Property Investors Quotes

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The ‘environment’ is not the gift of entrepreneurs, risk takers, or investors. It is the common, inherited property of humanity.
Christopher Hitchens (The Quotable Hitchens from Alcohol to Zionism: The Very Best of Christopher Hitchens)
There will come a day when the properties my partner and I own will be sold. But until that day, the cash flow generated from them, and their appreciation in value, ensures that we have the ability to do the things we love today, and in the future.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
Investors are still thinking through the consequences of reinventing the software industry as one with an explicit focus on service rather than closed intellectual property, and will be for some time to come.
Eric S. Raymond (The Cathedral & the Bazaar: Musings on Linux and Open Source by an Accidental Revolutionary)
. John Bonavia is one real estate entrepreneur who has worked hard to get a successful fortune in real estate. His plans and strategies have helped in getting the best deals to the desk along with attracting potential buyers for his properties. When we talk about the real estate market it is very important as a beginner or a previous investor to know which market you are investing in.
john bonavia
Getting licensed was one of the best things we ever did for our business. My wife got her license right after our third rehab -- we were getting frustrated with our real estate agents and we felt as if we had very little control over our deals; I got my license several years later and currently we’re both licensed. Given our experiences, I couldn’t imagine being a full-time real estate investor and not having someone in our business who had their license.
Jonathan Scott (The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties)
A tax on capital would be a less violent and more efficient response to the eternal problem of private capital and its return. A progressive levy on individual wealth would reassert control over capitalism in the name of the general interest while relying on the forces of private property and competition. Each type of capital would be taxed in the same way, with no discrimination a priori, in keeping with the principle that investors are generally in a better position than the government to decide what to invest in.
Thomas Piketty (Capital in the Twenty-First Century)
Most of the crime-ridden minority neighborhoods in New York City, especially areas like East New York, where many of the characters in Eric Garner’s story grew up, had been artificially created by a series of criminal real estate scams. One of the most infamous had involved a company called the Eastern Service Corporation, which in the sixties ran a huge predatory lending operation all over the city, but particularly in Brooklyn. Scam artists like ESC would first clear white residents out of certain neighborhoods with scare campaigns. They’d slip leaflets through mail slots warning of an incoming black plague, with messages like, “Don’t wait until it’s too late!” Investors would then come in and buy their houses at depressed rates. Once this “blockbusting” technique cleared the properties, a company like ESC would bring in a new set of homeowners, often minorities, and often with bad credit and shaky job profiles. They bribed officials in the FHA to approve mortgages for anyone and everyone. Appraisals would be inflated. Loans would be approved for repairs, but repairs would never be done. The typical target homeowner in the con was a black family moving to New York to escape racism in the South. The family would be shown a house in a place like East New York that in reality was only worth about $15,000. But the appraisal would be faked and a loan would be approved for $17,000. The family would move in and instantly find themselves in a house worth $2,000 less than its purchase price, and maybe with faulty toilets, lighting, heat, and (ironically) broken windows besides. Meanwhile, the government-backed loan created by a lender like Eastern Service by then had been sold off to some sucker on the secondary market: a savings bank, a pension fund, or perhaps to Fannie Mae, the government-sponsored mortgage corporation. Before long, the family would default and be foreclosed upon. Investors would swoop in and buy the property at a distressed price one more time. Next, the one-family home would be converted into a three- or four-family rental property, which would of course quickly fall into even greater disrepair. This process created ghettos almost instantly. Racial blockbusting is how East New York went from 90 percent white in 1960 to 80 percent black and Hispanic in 1966.
Matt Taibbi (I Can't Breathe: A Killing on Bay Street)
Does affirmative action place minority students in colleges where they're likely to fail while depriving other applicants of the chance to attend the most challenging schools where they are capable of succeeding? Does rent control drive up the cost of housing, depriving property owners of the same opportunity to profit as any other investor while driving down the quality and quantity of the housing stock? Do minimum wage laws reduce the number of entry-level jobs, making it harder to escape from poverty? Because compassion, by its nature, subordinates doing good to feeling good, these are questions the warm-hearted rarely pursue.
William Voegeli (Never Enough: America's Limitless Welfare State)
As events developed, the debate about jobs and energy extraction in general became more divisive. Those at one extreme embraced the industry as an expression of old-fashioned free enterprise. It offered work that built character and brought deserving rewards for those with initiative, whether they be roughnecks working twelve-hour shifts, investors staking their capital, or researchers staking their reputation on the next big discovery. At the other end of the spectrum were those who saw the industry as a relic of grandfather clauses and cronyism that dated to a period of predatory exploitation, when fantastical deals were pitched by door-to-door peddlers, manufacturing waste was buried in lagoons on private property, and unions were nonexistent. The middle ground was occupied by an untold number of consumers used to cheap plentiful energy, and property owners, who had their worries but also were able to calculate how much a mineral rights lease might be worth.
Tom Wilber (Under the Surface: Fracking, Fortunes, and the Fate of the Marcellus Shale)
A golden visa is a permanent residency visa issued to individuals who invest, often through the purchase of property, a certain sum of money into the issuing country. The United States EB-5 visa program requires overseas applicants to invest a minimum of anywhere from $500,000 to $1 million, depending on the location of the project, and requires at least 10 jobs to be either created or preserved.[22] When these criteria are met, the applicant and their family become eligible for a green card. There is an annual cap of 10,000 applications under the EB-5 program.[citation needed] The U.S. Citizenship and Immigration Services (USCIS) has offered its EB-5 Immigrant Investor Program since 1990. It is designed to encourage foreign investment in infrastructure projects in the U.S., particularly in Targeted Employment Areas (TEA), high unemployment areas. The funds are channeled through agencies called regional centers, now designated only by the U.S. Department of Homeland Security. The funding opportunities allow the investor to make a sound financial investment and obtain a U.S. “Green Card. A large majority of users of such programs are wealthy Chinese seeking legal security and a better quality of life outside of their home country.
Wikipedia: Immigrant investor programs
Hamilton argued that the security of liberty and property were inseparable and that governments should honor their debts because contracts formed the basis of public and private morality: “States, like individuals, who observe their engagements are respected and trusted, while the reverse is the fate of those who pursue an opposite conduct.”The proper handling of government debt would permit America to borrow at affordable interest rates and would also act as a tonic to the economy. Used as loan collateral, government bonds could function as money—and it was the scarcity of money, Hamilton observed, that had crippled the economy and resulted in severe deflation in the value of land. America was a young country rich in opportunity. It lacked only liquid capital, and government debt could supply that gaping deficiency. The secret of managing government debt was to fund it properly by setting aside revenues at regular intervals to service interest and pay off principal. Hamilton refuted charges that his funding scheme would feed speculation. Quite the contrary: if investors knew for sure that government bonds would be paid off, the prices would not fluctuate wildly, depriving speculators of opportunities to exploit. What mattered was that people trusted the government to make good on repayment: “In nothing are appearances of greater moment than in whatever regards credit. Opinion is the soul of it and this is affected by appearances as well as realities.” Hamilton intuited that public relations and confidence building were to be the special burdens of every future treasury secretary.
