained growth in coming decades. Even during the recent global economic crisis, Indonesia maintained approximately a 6% growth rate. This burgeoning economic giant in the region was little influenced by the downtrend, primarily because the Indonesian financial system doesn't function as a credit-based economy. Most foreign investment in real estate is on a cash basis. Today property values maintain a steadily increasing growth curve and the investment value of property in Ubud continues to augment because of the town's popularity amongst tourists and locals alike.
2. Ubud, a quaint little village of only 8000 people, is a magical place. In 2009 it was rated "Best City in Asia" by readers of the US-based luxury magazine Conde Nast Traveler. Ubud dethroned Bangkok as the best Asian city. Bangkok had held the top spot since the category debuted in 2004. Ubud also beat out several other key travel destinations--Hong Kong, Shanghai and even Tokyo--all major contenders for the prestigious award. Ubud's validation by Conde Nast Traveler as being "The Friendliest Town of All" is just one of many aspects that will most likely boost property and business values in the area for years to come. On a side note for connoisseurs, Cathay Pacific's Inflight Magazine, named the martinis at Naughty Nuri's restaurant in Ubud as being one of the top five best in all Asia.
3. Adding to Ubud's media frenzy buzz, the town was prominently featured in the wildly popular, global best-selling book, "Eat, Pray, Love," which remained on the New York Times Best Seller List for a staggering 187 weeks. Oprah Winfrey devoted two full episodes of her show to discuss the book's success, which was soon followed by a Hollywood movie of the same name starring Julia Roberts, who won the 2001 Academy Award for Best Actress. Ubud's recent accolades have intensified global investment interest in the town, which continues to show strongly augmenting revenues in the tourism sector of its economy. Property values and land rental rates for restaurants, shops, residences and hotels continue to skyrocket, which has stimulated even more interest in private real estate investment.
4. Notwithstanding the attraction of Bali's rich ceremonial culture and its lush tropical environment, one contributing factor to the island's dynamic rate of tourism growth is its low cost of travel expense when compared to high-key Western destinations in the States and in Europe or even in the nearby Southeast Asian cities of Singapore and Hong Kong. Indonesia's average per capita income is approximately US$2 per day across much of the country and per capita income for workers in Bali typically is less than five dollars per day. Such low cost greatly reduces construction expense for new projects and the cost for staff once the projects are completed. This factor becomes highly attractive for not only foreign commercial real estate ventures but for private property investment as well. Retirees seeking exotic locales for retirement often place high-value-for-money-spent as a primary investment concern.
5. Living in Ubud has its rewards. Since the town is located in the center of the island at a higher elevation than the over-crowded beach areas further south, the temperature is several degrees cooler. And there's a bit more rain in Ubud, which generally is of short duration, that nurtures the nearby verdant rice terraces--some of the most dramatic on the island. Ubud's rich cultural heritage in art and dance has fostered a vibrant expat community of countless individuals involved in the creative arts, many as working professionals. The magic draw of Ubud has triggered the opening of numerous art galleries, fine dining establishments and five-star hotel accommodations. Many foreign investors seek property investment opportunities in Ubud to capitalize on Bali's lucrative tourist industry by tapping into the luxury holiday rental villa sector.
Ubud's vibrant residential real estate market has spawned some of Bali's most innovative architectural designs, many that incorporate structures rising from infinity-edged reflecting pools. The concept blends unique contemporary design with the traditional Balinese "alang alang" thatched roof. The climate is temperate all year long so glass-enclosed, open-air rooms can invite nature inside in an often striking juxtaposition of elements.
Today's Ubud seems to have captured the most exotic aspects of Bali's rich cultural heritage while it keeps abreast with the future. It surely has captivated the world's attention.
Copyright ? Glen Allison ALL RIGHTS RESERVED

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Article Submitted On: February 13, 2011

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What If My Income Property Goes Into Foreclosure?

Rental property investing is a great way of making your money work for you. If you are renting out an income property and paid a fair price for it, then in the long run you are almost guaranteed to realize an excellent return on your investment. However, if you've overpaid for a property, you may find that the rent you receive from the tenants is not enough to cover the expenses of the property, like the mortgage. In this scenario, foreclosure is a real possibility.

