What is Real Estate

Writen by Steven Gillman

Why mobile home rentals? Get past the prejudice and look at the numbers. In our town, for example, a two bedroom house costs $130,000 and rents for $800/month. A $50,000 mobile home on real estate gets $500/month. Cash-on-cash return on investment is obviously higher with mobile homes.

Don't let the half-truth that mobiles depreciate in value keep you from investing in them. They lose value in a park, on a rented lot, but not on real estate. My first home was a mobile, bought for $19,000 and sold for $45,000 fourteen years later.

House rentals here usually have negative cash flow, while mobile home rentals have some cash flow. Still, investors prefer houses, believing they'll build equity faster, but is that true? Only during times of fast appreciation.

Equity Building With Mobile Home Rentals

Buy a house for $120,00 with $20,000 down, and take out a $100,000, 6%, 30-year mortgage. You'll have a payment of $599.60. Of the first payment, $500 will go to interest, and $99.60 to principal. You only built equity of $99.60. This ignores appreciation, but only for the moment.

Second scenario: Find a mobile home for sale on land, and borrow $30,000, at 8%, amortised over 10 years. Higher interest and a shorter term is normal with mobiles, but being done with payments in 10 years instead of 30 sn't all bad. The payment will be $363.99. The first month, $200 will go to interest, and $163.99 to principal. You built more equity in this scenario.

Mobile home rentals on land might appreciate more slowly than the "regular" house, but faster loan pay-down usually covers this factor. Pay less per month, have positive instead of negative cash flow, and build more equity! Don't expect your real estate agent to tell you this.

Mobile Homes - Cash Flow

In the example, you'd lose about $150/month on the house, after the payment, taxes, insurance, repairs and other expenses. You'd have cash flow with the mobile home, and after ten years (when the loan is paid off), you'd have a lot of cash flow.

Mobiles are cheap to maintain. The furnace died in rental I owned, and I replaced it for $1,200, much less than a furnace for a larger home. For $200 you can have the roof tarred, instead of $5,000 to re-shingle a traditional roof. Windows, plumbing, doors - they're all cheaper. Property taxes and insurance are less too (be sure you can get insurance, since some old mobiles may be uninsurable).

The Bottom Line

$20,000 can buy two mobiles, with $10,000 down on each, or four with $5,000 down on each, instead of one negative-cash-flow house. The two investors in our town that own most of the mobile homes always have cash flow, and have built millions in equity. Others, following their prejudices, struggle to make money with their "nice" rental homes. So when you're looking for a good investment, don't forget those mobile home rentals.

Steve Gillman has invested in real estate for years. See a photo of a beautiful house he and his wife bought for $17,500 on his home page, or go straight to the section on Investing In Real Estate: http://www.HousesUnderFiftyThousand.com

Writen by Mark Nash

The allure of choosing kitchen cabinets, flooring, adding a fireplace and being the only ones to inhabit a property drives many homebuyers to buy a new construction home. Before signing the developers contract consider some possible resale issues if you decide to sell your new home within two years of occupancy. Mark Nash author of 1001 Tips for buying and Selling a Home explores the pitfalls and benefits of purchasing new construction instead of a resale home.

-Existing home cost versus new construction. Research by residential real estate industry sources concur that a newly constructed home can cost up to 20% more than a comparable existing home. The added cost reflects current land, building materials and labor costs versus the cost basis for a home even one year old. Study appreciation and market conditions to determine if you sell your home within two years or less if these factors will cover your sales costs. Buyers looking at your home might consider it over-priced relative to a home built as recently as 3-5 years ago based on square footage comparisons and original cost basis.

-You don't want to be competing with the developer if you have to sell your home before the subdivision or building is sold out. Understanding that the majority of new construction homebuyers will want the same benefits of selecting finishes in their home will opt for the developers product instead of your lived-in recently built home. When purchasing a new construction home inquire when the development or subdivision will be realistically sold through. If you decide to sell your home before this sold through date, you will be competing with the developer. This could add market time and buyers might discount your home price because they might have to add or change finishes and upgrades to make it similar to the developer's new construction product.

