My Real Estate Articles:
Economical Ways To Improve Your Home added 5-8-2012
Your home is the biggest investment that you own. Naturally, you would like to make your home into the haven of your dreams. However, you may frequently find that the cost of home improvement is prohibitive. Fortunately, there are many ways in which you can beautify your home without breaking the bank. Here are some suggestions that you may want to explore.
The kitchen has become the most popular room in the house. It is often heavily used by all members of the family. A full kitchen remodel can be very expensive. However, if your appliances and cabinetry are in good shape but you just want to give your outdated kitchen a new look, consider refacing your cabinets instead of replacing them. In refacing, the basic cabinet structure remains intact, so there is no tear-down. New fronts are applied, and the cabinets sides get new laminates. This produces a brand-new look for your kitchen at a fraction of the cost of replacement
Your bathroom can easily be updated by just changing the fixtures and giving the walls a fresh coat of paint. Replace your shower curtain, and add a new, plush bathroom rug. You can even replace the towel rods with something with an interesting design.
Your other rooms can also be freshened up with a new coat of paint or new wall paper covering. Explore painting techniques to add interest, such as using sponges to give a textured look. Go to the paint section of your home center and explore different color combinations for trims. You can even add molding to the walls for an upgraded look.
Light fixtures come in a multitude of designs and styles, and they can really set the ambiance of your living and dining rooms. Think about what kind of mood you would like your rooms to reflect, and browse your home center or online lighting catalogs for ideas.
Replacing your carpeting can be expensive. Sometimes, all your tired-looking carpet needs is a good, deep cleaning. You can rent a professional-grade carpet steamer to clean the carpet yourself, or you can hire cleaning professionals. After your carpet has been thoroughly cleaned, add decorative area rugs to highlight certain areas of the room.
Do not forget the front of your house. Your front yard plays an important role in the overall look of your home because it is one of the first things that people see as they look at your house from the outside. If your lawn has seen better days, replace it with new sod. Add a splash of color by planting pretty flowering shrubs in bare spots. Look for interesting lawn ornaments to enhance your entry path to your home. You can even highlight your entry path with solar lights that will emit a warm glow in the evenings.
As you can see, home improvements need not be overly expensive. Little enhancements can go a long way. The key is to start with a small project that will give you quick satisfaction. You will be pleasantly surprised at what a difference it can make to the look and feel of your home.
Things You Should Avoid When Improving Your Home added 4-11-2012
It is a well-known fact that many people try to do improvements on their home that actually hurt them instead of helping them. There are a few things that you can do to your home that will decrease the overall value instead of adding to it. Use the tips in the following article to make sure that any choices you make will not affect the worth of your home.
Do not make your home a personal shrine to your tastes. While it is nice to have some originality, being too unique will alienate a lot of buyers when they come to look at your home. If you have no plans to sell your home you can go wild and do what you want, but be careful if you know your home may be back on the market one day.
When you are working on any landscaping and do work to the outside of your home it is wise to do projects that are similar to that of your neighbors. You do not want your home to be so different than all of the other homes on your street that it stands out negatively. If everyone has nice flower beds and bushes, you do not want to be the only one with a hulking tree in the front.
Every home has a personality and a particular style and any changes that you are making need to go with that same style. If you have a home that is more classic then it would not do you any good to try to add fixtures that are much too contemporary to comfortably fit the theme.
Once you make a decision on what direction you want to take with your home you need need to stick with it. You do not want a lot of clashing styles in the home because it will turn off anyone who might be looking to make a purchase. Also, you should make sure to always complete any projects that you start because nobody will find your unfinished project to be appealing at all.
When you try to come up with a budget for the project you need to be realistic. Do not underestimate because then you end up with half done work and no more money to finish it. You also do not want to overestimate so you end up with a ton of extra supplies and materials that you have no use for
While you may be excited at the thought of doing a project independently, make sure that you know when you need help. Call in a professional if you feel like you are getting in over your head.
Using the tips you read here in this article will help your home improvement project go smooth. You will end up with something that you love and that may add significant value to your home. Do your best and make sure that you have fun with it. If you do, you will be more likely to enjoy the outcome.
Commercial Real Estate Tips That Every Buyer And Seller Should Know aded 3-14-2012
Commercial real estate can be time consuming and difficult. But, the rewards you reap in the end make it all very worthwhile. Use the guidelines in this article to help you begin your successful commercial real estate investment career.
You should expect your commercial real estate investment to require a significant time commitment. Finding a good opportunity, going through the transaction and making any necessary repairs to the property takes time. Don't give up, this process will take time and you just need to be patient. Your rewards will come later.
