Every Real Estate Investor Should Master

When you learn about something, when you are interested in new subjects, you also learn a whole new vocabulary you start using. Well, with real estate investing happens exactly the same. If you are a Real estate beginner or an experienced investor, you must understand and master all the terms and words of the investment vocabulary, especially acronyms, so here is a small list of every acronym a real estate investor should know:

1. PITI

Initials for: Principal (P), Interest (I), property Taxes (T) and Insurance (I). Essentially this means, the “bottom line” or the minimum amount needed when you estimate the acquisition of investment property with a loan. Frequently this is estimated monthly.

This amount is what you would might spend in the investment property over the life of the loan. Every and each month is the frequency of the PITI you have to pay in order to be in good standing. Thanks to this you will know how much rent you should pay.

2. GOI

GOI or Gross Operating Income, is related to the annual income that is collected from the property, including: laundry, parking, storage, etc. and consider any vacancies.

3. LTV

Initials for: Loan-to-Value, this is vital if you’re removing a loan on your investment property, it is estimated by dividing the loan by the property’s value; then, that number is expressed as a percentage. For example, to make it easy: if a loan is $200,000 and price of the property is $250,000, then the LTV is 80%.

You will have more equity in your property and negotiate more if the LTV is lower.

4. DCR

Initials for: Debt Coverage Ratio. This is referred to a commonly used term by lenders when they have to deal with underwriting loans for income-generating properties. How it is calculated? You need to divide the NOI (see below) by the total debt. If the ratios is 1.20 or higher, this is considered the average.

5. NOI

Initials for: Net Operating Income, this is the income left over from your rentals after paying all your monthly operating expenses. So, deduct your expenses from your GOI (Gross Operating Income) to get you the property’s NOI. For example, if you take in $20,000 in leases on all the units you have and spent $6,000 on maintenance including supplies, accounting, taxes, insurance, utilities and more, the NOI for the month was $2,000.

If you felt this information was useful and want to learn more about real estate. You can go to our Official Website and see all the incredible ways we have to offer to invest in real estate.

Marketing Predictions made for this year to take advantage in real estate

When the year started, some people dared to predict some trends and technologies that were going to impact marketers this year. There are only 3 months left to this 2014 to end, do you think some of these strategies were followed? Do you think real estate investors can take advantages of this facts to improve their investments? Let’s check them out.

1. The consumer becomes the new content marketer: More brands were supposed to add more photos, video and other content from consumers and repurpose them for marketing campaigns. If you are in the real estate business you need to update all your listings constantly, upload videos and photos, you have to see the way to convince people to make business with you.  The Fact: Every time a consumer posts something on the web it is seen by 150 people. So, realtor, what are you waiting to start posting?
2. Brands weave a social layer across traditional advertising: Marketing teams amplifies the reach of TV and print campaigns by incentivizing viewers to post hashtagged content and running related social ads. Start with the #realestate #investments hashtags now!! The Fact: 44% of TV viewers use a second screen ½ the time they watch TV. Realtor: Attention to this!! 88% of marketers believe that integrated multi-screen   campaigns will become very important in the next three years.
3. Marketers connect the dots between email and social: Email and social are two powerful channels with a symbiotic relationship. In 2014, brands will use them in combination to build, target and convert audiences. The Fact: 70% of email marketers find product or prize giveaways to be an effective tactic for audience acquisition. Only 39% of email marketers use Facebook contest requiring fans to submit their own content but 60% rate it effective, so, what you need to start doing is using Facebook of course, but in a effcient way.
4. Brands run more frequent social campaigns: Social gives brands the freedom to launch content and campaigns on the fly. To stay competitive, you need to run frequent campaigns that engage multiple audience segments in different social media platforms to reach more clients.

Hope this post helps those people investing in the real estate business, if you need more info about this, just go to http://www.fciexchange.com for more information

How are you preparing for real estate’s new market reality?

You need to start to learn and understand! There are no more days when you could simply hand your clients information, now you need to explain them what are you sharing to them. It is said that there is a large gap between information and actionable knowledge.