-Under construction developments are not tranquil. Large-scale developments often take 2-5 years to complete, even if they are sold through. Being the first to occupy a new home, with the accompanying noise, truck traffic and lack of community might not be attractive to buyers of your new construction home if they must endure a couple of years of these annoyances. Check to see when schools, community centers and building or sub-division services will be available to residents.

-You'll compete with model homes. Keep in mind that if need to sell and the project is not sold out your home will be competing with the developer, their marketing efforts could position their product more favorably than yours with prospective buyers. Most likely you saw the builders model and purchased your home from there professionally decorated and furnished which was filled with all the whistles and bells known as upgrades. Model homes are positioned to maximize the appeal of the space and features. Nearly empty cabinets, closets, garages and basements, fresh paint and carpet smells, shiny appliances and spotless cleaning move buyers to reproduce the model for themselves. Your home could present to potential buyers as the stripped down and all filled up reality of the model and be discounted accordingly.

-Assess your situation before buying a new construction home. New homes offer buyers the flexibility of changing floor plans, choosing finishes and defining a brand new space. Satisfied new construction buyers are everywhere, but their satisfaction comes from a reputable builder/developer, strong warranties and the knowledge that they won't have to compete with the developer when they sell their home.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Writen by Claire May

The favourite area for the British to purchase holiday homes, on the Greek mainland is the Peloponnese and there are plenty of properties for sale to choose from. The southern part of mainland Greece, now divided from the mainland by the Corinth Canal. The peninsula hosts some of the most important and imposing ancient sites in Greece. It has a warm winter, it's not too hot in summer and the beaches are clean. The mountain landscape of the Messinian Mani is simple stunning and is dominated by Taygetos, one of the largest mountain ranges in the Peloponnese. Whereas the Messinian peninsular has rolling hills and fertile valleys considered to be the market garden and wine centre of Greece. The city of Kalamata with all its facilities nestles at the head of the Messini Bay in between the two peninsulas, thus making it an ideal location for prospective holiday home owners to search for property for sale.

It's not only the British that are showing an interest in property for sale in the Peloponnese. Each year thousands of foreigners are choosing Greece as the destination to purchase property for permanent homes or as second homes for their holidays. These people are mostly Germans and Americans although there are increasing numbers of other foreigners appearing such as Canadians, Dutch, Czechoslovakians, Austrians, etc. Despite property prices in the Kalamata area rising by 30 per cent last year, foreigners are snapping up property for sales at bargain prices. There are plenty of old stones houses for sale, full of charm and character, needing renovation or maintenance and can be purchased from as little as £30,000 on the Mani peninsular. New homes on the Messinian peninsular start from as little as £75,000 without swimming pool. Most of the foreigners who are looking for property for sale have visited Greece previously as tourist holidaying on the Peloponnese peninsular. A large number of pensioners have settled and brought homes to live in permanently. However, we are increasingly seeing younger couples or those with young families purchasing property, settling down and making a new live for themselves.

According to the Greek National Land Registry, there are over 2,500 foreigners owning holiday homes or property for permanent residents (a total of 3,200 acres) in the coastal Peloponnese prefecture of Laconia. There are also some 1,750 properties and estates in nearby Messinia that are owned by foreigners. There are already many British people with holiday homes on the Mani peninsular, while there are relatively few that have ventured as far as the Messinian peninsular.

ABOUT OUR COMPANY

R & C Property Management Services offer full Property Management, building maintenance and renovation services. We also provide care for you holiday home when you are not there or when you have guests staying. We offer cleaning package to guarantee that your holiday home receives the best possible care and attention. You can be assured that your house is secure and in safe hands. Your guests will leave with only the utmost praise for both your home and our services. For details of our services & prices follow the link. http://r-and-c-pms.biz/prices.html.

