What is Real Estate

Writen by Martin Lukac

No matter if you are a seasoned real estate investor or a first-time buyer, there are some mistakes that you should watch out for.

Buying a home is a true investment. You hope that you buy low, gain value and sell high. But like any investment, there is risk. Market conditions, mortgage terms and property location will factor into how much risk you will face. Here are some common mistakes that people make when buying properties.

1. Leaping with your eyes shut

You shouldn't ever put your money into something without knowing what you are getting, where you are going and what you want out of it. You need to know what you are buying, why you are buying and what you are going to do with it. Too many people set out to "flip" a home without any idea where they are going with it.

Look to the long term, not just tomorrow. Figure out what you want to buy. Decide how long you want to own the property. Set goals and make plans. If you are investing, you better know what rate of return you want and when you will exit.

2. Thinking that investments are for the rich

Investments aren't limited to those with endless reserves of money. If you have five dollars, you can invest in something. You can buy a home without much money. You can buy an investment property without much money. There are many good loans out there that will allow you to put a limited amount of money down. But if you put little to nothing down, you must realize that you won't have as much or any equity in the home for a long time.

You will also pay a higher interest rate, a higher point and a higher monthly payment. If it's a good deal, that's great. But you have to figure out all of the dollars and cents before you get started. You want to be absolutely sure that your investment will pay you back in the long run.

3. Getting rid of a property like a hot potato

I understand the need to buy real estate and sell it as quickly as possible. After all, every month you are making a mortgage payment on the home. But in investment terms, it is often better to hang on to a property. There are added gains, tax benefits and equity. If you are smart and purchase at the right time, the appreciation of the property value could be quite nice.

4. Only looking at what is paying you now

Investments don't always pay us every day. Remember, it is a long term situation.

5. Expecting to always win

When it comes to investments, you aren't going to always win. When you calculate cash flow, appreciation, loan reduction and tax benefits, having a negative cash flow isn't necessarily bad. In the short term, you can have negative cash flows. Remember, long term...

Whether you are looking at your first home, or your fifth, you need to stay committed til the end. You have to keep your goals in mind and stick with your plan. Write down your goals and have others help keep you on track. Good Luck.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

Writen by Susan Truett

Central Illinois is an excellent location for families and businesses. Property values and local economies are growing constantly and the wide range of available properties is impressive. If you are looking for a central Illinois realtor, you will undoubtedly find a professional, experienced real estate professional that will assist you through every stage of the buying process and will do so with enthusiasm. A central Illinois realtor will take a genuine interest in helping you find the precise type of property you desire in the area you specify. You realtor will make sure you find the best price on the most exciting properties available.

Central Illinois is filled with thriving businesses and outstanding communities. A professional realtor will show you how to find the most desirable properties that will surely rise in value in the coming years. Purchasing property in central Illinois could be one of the best investments you ever make when you consider the remarkable opportunities for industry and families. Employment statistics are among the top in the country and property values are expected to continue to increase. There are many choices in employment and education, and the real estate market rivals the most desirable in the country. Realtors in central Illinois can show you numerous choices in both new homes and existing homes.

Whether you are planning to move to the central Illinois area or are a lifelong resident, a professional realtor can help you find the exact type of property you are searching for and will make sure you get the best possible price. Central Illinois realtors take pride in their professional service and take great care in helping homebuyers find exactly what they are searching for. Contact a realtor in central Illinois today and be on your way to finding just the home or property you need.

Charles & Susan Truett are the website owners of Central Illinois Realtors Online. For a comprehensive listing of Central Illinois Realtors, visit:

Central Illinois Realtors Online

Writen by Tim McGovern

There isn't a realtor in existence who wouldn't tell you that one of the most important terms that you can learn when you're trying to sell your house, is "curb appeal."

So while you're sprucing up your home, it's wise to start outside, and work your way in. Begin by a good walk around the grounds to give yourself an idea of what you're up against, and then use these tips as a sort of checklist to get yourself on the right track.

Take the time to walk around your property wearing good thick gloves, and carrying a garbage bag. Pick up every bit of refuse, yard waste, and other unsightly things, and throw them away. When the garbage is gone, then do another lap and remove all of the clutter outside. This can include things such as:

• Kids' toys

• Yard care tools (wheelbarrows, lawn mowers, weeding tools, garden hoses, etc.)

• Tools

• Bicycles

Depending on how you usually keep your property, this one effort can make a staggering difference to the outer appearance of your home.

Trim Shrubbery

Shrubbery and other greenery that has an unkempt appearance can often be misconstrued as a sign of neglect, and gives a bad impression of your house overall. Prospective homebuyers who see shrubbery that has not been well maintained may not even be aware of their observation, but it will have an impact on the way they view your property as a whole.

If they do observe the unkempt shrubbery directly, they may make the assumption that the rest of the home has not been properly maintained.

Keep bushes and shrubs neat, and well-shaped, to give the overall impression that the entire property has been well cared for.

For that added touch, try to keep the shrubbery in line with the other greenery and outdoor decorations that you have on your property. This will be even more eye-pleasing from the street level, creating more interest.

