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Steps Which You Need To Follow Once You Have Decided to Buy an Investment Property

Steps Which You Need To Follow Once You Have Decided to Buy an Investment Property

Nobody knew about the personal struggle and the sleep-depriving process that you had to go through before arriving with the final decision to invest in real estate. You only know that it’s the best decision that you’ve made! All the pros and cons you weighed, all the risks you were willing to take finally led you to this moment.

Buy Investment Property: Top 10 Steps To Follow

Now that you’re done with all the difficulty of settling, brace yourself now for what’s about to happen next. But don’t worry; you won’t go down that path without a light. Here are some helpful steps that you need to follow after deciding to buy an investment property.

Step 1. Enjoy your property

A lot of real estate investors almost immediately rent out or sell their property after buying them. That might seem like a convenient choice for some, but for professionals, they tend to look at the big picture first, which is this: enjoy the property for at least a couple of years and then do whatever you want with it once you have accumulated enough wealth and are financially equipped to live somewhere new.

Step 2. Remember your beginning

As you go through this whole process of buying an investment property, it’s normal to have some cases of wanting to go back or canceling everything. The thing here is to remember your beginning – your why – the reason why you started and the reason why you said yes. Remember your “end game,” your primary motivation in diving into the deep abyss of real estate. Then you will be able to strategize and outline your plan, your next move.

Step 3. Find your real estate “wingman”

You can actually buy your own property without the help of a mentor but always consider that even kings have their own adviser. If you’re a strong, independent person who can take on the real estate world on your own, you might want to skip to step 4. But if you’re new to this business and you would want to hear a professional’s opinion to objectively help you out, then this step is crucial for you. It’s important to have a mentor who sees what you see; who knows what you want to do and helps you to achieve that. Be sure to choose someone whom you respect and has a legit experience in the type of real estate investing that you’re venturing.

Step 4. Consider your financial status

One of the most important factors of investing is your finances. You have to consider very carefully and seriously that buying a property is equally important as finding the right property. If your investment doesn’t go well as planned, which is very unlikely by the way, you have to make sure that you can still land on your both feet. For example if you want to join small investors in larger projects, you have to make sure that it won’t cause you any serious damage, when thinking about worst case scenarios.

Step 5. Do some calculations

You have already done the math when you had the idea about the kind of property you to invest in, and the mortgage that you can afford. Everybody knows that you shouldn’t dive down deep waters if you don’t know how to swim; in the same way, you can’t barge into the real estate world without doing the proper math first. You need to educate yourself with the expenses, income, cash flow, etc. so you will know where your money goes and how it reaches you.

Step 6. Put your plans into actions

Whatever kind of decision you have made, whether you want to invest in new home construction or other properties, it is vital to exercise your plans. It is the outcome of vigorous researching and thinking that led to your specific goals and plan; it’s important that you stick to them so you won’t get lost. Always remember that real estate investment is not a hobby which you can tolerate impulsive behaviors. It is a business and you must treat it as such. Only make decisions that could help propel you upwards rather than pull you down.

Step 7. Connect with local investors

Nobody is an island – this principle applies fittingly to the real estate world. Don’t isolate yourself from the outside world and stop thinking that you can do this all by yourself because, honestly, you need to hear other people’s story as a head’s up of what will happen in the future as they have probably encountered that same situation before. Reach out to other local investors and build relationships with them. That is one way of learning as a beginner real estate investor. Learn from the experiences of successful investors and try to get a few tips from them whenever you can.

Step 8. Find listings

This is the most exciting part in buying an investment property – shopping for it. There are also a lot of ways for you to find the perfect property you want to purchase. There’s websites online where you can find listings, or you can contact brokers or agents in the area you are searching. It’s very important to find an agent who knows the area full well and is well-acquainted with what you’re looking for.