Impact of Investment Property Foreclosure

Obviously no one wants to become a foreclosure case, but in certain situations it is unavoidable. Unfortunately, being foreclosed on can be financially devastating. First and foremost, you will lose your investment and get nothing in return. Not only will this impact your livelihood, but you will have also lost any money you put into the property, such as the down payment. Also, there is an opportunity cost; that is, you no longer have the money to invest in a property that will actually bring you a return.

There is also the damage to your credit history. Any rental property investor absolutely must have access to credit and loan facilities to acquire and maintain their properties. Simply put, having good credit is crucial to the survival of your business. Foreclosure can mean that you will not be able to access loans for the next seven years, as it takes this long for a credit blemish to wipe clean.

The bottom line is that all of these things together will create a ripple effect that will permeate your entire financial situation. It is therefore important that you look for other ways to stem off foreclosure on your investment property.

Avoiding Investment Property Foreclosure

The best option is to try and sell the property and essentially cut your losses. You will need the help of a realtor with experience in such situations to assist you in selling the property. You may be forced to put up the property for short sale, which means that it will be sold for an amount that is less than what you owe on the mortgage. This is something that you will have to negotiate with the mortgage company so that you know what your target price should be even though you are selling on a short sale. This will help you set your expectations accordingly.

Another option when you are facing foreclosure on your investment property is to seek help from the government. There are several new programs sponsored by the government that are designed to help people facing foreclosure, no matter whether the foreclosed property is a residence or an investment. Do a quick Google search and you will find everything you need to know about these programs on page one of the search results.

Another option is to approach your mortgage lender and request a refinance. Many times you will be able to get a loan modification, which will reduce your monthly payments. This is especially true considering the original loan probably had a relatively high interest rate by virtue of the fact that it was used to finance an investment property.


Foreclosure on an investment property can have far reaching financial effects that are usually difficult to recover from. So do what you can to save yourself from this unpleasant result. If you can dump the property and cut your losses, participate in a government program, or refinance with your lender, your credit score will be spared and you will be able to recover and start investing again sooner.


Visit for free landlord forms, tools, and no-hype educational info focusing solely on income property investing. For more articles from, and permission to reproduce these articles on your own website, please contact us.

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What to Do With 1 Million Dollars - Why You Should Consider Real Estate

A million dollars could multiply and translate into many more million dollars if we invest well. The available possibilities of what to do with 1 million dollars are numerous. The wisest way to spend these bucks is to invest. For such a huge sum, real estate is a feasible and secure investment to venture into. Demand for property especially residential houses is always on the rise. It is almost guaranteed that people will always want somewhere to stay; therefore, there are minimal risks of running out of demand.

Without going into the logistics of whether to buy or build, with 1 million dollars both options are viable and either could be employed. The advantage of real estate is that it is a tangible investment and chances of being swindled are low. We can look back and take pride of their investment as it can be seen and touched unlike other investments such as stocks and shares. The value of property also appreciates with time thus safeguarding the investor from adverse effects of inflation. Investing in a million bucks worth of property is just what to do with a these dollars as your credit ratings automatically sky rocket. Such a property provides great collateral and can help you secure loans to invest in other areas very easily.

Of course there are routine maintenance costs and miscellaneous expenses to be incurred periodically, but the returns far outweigh the expenses. Whether it is a residential building or a business building investing in real estate is worth considering for us.

Imagine doubling your money every week with no or little risk! To discover a verified list of Million Dollar Corporations offering you their products at 75% commission to you. Click the link below to learn HOW you will begin compounding your capital towards your first Million Dollars at the easy corporate money program. ( )

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How To Utilize REIT To Buy Real Estate

A real-estate investment trust is known by the acronym, REIT. Stockholders who have invested in property-investment corporations receive dividends, which signify profit gained from rent and other fees. REITs correspond negatively with the NASDAQ Composite Index and seem to do well when other stocks don't. They suffered greatly in the late 1990s, but have made a successful comeback in the bear market that began 10 years ago.

In 1960, Congress launched REITs, offering small investors the opportunity to invest in income-producing properties. Now, the REIT is well known in a lot of other countries aside from the United States including: Australia, Japan, and Brazil. Different countries have varying laws ruling the REIT including other real estate investment instruments.