For those of you looking for the prefect holiday home we can help you find your dream property in Greece. We have developed association with reputable companies covering the Kalamata area and can introduce you to professional and reliable people who will help your house purchase to go smoothly. For information about property in Kalamata follow the link. http://r-and-c-pms.biz/property.html.

For more information visit our website, http://r-and-c-pms.biz/.

Writen by Jeffrey Hauser

It was over twenty years ago that I attended a seminar presented by noted speaker Robert Allen. He had written a book called, "Nothing Down," that explained how you could amass a fortune in real estate with virtually no money. I joined about fifty other wannabe millionaires in a motel meeting room as he described the mystical world of real estate investing. The syllabus outlined the basic steps of finding properties that were at, or below, value, making low-ball offers and obtaining 100% mortgages. Then one would simply rent the property for a sum large enough to cover the payment and move on to the next property to repeat the process, Eventually, you might have millions of dollars worth of real estate increasing in value every year and costing you nothing. You even got to write off the maintenance fees and other property improvements, along with the mortgage interest, he stated gleefully.

Somewhere along the line, I didn't realize I would be paying taxes on the rent as income, but that's a minor point. In addition, unless you had great credit and a steady job, you might have a problem finding a lender. And you most likely needed a real estate agent to help you find the qualifying property at the right price and in the right location. You also had to have enough extra savings to cover the closing costs, but I'm sure all this was spelled out in the seminar. It just wasn't the primary focus, I surmise. Instead, we were treated to a wonderful pep rally full of cheers and applause as Mr. Allen rolled out the program and told us we could, should, and probably would, all be living the good life in a few, short years.

I left feeling happy, optimistic, and ready to seize that first piece of real estate. We had very little savings and therefore, had to be realistic in our beginning purchase. After excluding all the available houses that would have cost too much to close, we found a small condo in a decent area with a reasonable asking price. It was in fair shape and needed the basic repainting and window treatments. We got it a tad below the asking price and did the math. We could just about break even on the rent versus the mortgage payment. After the closing, we discovered our math was faulty. We had forgotten the pesky taxes and insurance, but, what the heck? We were on our way to riches beyond our imagination.

The weekend after the deal was consummated, we got busy repainting and putting up some cheap mini-blinds. After cleaning the place and trimming the minimal landscaping around the front patio, we were ready. We placed an ad in the paper and waited for the crowds to rush over to rent the condo. And waited and waited. We had a few couples through and, after, four weeks and a few hundred dollars worth of ads later, we found a renter. We used the basic agreement recommended in the seminar and secured a deposit. They lasted one year and we had to repaint once again because of the mess they left behind.

The next renter was there four months before we discovered they had large dogs, which was a direct violation of the contract. It took two months to get them out and, by then, the dogs had destroyed the carpet. The whole unit had to be recarpeted at a considerable cost. The next couple left after six months and stiffed us for the final payment, leaving in the dark one night. Another renter stole our toilet. That's right, for some unknown reason, they actually stole the downstairs toilet! Vandalism, lost rent and other absurd behavior continued for five years. During that period, we had to raise the rent to cover the escalating insurance and tax rates. We could never recoup the cost of repainting, carpeting, and replacing various appliances and fixtures.

We didn't have the money or inclination to obtain any other rental properties as this loser property sapped most of our time and energy. We watched the comps in the area and the price of the condos hadn't increased in value a single dime over the course of five years. Mercifully, we got a letter from the city one day, explaining they were taking the entire complex by eminent domain to construct a freeway. We happily got back our original investment (without any profit, mind you) and left the world of investing behind us forever.

My advice to would-be investors is to have realistic expectations. Not everyone makes money in real estate. Do your homework, make sure you have deep pockets, and consider how much time, effort, and savings you'll be using up.

And, Mr. Allen, if you're reading this article, you are a terrific salesman and you taught me a valuable lesson. Albeit not the one you probably described in your book.

