There are many risks when it comes to property investment as a business. I think sometimes people, especially investors forget the steps involved when obtaining a loan and how this process may open them up for risk. There are many concepts to understand mostly because the bottom-line is determined by capitalization (CAP) rates, return on investments (ROIs), and other net operating incomes.

It makes sense that people overlook the smallest detail when financing a property. It doesn't really matter "why" the loan is needed, if you are seeking a conventional loan from your neighborhood bank or turning to private lenders or hard money; it is still very important that you pay careful attention to the loan you are being offered. I understand you are concerned with flipping the property as quickly as possible; but in doing so you are not as attentive to the type of loan. And thus you find yourself in high-risk situation. Often times brokers may steer you into high-risk deals since they may have pegged you to be a risk-taker.

This opens you up to a different class of loan and areas of predatory lending practices which may incur high fees and other terms or conditions that are not always explained up front. Sometimes loans that allow you to flip properties are called rehab loans as they use hard money via private lenders. This not only means steeper interest rates but an area of lending that is not strictly regulated by the federal or local governments. These hard money loans only work to your benefit when they can get you out of a deal quickly. In other words, these loans only serve the lender because of the amount of leverage that increases the return.

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You are probably asking yourself, how is that going to work? And why would the local Health Department take an interest in deadbeat tenants? Why would they want to help me? But also do they have the right to intervene?

The simple answer begins with utilities. Many communities, cities and counties across the nation have rules and regulations, simply put, laws for health codes and regulations. One of which is that it is illegal for residents to live without light, water, sewer or septic turned on and working. This also may become an issue of minor endangerment if children are in the home. The local Health Department has the power to remove people from properties violating this regulation.

Ironically enough, I never really stopped to think about this option as a landlord and how this might work to my advantage when it comes to delinquent tenants. In my time, I have seen it all, heard every excuse and as a result, I feel I can put these experiences to good use and share my advice.

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When it comes to investment properties there are loopholes which create many options. For instance, Section 1031 of the IRS tax code permits real estate investors to sell their investment properties and in return allow a trade for comparable or similar matched investments in order to defer the tax as the capital gains amass. It seems that real estate is truly the most popular transaction permitted by this code. Something called the Triple Net or NNN otherwise known, as Leased Real Estate is considered appropriate as alternate property during such a transaction. What this really entails is a Net lease where a tenant foots the bill for all or most of the properties' active expenses over and above the rent. It is important that before we discuss the particulars of Net lease that we have an understanding of other kinds of leases as each serves a different purpose.

First there is the bond lease that makes the tenant completely accountable for active expenses encompassing the property's operating costs, which include regular maintenance, repairs and substitute costs for replacing materials etc. Second there is the Triple Net or NNN lease, which incurs actual restrictions on capital expenses. The tenant must pay for property expenses including tax, insurance and maintenance, as under this kind of lease, these are the tenants responsibility. Third taking from the NNN lease is the Net Net or NN lease. This is somewhat the same as NNN lease but returns the responsibility of the physical up keep of the structure to the landlord. They must make sure major items such as the roof are in good working order. Lastly the Modified Net lease infurs that the tenant pays for everything including utilities, maintenance, repairs and insurance. They do not pay property taxes.

For the NNN situation first the situation may allow less property management issues to be a problem for the investor. This is especially true for investors dealing with multi-family units, complexes considered commercial because they want the profit and income without the hard work or heartache. They also want to postpone their tax accountabilities without having to play the role of landlord 100% of the time. Savvy investors use NNN leases because they insure income but still allow for ownership to stay in their name and portfolio while maintaining a good level of capital. Another aspect of the NNN is that it also makes the transfer of real estate to beneficiaries easier.

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Lately it seems Blogging and becoming a Blogger is all the rage.  They seem to have a power all their own as blogs have been key to the downfalls of major political and media members like Senate Majority Leader Trent Lott and CBS news anchor Dan Rather for instance.  At first it seemed an entertainment outlet for teenagers instead of gaming all night, they would Blog as a means of staying in the "know" and making sure their friends knew everything about them. 