Ron Chernow (Alexander Hamilton)
The Princeton economist and wine lover Orley Ashenfelter has offered a compelling demonstration of the power of simple statistics to outdo world-renowned experts. Ashenfelter wanted to predict the future value of fine Bordeaux wines from information available in the year they are made. The question is important because fine wines take years to reach their peak quality, and the prices of mature wines from the same vineyard vary dramatically across different vintages; bottles filled only twelve months apart can differ in value by a factor of 10 or more. An ability to forecast future prices is of substantial value, because investors buy wine, like art, in the anticipation that its value will appreciate. It is generally agreed that the effect of vintage can be due only to variations in the weather during the grape-growing season. The best wines are produced when the summer is warm and dry, which makes the Bordeaux wine industry a likely beneficiary of global warming. The industry is also helped by wet springs, which increase quantity without much effect on quality. Ashenfelter converted that conventional knowledge into a statistical formula that predicts the price of a wine—for a particular property and at a particular age—by three features of the weather: the average temperature over the summer growing season, the amount of rain at harvest-time, and the total rainfall during the previous winter. His formula provides accurate price forecasts years and even decades into the future. Indeed, his formula forecasts future prices much more accurately than the current prices of young wines do. This new example of a “Meehl pattern” challenges the abilities of the experts whose opinions help shape the early price. It also challenges economic theory, according to which prices should reflect all the available information, including the weather. Ashenfelter’s formula is extremely accurate—the correlation between his predictions and actual prices is above .90.
Daniel Kahneman (Thinking, Fast and Slow)
Indian Express (Indian Express) - Clip This Article at Location 721 | Added on Sunday, 30 November 2014 20:28:42 Fifth column: Hope and audacity Ministers, high officials, clerks and peons now report for duty on time and are no longer to be seen taking long lunch breaks to soak in winter sunshine in Delhi’s parks. Reform is needed not just in economic matters but in every area of governance. Does the Prime Minister know how hard it is to get a passport? Tavleen Singh | 807 words At the end of six months of the Modi sarkar are we seeing signs that it is confusing efficiency with reform? I ask the question because so far there is no sign of real reform in any area of governance. And, because some of Narendra Modi’s most ardent supporters are now beginning to get worried. Last week I met a man who dedicated a whole year to helping Modi become Prime Minister and he seemed despondent. When I asked how he thought the government was doing, he said he would answer in the words of the management guru Peter Drucker, “There is nothing quite so useless as doing with great efficiency something that should not be done at all.” We can certainly not fault this government on efficiency. Ministers, high officials, clerks and peons now report for duty on time and are no longer to be seen taking long lunch breaks to soak in winter sunshine in Delhi’s parks. The Prime Minister’s Office hums with more noise and activity than we have seen in a decade but, despite this, there are no signs of the policy changes that are vital if we are to see real reform. The Planning Commission has been abolished but there are many, many other leftovers from socialist times that must go. Do we need a Ministry of Information & Broadcasting in an age when the Internet has made propaganda futile? Do we need a meddlesome University Grants Commission? Do we need the government to continue wasting our money on a hopeless airline and badly run hotels? We do not. What we do need is for the government to make policies that will convince investors that India is a safe bet once more. We do not need a new government that simply implements more efficiently bad policies that it inherited from the last government. It was because of those policies that investors fled and the economy stopped growing. Unless this changes through better policies, the jobs that the Prime Minister promises young people at election rallies will not come. So far signals are so mixed that investors continue to shy away. The Finance Minister promises to end tax terrorism but in the next breath orders tax inspectors to go forth in search of black money. Vodafone has been given temporary relief by the courts but the retroactive tax remains valid. And, although we hear that the government has grandiose plans to improve the decrepit transport systems, power stations and ports it inherited, it continues to refuse to pay those who have to build them. The infrastructure industry is owed more than Rs 1.5 lakh continued... crore in government dues and this has crippled major companies. No amount of efficiency in announcing new projects will make a difference unless old dues are cleared. Reform is needed not just in economic matters but in every area of governance. Does the Prime Minister know how hard it is to get a passport? Does he know that a police check is required even if you just want to get a few pages added to your passport? Does he know how hard it is to do routine things like registering property? Does he know that no amount of efficiency will improve healthcare services that are broken? No amount of efficiency will improve educational services that have long been in terminal decline because of bad policies and interfering officials. At the same time, the licence raj that strangles private investment in schools and colleges remains in place. Modi’s popularity with ordinary people has increased since he became Prime Minister, as we saw from his rallies in Kashmir last week, but it will not la
Anonymous
The way Brad’s business works,” she said, “is that companies who are looking to expand send his agency locations where they want to go, and I don’t mean towns or regions. I mean coordinates. Latitude and longitude. Often they’ve already identified the site themselves.” “Why don’t they just buy the property themselves?” I asked. “Something about retailers not wanting to also be in real estate,” she said with a shrug. “It never made much sense to me either, but apparently it’s about showing their investors that they are staying within a particular area of business expertise and subcontracting for related services. Anyway. So a company like yours—Great Deal, right?” “Right.” “Great Deal says they want three stores in metro Atlanta in these locations and they’ll pay between one and three million per lot. Brad goes in, negotiates the deal with the property owner through a broker, ensures the land is suitable, then purchases it for Great Deal. But say he finds out that the seller will part with the land for only a few hundred thousand? He knows Great Deal will pay way more than that so . . .” “He convinces the seller to ask for a higher price and gets a cut of the extra?” I suggest. “Worse,” she said, and now her previous despondency settled back into her body so that she sagged and, for a second, squeezed her eyes shut. “He buys the land himself. Sets up a shell company under someone else’s name, then tries to sell it on to Great Deal at the markup he knows they’ll pay. A million plus profit per site.
Andrew Hart (Lies that Bind Us)
The most intensely value-laden artifacts of human creativity - works of art - are now the purist examples of that old capitalist alchemy: turning human value into exchange value. At a certain point, and that point has been passed, the art market will only be a mathematical exchange. Art is worth money, but what’s money worth? Money is the ultimate numbers game. What the furor over the art market brings tantalizingly close to the surface is the fact that it is not just the value of art that is dependant on a shared fantasy, it is also money itself. Warhol is not the name of an artist, it is the name of a currency. “Warhol” is a big number because its denomination (soup cans, Brillo box simulacrums, etc.) is presumed to be stable and growing. But it can inflate or deflate like any stock or bond or national currency. Jeff Koons is also a currency but less stable. The only thing that really changes hands are the numbers that are for some reason associated with these opaque talismans called “artworks.” The billionaire buyers of these works have been reduced to South sea natives who insist on the magical properties of certain queer objects - a cornhusk doll with pearls for eyes and a colourful ribbon about its head - but are unable to say why they are so important or why their world would collapse without them. Investors in the art market need to fear bot only the economic boogies of bubbles and ponzi schemes but also that dreaded moment when they look at one another in panic and say, “What were we thinking? What is this stuff? What could have possessed us to say that a glass balloon dog is worth thens of millions? Sell! Sell!
