How Does Real Estate Investing Work?

Introduction

Commerical REOs and Non Performing Notes-[No MBLs] in the USA Top 150 Markets

It’s  ironic how the economy seems to be going up and down right? Well. not.  It seems that it’s going almost going down, with just a few little blips of improvement along the way.  When entering our career in real estate and Bank Finance and my sister, Valerie Adams in Corporate Marketing and Business, our mentors gave imparted investing advice that surpasses all.  From my local Bank Financial Planning CFO, advice consisted of” If you can buy real estate of any kind, do it!” He would further add the belief that property always increased in value. But how does real estate investing work and is that true?   Let’s look at some of the basics.

The first thing to understand about real estate investing is that there is a fixed amount of land available.   After all, the earth is only so big. Thus, a lot of people believe that real estate will always increase in value, and while there is some logic to that, real estate can and does decrease in value. As to how real estate investing work, there are much similarities with any other type of investing. For example,  you will do best when you buy at a low price and sell at slightly modest price; generally speaking. The trick is to know where you are on the curve of the pricing of any real estate that you are looking at.

Does Real Estate Investing Work?

You need to invest some time before you invest your money.  You should look at the area where you are considering buying the real estate.  How is, the city or neighborhood doing economically; what the demographics of the recent  sales look like , and what exactly is the acquisition pricing associated with the property within the last 3 to 6 months are they in an upswing,  or a downturn; what about surrounding property; what industries drive the local economy’ and are there any other fractures that could have an impact on real estate prices?

Of course,  at best, you can ever only make an educated and calculated evaluation.  Real estate,;vesting is still investing, which means there is some level of investment risk. The fact, the more convinced you are that a certain piece of real estate is a sure thing, the more cautious you should be.  There is no sure thing.

With that being said,  besides the occasional housing bubble, real estate tends to make a very sound investment.  At the least, you will have something to show for it.  Namely, it’s not just a piece of paper with representation of stock in the company,  but rather a physical asset that will always have some value.

Perhaps,  the right answer to, “how does real estate investing work?”. The answer; It works well, as long as you take the time to consider each purchase before you make it; and you get a mentor you who inject you into a system and knowledge.

If this article was helpful please be sure to subscribe to my blog and get updates on future article and content and LEAVE a COMMENT below.

For more information on starting a career in real estate investing or to learn how to consistently do 5-7 deals each month contact me about our Affiliate PartnerProgram.

See you at the TOP!

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com
http://www.QueensOfDamnRealEstate.com

Written by: Valerie Robinson, REI & CME & Valerie Adams, CMA., CME-Coach-Mentor

http://www.recruitlikeval.com

Em: valerie@conversionmarketingexpertz.com

Em: bigvalerie@conversionmarketingexpertz.com

CONVERSION MARKETING EXPERTS, LLC

April 12, 2019

CME-Copyrights 2019

Become An Affiliate Partner & Do More Deals!

We have 10 Spots Left! PLEASE READ THIS ALL THE WAY THROUGH!!!

Increase your business in 2019 by doing more deals. We will set you up in the zip code of your choice and feed you ready to go SFR Deals.

Co-Wholesaling has never been better. In addition, if you are newer to the industry and want to work side by side with me my team message me asap. Besides, it’s February and we can still rock and roll and end the year with a bang.

(Well I have only flipped 1400 deals right), LOL; so I can help you close more deals using an automated system.

What I need from you:

1. Commitment!!

2. Be Coach-able!!

3. Provide me a zip code of your choosing!!!

What you get from our Team:

1. Access to my team to help you get questions answered. Never lose another deal because you don’t have support!

2. Mentorship

3. We will FEED you “already done deals” to co-wholesale; as many as you are willing to work.

4. An affiliate Partner Website.

5. An automated System so you can close multiple deals each month..

6. Help building your cash buyer database for the zip code of your choice.

7. CRM Software so you can manage Your contacts, properties & deals… Automated… this is KEY!!

We are KNEE DEEP in the trenches with our partners and have no time to waste.. ONLY RESPOND if you are serious and need more help securing more deals and ARE READY NOW……

Let’s GO to work Team!! Send me a text message with the following details..

FULL NAME, ZIP CODE OF YOUR CHOICE, EMAIL ADDRESS SO I CAN GET YOU GOING WITH PAPERWORK AND GET THE DEALS COMING IN OVER THE NEXT 1 BUSINESS DAY.  (951-268-4305)…

WE ARE ONLY TAKING ON 45 AFFILIATE PARTNERS AT THIS MOMENT SO PLEASE ACT FAST…(ONE FOR EACH STATE SO WE CAN KEEP YOU FLUSH WITH BUSINESS AND SEND OUR REFERRALS TO YOU.