Should the size of your shrubbery be such that it makes walking up to your home a challenge, you should consider taking them out. Shrubbery that is too large not only makes the home appear much smaller, but it also creates a hazard where safety is concerned.

This may also make prospective buyers think of it as a hindrance because they'll think of it as something that will need to be taken care of; this even before they've even entered your home.

It's a very inexpensive task that you can do yourself, and it shouldn't take more than a couple of hours of your time to get done. If you don't have the time, the ability, or the inclination to trim the shrubbery, don't just let it go. This can only risk losing a lot of time and money in the long run.

Instead, consider hiring a professional. This will cost approximately $35 to $45 per hour, but it will be well worth the small investment in the end.

With a bit of luck, you'll only need to do it once before your home is sold – a one time effort that will go a very long way.

This article provided by the publishers of "45 Tips To Sell For More, FASTER!" A free copy is available at: http://45Tips.com

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Writen by Joel Greene

You may have heard all the buzz about the newest type of vacation home investment, condo hotels. These are condominiums located in four- and five-star hotels in cities like Miami, Orlando, Las Vegas and Chicago. Owners use their condos when they'd like. When not using their unit, they can place it in the hotel's rental program and receive a percentage of the revenue it generates.

How do you choose a condo hotel unit that meets your desire for a vacation home and is also likely to produce a healthy revenue and appreciate down the road? Consider the following seven questions when evaluating a condo hotels:

1. Is a condo hotel right for you?

Condo hotels are not your typical second homes. They are fabulously-furnished condominium suites in some of the most famous hotels and resorts around the country. The properties are usually large, high-rise, luxury hotels and come with premium amenities like valet, concierge and maid service. Prices can range from $250,000 to over $1 million for prime properties.

2. Is the condo hotel well-located?

Consider whether the property is located in a popular vacation destination, one that is likely to do a healthy tourist or business trade regardless of economic factors.

Also, you must be sure you yourself like the location. Does it offer you the ocean view or golf course access you always dreamed about for your vacation home? If you'll be flying to this vacation home, how close is it to a major airport?

3. Does the condo hotel have a major franchise?

The key to a successful condo hotel investment is the hotel operator. The better the operator and the franchise, the more likely the success of the property.

A condo hotel with a name brand like Ritz-Carlton, Hilton, Starwood or Trump is likely to generate more revenue than a non-brand because it can charge higher room rates and benefit from international advertising and a centralized reservation system.

4. Will the condo hotel receive traffic from any nearby attractions or entertainment venues?

A condo hotel that is near a convention center, a theme park or cruise port will benefit from proximity to these high-traffic venues.

5. Does the condo hotel have any on-site amenities that will draw guests such as a well-known health club, spa, fine dining restaurant or golf course?

You'll want to choose a condo hotel that has amenities you'll enjoy using and also are a draw to attract hotel guests.

6. Does the individual unit that you're considering in a condo hotel meet your needs?

Does it have enough bedrooms, enough square footage? Does it have a kitchen? (Some do, some don't.) Does it offer an appealing view? Is it furnished to meet your tastes? Does it offer any owner storage?

7. Will the condo hotel unit appreciate?

While personal enjoyment should be your primary reason for considering a condo hotel purchase, it's certainly worth thinking about whether the property you want has good appreciation potential.

Look at surrounding properties and area appreciation rates. Does the condo hotel have lots of competition? Is it different or better than area properties? How has the demand been since the property first came on the market?

A realtor who specializes in condo hotels and is familiar with the area in which you're looking can often help you determine if the condo hotel you're considering has good appreciation potential.

By Joel Greene
President, Condo Hotel Center, www.CondoHotelCenter.com

About the Author:
Joel Greene is the president of Condo Hotel Center in Miami, Florida. Visit his website at http://www.CondoHotelCenter.com which is a clearinghouse for listings, information, and photos of condo hotels. At his website you can sign up for his Property Alert newsletter which notifies readers of new condo hotel properties coming on the market and provides useful information about condo hotel developers and trends.

Writen by Marc Rasmussen

A summer place in the North Carolina mountains, a winter place in sunny Sarasota, Florida. Wouldn't you like a fabulous retreat in the mountains or near the beach? More and more people are buying second homes for vacation and future retirements.

I sell real estate in the resort town of Sarasota, Florida. Many of my clients are second home buyers. Many of them purchased condos on the beach, on a golf course or just a nice single family home in town. So I deal with second home buyers often. Obviously, I make money from these people so I am in favor of people buying a 2nd home but it is not for everyone.

Desireable second homes are expensive. Make sure it fits into your budget. In Sarasota, there are no desireable properties that pay for themselves if you obtain a mortgage to purchase the property. The rental rates do not cover all of the expensive. You must know going in that it will be an expense. Decide if the expense is manageable.

A property that does not pay for itself is pretty typical in Florida. Do the research on where ever you plan to buy to find out what a property will rent for in relation to the cost of the property. I doubt you will find too many places that cover all of the expenses.

Make sure you will have time to use a second home. With the time constraints of life, you might not use it as much as you hope. I have a friend who works all of the time and has very little free time. He wanted to buy a mountain house in North Carolina. I asked him when did he plan to use it. It dawned on him that he would maybe use it once a year. So he purchase a weekend waterfront retreat within 45 minutes of his home. This way he can use the house when he has free weekends. He has been up there every weekend for the last 3 months.

