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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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.

Blowing Bubbles
I watched an interesting interview with Jim Chanos on the Chinese Property Bubble. Jim Chanos is an American hedge fund manager of Kynikos Associates, a New York investment company that is focussed on short-selling (profiting from the fall in the value of an asset).

Mr Chanos rose to fame in 2000-01 when he identified flaws in Enron Corporation’s accounts, resulting in management significantly overstating the company’s earnings. Chanos began short selling Enron and made massive profits as the company’s stock declined from $90 in August 2000 to a low of nearly $1 near the end of 2001. Chanos’ ability to find and then exploit the fraud at Enron has made him somewhat of a celebrity in the financial press.

In his latest interview, Chanos warns that China is experiencing a severe real estate bubble and is headed for a crash; rather than the sustained boom that most mainstream economists predict.

Chanos first defines what he means by a bubble: a debt fuelled asset inflation where the rental income does not cover the debt expense incurred to purchase the asset. In other words, “Ponzi finance” that requires the “greater fool” and ever-increasing levels of debt to perpetuate it.

After watching Chanos – interview, I thought I’d examine how Australia’s residential housing market stacks up under his definition in order to determine whether we are experiencing a speculative housing bubble or asset inflation based upon sound fundamentals.

Up, Up and Away:
Anyone under the age of 40 and living in an Australian capital city knows first hand that it is becoming increasing difficult to find a decent, reasonably priced home within a reasonable commute to work. We’ve all watched in amazement, disbelief or dread as we, our friends or family are priced-out of the housing market or take on mortgages the size of a small African nation simply to put a roof over our head. But how expensive have Australian house prices become? Where has the money come from? And is this house price growth sustainable?

To answer the first question, Chart 1 plots average Australian established house prices (sourced from the Real Estate Institute of Australia) against average Household Disposable Incomes (HDI) and Average Full-Time Ordinary Earnings (AFTOE).

As you can see, the ratio of house prices to average earnings started at around 2.5 times HDI and 3.7 times AFTOE in 1986. This ratio increased slowly from the mid-1980s to 2000, rose rapidly from 2000 to around 2004 and then settled at around 6 times HDI and 7.7 timed AFTOE in 2008/09.

While you can argue about the choice of house price data and income measures, the fact remains that the trend in prices is clear – housing has become far more expensive overtime and Australians are now required to dedicate a much larger proportion of their lifetime’s earnings to purchase a home.

Buy now, pay later:
Since the growth in house prices has significantly outpaced the growth in incomes, it follows that rising debt levels have been the key contributor to rising house prices in Australia, since the only way to purchase something that you cannot afford through income is to borrow the difference. Chart 2 uses RBA data to plot the level of mortgage debt against HDI and GDP.

As with Chart 1, Australian mortgage debt has increased significantly from around 32 per cent of HDI and 12 per cent of GDP in 1990 to 138 per cent and 89 per cent respectively at the end of 2009.

Based on the above data, we can confidently conclude that Australia’s house price growth has been debt-fuelled, thereby fulfilling the first criterion of Chanos bubble definition.

If you can’t buy it, rent it:
So what about the second part to Chanos ” bubble definition ” the requirement that the rental income does not cover the debt expense incurred to purchase the asset, thereby requiring “Ponzi finance” and ever-increasing levels of debt to sustain asset (house price) growth?

To determine whether this part of Chanos – definition has been met, Chart 3 uses ABS data to plot the growth in real (inflation-adjusted) house prices against the growth in real rents. For this criterion not to hold, we would require rents to have increased at roughly the same rate as house prices such that rental incomes broadly cover the cost of debt repayments.

Ouch! According to the ABS, real rents have increased by only 14 per cent since 1987 while real house prices have risen by a whopping 163 per cent over the same period! It is no surprise then that yields on rental houses have plummeted from around 8 per cent in 1987 to around 3.5 per cent currently.

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There is no doubt that the U.S. real estate and mortgage problems of 2006 into 2010 have disturbed markets around the world. Many countries have suffered, with previously robust real estate markets languishing without international investment due…

Investor Attention on Goa for India Real Estate Investment

There is no doubt that the U.S. real estate and mortgage problems of 2006 into 2010 have disturbed markets around the world. Many countries have suffered, with previously robust real estate markets languishing without international investment due to current conservative attitudes. India is no exception, with residential and commercial real estate development in India slowing during the last three years.

However, international investment may be experiencing renewed interest in the country, and India itself is continuing and expanding government initiatives through housing boards situated throughout this nation of more than one billion population. Being one of the most populated countries in the world, housing is at the top of the government’s list of importance for their citizens.

However, when it comes to interest from foreign investors, tourism plays an important part. Goa, India’s smallest state, is also the fourth smallest state in population. Situated on India’s west coast in the Konkan region, it’s the richest state, with a GDP more than double that of the country as a whole. Both domestic and international tourists flock to Goa for its beaches and architecture influenced by the Portuguese. Wildlife sanctuaries, equatorial forests and beautiful beaches draw tourists, and now real estate investors and developers. With the government owning more than 80% of the forest land, greater land demand should bring upward pressure on prices for future development.

Tourists bring money, not only for temporary enjoyment, but for long term real estate purchases. Tourism is Goa’s primary industry, handling approximately 12% of all of India’s tourist visits. Goa isn’t overly dependent on tourism, as the primarily agricultural area is changing to a more mining focus, with growing discovery of locations rich in minerals and ores. But, tourism is very important when considering real estate investment, as those who return to the area will many times look for a purchase that will appreciate while providing an annual vacation retreat.