I will see you at the top.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com

Become An Affiliate Partner & Do More Deals!

We have 17 spots left… Please when you text me give me the zip code that you are interested in. Cheers

Valerie "The Coach" Adams

PLEASE READ THIS ALL THE WAY THROUGH!!!

Increase your business in 2019 by doing more deals. We will
set you up in the zip code of your choice and feed you ready to go SFR Deals.

Co-Wholesaling has never been better. In addition, if you
are newer to the industry and want to work side by side with me my team message
me asap. Besides, it’s February and we can still rock and roll and end the year
with a bang.

(Well I have only flipped 1400 deals right), LOL; so I can
help you close more deals using an automated system.

What I need from you:

1. Commitment!!

2. Be Coach-able!!

3. Provide me a zip code of your choosing!!!

What you get from our Team:

1. Access to my team to help you get questions answered.
Never lose another deal because you don’t have support!

2. Mentorship

3…

View original post 184 more words

Become An Affiliate Partner & Do More Deals!

PLEASE READ THIS ALL THE WAY THROUGH!!!

Increase your business in 2019 by doing more deals. We will set you up in the zip code of your choice and feed you ready to go SFR Deals.

Co-Wholesaling has never been better. In addition, if you are newer to the industry and want to work side by side with me my team message me asap. Besides, it’s February and we can still rock and roll and end the year with a bang.

(Well I have only flipped 1400 deals right), LOL; so I can help you close more deals using an automated system.

What I need from you:

1. Commitment!!

2. Be Coach-able!!

3. Provide me a zip code of your choosing!!!

What you get from our Team:

1. Access to my team to help you get questions answered. Never lose another deal because you don’t have support!

2. Mentorship

3. We will FEED you “already done deals” to co-wholesale; as many as you are willing to work.

4. An affiliate Partner Website.

5. An automated System so you can close multiple deals each month..

6. Help building your cash buyer database for the zip code of your choice.

7. CRM Software so you can manage Your contacts, properties & deals… Automated… this is KEY!!

We are KNEE DEEP in the trenches with our partners and have no time to waste.. ONLY RESPOND if you are serious and need more help securing more deals and ARE READY NOW……

Let’s GO to work Team!! Send me a text message with the following details..

FULL NAME, ZIP CODE OF YOUR CHOICE, EMAIL ADDRESS SO I CAN GET YOU GOING WITH PAPERWORK AND GET THE DEALS COMING IN OVER THE NEXT 1 BUSINESS DAY.  (951-268-4305)…

WE ARE ONLY TAKING ON 45 AFFILIATE PARTNERS AT THIS MOMENT SO PLEASE ACT FAST…(ONE FOR EACH STATE SO WE CAN KEEP YOU FLUSH WITH BUSINESS AND SEND OUR REFERRALS TO YOU.

I will see you at the top.

Valerie Adams
Valerie@ConversionMarketingExpertz.com

http://www.GetRealEstateCoaching.com

The “Real Connection” in Real Estate!! Our Bi-weekly Digest!

VRCI PRODUCTIONS & ASSOCIATES & CME    Weekly Digest of Real Estate Extraordinaire Central

We have a surprise!

Education in Real Estate  Investing 101

by Valerie Robinson, REI & CME  on January 25,2019

In the days when real estate  was “Golden”, when investors, sellers and buyers across our vast country was looking for opportunities and generally found them!   But with the transitioning that occurred in both markets, real estate had and did withstand the up and down financial and economical rigors.  Lenders and Investors both learned quite abruptly where and what the dangers were let alone their expectations on how to avoid, or handle them.  If you are just beginning to consider the idea of Entrepreneurship or idea of investing in real estate you are new investor or “newbie”and you do need some instruction to avoid losing your shirt, and probably your pants, hat and sanity, as well.

First you  will need to determine what your strategy will be in real estate investing.  Do you want to buy a property, fix it up and sell it quickly or do you want to buy a property,hold it and wait for the market to increase?  Do you want to deal with renters? All of these questions are ones that you need to answer before you invest in any piece of real estate.

THIS WEEK’S TOP STORIES

Thinking Ahead 2019

Consider what to do when ballooning consumer debt finally pops

Article Published by : American Banker, January 2019.

Commentary by: Valerie Robinson, REI & CME  on January 25,2019

Bankers are getting more concerned and worried about the rising cost of consumer delinquencies. What does this mean?  While households are managing to keep up with their loan payments, many are taking on more debt than ever. According to the banks, “Total household debt hit an all time high of $13.5 Trillion in the third quarter.”[1] Credit card and auto loans  delinquencies are seen on a downward term as seen from the Federal Reserve Bank in NYC.