Curtis White (We, Robots: Staying Human in the Age of Big Data)
Many banks do not advertise they are portfolio lenders and many people working at the bank may not even know what a portfolio lender is. If you are calling up a bank and they say they aren’t a portfolio lender, don’t give up! Ask to talk to a loan officer and ask specific questions about what type of investor programs they offer. Here are some good questions to ask; Do you loan to investors who already have four mortgages? Do you sell your loans or keep them in-house? Do you allow investors with four or more mortgages to do cash out refinance? What terms and loan programs do you offer investors? ARM, 15, 30 year fixed, balloon? What interest rates are you charging and what are the initial costs for your loans? What
Mark Ferguson (How to Get Financing on Multiple Investment Properties)
We know the economics of these startups,” Eb says. “We begin with nothing but the idea. That’s what the NDA is for—to protect your idea. We work on the idea together—put our brainpower into it—and get stock in return. The result of this work is software. The software is copyrightable, trademarkable, perhaps patentable. It is intellectual property. It is worth some money. We all own it in common, through our shares. Then we sell some more shares to an investor. We use the money to hire more people and turn it into a product, to market it, and so on. That’s how the system works,
Neal Stephenson (Cryptonomicon)
The interregional slave trade guaranteed a source of slaves to slave owners, who “hitched their future to slavery a single cash crop and fresh land” and refused to take an interest in manufacturing or diversifying agricultural production.25 The price of slaves tripled between 1800 and 1860, making human property the most lucrative investment. The price of a “prime male f ield hand in New Orleans began at around $500 in 1800 and rose as high as $1,800 by the time of the Civil War.”26 The result was that slave owners and investors who benefited from the interregional slave trade had a vested interest in its expansion.
Steven Dundas
Supply and Demand When it comes to investing in property of any kind, particularly rental property, I make sure my first objective is to get an accurate read on the supply and demand in the area. I’m not talking anything complicated, just basic economics. Supply is defined as the number of rental properties available in a market or submarket. Ideally, supply should be low and demand should be high.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
Almost every great deal came as a result of some investor having the ability, desire, and plan to fix someone else’s problem. Money was made as a result of this. If you want to make wealth in real estate, learn how to fix other people’s problems and you will find that wealth finds you.
David Greene (Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple)
White Building Reports provides professional and expert Building Inspection Services for home owners and investors in Melbourne and its surrounding suburbs. All our Building Inspectors are licensed builders with many years’ experience in the industry. Our inspectors will provide professional, expert and unbiased information on the workmanship and finishes of the property. Call us today. 0418 322 925 whitebuildingreports@yahoo.com 67 Two Bays Rd, Mt Eliza, Melbourne, Victoria, Australia
White Building Reports
Paul Boschetti is a visionary real estate investor who has transformed properties in San Francisco Bay Area into highly profitable assets. His strategic investments and management approach have enabled him to create value where others have failed.
Paul Boschetti
Change is all around us, all the time, but our futures are in our control if we allow them to be.
Jason Kogok (Plug the Holes, Fill the Barrel: The ABC Guidebook for Amateur & Beginner Real Estate Investors looking to Build Wealth and Create Financial Freedom through Passive Income and Rental Properties)
In Brave’s case, the risk might be that the billion tokens it issued are treated like long-term investments, hoarded by investors who withhold them from circulation. In that case, the BATs’ value won’t accurately reflect the market for user attention. A critical mass of use, not holding, is needed. Brave’s model included a token-issuance strategy for dealing with that challenge. It set aside a 300 million–strong “user growth pool” to attract new users. There’s a plan, for example, to deliver a small amount of BATs to the integrated Brave wallet whenever there’s a unique new download of the browser. In this way, the token is designed as a tool to bootstrap adoption, to foster network effects. “Early on we saw this as something that would allow us to stake users with initial grants,” says Brave CEO Brendan Eich. The strategy was shaped by Eich’s decades in Silicon Valley, where the veteran engineer created the ubiquitous Web programming language JavaScript in the nineties and later went on to co-found browser developer Mozilla. Over time, he realized that venture capitalists were reluctant to fund the marketing cost of acquiring users and that tapping new equity or debt to do so was dilutive to the founders’ and early investors’ ownership stakes. “But with a token, it can be disbursed to users without credit consequences,” he adds, arguing that by contrast to a dollar’s worth of equity or debt, “the BAT is a social credit currency; it doesn’t have this inflationary property.
Michael J. Casey (The Truth Machine: The Blockchain and the Future of Everything)
By focusing on the agreeable issues, the other party will get the sense that progress is being made—that an agreement is on the horizon—and they will be more inclined to continue moving forward with the discussions. For example, you might write down a counteroffer and say to a seller: Investor: “Okay, it sounds like we both agree on the major points— we’re going to pay for the property in cash, we’ll close on your preferred date of February 16, and my partner will need to see the property and sign off on the deal. Now, all we need to do is come together on price. I know you said that you couldn’t do $87,500—what if I can increase my offer to $90,000, and we include a five-day inspection period for me to bring in my contractors to take a look at the property? Will that work for you?” In this case, even if the parties were far apart in price, we’re sending the message to the seller that we’re actually pretty close to a deal. In fact, I like to reiterate all the things we agree upon every time I make a counteroffer.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
This is also a great tactic if negotiations ever stall—revisit the things both parties agree upon and remind the seller of more of those things that may not have been discussed for a while. For example, if things have come to a standstill in the negotiation, you might say: Investor: “I know we haven’t yet agreed on price, but I think we’re pretty close here. Remember, we’re happy to take the house as-is— you don’t have to clean out the basement or the garage. And our title company is happy to come here to your house to sign all the paperwork, just to make everything more convenient. My offer of $90,000 really is my top number, but I want you to be confident you are getting a great deal, so I’ll give up some of my profit and go to $91,500. Can we close on that?
