We want to share a few of our favorite methods for finding deals. First and foremost, we're here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don't know what to say.
It's simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property and you'd like to help. NEVER mention the "F" word--foreclosure. Ask them if they took care of it.
Typically they say, "yes." Ask what they did (filed an answer, sold it, brought the back payments current, what?). You can tell by the blank look on their faces that they haven't taken care of anything. Offer your assistance and move forward with your deal.
Monday, March 29, 2010
Friday, March 19, 2010
Assocham Ask Govt. to with draw Tax on Real Estate Sector
Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete.
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,”.
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,”.
gurgaon mumbai emerge as top residential destination
Gurgaon and Mumbai have emerged as the top destinations for residential investment in the country. Both have seen a massive infusion of commercial and retail space owing to residential demand, which in turn was spurred by a growth in employment opportunities, according to the fourth quarter Asia Pacific Property Digest by global real estate consultant Jones Lang LaSelle. The residential market in both the regions witnessed a price correction of 25-30% from their peak values which presented opportunities to end-users and investors alike.
Despite being hit hard by the recent turmoil, the residential sector of the crisis-torn Indian real estate industry has emerged as the sole bright spot for individual investors, the digest ranked Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata behind Gurgaon and Mumbai. The six cities, which are witnessing an influx of IT/ ITeS employees, also provide residential units at affordable prices. However, infrastructure continues to remain a concern across most of these cities as it is unable to keep pace with the growth in population. With the exception of Bangalore, oversupply will be a concern in the short term due to large number of projects launched over the past 3-4 quarters. Read More »
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,” it said.
Despite being hit hard by the recent turmoil, the residential sector of the crisis-torn Indian real estate industry has emerged as the sole bright spot for individual investors, the digest ranked Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata behind Gurgaon and Mumbai. The six cities, which are witnessing an influx of IT/ ITeS employees, also provide residential units at affordable prices. However, infrastructure continues to remain a concern across most of these cities as it is unable to keep pace with the growth in population. With the exception of Bangalore, oversupply will be a concern in the short term due to large number of projects launched over the past 3-4 quarters. Read More »
Assocham Asks Govt to Withdraw Service Tax on Real Estate Sector | March 19, 2010
Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete.In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,” it said.
Big developers Partner with local Developers to Complete projects Quickly
Hyderabad-based PBEL Property Development (India) Ltd has a new strategy to break into unfamiliar markets: partner with local developers to complete projects quickly. The realty firm wants to divide its 42 acres on Old Mahabalipuram Road off Chennai into four or five portions, each of which will be handed over to local developers for building residential apartments. “We don’t know much about the Chennai market and think it’s a good idea to bring in people who have the knowledge,” said Anand Reddy, director of PBEL Property, which has a project pipeline mostly in southern India. “Of course, we will keep a portion of the land which we’ll develop ourselves.”
A number of large developers are similarly forming joint ventures (JVs) or special purpose vehicles with smaller, local developers for specific projects on a revenue-sharing model. “We will see more developers getting into such JVs depending on what the local partner brings to the table,” said a senior research analyst at First Global Securities Ltd, who didn’t want to be named. “It could be land, local domain knowledge or even good building capacity.” Mumbai-based developer Sunil Mantri Realty Ltd, for instance, prefers local partners with the potential to speed up projects by procuring building approvals and helping in the conversion of land status quickly—often, the most time-consuming aspects of development.
A number of large developers are similarly forming joint ventures (JVs) or special purpose vehicles with smaller, local developers for specific projects on a revenue-sharing model. “We will see more developers getting into such JVs depending on what the local partner brings to the table,” said a senior research analyst at First Global Securities Ltd, who didn’t want to be named. “It could be land, local domain knowledge or even good building capacity.” Mumbai-based developer Sunil Mantri Realty Ltd, for instance, prefers local partners with the potential to speed up projects by procuring building approvals and helping in the conversion of land status quickly—often, the most time-consuming aspects of development.
MUMBAI BUILDERS FUCUSING ON LUXURY FLATS TARGETING N.R.I.COSTUMERS
Mumbai developers seem to have given up on housing for the middle-class. If you thought the realty revival in the city would come through middle-level affordable housing, you cannot be more off the mark. Most new launches are looking at the Rs1-crore residential houses project.
Take Kalpataru developers — it is building a 750-unit project — Kalpataru Aura — in Ghatkopar. The project launched a couple of months ago has properties in the price range of Rsl.25 crore to Rsl.50 crore. Its Malad project, Kalpataru Pinnacle, will have 80 exclusive apartments, each priced at around Rs3 crore. Lodha Developers has launched a 42-storey apartment building, Lodha Imperia, at Bhandup, with flat prices inching towards the Rs1-crore mark. The target audience of these builders is apparently NRIs from Europe and the US.