If you are considering apartment complexes as your next investment, remember that smaller complexes may be more trouble than they are worth. In fact, many experienced investors recommend only investing in properties with 10 or more units. No situation is the same as another, and proper reseal should help you reach a knowledgeable decision regarding any purchase.
Bigger is better in commercial realty investments. If you are considering buying a five-unit building, remember that managing 50 units is just as easy as handling five. A small building requires the same paperwork and financing as a larger building, and larger buildings end up costing less per unit.
When thinking about financing for properties of a commercial nature, it is important to go over paperwork with a reputable real estate attorney. If the deal goes south for any reason, it's important to have someone on your side that will fight tooth and nail to represent your interests.
Before you even start looking for real estate, your business needs should be in line. You should be aware of every aspect of your ideal office space. If you expect significant company growth in the near future, you may want to invest in an office that is larger than your current requirements. Given the current state of the market, it can save you a lot of money in the future.
Commercial loans differ in several ways from residential loans; for one, they require a higher percentage deposit. Approach different lenders and consider all your options until you find the best deal. Knowledge is your biggest asset when seeking commercial financing.
It is vital that you stick to the rent and other terms that you previously decided on whenever you write a new lease. Otherwise, your investment properties will not be profitable. You should know exactly what you'll be charging for rent before you speak with any possible tenants. By doing this, you can set and obtain goals for yourself, based on how well your property has performed for you in the past.
When you buy commercial property, you can profit very well because of this. The suggestions presented in this article should help you avoid some of the most common pitfalls, and move forward toward success.
Check Out These General Insurance Tips Here! added 2-27-2012
Some people are overwhelmed by all the types of insurance available, from medical to life, auto to home owners. Read on to learn about different types of insurance, and which ones are most vital for you to purchase immediately. People can find insurance bundles through companies where they can get many things covered, like a car, boat, house, and car with the same company. This will mean working with just one company while saving money.
Top Ideas To Consider Before Your Next Commercial Real Estate Venture added 1-24-2012
Commercial real estate comes with its own set of rules, making it an intimidating jump for those interested in purchasing property. It is sometimes overwhelming, even to those with much experience. By researching and reading this article, it will allow you to feel less stress associated with the commercial real estate journey.
Always go through the disclosures of an agent before hiring him or her. Determine if there is a possibility that he will be working as a dual agent. If so, the agent will represent both sides. This will mean that the agency will work with the landlord and tenant simultaneously. Both parties need to clearly understand that the transaction is being handled by a dual agent and consent to this fact.
Be aware that not all commercial brokers are alike. Choose the real estate broker who will best help you meet your needs. For example, some brokers represent landlords as well as tenants, while others only work with tenants. If you're going to be a tenant, working with a tenant-exclusive broker benefits you because of their relevant and deep expertise.
Before working within the market, you should first locate and secure adequate financing. There is a big difference between a home loan and a commercial loan. Commercial loan products actually offer some benefits that residential loans don't. To acquire a commercial loan, you will likely have to cough up considerably more of a down payment. On the other hand, you won't be liable personally if the loan falls through. Furthermore, these loans are more lenient if you want to acquire part of the down payment from a family member, friend or acquaintance.
Looking for commercial property can be overwhelming and stressful for those who are new and those that are experienced. The advice in this article should help make the process of buying commercial property proceed more smoothly.
Things To Consider About The Commercial Real Estate Market-added 12-14-11
Finding the right type of commercial property to start your business can be difficult unless you know where to look. Even if you're looking to sell an office building or another type of commercial property, instead of purchasing, you still need to be properly informed. Make sure you read this article.
Negotiate the terms of your lease. If you are a small business owner, you should negotiate one or two year leases to ensure flexibility to grow your business. Have an option to renew your lease if you need to with a predetermined rent amount to avoid unexpected, usually catastrophic rent increase at the end of the term.
One important tip to remember when investing in commercial real estate is to buy a property with as many units as you are able to afford. This is important because your income ratio will increase with the more units you are renting out. While you do have to pay more upfront, your return on the investment will be much greater.
When trying to get your golf ball out of a sticky situation such as a sand trap, don't quickly look at the ball after you hit it to see where it goes. It is essential that your head stays still while you complete your swing in order to be more effective.
If you have a commercial property to sell, make sure that you put in on the market while it is active. The prices of commercial real estate go up and down often depending on the state of the economy. If you sell while things are in an upswing you can expect to make large profits.
Know your goals for a potential property when you are buying commercial real estate. Do you plan on having your own business on the property or do you plan on leasing it? Have clear and specific goals before looking for commercial property it will save a lot of time and effort with your narrowed down results.
