Real Estate Internet Marketing

Archive for June, 2007

Question: How to calculate returns for REITs?

I’m doing a final year proj on REITs in ASEAN countries, just thought of doing a general check on what are the measures currently used in the markets to calculate and evaluate returns of Real Estate Investment Trust (REITs)?
Is it the yield?

Answer: REITS have to pay out 90% or more of FFO (Funds From Operation), otherwise they are taxed at the corporate level on income. So that FFO is what drives the dividends. And yes dividends are a large part of the returns for REITS.

The other part of the return is based on “stock” price. If the REIT buys good properties over time they should appreciate and FFO should increase as rentals increase. This increasing asset base and higher rentals hopefully will cause the stock price to increase giving you another source of returns.

Hope this helps

Self Storage REITs Going Strong

Question: I have a business that is failing. Do I foreclose? Do I file BK?

I have a business with a very high debt structure, and we do not have enough cash to pay the bills. I have had no luck selling the business. We (my partners) mortgaged homes in order to finance the purchase of the business. The seller also gave us a deed of trust. In order to relieve some of the debt, we have placed our homes up for sale, but the real estate market is in the tank and we can’t sell the homes. We have sent a letter to the seller asking for a 66% reduction in the loan balance, but no response. We have stopped making payments on the seller’s note, and have been threatened with foreclosure. This is a complex situation. Thank you to anyone who has suggestions to help.

Answer: Oh brother, this is why I thank God I didn’t borrow money to operate my business when it failed. What a mess, but you obviously know that or you wouldn’t be asking.

The thing to do in these heartbreaking situations is to really make a conscience decision to keep your priorities straight. Your highest priorities include your faith, your marriage, and your family. When you make a conscience decision to put these things first the business and debt problems can be worked through. It’s certainly not fun, but it does reduce the amount of spiritual and emotional drama you’ll have to endure.

The next step is to accept reality as it is. You’re trying to sell your houses to unload the debt. That is a positive move, but you probably need to reduce the prices to move the houses. The house is only worth what the market is willing to pay…no more and no less. You need to accept that.

This is also true for the business. You need to cut the price or sell off assets if the previous owner will not work a deal with you. A foreclosure is a worse situation because he will probably liquidate the business at bottom dollar and sue you for the difference. Not a pleasant situation. If you cannot sell the business outright see if you can sell off assets, equipment, and so on.

Real World Real Estate: Episode IV Exit Shore Realty

Welcome to the Real Estate Internet Marketing Blog!

Internet marketing has helped people in many professions. Although internet marketing has been the focus of most home based and small businesses for years, Real Estate Internet Marketing is one of the fastest growing industries. With the real estate boom of recent years, more and more people are getting into real estate. New realtors and real estate investors, alike, are constantly looking for ways to market themselves and their services as well as find the right buyers and sellers. With more and more people using the Internet as their primary source of home search, Real Estate Internet Marketing is becoming more and more vital. The new age of Real Estate Internet Marketing has begun. Are you on board?

The aim of this Real Estate Internet Marketing website is to introduce anyone in the real estate field to the best real estate marketing tools and also the most affordable. Some real estate investing tools are free. Yes they are! But, some effective ones do cost a small amount. The good news is that we have done the research for you to find the best Real Estate Internet Marketing tools and software that do a good job and cost the least.

The best Real Estate Internet Marketing tools

Depending on what you want to do in real estate, there is the best real estate marketing tool for just what you want to do. For example, Internet Marketing for Real Estate agents may lead to getting their name and services out as well as bringing them leads from potential home buyers or home sellers or even real estate investors looking for great deals. Real Estate Logos and Real Estate Slogans will also help with marketing real estate businesses in general. The real estate market has been growing steadily, even though sometimes it is more of a buyers’ market than a sellers’ market. No one disputes that the real estate marketing is still growing and there will be more and more real estate investors trying to break into the real estate market for the first time. Real Estate Internet Marketing will help them immensely. We have many tutorials for Real Estate Internet Marketing, you can start with Real Estate Agents Marketing. Stay tuned!