Take Kalpataru developers — it is building a 750-unit project — Kalpataru Aura — in Ghatkopar. The project launched a couple of months ago has properties in the price range of Rsl.25 crore to Rsl.50 crore. Its Malad project, Kalpataru Pinnacle, will have 80 exclusive apartments, each priced at around Rs3 crore. Lodha Developers has launched a 42-storey apartment building, Lodha Imperia, at Bhandup, with flat prices inching towards the Rs1-crore mark. The target audience of these builders is apparently NRIs from Europe and the US.
Transport Corp Approves Demerger of its Real Estate and Warehousing Undertaking
Logistics company Transport Corporation of India Ltd India’s on Wednesday announced that its board has approved the demerger of its real estate & warehousing undertaking into a new company namely TCI Developers Limited (TDL).
The demerged entity would have properties and investments with a book value of Rs50 crore, the company said in an emailed press statement. The company presently has real estate properties in metropolitan and tier two cities including Delhi, Chennai, Pune, Nagpur, Bangalore, Ahmedabad among others.
The demerged entity would have properties and investments with a book value of Rs50 crore, the company said in an emailed press statement. The company presently has real estate properties in metropolitan and tier two cities including Delhi, Chennai, Pune, Nagpur, Bangalore, Ahmedabad among others.
STATE BANK OF INDIA IS THE BIGGEST PLAYER IN THE HOME LOAN SECTOR
With the teaser rate tenure coming to an end, it is time to gather the market share earned by the different players during the reign. Of the total amount of Rs. 45000 crore lent as cheap loan, SBI seems to have gathered the biggest chunk of the pie by sanctioning a colossal 67% of the total loan amount offered during 2009. The trump card used by the banking sector this year has been the teaser home loan rates. SBI has lent a prodigious amount of Rs. 30,000 crore this year as a part of the teaser loan regime. HDFC has secured a distant second position with a total sanction of Rs. 9,000 to Rs. 9,600 crore under the home loan segment.
Teaser loans from other banks however did not receive such good response. While Bank of India could sanction only Rs. 289 crore in a time frame of seven months, Punjab National Bank, IDBI Bank and Union Bank disbursed nearly Rs. 1,050 crore, Rs. 1,500 crore and Rs. 1,600 crore respectively over a time span of six months. Many banks had stopped the teaser rate regime after the RBI announced a hike in the cash reserve ratio by 75 basis points. Despite the varied response received by various banks on sanctions, all banks seem to be happy by the results of teaser rates. Manju Srivatsa, President - Retail Banking, Axis Bank, says, “From what we had been doing before we launched fixed rate scheme, we were able to do 40% more sanctions and 35% more number of loans which is a good number.”
Teaser loans from other banks however did not receive such good response. While Bank of India could sanction only Rs. 289 crore in a time frame of seven months, Punjab National Bank, IDBI Bank and Union Bank disbursed nearly Rs. 1,050 crore, Rs. 1,500 crore and Rs. 1,600 crore respectively over a time span of six months. Many banks had stopped the teaser rate regime after the RBI announced a hike in the cash reserve ratio by 75 basis points. Despite the varied response received by various banks on sanctions, all banks seem to be happy by the results of teaser rates. Manju Srivatsa, President - Retail Banking, Axis Bank, says, “From what we had been doing before we launched fixed rate scheme, we were able to do 40% more sanctions and 35% more number of loans which is a good number.”
bank seek clarification from R.B.I.on new intrest rate system
Commercial banks are concerned over the Reserve Bank’s new interest rate system under which lending rates are to be linked to a base rate. They are seeking clarifications in an attempt to de-link home loans from the plan. This is because the expected base rate of around 8.5 to 9.5 per cent could lead to home loans being offered at 10 per cent or more. At present, home loans are available at 8.5 per cent for start-up customers at “teaser” rates offered by some banks.
Bankers say home loan rates must be kept at affordable levels for consumers. “Though most concerns over the implementation of the new system have been addressed by the Reserve Bank of India, certain more clarifications are awaited,” the chairman of a public sector bank told Hindustan Times. Bankers say “teaser” rates to lure customers should be discontinued, but add that lending rates cannot be unreasonable either. “Affordable housing is an important issue and we are yet to get clarification from the central bank if home loans would also be linked to the base rate,” said M S Sundara Rajan, chairman and managing director, Indian Bank.