When you look for a real estate broker, you should look for certain abilities. You will need a broker that knows how to negotiate and stay firm on a position. You have to be able to trust your broker and be sure that they have your best interest in mind.
The article you just read, contains a lot of useful tips you can use when buying or selling commercial property. There's very little room for error in the commercial real estate market, and one wrong move could completely end up destroying you. Use the advice you learned here to stay as informed as possible.
How To Be On Track Financially added 11-22-11
It is not uncommon for people to need help with money management. If you happen to be one of those people who could use some money management help, this article offers helpful tips that will get you on the right financial track.
The first thing you need to start doing is saving money. Choose a set amount or percent of your paycheck that you want to start saving. Each time you get paid put this amount into a savings account. With a growing savings you will be able to use it in case a true emergency arises and you won't find yourself choosing if you should pay the bills or buy groceries.
Paying your bills on time will help you keep more money in your pocket. Many debts or utilities will charge you a hefty late fee. If you pay on time you can avoid these charges.
You can keep more money in your account or pocket by not going out to eat as much. Eating out can be quite expensive if you do it too often. Plan to eat more meals at home and you can save quite a bit of money.
If finances are tight, you may want to pick up an additional job. Working part time somewhere can help you save more money, and have more money to pay your bills, or just have fun with.
Another way to earn extra money is to pick up odd jobs. You can find random jobs in the newspaper or online at Craigslist. This is a great way to make money if you can not commit to a true part-time job.
You can also earn money by selling items you no longer use. There are many ways to sell unused items. One option is Craigslist. You can also try eBay. If you have many things you would like to get rid of, have a yard sale.
If you are able to, do not drive as much. You can either car pool, walk, ride your bike or take public transportation. This can be a huge savings not only on gas, but on the wear and tear of your vehicle.
As you can see, there are many things you can do to get on the right track financially. Try out one or more of the tips in this article and will find that managing your money can be easier.
Advantages of Florida Keys Real Estate Investments added
9-27-11
Florida Keys real estate investmenting, has become one of the most
impressive investing opportunities in the world. It offers numerous
benefits to investors who wish to earn long monetary gains through
real estate investments. Although, there are other areas, where
money can be invested, out of all of them, Florida Keys real estate
is the most promising.
One main reason why investing in FloridaKeys real estate is so advantageous
is that the price of property in this region is very affordable now.
So, making an investment can help investors secure possible
large term gains.
Individuals can also invest in commercial real estate in Florida.
The commercial sector of this region is always booming.
Business
options such as spas, restaurants, night clubs, bars and specialty
shops and stores are the best choice to be started. Plenty of properties
in Florida can also be rented out. In case investors get tired of
dealing with rentals, they can always sell their property and potentially
make a profit..
Florida real estate investments offer greater security, safety and
profitability. The best fact about investment in Florida is that
even amateur investors can pool their money in order to take advantage
of great prices and income potential.
Mortgage Refinancing Added 8-2-2011
Making changes to your living and financial situations can be very difficult. When it comes to money and home payments, thinking about refinancing or other large changes can cause unnecessary stress and headache. Additionally, your friends, family and mortgage lenders will all tell you different opinions about what you should do, making it almost impossible to make an unbiased decision. Your home is your castle, and you want to make sure that you are doing what is best for you and your family.
There are several different reasons why you might be considering a mortgage refinance. A home refinance is not a bad thing. People refinance for several reasons, and it in no way is a sign of financial difficulty or danger. Typically people refinance because they can benefit from it. You might be interested in taking advantage of the lower mortgage interest rates that are available since the economic downturn several years ago. With a refinance, you have the opportunity to restructure your loan with a lower interest rate which means that you will be required to pay less money per month, and that more of the money will be used to pay off principle and not interest. Perhaps you have the ability to start paying more each month towards your loan principle. You may want to restructure your mortgage so that you can pay it off more quickly, which generally results in a lower annual interest rate. This will allow you to purchase your home free and clear more quickly and save money on interest payments at the same time.
People will often refinance their mortgage to consolidate debts or to help fund necessary home repairs. If you have been interested in remodeling or improving your home, you can refinance and withdraw the cash value of your home, above what is owed, to be put towards the cost of the repairs. Additionally, if times are tight, you can extend the term of your home loan so that you pay less each month. This generally leads to a raised interest rate on your mortgage, but will allow you to save money each month on your required payment. If you are interested in saving money on your home or freeing up some cash to make home repairs or pay growing bills, learn more about the mortgage refinance rates in your area and see if you could benefit from a mortgage refinance. Guest post by Jessica Thorseon at MortgageRefinanceRates.org.
