Resolving the Real Estate Investing Fear Factor

If you’re a new real estate investor who has thought about real estate investing but have been due to a nagging feeling that you are certain the market will collapse once you step in and you will lose all your money; guess what, you’re not alone.Fear grips every new investor; and no one successfully investing in real estate today would state otherwise. It’s common for potential real estate investors to miss out on incredible opportunities for no other reason but an overwhelming sense of fear.Okay, so let’s address some of the most common fears and see whether we can help you to become less anxious, and maybe take the plunge into real estate investing after all.Negative Cash FlowHey, the idea behind investing in real estate is to make enough money to cover operating expenses and loan payment with some left over to deposit in the bank. Having to feed a property won’t cut it; no investor wants to feed a rental property.Believe it or not, this fear one might be the easiest to manage because it’s straightforward: simply run the numbers before you buy. Obtain the property’s last twelve months income and operating expenses, calculate a mortgage payment, and plug the results into a spreadsheet or real estate investment software program to determine cash flow. If the cash flow is negative, so be it, otherwise dispel the concern and move ahead.Just be sure to use realistic rents, a vacancy rate (even if the owner claims full occupancy), operating expenses (don’t forget replacement reserves), and a loan payment to compute your annual cash flow.Also, never walk away merely because the property indicates a negative cash flow. Dig a little deeper and look for ways to manage the cash flow. Many rental income properties simply go negative because of poor property management; you might have a probability of raising rents and cutting operating expenses. Who knows, you may even discover a real opportunity overlooked by the current owner.This Isn’t the Right TimeYes, for any number of national or international events, potential investors often feel it would be advantageous to wait for better times before making an investment in real estate.But real estate investment has little to do with the economic climate at the time you buy. Foremost, consider the long haul. Economic depressions come and go, but how will the investment property impact your future rate of return? That’s what counts.If it helps, bear in mind that unlike the fluctuating stock market real estate has a profound record for steadily appreciating. Perhaps not overnight, and not without an occasional bump, but historically, real estate value does go up over time.Losing Your MoneyOf course, you wouldn’t want to tap into your savings to make maybe the largest financial investment of your life only to wind up losing it all.The key, however, is to study and research. Learn about the property you want to invest in, and the area where you plan to invest. Look for sources of information like seminars, college courses, real estate software, and real estate investing books. Get an expert appraisal of the property from an investment real estate professional or property appraiser. There’s always some risk when real estate investing, but developing a plan with knowledge will negate most of your uncertainties.Tenant and Management HasslesOkay, it’s true. No one wants the headache of having to repair a refrigerator or to fuss with an unruly tenant; and its understandable why that concern does prevent many people from becoming real estate investors. But life is always a series of trade offs, and trading off an occasional migraine for potential future wealth is generally worth it.However, it’s also true that in time you will learn to deal with and manage most issues in your sleep. If not, you can always hire the services of a reliable property management company to deal with it for you. For about ten percent of the rental income, a property manager will do all the dirty work; the advantage being that it will relieve you of the time and stress of having to deal with tenants and repairs and in turn puts matters like late rents into the hands of experts.Lack of Real Estate ExperienceJust because you have not yet purchased an investment property should not keep you from real estate investing. In this case, locate a real estate agent who specializes in investment property to assist you.When it actually comes time to buy a rental income property, you’ll be surprised to discover that it’s not as insidious as it looks, and tapping into the mind of an expert will increase your comfort level significantly. But the keyword here is investment property specialist. A real estate agent who just sells houses won’t benefit you; you want a real estate professional with true real estate investment experience.It’s Time to Get StartedGranted, the hardest part about jumping into real estate investing is getting started. We’re great at making excuses, and there are always numerous reasons to put off starting something new.Yes, we want to be cautious. It’s better to put the breaks on and approach real estate with adequate knowledge. So if you’re struggling, here’s my suggestion: learn, research, and plan. Educate yourself about real estate investing, learn about real estate in general and more specifically about your specific real estate market, and develop a road map about the financial security you hope to achieve.Afterward, pick out that first rental property, make a purchase, and then take over as manager. If you’ve stuck to your investment plan goals, calculated the numbers, did your due diligence correctly, and work diligently to increase income and control expenses, in time you’ll be able to move on to bigger and better properties.After all, that is the nature of real estate investing.