REITs have their attraction with individual real estate investors as they offer the most direct way to buying property, eliminating some of the cost and difficulty that is often otherwise needless. Dividends are exempt from federal tax if they distribute at least 90% of taxable income to investors every year. Dividends can amass 8 to 9% per year and they offer predictability almost unheard of on today's market.

The inspiration for the design of REITs was synonymous to investment structure afforded by mutual funds. A pro rata percentage of the profits are offered to each shareholder. The stocks of most REITs are easily found on major stock exchanges. Dividends can be deducted from taxable corporate income via REITs. Capital gains and any taxes relating to dividends received must be accounted by an individual investor.

There were approximately 170 public REITs controlling more than $300 billion in 2009. Residential or commercial properties are often the target of these particular trusts. Handling the upkeep and administration of the properties within their portfolios is the function of some REITs, but there are others who do not get involved with these services and hire contractors to perform them.

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Naples Luxury Home Sales Up 63%

By Bob Dratler Bob Dratler
Level: Basic

Author has decades of Realtor experience with the dream home and luxury home market; home types including mansions and million dollar homes. Also vacation homes, ...

Naples real estate luxury home sales is looking to post a really strong year, says a report released today by the Naples Area Board of REALTORS? which tracks MLS listings and sales within Collier County. In addition, overall, pending sales increased 36 percent in January 2011 compared to January 2010 and property showings are up significantly in February, as potential buyers are getting off the fence to make purchases. Dr. Shelton Weeks, Lucas Professor of Real Estate and Director of the Lucas Institute for Real Estate Development at Florida Gulf Coast University said, "It looks like we are experiencing the wealth effect. Buyers are looking at their portfolios and feel wealthier than last year." It appears people feel more confident in 2011 which increases the probability that they will buy a home right now. Today's report provides year-to-year comparisons of both single-family homes sale and condos sale properties from price ranges, geographic segmentation and includes an overall market summary. The statistics were presented along with the following analysis:

? Overall pending sales for luxury home properties and million dollar homes price category increased 63 percent in January 2011 compared to January 2010.

? Single-family pending sales increased 40 percent with 536 contracts in January 2011 compared to 383 contracts in January 2010.

? Condos sale properties in the pending sales category increased 32 percent in January 2011 with 565 contracts compared to 427 contracts in January 2010.

? The average days a property was on the market decreased 15 percent in January 2011 to 160 days on the market compared to 188 days on the market in January 2010. The majority of those properties are traditional sales which make up 53 percent of the Naples area market.

? The number of short sales in the Naples market is at its lowest point in over 19 months; this indicates a significant market change."

Naples real estate as this sun-drenched seaside community has weathered the latest housing crisis very well compared to other locales in Florida. With the first boomers retiring in 2011 we see good things for Naples real estate for the next decade and beyond. The macro-economic forces of continued population growth, limited supply of waterfront Sunbelt real estate, boomer retirement, and three years of below normal housing starts are just now beginning to collide with increased demand. We predict Naples real estate prices to return to levels where they were prematurely fixed in 2005 and 2006."

As a Naples Realtor, we have decades of Realtor experience with home types including vacation homes, active retirement property, golf homes, beach condos, high rise homes and luxury beach home properties. Dream home communities like Aqualane Shores, Bay Colony, Coquina Sands, Grey Oaks, Moorings, Old Naples, Park Shore, Pelican Bay, Pelican Marsh, Port Royal, Royal Harbor and Tiburon. Author is a SRES designee of the National Association of Realtors. Visit us at for more information about a luxury home, mansions and million dollar homes. Also register at for 4 free Florida eBooks totaling over 300 pages via an instant download in pdf format.

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Bob Dratler - EzineArticles Expert Author This article has been viewed 14 time(s).
Article Submitted On: February 20, 2011

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Malaysian Property Against European Property

There had been a lot of talks by property developers in Malaysia, stating that the property market will still have positive growth in 2011. The developers tried to dispel the possibility of a bubble burst, and property launches are attracting investors who purchase the houses with the hope of selling them after a while. There seems to be a lot of optimism in the Malaysian market.