Fiscal Suggestions Pertaining to Retirement living and planning-added 7-21-11
Because of a economic depression, lots of people begin to take into
account the retirement plan planning before it is far too late.
Scientific studies have demonstrated that lots of individuals coming
from various levels are likely to encounter complications of economic
considerations in the future as well as begin to take their retirement
life preparation very seriously. Furthermore, anticipate one or more
in 10 older people to put off retirement life as much as 5 years.
Additionally, forty one % in the over-55 adults postpone their very
own retirement living.
Whenever you are younger, you by no means consider retirement living and preparation. Nevertheless the quicker you start preparing for retirement living, so much the better. It's not at all actually undesirable, even though you start late in life. The financial savings with regard to retirement living ought to be atop this list. These products have income tax advantages also.
Preparing with regard to retirement living is additionally essential because it enables you to perform those activities which often we'd let disappear, whilst doing the job. It might include things like travelling, researching, getting together with family members, commencing a brand new enterprise or perhaps having a retired life. Retirement living cash flow originates from social security, retirement benefits, personalized financial savings as well as investment funds. Consequently, meticulous planning is necessary and also the cost of living needs to be considered also.
5 Pitfalls To Avoid When Searching For Your Next Investment Property. added 6-24-11
Finding a bargain investment property on paper is only half of the process of property investment. The other half of real estate investing is going down to the property to examine the real estate investment property physically for defects either in terms of the construction and legal title and other liens that can be on the property. You do not want to spend lots of legal costs later to undo the bad lemon you bought into. This article will highlight five possible things to consider when searching for your next investment property.
Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.
Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a ìgrim estimateî to the house owner and bring down the cost of the property.
Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.
Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.
Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.
Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.
In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams.
*It is my job to guide you through this entire process. Please Contact Me for more information. For Lower Keys Commercial plus Residential Real Estate I am here to help.
5 Features to Look for when Choosing a Property Rental Service added 5-26-11
Thinking of using a property rental service to manage your vacation rentals or apartment for rent in Spain? Here are five key features to watch for before choosing a service...
If you're thinking of using a property rental service for your Spain holiday rental or apartment for rent, there are some key features you should look for before making a commitment. You'll want the best possible service while also earning maximum profits for your vacation rental. Here are five major features every property rental service should offer.
1. Excellent Customer Service
Your guests will remember you by the service they receive during their stay at your villa rental, apartment or vacation rental. The property rental service you choose should offer excellent customer service and be able to provide testimonials from satisfied property owners. Your guests should arrive to a clean villa, home or apartment.
If renting for a vacation, golf holiday or some other Spain holiday, each guest should receive a welcome packet including directions to the rental property as well as helpful information about the surrounding area. If you have an apartment for rent, tenants should be treated well. Rental payment collection, service maintenance and assistance with local utility and phone set-ups should be provided with friendliness and thoroughness.
2. Cleaning Management
A property rental service should provide reliable cleaning management. You might live too far away to handle cleaning or manage a maid service. If you live in England or the U.S., but your vacation rental or apartment for rent is located in Fuengirola, Mijas, Puerto Banus, or Elviria of Spain, then you'll need a property rental service that will handle cleaning with care. For holiday rentals and villa rentals, cleaning must be provided between each guests' stay and sometimes during the week of a stay as well. For vacation homes and villas, the lawn must be maintained as well. Be sure this is included with your service.
3. Key Holding, Inventory, and Detailed Necessities
You may not be able to handle local errands for your vacation rental or apartment for rent. Therefore, the property rental service should be entrusted with these tasks. Some necessities to keep the rental property operating legally include key holding, insurance, property tax and levies, building permits or licensing, bank account management, phone and utility set up and billing, etc.
Another area of importance is inventory. The furniture and other valuables in your apartment or villa rental must be kept on an inventory list and checked physically each time a guest departs. If you live in another country but own rental property in an area of Spain such as Costa del Sol, Marbella, Benalmadena or any other area, then obviously you're going to need someone locally who can check your inventory for you. Choose a property rental service that provides these types of services to eliminate worries while you're away.
4. Building Refurbishing and Major Repairs
Another feature to look for in a property rental service is whether or not they provide building refurbishing services and major repairs. The benefit of this is the provider will already have contacts to do the jobs needed. You won't have to spend endless hours trying to find a dependable contractor or handyman.
5. Promoting Your Apartment or Spain Holiday Rental
Check to be sure the property rental service will promote your apartment for rent or Spain holiday rental. Promotions will increase your number of rentals and profits each year. A property rental service may handle your advertising in local, national and international venues. If they have a website, they may promote your holiday rentals at the site. If you own a vacation rental near golf courses, then make sure they will advertise your rental from the angle of "golf holidays.
