No Picture
General Article

The 5 Biggest Mistakes Real Estate Rental Investors Want to Avoid

The 5 Biggest Mistakes Real Estate Rental Investors Want to Avoid

The novice real estate investor looking to get back some of his stock market losses may think the time is right to get into the rental business and make a quick buck. Yes, many properties through out our country have lost upwards of 50% of their peak values of 2008. But before you invest make sure you avoid these common mistakes:

1. Trying to treat the rental business just like any other transaction.

The savvy real estate investor knows that the “flipper ” days (buy today and sell for a profit before you even close on the original transaction) are long gone and probably will not return any time soon. You will have to manage your expectations to allow yourself the time to succeed. You need to give yourself at least 6 months of working with real estate rentals before you can expect to make any positive headway.

2. No Cash Reserves.

As in any successful business, the two most important words in this business are cash flow! The forecasted monthly income that is generated from the rental property must exceed the total monthly forecasted expenses for that same property. This creates the positive cash flow that will allow you to make the proper repairs, accept a more qualified tenant and make the correct business decisions at the proper time.

3. Uneducated Investor.

Yes, I am sure many of you have heard the following… “Why waste any time or money taking any training course, I will just use the money for the down payment on the rental property that I want to buy… “This flawed statement ignores the common sense that most folks know… the more knowledge that you gain on a subject the more ready you are in making the proper decisions. There are many rental property investment techniques… do you know them all?

4. Any Real Estate Broker will do.

Most licensed real estate brokers are very capable of putting a contract together for the purchasing of the rental properties. They can ask you the following questions:

How are you going to finance the properties?? No down payment?? 3% down?? Do I qualify for FHA financing?? Do I know the local marketplace well enough to make the right deal? But not all licensed brokers are savvy enough to broker the deal that is right for you.

5. Lack of Action Taking.

Like anything else in life, many real estate investors talk a good game but many just lack the action taking skills to become successful. Lack of action and false expectations are the two leading causes for failure in this business. Now is the time to write down on paper reasonable expectations and carry out an action plan that delivers what you expect to happen.

These are exciting times for the real estate rental investor. Unfortunately, foreclosures will continue to happen and with the interest rates at their current levels, now is the time to take advantage of this unique opportunity. Hopefully you will discover the how to make your riches with rentals.…

No Picture
General Article

How to Assess Resale Value for First Time Buyers

How to Assess Resale Value for First Time Buyers

One of many factors that must be considered when first time home buyers are choosing which home to buy is the resale value of properties they are looking at. Inexperienced buyers can overlook this issue and an experienced realtor who specializes in helping first time buyers will know this and (if they’re worth their salt) point out the matter so that their clients don’t make an unwise purchase.

As a first time home buyer you probably don’t expect to buy your dream house with your first real estate purchase, so it follows that at some point in the future you’ll need to sell your first home to advance up the property ladder. If you fall in love with a home that is perfect for you and only you, when the time comes to sell it could prove difficult to find a buyer.

This is where you should consult with your buyers agent, they will be able to help you assess the resale value of the properties you are interested in.

It might be a worn-out expression, but it’s true; the three most important factors when choosing a home are location, location and location! So think twice about buying a home in an undesirable spot. Busy roads, dodgy neighborhoods, noisy or smelly industrial neighbours – these are all issues that are sure to adversely affect the resale value of your property and diminish the pool of prospective buyers.

But if the home you want to buy is located in a desirable neighborhood, it’s likely that it will remain a favourable location so that when the time comes to sell the property you will attract a larger number of potential buyers.

Do keep in mind that neighborhoods can change, sometimes drastically if there is major construction planned or zoning changes that will allow for different activities than are now permitted. An experienced realtor is usually aware of any big changes that are expected to take place within the next few years and they can advise you about these factors. Imagine the effect on your resale value if you buy a house on a quiet, dead-end road only to have a major thoroughfare come through creating a huge increase in traffic!