Step 9. Understand the risk you can tolerate

The risk you are willing to take indicates the kind of strategy you are going to use. You have to understand your own attitude because your strategy will reflect it perfectly. Of course, you never take risks without having the pros and cons in mind; especially when you know which side weighs more. When you’re fully ready to take the risk you can take, you’re more than ready to purchase.

Step 10. Assert an offer

After finding the investment property that qualifies everything on your list, you now have to make an offer. Of course, before doing so, you have to make sure that you have clarifies all necessary details big and small to avoid unwanted regrets. Be sure that you only spend the amount that you are capable of which meets your standards. Don’t be fooled by your emotions, again, real estate is business, so treat it as such, leave emotional ties behind.

After going through all these steps, you are now ready, more than ever, to make your purchase and let yourself in the world of real estate investments. Remember, there’s no backing out now, only moving forward! If you find these steps helpful, share it with your fellow investors. You can also share the personal steps you’ve taken after deciding to buy an investment property.

Why Real Estate Is The Best Way To Make Money

Why Real Estate Is The Best Way To Make Money

Maybe at least a few times in your life, you’ve wished to be rich or at least to make money the best way possible. I mean, who haven’t? Perhaps that thought still lingers at the back of your mind that’s why you clicked this article. Apparently, there are many ways to make money. You can work full time, or work several part time jobs, engage on a business, invest in stocks, invest in real estate, etc and the list goes on.

However, these days, real estate investing has been growing in terms of popularity and significance over the years.

Real Estate: One Best Way to Make Money

No wonder why the wealthy are seriously focused on real estate investments. Investing in real estate has a lot of advantages over other means of gaining wealth. Here are the reasons why:

  • Provides deduction of taxes

A lot of things from your investment in real estate budget are tax deductible. This may include, but not limited to, the interest, legal fees, depreciation, travel, repairs, insurance, supplies, association and condo fees, etc. However, this will ensure that you will save a good portion of your money from taxes so you can spend it on other things.

  • You can work in the comfort of your home

You will never have to compromise quality time with your family again. They won’t accuse you of working too much or staying too late at the office. Investing in real estate can be a full time job where you can work in an office or at home – your choice. However, in some cases, as an investor you might not be at home all the time because you need to visit properties, or go to the bank, or manage your rental properties. However, you can reduce these workloads by having a professional property management that would help you do the hard work.

  • You can make use of many real estate investment tools

As a real estate investor, you have an advantage over investment tools that you can use to help you find the best investment property and pay for it in the most convenient way in order to manage it well and decide what to do next in the moments to come. Private Money Loan Investing is also a great way to invest in real estate. This type of lending fills a need in financing that is more lenient on the qualifying, more diverse and acceptable to more complex transactions than traditional institutional bank type funding.

  • You can gain knowledge from resources.

Investing in real estate is one way of gaining knowledge and experiences when it comes to making money. Of course you just don’t dive into something without knowing about it first. Reading articles – such as this one – or newspapers, magazines, surfing websites, downloading mobile apps, taking real estate classes, meeting other investors and such can really help you learn a few things or two. As you can see, there are a lot of resources you can choose from.

  • Minimum background knowledge is enough.

You don’t have to be a genius or a professional before starting in real estate investments. In fact, that’s where all professionals started – at the beginning. You may be afraid to take the first step but you have to remember, it’s only hard at the beginning; it’ll only get better from there. You just really have to be willing to take risk and go on an adventure with new opportunities by expanding your perspectives in making profit. Real estate investing is not rocket science. It’s easy to learn as you go along. For example in Passive Real Estate Investing, investors can expect annual interest returns from conservative ranging from 5-7% to aggressive in the 8-12% range. That’s not too hard to understand, is it? You just have to learn the jargons and terms and calculations used in this field of work.

  • Grows over time

Investing in real estate is like a living business. It’s living because it grows overtime. There are a lot of opportunities that give investors like you different growth strategies to expand your territories, much like a king. Having multiple properties provides you multiple income, thus earning more and more than you ever did the years before.

  • Multiple investments is possible.