Keep these features in mind during your search for a property rental service. By choosing a service with great features, you'll have peace of mind knowing that your holiday rental or apartment for rent is in good hands!
5 Pitfalls To Avoid When Searching For Your Next Investment Property added 4-29-11
Finding a bargain investment property on paper is only half of the process of property investment. The other half of real estate investing is going down to the property to examine the real estate investment property physically for defects either in terms of the construction and legal title and other liens that can be on the property. You do not want to spend lots of legal costs later to undo the bad lemon you bought into. This article will highlight five possible things to consider when searching for your next investment property.
Firstly, unless you find a property that is really run down and you want to tear it down to its foundations, you want to look out for properties that might have potential electrical and water piping problems. The reason why this is critical is that, wiring and water piping is usually hidden behind walls and other furniture fixtures and repairing them can be a very costly affair since you have to hack into the walls and run the piping and wiring if the problem is very serious. If you are new to property investing try to bring a electrical engineer along with you when you are doing some property inspection.
Secondly, foundation problems are usually harder to spot. When walking around the property, look for cracks appearing at the side of the house and the foundation that goes into the ground. Look for large unusual holes found at the side of the property and cracks on the exterior paint of the building. You might want to bring a civil engineer and a contractor along to figure out how much it would cost to fix the property if you suspect the repairs involved will be substantial. You can also bring them along to give a ìgrim estimateî to the house owner and bring down the cost of the property.
Thirdly, roofing problems can be a persistent nightmare to you and your potential tenant if you are purchasing the real estate for tenancy purposes. When inspecting the house, look around the ceiling near the windows and around the edges of the walls to look for new paint or yellow spots or cracks with water in them. Most sellers would be smart enough to eliminate the water bubbles after a heavy rain when trying to sell the property, but it is always important to figure out if there is a major leaking roof which might cost you are lot into repairing it. Use this defect to negotiate the price of the property further if you are interested in the property.
Fourthly, another reason why the investment property in question might be a bargain might be because there are legal problems associated with it. Common ones include, multiple owners that cannot agree whether to sell or not. Litigation here would be futile and you should avoid such property once you learn about it.
Another problem might be a lack of clean title. Did you know that the seller can be selling you only the building without the land or maybe there are existing tax liens on your property or some other liens that can prevent you from getting good title to the property? Spending some time chatting with a reliable real estate attorney to learn about common real estate problems in your area can save you lots of legal problems later.
Fifthly, bankruptcy of your seller or one of the part owners of your real estate may depending on the legal proceedings of your state affect your ability to transfer title quickly. Most states make it a requirement that the receiver of the bankrupt has to agree so pay careful attention to the bankruptcy legislation of your state. That being said, sometimes the banks are willing to sell you at a bargain so as to recover the bad debts quickly so do your homework before purchasing such an investment property.
In conclusion, these five pointers can be used as a starting point for you to evaluate your property investment. Spend some time to think rationally about the properties that you have seen and see if they have any of the above flaws and consider if you want to continue purchasing them and whether the costs that you may incur in fixing them will justify the discount of the property to the market value. Above all, take massive action today and pursue your property investment dreams.
Should I Consider Purchasing a Home After Foreclosure? added 3-28-11
Foreclosures on the market are normally available, regardless of the condition of the economy. Buying a foreclosure might or might not end up being a wise plan of action. Following are things to consider before you take the leap into purchasing a foreclosure.
Is it best to buy a foreclosure or delay the process until the bank
or mortgage company has completed their process? Typically you will
get a better deal, if you make your purchase during foreclosure.
However, you could be truly getting the property "as is" with
few, if any, guarantees. Making a proposal after a home becomes an
REO (real estate owned) of the lender may cost someone a little more,
however, the key owner/lender has more then likely spent some funds
in repairing some problems and/or giving the home and property a
little TLC to make it more saleable.
Is the property truly a great buy?
Many people mistakenly assume that all foreclosures equate to a bargain
purchase. Consider that belief a bit. First, most foreclosures take
place on real estate where little equity exists. For example, people
owning a home worth $250,000, but having only a $100,000 first mortgage
will typically never allow the property to be susceptible to foreclosure.
They might be throwing away $155,000 in equity.
Contrast that example with another $250,000 home with a first mortgage
balance of $245,000. If you could not afford that home, you might
be much more likely to let it go to foreclosure since you are losing
little money. You, being the buyer, might need to pay near the FMV
(fair market value) of $250,000, even if it were a foreclosed property
or home.
Are there any expensive repairs that should be completed before you
resell or stay in the property or home?
