Tax-Breaks

Mortgage Loan Interest. This is one of the best tax breaks your home has to offer. In the early years of a loan, interest payments constitute a large portion of your mortgage payments. Mortgage interest on a maximum of $1 million in mortgage debt secured by a first and second home is tax-deductible. This level applies to joint filers; if you file single or separately, you get half of the deduction. Home equity loan interest is also deductible, but is limited to a much smaller amount.

Points. You can fully deduct points associated with a home purchase mortgage. You can also deduct refinanced mortgage points, but only when they are amortized over the life of the loan. If you refinance a second time, the balance of the old loan’s points from a refinanced loan provides an immediate write-off, as you begin to amortize the new points.

Home Improvement Loan Interest. Interest on a home improvement loan is also deductible, but is calculated differently from interest on your mortgage. You can deduct all of the interest on a home improvement loan if the work is a capital improvement (improvement that adds value to your home, adapts it to new uses, or prolongs its life) rather than repairs, maintenance or cosmetic. You can only get tax benefits from repair work when you sell your home, unless you get a home equity loan to make the repairs.

Property Taxes. Any property or real estate taxes are fully deductible. If you receive a city or state property tax refund, your federal property tax deduction will be reduced by the same amount.

Capital Gains Exclusion. Provisions in the Taxpayer Relief Act of 1997 allow married taxpayers who file jointly to retain up to $500,000 of profit on the sale of a home used as a principal residence for two of the prior five years tax-free. Again, the amount is halved for taxpayers who file separately or as a single. This tax breakcan be used as often as you qualify.

Selling Costs and Capital Improvements. When you sell your home, your taxable capital gains can be reduced by the amount of your selling costs, including title insurance, real estate commissions and legal, advertising and inspection fees. Decorating or repair costs, such as painting, planting landscaping or cleaning carpets, are also considered selling costs if they are incurred within 90 days of the sale and with the intention of making the home more sellable.

Moving Costs. If you have to move for a job, your moving costs may be at least partially deductible. You must, however, move within one year of starting your new job, move 50 miles farther from your old home than your old job was, and work full-time at the new job for 39 of 52 weeks following the move. Deductible costs include storing your household goods and travel and transportation costs.

Energy Tax Credits. Although not available this year, the Energy Policy Act of 2005 introduced tax credits for upgrading features of your home to energy-efficient models or materials. Up to $500 in 2006 and 2007 is available if you upgrade yourheating and air conditioning, caulk leaks, add insulation, install energy-efficient windows or other improvements that combat energy waste. Certain qualified solar energy and fuel cell systems can earn you tax credits of up to $2,000. You can also earn a tax credit for purchasing a hybrid or other energy-efficient vehicle. Keep in mind, however, that some states offer rebates or tax credits that can reduce the federal credit.

Home Office Deductions. If you have a home office that is used exclusively for business, you could deduct a portion of the costs related to that portion of your home, including a percentage of your insurance and utility costs, among other things.

Mortgage Tax Credit. Qualifying low-income, first-time homebuyers can take advantage of Mortgage Credit Certificates (MCCs) that allow them a credit of up to 20 percent of the mortgage interest payments made on their home. The credit is available each year you live in the home purchased with the certificate, with the same loan. Instead of reducing your income, this credit is subtracted from the amount of income tax you owe.

5 Tips-Equity

Getting a Good Rate Unfortunately, the tale everyone has been telling is true; an awful lot depends on your credit score. You can expect to get the following rates based on the following credit score boundaries: Good Credit > 760 ½ point below prime OK Credit 700-759 prime Poor Credit < 700 anything from 1 to 5 points above prime.

Paying Minimal Fees Certain fees, such as recording fees and annual account fees are to be expected, but they should not be extravagant. Other fees, such as application or appraisal fees should be avoidable if you have decent credit. Make sure you are aware of all the fees getting tacked on to your loan, and that nothing is out of the ordinary.