Is it going to be still lucrative? Some properties had boast of great sales, but there are still many lots left unsold despite great offers. What is really happening here? Are those merely advertising hypes to get people rush for a property that is barely sold?

Could it be that the real home buyers are not really able to afford the homes especially if it is a first time home ownership? Perhaps all those who purchase the new homes are buying them purely as an investment, and this group of people have grown lesser. The speculations about these decisions can go on and on, but it is still true that many investors are holding their reigns seeing the economic unrest around the world. The ultimate wait is for property prices to drop!

Across Europe, experts do not think that the year 2011 is a year to see recovery in real estate. The list of debts keep increasing in Europe and with the stress from the recent Egyptian mess sure makes things difficult. A recent report released by Dow Jones revealed that the Europeans are accepting the weak condition instead of staying too optimistic with false hopes especially with the economic weakness in countries such as Italy, Portugal and Spain. The report was done by PricewaterhouseCoopers and the Urban Land Institute based on interviews with 600 real-estate professionals.

Meanwhile, The Telegraph warned that property prices will fall in 2011, with excessive supply of properties, unemployment and continued squeeze on household budgets. For a while, the Europeans had been rather optimistic and believed strongly that the economy is on the road to recovery even last year, but reality sinks in. In fact, by the end of 2010, Japan too, had accepted the reality about the economy instead of being too positive when they were hit hard with what has now become a deflation in their own country that requires some serious attention.

So, what is your take on property for year 2011? is No. 1 Penang Property portal. This is the best place to start your Malaysia property search whether you are an investor, buying for your own, or looking to rent. At, you can find thousands of Penang apartment and condo for sale and rent with detailed information about each property, including maps and photos.

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Michigan Property Market, Invest in a Booming Economy

Investors looking to buy high quality, affordable homes in the USA can look forward to high yield capital growth over the coming years according to Vanessa Wong from Bloomberg Businessweek and Yahoo Real Estate. Michigan is set to see an increase in House prices of 33.1% and you don't need to look too far to find out why. With Michigan's proactive approach to getting its economy back on track, it is easy to see why the Bureau of Labour Statistics in its report released on January 4,2011 stated that Michigan recorded the largest over-the-year jobless rate decrease, down 3.5 percentage points.

Some of the country's biggest car makers are once again investing in Michigan. General Motors has announced 650 new jobs and Major Vehicle Manufacturer "Oshkosh", that holds a $3 billion military contract, has expanded its facility in Michigan to produce tactical vehicles for the National Guard. The US auto industry is coming back, with all three of the US auto companies producing profits and some even paying staff bonuses! Jobs have started to move back in, and we can only expect this to continue because the auto industry is really on the rise.

In 2008, Michigan gave tax incentives of nearly $100 Million to the movie industry, and this has yielded more than $648 Million in production company spending in the state. There have been over 100 movies produced there. Add to this television shows such as Detroit 1-8-7 and it is easy to see why Michigan is on the movie trail. Other than the booming economy, there are many reasons to buy Michigan property right now. Some of these include a self managed superannuation fund and passive income. Many investors have said they are looking for a way to increase their earnings and retire early and investing in Michigan has helped them do just that.

With a median house price of just $51,000 and a median family income of $54,400 it is not a question of if house prices will rise, but when. Buying property in Michigan can provide cash flow, combined with long term capital gain. Find out more about what's happening in Michigan by clicking here for recent news links or check out some Michigan Research. As with any investment however, make sure to fully understand all aspects of what you are considering and deal only with professionals in the industry.

Happy Investing.

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Investing Right in Real Estate

If you are dreaming of an upscale living, beautiful scene, away from noise and pollution, purchasing a home in Sunny Isles real estate is a good idea. Whatever reasons and taste you may have, there are plenty of options that are available in this area of Miami.

Due to the plenty of options that are available, you have to find the best home that suits your needs and lifestyle. Here are some of the things that you need to consider:


One of the important factors to consider when investing home in Sunny Isles real state is your budget. As you enter the real estate venture, you have to make sure that you have enough money to end up a successful investment. There are plenty related expenses that are involved with real estate investing. But you do not have to worry of having insufficient budget because there is financial lender and institutions that can help you own your dream home. You just have to be patient in searching for the right lender. You have to consider checking the rates and terms and make sure that it perfectly fits your financial status to avoid foreclosure in the future.