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Non-Round Numbers Are Better at Anchoring Choosing a round number will send the message—especially to experienced negotiators—that you have no specific rationale for that price. And, if you have no rationale for a price, it’s reasonable to assume that you aren’t committed to that price. For example, if a house is listed at $250,000, and you offer $200,000, a smart seller will realize that it’s unlikely that $200,000 number has any specific meaning to you, and that you’re likely just fishing to see if the seller will budge on their price. On the other hand, if you were to offer, $204,200 on that same house, the seller will assume there was thought put into that offer, and will likely believe that the number has some specific meaning. You could reinforce this belief by communicating additional information to the seller when making the offer. For example, before offering $204,200, you might say to the seller: Investor: “I’m glad I met you today… this is actually perfect timing. I just left a closing this morning where I sold a previous property, and I have some cash available to make another purchase.” You haven’t said that the amount of cash you have available is $204,200, but given that your offer is so specific, the seller will likely assume a connection. The seller is now anchored to your $204,200 number, subconsciously thinking that this number is important to your side of the negotiation, perhaps even a requirement for you. Later in the negotiation, you can reinforce this anchor by saying something to the effect of: Investor: “I only have a specific amount of cash available to invest right now. I may be able to increase my offer a little bit, but not much.” Without saying it, you have reinforced the belief that $204,200 is the specific amount you have available to purchase the property, though you’re willing to reluctantly try to find a few more nickels under the sofa cushion.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
The property owner, contractors, subcontractors, investors, the lender, project stakeholders, the architect, as well as project managers are each individually able to stay updated on the progress of the home-build through the Schedule of Values. Inasmuchas the Schedule of Values relates to billable work performed - and to tasks completed - during each draw period in the project. As each phase of the home build is completed - i.e.: as one draw period progresses to the next draw period - the project's Schedule of Values is updated. The updating of the S.O.V. in subsequent draw periods is directly relatable to forthcoming draw requests. For each new draw request, line items in the Schedule of Values - as per project progression in each draw period - are revised.
Ted Ihde, Thinking About Becoming A Real Estate Developer?
The first is to never carry a mortgage larger than twice your gross income. The second is to spend less than 20% of your gross income on housing, including your mortgage payment, utilities, property taxes, insurance, and maintenance.
James M. Dahle (The White Coat Investor: A Doctor's Guide to Personal Finance and Investing (The White Coat Investor Series))
Successful real estate investors realize the value of surrounding themselves with experts in a range of areas—taxes, the law, real estate, insurance, property management, etc.
Garrett Sutton (Loopholes of Real Estate: Secrets of Successful Real Estate Investing (Rich Dad's Advisors (Paperback)))
Over the next couple of years, we built and tested a series of prototypes, started dialogues with leading manufacturers, and added business development and technical staff to our team, including mechanical and aerospace engineers. Our plan was that PAX scientific would be an intellectual-property-creating R & D company. When we identified appropriate market sectors, we would license our patents to outside entrepreneurs or to our own, purpose-built, subsidiaries. Given my previous experience on the receiving end of hostile takeovers, we were determined to maintain control of PAX Scientific and its subsidiaries in their development stages. Creating subsidiaries that were market specific would help, since new investors could buy stock in a more narrowly focused business, without direct dilution of the parent company. We were introduced to fellow Bay Area resident Paul Hawken. A successful entrepreneur, author, and articulate advocate for sustainability and natural capitalism, Paul understood our vision of a parent company that concentrated on research and intellectual property, while separate teams focused on product commercialization. With his own angel investment backing, Paul established a series of companies to market computer, industrial, and automotive fans. PAX assigned worldwide licenses to these companies in exchange for up-front fees and a share of revenue; Paul hired managers and set off to sell fan designs to manufacturers.
Jay Harman (The Shark's Paintbrush: Biomimicry and How Nature is Inspiring Innovation)
Every day do something that will inch you closer to a better tomorrow.” Doug Firebaugh
Richard W.J. Brown (Property Investor Toolkit: A 7-Part Toolkit for Property Investment Success)
In 2012, Australia implemented tough anti-tobacco regulations, requiring that all cigarettes be sold in plain, logo-free brown packages dominated by health warnings. Philip Morris Asia filed suit, claiming that this violated its intellectual-property rights and would damage its investments. The company sued Australia in domestic court and lost. But it had another card to play. In 1993, Australia had signed a free-trade agreement with Hong Kong, where Philip Morris Asia is based. That agreement included provisions protecting foreign investors from unfair treatment. So the company sued under that deal, claiming that the new law violated the investor-protection provisions. It asked for the regulations to be discontinued, and for billions in compensation.
Anonymous
The third D is deferrable. Tax law allows you to use IRAs and 1031 exchanges to buy and sell investment real estate while deferring the tax hit to a more advantageous time. IRA funds can be invested in real estate, and as long as any profits from rental income or property sales remain in the IRA, those profits are tax-deferred. The 1031 exchanges give you a choice at the moment of sale either to realize the gain and pay taxes on it or to reinvest that gain in another property and defer the taxes. And when you choose to reinvest, the transaction is treated as if you simply exchanged equity in one property for equity in another. The government has established these tax-deferring vehicles as a way for investors to reinvest real estate profits without having to pay the taxes until later. Millionaire Real Estate Investors believe that taxes deferred until tomorrow are always better than taxes paid today. As a result, they make use of these programs to preserve their profits as they go, giving them more to reinvest and accelerating the growth of their real estate portfolios. U.S.
Gary Keller (The Millionaire Real Estate Investor)
What turns an opportunity into a deal is that the property meets your Criteria and the seller is willing to meet your Terms.
Gary Keller (The Millionaire Real Estate Investor)
In the end it’s the tax-deferred 1031 exchange that gets massive use by Millionaire Real Estate Investors. This program in the IRS tax code allows you to sell and buy properties without having to declare capital gains or pay those taxes. It’s a very straightforward procedure, but it takes some planning. First, you need to hire a 1031 Qualified Intermediary before you close on the sale of one of your properties. That person will act as your guide and escrow agent as you move through the sale of one property and the purchase of the next. After the sale of your “relinquished property” you have 45 days to identify the “replacement property” and a total of 180 days to close on that second property. You want to be looking for the replacement property before or during the marketing of the property you are selling. If you find a good opportunity, you can enter into a contract with a right to assign clause if your first property does not sell or with a 1031 clause in the purchase agreement if it does. Many people have the mistaken notion that you are exchanging your property with someone else: You take theirs, and they take yours. In some cases that can be done, but it is neither the purpose nor the requirement of a 1031 exchange. A 1031 exchange is designed for you to “exchange” one property in your portfolio (sell it) and replace it with another one that you wish to buy. It allows you to keep purchasing larger, more expensive properties without having to pay capital gains taxes on the ones you sell. This is a wonderful way to keep your money working for you.
Gary Keller (The Millionaire Real Estate Investor)
Oil and Gas Investing in Permian Basin-Smart Move As the true scope of Permian Basin is being understood, one thing is very clear; it is going to attract a lot of investment. As in case of all oil and gas investments, the sooner you invest, the better your returns are going to be. Right now is the perfect time for oil and gas investing in Permian Basin. There are a lot of benefits of choosing to invest in things other than the property, shares and stocks circuit. It not just helps you spread out your earnings, it lets you test potential markets such as these. As these markets are not overcrowded, there is more scope for growth. But why should you choose oil and gas investing in Permian Basin when you have dependable assets elsewhere? The answer is that those assets multiply at such a slow pace that you forget they are there while when there is an oil and gas boom, it turns your fortunes. An oil well investment brings with it years of steady income with the benefit of tax deduction on the investment. It is not as much a gamble as it is made out to be and oil strikes are more frequent than people would like you to believe. About 15% annual income from oil and gas wells is exempt from tax and 65-85% of your first year's investment can be waived off. Gone are the days when all you could do with oil well was bore increasingly downwards, vertically. Now there is technology available that lets you draw oil supply for a long, long time after the initial vertical bore runs dry. With new advancements in drilling and extracting techniques, a lot of oil that was earlier as good as not being there has suddenly become readily available. Being with a company that is well equipped with the latest technology gives your investment more stability. That is one of the reasons for a revival of the boom in Permian Basin and it has been predicted to last for a long time to come. Choose with great care a reliable and experienced company that is a seasoned hand at oil and gas drilling and production. Oil and gas investing in Permian Basin is bound to attract many investors looking to be a part of the upward trend. Invest today and reap benefits for years to come.