The Banks have factored in the slow wage growth of the economy, the high housing costs and even the low personal saving rates among us working -class families. Is mentions how the bans can imagine  many households falling behind on their monthly bill payments even if the economy sours , or it they are faced with a sudden financial shock,divorce,unexpected major medical expense. Some will even wind up in bankruptcy. The problem with this model/scenario is that some borrowers of real estate  can wind up in deeper debt than anticipated. I’m NOT saying this is how you, the real estate investor will end up or see yourself in the years to come.

This is from the banks view regarding finance and where the economy is today and reflective of the Federal Reserve Bank of New York. Jerry L Nemorin, a former Wall Street investment banker commented as he stated,”This was during the financial crisis, and many consumers were in distress. There was no solution out there that was a  fully comprehensive solution and help work through the problems at that time”. Investors should be more savvy with knowledgeable

Education in Real Estate Investing 101

by valerie Robinson, REI & CME  on January 22,2019

There are several online sights that are helpful resources for banking, rate of interests forums and information on how to investigate Finance for yourself.  Your next step is to learn how to investigate the value of real estate properties yourself. The question we receive most is” Should you use or a real estate agent and have them show you property after property while you try to look for a good real estate investment? This question we will address and offer our opinion in our next article.

LINKS TO THIS WEEK’S ARTICLES:

The ABCs of Real Estate Investing

Let’s Talk Commercial Real Estate Shall We?

The difference Between Income Tax and Property Tax

The Benefits of Real Estate Investing!

READ MORE ON OUR WEBSITE

CONVERSION MARKETING EXPERTS,LLC

2645 Lee Road, Suite C3-130, Lithia Springs, GA 30122  

Em: valerie@conversionmarketingexpertz.com

P/T: 951.268.4305

AND

1015 S. Lincoln Avenue

Kankakee, Illinois 60901

Em: bigvalerie@conversionmarketingexpertz.com

P/T: 815-348-9707

Real Estate Investing Guide: The Difference Between Income Tax And Property Tax

Just like in any other business, real estate investing would require you to pay different kinds of taxes. Two of which are income tax and property tax. To know the twists and turns of real estate investing, you should know what these taxes are, when do you pay them and their difference.

Income Tax

As the name suggests, income tax is tax that is deducted from your income. It is charged on the financial income of people, corporations or further legal entities. There are different systems of this kind of tax coupled with different degrees of incidence. Charging this kind of tax can be proportional, progressive or regressive.

When tax is imposed on incomes of companies, then this may be called corporate tax, profit tax, or corporate income tax and if self-employed, self-employment Tax. Tax from the earnings of an individual is usually charged from his total income. But in the case of corporations, the tax is usually charged from the net income of the corporation.

In terms of real estate investing, income tax comes in when you are profiting or having income from your property. For example, you have invested in a piece of land and leased it, then you would have to pay income tax from the income you get from your rentals.

This includes your gross income or all amounts that you received as rent. Rental income is considered to be any payment that you received for the use or the occupation of your property.

However, the positive side effect of charging income tax in real estate investing is that you can deduct different expenses of renting property from your total rental income. Generally, the rule is that you deduct your rental expenses during the year in which you pay them.

Expenses that you can deduct include advertising, cleaning and maintenance, utilities, insurance, taxes, interest points, commissions, tax return preparation fees, travel expenses, rental payments and expenses on local transportation.

If you are a taxpayer under cash basis, you usually report your rental income on your return in the same year that you constructively or actually received it. You fall under this category if you report income the same year that you receive it, despite the month you earned it.

Property Tax

In real estate investing, you also pay property tax. This is also known as millage tax. Property tax is said to be an ad-valorem tax, where a property owner pays depending on the value of the property being charged.

There are basically three different kinds of property. First is land, then your improvements to the land, such as buildings; and last but not the least, personality like manmade objects that are movable.

Real property, real estate and realty are all terms used to pertain to the combination of improvements and land. In real estate investing, the taxing authority usually requires or does an appraisal of the property’s monetary value, and then tax is assessed in ratio to the value.

If you really want to get into real estate investing, then you should know what form of property tax that is used in the municipality you are investing in.

One common mistake that real estate investors make is their confusion between special assessment and property tax. These are actually two different forms of taxation. One is an ad-valorem tax, which highly relies on the property’s fair market value for justification, while the other highly depends on a special enhancement that is called a benefit for its justification.

In real estate investing, the rate of your property tax usually comes in percentage form. To calculate your property tax, you multiply the assessed value of your property with the mill rate and then divide them by one thousand.

For more information on starting a career in real estate investing contact me for an appointment to discuss. If this article was helpful please leave a comment below.

Valerie Adams
Valerie@ConversionMarketingExpertz.com