Tax Rules If you have enough deductions to make itemizing your deductions worthwhile, then obviously being able to also deduct the interest portion of any new line of credit is a good thing. However, if you do not have enough deductions, then it is possible that other loans will actually give you a better rate. The bottom line is shop around, and do not be fooled into thinking tax deductions automatically make this the way to go.

Understanding the Consequences Getting a new home equity loan or line of credit can be an excellent way to solve some tricky financial issues - as long as you are aware of what the consequences are. By borrowing on the equity in your home, this reduces the amount that can be used to buy your next home, or can be used for your retirement when it comes time to move to somewhere smaller.

20% Rule Another consequence of tapping into your home equity is that you are nibbling away at a source of savings that can be used in times of emergency. A sensible rule to try and abide by is to always have the total of yourmortgage and home-equity loans not to exceed 80% of the value of your home. This leaves you at least 20% of the value of your home that can be used if there is an emergency. Everybody’s situation is different, and there is no easy answer as to whether getting a home equity loan is right for you. However, by understanding your situation and the reality of home equity financing, you can discuss your situation with a home equity loan expert, and determine the right course of action for you!

Rejected-Loan-Application

Applying for too much money. If you are in denial about what you can really afford, your loan application might be rejected in mere seconds. Instead, let the lender decide what you can afford to borrow and then decide what you can afford to pay each month. When looking to buy a house, you should get preapproved with a carved-in-stone preapproval that guarantees a loan amount, interest rate and other loan terms.

Bad preparation. Get all your ducks in a row before applying for a loan. You will need an avalanche of documents, so get as many as you can ready to go. Include pay stubs, investment statements, tax returns, current and past addresses and bank statements.

Lack of understanding. Many loan applicants will need loan programs and terms explained. Your lender can help you understand the array of loan terms you may not be familiar with. This will help you become savvier about and involved in the process.

Lack of understanding, part II. Understanding loan jargon is the first step. You will also need a working knowledge of what happens during processing, underwriting and closing. This is crucial to making sure that everything goes your way and goes smoothly. You also need to understand time frames, responsibilities of all parties and documentation needs. Make sure you get a Good Faith Estimate of your closing costs to ensure you understand what you will need to pay. This is also a good reference to use to gauge if everything is as it should be.

Third-party problems. Unfortunately, the multiple parties who will need to coordinate your loan may not always be in sync. Although credit reports and appraisals are typically on time, investment reports, tax returns and home inspections may require extra effort on your part to meet deadlines.

Self-employment. Although being self-employed is not a problem in itself, you will need more documentation to apply for a loan. If you work at home, are paid on commission only or own 25 percent or more of a business, you are self- employed. You will need to show past years’ tax returns as proof of income and communicate your employment status before initiating the lending process.

Property repair problems. If you have a government loan on a home in need of repair, you will need to come with instructions explaining who will be responsible for repairs and when the repairs will occur. You can ask your lender for assistance on this.

Unexplained credit problems. One of the most important things to do before applying for a loan is to check your credit report. You will need to check for any errors that can be corrected, problems you need to explain or delinquencies you can clean up.

Unverified closing funds. If you need to pay a sum at closing, such as a down payment, you may need to show bank statements or other financial documents proving you have the funds, showing how long they have been in place, etc.

Poor communication. There are many parties involved in any real estate transaction, including the buyer, seller, real estate agents, lender, home inspectors, attorneys and possibly many more. Each person must have a good understanding of what is going on during the process. A good lender or real estate agent is crucial to making sure everything goes well. Bad communication can mean that the deal falls apart.

More-Salable-Tips

Dump the junk. Less clutter in your home makes it look bigger, roomier and cleaner. Go through your home and make piles of items, such as “garbage,” “charity” and “maybe.” Throw away anything useless, give away anything that may still have use and seriously consider the maybes, such as how long it’s been since you’ve used the item and whether it’s broke or damaged.

Price it right. A home that is priced well above the local market or above similar homes will not sell quickly, or possibly at all. Work with your agent to price your home correctly the first time.

