February 9th, 2010
If you are considering buying a property as an investment and income source as a vacation rental, you might be wondering where the best place is to buy one. In fact, there are areas across the entire United States which are suitable for vacation rental property purchases, so a few things to keep in mind when making your choice are:
- Double check that vacation rental is permitted in the area where you buy the property - some local regions don’t allow it.
- Consider buying a vacation rental property that is within easy driving distance of where you live - if there are problems that need to be sorted out, it is a whole lot easier (and often cheaper) if you are not too far away.
- Think about whether or not you, or people you know, would enjoy vacationing in the area. If you would like it, the chances are good that there are plenty of other people out there who would also like to vacation there.
- Think about the seasonal aspects of the destination - if it is a winter destination, for example near a ski resort, is it also popular in summer or might it be difficult to rent off-season? Even if it is, consider if the higher rental income during the peak season compensates for this.
- Check the visitor statistics at the local tourist bureau or chamber of commerce to be sure that plenty of tourists visit the area.
Posted in Vacation Rental Property | No Comments »
February 9th, 2010
Ah, tunnels. And why would you want to read an article about tunnels? Because they?re awesome, that?s why. Forget buildings, forget bridges, heck forget dams. Tunnels are one of the few common feats of engineering that consistently skirts the realm of science fiction. To bore straight through the alps? How about an undersea route connecting England to the rest of mainland Europe? It’s easy to imagine such things being found within the pages of a Jules Verne or H.G. Wells novel. Today, they are realities with countless people routinely using them every day. Now sure, not all tunnels are exciting, but below we’ve listed a few of the most notable tunnels being used and built today. Read the rest of this entry »
Posted in Mixed Bag | No Comments »
February 8th, 2010
It’s a buyer’s real estate market out there, so if you don’t have a home to sell you may be able to find a killer deal on a new home. But there are still some things you can do to ensure you’re getting the best deal possible.
Look for Old Sales
Houses that sit on the market for more than three months are considered stale. It’s an old adage and really, logically, shouldn’t apply when the market is so slow but it does and it can mean a big deal for you. Look for homes that have been on the market for more than 90 days, the longer the better as the sellers are probably almost willing to accept any reasonable offer. You may find owners who are holding out for a price that is too high for the market, but this is the exception, not the rule.
Find the Discounts
Do the research (or have your realtor do it) and find homes that have already been discounted at least once and for a pretty big chunk. Typically these homes are a burden on the homeowners and paying the mortgage is getting to be too much so they’re looking to make a quick and easy sale.
Come Preapproved
Having a mortgage lender firmly in place and your loan amount preapproved is a big bonus, especially for sellers that are anxious to close the deal quickly. You suddenly are a known quantity and basically a sure thing as long as you’re happy with the inspection. This not only makes you more enticing to the seller but makes the process easier on? you as you know what to expect and how much you can actually afford.
Posted in Money & Finances, Mortgages | No Comments »
February 5th, 2010
With so many foreclosed homes on the rental market it’s easy to imagine picking up a property or two at a deep discount and turn it into a money making rental unit. But it’s not that simple, there are some things to consider.
Location
Like all home purchases, location is key. If you’re looking to get quality renters you have to be in a location that they want to be in. It’s not a deal if you can’t get a renter.
Bank or Homeowner
Will you be buying the home from a bank or from the homeowner? If the home has already been foreclosed upon then you’ll probably have to deal with the bank. If it hasn’t quite been foreclosed yet you might be able to deal with the homeowner, and this can be an ideal situation.
Inspect the Home
Do as much due diligence as possible inspecting the home, even chat with neighbors to find out about the owner’s habits. People that have foreclosed homes often do not put the care and pride into them as other homeowners.
Tenants
Often landlords become overwhelmed by economic crises, if the current homeowner is a landlord then there’s a good chance there are already tenants. Learn everything you can about their lease and if you’ll still have to abide by it.
Buying a foreclosed home as an investment can be a lucrative idea as long as you do your homework and make sure it’s a sound investment.
Posted in Foreclosures, Investment Property | No Comments »
February 4th, 2010
If you’re thinking of buying a property that would mean you needing to belong to a home owners’ association, it’s a really good idea to check out the association in a bit more detail before you commit to the property. Not knowing about the current activities of the home owners’ association can leave you vulnerable to higher costs or time-consuming problems. Some important points to look into include:
- Try to find out if there are any complaints against the home owners’ association. These associations quite commonly become involved in litigation and you should be aware of these kinds of problems in advance of signing a contract.
- Ask to see the current financial details of the home owners’ association. The requirements vary but you should be able to at least have access to an annual balance sheet and to see how much money is in the reserve fund - if the complex is older, there should be a larger reserve fund available to fix up problems as they occur.
- Get opinions from member home owners if you possible - try to ask around the complex to see what the other owners feel about the way the home owners’ association is being run, and ask them if there are any potential problems as a new buyer.
