No money down real estate investing should be just that – you put down nothing at the start.

But a lot of people get tricked into thinking they have to deposit at least something whenever they buy real estate, even using a simple option purchase agreement.

That is a massive misconception. Huge! So in the next couple of minutes let me show you how ordinary people like you are confidently doing safe, no money down real estate investing even in today’s economic environment. Some of them are successfully dong this on their own, although this is not easy. Many others are utilizing only their good credit and provable income yet getting real estate investments that are secure, high yielding and yet are practically turn-key.

Have you heard about the highly negotiable, so-called “sandwich” lease option?

With it, you take over the house payments and equity of someone who can’t keep those payments up, but not the house ownership, by linking a revocable option to purchase agreement with a lease agreement written in your favor. The option ties up the property before you buy it, but makes it possible for you to revoke it. Almost certainly you will have to make a promise to pay, or put money or a security down at the time you sign the agreement. But with these instruments in place you can back out when you want to with no recourse except losing anything you might have put down.

Now, most people seem to think they have to write a check or put down some cash to make these options legally valid. This is not correct. Because you and the seller can make a revocable option turn on a consideration of any sort that you both agree to. It can be money. But it could equally be a promise to pay, say, part of future rentals. Or something like a car or jewelry. Anything you both write into the option.

That promise to pay is attractive it basically means you put nothing down right now and will only make an agreed payment once the option is exercised. People are using these promise to pay clauses right now. This is pure no money down real estate investing with the security of commercial law and requiring zero cash.

Because it is so good, it is difficult to get this written into your option to purchase. Also, sellers generally must get rid of the property but with this option you are not taking over the ownership of the home. However, when you can agree on this option you scoop up all the benefits of no money down real estate investing.

There are several things to consider before trying to strike this agreement, however. And many first-time real estate investors gloss over them.

One, you must find out why the seller has not yet sold his house? Is there something wrong with the location or the physical condition of the house itself? Are city building or zoning regulations unhelpful? If there are problems with the house, will these make it difficult for you to keep up the payments you take over?

Next, do the numbers stack up? Most people thinking for the first time about no money down real estate investing concentrate on the fact that there is no money down. Don’t overlook another fact you might lose money if the rental market is paying less than your payments. You might lose a ton of money! Here’s an example of this. Say you take over mortgage payments of $1200 a month and rental market for the property only pays $1000 a month. You will be losing from Day One.

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The latest news out of China is bearish. However, you have to be very careful of how you interpret the numbers. Those who want to present the bullish view will give you sales or price numbers for real estate for the first half or the last year. That disguises the plunge in sales since April.

For example, the year-over-years sales increase in China property prices is 11.4%. However, sales since April have plunged. Prices are always slow to follow initially, as speculators refuse to sell at prices lower than the peak price. They hope prices will come back. So, sales plunge. Condo sales in Beijing are down about 90% since April. Officially, sales in Shanghai, Nanjing and Hangzhou in the first half of the year were down 50%. The unofficial numbers should be worse.

Land prices in 103 cities for the first half were down 9%. Imagine! That includes the last part of the price surge in early 2010.

Economists in China now say that the government will stop tightening measures when prices have dropped 20-30%. That’s just what Japan said in 1990. At that time, I wrote that when bureaucrats aim for a 30% decline, they will get a decline of 50% or more, namely a disaster. Actually they got a 70% decline in real estate values over the past 20 years.

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The chief economist for Nomura Securities (NMR) (a Japanese firm) in China says: “I believe such a price fall will have limited impact on China’s economy.” He may have said the same thing in Japan in 1990.

In China, car sales, which had been booming early this year, dropped a hefty 5.25% from May to June. In May, the year-over-year sales rise was 29.8% in May. China Daily reports that a leading Nissan dealer said that sales in June plunged 50% or more from the prior month. Sales people have nothing to do.

On August 2, The HSBC China Manufacturing Purchasing Managers Index was released, showing a decline to 49.4 from 50.4 in June. Anything below 50 shows contraction.?? This is the first time below 50 since the bottom of the last serious economic plunge in March 2009.

All the above confirms what we have been forecasting for several months: Government efforts to stop real estate inflation is resulting in the bursting of a huge speculative real estate bubble. If you want to know how it will work out, just go to Las Vegas or Miami.

In line with the industry trend, State Bank of India (SBI), on Monday, raised its benchmark lending rate by 50 basis points and deposit rates by up to 150 basis points.

While the increase in benchmark prime lending rate to 12.25 per cent will make existing home, auto and corporate loans from the country’s biggest lender dearer, the hike in deposit rates will ensure better returns for deposit-holders.