Find the best. Having a good real estate agent or broker can make all the difference in the world when the market becomes more competitive. An agent who knows how to market and advertise your property, and who has good experience and connections, will be an invaluable asset. Interview real estate agents and ask for references.

Require a marketing plan. When you decide upon an agent, make sure that he or she develops a customized marketing plan that fits you and your property. The standard approach may not work for every property.

Change the deal. If your home isn’t selling within a decent time period, consider changing the deal instead of lowering the price. For example, instead of lowering your asking price from $500,000 to $480,000, keep the $500,000 but offer a 2 percent “seller contribution” to help pay for closing costs. This saves you money (you pay $10,000 in closing costs rather than a $20,000 price reduction) and is very appealing to many buyers.

Get a HELOC. Having a home equity line of credit (HELOC) in place can help you, even if you’re not planning to sell your home for several years. This way, you’ll have funds available if you want to buy another home while your current home is on the market. Be aware, however, that if your current home doesn’t sell in a reasonable time period, you may be saddled with multiple mortgage payments.

Fix it. Buyers will ask for a home inspection. You’ll save time by getting a preliminary home inspection yourself and making repairs before putting the house on the market. However, if a repair is requested from a potential buyer, it may be cheaper than finding a new buyer.

Ask for feedback. Find out what potential buyers thought after a showing or open house. Take negative comments as constructive criticism, which you can use to make the next showing or open house better.

Beware of the take back. Watch out for buyers who want you to take back financing. When loans are available everywhere for little or nothing down, don’t go into the banking business when there is less risk to you with an outright sale.

Ignore inconvenience. If a potential buyer wants to see the house at 7 a.m. on Saturday morning, so be it. This is a time where you have to be flexible. It is better to show flexibility and have the house seen than to turn away potential buyers

First-Steps-For-Buying

You have been thinking about it for a while, maybe even gradually saving up for a down payment, when, finally, it dawns on you: you are ready to buy your first home. Since you obviously haven’t done this before, you may be asking yourself, “What now?” It may not be clear to you now, but the first few steps after making this big decision are critical to the success and enjoyment of the process.

According to real estate broker Jim Stacey in his book Washington Homes, there are three stages for first-time homebuyers: contemplation, comparison and commitment. Stacey proposes that homebuyers navigate through the first stage on their own, and that the more preliminary work you do, the easier the process will be for you and your realtor.

The first step is obvious: figuring out whether you are ready to own a home. This does not only mean that you are financially capable of owning a home. It also includes psychological and emotional readiness, as buying a first home is a huge step for most people, as well as a huge commitment and responsibility.

One of the easiest and most valuable things you can do to prepare is obtaining a copy of your credit report and making sure that lenders will like what they see. The Web site, ConsumerInfo.com, offers this service for free, as do many other sites. If your credit report is less than stellar, it is probably a better idea to continue renting while you pay off debts and investigate questionable problems.

Once you are sure that you are ready financially, emotionally and psychologically, you can start the formal process of buying a home. Before going to a realtor, it is an excellent idea to figure out exactly what you want so he or she can make the best use of his or her time and skills. Keep in mind that what you end up with may not resemble the vision you created in the beginning. However, it is a good idea to come up with a “wish list” for a few basic items, including number of bedrooms and bathrooms, neighborhood, yard or garden, age of home, parking, potential resale value, storage space, style, proximity to friends, family or a city or town and property taxes. Obviously, this list can go on and on. It is just important to prioritize characteristics of a house for you, and then define exactly what you want from each characteristic.

Next, you need to find out what you can afford. The easiest way to do this is to find out what you can afford to pay monthly after you have made your down payment. The best way to do this is to visit a lender and get prequalified for a loan. It won’t cost anything, it will give you a good idea of what you can afford and it saves you time later. Keep in mind, however, that you will often qualify for more than what you might wish to spend each month. Think carefully about whether what you have prequalified for will allow you to maintain your current lifestyle, at least for the most part.