Every individual have their own taste and lifestyle. They have their own likes and dislikes. And when it comes in investing your own home in Sunny Isles real estate it is very important that you have to be particular with every detail of the home that you are dreaming of. It will be practical if you are going to make a checklist of all the things that you want for your home. You have to know everything that you want your home to have especially with the interior and exterior of your home. You may indicate the number of bedroom that you want, size of the living room, kitchen and bathroom. Determine all of these ahead of time, you can easily find the right home for you.


Another important factor that you need to consider when buying a home in Sunny Isles is the location. People may have different reason in investing a home and you can use these reasons in determining the right location for your home. There are plenty of areas that you can find in Sunny Isles and you have to check them out and determine which part of this area perfectly fits your reason for investing.

With these simple reminders, you can surely end up successful and make have the best thing that your money's worth.

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Increasing Your Property Value

Whether you are buying the house for investment or make it into your own home, you will definitely hope that the value of your house increases in time. Even if it is to become your own home, you should not neglect the need to do things to increase the value of your property.

Of course, some people will advise that whatever you do to your own home, you will want to ensure that it reflects your personal style and personality. But it does not mean that you will not be able to renovate it well enough to make it into a very tasteful property. Whatever cosmetic improvements you would like to do to your home will need some careful deliberation to ensure that your money is well spent, too.

One of the first things that you can do to increase the value of your property is the renovation of your kitchen. Some kitchen renovation will bring you returns in huge margins, while some others might actually be the reason why your investment is not selling. To increase the value of your property, your kitchen should be renovated with quality materials especially kitchen tops using lovely decorative compact laminates that have anti-bacterial, anti-fungal and termite resistant qualities. If the kitchen of the property you bought has not yet been renovated, do consider the quality of the material and workmanship when you get your renovation quotes.

Another thing which you might wish to take note on is minimizing the holes and drills to your wall. Your potential buyer might not welcome the need to plaster up holes that you created earlier, unless the holes you drilled include shelves that are tastefully selected as part of your interior designing intentions, that will entice your potential buyer to use it once they move in later. Otherwise, it will just become another excuse for your potential buyer to ask for a price cut for the corrections that he will need to do after purchase.

If your purchase is a landed property, you might wish to consider a garage or a car port to get that extra value for your property. It gives protection to your car, and your potential buyer will find it a lovely addition too. Of course, do not just get some zinc roof and nail some wood to get the porch done. Do it well, do it tastefully so that the additional structure looks solid and lasts long. is No. 1 Penang Property portal. This is the best place to start your Malaysia property search whether you are an investor, buying for your own, or looking to rent. At, you can find thousands of Penang apartment and condo for sale and rent with detailed information about each property, including maps and photos.

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Checklist for Finding Great Real Estate Deals

Where others see a problem the best real estate investors create an opportunity. But, sometimes even experienced real estate investors can miss out on an opportunity if they don't look at it the right way.

I know, because I almost missed out on a deal that's made us $100,000 and counting!

I'm talking about a little house that looked more like a tool shed than a dwelling. Just a 600 square foot wood structure sitting on a concrete slab with no basement and no garage - it was darn near the last thing I wanted to own.

It looked like a nightmare to me. I had visions of constant repairs and never-ending tenant troubles. I really couldn't imagine anyone living there and figured it was a waste of time to even think about buying it.

But my husband told me to do a reality check - because there were a lot of reasons to like the deal:
That area, and specifically within a block of this property, was being totally redeveloped with mixed use properties.The lot was large even though the house is not.We could pick up the property for no money.And, it was one of the cheapest properties we'd seen listed in the City for years and years,The current rent would cover all carrying costs until we figured out what to do with it.

Five years later, that property - which essentially is a large chunk of land in an emerging area - has more than doubled in value and the rent has covered all the costs. My husband and his Dad have only spent one afternoon there fixing the porch but beyond that we've yet to have to put a single dime of ours into it.

It's just as easy to get excited by a property that isn't really a good opportunity as it is to miss out on the ones that are. So next time you are about to walk away from a deal or you think you've found a great one run through these four items in your mind before you make your final decision.