Colorado Springs Real Estate – Black Forest Homes

Find your dream house property in the Colorado Springs real estate area of the Black Forest. This part of the Colorado Springs real estate area is located in northern El Paso County. The Black Forest is a rural area that is situated on approximately 200,000 acres of land. The area is heavily wooded with mostly Ponderosa Pine trees. Black Forest is a mix of older homes and newer homes. The northwestern Black Forest real estate area includes: High Forest Ranch established 2001-2004, Walden established 1965-2002, Hawk Ridge established 1994-2000, Wissler Ranch established 1996-1999, and Elk Creek Ranch established 1980-1993.Home Prices & DescriptionsMany of the homes for sale in the Black Forest real estate area are 5 acre house properties. There are mostly ranch style homes and 2 story homes. Some of the homes are custom homes and reflect “country style” living and some of the homes resemble houses that blend into “city living”. Many of these Colorado Springs real estate subdivisions include features such as: multiple decks and fireplaces, slate floors, barns and garages, granite counters, and theater rooms.The minimum sales price for homes in 2008 in the Black Forest is $375,000. The minimum size Black Forest home for sale is 3,408 finished square feet. The minimum home for sale is 3 bedrooms, 3 baths, and a 3 car garage. The average sales price in 2008 is $650,000 and is 4,527 finished square feet. The average size home for sale is 4 bedrooms, 4 baths, and a 4 car garage. The maximum sales price in this Colorado Springs real estate area is $925,000 and is 5,646 finished square feet. The maximum size home for sale is 5 bedrooms, 5 baths, and a 5 car garage.One of the newer communities in the Black Forest real estate area is the prestigious High Forest Ranch. The Ranch has rustic custom homes for sale. There are close to 20 different custom builders to choose from. Some of the homes in this Colorado Springs real estate area are situated on 2.5-5 acres of land. Residents in the High Forest Ranch area have community lodge at their disposal for those special occasions. The custom homes for sale in this Colorado Springs real estate area range from $499,900-$3.5 million. Amenities for some of the homes include: multiple fireplaces, slab granite counter tops, vaulted ceilings, great rooms, family room, master retreats, theater rooms, billiard rooms, wine rooms, travertine flooring, outdoor covered decks, and wet bars. Many of the Colorado Springs homes for sale in this area have extensive timber and stone features.The Walden real estate area has beautiful custom ranch style homes with lots between approximately 1/2 acre and 1 acre in size. Many of the homes have stucco exteriors and resemble more of a “city look.” Some of these Colorado Springs real estate neighborhoods include: custom cabinets, molding and trim, granite slab kitchen counter tops, hardwood floors, multiple fireplaces, 5 piece master baths, vaulted great room, stucco exteriors, perennial gardens, offices, recreation rooms, game area, formal dining rooms, wood decks with hot tub, walk-out rancher, and gourmet kitchens. Homes for sale in this Colorado Springs real estate area range from the high $200,000s to just under $600,000.In the privacy of the pines is the prominent Hawk Ridge real estate area. Hawk Ridge has homes for sale on approximately 2.5 acres or less. Many of the homes are custom homes with features like: hardwood floors, walls of windows, multiple fireplaces, French doors, granite kitchen islands, custom cabinets, hand crafted banisters, ponds, walk-out dining area, and large decks. The homes for sale in the Hawk Ridge community range from the approximately the mid $500,000s to 1.3 million dollars. This part of the Colorado Springs real estate area borders the Black Forest area.The Wissler Ranch homes for sale range from the mid $400,000s to $900,000. Some of the homes have luxurious living and family rooms, huge open kitchens, spacious master suites, home theaters, wine cellars, exercise rooms, recreation rooms, and 5 piece master baths. Many of the homes are on approximate 3 acre lots. Some of the homes are gorgeous cottage style houses with old world charm. The homes for sale in this Colorado Springs real estate area range from the mid $450,000s to the mid $800,000s. The Wissler Ranch community also borders the Black Forest area.There are some homes for sale in the Elk Creek community in the low $200,000s. The homes are located in meadows and in the woods. Most of the homes are on five acre lots and are zoned for horses. Some of the homes have beautiful mountain views and some are located in the meadows and have natural streams running through the properties. Many of the homes include barns, storage sheds, fences for horses, RV parking. There are custom homes in this community. Find your perfect dream horse property in this Colorado Springs real estate area. Amenities include: vaulted/beamed ceilings, large kitchens, fireplaces, skylights, multiple decks, oversized garages, and covered stalls.Schools.The schools of attendance are: Lewis Palmer Elementary School, Ray E. Kilmer Elementary School, Lewis Palmer Middle School, Creekside Middle School, and Lewis Palmer High School. The schools are part of the Lewis Palmer School District 38 boundary area.Neighboring Communities.The Southwestern portion of the Black Forest is located to the south and contains the Black Forest Regional Park. The Black Forest extends to the east. The Kings Deer, Canterbury, Fox Run, and Cherry Creek Crossing subdivisions are situated to the west.Commuting.The northwestern Colorado Springs real estate area of Black Forest is located near Highway 83 and County Line Road. It is convenient for commuting to Colorado Springs and Denver. This part of the Air Force Academy real estate area is located approximately 30 minutes or 22 miles from the USAFA main gate and is a possible Colorado Springs military relocation choice.Recreation.The High Forest Ranch community has miles of hiking trails and open space. It is close to the Tri-lakes real estate area. Three lakes and multiple golf courses are located in the Tri-lakes area. Shopping is close by in Monument, Castle Rock, Denver and Colorado Springs real estate locations.