You will also need to remember that you will need extra cash to cover closing costs, inspections and future expenses. After all is said and done, the cost of the home will probably be 2 percent to 7 percent more than the agreed upon selling price. You also need to factor in the cost of insurance, annual property taxes and maintenance and repairs. In short, there is a lot more to buying a house than simply the price of the home. So you don’t get discouraged, remember that a first home is very rarely a dream home. Your dream home may be two or three houses away, and you do not want to alter your lifestyle significantly now just because you are overeager.

You now know that you are ready to buy a home, you know what you can afford – it’s time to look for your house! It is especially important to have a realtor during your first buying experience, as he or she can guide you through the process and help you when you’re stuck. To find an agent, start interviewing based on recommendations from friends, family and coworkers. A great realtor will be able to listen to your needs and match you with the perfect home for your price range. He or she should also be able to provide referrals to other professionals, such as lenders and inspectors, who can help along the way.

You should also be sure to talk to friends and family about their real estate experiences, as you may learn some valuable tips or find out what pitfalls to avoid.

When you begin actually looking for a home, go to as many open houses as you can stand, even if your broker is not available. (Just be sure to sign in under your broker’s name.) Be sure to include some houses that you couldn’t afford and some houses that are lower than what you could afford. This will help you zero in on what you want by getting an idea of what’s out there. If you get so tired of seeing peeling linoleum and pasty pink bathrooms that you are ready to give up and rent for the rest of your life, take a day or two off, and remind yourself that your home is out there, somewhere. It just takes time to find it!

Smart-investing

A primary home is most important. Buying your own home gives you a place to live and teaches you the cost of home ownership, financing and market conditions. You will also learn about property maintenance and build your own network of professionals who can prove to be invaluable when investing. Finally, your first home could later turn into your first investment property!

More knowledge is better. Being a savvy investor takes more than just buying up promising properties. Having a good knowledge base will go a lot longer than a “sixth sense” for good deals. The Internet, books by reliable authors, investment groups and college courses are all good resources to learning the best investment practices. You can also tap into other successful real estate investors or real estate agents for information. Make sure you use more than one resource so you can evaluate the viability of the information you gather.

Professional help may be necessary. Although you may not think you need help, a trustworthy, honest professional may be the partner you need. Realtors can be especially helpful if you are new to investing, and management companies may take the pain out of property management. For instance, managing a rental property takes a lot of time, and you will need to be prepared to make repairs, resolve issues and advertise for renters if you are taking on the task yourself. In the long run, a management company may be just what you need. Use the referrals of friends, family and associates to find reliable, honest professionals to help you.

Know the market inside and out. Before you invest, investigate the local market thoroughly. There is no universal real estate “bubble.” Each market is different, and experiences different fluctuations and trends. One market may be good for rental income but not appreciation, while another market may be excellent for appreciation but poor for rental income. There are endless variables, and it is important for you to know exactly what you’re getting into. Remember that one area is never the same as another area.

With these basic tips under your belt, you are ready to venture out into the investment landscape. Gather as much knowledge as you can, and, after that, happy investing!

10-deal-wreckers

Not understanding the length of the process. Buyers and sellers often err in thinking that the home buying or selling process is shorter than it is. There are a thousand things that can hold things up – sellers can be slow on formally accepting an offer, buyers have trouble selling their old house, financing is held up, repairs need to be made, etc. Make sure to allow two to three extra months to complete the deal.

Tipping your hand. As with any negotiation, not having a good poker face can ruin the deal for you. Try to contain your enthusiasm for a house, as sellers and their agents can try to take advantage of it. Also, don’t let your love for a property cloud your good judgment.

Assuming the appraisal and the actual value are one in the same. Yes, appraisals are meant to be objective estimates of value. Different appraisals can come up with different results. Sellers should have their agent perform a comparative market analysis to get a better idea of their home’s true worth before putting it on the market, while buyers should request a similar service from their agent.

Skipping loan preapproval. This is a crucial step for buyers, and one that may seriously affect your chances of getting a good home quickly. Obtaining preapproval for a mortgage will give you a better idea of how much you can safely borrow, and will allow you time to correct any problems. It also marks you as a serious buyer, and sellers with a potentially hot property should never settle for anything less than proof of preapproval.

