Thursday, January 29, 2009

Business Real Estate Tips for the Recession

(Source: Sean Mize)

This is a golden opportunity that definitely shouldn't be allowed to pass you by, but there are a few things you should watch out for when buying real estate in a recession.

1) First and foremost, when you're choosing a company to invest in it's essential that you choose one that's going to weather the storm of the recession and bounce back when the time comes. If you sink your savings into a company and it goes under as a result of the recession you're going to be no better off than you were before. To determine whether or not a company will survive to see a bright new future rather than being culled out when the recession separates the wheat from the chaff, answer the following questions:

• How long have they been in business? Companies that have been in business for many years are unlikely to go under because of a simple recession-in fact, they've likely weathered many of them in their time. A company that's already proven their staying power is an excellent choice of investment, and should definitely be given first consideration.

• What do they do? Although companies that specialize tend to be movers and shakers when the economy is normal, if they are unable to expand and "macro" themselves (a topic we'll talk about in greater detail in just a bit) to adjust to the changing economy they're going to go under. If a company has not been able to expand and diversify, and if it doesn't offer a product that people are guaranteed to need day after day and therefore are pretty much guaranteed to keep coming back for, it's at a high risk for going under during the recession and should be given a wide berth.

• Is their industry stable? Historically, there are certain industries that tend to fare better in a recession than others, and these should be given firm consideration when you're expanding your portfolio. Utility stocks (telephone, electric, gas), food and "escapes" such as cigarettes, alcohol and gambling have a history of tremendous success when it comes to riding out a recession because these are the industries that most consumers deem necessities and will continue pumping their money into.

• Is it a necessity? The industries listed above are stable choices during a recession because they are deemed to be necessities; however, if there is one industry that you can be sure is not going to go anywhere in the face of any kind of recession, it is the healthcare and pharmaceutical industry. Regardless of what the economy looks like, people are going to get sick and they're going to need their medication to recover. This is a strong, stable choice for your portfolio, and it's one that you can count on to bring in a steady, if not always remarkable, return.

• What about gold? Gold isn't going anywhere. If you're looking for a safe, solid and low risk investment during a recession period, gold is an excellent choice. There is very little chance that the value of gold is going to depreciate rapidly, and it's definitely not going anywhere.

• Successful investing isn't always just a matter of knowing what to invest in. Many times, it's also a matter of knowing what not to invest in. There are certain industries that often bring about good returns when the stock market is high, but who are extremely risky during times of recession. Can you guess which industries those are? Right. Any industry that specializes in luxury services is going to take a hit when conscientious investors start counting their pennies, and as a result so are their stockholders. Good industries to avoid include airlines, luxury resorts, restaurants (unless they have been around for a while) and, of course, financial and lending institutions (who are likely to go under as their borrowers slip further and further into debt).

• If you aren't familiar with the process of investing the best thing you could do for yourself to ensure the continued growth and success of your investments is find a skilled financial counselor and/or investment broker to work with. Ideally, they'll be able to look at a company's past history and their current place on the market and let you know whether or not they are a good choice for investment. Choose your broker with care, however; the last thing you want is to see your hard work and cautious planning fall apart because your broker was overly ambitious and pushed you into an investment that was doomed to failure from the very beginning.

2) Diversify. Regardless of how established a company is, there's no way to positively predict how they are going to react in the event of a recession. Your mother always told you not to put all of your eggs in a single basket, and she was absolutely right. If you can spread your investments around a bit through several companies in a variety of industries you will stand a better chance of being able to profit from this recession. Even if the bottom falls out of one and it goes under as a result of the poor economy you will have the others to fall back on and ensure that you are never left holding absolutely nothing at the end of the day.

Back to Denver Real Estate

Flipping Real Estate Tips

For the street smart real estate investors, flipping houses has become even more lucrative, even in the current market conditions.There are many ways a person can make a living when it comes to real estate investing. Real estate investing certainly sounds scary and is, if you plunge into it without knowing what you are doing.

