It’s been quite a few years since I read RICH DAD, POOR DAD by Robert Kiyosaki; I think it was back in 2000 as a high school freshman. It was one of my first insights into the business world, and after reading it, I was extremely excited!

First, if you have not read the book yet, I strongly urge you to pick-up a copy. Last time I checked Amazon it was $11 – not bad for a life changing book! If you have read the book, continue…

Now I’ll assume you’ve read the book or at least heard something about it. There seem to be two opposite perspectives on the book:

1. It is a great introductory book into the world and business and real estate investing.

2. The book is useless and Kiyosaki is a fraud.

My opinion is along the lines of #1. Kiyosaki has written a wonderful book that will enlighten and motivate almost any individual to take action and better their financial situation.

I can’t say whether or not Kiyosaki’s story of his two dads is true. But if it isn’t, it doesn’t matter. That fact has nothing to do with how good the book is. What matters is that the book is easy-to-read for the average person thanks to Kiyosaki’s style.

If you want detailed how-to information, look elsewhere. RICH DAD, POOR DAD puts the idea of financial independence in your head. That’s the point. If you gave a novice a technical book about flipping properties, he/she would be pretty bored and gain no interest in real estate investing. Those are the books you read after Rich Dad.

Regardless of your stance on this issue, you need to consider this valuable lesson:

Find a mentor.

“Rich Dad” is an example of a mentor, someone who guides you during your investing. Someone you can go to for advice. Someone experienced in your field. Mentors are invaluable when you are starting out and when you are faced with any sort of strategic decision.

Now go find your own “Rich Dad.” (Check out http://www.score.org/ for help.)

Massachusetts Housing Slows Down, Equity Cash Outs provided 14 Percent of Residents Income

Very interesting post over at The Real Estate Bloggers. As a resident of Massachusetts, I have been expecting a "blood bath" in the real estate market here and it looks like it will be coming soon. While it will be a negative event for many people it will present many opportunities for the smart real estate investor.

The real estate business has been around for a good number of years. More and more people are drawn to it because of the steady influx of money, but there are things you have to consider before entering a real estate business.

First you have to decide whether it would be as a sole proprietor or through a corporation, partnership, or trust. Each has its own pros and cons. Let’s take a look at them.

In a sole proprietorship, everything is “sole” as in managed by a single entity. In terms of splitting the income, it could be divided among family members that have a lower income bracket. A lawsuit that may arise in the future regarding the properties is held personally.

A corporation is a structured legal entity that consists of a group of persons known as shareholders. Investments are high in this type because investors are attracted to the built-in stock structure. This type stays on the market for years until the stockholders decide to split up or merge with other corporations. However, starting a corporation requires a lot of money. Proper corporate formalities should also be followed in order for it to be recognized as a corporation. A huge amount of paperwork is also expected in this type, in the start-up phase and every year of business. This includes reports, bank accounts, financial statements, and records that should be updated from time to time.

In a partnership, partners are generally liable for one another. Though with taxes, an individual may be taxed in terms of his individual level. Administrative and compliance costs incurred through partnership include legal, partnership agreements, accounting, and tax.

Trusts in some cases may be similar to a corporation; however, unlike a corporation, trusts are not held liable to capital taxes. And in case of losses, it remains within the trust and can not be flowed out to the beneficiaries.

When you know what type of management to consider, set your priorities on whether it will be land, apartment buildings, or rental apartments.

Buying a plot of land, like a broker, would be a good investment but one has to wait a long time for the value of the property to go up. However, you could get it for a lower cost to start.

For rental apartments, it would be a fairly easy start and provide a long term return on investment, but would require waiting for the pay-offs.

Apartment buildings mean triple-net income. It is because the tenants are usually tied in a three-year contract. A drawback on this is a vacant space for a long period of time. For every year that it is not leased, it would mean a loss of income.

Real estate business is a vast and varied opportunity. There are many things to consider before playing the game. Take time analyzing terms and conditions that go with it. In the long run, wise decisions could bring in a lot of money and lesser problems.

The MLS is a database - an extremely convenient way to know what properties are for sale at any given moment. This makes it very useful to real estate agents and brokers (or basically anyone looking to buy or sell a house.)

Basically, the MLS is like a huge property warehouse. When a property is available for sale, it enters the warehouse. When it is sold, it leaves the warehouse.

The MLS only contains information since real estate cannot actually be stored in a warehouse. This information comes from the various brokers that exist in the scope of the MLS.

Why the MLS works for home buyers

First of all, MLS is very convenient. Buyers can browse through the available properties listed on an MLS.

Using the MLS also does not cost anything. It is a free service that is sponsored by the realtors advertising their available properties.

Options Galore

On the MLS, a buyer is not limited to choosing among a few available properties. Usually, the MLS makes available many properties that are for sale.

In the olden days, when information was limited, a buyer would only be able to visit a few homes per day. He or she would also need to communicate with the agent for details and such.

With MLS, the buyer can start browsing from the comfort of his or her home. Details regarding the property are also listed there.

Aside from the written details, MLS usually provides pictures of the property. Other advanced MLS implementations even have other surveying tools that help buyers come to decisions regarding their desired property.

Fitting the Bill

MLS also helps the buyer by narrowing down choices to those that fit the buyer’s desires. The buyer supplies information on his or her desired property to the MLS site. This information includes desired area, size of property, age, location, and other specifics. The buyer is then given a set of houses that fit that description.

Communication

MLS also makes it easier for the buyer to contact the realtor. Details about the realtor are listed along with the property to allow straightforward communication between buyer and realtor.

