6 Reasons for investing in Florida Investment Property

Written by Lisa Carson


6 REASONS for investing Florida Real Estate Investment Property NOW

I invite you to takerepparttar next few minutes to learnrepparttar 140704 truth aboutrepparttar 140705 real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, 'I need to get intorepparttar 140706 Florida Investment Property market', especially taking into account current stock market fluctuations andrepparttar 140707 HOT market for investment properties, but simply don't knowrepparttar 140708 facts about Orlando property investing and how to use sale and leaseback method of property management.

When isrepparttar 140709 last time your financial advisor or stockbroker tried to convince you that moving a portion of your assets intorepparttar 140710 Florida Investment Property market might be a good idea? Never Right? The 'why' is simple. They don't earn commissions when you buy Florida Investment Property. It is also likely that you have probably never had an 'apples to apples' comparison of stocks versus Florida Investment Property quite likerepparttar 140711 one you will see here.

Reason 1: Leverage: Banks will not typically loan money to buy stocks. Banks will however, compete fiercely to loan money to buy Florida Investment Property. Your first question should be, 'why is that'? It has to do with risk management, which we will discuss later. The fact that banks want to loan you money to buy Florida Investment Property creates a situation which we will call LEVERAGE.

Let's assume that you have $10,000 to put into some type of investment. If you choose to buy $10,000 worth of stocks, you will own exactly $10,000 worth of stocks. Pretty straight-forward. However, suppose you choose to invest that $10,000 into Florida Investment Property using a 90% mortgage (which in many cases can go up to 95-100% mortgages in today's market), you will own $100,000 worth of Florida Investment Property. If both of your investments were to appreciate by 10%, your actual gain with your stocks would be $1000 where your actual gain with Florida Investment Property would be $10,000. That equates to an actual 10% return on investment vs. a 100% return on investment. That's what we call leverage.

Leverage: Florida Real Estate vs. Stocks The traditional argument against Florida Investment Property Investing (mainly from Stock Brokers) has always been 'I can get an average of 10% from stocks with little effort so why would I invest in Orlando Investment Property that only appreciates 6-7% per year'? This point-of-view is not taking leverage into account.

If you takerepparttar 140712 above statement to be true and comparerepparttar 140713 REAL numbers,repparttar 140714 stock investment gained 10% ofrepparttar 140715 initial $10,000 value (or $1000) andrepparttar 140716 Orlando Investment Property investment gained 6% ofrepparttar 140717 initial $100,000 value (or $6000). That is still an actual return of 10% versus 60%. It is not hard to see which investment provides a greater immediate return on investment. Additionally. these numbers do not take into account any income from your property duringrepparttar 140718 course ofrepparttar 140719 year, orrepparttar 140720 substantial tax advantages to owning property, which we will discuss later.

Reason 2: Value: As we mentioned previously, if you invest $10,000 into purchasing stocks, you own $10,000 worth of stocks (a fairly obvious point). If you invest $10,000 into purchasing Orlando Investment Property usingrepparttar 140721 leverage of a 90% mortgage, you own $100,000 worth of Orlando Investment Property right? Well, only if you paid retail for your property. Any savvy investor will tell you that there are excellent deals to be had in Orlando Investment Property, you just have to find them.

What if you purchased a $100,000 property that happened to be worth $110,000repparttar 140722 day you bought it? Does it happen? The answer is yes, allrepparttar 140723 time. If you have your eyes open and are willing to 'go throughrepparttar 140724 numbers' to find good deals, they are all around you. You may be asking yourself, why would anybody sell a $110,000 property for $100,000?

Value: Making money when you buy. The reasons are endless as to why a quick sale is desired, but just to name a few: job relocation, divorce, an estate is being settled or maybe a current appraisal onrepparttar 140725 property simply wasn't done prior to selling. By 'finding this deal' you have accomplished two things.

You have added $10,000 to your asset column inrepparttar 140726 form of equity.

You have created additional LEVERAGE for yourself asrepparttar 140727 value of your property increases (a 6-10% gain on $110,000 is better than a 6-10% gain on $100,000!) Remember, you make money in Orlando Investment Property when you buy, not when you sell.

Reason 3: Control: Let's take our assumption one step further. When you buy your $10,000 worth of stocks, what can you do to increase its value? If we followrepparttar 140728 previous assumption, you have invested $10,000 using a 90% mortgage to purchase a $100,000 property that has an actual value of $110,000 because you 'found a good deal'. So what can you do to further increaserepparttar 140729 value of your new $110,000 property?

Orlando Investment Property

Written by Lisa Carson


What arerepparttar Top 11.5 criteria for selecting an Orlando Investment Property

1. Make sure units are larger than 1800 square feet. This will ensure your customers can move around withinrepparttar 140703 villa and have that feeling of spaciousness while on vacation in Orlando. When large families feel cramped,repparttar 140704 enjoyment ofrepparttar 140705 vacation experience is impacted.

2. Make sure cost per square foot is near $140. This will ensure you are getting a current market cost to value which is great value inrepparttar 140706 Orlando FL market as of June 2005.

3. Make sure offer flexibility in floor plan. Some investments offer lock out rooms which are single rooms forrepparttar 140707 business traveler who is seeking a place to stay but also offers luxury resort amenities. This also makes it better for you when you use your unit. The lockout allows you to use only what you need while rentingrepparttar 140708 rest. The lockout also appeals torepparttar 140709 rental market as there is demand for four and five bedroom units. These units are ideal for a golf foursome or perhaps families traveling together. Your rental property can accommodate these larger groups when we rent outrepparttar 140710 entire unit. This gives you an advantage inrepparttar 140711 rental market.

4. Make surerepparttar 140712 lockouts have central air and a kitchen. You don’t want a room without television and air conditioning. Both are important forrepparttar 140713 business and single traveler and are important torepparttar 140714 property investor.

5. If possible, find sale leaseback program over standard real estate investment option. This ensures your property investment is rented out forrepparttar 140715 entire 52 weeks which ensures a consistent cash flow each month. This also provides approximately 10% return and allows you as investor to operaterepparttar 140716 Orlando property investment as turnkey with very little effort needed to runrepparttar 140717 resort. Each facet ofrepparttar 140718 property management and marketing is handled using sale and leaseback method.

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