Nate Lewis
Portland’s affordability is also being pressured by investors so bullish on this city’s single-family housing they’ve bought properties by the dozen on the heels of the recession, driving up prices and rents as they go. Traditional real estate investors — flippers, remodelers and developers, companies that to some extent have always been here — have been joined by hundreds of private investors and new private equity firms out to make money for investors through real estate.
Anonymous
For some companies and investors, it’s all a bit of financial fun. Castle Partners, L.P., a pooled investment vehicle registered in Delaware, bought properties through its Oregon affiliate Castle Advisors using several companies with variations on the name COTD, an apparent play on the seafood menu phrase “Catch Of The Day.” One real estate developer held property in a company called Boondoggle LLC. Another bought six houses with My Financial Workout.
Anonymous
larger deduction if you deduct the expenses. However, this creates a lot more records because you will need receipts for all car-related expenses, including gas and maintenance.
Kevin Amolsch (45-Day Investor: How to buy an investment property with nothing down in 45 days or less)
CPA on your team as soon as you buy your first investment property.
Kevin Amolsch (45-Day Investor: How to buy an investment property with nothing down in 45 days or less)
These are forms of speculation, which project that land and property prices will increase based on the assumption that demand will increase in the future.
David Schneider (The 80/20 Investor: How to Simplify Investing with a Powerful Principle to Achieve Superior Returns)
Of the one million or so investor-owned residential homes in the State of New York, it has been estimated that in excess of 3% of these investor-owned properties sit vacant or abandoned. Say, between 30,000 and 35,000 homes. Vacant. Abandoned. Non-performing. In New York, municipalities which can establish land banks include a) cities, b) villages, c) towns, and d) counties.
Ted Ihde, Thinking About Becoming A Real Estate Developer?
The goal is to equip you with the working models you need to purchase investment properties with a market value of a million dollars or more.
Gary Keller (The Millionaire Real Estate Investor)
Criteria narrow an investor’s choices to the properties that represent the greatest opportunity and the least risk.
Gary Keller (The Millionaire Real Estate Investor)
The models featured in The Millionaire Real Estate Investor are the ones master real estate investors use to minimize risk and maximize profit when buying, holding, and selling properties.
Gary Keller (The Millionaire Real Estate Investor)
The 70 percent rule is a guideline to help real estate investors make the best deals. According to this rule, the purchase price shouldn’t be more than 70 percent of the after-repair value (ARV, how much the house should sell for after all the repairs are made) minus the total cost of those repairs.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
20 In 1932, Adolf A. Berle and Gardiner C. Means, lawyer and economics professor, respectively, published The Modern Corporation and Private Property, a highly influential study revealing that top executives of America’s giant companies were not even accountable to their own shareholders but operated the companies “in their own interest, and…divert[ed] a portion of the asset fund to their own uses.”21 The only solution, concluded Berle and Means, was to enlarge the power of all groups within the nation who were affected by the large corporation, including employees and consumers. They envisioned the corporate executive of the future as a professional administrator, dispassionately weighing the claims of investors, employees, consumers, and citizens, and allocating benefits accordingly. “[I]t seems almost essential if the corporate system is to survive—that the ‘control’ of the great corporations should develop into a purely neutral technocracy, balancing a variety of claims by various groups in the community and assigning each a portion of the income stream on the basis of public policy rather than private cupidity.
Robert B. Reich (Supercapitalism: The Transformation of Business, Democracy and Everyday Life)
In his blog post, Buterin mentions colored coins. These involve the marking of an address in Bitcoin with information beyond just the balance of bitcoin in that address. Further identifiers could also be appended to the address, such as information that represented ownership of a house. In transferring that bitcoin in that address to another address, so too went the marker of information about house ownership. In this sense, by sending bitcoin, the transaction also signified the transaction of property rights to a house. There are several regulatory authorities that need to recognize that transfer for this example to become an everyday reality, but the point is to show how all kinds of value can be transmitted through Bitcoin’s blockchain
Chris Burniske (Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond)
What would make the IRS consider you a dealer instead of an investor? • You’ve flipped multiple homes during the year. • Most of your work time is spent on flipping homes. • A large percentage of your income is earned flipping houses. • Your house-flipping business is active. You may have noticed that those factors are vague; that’s not an accident. The IRS hasn’t published specific guidelines, so it’s possible to fight dealer classification (especially if you have an experienced tax accountant). Remember, under the current tax law dealers may get to use the 20 percent deduction, which could result in a lower tax bill.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
To qualify as an accredited investor, you must have earned at least $200,000 a year ($300,000 for a married couple) for the past two years and reasonably expect that level of income to continue or have a net worth of at least $1 million (on your own or joint with your spouse) not including your primary residence.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
The semi-liquid status of interval funds also works as a protection for shareholders. When investors hear bad news about a stock, they panic and a massive sell-off follows, which sends the share price down to dirt cheap levels. That can’t happen with interval fund shares because they can’t be sold at will.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
The three main players in the MBS market are: • Government National Mortgage Association, or GNMA (pronounced “Ginnie Mae”), is backed by a federal agency and guarantees mortgage payments on loans issued through federal loan programs (like the VA and the FHA). Unlike other MBS, bonds guaranteed by GNMA are backed by the full faith and credit of the US government, just like Treasury bonds. • Federal National Mortgage Association, or FNMA (“Fannie Mae”), is a private corporation that buys mortgages from large commercial banks, repackages them into bonds, and sells those bonds to investors. FNMA is not backed by the federal government (even though the government created it), so these bonds carry higher credit risk (the risk that you won’t get your money back). • Federal Home Loan Mortgage Corporation, or FHLMC (commonly called “Freddie Mac”), works almost the same way as FNMA. It buys up mortgages from smaller lenders, like savings and loan banks or credit unions, then packages them to create MBS. Freddie Mac bonds are not backed by the US government.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
MBS face all of the regular risks (changing interest rates, for example) linked to bonds and other fixed-income securities, and two that are unique to them. These special risks are tied to the underlying mortgages: homeowners could default (stop making payments, substantially more likely with private-label MBS) or pay off their loans early, either of which would affect investor yield and cash flows.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
MBS can be harder to buy and sell than other types of bonds, as they’re bought mainly by institutional investors. Many MBS are issued and sold in large denominations (like $25,000 minimums), but some are issued at $1,000 (like most other types of bonds). You can trade MBS through specialty bond brokers, which you can find at most major brokerages (like Charles Schwab or Merrill Edge). The easiest way to invest in MBS is through specialty mutual funds or ETFs. Though technically MBS are not fixed-income investments (because the payments can vary monthly), they’re usually included in that category (because they’re bonds).