Your buyers agent can help you recognize which features will help or hinder the future sale of your home. For example, in neighborhoods with two-car, attached garages, a single-car or detached garage may negatively impact the home’s resale value, and in some areas, a swimming pool actually detracts from a home’s resale value and makes the home harder to sell.

Usually, a home that can be expected to have good resale value will have:

A� More than 1 bathroom;

A� More than 2 bedrooms;

A� Generous storage space;

A� Ample family space, and

A� A garage.

A home that differs substantially in size, condition and features from those that surround it may be difficult to sell. Consistency with the neighborhood is one important factor in assessing a home’s resale value. The exception to this rule might be where a property needs work to upgrade it to the neighborhood standards. If you are looking for a project, this can be a great way to build “sweat equity” and increase the value of your investment.

Don’t make the beginners’ mistake of neglecting to consider the resale value of any home you are thinking of buying. It might be the perfect home for you right now, but sooner or later you will want to sell…

Take the advice of a realtor who specializes in helping first time home buyers and gauge the resale value of any home before you buy it.…

No Picture
General Article

Buying Your Home Can Be Overwhelming, These Tips Can Help

All you need is the knowledge for approaching this market like a buyer. This applies for would-be homeowners or investors. Consider applying the tips found here if you wish to simplify the real estate purchase process.

Be moderate in your approach when considering a purchase of real estate property. Many individuals want to try an extremely aggressive approach, but this doesn’t always work in their favor. Feel sure about the deal that you’re making but always defer to your Realtor, as they can provide some very sensible information.

If you are planning on having a family, look for a house with enough space. Steep stairs or swimming pools are items to closely examine if you have children in the home. It may be safer to purchase a home that children formerly lived in. Most parents childproof their homes, so these homes are probably already safe for your children.

A house that needs a lot of improving and updates will be a little cheaper. This permits you to save your money on the purchase price, and you have time to work on your home at your own pace. You will be able to design a home that you want to live in, and build equity with every improvement that you make. Do not focus on what is wrong with the house; instead, focus on what is good. Behind the outdated kitchen and the peeling paint could be the home of your dreams.

Find a trustworthy partner to work with when buying a large and expensive commercial property. That will make it simpler for you to secure the loan you need to make the purchase. A partner can assist you with a down payment, and help qualify for a good commercial loan that you might not be able to get on your own.

Determine your offer ahead of time. You already know what the asking price is, but having carefully considered your offer point will be beneficial. When you make an offer to the seller that is less than the asking price, the seller will often come back with a counteroffer of some greater amount. Compromise between the asking price and your original offer will usually determine the price you and a seller agree upon, and it is usually one you can both live with.

So you want to find a place to purchase, but firstly you have to have a real estate agent who’s qualified. Look for an agent you can trust. For an area you’re unfamiliar with, check with the Better Business Bureau for any complaints against agents and how they were resolved. Be certain to study up on him or her, and find someone that will always keep you in mind.

If you know how to be a knowledgeable buyer, you can be a success in the real estate market. Getting the right information will help you succeed. The preceding paragraphs have given you a number of methods you can employ in your struggle. Of course, it is totally up to you to use this information to leverage a great deal.…

No Picture
General Article

How To Make An Offer On A Real Estate

If you dream of owning your own home, you should know that there hasn’t ever been a better time to do it. Right now, the market is very lucrative; there are low rates, so the starting investment does not need to be very high. The following tips and techniques will help teach you how to find a property that is both affordable, and it will also teach you how to negotiate for the best sales price.

Each agent should connect with former clients on special occasions to maintain the relationship. Additional contact from you will help them remember how valuable your services were during their real estate experience. When you are done with your greeting, make sure they know that you are working as a referral and would love for them to recommend you to anyone they know.

If you have or plan to have a big family, you need to find a home that will be big enough for everyone. There are safety issues, too, that can affect your choice of home if you have children. For example, the type of staircases in the home and protective fences around pools must be considered. If children have been raised in this house, it should be safe.