Trying to time the burst of the bubble. Trying to time a purchase or sale with when the real estate bubble is going to burst is nearly impossible. And, in most parts of the country, the bubble is still intact. In reality, real estate bubbles don’t “pop” anyway: they deflate and then inflate again with market fluctuations. Buyers and sellers should realize that real estate is always a long-term investment.

Living outside of reality. When buying a home, if you only follow your heart, you may be in for some nasty surprises later on. Your dream home may be your dream home, but make sure to consider the big picture, including the commute, area schools, taxes, homeowner association and other quality-of-life-affecting aspects of home ownership. That fantastic house may not be worth the other trouble it creates in your life.

Hiring the wrong real estate agent. This one can really affect the buying or selling process. Always interview several agents, and make sure to obtain references. Don’t only look at large companies or top-producing agents. Also, seriously think before hiring a friend or family member who is an agent. Remember also that an agent who suggests the highest listing price or has the lowest commission is not necessarily the best choice. If you remember the mnemonic SEED – smart, empathetic, experienced and dedicated – you will usually be happy with your agent.

Not knowing the contract. Since the contract is a legally binding document, not knowing what you’re signing can be a very big mistake. Review it carefully before signing, and make sure it contains everything it should, including who is paying for what and any verbal commitments. Make sure your agent takes an active part in the construction and negotiation of the contract. This is one step that can cause you large amounts of time and heartache if done wrong.

Timing the transaction incorrectly. As you may imagine, two mortgages can be extremely difficult to manage. If you are selling your current home and buying another home, keep in mind that the sale of your current home is the most important transaction. If you have a choice, secure the sale of your old home before you sign a contract for the new home.

Not doing a criminal search. Agents in many areas of the U.S. are not obligated to tell buyers if there is a sex offender or other criminal residing in the neighborhood. Ask your agent to provide you with this information, if possible, and also do your own research. Check with the local sheriff’s office to find out how to access sex offender and other criminal databases.

10 Top Notch Link Building Tactics for Real Estate Websites

Its a thing of beauty really, staring at that blank slate and just waiting for your very first backlink to show-up, almost as if its the first star in an evening sky. Once you see it there, glittering on your dimly lit screen, you know that you’re well on your way. Every web entrepreneur has experienced this at one point or another, and don’t you forget that every website was, at one point, new to the Internet. So forget about what all of those so called “seo gurus” are saying. Link building is an art form in which we can all create a masterpiece, not just the artists themselves.

Link building, as with any seo(search engine optimization) technique should be used in conjunction with other techniques to create a harmony between your website, your visitors and of course the search engines. If you can find a common middle or a balance between these three very different, yet very important parties, you will have mastered the art of seo.

When Link Building and Real Estate Meet in the Middle

Simply uploading a website into cyberspace isn’t enough to be successful in any niche, but it especially won’t help us real estate webmasters. Real estate is one of the most competitive niches online and as if that were not enough, it is heavily abused by spammers as a means to make an easy buck. Due to the sheer number of spam websites that float to the top of many real estate search terms, web searchers, webmasters and even search engines have begun to grow weary of new real estate websites. This means that you will have to work diligently to create and possibly even more challenging, maintain a professional and credible profile for your business.

There are numerous factors that may effect the way your business projects itself across the Internet. The obvious factors are the professionalism of your website, the manner in which you present yourself to clients, fellow webmasters and so forth, but you may not realize that the links you build to your website also reflect on your business at a professional level. You must understand that everything we do online is traceable. If you use a regular username, people can search that username and find every website that you have publicly participated with, are you comfortable with that? Keep that in mind when you begin to build links aka promote your real estate site, your actions are a reflection of you.

Now lets get right down to the nitty gritty of building a successful real estate website. If you are one of the many misguided new real estate agents hoping to turn thousands of web visitors into home buying machines (that’s clients for you dull people) you may be in for a mental earthquake of sorts. In order to get your website seen by anyone, let alone thousands of people, you are going to have to start building some quality, authoritive links that will present your site to the search engines, think of it as a sacrificial offering to the Internet God’s.