Conclusion

It may be hard to believe but the real estate industry has benefited a lot from MLS. MLS is the next step in real estate evolution. It is relatively safe and is very convenient. As the MLS grows in popularity, more and more realtors avail of its listings. For the buyer, this can only mean good things – more choices, better decisions.

Realtors Get Their Hands on Technology

This article discusses how real estate agents are leveraging technology to make their job easier. One example is Pathfinder from InternetMLS which integrates MLS listings wirelessly with GPS. A quick search for 'real estate software' on Google returns a variety of potentially useful programs for the RE investor and broker a like.

Services like Google Maps and Yahoo! Local allow you to also see what amenities (restaurants, coffee shops, schools, etc.) are near properties. A quick search for "[town name] + census" will generally return the newest census data on that town. Virtual 360 degree tours of houses is also a new but increasingly popular feature requested by potential buyers. The more information and interactivity you can provide over the web, the better. Real Estate is still somewhat of a conservative industry so you can get ahead by leveraging new technologies.

Here is a great article by Rik Foote about how to get started as a Real Estate Investor by becoming a 'scout'. This is the best way to get started, particularly if you are young. There is little to no risk, you learn a great deal, expand your network, all great things. The key is to learn as much as you can and then see if you can leverage your learning with the network you now have to get yourself into a deal with little to no money down. Then build your real estate empire from there.

Here is the article… Read more

Here is an article by a friend about the home buying process. Not only can the novice real estate investor benefit from this article, but for a more experienced investor it allows the opportunity to take a step back and look at this process from the other end of the table to gain some perspective… Read more

Behind the success of a man is a woman, and behind the success of a real estate business is an ideal agent. Indeed, it's the human resource that is considered to be the most important factor for real estate business to succeed.

Indeed, real estate can be a lucrative activity when managed properly by the right person. But what does it take to be an ideal real estate agent?

1. Have a solid track

Most people who succeed in life know where they want to go, what they want to do, and the reasons behind it. And so, for a person to be a successful real estate agent, he or she must encompass this trait.

2. Knows who you are

Skills, strategies, and marketing tools will all go to waste if the real estate agent does not have a solid assessment of his or her own personality.

Consequently, a successful real agent is honest in his or her endeavors especially those that involve transactions with a client. If, in the first place the real estate agent is not being true to him or herself, then the real estate agent will most likely have difficulty in dealing with other people.

This all boils down to the fact that an achiever is a believer not of any other thing, but in himself.

3. Optimism

A lot of people who succeed in life are optimistic. This means that a person always has a positive outlook on life. An optimistic person believes that there is no such thing as failure. And an ideal real estate agent knows this too.

4. Motivation power

An ideal real estate agent knows how to motivate or move people into action. It's that unique power of every sales person to devise a strategy that can motivate their clients to buy the product he or she is selling.

5. Awareness of the value of properties

To become an ideal real estate agent, one should be aware of the ebb and flow of the cost of the properties. These should be taken into consideration with utmost care and skill.

6. They should price right

To be an ideal real estate agent is to be considerate with their client's purchasing capability. They should be sensitive enough to detect if the price of the real estate is reasonable enough to hit their market.

7. Does not engage in hard selling

Be considerate of the buyer’s emotions. Putting someone in a house they don’t want will come back to haunt you later.

8. Know how to make a pleasant showcase of the property

If the house is presented properly, there is a much greater chance of making the sale. In the same vein, even a nice house may appear dull if the agent does not fully describe its appeal.

Buying or selling a house is a thrilling experience. But connected to this is a stressing and overwhelming job. This calls for a good real estate agent. But what do we need to know about hiring an effective real estate agent?

Verifying the real estate agent’s license is very helpful. It pays to be very cautious because this involves the property! This includes his state license in selling a property. Added to this is doing a short background check on the agent. Ask for the previous estates he sold or acquired for a client. Knowing the training and seminars he has attended will also give you a grasp on the abilities of the agent you could be hiring.

Develop a good chemistry with your agent. With the agent knowing what the buyer or seller wants he knows where to start and what to consider. The agent should be able to tell his client the true worth of his property because it is really what it is worth and not because he just wanted to lure the client in doing business with him. Meet up with the agent once in a while to stay updated about the property.

In selling a house, the agent acts as the adviser. He gives the owner advice like the asking price of the property and acts as mediator between the buyer and the owner. And in buying a house, the agent acts as the researcher. He also does the legwork and sorts through which properties best suits the need of his client.

The agent should also show an excellent knowledge about the market. This works well for the client because the agent would be able to give the buyer considerable rates especially if he has sold many estates within the area. And in the case of a seller, the agent could offer them a great deal of asking price for the property.

It is also important for the agent to have plans. Find out the agent’s plans on how to sell the property or in a buyer’s case, see how he plans to help the client in acquiring a new property. Ask him what he plans on doing like will he put up ads for the property (if the client is selling) or would devise house visits on prospective estates (if the client is buying).

Hiring a good agent is easy if you know what to look for. Take these easy steps, ask for his credentials, establish a rapport and work with him in doing marketing plans for the property. Surely, buying or selling an estate would come out as a satisfying experience!

A perfect business card for real estate investors

This is a great post over at the Michigan Real Estate Investment Blog. It shows examples of great business card designs for real estate investors and how to use them effectively. Simplicity coupled with all the details people need as well as what you are looking for as an investor makes the perfect real estate investor business card.

Want to buy cards for cheap? Check out Overnightprints.com they are fast, high quality, cheap, and you can design a card right on the site if you want.