Whether you invest in real estate or prefer to invest in new home construction, you can easily generate more income in a shorter period of time. The real estate business has got an arsenal of opportunities for investors like you to earn more wealth in the best possible way. On the other hand, construction loans are usually short-term loans but you can always talk to experts as to how their funding program can suit your needs.

  • Provides tons of options

There are many faces to real estate investments. They come in the form of residential or commercial, urban or rural; in your city or out-of-state, single family homes, multi-family properties or condos; traditional or Airbnb renting; and the list goes on. You can pay either in cash or with a mortgage. You can choose to either invest on your own or in partnerships. You just need to figure out, or ask the help of professionals, what strategy suits your status best.

  • Offers long-term and short-term profits

There is always a possibility of earning now or earning progressively over the years with real estate investment. You can make money now and you can make money 20 or 40 years into the future through the opportunities that are always present to you as an investor. When you buy a property, its value will increase over time which means it will be worth much more than what you paid for it at the start. You can gain lots of money through that, or through other strategies.

  • You are tackling with substantial assets

Unlike investing in stocks, real estate gives you the assurance of something that you can see and touch. And that is very much appealing to people because they seem to want to see first before they believe, thus the famous line “to see is to believe.” As an investor, you can even visit properties to look at because your assets are your properties and it wouldn’t be that easy to just lose everything. You are assured of progress when you deal with your investments professionally.

May this list enlighten you and clear all the doubts you may have about real estate investing prior to reading this article. Take a giant leap of faith. Now is always the best time to start. Invest in real estate now and start your journey towards making money in the best possible way.

17 Terrible Mistakes Made by Real Estate Investors Turned into Useful Tips

A wise man once said, one cannot become Mahatma Ghandi in a span of one day, not even Mahatma Ghandi himself. That proves to say that even in real estate investing, it is inevitable that you will most likely experience some mistakes that would either stumble you or motivate you into doing even better the next time. And that’s the thing about mistakes.

 

17 Terrible Mistakes Made by Real Estate Investors Turned into Useful Tips

 

You can turn something negative into positive by learning from it. But if you take a look at this list, well, you might save yourself a lot of mistakes in the future. Here are some useful tips and things every real estate investor should know:

1. Work with the Right People

Whether you are a beginner or a veteran at real estate investment, one thing will never change: no matter how dedicated you are, if you’re not working with the right people, everything will eventually fail. Partnering with reliable people will certainly save you from any untoward unfortunate financial circumstances. To avoid this, you have to know who you are working with not just with the words they say but with the credentials and deeds that they possess. A trusted network of experienced professionals with a legitimate track record of solid performance is beneficial to keep around. You would really want to go for those who actually walk the talk.

2. Choose the right location

Location is the key in real estate investing. It would say a lot as to what kind of property you should be getting. The key here is to do your research properly and choose the best location for your property. You have to be meticulous, if need be. Every single detail – big or small – must be taken into consideration. A sound judgement and a professional opinion would be very helpful in this kind of situation.

3. Choose the right property

No matter how fancy your location is, if the property itself that you chose is the wrong type, then everything will be in shambles. You have to remember to balance everything out, and just like in choosing the right location, you also have to be very observant regarding the property you are eyeing in order to save you from any unwanted regrets in the future. Since you are investing your money in real estate, might as well make sure you invest it well.

4. Good Financing

Good financing rids you one of the mistakes that you would never want to happen again. Failing to finance well is considered as a lethal mistake because some real estate investors have lost their money or went out of business because of failing to handle their finances well. This is where iFundRE.net’s real estate funding comes very handy. IFundRE.net is a real estate funding company that provides Real Estate Loans as quick and easy as possible to borrowers with both perfect and less than perfect credit, even hard money loans! The great thing about private financing is that you can negotiate almost everything. But the bottom line is, no matter what type of financing you use, you have to make sure that you negotiate hard and avoid the worst mistake.

