I should point out that in real life, buyers hardly enter into signed agreements with real estate agents.Most buyers and sellers use the Internet at some point to accomplish real estate research. He same expertise that your clients seek out when they want to plan a savings account for their child”s education, formulate a retirement plan, or protect the value of their estate.Estate protectMany home buyers are not abundantly educated about the coverage needed to protect a home or real estate investment. Estate planning consists of assorted actions, with almost all having three primary and oh-so-important purposes: to protect your privacy, to reduce taxes, and to make probate simple for your heirs. When you invest in real estate it is essential that you understand the types of insurance coverage that will best protect your property. We need to brief ourselves in order to protect our clients and our industry against the persistent attacks and ever-changing tactics of real estate con artists.Estate taxesIf your parents have an estate great enough to be concerned with estate taxes, then they probably won’t want to give up that annual exclusion because it would ask for that they use up that much more of their unified credit against estate and gift taxes. The client may also need to do some additional estate planning to meet other important objectives: “Avoiding probate” Reducing or eliminating estate shrinkage” Providing sufficient liquidity to cover estate settlement costs” Minimizing federal estate taxes and state death taxes” Providing for the orderly disposition of a business or professional practice”Maintaining the family”s lifestyle and meeting other financial security objectives,To avert making mistakes, people need professional advice from a qualified attorney, trust officer, accountant or other financial advisors. Estate planning consists of many actions, with almost all having three primary and oh-so-important purposes: to protect your privacy, to reduce taxes, and to make probate simple for your heirs.Estate planning consists of many actions, with almost all having three primary and oh-so-important purposes: to protect your privacy, to reduce taxes, and to make probate simple for your heirs. Over a period of time, your house will be transferred entirely to your son without any gift or estate taxes.It is no secret that estate taxes can claim up to 55% of an estate that is taxable, which is no mystery why so many businesses fall into debt, become bankrupt, or are sold due to the death of the owner or partner.Estate salesBeing an astounding sales person and entering the real estate market does not guarantee similar sales success. The second level of virtual real estate investing is buying up networks of content sites and focusing the traffic on profitable product lines, affiliate product sales, services of all kinds, and for advertising commissions. It is also important to the real estate and mortgage industries, as each sale earned could generate thousands of dollars in sales commissions.
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Why Invest in Real Estate?
It’s a competitive world out there. There are many investment options. So why should you invest in real estate? Well, real estate has some unique qualities that have made it one of the top investment strategies in the U.S. for hundreds of years. Its benefits include:You can get paid two times – instead of once like most other investments.In real estate, you get money from both the operation of the property (also known as a “dividend”) and a second time when you sell it, and it’s value has increased due to increasing rents (known as “capital appreciation”). This is in contrast to most other investments such as precious metals and non-dividend paying stocks, in which you only get paid once based on appreciation of the value of the asset. For example, if you buy an ounce of gold, you don’t get a penny in dividends. The only thing you get is the difference between what you bought the gold for and what you sell it for. The same is true for most stocks. Clearly, the best of all worlds is to get consistent income while you own it, and then a large distribution when you sell it.It pays a higher dividend than any other form of investment.Most real estate investments pay out a dividend of roughly 10%. The average stock that pays a dividend – and most don’t – is lucky to be 1%. The same is true with CDs and bonds – you are looking at around 3% to 5%. There are no other forms of investing that can pay out a dividend as high as real estate. Of course, there are such items as “junk bonds” that might pay out 10%, but they might just as likely lose your entire investment if they default. That’s why they call them “junk”. Remember the saying “before you can have return on investment, there must be return of investment”.It comes with attractive leverage.Most real estate investments include the potential for leverage in the form of a mortgage. This allows the investor to create an even higher return, without taking excessive risk. If you buy a property and put down 20%, and borrow the remaining 80%, you will increase the yield on your investment hugely, assuming that the yield of the entire property is higher than the interest rate of the mortgage. This ability to utilize intelligent leverage has long been an attraction. It allows you to pay off the property using the property’s own cash flow. Can you do this with a CD? No. Bond? No. Gold? No. Sure, you can buy stock on margin, but that is really a form of speculation more than investing, and often has dire consequences.It is time-proven and has an impressive track record.Investing in real estate has an impressive pedigree. The first American millionaire – John Jacob Astor – made his fortune in Manhattan real estate. Since then, many of the richest individuals in the U.S. have created their wealth in real estate. These include Donald Trump, Conrad Hilton, Joseph Kennedy, and literally hundreds of thousands more. It has been asserted that more wealth has been created through real estate investing than all other forms of investing combined.Security.When you invest in a stock or bond, you really don’t have any control over where your money goes or how that company is managed. Unlike Warren Buffet, who normally buys full control of the entity through buying a majority of the stock, the regular investor has no power over the day-to-day operations of the business they own stock or bonds in. Additionally, their stock or bonds are normally not secured by anything tangible. In most cases, all you have as security on your investment is a piece of paper and the hope that there will be a market of buyers for that piece of paper in the future. With real estate, you get a deed to a property – the title to the asset is put in your name. You control what happens. You are the boss. Your investment – your capital – is backed by the title to real estate.ConclusionThere are many great reasons to invest in real estate. Not only does real estate offer the highest financial returns, it also offers security and has a proven track record of performance. It also offers attractive leverage to allow you to stretch your investment dollars farther and obtain an even higher real rate of return.”I made a tremendous amount of money on real estate. I’ll take real estate rather than go to Wall Street and get 2.8%. Forget about it.” – Ivana Trump