Will it rent easily?

I couldn't imagine myself living in that little shack but I was not the target market for that rental.

The same tenant has been there since the day we bought it. He loves the large yard. He doesn't mind the exterior appearance because he finds it cozy inside and the rent is cheap for the privacy and space he enjoys.

If there will be strong demand for the property as a rental, it doesn't matter whether or not you would live there. (Just make sure the target market you're after is one you're prepared to deal with because some tenants require more time and energy than others)

Are emotions driving your decision?

Emotions weren't involved in this particular purchase, but it's something to be aware of in every real estate deal. If, at any point in the negotiations, you feel emotionally that it's a deal you HAVE to have or a deal that you won't do because of some emotional reason (I'm afraid of losing money, I'm afraid of missing out) you need to take a step back, take a breath and review everything! When your emotions are involved, you can't make rational decisions.

What do the numbers say?

My Dad told me about a conversation he had with his accountant about one of his properties. He asked the accountant what the numbers said about the profitability of the building. The accountant said with a smile, "What do you want them to say?"

In other words - was this for a bank, a buyer or the tax man? The answer can be different depending on whom you want to appeal to because there are plenty of ways to make a property look like a good deal. It's up to you, as a buyer, to make sure the numbers really say what the seller says they say.

In this deal, the numbers sold me. The rent covered all the expenses and left a small cushion for surprises. And, the tenant we had in place was signed on for a year. We doubled checked all the utility bills and felt confident the numbers would be as we projected, but even if they were off a little bit we weren't investing any money into the deal to get into it, so we were able to set aside a little cushion of case just in case we needed it.

Before you purchase a rental property review each and every lease in place, and then double check the rent with the tenants, get copies of the bills direct from the vendors and check market rental rates for the area to make sure the current tenants aren't overpaying.

Are You Judging the Book by Its Cover?

Many opportunities are missed because a property makes a negative first impression. The best deals are often those that look rough but can be repaired and restored for little cost and effort. Granted, our little shack needs to be completely rebuilt to maximize its potential - but had my husband allowed me to judge it strictly on its looks, I would have missed a deal that has (so far) grown our net worth by $100,000.

Free tips and information on investing in Real Estate in Canada at Sign up for Dave and Julie's free monthly newsletter and get a free starter tips guide where you'll learn:

* Three easy ways to make money in real estate (so easy you'll be making money while you sleep!),
* How to buy properties in Canada with limited cash,
* Your property type
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* How to select a location and begin the search for your next (or first) property purchase.

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That Darn Home Interest Deduction

A recent proposal released by the government deficit reduction commission has pinpointed the home interest deduction as one of the ways to increase government tax revenue. The debt reduction commission released two separate scenarios for ways that this proposal could be implemented.

The first proposal, referred to by some as the "Zero Plan" would eliminate most tax deductions to raise an estimated additional $1.1 trillion in taxes, while compressing the tax code down to three rates, the lowest at 8 percent, the middle at 14 percent and the top one at 23 percent.

The second proposal keeps the existing tax system, but eliminates the deduction for mortgage interest on second homes, home equity lines of credit, and home loans above $500,000.

Needless to say, the national association of Realtors and the mortgage bankers association are stridently opposed to either proposal. The reason for this opposition is quite easy to see. When the tax advantage of mortgage interest is reduced or eliminated, it will decrease demand for homes relative to current levels. Under the first proposal, there would most likely be a universal drag on housing prices as incentives would shift firmly toward renting a place to live instead of buying it. In the second proposal, prices for luxury homes, vacation homes, and general housing in high land-value markets like California and New York will be the most adversely effected.

The fundamental problem with either of these scenarios is that our current weak housing market enjoys interest rates that are the lowest on record. If one of these proposals moves through and rates increase, there is a possibility of another housing collapse. This would occur because of a 'double whammy' from reduced tax favorability of home loans and reduced affordability from higher interest rates. Each person that wanted to purchase a house would be able to afford less home per dollar of monthly payment as the cost for insurance and taxes both increase. The prospect of another major value compression is not something that most people are anxious to see, since most are still recovering from the last housing collapse.

