Archive for October, 2008
In a Tough Real Estate Market Numbers are Pure Gold
It’s no secret that the real estate market is in a freefall and a lot of investors are playing defense. That’s one way to play — if you want to get beat up. Another way is to go on the offensive and decide that you’re going to succeed and that you’re willing to do whatever it takes. Here are a few things for you to think about that can help make the challenges a little smaller and your success a little easier to come by:
1. Run your numbers with the tenacity of an IRS auditor. If they don’t make sense and they don’t add up — walk away from the deal. Your cash flow analysis will tell you if the property will be in the red or in the black at the end of the month. Your calculator will give you an answer, but it can’t guarantee your results. It’s relying on you for accurate numbers — from rent rates to your cost for property taxes and maintenance. Do your due diligence and get good numbers.
2. If you’re considering investing in new locations outside your home area, making numbers work to your advantage can be a little more difficult becasue you don’t know the area. Wouldn’t it be great if you could know all there is to know about an area before you decide to go in? Now you can. Here are a few sources for numbers you can rely on for a variety of purposes. Whether you need national, regional, or local numbers, here are some resources that will help you reach your goals.
Housing numbers http://www.realtor.org/research/research/ehspage?lid=ronav0010
Statewide Economic numbers regardless of what state you’re in http://www.bls.gov/eag/home.htm
U.S. Economic Numbers (a goldmine) http://www.bls.gov/eag/eag.us.htm
Finally, I’ve told you before abou the importance of researching new markets before you spend a penny. Here’s a handy resource I just happened across that has the potential to tell you more about a community than you ever thought possible. Dozens and dozens of free market segment reports that cover every conceivable aspect of analyzing a community. I hope you love it as much as I do. http://www.housingintelligence.com/free-reports.html
Put these numbers to work for you so you can decide on the best areas for you to consider. Good numbers + good areas = explosive growth potential. Put the numbers to work and ride the wave of success as your numbers grow: The number of properties in your portfolio and the number of zeros in your bank account!
Blessings!
Charrissa Cawley
Semantic Differences: What’s the Difference Between a Rescue and a Bailout?
On Monday the U.S. House of Representatives rejected what was termed a Wall Street “bailout”. Two days later, the Senate overwhelmingly passed a “rescue” plan. Was the difference a new word or a few billion barrels of pork that lawmakers added to the bill to make it more pleasing to nervous Senators?
I can honestly say I don’t know. I’m just glad I didn’t have to make the decision. What I do know, though, is that there are no easy answers and $700 billion is 2.8 million houses at a quarter of a million apiece. Or 5.6 million if you can get 50% short sales 
Really, though, a bailout sounds worse than a rescue. Rescuing somebody just sounds better — especially when your wallet stands to be the life jacket being used. You feel more heroic, and I think that was the goal. Because words mean things.
Take real estate investing for instance.
When you’re negotiating with a seller, the difference between a deal and an unfulfilled dream could be what you say — and it might be how you say it. Success in real estate investing comes down to the art of negotiation. You may be faced with dealing bad news to the one you’re negotiating with. You may not be able to give the seller what they want, but find a way to turn it around. Be diplomatic, which is the art of telling someone where they can go so artfully that they actually look forward to the trip.
So take it from your government: Choose your words wisely, find out what the other party needs, and figure out how you can give them what they need — even if they don’t know what it is.
Then you have a win-win transaction.
And nobody gets stuck with a debt that can’t be repaid.
Happy Investing!
Charrissa Cawley