Celebrities and other high-profile people seem to use them also to captivate an audience and announce different trends in their lives, mostly personal.  Still Blogs are not just for teenagers, celebrity brats, they're for the average business person, mainly right now it seems Realtors are utilizing the media to market themselves.  And this begs the question do Blogs and the action of Blogging really help businesses?  Are they good marketing tools or just a waste of time?  Can this medium help or hinder your real estate business?  The answer remains in how they are used and to what degree.  It is really all about knowledge.

 Still what is Blog really?  For those of us that remain technically challenged and couldn't be a Web Master if we tried, a Blog is as user friendly as web content comes but it is a way of managing content or a CMS, content management system.  The software involved really does all the work for the Blogger and this allows just about anyone to create and maintain a Blog.  This action of maintaining or updating the Blog is known as the verb form of Blogging as well as someone who Blog is a Blogger.  The individual Blogs are also known as posts and they are usually organized in reverse chronological order.  The most up to date material will be viewed first.  Still with all the Blogs in the Super Information Universe, what makes a Blog unique, eye catching?  What makes it a different media from just a web site or a forum, email or other e-based media?  How is this method unique in format and material?  Can this be found in the way it balances technology with individual expression?

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 Although Wall Street seems to have rebounded in recent days in response to the Congressional approval of the $700 billion financial-system bailout last week, there seems to be continued concerns found amongst financial professionals, who are concerned with the continued pall of recession over the American economy. The main concern remains focused on government ownership of the American banking system.  Will this end the market's paralysis or is it just another bad idea from a failed administration?

Let's face it the average American person does not concern himself or herself with the goings on of Wall Street.  Until recently this just did not impact their lives unless they were savvy investors.  The average American mainly concerns themselves with the bankers that lend the money out.  We are a credit minded country.  So now what to do when the credit market folds?  Banks have had no choice but to limit the amount of credit that can open for people but also the guidelines for credit lending have tightened incredibly so.  The subprime market, once open for business is no longer available.  What else has happened for the banks is the widening spread, or surcharge, that banks must impose on short-term loans to other banks. This has increased over the last year from 0.65% above the cost of funds to an exorbitant 4%.

While the symptoms of the economic crisis and virtual breakdown have been evident for quite some time, since the market became deregulated in 1999 and allowed less government regulation, the current prognosis remains unseen even by the country's foremost financial experts.  Many can play the blame game like a pro and point the finger at bipartisan investments in the mortgage industry, specifically the borderline predatory lending practices found in the subprime market.  This was all very hush-hush, as this knowledge was not readily shared with the common everyday investor. 

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During this time of financial uncertainty as giant powerful cornerstones of the American banking community fail, you have to wonder, is my money safe? What happens if my bank is no longer doing business? Should I take my money out? What about small, regional banks and even credit unions? Are they immune or will they suffer the same fate? Should I worry about my long-term investments? Is it finally time to get organized and figure out my finances?

For months now, the American financial backbone has been a sinking ship, headed toward a crisis beyond anyone's experience and description because not even the Great Depression can compare. Many say we have been in a recession but there have been signs of a Depression for a while. Even such financial leaders like Bear Stearns, IndyMac bank start to fail and powerhouses like Fannie Mae and Freddie Mac need federal assistance; there is something rotten here. This is not to mention the Lehman Brother's bankruptcy and the proposed bailout of $700 billion bailout, which was initiated by American Insurance Group or AIG. No wonder our heads are spinning; we don't know if we are coming or going. Everyday on the news it is something new. People are taking to Internet financial pages like MSN Money and sending emails to financial experts across the country for advice.

Oprah has Suze Orman on her show as a way to elevate the worry but still there are very few answers and still more questions. We can take a moment to answers the questions but you also must keep in mind, the answers are changing for from minute to minute.

How can I tell if my bank will fail? Well you really can't. There's no easy way to know and I'm certain the bank will try to ease your worries. You should look at indications within the market because there is no a hot list of banks going bad. The Federal Deposit Insurance Corp does not publish one. Furthermore, according to the American Bankers Association many banks rebound and recover so quickly that it's next to impossible for them to produce a list.

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 This current talk of financial bailout suggests that as a result mortgage rates will fall allowing a surge in home buying especially for first time buyers.  Still one must wonder how long this will last but also what are the long-term impacts for the housing market?  Right now it feels like the lending industry is distressed but this may not be true for very long.  The banks at risk of failing just need to time to recover and it will actually be consumer confidence that drive the economy back to being fruitful again.