Bankers say home loan rates must be kept at affordable levels for consumers. “Though most concerns over the implementation of the new system have been addressed by the Reserve Bank of India, certain more clarifications are awaited,” the chairman of a public sector bank told Hindustan Times. Bankers say “teaser” rates to lure customers should be discontinued, but add that lending rates cannot be unreasonable either. “Affordable housing is an important issue and we are yet to get clarification from the central bank if home loans would also be linked to the base rate,” said M S Sundara Rajan, chairman and managing director, Indian Bank.
Real Estate-Looking to De-merge Non-Core Bussiness
Unitech Ltd, the second-largest real estate developer in the country, is looking to de-merge its non-core businesses in order to focus only on real estate, a source familiar with the development said. The company’s non-realty businesses include construction, special economic zones (SEZs), power, telecom and hotels. The company plans to unlock value through private equity investment or outright sale, the source said.Details such as valuation or the interested companies could not be ascertained immediately and a Unitech spokesperson declined to comment.
The New Delhi-based developer has been trying to sell its telecom tower-making business, based near Nagpur in Maharashtra, for about Rs 700 crore as part of the de-merging plan. This arm initially operated through a tie-up with Hyundai. Unitech acquired Hyundai’s stake some years back. Unitech has also been planning to sell its non-core assets like hotels, commercial properties and land plots.
The New Delhi-based developer has been trying to sell its telecom tower-making business, based near Nagpur in Maharashtra, for about Rs 700 crore as part of the de-merging plan. This arm initially operated through a tie-up with Hyundai. Unitech acquired Hyundai’s stake some years back. Unitech has also been planning to sell its non-core assets like hotels, commercial properties and land plots.
Property News on 'Real Estate India
india will unveil a single policy for foreign direct investment, including in sectors such as financial services, insurance and banking by March 31, Commerce and Industry Minister Anand Sharma has disclosed. After 3 days of discussions with senior administration officials, Sharma acknowledged that “it’s true that we were slow off the block when we started the process of economic reforms and liberalization,” but asserted in the past few years, “it would be appreciated that India has moved much faster.”
“India works on a very small negative list and the FDI which comes into India - the majority of the sectors - are in the automatic route,” he said. Sharma argued that for all of the criticism and whining, “When you look at the pace at which some of these sectors - financial services, insurance and banking - have been opened, then India has done far better than many of the countries, including in Europe and here, in these sectors.” He pointed out that “you have more US bank branches in India. You have more British bank branches in India, or for what matter, of the other countries, and there are partnerships of the major insurance companies with the premier insurance companies in India.
“India works on a very small negative list and the FDI which comes into India - the majority of the sectors - are in the automatic route,” he said. Sharma argued that for all of the criticism and whining, “When you look at the pace at which some of these sectors - financial services, insurance and banking - have been opened, then India has done far better than many of the countries, including in Europe and here, in these sectors.” He pointed out that “you have more US bank branches in India. You have more British bank branches in India, or for what matter, of the other countries, and there are partnerships of the major insurance companies with the premier insurance companies in India.
Tuesday, March 16, 2010
Five Tips for Finding Great Real Estate Deals
It stuns us how many investors say, "I can't find any good deals." Folks, you're not looking! There is an abundance of deals out there, but you have to actually work to find them. We think that many new investors (who watch too much late-night TV) are under the impression that if they decide to become investors, the "investor fairy" will drop deals out of the sky.
Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine-to-five rut and bound by the bosses' rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
You will make as much money as you are willing to work for. Our question for you is: How much are you willing to make? The sky is truly the limit. The bottom line is this: There are thousands of deals out there. If you don't make the effort to find them, other investors will.
Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine-to-five rut and bound by the bosses' rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.
The oldest method in the book: Knocking on doors
What about postcards?
Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge?
Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge, and the typical investor doesn't tap into it. NEVER be typical.
Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge, and the typical investor doesn't tap into it. NEVER be typical.
What about mailing lists?
Have you ever considered buying a mailing list and "farming" neighborhoods? It works for Realtors; why won't it work for you! We buy lists by the zip code and mail where we want to own property. won't it make sense to have several properties for sale in the same area opposed to all over the county?
How about phone calls?
How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.
Do you run ads in newspapers?
Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year's worth of ads? One? We'll give you a little known tip: Place your ads under "money to lend." Many times the homeowners' first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal. You will make as much money as you are willing to work for. Our question for you is: How much are you willing to make? The sky is truly the limit. The bottom line is this: There are thousands of deals out there. If you don't make the effort to find them, other investors will.
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