Heart of a Teacher: This means that you shouldn’t be trying to convince someone to do something; you can help your clients trying to discover what their options are and let them make decisions that are best for them and their families.

Dave Ramsey says: “When getting help with money, whether it’s insurance, real estate or investments, you should always look for someone with the heart of a teacher, not the heart of a salesman”

Strong Visuals: People process visual information 60,000 times faster than text. With attention spams dropping, this can mean the difference between someone seeing and understanding your message versus missing it completely.

Go mobile or go home: Having visuals on your smartphone or tablet is just a way to earn the trust of your clients by confidently answering their questions wherever you are.

Keeping current is vital: In a day when market information and analysis are so important, staying on top of the changes and the impact they will have is perhaps most important.

For more information on real estate, go to www.fciexchange.com or follow us on twitter at @fciexchange

Are you considering real estate investment?

Some people may think that real estate investing involves risks but it also means investment success. Sometimes, what is most important in real estate, before the location, is the person who you are dealing with. In real estate most people will offer you “no-money” down methods of how to become a millionaire in a short time, but you and me know that not everyone is being honest.

Fci Exchange

If you are considering to invest in real estate property, you are going to need:

• Investment capital (of course)
• Knowledge of the real estate market and the neighborhood where the property is.
• Great administration and negotiating skills
• The ability to do repair work (it is easier than you think)

If you are not able to look for foreclosure houses, you will have to serve as a landlord for the property while it increases in value. When you rent your property you have to be very careful because the property must be well-maintained.

When talking about real estate investing, we are talking about having some money to make money, and for that you need available capital. This is why a lot of people go into real estate after coming into a sizable amount of money.

Another important thing to do is to research your location. You can start attending local town board meetings, do some research in libraries and go on the Internet to look for some data about the location today and the upcoming years.

Then you need to know about the REITs — Real Estate Investment Trusts. This is a way of investing in real estate for a lot less money and you don’t have to worry about fixing a tenant’s leaking bathroom pipes in the middle of the night.

REITS invest in many companies involved in real estate, ranging from industrial parks to shopping centers to construction companies. They work the same way as mutual funds, except they set up a diversified portfolio that deals only in real estate.

REITS have high and low periods, like: stocks, bonds and mutual funds, they can be strong investments over time and pay dividends. They are fairly liquid and are a much safer way of investing in real estate than buying property.

How do I buy Notes on FCI ?

Indicative Offer and Transaction Summary:

• Indicative Offers can only be sent to Seller after Proof of Funds has been approved.
• Offer amounts, even at the Buy Now Price, are nonbinding until a Purchase and Sale Agreement has been signed.
• Following acceptance of an Indicative Offer, Buyer is given a Due Diligence Period, but still has the right to respond to any other Offer.
• Following Due Diligence and Final Offer acceptance, the transaction is a binding obligation when the Purchase and Sale Agreement has been executed by both parties.
• Buyer and Seller have the right to cancel the transaction at any time prior to the execution of the Purchase and Sale Agreement by both parties.

THE TRANSACTION PROCESS

1. Login and/or Register.
2. For Interested Loan do Preliminary Due Diligence / Purchase Due Diligence
3. Submit an Indicative Offer
4. After Offers are submitted, Transaction Summary is created. Go to My Offers to view status, responses, and continue the Transaction Process

There is significant information available on the Notes For Sale from the Seller, but Buyers should do their own research. The most popular Buyer research items not typically provided by the Seller are a current independent BPO and an Ownership & Encumbrance Report, both available from FCI under Due Diligence Options.

Please note that FCI EXCHANGE has no involvement in, or control over, a Seller’s asking price or a Buyer’s offering price. To assist in fair disclosure, Sellers are required to put down an asking price, and if a Seller counters a Buyer offer differently, the asking price will be adjusted accordingly.

No fees shall be assessed unless outlined in the Terms of Use for Trading on This Site. FCI EXCHANGE uses this performance based fee structure to ensure all Parties FCI Exchange’s lies in Closing Transactions and not simply Listing Loans.