There just seems to be a lot flux in the market, organizations don't know if they are coming or going.  This is a period of acquisition and consolidation.  Lehman Brother's is on the auction block, AIG's failure has brought the issue of bailout into the limelight and Bank of America, of course, will remain standing, buying up new pieces for their vast umbrella like Merrill Lynch.  This week has been historic and shocking for the experts even to say, they don't know what should happen.  That's tough.  While so many people grasp this concept, many are putting their ducks in row and wonder if this is a right time to even think about buying a home or new car.  I believe people are hesitant this week but this will change once there is direction and leadership toward resolution.  This is what some experts have to say about the future of home buying:

How does the latest fallout from Wall Street influence mortgage lending rates?  Well, let's take a look.  We can only hope.  In the interim rates will more than likely go down because there is a lot shuffling going as the dust settles and investors look for safety nets in this uncertain market.  Upon many experts advise, this is a time to put our money in real estate investment or income property.  As of last week the 10-year notes went down which means that the yield also decrease but this makes for new opportunities.  Experts expect mortgage rates to follow this trend because historically they usually follow suit.  Expect rates to drop further as more news brakes.  Just within the last week Bankrate.com commented that the 30-year fixed rate was 5.78% down from 6.08% of the previous week.  Just to compare, this rate was 6.5% in August.

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Never before has it been more necessary for a company to use internet marketing tactics to not only capture market presence but to also learn about their target audience. Suffice it to say that no longer is there such a thing as brand loyalty and it is the job of a good marketer to understand what makes the mind of the consumer tick. The advent of new technology within our global culture has created a faster than light mentality toward information. From an advertising and PR standpoint, the main concern is that the customer be sent the correct information, at the correct time and in the correct format, wording style.

Our concerns are that with the current housing market and competition at an all time high due the bursting bubble that an organization such as ours benefit from these practices in the most positive of lights as well as protect itself from future problems. As a result, there must be an understanding of the customer and their needs, in other words, now it is most important to understand the target audience.

Essentially a marketing strategy is built around the core values, vision and objectives of the organization. Study of market strategy one becomes aware that in order to have product, price, promotion or placement, the organization must have done its research on the market and the consumer need for its service. Without an understanding the targeted audience, the organization cannot market at all. It is important to work the product, its price, distribution and promotion around the needs of the people and of course, from there, work to persuade segments of the segment into wanting the product. This is called product diversification. Not everyone can afford to be a homeowner right now but a smart realtor will play up the prospect of this happening for future buyers. They will encourage fist time home buyer education and seminars to understand getting a deal in a tight market. Still this environment is cut throat with many threats to income. Consumers are more wary of huge purchases with the current economy and many are looking to the future leadership of this country to set the tone.

What many business people starting out really do not understand about marketing and understanding the average consumer is that more that likely the target is open to finding information about your product or service. It may be they are unaware the need is not satisfied yet but until the need is defined, they will not be receptive. They just need a little push in the right direction. Still it is your job and the purpose of the marketing strategy to define who should be looking for you. Without a clear picture of this, networking or customer relationships cannot be formed on a wink and a prayer. There needs to be a plan. Still this is not to say that your customer will not be diverse in nature. I mean everyone needs a place to call home whether they rent or buy. So it is important that your web site be driven by these defining variables.

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Social networking - you've heard of it but do you know the magnitude of what it really means? 

 Social networking happens because individuals chose specific clubs or groups of people in which to hang with because of their individual interests.  These groups can be found in any demographic found smaller, rural communities to the expanding suburbs and metropolitan areas, urban and fast paced.  While social networking traditionally has been done in person at meetings or in the workplace, lately it seems it is most popular online as a means of creating virtual communities.  The Internet has made it possible for people to have friends all over the world brought together by common interests like knitting or rebuilding Ford transmissions.  Universities are even creating virtual learning centers to replace the more traditional classroom.  Where will it stop?

For online social networking web sites become important gathering places.  The web site becomes a channel, a social site for people's virtual selves to congregate.  Once you have gained free access to these social sites, you can begin networking and socializing with others, even start discussing different topics about your common interest.  The key is learning about people from their profiles and even contacting them about their experiences.

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