The nature of home loans may make it faster and easier to purchase
a house in great condition for a higher price than to request "rehab" or
repair dollars to get integrated to the loan. Often, you may be required
to fund major repairs out of your own pocket.
You should find MLS (multiple listing service) listings of similar homes for sale in the same neighborhood as your preferred foreclosure home to compare prices. Is the price of the foreclosure substantially lower than current prices for matching homes? When the price is similar, you may be wiser to buy a house from a professional real estate professional. Should the purchase price for the REO be substantially less than typical FMV for that area, you might have an actual bargain.
Avoid 12 Common Mistakes Made by Novice Investors and Ensure
High Rates of Return! added 1-19-2011
Real estate investment has provided many investors with positive
cash flow, tax
benefits and satisfaction of making an impact in others lives. Like
any investment
however, real estate has intricate nuances and market trends that
when ignored
can cause an investor tremendous heartache.
Unbelievably many first time investors are willing to part with their
hard earned
cash without taking the time to study their investment. They rely
on traditional
trends and gut feelings. Before you risk your investment take the
time to learn all
you can about your market. By aligning yourself with the right Professional
you
can avoid these 12 common mistakes, and you’ll ensure an excellent
return on
your investment.
1. Failure to Determine Your Time Need – Cash flow, capital appreciation,
tax
benefits, loss of management, equity pay down and pride of ownership
are just
some of the thing s that need to be addressed before you make that
investment. A
service -minded real estate professional can be a tremendous asset
by taking the
time to evaluate your needs and making sure you’ve got all your bases
covered.
2. Not Checking out the Seller or Sellers Agents Numbers – Claims
of extremely
high rates of return run rampant in real estate investment. Don’t
get caught up in
the excitement – check everything: rents, payment history, taxes,
expenses,
deposits, future modifications… everything. Make sure you have the
right
agent…it’s like having a good insurance policy against overlooking
all the
seemingly insignificant but very important details.
3. Forgetting You Are Buying a Business – Owning investment property
carries
with it a great potential for creating wealth and… some potentially
difficult
decisions. Evictions, re -investment into the property and time management
all
needs careful consideration. Remember this is not a ‘hands off ‘business.
4. Avoid Negative Cash Flow – Property that eats cash every month
can drain
your working capital. This can create stress, frustration and become
quite painful.
Predicting constant appreciation is extremely difficult if not impossible
for the
unseasoned investor. A strain on your cash flow may cause you to
sell the
investment before the benefits of ownership are ever realized.
5. Failure to do a Thorough Inspection – Look under every rock! Hire
a
professional inspector. Ask the tenants about pest problems, structural
damage
or reoccurring problems. Don’t overlook anything! A value driven
real estate
professional will help you find the right inspector and can help
you avoid costly
mistakes. When investing your hard earned money be sure and use sound
business judgment!
6. Failing to Have Adequate Insurance – Investment property brings
liability.
Tenants, cars, parking lots, cleaning facilities, and property liability
– the list is
quite extensive. Adequate insurance coverage is an absolute must!
Be sure to
consult with an insurance professional and protect your hard earned
assets.
7. Inspect, Approve, and Confirm All Documents – The list of documents
that
need to be proofed can be overwhelming to the first time investor.
Building
permits, zoning laws, rental and lease applications, CC&R’s,
by-laws, title policies,
inspection reports, purchase contracts, insurance.. Don’t attempt
to do it alone.
The right professional can remove most of the stress and bring the
transaction to
a conclusion smoothly.
8. Get a Bill of Sale For All Property Involved – Many types of personal
property
can be involved in an investment sale. Be very detailed -know who
owns what!
9. Charge Fair Rents – Vacancies, turnovers and lease terminators
are your
biggest expense. Charge fair rents, treat your tenants with respect
and respond as
quickly as possible to their needs. It’s a lot less costly in the
long run to take care
of the little problems before they become big problems. Vacant property
is your
Achilles heel.
10. Select Qualified, Good Tenants From t he Start – Take the time
to check
references. Previous landlords, employers, financial references,
credit and
judgments are all vitally important. If there are any questions–do
a thorough
investigation. Drive by their previous residence. A little work up
front can save
tremendous problems later.
11. Make Sure You Get Estoppel Letters – Get letters from tenants
confirming the
status of tenancy. Make sure their version of the rental or lease
agreement
corresponds with the seller’s interpretation.
12. Don’t Spend Positive Cash Flow – Most of successful investors
have free and
clear properties. Be sure to re-invest your cash flow back into the
property
payment and speed up the amortization schedule. This decreases your
debt load
and increases your equity, which builds your net worth. Investment
property can
be one of the most rewarding aspects of your financial portfolio.
