Your Questions About Investing In Real Estate

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Richard asks…

How can I get started with real estate investing.?

I have no money and poor credit. Is there really ways to get started in real estate investing with this situation. Also how do the tax sales in illinois and wisconsin work?

financi4 answers:

Check out real estate investment trusts and read articles on Yahoo Finance

Thomas asks…

where/how can I register a business in Canada strictly for real estate investing liability protection?

I am looking to expand real estate investing into a more full time business, so I would like to register a business, but for my personal asset protection only. I will not have office space or employees so I don’t need a fancy business registration; I am only looking for help in setting up an LLC or something similiar to be operated from Canada, with the majority of my real estate deals in the USA.

Based on that- registering a business name basically for liability protection, and to be operated from Canada but with deals found in the USA- can someone give me some advice or point me in the right direction on registering cheaply and with low fees (maybe online?) either an LLC or something similiar in Canada that I can use in the USA and also Canada simply for my personal asset protection from being sued? Alternatively, can I register an LLC in a random state- but use it nationwide and in Canada- and operate it from my home in Vancouver, Canada? Thanks everyone.

financi4 answers:

Nevada and hire an experienced lawyer to do it. You will be most happy at tax time> !

David asks…

Can anybody give some advice on investing in real estate?

Im so eager to begin investing in real estate but i feel like there’s things holding me back. I plan on going to a university far from home so that’s one. I’ young (20) and i have a job but i dont think a bank will finance me. I stay with my parents. I was planning on getting everything settled now so when i do leave for a university i’ll be able to be approved for a mortgage on a condo then wait a couple years to build equity give me some advice please

financi4 answers:

Keeping your credit pristine is JOB # 1. That means paying all your bills on time every month without exception. When it comes time to leave school and get a job lenders will be able to see you are a type of person who pays off their debt each month and will happily offer you a loan that you can pay back based upon how much money you receive from your job. In the mean time try to save as much as you can but still enjoy yourself!

Joseph asks…

Should I not waste my time doing the stock market/real estate investing?

I’m making 90k per year after taxes, and I’m only 25. Should i just invest it in CDs and 401k? I want to retire around age 45 and travel around the world and just have fun. Also i’m not a big spender expensive stuff, i drive a used car, and live in an apartment, would the stock market real estate investing just be a waste of time for me?

financi4 answers:

What do you do for work?
I’d invest in real estate if I was you.buy foreclosures/short sales.rent them out.then sell them all in 20 yrs.

If you buy 10 condos at 30k and make a 400 dollar profit a month on each you will make 4000 a month off renting them.then in ten years you sell them at 100k each or more and make 1million plus.

In 10 years you will make 500k off of rental profits and 1mill off of selling the units.

So a 300k investment will get you 1.5 million.

Michael asks…

Should I incorporate in Delaware or my home state (NY) for my real estate investing business?

When it comes to incorporating my new real estate investing business, are there any hurdles to being incorporated out of my home state (NY) that I need to be aware of? I’d like be incorporated in Delaware.

financi4 answers:

You should incorporate in the state your going to be doing business in. You can get everything you need to incorporate your business at – http://www.legalformsbank.biz/ – under your state’s corporations category.

Ken asks…

Which Is A Better Real Estate Investing Strategy, Wholesaling Or Rehabbing?

I want to start investing in real estate and I don’t know if I should wholesale properties or rehab the properties and sell them fixed up to end buyers.

Oh ya..I’m pretty much broke right now..:)

financi4 answers:

Yep do like the guy before me said,, Know several people that thought flipping was the way to go.. Now broke and loosing most of what they made in the good times.

If you don’t have any money then you have to use your time, which mean rehab.. For a few times to accualate the starting capital for expantion Buying fofr rent is great too…

Yep rentals are tough for all the head aches you have, but you know I did it that way, and sit back now in a 6500 sq ft home and all properties paid for and a good monthly income without doing anything except show a few houses each month, I have a full time helper and very few worries.

BUT For years i saved every penny and worked my butt off day and night to get where I am now.. So I will tell you right now,, Without a bundle to start Figure on doing a lot of work Yourself

I do not have a website where I am trying to sell you anything

Mark asks…

Real Estate Investing / Owning Rental Property – How do I get Started?

I am very interested in making money in real estate. I would like to learn what, if any, difference there is between real esate investing, and owning rental property. Also, how do I get started and make a profit rather than messing up the process and losing my money? I’d really like to hear from experienced people who have made money doing these things and find out how they did it, how they learned the business, etc.

financi4 answers:

To make money renting real estate, you need to know what real estae is renting for and what the costs are. In our area, the costs of real estate are way too high for the rental market, and I won’t invest, here anyway. A good real estate agent who has experience in commercial transactions can help you there.

In a good market, you need to make more money on rents than what your mortgage will cost, plus any repair costs. You also need to factor in vacancy rates. If your type of property has a 20% vacancy rate (or in some markets, it’s the reverse and is called the occupancy rate which, in this case, would be 80%), that needs to be factored in to your costs, as that will mean that 20% of the time, you won’t have rents coming in.

If you’re really flush with cash, it doesn’t matter much what kind of property you invest in. ALL real estate is an investment. The home you buy to live in, the apartment building you buy to rent out, or the commercial building you buy to have your business in or to rent out. It’s all an investment, because once your property is depreciated out, you’ll want to sell it. Depreciation is usually only a factor in commercial and/or rental properties because you’re getting an income off of it.

If you’re not so flush with cash, a really good way to get started in renting property is to purchase a duplex and live in one side and rent out the other. I started out this way and it’s nice to get almost enough rent to cover your mortgage. That way, you can live there almost for free!

There are headaches involved with renting. Some people will tear the place up, inside and out. (Ask for hefty, or at least adequate, deposits for cleaning and damages.) The duplex situation is good, in that you’re living right next door. People will be less likely to abuse your property if you are on the premises.

It can be difficult to find good renters. If you have property on the poor side of town, it will be more difficult to keep good renters, if and when you do find them. Don’t purchase property in a neighborhood where there is garffiti. The graffiti is an indicator for crime levels. Just bad all the way around. Don’t go there. Get the best place you can afford in a better neighborhood.

There’s money to be made in just purchasing a fixer upper. Buy a run down property in a nice neighborhood, fix it up and resell it for a fat profit.

I’ve done all of the above, and I’ve always made money. I’ve never had to take a loss, because real estate is almost a no lose investment.

Right now, some of the markets are over valued, and it may not be a good time to purchase a very high end property. But you can’t go wrong with a starter home, the kind that will be a first home for a young couple. They are always in demand.

Those are some high points. There can be a lot of complexity to buying commercial real estate. Find a good realtor who has experience in commercial sales. They can help you find something that will give you a profit after all expenses are paid. Most investors look for a minimum of 12% profit per annum. (Of course, more is better, but that’s a minimum to shoot for).

There are also some REITs out there that can be a way to go. (Real Estate Investment Trusts).

Other than that there are some investment gurus that can give you an education on how to invest, what to look for, what to avoid, etc. Ron LeGrand and his group are very knowledgeable and pretty accurate.

Best wishes in your endeavors.

John asks…

What is the Fastest way to get Rich by Investing in Real Estate in Canada, and U.S?

Real Estate Investing.

financi4 answers:

Buy for a low price and sell for a high price 😉

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