Here are Your 10 Ideas for Building Great Backlinks - To Real Estate Websites of Course!

1. Go where the agents are - When it comes to link building, sometimes you just have to follow the crowd. Chances are that if any particular website or social gathering is already popular with real estate agents, there’s a good reason for it, find that reason! Popular sites like ActiveRain, RealTown, Zillow, Real Estate Voices, WannaNetwork, Zolve and even MySpace, Twitter and Facebook all offer excellent opportunities to get your links out there and visible to the search engines and the public.

2. Snatch up all of your keyword real estate - Alright so you might be wondering what keyword real estate is, so I am going to tell you. Lets say for instance that your primary search term is “Portland Real Estate” , simple enough, but we want to not only target that search term, we want to own it. Every time a person or a search engine finds a page about Portland Real Estate, they should also find a link to your site, so our goal is to gather up as much virtual real estate for that term as we can. Use these examples and then see how many more you can find:

• http://squidoo.com/portland-real-estate/
• http://hubpages.com/hubs/portland-real-estate
• http://portlandrealestate.blog.friendster.com
• http://geocities.com/portland-real-estate/
• http://myspace.com/portland-real-estate
• http://portland-real-estate.spaces.live.com
• http://digg.com/users/portlandrealestate
• http://portland-real-estate.wordpress.com
• http://portland-real-estate.blogspot.com

Are you starting to understand where I am going with the keyword real estate idea? There are literally hundreds, if not thousands of these keyword targeted pages that you could create for free and best of all each one would have quality links directed back to your website. Be sure that you fill these pages with quality, unique content that not only people will want to read, but also that search engines will index. The idea of these pages are to increase your backlinks and drive click through traffic to your site so use them wisely.

3. Make friends and links in the forums - One of the large bonuses we have as real estate webmasters is that there are plenty of real estate targeted forums that we can use to build links and network with other agents. Keep in mind that we are building a professional appearance so you really have to make a valuable contribution each and every time you post in a forum, let your signature line do the selling. There are a bunch of great forums, that offer quality backlinks in your forum signature along with excellent contacts, here are my favorites:

• Real Estate Webmasters
• Bigger Pockets
• Real Estate Forum
• Wanna Network
• Agents Online
• Commercial Real Estate Forum
• Real Estate Discuss

4. You might also try home repair and DIY forums - These can be a great place to meet homeowners and people potentially interested in purchasing a new home. A few of my favorites are:

• DIY Chatroom
• Do It Yourself Forum
• House Repair Talk
• Bob Vila Forum

5. Become part of the conversation - Some people call this blog commenting and various other names, but here is the secret, just think of it as being a part of something bigger. Blogs are designed to create a community, that is why they have options to comment and/or vote for your favorite posts and so on. By commenting on blog posts you are not only adding value to a blog, you are also building that community. One comment inspires others to comment, its a chain reaction and most bloggers appreciate you leaving a good comment now and then. Here is a great list of do-follow real estate blogs to get you started, but remember to contribute.

6. Join the free seo friendly directories - It amazes me that so many agents seem to have difficult time grasping the concept of directory submissions. They are really easy! These days, reciprocal linking is pretty much out the window, Google has caught on and people just aren’t doing it as much any more. So why sign-up for directories that require reciprocal links? You don’t have to sell your soul to get a good link, here is a list of 1600 directories that you can submit to for free.

Have You Tried Building Links Outside of the Box?

You know what I mean. The ideas above are great, they work great and they are an easy way to get quality backlinks to your real estate website, but they are also the same ideas that you have probably heard over and over. So try thinking outside of the box to come up with new links, here are some ideas to get you started:

7. Start a blog on eBay - We are looking for authority sites, right? Well then, one the of the most authoritive sites I can think of is eBay and they will allow their registered members to setup their very own blogs, that you can use to write articles and yes, even post links(wink….wink..). Get your own eBay Blog here.

