Real Estate Business Without Pleasure

Here’s a short list in which many investors are utilizing to close the deal on real estate investments day in and day out. Would you like to get your hands on it? Well below you’ll find the list in which many potential investors would kill for or you ready to do the same?

Winging It – virtually every real estate course made available online or in the offices of real estate investors advises potential investors to practice the “fake it, ’til you make it” strategy and to just go with the flow even without a plan. This is one of the many ways so many people are swindled out of hundreds and thousands, and sometimes millions of dollars. You never want to go into a business without a plan.

The Absence of a Professional Team – if you’re seriously considering breaking into the business of real estate; good luck. The important thing to remember is to not go at it alone. It’s important that you build a team of professional that have your best interest at heart. This may be difficult from the offset but with research and information it can be accomplished.

Breaking the Bank on a Deal – never enter into a business deal with the intent of purchasing a home without first knowing the worth of the property. There’s never a bad time to invest in real estate regardless of what the media is saying.

Building Business Entities without Your Name – to many people end up losing everything they own for this very reason, don’t become a victim of this. If you’re in the business of gambling, it would be best to go to Las Vegas. It’s important that you do extensive research in order to get a better understanding of how corporate entities work.

The Wild, Wild West Mentality – if you’re under the impression that you can do whatever you like when facing homeowners in dire need, it would be best to take a look in the mirror and rethink your assumptions. It’s all about following the rules if you want to be successful in this line of work.

Title Researching or Not – this can lead you into an abyss with no possible way of getting out. Title searching is important and should not be taken lightly, so it would be smart of anyone investing time, money and life into real estate to learn how to search titles wherever necessary.

Cash Reservations – in the real estate business it will always be about the money, no matter what. It’s not always about using your money to find deals, land deals or close deals; however, it will always take money to make money in real estate regardless of what anyone may say.

Your Education Should Not Go Ignored – education has always been the gateway to success and it doesn’t change in the business of real estate, and education should not be based upon some infomercial you saw last night. Educating yourself can come in various forms but don’t waste money on education that you could be using for handling deals. Too many people spend hundreds and thousands of dollars on real estate classes only to have nothing to show for it. Let your education speak for itself through the closing of MASSIVE DEALS.

Crunching the Numbers Correctly – this is one way many people learn the hard way about real estate investing because they end up misjudging either their purchase figures or their fixer up and/or holding cash. This is one mistake that could end your career before it even gets started.

Last but not least, it goes without saying, real estate is not a get rich scheme – GO FIGURE!

Real Estate Development – Ways to Avoid Costly Mistakes During Property Development Construction!

Once the building contractor is on site and the project is underway – it really is an amazing feeling when you start to see your real estate development project start coming up out of the ground.

Where a developer is planning to sell some or all of the units, marketing activity starts the moment finance is secured. The construction phase is usually the most expensive, therefore we carefully manage the project during this stage.

We schedule regular site meetings with our Building Contractor, typically every week or two, to discuss any queries or potential problems and we make sure our Building Contractor has fulfilled their Occupational Health and Safety (OHS) obligations fully.

Remember that it’s the Building Contractor (not the Owner or the Architect) who represent themselves as the expert on erecting buildings. Therefore it’s never a good idea to tell the Building Contractor how to build the building instead we instruct the builder as to the desired result to be achieved, not how to achieve it.

We pay our Building Contractor progressively, either monthly or at the completion of each scheduled construction stage, using draw-downs from the construction loan.

It is not unusual for the Building Contractor’s claim for completed works to vary from their schedule so it is important to make payments only to the value of the completed work.

Some real estate developers appoint an independent building inspector to review the quality and amount of work at each progress payment stage as this sends a message to the Building Contractor to be on the ball. This could be your Architect or you can find a good Building Inspector from the Master Builders Association in your area.

We try not to make changes after construction has started, as they usually end up being costly, and delay the completion date. If changes are necessary to the original contract scope of works or finishes, we request the Building Contractor advise us in writing what the variation to the original contract sum and the delay time will be so we can approve it BEFORE he makes any changes.