Flipping homes successfully as full time business revolves around three steps.

Diverse Portfolio

If you have different stock portfolio managed by your accountant or broker. Then, you have done some real estate investment. Flipping property to make a profit, can sometime be a bit confusing, there are people that specialize in locating the "bargain real estate", get a signed purchase agreement and then sell just the contract before they take ownership;

Be Patient

Just like with any skill worth learning, you need to take time and patience in order to have any chance of making a profit in real estate investing. There are a few things you should consider when purchasing a rental property in order to make a wise and long lasting choice for your real estate investment. pay attention to the types of people in the area and buy rentals accordingly. It is quite possible to turn large homes into several smaller apartment units that are ideal for college students. pay attention to the types of people in the area and buy rentals accordingly. It is quite possible to turn large homes into several smaller apartment units (according to local zoning laws) that are ideal for college students.

Sell the deal.

You plan to sell it fast to another investor that will fix then flip the property to a homeowner Do you have any established relationship with any other investors that would be interested in the deal? Times are much harder now for real estate investors because of the mortgage crisis. This is a good time to learn the mistakes that people did with their money in the past.

More Real Estate Tips

Back to Denver Real Estate

Tips for Finding Real Estate

(Source: Billings Farnsworth)

Are you in the market for Aurora real estate? Maybe you're on the buying end, or maybe you're on the selling end. Either way, there are right ways to go about the process that will end up in immense cost and time savings. One of the better ways to go about delving into the real estate market is to use the Internet to expand your reach and possibilities.

If you're a buyer, beginning the process can be as simple as going your preferred Internet search engine and typing "real estate Aurora". This should bring up many listings, as well as Realtors and agents in the Aurora area that can assist you in your real estate search. An Internet search is a good way to kick things off, as it'll give you a better sense of the available market, and you'll be able to identify areas that fit your needs and budget. Then, you can enlist the help of a trusted Aurora agent that can handle the nitty-gritty of the search process.

A good tip when looking for a real estate agent is to look at the reviews of local Aurora realtors online as well. Often times if someone is really satisfied with the service they received from an agent, they will go onto Google or Yahoo and rate their services. Same goes with an unsatisfied customer. IF the service is bad, they often times want to tell others about it!

If you're a seller of real estate in Denver, you'll similarly want to look at your options online. If you're selling through an agent, your listing will most likely be posted online as a service. If you're selling without the help of an agent, it will pay dividends to post your property online, as this will open the market to a much larger market of potential buyers.

There are any number of good listing services that can do this for a nominal fee-- some may even do it for free. It doesn't take much computer knowledge to do this, and it doesn't take long to post, so this should be one of the first steps you take in the selling process.

If you are searching for an Aurora real estate agent, Kim Olson is a great agent servicing the entire Denver metro. She specializes in Aurora Real Estate and has a very successful track record for selling homes fast. You can find her information at TheDenverSource.com

Wednesday, January 7, 2009

Contracts and your Aurora Real Estate Agent

You've done the research, searched for real estate everywhere from Douglas County to Jefferson County, and have finally found your perfect home. Don't wait! Get it under contract as soon as possible. The contract is your tool to get the home temporarily off the market, and will give you a bit of time to work out your loan with the lender.

If you are working with a real estate agent, the first thing you will want to do is to read over the contract with your agent. He or she has been trained to understand all aspects of the contract and will be able to tell you if anything is amiss. Your Aurora real estate agent will also be able to add any specific clauses that you need and will be able to make any necessary adjustments. These adjustments may include a time period for you to get your loan in order, or it may include clauses on the overall condition of the home. Whatever you and your real estate agent choose to put in the contract will need to be very specific and carefully worded. The contract is protection against possible litigation for both the buyer and the seller.

Contracts can seem intimidating, but they don't have to be. A professional Aurora real estate agent will be able to answer any questions you may have, and when the contract is written and ready he will pitch it for you. A real estate contract, like any other contract, can be lengthy and confusing, but they can work to the advantage of both the buyer and/or the seller when handled professionally.