Jeffrey Hauser was a sales consultant for the Bell System Yellow Pages for nearly 25 years. He graduated from Pratt Institute with a BFA in Advertising and has a Master's Degree from Monmouth University. He had his own advertising agency in Scottsdale, Arizona and ran a consulting and design firm, ABC Advertising. He has authored 6 books and a novel, Pursuit of the Phoenix, available at amazon.com His latest book is, "Inside the Yellow Pages." Currently, he is the Marketing Director for http://www.thenurseschoice.com, a Health Information and Doctor Referral site.

Writen by Mark Walters

How's the real estate marketing doing? Is the huge jump in home prices that is evident in some areas symptoms of a value bubble? Good questions, yes?

Two things to keep in mind when surveying the market:

1. All real estate is local, 2. Real estate is cyclical.

Here in Arizona some residential areas have seen as much as a 30% jump in value in the last 8 to 12 months. The word about increasing Arizona home values has spread across the country. We recently sold a home to an out of state buyer who never looked at the property. His agent is just buying homes, because the buyer is sure prices will continue to escalate.

In the case of another of our houses a buyer offered $2,000 above our asking price on the day we posted a for sale sign on the property. We were asking more than we expected to get!

At the same time we received a telephone call from a relative living in California. He was very excited because his brother-in-law was sure he would get rich by buying a couple of Arizona homes. Should her do the same, he asked?

Such events have all the earmarks of a price bubble... if only in Arizona. On the other hand...

On a recent trip to Buffalo, New York, the local newspaper ran a story explaining that home sales were up. In the same article it revealed that the median price of a home had dropped. In other words, people are hurrying to buy homes that are dropping value. There's more...

Mortgage Banker's Association data shows that adjustable-rate and interest-only mortgages accounted for nearly two-thirds of mortgage originations in the second half of last year.

Loans of that type help push up housing prices, because they carry lower initial monthly payments, enabling borrowers to purchase more expensive homes. Basic economics... if more people can buy homes there is more demand... More demand means higher prices.

The rise of interest-only loans, coupled with acceptable higher debt levels for borrowers and tightened bankruptcy laws will probably soon lead to an increase in foreclosures.

If you are buying a home with an interest only loan and the value of that home drops... it is very easy for the borrower to just walk away from the payments. After all, they've built no equity in the property.

Both the Clinton and Bush administrations have pushed a policy of low interest rates and easy mortgage loan qualifying. If every voter has a home they are happy and will vote for the party in power seems to be the limit of political thought.

The truth may be that the government is setting people up for failure and financial pain. Far to many people are buying homes they really can't afford. When interest rates rise... as they surely will... all those adjustable rate loans will act like debt-traps. Interest rates will go up while wages remain stagnate. The result? More foreclosures and financial ruin for many.

There are international forces at work that will not continue to support our government's wild spending habits by buying its low interest bonds. Interest rates must rise. sooner or later?

Bubble or normal cycle... it makes little difference. If you are an investor consider selling some of your properties to raise cash for the awesome opportunities ahead. You know, buy low - sell high.

In our opinion, there is still profit opportunity if you buy at least 30% below current market value... with owner financing.

Prepare now for the coming wave of preforeclosure opportunity. We recommend the guide to preforeclosure profits you will find here http://digbig.com/4dmff

About The Author: Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com

Writen by Stoyan Raykov

According to the current Bulgarian legislation, foreigners can purchase only the leasehold, but not the freehold (the land) of a property. Therefore, all non-Bulgarians have to set up a limited company in order to purchase a property (the freehold). Even though, it might sound complicated, this is simply a vehicle to purchase the property and there are no requirements for the company to be operational. No one so far has been refused to set up a limited company, regardless of their financial or criminal record. Setting up a limited company is not required when purchasing an apartment since technically you own the leasehold only and not the freehold (the land).