Before the handover at final completion, we have a joint inspection of the project with our Building Contractor (we also recommend with the architect and/or building inspector present). A list is made of all the defects and problems that need to be fixed by the builder before the building is officially handed over.

Simply, the developer’s aim under the contract with the building contractor, is to produce the designed building on time, within budget and at the quality standard that has been specified.

Therefore, during the construction stage, it is essential that a savvy developer (or their appointed project manager) monitor the progress and cost of the construction work to ensure that the project is delivered on-schedule and on-budget.

Any time extension from the plan/schedule or variation in cost will potentially affect the profitability of the property development project.

The building contract generally will detail the developers/owners responsibilities. Depending on the contract chosen, these responsibilities will typically include:

* to ensure adequate access to the building site

* to pay progress payments promptly

* to insure the completed project, after practical completion

DELAYS AND EXTENSIONS OF TIME

These are many reasons why delays occur during the construction stage, causing the late completion of the project. Many of these reasons are outside of the contractors control and some of the most common of these include:

* bad weather

* a delay in receiving necessary information from the developer or the consultants

* technical problems

* industrial disputes

Most standard building contracts will allow the builder to clain an “Extension of Time”, for delays caused by factors outside of their control. The practical effect of these extensions is to adjust the Completion Date that was agreed in the contract.

However, where the building contractor is responsible for the delays, either through a lack of programming or for any other reason, the building contract will frequently include for the payment of Liquidated Damages to the developer.

In these circumstances, where the project is delayed beyond the Completion Date noted in the contract, allowing for any extensions of time, the final payments to the contractor will be adjusted for liquidated damages, in the amounts stated in the contract, for each day the completion is delayed.

RISKS DURING CONSTRUCTION FOR A DEVELOPER

As the construction phase is usually the most expensive stage of the entire property development process, and the period that a developer will typically have the greatest negative cash-flow, we continue to carefully manage the project during this stage.

The construction stage can have the greatest potential effect on the final construction cost and the timing of the project. As even short delays or relatively small changes in the cost of the construction can have a detrimental effect on the profitability of the project we recognise this stage as a time of potentially significant risk to the development project.

The risks, during the construction stage, that we are particularly conscious of include:

* the contractor is unable to complete the project

* the completion of the construction is delayed

* the costs of the construction increases significantly

* unacceptable standard of building work

Why Should I Invest My Money in Real Estate Business?

Now a days we can see the trend of investing money in real estate business is increasing day by day. It ranges from acquiring one small house or plot to acquiring a big estate. Nowadays we can see the presence of top level companies in real estate business in addition to ordinary buyer. It shows how important this real estate business in current world. None of the big players neglect the importance of real-estate industry. There are many factors behind the success of this business. Some of them are:

1. More safety for your investment

2. Price of land and properties will always go high

3. Investing in real estate is like increasing assets

4. Low risk business compared to many other investment

Real-estate seems to be low risky business compared to other major investments. Let us consider the share market business. Investing money in share market is high risky. We cannot predict the exact income generated from share marketing due to the high volatile nature of the business. If we are lucky we will be able to get a good amount from share market business. If we are unlucky we may face a big lose of money. Real-estate business do not have such a risk. We can expect a minimum money back guaranty in real-estate business. It is because of some characters of real-estate industry. Properties we acquire are solid and not a paper money like in share market. It is an asset which too can contribute additional income.

If we invest our money in purchasing a building, it is the process of acquiring additional asset. Even if we do not sell this building to a different person we can get rent from it. It is an additional source of income in addition to an investment for future business. In addition to this, market value of a building and land will always go high. So we can always expect more by investing our money in real-estate industry. This feature make our business a low risky one.

It is important to know the basic trends in real-estate before investing your money in it. You should not invest your money in a business without knowing the pulse and trend of it. So if you are seriously planning to invest your money in buying land and building, you may consider the advice from the experts in the field. There are many local consultancies which are ready to guide to properly and advice to how and when you should invest your money.