Be certain to
have all your ducks in a row before you invest. Do your homework!
Consult with a
professional real estate investor and protect yourself from the hidden
troubles
that can plague first time buyers.
Benefits of Owning a 2nd Vacation Home added 12-2010
Looking for a tropical get-away that does not require a passport? Look at the Florida Keys. Stretching from around fifteen miles south of Miami to less than one hundred miles from Cuba, the Florida Keys offer a multicultural living and vacation experience to fit every budget.
Financing a Tropical Dream
Once reserved for the rich and the famous, a second vacation home can now be part of a smart investment portfolio. Mortgage rates are low, making financing a home in the Florida Keys more affordable than ever. Also, unlike the rich and the famous, the average individual is likely to rent his vacation home out to tourists when he is not using it himself.
Waterfront property is especially popular as a vacation spot. It
offers the amenities of the local community – restaurants, attractions,
transportation, security – and the beauty of communing with nature.
The income from these rentals often covers the entire mortgage, enabling
the owner to enjoy a free vacation in the Keys whenever he pleases.
Waterfront property also tends to appreciate in value over the long
term due to its lasting popularity. The savvy homeowner of a Florida
Keys waterfront vacation home is also building equity while he vacations
there and rents it out – equity that can either be cashed in at retirement
or lived in on a full-time basis.
Peace of Mind
Ask any therapist. The soothing sounds of the ocean provide the
perfect background for relaxation. With a vacation home in the Florida
Keys, no tapes or compact discs are needed.
Simply open the windows to enjoy the ocean’s relaxing sounds.
Also, as stress is a significant risk factor in elevated blood pressure,
a vacation home in the Florida Keys benefits the homeowner physically
as well as mentally.
Stress melts away with the ebb and flow of the tide, with the beauty
of the sun rising or setting over the ocean, with the gentle ocean
breeze.
One can almost feel his blood pressure lower with the laid back lifestyle. Or, if the need for some company arises, the Florida Keys offer a variety of restaurants, museums, parks, and attractions to amuse and entertain.
Add to the scenic view, soothing sounds, and peace of mind that comes with knowing that. No matter how stressful life becomes, a little slice of paradise awaits. It is a reward at the end of the summer, or at the end of a career.
Want an Investment Property? How About a Florida Vacation Home?
With the mortgage melt down, the last thing on most people’s minds is buying real estate as an investment strategy. Right? Well, no, not right! At least, when it comes to buying the right kind of home or investment home. Right…translates into buying a Florida vacation home.
The Ideal Florida Vacation Home Investment
Certain areas in the Sunshine State are ideal for investment now
in the current real estate market. Those areas are located mostly
on the shorelines of Florida: the south east coast, the Florida
Keys and the west coast from Tampa Bay and points south. There
are three good reasons why investing in a vacation home now makes
good economic sense:
1. All Florida home prices are depressed.
2. Short-term rental prices for the most part, have not declined.
3. A Florida vacation home can generate rentals all year round.
One must keep in mind that not all Florida vacation properties are good economic bets. First, the Disney area is not particularly a good investment. It’s a bit over built. Second, areas north of Tampa Bay on the west coast and north of Daytona Beach on the east coast have winters that are a little too cool to attract vacationers the year round. Therefore, the best places for investment in vacation rental homes will usually be further to the south. Also, the vacation real estate investor should only purchase in communities permitting short-term (weekly) rentals. Many of the advantages enumerated below will not materialize, if short-term rentals are prohibited.
The Mortgage Meltdown and Recession Has Created Gold for the Savvy
Investor
While home purchase prices have declined in Florida, the allure of
the weather, beaches and waters continue to attract vacationers.
During the summer almost everywhere in coastal Florida is a good
vacation choice. During the winter, the ‘snow bird’ crowd flies in
for several weeks or months of temperate weather in the more southerly
areas of the Sunshine State. During the rest of the year, short-term
rentals are fewer, but still exist.
In line with the above, a weak economy means that many, who might normally opt for a vacation in Europe, have decided to spend their vacations in Florida. Also nowadays, people employed in corporate America are less apt to take long vacations fearing that they might not have a job after returning from a two-week junket. Further, because of excellent airline service throughout Florida, now almost anyone can easily squeeze in a few days of sun from almost anywhere in the continental U.S.
This translates to opportunity for those looking to purchase vacation properties in Florida for investment. There are some excellent advantages to owning vacation real estate, as well:
• A Florida vacation property doubles as an investment as well as
a vacation escape
• With a fall in prices and rentals remaining at or near their previous
levels, a property on a weekly rental basis can quickly show a net
positive cash flow
• With basic depreciation and other out of pocket expenditures as
deductible expenses, it is likely that an investor can show a “taxable”
loss, thereby reducing federal income tax liabilities.