The decision comes days after Finance Minister Pranab Mukherjee expressed hope that lenders will not raise their interest rates in response to the RBI’s monetary tightening measures last month.

“The bank has revised the benchmark prime lending rate upwards by 50 basis points from 11.75 per cent to 12.25 per cent effective from August 17″ SBI said a filing to Bombay Stock Exchange.

However, for new borrowers, the base rate, which became effective from July 1 this year, stands at 7.5 per cent. The base rate is the minimum lending rate below which loans cannot be offered.

As far as revision in fixed deposit rates is concerned, SBI increased the interest rate by 150 basis points (1.5 per cent) to 4 per cent for term deposits of 15-45 days tenor. The deposit rate increase is the maximum in this slab.

For fixed deposits with a tenor between 181 days and less than one year, the new interest rate will be 6 per cent against the existing 5.25 per cent, while 555-day fixed deposits will attract an interest rate of 7.25 per cent, an increase of 125 basis points. The interest rate on term deposits of between 3 to 5 years tenor will go up by 75 basis points to 7.25 per cent from tomorrow, while interest on the 5-8 years maturity slab has been increased by 25 bps to 7.50 per cent.

Floating fixed deposit

Meanwhile, the bank also announced the launch of a floating fixed deposit product linked to base rates with effect from September 6, 2010. The bank announced launching of floating rate term deposit products linked to the “Base Rate” effective from September 6, 2010″ the bank said in a filing.

This innovative deposit product will not carry a fixed rate, unlike the existing fixed deposit product. The interest rate would change in tandem with the base rate, as and when a revision in the benchmark rate takes place.

For a one-year floating fixed deposit, the interest rate will be 50 basis points lower than the existing base rate, which is currently 7.5 per cent, it said. In the case of a three-year floating term deposit, the interest rate will be 25 basis points lower than the base rate, while for a five-year floating term deposit, the interest rate will be at par with the base rate.

The new deposit product will be introduced from September 16, it said.?? The RBI, in its monetary review last month, raised the short-term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 basis points to tame inflation.

Following the monetary action, most of the public sector lenders, including Punjab National Bank, Bank of Baroda, Bank of India, Oriental Bank of Commerce and Canara Bank, responded by hiking their BPLRs by up to 50 basis points. At the same time, many banks increased deposit rates as well.

The bank has also increased its fixed deposit rates by a similar percentage point in various retail buckets up to one year

The thing is, I don’t have psychic powers. But I’ve never been a follower. As even many libertarians have seen, I’m quick to challenge conventional wisdom, wherever it lies and even if I tend to agree with it.

The prediction I made was based on several months of analyzing rent-to-price ratios in the Vancouver, Calgary and Toronto markets. It was becoming clear, despite the fact that prices were rising, that there was something very amiss in the real estate market.

Real estate investors were pouring in, buying up condos in major cities representing about 40% of buyers, bidding prices up and up, while the rents they were getting were stable at best, to edging downward.

When I made the claim on Twitter, a flurry of real estate agents challenged me, making various claims like: “the Canadian real estate market is very healthy” and “rent-to-price ratios do not matter all that much really”.

You know, it’s not just rent-to-price spreads that’s the problem. It’s consumer debt load at all-time highs. Canadian consumers have the highest levels of consumer debt in the OECD.

You might also wonder that when inflation-adjusted wages have only increased 10% in the last fifteen to twenty years, how the hell real estate prices have managed to rise by over an order of magnitude. But most people don’t wonder such things. They make silly assumptions based on trends.

Most financial experts rely on the fallacy of analysis by analogy. A perfect example would be: “for the past ten years, real estate prices have risen by about ten percent. Therefore, you can expect that over the next ten years, housing prices should rise about ten percent a year”.

This is not an exaggerated example, either. This is exactly what financial analysts on CNBC, Fox Business and Canada’s BNN have been saying, leaving myself screaming at my television on more than one occasion.

Naysayers like myself have paid attention to factors that the analysis by analogy financial bimbos have ignored. Like rising consumer debt, rising public debt, and an exceptionally low interest rate environment, making borrowing far too easy.

When I’ve argued with some financial experts and quote-unquote “real estate experts” on this point, their retort has often simply been to just state that I don’t know “how real estate works”. A claim that seems somewhat absurd given my track record vis-a-vis theirs. Especially in light of today’s news.

And if you’re wondering if I take a teensy-bit of pleasure in being right on this, then the answer is sort of. It always feels good to be vindicated. But this is a stark reminder of people’s ability to get caught up in the moment and ignore obvious warning signs.

The warning signs that a severe housing crash in Canada was coming, is coming, and is now unfolding were numerous, easy to understand and very stark. Yet, instead of consider them, we chose to believe without warranted reason theories that immigration-led demand, and Canada’s “resilience” could sustain the trend. But these were silly pipe dreams.