However, one of the factors to take into consideration is how we got into the housing crisis in the first place. One of the major factors that influenced many people to purchase a home was the ability to deduct mortgage interest. This resulted in more people buying who would have otherwise stayed as renters. Another key factor in the price escalation is artificially low interest rates that resulted from government agencies purchasing loans that nobody in the private sector wanted to own. By using this mechanism, the government has subsidized low rates and long loan terms for home buyers. This also contributed to an escalation of home prices. This artificial marketplace attracted capital that would have otherwise gone to some other productive use.

This leaves us with the ultimate question of what to do? If the current situation of government subsidized loans and mortgage interest deductions is left in place, it will continue to influence resource away from other productive uses. However, if tax incentives are abruptly changed it could spur another price disruption. Either situation presents characteristics with the former representing a long-term problem and the latter being more of a short-term difficulty. Typically, politicians ignore long-term problems in favor of short-term fixes (especially if they occur around elections). However, this situation is one where the government can capture additional tax revenue by incurring a short-term problem that facilitates a more healthy long-term economic environment.

One of the additional effects that will be created by a reduction or elimination in the mortgage interest deduction is a dramatic increase in the profitability of income properties. The reason for this shift is because decreases in home affordability influence more people to rent instead of buy their house. As more tenants enter the pool, it will strengthen rent income for property owners. In addition to this, the reduction in mortgage interest deductions will suppress price appreciation. This will allow investors to purchase properties at a higher cash flow ratio than otherwise would have been possible.

In the end, it is difficult to say what will happen with the mortgage interest deduction. There are powerful political forces in opposition to removing it, but there are also powerful political forces pushing for action that reduces the budget deficit and helps to solve the US government debt crisis. In any situation, it is most important for individuals to be aware of what is happening and make decisions that are the best for them and their families. Ultimately, the only person whom you can count on to attend to your interests is you.

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Earning Through Real Estate Investments

Real estate investment is the only commodity in the market that would always increase in value. This is because land properties are considered basic necessities. Consumers and clients would always require shelter in the form of houses, apartments, condominium units and other real estate properties. That is why the value of the land properties would always go up in the long term. People should take advantage of this by investing in land properties. There are different ways to put money on land assets. This would provide long term incentives. Although the money needed to be invested is very high, the rewards are extensive and great.

Understanding Investing in Real Estate

In order to make money from real estate investments, people should have an extensive knowledge of the land property industry. Investors should understand the effect of the economy on land values and prices. This is necessary especially for people who are buying properties. The lots and structures being bought should have long term viability. Land properties relying on local businesses such as theme parks, local attractions and shopping centers are in great danger of deteriorating. This is because the value of the land would immediately go down once the local businesses close and relocate. The investor should conduct a thorough evaluation of the land properties being buying. It would prevent mistakes and large deficits.

Buying and Selling Real Estate Investments

The buy and sell method is a very reliable way to earn from real estate investments. This would allow the investor to take advantage of the price change in the economy. The key is to buy a piece of land while the prices are very low. This type of land properties is regarded as raw investments since it has lots of potential in the future. This would include lots in rural areas and remote places. At some point, rural areas would experience development. Shopping malls, schools, factories, business centers and other infrastructures would be established. By this time, the value of the land would have doubled or tripled. Once this happens, the investor can sell the land and earn money from the increase in prices.

To Lease or Buy

Another effective way to earn money through land properties is the lease financing method. Lease financing is a very innovative and helpful way to help consumers gain money. Lease financing is a business venture established to help the two parties involved. The investor would simply need to choose a viable land property, which can be used to earn money. The bank would help the investor construct houses, buildings and other structures. The structure created would be lent to consumers in order to earn money. The monthly rent paid by the tenants would be used to pay for the bank finances. Once the whole debt has been settled using the money from the rent, the title and ownership to the house would be given to the investor.

There are many ways in order to earn money from real estate. The investor would simply need to be persistent and resourceful in order to create the best deals for the consumers and land owners.