5. Choose the right real estate investment strategy

The moment you know the right property to buy in the perfect location that you searched for, it follows that you already know what you want to do with it. The thing that you have to remember is that you have to make sure that you can afford it. Again, real estate funding becomes your friend in this type of situation. Take note that there are a lot of financing options in real estate – cash and mortgage are the popular ones at that. Make sure that you choose the perfect financing strategy for your particular situation.

6. Calculate your budget correctly

This goes hand in hand with the previous point. Alongside a great real estate investment strategy is the careful planning and calculating of your budget. One of the greatest mistakes real estate investors make is underestimating costs and overestimating income that will take a toll on the probability of generating a negative cash flow. That in itself is not an option in real estate investing.

7. Make an Exit Strategy

There is no definite assurance that everything you have planned would go accordingly to how you want it to be. Same as in investing in real estate, no matter how vivid your idea is of what you want to do with the property that you want to buy, your money will be wasted if things don’t work out as planned. It is crucial to have a safety net to fall on – an exit strategy as an option in case your original plan goes out of hand.

8. Manage Effectively

Once you have already moved forward with the investment, there are a lot of responsibilities that you must adhere to. You might need to drive by the property often and interact with some people and all that. For sure you are not a full time real estate investor. You have a family of your own, some friends, or loved ones who would want to share your time. You need to manage everything effectively and not compromise one thing for the sake of another. Balance is the key.

9. Delegate responsibilities

Unless you are vying to become a superhero or a saint, you need to step down the ladder and seek help if need be. What do moms hire when they can’t handle everything on their own? Exactly, a babysitter. Now, as a real estate investor, especially if you are new to the business, it pays to hire a property manager to manage your properties. If you try to do everything by yourself, the point above will be the result; it will lead to more problems, more costs, and more stress.

10. Drive away fear with confidence

The only thing stronger than fear is hope. And that is something many real estate investors fail to acquire. They can never truly experience all the great things real estate investing can do for them and their finances because of some fears – failure, loss, and risk. These things are holding them back. But the great part about that is you can overcome those fears with knowledge, and with knowledge comes hope, and with hope comes confidence. In order to not be afraid of the dark, you have to learn how create light. Indeed, in real estate investing, you have to learn topics that you are not familiar with – that is how you create light.

11. Starting with a humble beginning

The thought of owning a property might overwhelm you. However, do not let that moment become a path for an impulse decision of pushing through a huge first investment that you might not be able to handle properly. In the long run, it is inevitable that you will go bankrupt right away. Just as a massive tree starts from a tiny seed, so shall be your investments. Begin to plant a seed first – start small and eventually, there will be investment opportunities for you to grow it into amazing lengths.

12. Set aside emotions in decision-making

The key here is to become a professional who makes credible decisions based on research, knowledge, and evidence. Real estate investing is purely business matters. If you think with your heart instead with your head, then you might be luring yourself into trouble. Your investments are your assets. Don’t let your emotions ever cripple the decisions that you make.

13. Learn from previous mistakes

No matter how cliche it may sound, we really do learn from our mistakes. But if you get to fall for the same mistake again, you have to question your own judgement. Surely, there is room from improvement. Do not get swallowed by your loss or your failure, instead draw the right conclusions from it and learn the lessons so you won’t do the same mistakes again in the future.

14. Be patient

When it comes to real estate investor virtues, patience holds one of the highest places. Indeed, a well-rounded investor is patient as he is wise. No matter what kind of investment you have gone with, always know that it takes time and effort before you reap the fruit of your labor.

15. Treating Real Estate as a business

Owning a property is not a joke, nor is it a hobby. Real estate investing is straight up business. Some investors might treat their properties as something that they do for fun, but at the end of the day, they sit down and wonder where all their stress, pain, and financial loss come from. In order to not make it feel like a hobby, you have to create systems that would increase efficiency of your business.