When deciding to purchase a large and commercial piece of real estate, make sure you get a trustworthy partner. This will help you qualify for the commercial mortgage loan easier as you proceed in buying the property. A partner can provide help with credit and a down payment necessary to be qualified for a loan.

A lack of flexibility can be a death sentence when it comes to buying a home. You might not have the financial resources to buy your dream house in your dream neighborhood, but you might have enough to choose one of the two. If you can’t find a perfect house in a certain area, perhaps try a smaller home or a different neighborhood with a better house.

You are already aware of an asking price on a potential home, but you should also have your offer firmly in mind. By talking to the seller, both parties can come to a final, mutually agreeable price.

Plan out your questions before you have a chat with an agent in real estate. Be sure your questions are important, such as the number of homes that they were able to sell in the particular area you’re interested in and the total number of homes that they were able to sell in the past year. The real estate agent should be able and willing to respond to all of your questions professionally.

Go online and check out if there are any sex offenders registered in the area of houses you want to buy. Do your own research on finding sex offender data around the area of your new home. Don’t expect a real estate agent to volunteer that information, especially if the area might not end up being the safest to live in. Ask people around the neighborhood, and verify the information with your own research using reliable resources.

Those who are wise and jump into this swirling market should follow the above article closely. It will help you avoid trouble and walk away with real estate that is under-priced and growing constantly in value. The key is to purchase the property and hold until the time is right before you make your big move.…

No Picture
General Article

Buying Real Estate? Follow These Great Tips

One of the things that people buying homes may worry about is if their home will keep its value. Read on for some valuable tips.

Try not to be too aggressive when you negotiate the purchase of a property. A lot of people adopt an aggressive attitude in the hope that the other party will cave. This is not the best way to proceed. You should be very adamant about the things you want, but you should let your lawyer negotiate for you.

Real estate agents need to get a hold of their former clients during anniversaries and holidays of their date of purchase. They will be reminded of how you made their home buying experience a great one. When a friend, neighbor or family member needs a real estate agent, your name will be fresh in their minds and they will suggest using you.

If you are seeking to buy a pricey piece of commercial property, look for a business partner you can trust and can easily work with. Having a partner makes the loan signing go much more smoothly. A partner can help with the down payment and the credit that is needed to get qualified for a commercial loan.

If you have made an offer on a home that the seller did not accept, do not lose all hope that they will not find a way to make it more affordable for you to make the purchase. Try to see if they would be willing to make some home repairs or help you with the costs associated with the closing.

When seeking a new home, think long-term. While you might not have children yet, you may want some in the future. So you should still look at schools in the surrounding area to make sure that are satisfactory.

A lack of flexibility can be a death sentence when it comes to buying a home. Maybe you can’t live in the most perfect community and in the most perfect home, but you might be able to do one of those things. If you cannot afford a home in the neighborhood of your choosing, take time to check if there any homes within your budget available. You may be surprised by what you nearly passed up!

It is of utmost importance to have a good understanding of mortgage loan terms when buying a home. Knowing how your monthly mortgage payment is impacted by the length of your mortgage, and the effect on total cost over the entire loan period, will help clear up any confusion later on.

Plan ahead of time which questions you are going to ask your real estate agent. Some questions to consider is are you a buyer’s agent, a seller’s agent or a dual agent. Other questions include the average number of listings the agent carries and the average home prices. The real estate agent should be able and willing to respond to all of your questions professionally.

Many people looking to buy a home do not realize how difficult the home buying process can be. Remember the advice that you’ve learned here the next time you purchase property.…

No Picture
General Article

Tips For Buying Your Very First Home

It can be quite daunting to buy real estate, particularly for first time buyers. Buying a property, however, can dramatically improve the quality of your life, and can be a very lucrative investment. The below article provides some tips to assist you in beginning purchasing real estate, regardless of whether you are completely new to the world of real estate, or a pro.