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
One common complaint among real estate investors is the lack of liquidity, especially with direct or unlisted property investments. Blockchain tokens bring liquidity to real estate investments, because they can be more easily traded on secondary markets, rather than having to wait for a building to be sold to cash out.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
The British Empires conversion of the vast indigenous economy of North America into aristocratic property provides an illuminating paralell, in fact, for a company like Amazon, whose trillion dollar market capitalization is derived from the usurpation of a thriving pre existing system of shops, markets, libraries and the like. With their bundles of patents and global monopolies, twenty-first-centruy tech conglomerates have swelled to the scale of eighteenth century trading companies and with a speed quite foreign to the plodding first economy. But they are more than just businesses. Silicon Valley firms have a profound impact on world organization, and key players such as Peter Thiel creates of PayPal, early investor in Facebook, and cofounder of the surveillance company Palantir Technologies possess political power greater than most heads of state. The old caveats apply once more. First, the second economy serves elites almost exclusively. Again fit is chiefly financialized, and building financial instruments remains the preserve of the rich. 84 percent of corporate stock is owned by the wealthiest 10 percent. But even this decile is largely denied access to the heart of the second economy. Some 80 percent of Facebook stock. worth over half a trillion dollars is owned by 25 individuals and institutions, though Mark Zuckerberg retains only 28 percent of the company, this includes a vital 60 percent of the Class B voting shares. Since Facebook is an entity comparable in scale to a nation state, and serves some of the same functions, this determination not to share political power is instructive. Valuations of such companies are inflated by their monopolistic nature and by the financial institutions that control them to the point of total departure form the first economy. This fall, during the most serious economic recession since the 1930s, the values of Tesla, Amazon and Facebook all hit record stock-market highs
Rana Dasgupta
I have always believed that most investors and analysts over-complicate matters. I try to focus on just two yardsticks when investing in a trading company, e.g. PZ Customs: dividend yields and PERs, and two for an investment or property company, e.g. Daejan - net asset values (NAVs) and gearing, i.e. the level of borrowings a company has relative to assets. The gearing factor importantly also applies to trading companies.
John Lee (How to Make a Million – Slowly: Guiding Principles from a Lifetime of Investing (Financial Times Series))
Salim Henareh is an expert real estate investor who is counted on to deliver industry advice. He helps his clients secure mortgages and purchase investment properties in Canada. Salim Henareh has traveled extensively throughout Europe, North America, and Asia.
Salim Henareh
Treat your property as you would have your tenants treat it.
Frank Gallinelli (10 Commandments for Real Estate Investors)
Mortgages on smaller properties like single-family homes are almost always guaranteed through the buyer’s own personal earning potential and wealth. You may be surprised to learn that larger investment property loans are secured by the asset itself. In other words, instead of the $2 million building riding on your own wealth, it is riding on its own valuation. This already is less risk to you.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
When you buy a house or condo and rent it out, appreciation of the property rests solely on the appreciation of the surrounding neighborhood. You better have bought in the right neighborhood, because there is little you can do to increase the value of your property.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
Investors still need to ask, how stable is the enterprise, and what are its future prospects? What are its earnings and cash flow? What is the downside risk of owning it? What is its liquidation value? How capable and honest is its management? What would you pay for the stock of this company if it were public? What factors might cause the owner of this business to sell control at a bargain price? Similarly, the pair never addressed how to analyze the purchase of an office building or apartment complex. Real estate bargains come about for the same reasons as securities bargains—an urgent need for cash, inability to perform proper analysis, a bearish macro view, or investor disfavor or neglect. In a bad real estate climate, tighter lending standards can cause even healthy properties to sell at distressed prices. Graham and Dodd’s principles—such as the stability of cash flow, sufficiency of return, and analysis of downside risk—allow us to identify real estate investments with a margin of safety in any market environment.
Benjamin Graham (Security Analysis)
This answer is amazingly simple. NEVER identify yourself as the Owner, real estate investor, or worse…“Landlord.” The simple answer is to identify yourself as the “Property Manager.
Mike Butler (Landlording on AutoPilot: A Simple, No-Brainer System for Higher Profits, Less Work and More Fun (Do It All from Your Smartphone or Tablet!))
The ABCs of Real Estate Investment will teach you how to: • Achieve wealth and cash flow through real estate • Find property with real potential – understand how to evaluate property and purchase price • Show you how to unlock the myths that are holding you back • Negotiating the deal based on the numbers • Increase your income through proven property management tools.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
In the early days of my first property management and real estate deals, there was a lot of trial and error and I made my share of mistakes. But for every one mistake I made, I learned ten lessons and got smarter every day. I started to see patterns, discover formulas and systems, and develop a network of people I could count on. It took time and it took work, but the more I pursued my dream, the luckier I felt and the more often magical opportunities presented themselves to me.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
I have seen many investors pass up great deals because the property needed a little rehab, or didn’t need enough rehab, or the numbers were .0001 percent off on their spreadsheet. Don’t pass up a great opportunity because you’re too rigid in your approach. It’s also important to keep in mind that what works in one market does not always work in another.
Avery Carl (Short-Term Rental, Long-Term Wealth: Your Guide to Analyzing, Buying, and Managing Vacation Properties)
If everyone you talk with is having difficulty seeing your vision for a property it can be either one of two things: A revolutionary idea that will prove everyone wrong. Or a bad idea that everyone recognizes as a bad idea, except you.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
In real estate, investors can add value to their property in two ways. They pay less than what it’s worth, “buying” equity. They increase the value by improving the property’s condition, “forcing appreciation” or “building” equity through the rehab process. It’s important to note, in the BRRRR method, these are the first two things the investor does. With BRRRR you are adding value before you are financing anything.
David Greene (Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple)
Investment firms are buying up more vacation homes, aiming to cash in on growing demand from tourists and remote workers. Most vacation rental homes are owned by small-time owners who list their properties on websites such as Airbnb Inc., but the number of financial firms investing in the sector is growing. New York-based investment firm Saluda Grade is launching a venture with short-term- rental operator AvantStay Inc. to buy about $500 million of homes, the companies said Tuesday. Saluda Grade said it is also looking to raise debt by selling mortgage bonds backed by its homes to investors, the first vacation-rental mortgage securitization, according to the company. Andes STR, a startup that buys and manages short-term rental homes on behalf of investors, also recently signed a deal with Chilean investment firm WEG Capital to buy roughly $80 million of properties in the U.S., Andes said. These investors are betting they can get higher returns if they rent out homes by the night instead of by the year. Low-interest rates have made it more attractive to borrow and Buy Traditional Rental Homes, inflating property prices and making it harder for new buyers to turn a profit. That has prompted some institutions and wealthy families to look in more obscure corners of the property market where competition is smaller, investment advisers say. Some are turning to investments in vacation homes, where demand has surged in many places during the pandemic as more people choose to work from remote locations and leisure travel heated up last year. “There’s a lot more yield available in the short-term market,” said Saluda Grade’s chief executive, Ryan Craft. It is the latest sign of how the pandemic is changing the way people work and live, and how real-estate investors are angling to find new ways to profit from these shifts. Saluda Grade is targeting homes within driving distance of major population centers, Mr. Craft said. His company will buy the homes and AvantStay will manage them for a fee. But while vacation-rental homes can offer higher returns, they also pose challenges to investors. Mortgages are usually more expensive and harder to get for short-term rentals than for owner-occupied homes, said Giri Devanur, CEO of reAlpha Tech Corp., a startup that wants to pool money from small-time investors to buy short-term-rental homes.
