Mental Muscles

Archive for the ‘Property Fortunes’ Category

Radio hobbyists can play with their equipment all day without giving a thought to the origins of their hobby. Early radio hobbyists were part of something that was, at the time, new and fairly crazy.

After radio technology was stabilized, there was a steady growth of radio signaling in the fields of navigation of ships and for rescue operations. On the other hand, the amateur radio operators also started to dominate the air. The first documented and famous amateur wireless enthusiast was a then young man named Irving Vermilya born in 1890 when wireless transmission was being born. The young man since age 12 heard Marconi and built his own wireless transmission equipment and was often “heard” telegraphing with ships during that time. In 1911 he became a member of the Radio Club that had been formed. He got himself certified in 1912 when law mandated all wireless operators to be certified. In his own words,

This was pre-audio era, and communication was purely in Morse code. Irving then organized his own amateur group who had regular meetings monthly and would communicate daily wishing “GM” (good morning) and “GN” (good night), some of the first amateur jargon to be used. He also proceeds to describe in his series of articles published in QST magazine in 1917 as to how they managed to lay the telegraph lines and such and how they “drew juice” for the wireless operation from the electric lines instead of relying on batteries.

Meanwhile, apart from the “professionals” and “amateurs”, with audio wireless signal transmission there was a new revolution setting in. A Dutch engineer in Hague was the first to make regular wireless transmission via radio. This could be considered the first regular radio broadcast. After this there was slow development until the commercial radio stations came into being.

The requirement to be certified killed the enthusiasm in many amateurs, and the number of amateurs dwindled. But then after WWI, there was a boom. The first radio clubs were formed in 1909 and this was the beginning of the radio hobbies which included radio as a part of the hobby activity.

During the WWI the amateur radio operators were asked to stop their activity and dismantle the equipment. Radio operators in uniform helped in military communications. They got back on the air again by November 1919 again. A similar lull in amateur radio happened during Second World War and got back on air by 1946. After lots of battles over the frequency range that the amateurs can tune into, the amateur radio is here to stay!

At present there are more than 170,000 ham operators which is possibly not the complete picture. It is still increasing. So, with Irving Vermilya was born the amateur radio operation, since he was the first radio hobbyist. After lots of developments, including the discovery of the transistor which greatly decreased the size of the radio equipment, the old ways still remains which included “waiting for someone to signal”.

The rules to get oneself certified and licensed included a Morse code proficiency until the World Radiocommunication Conference in Geneva in 2003 that eliminated the need for Morse code proficiency from the licensure tests. Taking effect from February 23, 2007 the Morse code has been eliminated from the tests for amateur radio license tests.

The idea of pre-construction investments when it comes to real estate is actually quite a clever way in which many have made millions. The theory is simple really. Invest in a property before when it is in the planning stage. Those who will be building these buildings need money and investors in order to do get the building off the ground. By investing (in many cases basically purchasing options to purchase) in the units, typically condo units in high demand areas, before the ground is broken investors often have the option of investing for pennies on the expected dollar once the building is complete and can re-sell the property at full market value once the building is complete pocketing the difference in the original investment and the asking price.

This is a win-win situation for many builders or ‘owners’ of the property in questions because ‘pre-selling’ the units allows lending agents to have confidence in the viability of the project as a money earner by selling many of the units sight unseen. The benefit to investors is that they are able to purchase at a much lower price pre-construction than afterwards and can sell afterwards at the full market value (or above in some high demand and under saturated areas for real estate).

This style of investing is not nearly as glamorous to some as flipping houses. There are no beast to beauty renovations. There are, however, some things that should be kept in mind while making this type of transaction.

First of all, no real estate venture is ever guaranteed to turn a profit no matter what the glossy little brochures tell you. With the current trends in property sales, this is typically not the best environment for pre-construction investing though these things tend to change on a regular basis and that market could be looking up again in the very near future.