8. Offer your expertise - You know it surprises me how guest writing is so often overlooked. I am constantly visiting new websites to generate ideas for building links and I rarely ever see this as an option. Guest writing is as easy as sending an email to express your interest and typing up an article. You get quality in-content backlinks for your work and probably make a new friend or contact along the way. I highly suggest this method as a primary link building tool in your arsenal.

Sometimes it can be difficult tracking down blogs or websites that might be interested in allowing you to write for them, but there are some searches that you can try. Run a Google search for some of the following queries, be sure to leave the quotes in place:

• “This guest post was written by”
• “guest writers” real estate
• inurl:real estate “our contributors”
• Looking for “guest bloggers” real estate
• “write for us” real estate
• inurl:real estate “write for us”

9. Post free advertisements for your website - You may not know this, but there are websites that allow you to announce your website to the public. Typically, they will ask you to write a minimum 400 word post with no more than two to three links to your site. There are a bunch of them out there but Free Ad Blog and Free Blog Post will get you started.

10. What about podcasting - If you run a blog, you may be able to jump on the ever popular podcasting bandwagon. How you ask? Simple, Odiogo will automatically convert your past and future posts into podcasts with a simple plugin. Once you have been converted you are ready to start submitting your blog to the thousands of podcasting directories out there.

Link building is much easier than the majority of people make it out to be. Sure it can be boring scouring the Internet for that next link, but its pretty fun when you find it, believe me. Take these ideas and expand on them, see what you can come up with for your next link building campaign.

5 Tips to Becoming an Even Better Real Estate Agent

How many of you wake up each day in hopes of not being successful, please raise your hands. Funny, I’m not seeing any hands raised, yet the greater majority of real estate agents (many of the ones we have worked with in the past) give very little effort towards taking their careers to the next level. Which leads me to my next question.

How many of you go above and beyond what would be considered a “regular” scope of work, to really propel yourself and your business into that mythical, yet wonderful, real estate walk of fame? Ahh, now I can see a few hands raised, though not nearly as many as I would like to see. So lets work on that, shall we?

There are probably a million and one different things that you can do to improve yourself in your career, but what if you had to narrow those things done to the most important five. Five is an easily manageable number that will allow you to dedicate an ample amount of time towards working on each item. Below is our list of five things every agent should work on for their

1. Think of yourself as a success -That almost sounds to simple to be true, but its not, simple that is. Many people naturally find things that they dislike about themselves or their situation and they spend their lives focusing on those. They are in essence creating a bubble of negativity around themselves which acts as a magnet and draws in even more negativity. That vicious circle has to stop, and it can be done. Johann Wolfgang von Goethe once said, “To achieve all that is dreamed, one must think of himself as greater than he is.” and I simply couldn’t invent a better way to put it to you. Once you begin to envision your success, you will become successful.

2. Have a business plan in place - Don’t tell me that you have never pictured selling real estate as a business! Becoming a real estate agent is very much like starting a business and you have to treat it as such if you plan to be a success. I know that the thought of developing a business plan can seem overwhelming, I have done it before, but there are some resources to help make it a little easier. The Small Business Administration offers some information to help you with your business plan and you may also want to check out this free business plan outline to get you started.

3. Market yourself to the fullest - Marketing your real estate business is crucial if you plan to succeed in this cutthroat industry. We often find that the number one thing separating an average real estate agent from an extraordinary real estate agent, is exposure! Whether it is online or offline you have to devote your energy towards marketing your business(see tip #2 above).

4. Don’t be afraid of trying new ideas - Trying new techniques and ideas can really give you an edge in the real estate industry. There is a constant stream of new tools, information and resources being handed to real estate agents, you just have to be willing to try them. It is true, that sometimes while trying new things you can shoot yourself in the foot so to speak, but on the other hand, that new idea could revolutionize the way that you sell homes and increase your income ten fold, so is it worth a shot?