That Vacation Home Listed on Airbnb Might Be Owned by Wall Street
If every person who had been sterilized at Western State during DeJarnette's tenure as superintendent - a total he estimated to be 1,205 patients - were still alive and received compensation, their collective payout of $30,125000 would still be $219,875,000 lower than what investors think the redeveloped property will be worth some day. If all twenty-eight people who have received compensation collectively pooled their money today, they could purchase at most three condominiums at Western State's Villages at Staunton.
Elizabeth Catte (Pure America: Eugenics and the Making of Modern Virginia)
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And remember, the value of a rental property increases based on its operations and cash flow.
Ken McElroy (The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits Most Investors Miss (Rich Dad's Advisors))
First, you need to hire a 1031 Qualified Intermediary before you close on the sale of one of your properties. That person will act as your guide and escrow agent as you move through the sale of one property and the purchase of the next. After the sale of your “relinquished property” you have 45 days to identify the “replacement property” and a total of 180 days to close on that second property. You want to be looking for the replacement property before or during the marketing of the property you are selling. If you find a good opportunity, you can enter into a contract with a right to assign clause if your first property does not sell or with a 1031 clause in the purchase agreement if it does.
Gary Keller (The Millionaire Real Estate Investor)
Investor: “Great! Now, I know we talked about the fact that you want $110,000 for the house. I already mentioned that I’d be purchasing your house as an investment, and unfortunately, I just can’t afford to pay that much and still be able to make a profit on the deal. But, here’s what I can do. I can either pay you $90,000 in cash for the property or I can pay you $100,000 if you’re willing to owner finance the sale. That means we would complete the sale in ten days, but you would wait six months to collect your $100,000. Which of those options would you prefer?” At this point, if you’ve done a good job of selecting your offer prices (e.g., you weren’t too generous), there is a good chance the seller isn’t going to accept either of those offers without some additional negotiation. The good news is that we’ve gotten the seller to implicitly agree to all the other terms and contingencies in the contract. Not only that, but we’ve now given the seller two options for the sale price, and his response to your final question (“Which of those options would you prefer?”) will give insight into which direction the negotiation goes.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
While you don’t necessarily want to come right out and ask a seller if she’s talking to any other investors—you don’t want to remind her that she has other options—there are ways to glean this information more subtly. I like to ask sellers this question: Investor: “If we can’t come to an agreement for me to buy your house, what do you think you’ll do?” This gives the seller an opportunity to discuss her alternative options (she’s talking to other buyers, she doesn’t really need to sell, etc.), which is what will ultimately drive her level of motivation. The better her alternatives, the more careful you need to be about an aggressive offer; the fewer alternatives she has, the lower your offer can be without her jumping ship and going after another option.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Ask the Most Important Question The information we’ve gathered on motivation and property payoff amount are likely enough to allow us to generate a reasonable opening price bid. But, given that we’re great negotiators, there’s one more tactic that will often provide an even clearer picture of the seller’s minimum acceptable price. And that’s asking the seller flat out, “What is the lowest price you’d accept?” Now, you may be thinking that’s a bit too direct and any reasonable seller is going to be unlikely to give you an honest answer. And I’d agree with you. But if you phrase that same question just a little bit differently, you can get the information you’re looking for, while at the same time sending the message to the seller that she’d benefit from answering the question. Instead, what if we asked the question: Investor: “If I were to offer you all cash and close as quickly as you’d like, what is the best price you could give me in return?” Do you see what we just did there?
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Investor: “I asked that question in the hopes that I would be able to offer cash and a quick close. Unfortunately, since our discussion, I’ve entered discussions with two other sellers as well, and while I still hope to be able to pay cash, I take my promises seriously, and I don’t want to overcommit to you.” This not only sends the message that it was just a misunderstanding (you didn’t lie about anything), but it also allows you to send two subtle messages: Should the two of you not reach an agreement, you have other alternatives—and the fact that you are serious about your commitments. Assuming the seller is willing to answer your question, you now have another important data point that you can use to evaluate about where the seller’s MAO might be.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
many good investors will take the opportunity to find something in common with the other party and highlight that at the time they make an offer. For example, did you attend the same school? Do you root for the same sports team? Do you share any interests or hobbies? Use whatever affiliations you can find to help create rapport as early as possible. That way, as the negotiation starts and progresses, you’ll already have established common ground—and the other party’s empathy—that can be used to pave the way toward a more favorable discussion.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
My investment thesis was still based on targeting small, high-growth cities where there was no competing capital. I continued buying apartment properties in university towns because that’s where the opportunity was. Schools in the country were growing. And the largest fixed costs of real estate—taxes and utilities—were lower in these second-tier cities, so the net margins were significantly higher. I had about twenty investors, including my father, a few of his colleagues, and some attorneys from Yates & Holleb.
Sam Zell (Am I Being Too Subtle?: Straight Talk From a Business Rebel)
Talk to your agent, other local investors, and residents to get a firm grasp on the area (demographics, selling prices, average rents, historical property appreciation rates, rental vacancy ratios, and the percentage of rentals in the neighborhood).
Steve Chader (HOLD: How to Find, Buy, and Rent Houses for Wealth (Millionaire Real Estate))
As any truly formidable real estate investor will tell you, success doesn’t come from knowing how to negotiate—it comes from knowing how to solve problems. Your best deals won’t come from exerting leverage over the other party or from charming a buyer or seller with your charisma. Your best deals will come from solving the problems that are motivating the other party to want to enter into the transaction in the first place.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Scholars have turned up a mass of personal records from the man’s lifetime—more, it is often said, than exist for other writers of the period. They show his theatrical activities, his financial and property transactions, his lawsuits. They show that he was a businessman, an actor, a shareholder in an acting company, and a property investor. But they don’t show that he wrote. As the Oxford historian Blair Worden laments, “the extent and loudness of the documentary silence are startling.” This silence aggravates scholars in the extreme.
Elizabeth Winkler (Shakespeare Was a Woman and Other Heresies: How Doubting the Bard Became the Biggest Taboo in Literature)
For example, you might start the discussion with the simple question: Investor: “Why are you looking to sell your house?