Compare the cost of renting versus the cost of buying. Let's say you are retired and plan to use a winter getaway for 3 months. Here in Sarasota you can rent a nice place for $3,000 - $5,000 a month. That is $9,000 to $15,000 for a 3 month vacation. Now compare this with the cost of owning. When you own property you have to pay for property taxes, home owners insurance if you have a mortgage, principle and interest payments on the mortgage if you obtain one, maintenance and repairs. All of these costs will vary according to the price of the property you purchase but they will be more than just renting.

Second home owners make money when real estate prices go up, renters lose out. Recently, real estate prices have gone through the roof in many parts of the country. Sarasota real estate prices have had many years of price increases over 30%. Can you imagine if you purchased a second home during this recent real estate price boom? Many of my clients have made hundreds of thousands of dollars in appreciation. That pays for many years of negative cash flows. As a renter you will miss out on any property appreciation.

Even if prices are rising by a modest 5-10% a year that is still a pretty good return on something you can actually enjoy. You can't really enjoy the use of a stock or bond but you can with a second home.

In a nutshell ask yourself 3 simple questions:

Can I really afford it?
Will I use a 2nd home often enough?
If I decide to only rent am I ok with missing out on real estate appreciation?

Marc Rasmussen sells real estate in Sarasota, Florida. For more information on Marc visit Sarasota Real Estate

Writen by Christine Hancock

It's a dream we all have to own our own home and stop paying rent. But if you're like most renters, you feel trapped within the walls of a house or apartment that doesn't feel like yours. How could it when you're not even permitted to bang in a nail or two without a hassle. You feel like you're stuck in the renter's rut with no way of rising up out of it and owning your own home.

Don't Feel Trapped Anymore, It doesn't matter how long you've been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can, save for a down payment, stop lining your landlord's pockets, and stop wasting thousands of dollars on rent.

6 Little Known Facts That Can Help You Buy Your First Home

The problem that most renters face isn't your ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a down payment on something more permanent.

But saving for this lump sum doesn't have to be as difficult as you might think. Consider the following 6 important points...

You can buy a home with much less down than you think

There are some local or federal government programs (such as 1st time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options.

You may be able to get your lender to help you with your down payment and closing costs

Even if you do not have enough cash for a down-payment, if you are debt-free, and own an asset free and clear (such as a car for example), your lending institution may be able to lend you the down-payment for your home by securing it against this asset.

You may be able to find a seller to help you buy and finance your home Some sellers may be willing to hold a second mortgage for you as a seller take-back. In this case, the seller becomes your lending institution. Instead of paying this seller a lump-sum full amount for his or her home, you would pay monthly mortgage installments.

You may be able to create a cash down payment without actually going into debt

By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a down-payment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end.

You can buy a home even if you have problems with your credit rating If you can come up with more than the minimum down-payment, or can secure the loan with other equity, many lend-ing institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation.

You can, and should, get pre-approved for a home loan before you go looking for a home

Pre-approval is easy, and can give you complete peace-of-mind when shop-ping for your home. Mortgage experts can obtain written pre-approval for you at no cost and no obligation, and it can all be done quite easily over-the-phone. More than just a verbal approval from your lending institution, a written pre-approval is as good as money in the bank. It entails a completed credit application, and a certificate which guarantees you a mortgage to the specified level when you find the home you're looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mort-gage, and being stuck in the renter's rut forever.

Typically there is no cost or obligation to enquire.

There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when with your agent you could take a few minutes to discuss your specific needs so that you can stop renting and start owning. This conversation costs you nothing. And, of course, you shouldn't have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you'll be when you are ready to make this important step.

Christine Hancock
http://www.getanewhome.net

Christine began her real estate career proving herself a top producer on a new high rise development. This experience gave her valuable knowledge of construction as well as the buying process and resulted in 4-million dollars in sales during her first year.

Writen by Steven Gillman

What if you want better cash flow from your rental properties? You can't just raise the rents arbitrarily. If tenants leave, income goes down, not up. There are other ways, though, including the ones listed below.

1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you can find a company that will do it for you, and share the income with you.

2. Rent extra parking space. When I got tired of a renter's extra car, I just started charging a weekly fee. Then I didn't mind so much.

3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar units. Are you renting at below-market rates?

4. Rent storage sheds. Especially if your apartments are small, your renters may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property.

5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others.

6. Offer improvements for rent increases. If it's worth $25 more monthly rent to a tenant, install that dishwasher. Even on a credit card you'll pay less than that per month for it.

7. Install vending machines. If your rental properties are large enough, others will do this for you for free, and give you a share of the income.

8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in college towns. It does mean a lot of management, however.

9. Rent-to-own sale. Usually there's a non-refundable deposit, and higher than market rents in these deals. When renters change their minds, as they often do, you got the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process.

10. Reduce expenses. Every dollar of expense you cut goes straight to the bottom line. List every expense of your rental properties, and look at them one at a time. How can you reduce them?

Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com