The procedure of setting up a limited company takes between 3-5 weeks and costs €500 - €600. You will just have to choose a name for your company. With the business bank account application form you will also have to deposit a statutory capital of BGL3,500 (about GBP1,400), which however, upon completion of your purchase, you can withdraw back. These funds therefore will be "locked" only from the moment of the bank account application until the completion of your purchase (usually 3-4 weeks).

Once you decide you like a particular property, you make an offer and if successful you will have to put down 10% deposit with the solicitor. If you decide not to proceed with the purchase at a later stage though, your 10% deposit is not refunded. If the seller decides not to proceed with the transaction, or the results from the local searches do not allow the transaction, your deposit should be refunded to you in full. This is the standard practice in Bulgaria.

Since completion can be done only after the limited company is registered (3-4 weeks after initial application) you will have to either come back in a month's time for the completion or give your solicitor or anyone else you trust a Power of Attorney to complete the purchase on you behalf. At the completion, the remaining 90% of the agreed purchase price has to be sent to the solicitor's bank account.

Stoyan Raykov is manager of the UK-based agency http://www.bulgariaproperties.com and can be reached for further information at info@bulgariaproperties.com.

Writen by Patrick O'Connor

In the retail community, there is an ongoing discussion about consumers' lack of brand and store loyalty. Chain stores long ago took over the retail landscape, and the mom-and-pop retailer is nearly a thing of the past. Kaplan's Ben-Hur, an independent department store operating in Houston's Heights neighborhood for decades, recently closed amid rising land prices and falling revenues. In contrast, residents of the nearby Woodland Heights neighborhood were recently quoted as being overjoyed about the opening of a brand new Target nearby this summer.

Perhaps one explanation for this change is the blurring line (at least in the minds of some consumers) between discount stores and more traditional retailers. A new upscale Wal-Mart Supercenter in the Dallas suburb of Plano aims to attract those consumers who can be convinced that the term "upscale Wal- Mart" is not an oxymoron, and who are none too pleased to toss sushi in their cart alongside their diapers and economysize mouthwash. However, considering the popularity of non- "upscale" discount retailers, it appears that the new brand loyalty is price loyalty – simply buy from whoever gives you the absolute lowest price.

Is a price-obsessed public a good thing? On the one hand, few would react negatively to competition in the retail business. And we do get some great deals these days for many everyday items, but many would argue that the money we save is negligible. Will consumers' current attitudes toward retailers last for the long term? Perhaps one day soon, the public will have a change of heart, and those retailers that do not focus strictly on price will enjoy a resurgence. Then again, perhaps they won't, and it will be just a matter of time before Wal-Mart leases the vacant Galleria space.

ABSORPTION
The Houston retail market took a step back over the last quarter, posting a negative 429,215 square feet (SF) of absorption, marking the first quarter of negative absorption in 12 quarters. Still-robust construction combined with substantial move-outs, most notably Mervyn's, contributed to the negative figures. Annual absorption remains positive at over 1.5 million SF. Over the first quarter, every category except Strip Centers posted negative absorption, with Regional Malls struggling the most.

Regional Malls had their softest quarter in several years, posting -469,464 SF of absorption. Annual absorption remains in the red, at -615,188 SF. Much of the negative absorption was due to Mervyn's vacating large spaces in several regional malls, including First Colony Mall in the Far Southwest sector and The Woodlands Mall in the Far North sector. Demand for space in Community Centers further weakened, posting its second straight quarter of negative absorption, at -22,088 SF. Annual absorption totals 788,570 SF, despite losses over the last two quarters. The Far Southeast sector brought down the market with - 114,920 SF absorbed. Neighborhood Centers struggled over the first quarter as well, absorbing -84,260 SF. Annual absorption currently stands at 922,988 SF. The Near West sector showed strong demand with 33,805 SF absorbed, while the Inner Loop sector absorbed -65,993 SF. Strip Centers continued their strong performance, absorbing 146,597 SF over the quarter. This marks the 14th straight quarter of positive absorption for Strip Centers. The Far North sector was the largest contributor to the gain with 47,696 SF, while the weakest demand was recorded in the Near West sector with -10,472 SF absorbed.