• Regardless of the future, a typical vacation home with its rentals
can carry itself handily on into the future. This of course, assumes
that the investor purchased the property at a reasonable level.
Assuming that a property can generate short tern rentals and also
assuming that mortgage payments are not excessive, a property as
stated previously will be a net positive investment.
As home prices start to regain their footing, vacation properties
in Florida, obviously will also enjoy the same price increases. If
an investor decides to sell his vacation property at a later date,
history has proven that the net rate of return on his investment,
including rentals should be equal to or greater than other investment
alternatives that could have been undertaken and available at the
same time. When taken in total, vacation properties in Florida in
the right areas at the right price is an investment worthy of serious
consideration.
Importance of dealing with an experienced agent in a short sale
In real estate, a short sale takes place when an outstanding loan against a property becomes greater then the estimated market value of that property. This process is a way in which homeowners can avoid foreclosure and can also pay of their mortgage by reaching a settlement with the lender at the same time.
How a short sale works
In a short sale transaction, a knowledgeable real estate agent asks the seller to provide the required documents—such as income tax returns, closing documents, pay stubs, and bank statements—before listing the property.
Then, through a careful in-depth review of the seller’s current financial situation, a logical way to proceed can be set up, paving the way for a successful completion of the short sale. Short sales are a complex process, for both the buyer and the seller.
Next, the real estate agent will discuss the potential short sale with the lender and inform the seller of the results of their collaboration. When evaluating this information, the seller should always be aware that the lender has more control over the process than either the seller or the buyer, and should strive to maintain a courteous relationship with the lender with that in mind.
Note also that the lender and the seller are actually a partnership, because they both have to agree to the buyer’s offer in order for the short sale to progress.
“Low ball” offers can be a problem
In a short sale, potential buyers are usually hoping to find a bargain,
and they sometimes make offers that are unrealistically low in comparison
with the property’s estimated market value. As a result, the lender
may determine that it is in their interest to proceed with foreclosure
rather than accept the potential buyer’s offer.
An experienced real estate agent will realize that this is a possibility,
and will make a counter-offer to the buyer before presenting the
lender with the problematic original offer. Such “low ball” offers
are usually considered to be a waste of time for the lender when
it comes to reviewing them, and they often cause the lender to delay
in responding, in regard to selling the property, or to ignore the
offer altogether.
Virtually anyone who has participated in a short sale agrees that
dealing with an experienced real estate agent really made a difference
in meeting their needs and satisfying their concerns in going through
this complex procedure. The lender is also gratified because foreclosure
has been avoided and the buyer or seller, have reached their goals.
Importance of using an experienced Real Estate Agent
There is a lot of hard work that goes into buying or selling a house.
With today’s market and economy, that hard work has become even tougher.
That is exactly why it is critically important that you hire an expert to help you navigate through all the details and negotiations.
Yes, there are lots of Real Estate Agents, but not all of them may be looking out for your best interest. Therefore the first thing you need to do in this process is to find a real estate agent that you can trust, that has experience and importantly has great negotiation skills.
From the experience side of things.
A few things to ask a prospective agent?
How long have you been in Real Estate?
Do you do this full time?
What are your sales stats for the last couple years.
(These may seem like intrusive questions, but any top-producing agent
will actually welcome them)
The importance of Negotiation.
Negotiating is probably the most important skill that an agent can
possess. The agent could be an excellent salesperson, but without
negotiating skills you might not be getting the best deal for your
dollar.
A really great agent will listen to the concerns of both the buyer
and the seller and then work on something that benefits both parties.
A great negotiator will ask the proper questions to find out exactly
what those concerns are, and in addition what each side wants to
ultimately accomplish.
The goal being, to turn your transaction into a win-win situation
for both parties.
Area knowledge.
An agent should have in-depth knowledge of the area in which the
property is located.
From a seller’s perspective, knowing the actual value of the property
and how much the sellers could get for it is vital.
From the buyer’s perspective, the agent should know about schools,
local amenities and even which local business are in the surrounding
area. On the subject of tax rates, building codes, home repairs and
insurance costs, an experienced agent can also point out exactly
where to get the information.
In conclusion, picking an agent that has the experience and negotiating
skills to help with selling or buying a home is an incredibly important
step. Be careful to choose a strong partner in your pursuit of either
selling or buying.
Gary Smith is one of the Florida Keys Top Producers in Real Estate
Sales. He is admired by his fellow realtors, and has earned the respect
of buyers and sellers who have come to him, to seek the assistance
of an expert in Florida Keys Real Estate.