Builders and developers in Goa frequently also handle property brokerage. One developer, Riviera Constructions, boasts project completions in 12 to 15 months, well ahead of schedules. These include apartments and India vacation villas, as well as planned resort communities built with international investment as a focus. While sale is the primary goal, they also manage these properties as rentals, and buyers can factor short term rental income into their purchase decisions.

For those vacationers who enjoy pristine beaches and access to equatorial forests, wildlife and the civility of beautiful architecture, restaurants and a focus on tourism, Goa is a great destination. It also seems that it could be a great place to invest in real estate.

Stress test remains significant as it can guage sovereign issues as well as highlight sizable capital need for banks. Speaking to CNBC-TV18, Philip Poole, Global Head-Macro and Investment Strategy of HSBC Global AMC said the key issue at the moment is to raise additional capital. He believes Emerging Markets are still attractive but it is attracting funds lower than last year. However, he remains overweight on emerging markets relative to global markets?? and prefers Brazil, Russia, Korea and mainland markets. Regarding India, Poole remains worried about the inflation situation.

Q: Your expectations from the European bank stress test and what you think might get thrown out?

A: This is an important event. We have seen the euro recovering some ground against the dollar and across currencies. But the stress test is an important element in how people will look at this sovereign related issue in Europe. So, I am expecting to see these tests highlighting the sizable requirement for all banks and capital and the key question then will be how it proceeds.

The authorities are indicating private sector has to take substantial lead in that process, but we are still not clear on the details of what will lie behind the official initiative. So, I think that’s the key issue, how the raising of this additional capital will be performed and how the market takes that.

Q: What about emerging markets (EMs) then because we have been getting good flows, India particularly? How do you assess the fund flow situation from hereon?

A: EMs still attracting funds, at a lower level than we saw last year. But on a net basis, money is coming in again. What is interesting is within the equity space, for example, that money is tending to go into single market funds like India, of course, like Brazil as well rather than into BRIC (Brazil, Russia, India And China) or in to more generic EM funds. Also, I think we are seeing interest in EM currencies. We are seeing interest in corporate bonds in the EM world. So, the fund flows are healthier than they were when we were seeing a month or so ago that correction playing out with risk being taken off the table

Q: At HSBC, which emerging markets are you most overweight on and which ones are you underweight on currently?

A: We are overweight EMs relative to the developed world, relative to their weight in global markets. That’s the first thing to say. Within that, we like Brazil, Russia, Korea and Asia, we also like the meaner markets, there’s value there. But generally speaking, I think we have got a pretty strong call on EM in this environment.

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Strong buying interest was witnessed in Japan and Singapore in the first half of 2007, with the collective investment amount in large-lot deals in the two countries accounting for over half of the regional total. The buying spree by international institutions and REITs continued as they remained active throughout the region. The combined value of the quarter’s ten largest investment deals amounted to US$6.9 billion, with the acquisition of a portfolio of industrial properties by Secured Capital Japan and DLJ Real Estate Capital Partners at a price over JPY 160 billion topping the list.

Japan has recorded nine consecutive quarters of economic expansion, and recorded an annualized real growth rate of 3.3 per cent during the first quarter of 2007, with the major boost coming from robust corporate capital investment. Investors remained overwhelmingly positive regarding the Japanese real estate market and most real estate indicators point to a continued upbeat market. J-REITs remained the dominant players as they added to their portfolios not only in Tokyo but throughout the country. Nevertheless, with the financial markets pricing a further interest rate increase, the 10-year JGB yield increased from a 1.6 per cent average in April to a 1.9 per cent average in June, shrinking the positive spread of NOI yields.

In Singapore, investment transactions totalling S$24.63 billion were recorded in the first half of 2007, a 70 per cent increase year on year. The robust momentum was largely driven by acquisitions of development sites. The office investment market remained brisk, with both the number and value of transactions by overseas investors increasing as private equity groups and foreign funds displayed keen interest in office properties. In the most significant office transaction in the first half of 2007, MCP Raffle, a unit of Macquarie Global Property Advisors, purchased Temasek Tower for S$1.04 billion.

Investors remained confident in the Hong Kong property market on the back of the city’s continued economic growth and upbeat economic outlook. Investment activities were particularly robust in the luxury residential and office sectors, with premium properties highly sought after by both investors and end-users. Notable transactions included the en bloc acquisition of Lodge on the Park in Mid-Levels for HK$1.0 billion by a local developer and Citigroup Property Investors’ purchase of two Central buildings, Crocodile House and the adjacent Ananda Tower, for a combined HK$1.5 billion.

Strong demand in Seoul’s office sector continued to drive positive investment momentum during the first half of 2007, with the steady increase in capital values of prime office buildings attracting both domestic and foreign investors. MAPs Investment Management was particularly aggressive, settling a forward transaction by purchasing Glostar Square Garden, due to be completed in 2010 in the CBD, for KRW 843 billion. Another active domestic investor, KORAMCO, will close the acquisition of Seoul City Tower in July, adding the CBD property to the portfolio of its KOCREF NPS 1 K-REIT.

The Chinese government continued to step up efforts to control real estate investment in the first half of 2007 in order to maintain market stability and avoid overheating in the economy. Between January and June the People’s Bank of China raised the bank deposit reserve ratio five times, from 9 to 11.5 per cent, effectively removing liquidity from the market. The Bank also twice increased the benchmark rates of bank loans and deposits.

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