5. Be yourself - I know this landed at the bottom of the list, but it may be the single most important piece of advice you will ever here. I am not sure why, but many agents feel that they need to put on a persona in order to sell houses, don’t do it. Chances are that your clients can tell when you are putting on a show, and as soon as they realize it, they are out the door. Be yourself, be sincere and genuinely try to help people, your business will thank you.

Tips For Real Estate Investors

Real Estate Investors Association's 20,000 affiliated members were double the previous year's numbers, but even at 20,000 represented only about one fourth of all U.S. real estate investors in investment clubs, the association said.

While the investor purchase portion is 23 percent, other second home buyers who become aware of the potential for a return on their property may very well take a more speculative approach. The second home market now accounts for 38 percent of the existing housing stock and 36 percent of all homes purchased last year, NAR said.

"These aren't second homes. You know where that down payment is coming from. People are leveraging one price asset against another on a pure momentum play," said Robert M. Campbell, a San Diego-based realty broker, investor and author of "Timing The Real Estate Market."

Residential real estate investors have become a driving force in the residential real estate market -- much as the dot com stock market did to create the New Economy and the longest economic expansion on record.

But just as the dot com bust littered Wall Street with lost shirts, a real estate down turn could leave blood red ink flowing down Main Street if rookie investors let the lure of green cloud their judgment.

We talked to individual investors, real estate agents who also invest, investment clubbers and others to help get you started with the dos and don'ts of real estate investments.

Here's what they suggest.

Buy your own home first. Buying a home will not only put a roof over your head, but teach you the true cost of property ownership beyond the monthly mortgage payment, give you a primer on financing, school you on how location and changing market conditions affect property values, give you the angle on tax and other home owning benefits, help you learn about property maintenance, introduce you to a host of professionals who could prove invaluable when you really get into investments and otherwise act as a prerequisite foundation for higher studies in real estate investments.

Even before home ownership the process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more -- your first home could later become your first investment property, a property in a market with which you are familiar.

"I bought my first house on May 1, 1981. The property became a rental in February 1988. Technically it was 50 percent a rental in June 1981 as I shared the house to afford it," said Richard Calhoun, broker/owner of Creekside Realty in San Jose, CA, and a real estate investor for nearly two decades.

Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't automatically make you a savvy investor any more than the dot com boom could have made you a stock market mogul. After you buy your own home turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses. Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources, both for information and perhaps as a mentor.

Using more than one resource will help you cancel out the bad information and ferret out the good.

"The importance of knowledge and education cannot be overestimated and is almost always underestimated," said Calhoun.

Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate. Someone who already knows the ropes comes in handy when you need a leg up on a deal.

"There are many honest and reliable outfits and clubs that are genuinely beneficial to those looking to increase their knowledge. That's one of the good things about a club -- you get to ask other people whose information is good and whose is garbage," says Phyllis Rockower, founder of the Real Estate Investor's Club of Los Angeles.

You'll also need professional help once you are beyond the buying stage -- someone to manage your investment for example.

"For many, the question of managing rental properties is resolved by the proximity to the property and the willingness on the part of the owner to invest the time required to market and manage the property. Often, it makes sense for those far away to take advantage of a "local" property manager. The rewards of self management may be great, but one needs to consider the time investment required," said Bart Meltzer, president of RentOne Online, a Scotts Valley, CA, Web-based marketing and management tools provider for vacation rental managers.

Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but not appreciate, while another home in another market won't bring you enough rent to cover your expenses but appreciate more than enough to make up for it over the long term. The variables are endless.

7 Tips to Real Estate Agents' Success

With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations.The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.

1. First and Foremost YOU are a business. Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.
2. Embrace a Planning Attitude If you don't have a plan, then you are on some else's plan - usually the successful real estate agent's. During the last 10 years, what I have learned as a performance improvement consultant or coach is that most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.
3. Research Your Market Plan Since you, as the real estate agent, are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.
4. Establish Sales Goals Using your strategic plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.
5. Create a Financial Budget Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.
6. Make Managing Yourself a Priority Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate business training coaching, continuing education units, and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.
7. Find a Mentor or a Real Estate Coach Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the "peaks and valleys." If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help and sales.