A steady, non-confrontational approach is best when you decide to buy a property and enter the negotiating phase. Often, people who are too aggressive about trying to make the best possible deal work against their own best interests. Stand firm in the things you desire, but also allow your lawyer and Realtor to do most of the negotiating, as that is what they are trained to do.

All real estate agents need to be in touch with their previous customers on the anniversary of the date they purchased their home, and certainly during the holidays. Additional contact from you will help them remember how valuable your services were during their real estate experience. At the end of your greeting, tell them that you’re working on a type of referral basis and that you’d appreciate it if they recommended you to some of their friends.

If the home needs a few fixes, it may sell for a much lower price. This will enable you to put any extra money in the bank, and use it to improve the house in your own time. Doing this allows you to make the design changes you want, and also build valuable equity in the home through improvement projects. Make sure you can see the potential of the house rather than focusing on its drawbacks. Ignore the surface imperfections and see if your dream home is peeking out from behind a worn facade.

When you are planning to purchase a large and costly commercial property, look for a reliable investment partner. With a partner, loan qualification will be easier. When you have a partner, you can also use his or her income when applying for a loan.

Get a checklist from your realtor. A sound Realtor will already know everything that needs to happen for your home purchase to go smoothly and should have a checklist for you to know every step to be taken. This checklist will help make sure that everything that needs to be taken care of is accomplished in time for settlement.

Once you have real estate, you can increase your investment by simply completing some repairs or remodeling projects. As you work on the home, the property value will increase and therefore, you will see the benefits of your investment immediately. Sometimes your value will go up more than what you invested.

When you are buying real estate, it is usually the most expensive thing you will ever purchase. It is usually the hardest decision to make as well. Using the advice you’ve read here will help you to be confident in the decisions you do make, helping to keep you from making the mistakes your peers might, and ensuring you get the deal you desire.…

No Picture
General Article

How To Increase The Value Of Your Real Estate Before Selling

It’s hard not to run into people claiming to know everything there is to know about how to sell real estate. It’s usually impossible to tell if they picked up the information from a legitimate source, or some late night infomercial hack. This purpose of this article is to give you the education needed to become your own expert in this field.

when putting your home on the market, upgrade to some new, energy-efficient appliances to help attract buyers. Certain items such as LED bulbs and an energy monitor could raise interest in the home among buyers. This is because they don’t have to pay for these thrifty items themselves, and it also indicates that the home is energy efficient.

Be realistic about the value you put on your property. Check out some comparable, recent home sales that are in your area and try to set a price in the middle. By overpricing your home from the outset, you are only going to have to reduce it eventually.

Understand that real estate sales are seasonal in many places. If you are selling your home during the fall, make sure you have the appropriate season’s decorations up to welcome your viewers. Always make sure that the leaves are raked from the lawn; this presents a more tidy appearance and boosts curb appeal.

Get the buyers’ attention with an inviting home. More people will show interest in a home that looks welcoming and clean.

If you decided to paint the interior of your home prior to selling it, do not select colors according to your own personal preferences. Use neutral colors like those seen in most homes on the interior walls if you want the home to sell. Off-white and cream colors are acceptable, as are eggshell or taupe. One of the best ways to make your home more appealing to potential buyers is to give it a new coat of paint.

If you want buyers to imagine themselves living in your home, make sure you take out any personal items. You can do this by just simply getting rid of family pictures and personal momentos. Prospective purchasers need to picture their own family living in the house instead of yours. In addition, you should eliminate all the clutter in the home so that its space can be shown off properly instead of your personal stuff.

When it is time to show your home, open the curtains and let as much light in as possible. Potential buyers can see for themselves how bright the home is when the sun streams in. It is a good idea to make certain that all of your curtains and drapes are tied, and your blinds opened. Try opening up your windows to bring in some fresh air for your buyers.

In conclusion, it can be trying to listen to so-called experts give you their opinion on selling real estate. The tips and tricks in this article have been widely proven time and time again. Hopefully this article will help to either clear up what you were unsure about, or give you some new information.…