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Home » Business And Finance Articles » Real Esate Opportunities And Alternative Streams Of Income For Investors

Real Esate Opportunities and Alternative Streams of Income for Investors

As the real estate market stabilizes and the stock market surpasses previous records, exceeding 12,000 for the Dow Jones Industrial Average, it is time to take a hard look at where money needs to be invested. The stock market is volatile and prone to the effects of shifting world politics and economics or even war. These hazards do not factor into the risk or the investment potential of most real estate investments. The success of real estate investments is driven by other factors, such as price, location, development and accessibility. Real Estate is still a far more stable investment to create residual income, a happy retirement, and with savvy choices -- even wealth. To produce a profit in real estate an investor must buy real estate strategically.

While they have sat on the sidelines of the real estate market for the past two or three years, during a virtual frenzy, investors are currently in the market again, looking for deals. With the recent trend towards lowering real estate prices in markets where property is sitting, and the predisposition of the seller to pay closing costs, it is indeed a time of opportunity for real estate investors.

On television shows where rehabbing is done on homes, producers make it look easy to spruce up a property and turn a profit quickly. Reality dictates different strategies in the current buyer's market in real estate. Real estate investors need to look outside the box and invest in property with the intention to hold for three to five years, or longer in some cases.

Here are some tips on what types of properties and locations to look for in order to produce alternate streams of income from real estate investments.

Commercial Investment Properties

Often when investors think of purchasing property, they think residential. Large real estate investors originating in the Northeast sector of the United States often have different strategies. Many look to invest in commercial buildings or strip malls, to lease to businesses.

When investigating urban commercial properties, research which neighborhoods the city has slated for development. Search in warehouse districts, which are being rehabilitated and developed. Attend city council sessions for a greater understanding of upcoming development projects. When purchasing property in an up-and-coming neighborhood there are several options: rehab and resell, rehab and rent, buy commercial property and lease it.

Purchasing a Business

REALTORS in some states, such as Virginia, are licensed to help investors purchase businesses. When purchasing a business through a REALTOR, always ask to see the expenditure accounts. Remember, in this type of transaction the buyer is purchasing the business, the equipment and good will, not the property. If the REALTOR you select is not well versed in this, find another REALTOR.

Agricultural Investment Properties

Sometimes real estate investors would be better served to find agricultural properties in rural areas, rather than focusing on urban centers. When purchasing lots and land, review the ground lease options for the land. Investors can purchase land and if it is zoned correctly, may house storage units there to produce income. Or, rural land may be used to store cars, boats, RVs, etc. If the area where the land is located has a community governed by a Home Owner's Assocaiton nearby, land might not be able to be leased for these purposes. Another option for a commercial property owner in a rural area is to build either a temporary or permanent structure to house a business.

Timing Residential Property Investment

For residential investment properties, the best deals can be found off peak season, during the winter months, especially near areas where tourism is high, such as Williamsburg Virginia. Many home sellers will list their properties in the spring with the hope of selling them by fall. Always look for a motivated seller, who needs to sell. They are willing to negotiate price. If the seller is not as motivated, they generally will not lower the price and the home or property may sit on the market instead. Make an offer to a motivated seller, and if they are not willing to counter, move on.

Be Creative With Investment Property

The real estate investor who thinks outside the box will be rewarded with handsome profits. For example, some investors convert old hotels into apartments or condominiums. Historic, old or exceptionally large spaces can be converted into shops or apartments. Remember the three keywords of real estate whether for investing or for personal use: location, price, and condition, with price driving it all.

Financial Matters With Investments

Make certain there is a financial cushion with real estate investments. Before reselling a home, there will be insurance and taxes to pay in addition to a mortgage. Do not attempt to 100% finance an investment property without a cushion.

When purchasing a property that is already leased, ask for rent rolls to determine if there is a positive or negative cash flow on a property. Also, ask for any expenditure sheets for the property for water, electric or heat.

As we head into 2007 and beyond, there will be plenty of motivated sellers and some great investment opportunities in commercial and residential real estate. Do not miss out on these opportunities. Real estate is still a great way to build wealth over the long term, and to shelter income from tax liabilities, too. So long as the real estate investor spends 40 hours or more per year on real estate matters, all expenses related to the purchase, rehabbing, or reselling of property is tax deductible.

For a multitude of reasons, real estate is still one of the most secure investments. Check my web site: http://www.voncannorealestate.com for more articles on real estate investments. Contact me for specific real estate investment opportunities in Williamsburg and the greater Southeastern Virginia area, contact me at vomor1@cox.net or call 757-288-4685.

And here is another random article you might be interested in...

Army Ranger Reveals How to Control Corporate Stress

"Adopting the right attitude can convert a negative stress into a positive one." Hans Selye - the "father of stress" and founder of the Canadian Institute of Stress.