16. Keep records religiously

You can hire a bookkeeper to keep track of your records. This can be a very straining thing to do if you fail to start it at the very beginning. Every documentation and transaction that has happened in your investment must be kept so as to keep everything in order.

17. Start investing now

If you’re looking for a sign when to start investing, well, this is it. This is your sign. People think that investing is best once you have enough money to pay for your property in full. Little do they know that there are trusted real estate funding, such as the iFundRE.net, which gives the best fundings for any real estate venture. Investing in real estate is learned through doing it. What better way to learn than by doing it as early as possible.

 

Be familiar with these mistakes and you will never tread on the same path as these; although you may walk on your own path of wrongs. But always remember that all mistakes are stepping stones to doing things right the second try. The thing about these real estate investing mistakes is that you have a way out of it! And one helpful way to that is through real estate funding. iFundRE.net is a trusted team who looks to design a loan that meets all of your Commercial & Residential Loan needs. As it is said in the points above, do not be held back by fear, instead take risks and you will reap what you sow.

Interested to Invest in Real Estate? Here’s Everything You Need to Know and More!

Let’s face it – you want to invest in real estate but you have little-to-no clue about how or where to start. You have heard about the profits people get from it when the market is right.

You have heard about people earning long-term income just by note & deed investing and JV partnerships.

Now, you want to test the waters before diving in. Let us save you the trouble of drowning. We have swam across the waters and in this article, you will find some of the best tips for investing in real estate to help you stay afloat.

Investing in real estate

1. Know why you are investing.

Investing in real estate is not an impulsive action; it involves a long and well-thought-of days of decision-making and planning. Remember that you are putting your finances on the line and that is not something you want to take lightly. You have to have the clear understanding of why you are investing so as to stand your ground firmly once you’ve started.

2. Know your local investors.

Keep your friends close, your enemies closer, and your local real estate investors closest. That’s right, learn from those with experience. It’s one thing to read about investing online and it’s another to hear it directly from those who have already walked the road you are about to tread on. You might need to take notes while you’re at it.

3. Sacrifice to prioritize.

You heard that right. You must be willing to sacrifice some luxuries in order to prioritize your future financial freedom. Maybe from a vacation of once a month, you can cut it down to twice a year, from eating out at expensive restaurants every pay day, maybe you can save it strictly for special occasions and celebrations. The key is to look at what’s ahead of you.

4. Every great things started out small.

No one becomes Bill Gates in a day; not even Bill Gates himself. Having said that, there’s nothing wrong with starting out small. You don’t have to purchase an entire building right off the bat. For all you know, your house might be your first small investment, and eventually it will lead you to the best real estate investments in the near future.

5. Be open to possible resources.

There are moments when you know it’s the perfect time to make an investment but your financial situation says so otherwise. This is where real estate funding comes very handy. There are loans that suit your needs when it comes to investing. Take your chances and know that it will pay off in the end.

Here are some reasons why you should consider real estate funding:

  • When you invest in a real estate funding, you’re putting your funds into secured mortgage, that is, loans which are secured by notes and deeds of trust.
  • You can also have the choice of having a joint venture investment where you would have shared ownership, shared returns and risks, and shared governance.
  • When you want higher returns, you also have the choice of becoming a higher risk investor.

6. Do bookkeeping as early as possible.

The moment you start investing, organizing your financial records will really help you in the long run. You can, perhaps, seek help from a lawyer and an accountant to help you keep track of your financial transactions, legal holding status, taxes, etc.

7. Recall your basic Math lessons.

Don’t worry, this doesn’t concern calculus or algebra; just plain and simple adding and subtracting. The thing here is that you need to be familiar of how to calculate your income, expenses, and cash flow. Although you need to have an accountant for that, it pays to be able to understand the math behind these matters.

8. Do your research. Read more about investing in real estate.

Never think that you have it all figured out. There are still more things you will need to discover when it comes to investing. The more you know, the better you are in handling your investments.

Want to invest with us? Call us at (925) 268 – 8012 for investment assessment.