Posted in Condominium & Homeowners Associations | No Comments »
February 3rd, 2010
For a landlord hiring a property manager is no small task, it takes work to find a company or person you trust and are willing to rely on when it comes to your investment and quite possibly yours and your tenant’s well being. To get some added peace of mind add the following elements to your property management contract.
Communication Expectations
Detail what you expect to be notified about and how you expect to receive that notification. It wouldn’t hurt to also specify a timeframe for notifications.
Finances
Your state will have some sort of laws regarding the accounting practices of property managers so you should familiarize yourself with the law and the minimums, but you may want to ask for a little more due diligence or information than is traditionally given. You may also want to break down financial obligations and establish procedures for dealing with the tenants and their finances as well.
Tenant Responsibilities
Tenant responsibilities will be the primary responsibility of the property manager but you’ll want to specify exactly what those responsibilities are and how they will be processed.
Termination
And most importantly for both parties, you’ll want to try to protect yourself if the company does not fulfill your expectations. Trying to get out of a contract is often difficult so you will want to try to work in a clause that lets you terminate the contract if the property manager isn’t working out to your expectations.
Posted in Property Management | No Comments »
February 2nd, 2010
Buying a home is a very exciting and equally stressful experience. Going into the process knowing as much as you can about the business and the game can help you get the best deal and the property you want. The following five tips will help you buy your first home.
Do Your Research
Learn the neighborhood and the value of surrounding homes. This information is available through several different online locations, from sites like Zillow.com with comparative home values and local police blotters and predator websites that tell you which areas are more desirable.
Put on Your Poker Face
This is where a little game play comes into the process, don’t let anyone know you’re head over heels in love with the property and will pay just about anything, because if you do then you’ll end up paying top dollar. Keep your emotions to yourself.
Waiting Game
Another aspect of real estate is knowing that values wax and wane and being wise enough to time those trends to get the most bang for your buck.
Understand the Paperwork
Most people rely on a realtor and/or a real estate attorney that will help you wade through the enormous piles of paperwork. Whichever way you go make sure you understand everything that comes your way, and more specifically, everything you sign.
Patience
So much of the home buying process involves waiting and the better you are at waiting the better deal you’ll get and oftentimes you’ll find a better home if you wait and shop carefully.
photo credit:?army.arch
Posted in Investment Property, Money & Finances, Real Estate Market | No Comments »
January 29th, 2010
The first thing most people think about when they hear the phrase ?investment properties? is money. In other words, they are buying this type of real estate so they can profit either now or in the future. While there is nothing wrong with this, keep in mind that getting involved with investment properties should also be a lot of fun. If you can combine fun and profitability it is safe to say that you will feel good about your investment.
What is fun about investing in real estate? For some, the fun part of investing is when they see how much money they are making. This is what drives them, day after day. While you don?t want to hang your hat on this, it is definitely something to consider.
Some investors find it fun to buy homes, fix them up, and see their hard work payoff in the end. Is this something that excites you? Even if you are just learning, it can be fun to get involved in this manner.
A business venture is always more satisfying when you are having fun. This does not mean that every last detail of investing in real estate will be exciting, but you will find that keeping a smile on your face will make the experience much more enjoyable.
Posted in Investment Property | No Comments »
January 28th, 2010
If you and your non marital partner have decided to go your separate ways there are a lot of issues to consider, the good news is that it should be easier because you are not legally bound by marriage.
If you own property together there are several different ways in which that can be divided. If only one of you has their name on the deed or title then the property is legally theirs, but the other party may have some legal right to it as they have probably contributed to the expenses of maintenance and any upgrades. These disputes can be handled in a court, through arbitration or through your own agreements if you can amicably come to an agreement.
If the two of you owned the property together then it can get more complicated. You can just come to an agreement on your own between the two of you and one can file a quit claim deed which gives the other entire possession of the real estate. But if it’s not that easy then you may need to again see arbitration or a legal judgment that will determine how to divide the property. If both sides have a considerable amount invested in real estate it’s not uncommon to have to sell the property so both parties get their fair share.? photo credit:?alancleaver_2000
Posted in Money & Finances, Real Estate Law | No Comments »
January 27th, 2010
Most property managers find their job to be easier and more enjoyable when the weather is warm and the grounds are clear. Unfortunately for them, there are parts of the world where the winter months get cold, snowy, and icy. Here are three property management tips for the cold winter months:
1. Furnace check and prep. Before the first cold night arrives, make sure the furnace is working properly in each of your properties. It is better to find out about a problem before winter hits than to have your tenant make you aware once it arrives.
2. Snow removal. Do you have properties in areas where it snows in the winter? If so, you need to realize that snow removal is very important. All common areas should be kept clear. Tip: you may be able to ?hire? a tenant to take care of this for you.
3. Watch the ice. The last thing you need is a tenant slipping on your property because of an icy buildup. If this happens they may attempt to bring forth a lawsuit. Just as you need to remove snow, you should deal with any ice at the same time. Buy yourself a few bags of salt before winter hits and you should be set.
During the cold winter months keep the above tips in mind!
Posted in Property Management | No Comments »