Every worker in America has heard of individual stress management techniques -- relaxation, meditation, and visualization -- good tools for getting through stressful periods. But if they're so great, why do we still have all this stress?

We're going to need something more than mood music, aroma therapy, and comfortable lighting to get beyond the stress of today's workplace. We're going to need management's attention because stress control is a leadership responsibility.

The US Army has plenty of experience with stress control as front line leaders strive to keep GIs on the job. Traditionally, the US Army has lost as many soldiers to stress as to enemy gunfire - a ratio of 1:1. The most elite units trim this loss to a ratio of 1:10 - one stress loss for every 10 wounded soldiers.

Regardless of the ratio, every front line soldier is critical to winning the battle. Commanders know that controlling stress under fire is as critical as food, fuel, and ammunition. The same holds true for corporate America. You can't get high productivity with high absenteeism.

Combat leaders watch for stress symptoms and take action. They are taught to "Know your troops, and be alert for any sudden, persistent or progressive change in their behavior that threatens the functioning and safety of your unit." (FM 6-22.5, "Combat Stress")

Specifically, front line leaders are taught to help overstressed soldiers in six ways:

Army Step 1. Reassurance

Corporate Solution: Some people need contact with the boss to assure them that things will turn out ok. Spend time to find out worker's concerns. Ask for their observations on recent events. Find out what they think about upcoming changes. Ask for their advice -- they'll admire you for demonstrating your trust. Simple remarks showing your confidence in workers can make a big difference.

Army Step 2. Rest and sleep

Corporate Solution: Its worth your while to offer some additional time off if stress is interfering with performance. Consider giving additional breaks to relieve mental and physical fatigue. Improved productivity will more than pay for the unstructured breaks that over-stressed workers will take on their own.

Find out what's needed to help employees get more rest at home. Bring in experts to teach the importance of rest and relaxation. Take a look at that overtime schedule; the extra work might be taking its toll in absenteeism, illness, accidents, and attitudes.

Army Step 3. Food and fluids

Corporate Solutions: You can influence how people eat by getting experts to teach the importance of proper nutrition. Make sure nutritious snacks are available alongside the junk food in vending machines. Provide healthy snacks mid-morning and mid-afternoon when energy levels begin to fade. The investment will pay off in better performance. Reward good health.

Army Step 4. Hygiene - bathing, clean uniforms

Corporate Solution: A scheduled break to get cleaned up before lunch or after a hard day of dirty work can pay off in a big way. Make sure everyone has the right protective clothing for the job. Extreme temperature and dampness create stress that can be easily relieved by proper apparel and hygiene breaks. And, as surprising as it might seem, some employees do not have running water at home.

Not all of them have hot water. Not all of them have washing machines. Make these things available at your workplace or find alternatives. One-time arrangements can go a long way in helping stressed workers get their emotions under control and get their productivity up where it belongs.

Army Step 5. Discussion - A chance to talk about what happened, to tell war stories

Corporate Solution: Everyone benefits from a chance to tell about what went on. Some people are more sensitive than others. There is often great value in routine meetings to kick off the shift or explain the day's activities. Scheduling time before or after meetings to talk about what happened can relieve stress for those in the spot light. Team discussions after sales calls can help stressed workers understand the results and focus on what needs to be done.

In times of high stress, some people need to talk about what happened to others around them - family members, community tragedies. Managers can handle the day-to-day conversations and experts are available to address major stressors. Help workers tell their "war stories."

Army Step 6. Restoring identity and confidence with useful work

Corporate Solution: As soon as possible, over stressed workers need to return to their positions of responsibility. They need to see that (a) they can perform well (b) that management recognizes their efforts (c) and that life goes on. Emphasize small accomplishments. Find reasons to reward each person for their achievements.

GIs usually return to their jobs after a short rest, a hot shower, a chat with their supervisor, and a warm meal. Your people can do the same. Most of the time, they can continue in their jobs if you pay attention to their basic needs.

Watch for high stress period in your business cycle and schedule time to work on these six steps. You'll improve productivity and the workplace environment by taking care of your people. Your investment of time and money will be rewarded in better performance and lower costs.

Work with your human resources experts to assist those who are beyond your ability. Let the professionals take care of the severe cases while you take care of your other employees and get the work done.

Can you identify employees who are suffering from stress? Do you know what to do about it? Evaluate employee problems with an eye toward stress control. Send a blank email to toptenstressors@couragebuilders.com for a f`r`e`e article about the top ten causes of workplace stress.

Copyright 2004 - Dale Collie

You may publish this article electronically or in print f`r`e`e of charge. Just include my full byline and add a hyperlink for web postings. When you publish, please send a courtesy link or email to collie@couragebuilders.com.