Is Fear Preventing You From Real Estate Investing? Then You Must Read This!

March 31st, 2007

Are you prevented from real estate investing due to a nagging feeling that you are certain the market will collapse once you step in? It’s not uncommon; many potential real estate investors have missed incredible opportunities for no other reason but an overwhelming sense of fear.

We will address a few of those fears and see whether we can help you to become less anxious, and maybe take the plunge after all.

Negative Cash Flow

No real estate investor wants to feed a property. The idea behind buying rental property is to make enough money to cover operating expenses and loan payment and have some left over to deposit in the bank.

Foremost, run the numbers before you buy. Use realistic rents, vacancy rate, operating expenses, and loan payment to compute your annual cash flow.

Perhaps you were given the properties numbers and didn’t act because they indicated a negative cash flow. Don’t stop there; look for ways to manage the cash flow. Many rental income properties simply go negative because of poor property management. Consider the probability of raising rents and cutting operating expenses. You might be surprised to discover a real opportunity overlooked by the current owner.

This Isn’t the Right Time

For any number of reasons surrounding national and international events, potential real estate investors often feel it would be advantageous to wait for better times.

Real estate investing has little to do with the economic climate at the time you buy, however; you must always consider the long haul and how it will impact your future rate of return.

Remember, unlike the fluctuating stock market, real estate has a profound record for steadily appreciating—perhaps not overnight, and not without an occasional bump, but over the long haul real estate value does go up over time.

Losing Your Money

It is understandable why you would be concerned about tapping into your savings account to make maybe the largest financial investment of your life only to wind up losing it all.

The key is to study and research. Learn about the product you want to invest in, and the area where you plan to invest. Look for sources of information like seminars, college courses, software, and books. Get an expert appraisal of the property from an investment real estate professional or property appraiser. There is always some risk when investing, but developing a plan with knowledge will do wonders for your comfort zone.

Tenant and Management Hassles

The headache of having to repair a refrigerator or reprimand an unruly tenant prevents many people from becoming real estate investors. But life is always a series of trade offs, and trading off an occasional migraine for potential future wealth is worth it.

The truth is that in time you will learn to deal with it and be able to manage most issues with your eyes closed. Besides, you can always hire the services of a reliable property management company to deal with it for you.

Real estate investing is not about luck. Real estate investment is a well-thought-out plan with a series of ordered steps spanning knowledge through prudent management. Educating yourself about the nuances of real estate investing, drawing from expert sources like real estate professionals and real estate software, and remaining vigilant over the affairs of your investment is your genuine ticket to real estate investing success.

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Real Estate Investor Software Updated

March 29th, 2007

ProAPOD has updated its real estate investors software. If you are currently using ProAPOD Real Estate Investor Software 4.0, a free software update is available for you to download.

What’s New In This Real Estate Investor Software Update

  1. The addition of a cover sheet. This allows you to print a descriptive cover for your real estate investment analysis reports.
  2. The addition of a picture element. This allows you to easily insert a picture of the real estate property on the cover sheet.
  3. Modification of the user form to allow more of your business information for use as a name rider on the cover sheet.
  4. Modification of all other forms. All the forms have been modified and restructured into more concise categories of investment information.
  5. The addition of 14 formulas to the learning center. The learning center now includes 31 formulas and solutions and has undergone a redistribution on the forms to make it easier for you to follow and learn as you are creating your real estate investment reports.

How To Install The Software Update

  1. Login to your account on the computer you wish to install the update (real estate investor 4.0 must be previously installed on the computer).
  2. Click on the download link and follow the online instructions.

What To Watch For

  1. Original install downloads must be completed before the update links appear. If you have not installed the program on both of your computers, and one install still exists, the updates will not appear. This is okay and will not negate the update. Once you install the second program, simply log back in to obtain the updates.
  2. Do not attempt to install the update on a computer where the original program was not installed. You will receive an unkind message informing you that you are not allowed to obtain the update.
  3. Only the main program will be updated. Previous files you might have created and saved with a specific property name will not be updated. In most cases this is perfectly acceptable, but if you decide that you want the file in the new format, simply open the update, re-enter the information, and re-save it.
  4. Please report any problems you may encounter with the software update immediately. Although every effort is made to maintain the integrity of the program, it is not unusual to make changes and miss something. If needed, the update will be fixed within a day.

Other Software Updates Soon To Follow

ProAPOD is also in the process of updating it’s other real estate investing software solutions. If you are currently using ProAPOD Real Estate Investment Software 6.0 or 7.0, please be watching for an update within the next several weeks.

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The Benefits from Real Estate Investing are More than Monetary

March 26th, 2007

The monetary benefits derived from real estate investing are foremost to real estate investors.

Rental income received from the real estate investment, increased value due to appreciation of the property, and financial leverage achieved when the real estate investor makes money and magnifies rate of return on investor equity from borrowed money are true benefits of real estate investing. They are not, however, the only sources that provide benefits from real estate investment.

There are at least three non-monetary sources available to real estate investors as well. Though less obvious, they are associated with real estate ownership, and the benefits they offer real estate investors cannot be ignored.

  1. Pride of ownership through controlling an investment in real estate results from an opportunity to control one’s destiny through managing and making one’s own decisions about that investment. It always feels good to drive by a property where you you can say, “I own that.”
  2. The knowledge that an investment is under the investor’s control provides a measure of security. For example, controlling the ownership of land and improvements at a specific location may be vital to the survival, growth, and ultimate success of a business.
  3. An investor may purchase real estate for portfolio diversification and spread risk by having a diversity of investments among investment types. The knowledge of having some ownership in real estate can work wonders for you emotionally when the stock market tumbles and you know that you didn’t place all your eggs in one basket.

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