Second, networking is more often than not the best way to break into this particular business. There are all kinds of fly by night would be real estate investors. The ones that manage to last are those that network with other real estate agents as well as those who have specific interests and experience with pre-construction investments. Join local groups in addition to online groups that deal specifically with this sort of investment in order to get more information more quickly. The costs involved might appear daunting at first but they are far less than the costs of getting in over your head by not having a grasp of even the most basic ‘ins’ and ‘outs’ of pre-construction real estate investing.

Third, develop a close-knit relationship with a realtor that specializes in this particular type of real estate investing. This could prove to be the most beneficial thing you will ever do in order to insure future success. Be developing the right relationship with the right realtor you can get information on new properties before they make it to the public sector. This puts you in the rare and wonderful position of beating the competition to the punch. This gives you a much better shot at receiving the rock bottom prices that are often missed by waiting too long to make the purchase.

Fourth, be prepared to hold onto the property for a little while if you need to do so. The problem with pre-construction investing is that there are no guarantees that when the time comes you will have been able to ‘seal the deal’. Things come up even when you have a buyer that is willing and eager to make the purchase. In other words, there are times when you will need to hold onto the property for a short while and sometimes as a long-term investment. Some options in the case of long-term holds would include renting the property out to vacationers if it is in a high demand tourist area. You can use your realtor to help with that. This allows the property to be earning some income until the sale can be made. Others decided to hold onto the property as a personal vacation home for themselves, friends, and family. In the end, the important thing is that there is a “Plan B” for the property should the deal fall through and you are left paying the monthly note.

Pre-construction real estate investing may not have the ‘name in lights’ appeal that other types of investing carry but it does provide a viable investment style that has the potential to bring in significant profits. The name of the game when it comes to investing is profits so keep this in mind when considering your investment options. This is one of the forms of investing that requires (in most cases) the least amount of capital up front.

There are all kinds of things you will want to consider when buying the real estate that your family will call home. The problem is that far too many get caught up in the small or cosmetic details of the purchase and search that they forget the primary needs of the family in the process. Keep the following things in mind when considering real estate purchases and you are much more likely to be happy with your decision a few years down the road.

1) Size. When it comes to real estate size really does matter. The problem is that it matters differently for different people. Those that are aging and whose families have left home would do well in smaller properties that required lower maintenance. Those with growing families need room to grow not only inside the house but also outside the home. If you have 5 children you do not want to be crowding them into 2 bedrooms nor do you need five bedrooms (unless you want them of course) if you are a confirmed bachelor. Size is an important consideration when deciding on a house that will meet the needs of you and/or your family.
2) Neighborhood. This is important for everyone. No one wants to buy a home in an area where they do not feel safe. At the same time most people also do not want to live in a neighborhood that is just entering into or on the verge of a state of decline. Remember that a home for the most part is a 30-year commitment you want to make that commitment in an area that is slated for growth rather than decline.
3) Property Value. The value of your property is what makes real estate an investment. The general idea is that in the 30-year period you are making the payments on your home the value of the home will experience a slow but steady increase. If the area you are considering for your real estate purchase has experienced a couple of years of declining property value you may want to find out the cause before making the investment and placing your family in that area. It could be an indicator of potential decline.
4) School District. This is typically only a consideration for those who either have children or are planning to have children. For those however, it is a very important consideration. Most school districts around the country are determined by the neighborhood in which you live.
5) Cost. This is a very important consideration for most people who are searching for a home. Obviously you want the best possible value for your money but you should take care that you do not find yourself slaving away to merely eek out your house note each and every month. You need to be able to live comfortably within your means along with your house payment in order to have the best possible real estate situation.

Of course there are other common considerations that should be taken into account. Among those are the condition of the home, the number of similar families in the area, and the closeness of the area to other conveniences such as stores, work, and entertainment. All of these things add up to a deep satisfaction in the home you have chosen or growing discontent over the years.