Category: Relevant Information/Tips

Simple Ways to Invest in Property

Real estate is known to be great way to make passive income, whether you decide to invest in an individual or commercial property. Once you buy the necessary property, you can then sit back and wait for your tenants to pay the rental income every month. If you have been investing in properties for quite a while now, though, you should know that this isn’t actually as easy as it looks or sounds. Want to get a quick inspiration? Watch this video from the master himself– Robert Kiyosaki. He gives us six steps on how to invest on real estate propety. Here’s the vid– watch and learn.

Robert Kiyosaki’s Six Steps to Real Estate Investment

Investing in property isn’t just about finding the ideal place that your family can call home or reading about tips on how to do so. You have to learn about all of the different ways, in which you can invest in real estate, as well. Here they are for your perusal:

 Rental

After buying a house, you have the option to rent it out to a tenant. Since you are still the landlord of the place, though, it would be your full responsibility to take care of paying the mortgage, the taxes and any other costs that will need to be paid for the property’s overall maintenance. As such, it would be important for you to set a rental fee that is enough to cover these maintenance costs.

If you want to gain some profit every month, you can charge a bit more, as well. However, it would be ideal to be patient and just charge the minimal cost to your tenants to cover the expenses until the outstanding mortgage is completely paid off. After that, you can then reap the most profits from the rent as you can.

Investment Groups

If becoming a landlord isn’t exactly a part of your goals, but you are still interested in owning a rental property anyway, then an investment group might work well for you. There are a lot of investment groups in Kuala Lumpur, so I’m sure you’d be able to find one. They can help you decide if it’s finally time to invest on this very nice apartment in Mont Kiara, or wait just a little longer. đŸ˜€

Some companies tend to construct or buy residential units to sell to investors through their company. In these cases, the companies will still be in charge of each unit’s maintenance, including the advertising and scouting for tenants. The regular kinds of investment groups list these lists under the names of the investors and then take a portion of the rent every month in exchange for the unit or the building’s overall management.

Trading

Also called “hold and buy” or property flipping, some traders will purchase properties and then hold onto them until the market shows good potential for the property. Although this cash investment is very lucrative for the short term, it could fail, as well, if a flipper isn’t able to unload the property when the market turns in the end.

Overall, you can’t expect to succeed in real estate investing without putting any hard work into it. However, with enough effort and time in setting up a property, you could end up having a smooth and easy ride when it comes to your renting business. Naturally, it would help to get an experienced investor help you out in coming up with a good investment plan, as well, so that you can avoid the numerous mistakes that other people tend to make in the world of real estate investments.

I Want to Sell My House But I Have an Outstanding Mortgage!

Hello readers, Chester here back in action. Pardon the delay in writing stuff in here for a long time, things have been pretty hectic here at the office that it gets crazy.

About a month ago our Iowa office was paid a visit by a Malaysian green card holder who was asking for our advice. After our long chit-chat I found out that he is a bigtime businessman in Kuala Lumpur and has invested in a lot of condominiums(his raves about The Troika are tempting me to hop on the next plane to Malaysia and get one unit immediately).. Okay, going out of context. So.. I found out that he wants to sell his Des Moine house but his concerns center around the fact that he has an outstanding mortgage. His problem is really common– so I realized it’s best to write about it here so that many of you who face the same problem will get some answers.

It’s Okay to Sell Your House.

There are many reasons why we would have to go out to measures as extreme as selling our homes. It could either be because the home has lost its market value or because we could not possibly pay off the monthly amortization or clear off the debt any longer. Or for whatever reason of selling a house, the outstanding mortgage on it will make it impossible.

Steps

The first thing to do in this situation is go to your money lender and discuss your options. No current mortgage plans anywhere would allow you to sell your house and because the lender is the only person who has the power to adjust it, it would only be logical for you to go and talk to them about it.

So suppose your lender allows you to sell the house, what do you do? That depends on how much the house will sell, how you can increase its market appraisal, and how much capacity you have to pay off the remaining loan.

Selling, Short Sales, and Foreclosure

Selling your house at an amount that can possibly pay off the remaining amount in your loan is ideal and quite frankly, rare. Selling the house at a price that can pay off your remaining loan and get a little extra will require you to pay your capital gains tax. But these are far too ideal and does not come off without a hitch or big investment on upping your house’s current market value.

Commonly, homeowners with a lot of extra money sell the house even at a price that could not erase the loan altogether. Because they can, they simply pay off the remaining balance with their own money and just move on to their next house or hunt for their next apartment.

But that’s not always the case. That’s why there is such a thing as a short sale. A short sale is when the lender allows you, the homeowner, to sell the house at an amount that’s lower than the remaining amount on the mortgage loan. This happens when the lender understands that the real estate market is in itself less than ideal. Over foreclosures, lenders prefer short sales because they can still try to get as close to their ideal price (which is close to the remaining balance on the mortgage). In foreclosures, they have less control on the amount because foreclosed properties end up in auction.

Learned a lot? Let The Action! Real Estate Blog educate you further. Check back next time đŸ™‚

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