OCCUPANCY
Retail occupancy fell substantially over the first quarter, losing 0.61 points and falling below 86% for the first time in two years. Average occupancy, at 85.95%, is at its lowest level in two years. Every market sector posted a decrease in occupancy, with Regional Malls taking the biggest hit, losing more than 2 points.

Regional Mall occupancy plummeted over the quarter, largely due to Mervyn's move-outs in several area malls. Average occupancy lost 2.03 points to reach 86.76%, and now stands 2.64 points below levels at this time last year. The single mall in the Far Southwest sector, First Colony Mall, suffered a drop in occupancy of nearly 8 points, and now stands at 90.10%. Community Center occupancy dipped 0.08 points over the quarter to 86.87%, its second straight decrease. However, occupancy has increased 1.52 points since this time last year. The highest occupancy is found in the South sector at 95.87%, while the lowest is reported by the Near North sector at 67.78%.

Neighborhood Centers recorded an occupancy decrease of 0.32 points to 85.40% over the last quarter, bringing the total decrease over the year to 0.44 points. None of the 13 sectors reports an occupancy currently above 90%; the Far North sector has the lowest occupancy at 78.75%. Occupancy levels at Strip Centers continued on a steady decline, decreasing 0.78 points over the quarter to 84.70%. Other than a slight increase in the 1st quarter of 2005, occupancy has decreased every quarter for two years. The South sector continues to post the highest occupancy, at 93.12%, while the lowest occupancy is found in the Far West sector, at 77.07%.

RENTAL RATES
Despite lackluster performance in absorption and occupancy over the last quarter, rental rates continued to increase, posting a $0.01 per square foot (psf) gain. At $1.59 psf, rents are $0.04 higher than levels at this time last year and are at the highest level on record. The highest rents continue to be found in close-in parts of the city, while large amounts of newly constructed centers are driving up rents in some suburban areas.

Regional Mall rents increased $0.06 over the quarter to $3.04 psf, their highest level since the 3rd quarter of 2004. The Near West sector, which includes the Galleria and Memorial City Malls, continues to post the highest rents, followed by the Far North sector, which includes The Woodlands Mall. Community Center rents posted a modest increase of $0.01 over the quarter to $1.50 psf. The Near West sector reports the highest average rents at $2.19 psf, while the Near Southeast and Near Northwest sectors have the lowest rents at $0.96 psf. Neighborhood Center rents were unchanged over the quarter, and are up $0.02 over the year to $1.14 psf. The Near West sector boasts the highest rents at $1.53 psf, followed by the Inner Loop sector with average rents at $1.50 psf.

Strip Center rents continued their steady upward climb, increasing $0.01 over the quarter to $1.13 psf. Average rents are up $0.04 from this time last year. The Inner Loop and Near West sectors report the highest average rents at $1.59 psf, while the lowest rents are found in the Near Northwest sector at $0.76 psf.

MULTITENANT RETAIL SPACE BY CATEGORY
O'Connor & Associates divides multitenant retail space into four basic categories for purposes of analysis: Regional Malls, Community Centers, Neighborhood Centers, and Strip Centers. Based on the number of retail centers and square footage, Neighborhood Centers lead other categories with 48% of the overall Greater Houston retail inventory. The second largest category is Community Centers, accounting for 25% of the overall inventory.

Patrick O'Connor, MAI, is president of O'Connor & Associates. The firm, in business since 1974, specializes in state and federal tax reduction services, real estate appraisals and research and consulting nationwide. With offices in Houston, Dallas, Los Angeles and Newport Beach, the firm employs more than 130 people. Patrick O'Connor is frequently acknowledged by national publications as a respected source of information on real estate trends.

http://www.poconnor.com/file_repository/Houston-Retail_4Q_2006.pdf