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
For example, when you’re nearing a deal and you’re looking to get one last concession without giving anything else in return, try saying something like this: Investor: “I have a feeling I’m going to regret accepting this deal— I’ve never been a good negotiator and you clearly do this a lot. Perhaps I should ask you to throw some free negotiating lessons in the deal! Okay, just so I don’t feel like you completely took advantage of me, how about if [insert your request here] and we’ve got a deal…” You’d be surprised how often that final request is accepted without protest, simply because your compliment was taken as fair compensation for that final concession you requested.
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Determine Motivating Factors Other than Price In addition to determining motivation and trying to get as much information as possible from the seller, you’ll also want to use this discussion to determine if there are motivating factors other than price, or other requirements the seller has. For example, you might ask: Investor: “Assuming we can agree to a price, is there anything else you want or need out of this deal?” This gives seller the opportunity to give you more information about her situation—information that could be used to help formulate an offer and then later be able to better negotiate that offer. For example, the seller might respond in a half-joking manner with: Seller: “Price is the most important thing… But, if you know anyone who can haul all of our furniture to Nebraska for us, that would help too!
J. Scott (The Book on Negotiating Real Estate: Expert Strategies for Getting the Best Deals When Buying & Selling Investment Property (Fix-and-Flip 3))
Like many retail stores, Walgreens typically doesn’t own properties. Instead, it finds the land, builds the building, sells the land and building to an investor, and then leases them back for 30 years. Walgreens agrees to take care of all of the maintenance and all of the expenses. All the investor has to do is pay the mortgage.
Tom Wheelwright (Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes)
Your All-In-One Platform Equips You To Text Sellers, Manage Deals, And Stay Miles Ahead Of The Competition - Launch Control Is The New Industry Leader in Client Engagement and Property Research. Get started before a competitor beats you to it. The best text messaging service for real estate investors and businesses.
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What they don’t realize is this is because of the inadvertent Coffee Can style of investing that they adopt in real estate as against the trading style in their stock portfolios, i.e. when it comes to real estate, investors are happy to buy and hold for long periods of time. As a result, they end up holding their properties through thick and thin, which is why they are able to see an appreciation in the value. In contrast, in equity, investors typically end up buying at the peak, trade frequently and then exiting at the bottom. The harshness of most investors’ experience of the stock market versus their happier experience in real estate is, therefore, in part self-inflicted rather than being due to the underlying nature of these asset classes.
Saurabh Mukherjee (Coffee Can Investing: the low risk road to stupendous wealth)
REITs. Real Estate Investment Trusts, or REITs (pronounced “reets”), are companies that own and collect rent from commercial and residential properties.10 Bundled into real-estate mutual funds, REITs do a decent job of combating inflation. The best choice is Vanguard REIT Index Fund; other relatively low-cost choices include Cohen & Steers Realty Shares, Columbia Real Estate Equity Fund, and Fidelity Real Estate Investment Fund.11 While a REIT fund is unlikely to be a foolproof inflation-fighter, in the long run it should give you some defense against the erosion of purchasing power without hampering your overall returns. TIPS. Treasury Inflation-Protected Securities, or TIPS, are U.S. government bonds, first issued in 1997, that automatically go up in value when inflation rises. Because the full faith and credit of the United States
Benjamin Graham (The Intelligent Investor)
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The Book on Tax Strategies for the Savvy Real Estate Investor.
J. Scott (The Book on Flipping Houses: How to Buy, Rehab, and Resell Residential Properties)
bitcoin and issued guidance on its tax treatment with IRS Notice 2014-21. Without detailing the fine print of the ruling,27 the basic message was that although bitcoin may be called a virtual currency, for tax purposes the IRS would treat it as property. For example, stocks, bonds, and real estate are also considered property.
Chris Burniske (Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond)
some cryptoassets are commodities, this could open them up to different tax treatment than if they were considered solely as property. Commodities fall under the 60/40 tax ruling, meaning 60 percent of the gains on a commodity transaction are treated as long-term capital gains and 40 percent are treated as short-term capital gains. This is different from taxing stocks where profitably selling an equity after 12 months is classified as a long-term capital gain with a current tax rate cap of 15 percent. Selling prior to 12 months would be considered a short-term gain with the tax ramification based on an investor’s income bracket.
Chris Burniske (Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond)
The most important part of the PoW process is that one of the four variables is the identity of the previous block, which includes when that block was created, its set of transactions, the identity of the block before that, and the block’s nonce. If innovative investors keep following this logic, they will realize that this links every single block in Bitcoin’s blockchain together. As a result, no information in any past block, even if it was created years ago, can be changed without changing all of the blocks after it. Such a change would be rejected by the distributed set of miners, and this property is what makes Bitcoin’s blockchain and the transactions therein immutable.
Chris Burniske (Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond)
One specific conflict that often arises between donors and investors is how to treat proprietary information. Donors often seek to place the intellectual property an enterprise creates (best practices, challenges, and process innovations, for example) into the public domain as quickly as possible. Focusing on social impact, they want the enterprise to build bridges to entry for other social entrepreneurs to replicate the model widely. In contrast, most private investors want to maximize their financial return by building barriers that prevent others from adopting a new business model or technology. Neither approach maximizes blended value. Instead, impact investors need to find new ways to integrate the imperative to replicate models for maximum social impact with the need to generate profits and achieve investment exits.
Antony Bugg-Levine (Impact Investing: Transforming How We Make Money While Making a Difference)
Baby boomers own about 40 percent of homes in the US; that could lead to a sell-off of larger family homes as they downsize to maintenance-friendly condo-style properties, increasing the number of single-family homes for sale. More homes on the market could lead to a sharp decline in home prices—bad for homeowners but a benefit for real estate investors looking to snap up residential properties.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
One clue to a good rental market: properties being snatched up for cash, which indicates investors. You can do a search at the local courthouse (part of the public record) to find out whether homes in the area have been selling for cash.
Michele Cagan (Real Estate Investing 101: From Finding Properties and Securing Mortgage Terms to REITs and Flipping Houses, an Essential Primer on How to Make Money with Real Estate (Adams 101 Series))
The secret to successfully applying the buy and hold strategy is to buy the property below true value so that you have instant equity and then to profit from the cash flow and the principle pay down.
Phil Pustejovsky (How to Be a Real Estate Investor)
Real Estate Investment Trusts, or REITs (pronounced “reets”), are companies that own and collect rent from commercial and residential properties.10 Bundled into real-estate mutual funds, REITs do a decent job of combating inflation. The best choice is Vanguard REIT Index Fund; other relatively low-cost choices include Cohen & Steers Realty Shares, Columbia Real Estate Equity Fund, and Fidelity Real Estate Investment Fund.11 While a REIT fund is unlikely to be a foolproof inflation-fighter, in the long run it should give you some defense against the erosion of purchasing power without hampering your overall returns.
Benjamin Graham (The Intelligent Investor)