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Gurgaon: Hottest Suburb for Real Estate Investments

Gurgaon is one of the four major satellite cities of the NCR. Today, the city needs no introduction. The tremendous industrial growth and development, availability of sophisticated infrastructure, world class housing and commercial real estate facilities, efficient and quick means of transport have put the mega city on international map. According to a reputed magazine, It is the best city to live and work in India today. The extensive area in the city is peopled by working professionals not only from different Indian states but also from various foreign nations like United States, Britain, Germany, Canada etc. Apart from comfortable corporate offices, best quality residential flats are available in Gurgaon.

Whether you are a corporate migrant looking for a comfortable dwelling or a business man in need of a strategically located property to establish corporate office, or a tourist looking for a place to relax; the flourishing city has something in store for everyone. One can buy cozy yet stylish ready to move in apartments, independent houses, condos or well furnished offices or luxurious villas or farm houses in Gurgaon at reasonable prices.

The extravagant malls, smooth roads, and huge open spaces and green belt cover also make the megacity an excellent place to live. Thus, it is a matter of prudence and practical sense to invest in Gurgaon properties (residential flats, independent houses, villas and penthouses) now. Analyzing in another perspective also, it would be safe to invest at Properties in Gurgaon now. A lot of infrastructural development activities have taken place in the region recently. The Delhi-Gurgaon Metro rail, Delhi-Jaipur National Highway and the proposed Gurgaon metro rail, etc. are nascent milestones in the development of the region.

Owing to these initiatives of infrastructural development, transportation in the stretch has improved much resulting in easy access to the city form the neighboring centres. This aspect further affords scope for increase in property prices in the coming years. Furthermore, the projected growth in Indian national income in the coming years is bound to enhance the purchasing power of people and that will positively reflect in the real estate sector.

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Monday, March 7, 2011

Beginner's Guide to the Strategy of Escalation Clauses

Gone are the days of overpaying for a property only to see it appreciate and realize a profit at closing thirty days later. Nowadays, overpaying can mean cutting your profits by thousands....sometimes without even knowing it!

What is an escalation clause? In short, an escalation clause is an addendum to an offer to purchase a property. It gives permission to increase your offer to an amount you specify in increments you also set forth in the event another offer exceeds yours.

In the current recession, you can harness the strategy behind escalation clauses to increase your profits, while helping to keep from overpaying for a property.

Here's an example:

A house priced at $360,000 suddenly drops to $300,000. After seeing the house, you decide it's a deal and begin writing up an offer. Persons B and C are also writing up offers. All persons know there will be multiple offers. All offers will be reviewed together. (sound familiar?) much should you offer?

This situation is actually a common-value auction. Here, each person can only estimate the true value of the house; all they know is their own valuation of the property. If each person knew exactly how much the house was really worth, no one would offer any more than that amount, and a multiple-offer situation would never occur in real estate.

Let's say individual valuations are as follows:

YOU (Person A): $340,000
Person B: $310,000
Person C: $325,000

If each person makes an offer equal to what they believe the house is worth, you would end up overpaying by $15,000. Instead, you can avoid the "winner's curse" by asking a fundamental question:

"If no other offer will be higher than mine, how much should I offer if I think this house is worth $340,000?"

It is advantageous for you to "shade" your offer to avoid overpaying. Since you can never know how much B and C value this house, you must assume you value the house the most. If you don't, you are likely to overpay.

You can always write up an offer for $300,000. After all, an offer like that would be immediately rejected by the seller, and it is far below what you think the house is worth. To "shade" by this much is not necessary, especially if you believe Persons B and C value the property over asking price.

By using an escalation clause in your offer, you can offer $300,000 and automatically raise your offer by specified increments (let's say $1,000) until you reach your valuation of $340,000. This ensures you do not overpay.

In this scenario, you would actually have bought the house for $326,000, thereby making $14,000! You won, and you won big.

You're probably wondering, "Sure, but what if someone else ends up offering more? I'll lose the deal!" That will happen....a lot. In fact, it is not likely that you will have the highest valuation. More often than not, your offer will not be accepted in a multiple offer scenario. But remember, your valuation is the maximum amount you should be willing to pay. Convincing yourself to pay more than your valuation means you may win the deal, but you will end up paying the very most to get it. Not a great feeling is it?

Not all real estate deals involve multiple offers, but by using escalation clauses to "shade" your offers and keep you from overpaying for a property is a great strategy when faced with such a scenario.

Happy strategic investing!

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