Although a real estate bubble is not seen as a problem in Thailand, it would take at least 11 months for condominium developers and up to three years for single houses to clear their current stocks, according to the Agency for Real Estate Affairs (AREA).

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Bubble not expected, but caution urged for developers

The severity of the global financial crisis also saw the government introduce additional sweeteners for buyers a 300,000-baht income tax deduction for any buyers of a new home that was transferred within 2009. At the same time, mortgage interest that could be deducted from taxable earnings was increased to 100,000 baht from 50,000 and has now become a permanent tax benefit.

Property market in Thailand remained in a strong position thanks to good sales in the first quarter which were not only driven by the incentives. The stock market is risky to invest in, while buying gold for investment has limitations.

The recovering economy is re-building consumer confidence while homebuyers purchasing power is also strong, he said. Development of the mass transit network in Bangkok was another boost for the market. Politics has had little impact on condominium sales but it has dampened investment and the industrial, commercial and tourism sectors.|

The mid to high-end segment boomed this year in Thailand as demand was wide and remained strong. The high-end will recover in the third or fourth quarter. But supply in this segment is very limited due to scarcity of land for new developments. Around 80% of the new launch in this segment was taken up. New supply in the high-end segment, now quoted at 150,000 to 200,000 baht a square metre, will be provided by developers with a strong financial status, experienced teams and products that match demand.

Miami real estate investing is not very hard to learn, even though that there are many facets that are essential to understand before attempting to start investing. While many books and seminars are offered on investing only a few deliver the desired results. Investing is not taught in any university and it is more of an art than an exact science. It requires a lot of perseverance and determination. Many investors learn by trial and error although a mistake could be very expensive and usually devastating. Numerous millionaires made their money through real estate investments. Information, education and research are major considerations for an investor to be successful.

Real estate investing in Miami, Florida is a full time business where investors are constantly trying to maximize their profits and minimize their risks in other to generate wealth over time. Investing is a verified long term wealth creator. It is a numbers game and many of the transactions will not work but it is all worth it when one deal goes through and all your hard work is rewarded. It takes a lot of time and effort to effectively dominate the art of real estate investing. It is a risky business but it is the best way to create lasting financial security. Investing in Miami real estate is an excellent way to make a positive monthly income and built long term wealth and obtain financial independence.

Investors in Miami real estate have recently taken a beating and many have seen their investment properties lose value. An investor should not panic and sell in this market to avoid huge loses. Since it is a long term business an investor should realize that the time is now to rent the property and hold until the market turns around. If an investor requires a predictable and safe return on investment then investing in Miami real estate is not the answer. The business of real estate investing is very risky, and unpredictable but well worth the effort. An investor should consider buying foreclosures and bank owned properties. The Miami real estate market has hit bottom and it should be bouncing back very soon.

Miami real estate investing is different than various types of investing. An investor must overcome many roadblocks and obstacles. Usually finding financing is the single most overwhelming challenge an investor will face when trying to purchase Miami real estate. Using leverage in the business is common so arranging financing is very important. Do not purchase investment property with no money down. Little or no money down has caused many properties to go into foreclosure recently. Investing is not as perplexing, time consuming and financially draining as one might imagine.

Bank owned properties or Reo’s and Short Sales are a good way to start to look for a good deal in Miami real estate to purchase. The list of bank real estate owned (Reo) properties is huge. Not all banks want to discount properties so finding a good property to buy takes a lot of work and patience. Short Sales are the new trend in speculating in Miami real estate. Banks are not very eager to short sale their inventory and it takes usually about two months for the bank to accept or reject the offer. Government foreclosures are another to avenue to search. These properties include HUD, Housing and Urban Development, VA, Veteran Administration, FNMA and Freddie Mac. HUD homes are very popular and usually they will sell to the higher bidder in a weekly online auction. Investors are allowed to bid when the property does not sell to owner occupants. These HUD-FHA foreclosures properties are offer an excellent value. Foreclosures remain the best way for investors to start in the Miami real estate investing business since most of them have instant equity.

The best way to start investing in Miami real estate is buying foreclosures. The tremendous amount of foreclosures now in the Miami real estate market overwhelmingly gives the investor a lot of inventory to choose from in order to purchase the right property at a discounted price. This opportunity will more than likely never be available again and investors should take full advantage. An experienced Miami real estate agent who specializes in foreclosures is essential in order to guide the investor. The agent must have access to current bank owned REOs, foreclosures, short sale properties, pre-foreclosures government foreclosures and other distress listings. Investing in Miami real estate is a very exciting and rewarding business.