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Archive for November, 2009

Are all Beachfront Properties a Good Investment?

November 17th, 2009

Some real estate investors will tell you that beachfront properties are the way to go. Others don?t dabble in this area for one reason or the next. There is no denying that beachfront properties are good investments. But what about for you?

Yes, beachfront properties usually appreciate over time. The reason for this is simple: the location is just about as good as it gets. Of course, there are exceptions to the rule. You need to do your homework before buying any property, beachfront or not.

Also, remember this: you can find the best beachfront property in the world, but if you cannot afford it you need to stay away. You are never making a good investment if you are stretching your resources. Instead, all you are doing is taking a huge risk that could end up in financial disaster. Do you really want to play that game?

If you are looking to invest in real estate and have the money to make this happen, take a strong look at beachfront properties. Just remember two things: 1. there are other options. 2. You only want to invest in real estate if you are 100 percent comfortable from a financial point of view.

photo credit:?Wolfgang Staudt

Real Estate Jobs

November 16th, 2009

The economy is still rather tight and people are not only looking for new jobs but some people have decided to move in another direction and find a new career. Real estate has perhaps been hit the hardest by the economic downturn but there are careers in real estate that are booming.

Realtors

Becoming a realtor now is probably not the ideal job track for many people at this point in time but for the right person it can still be a very lucrative and rewarding career.

Landlord

If you?re financially stable this is a great time to buy some real estate as the market is great for buyers it?s also a good time to become a landlord as more people are opting to rent rather than own so the market should be booming.

Property Manager

With more people entering the landlord game as a profession rather than casually there are more properties owned by single entities, this means that maintaining the properties themselves is difficult and more property managers are needed.

Home Stagers

Homes are still sitting on the market longer than most sellers would want and every little advantage they can get toward a sale is worth it. Home staging is a proven way to improve the appeal of a home on the market and professional home stagers are in demand.

Take your Time before making an Offer

November 13th, 2009

If you are interested in buying a home you will have to go through a long, yet exciting process. Before you make an offer on any property you need to exercise a bit of patience. Even if you feel rushed you need to take a step back to ensure that you do not make any mistakes.

What should I be thinking about? The answer is different for everybody. Some people take their time so they can compare more than one home. Others need to get their financing lined up, and want to make sure that every last dollar sign is in place. It does not matter what you do with your time as long as you are being as productive as possible.

Make sure you also speak with anybody who is involved in the decision making process.? Are you buying your home with a spouse? If so, he or she needs to be involved with every decision along the way. Also, don?t forget to ask for the advice of your real estate agent if need be.

Before making an offer on a home you want to take enough time to realize what you are doing. In the end, this will go a long way in allowing you to feel 100 percent comfortable with your decision.

If a Tenant Leaves Stuff Behind

November 12th, 2009

During your tenure as a landlord you may run across a tenant who leaves some of their belongings behind after they vacate a unit. Each state has slightly different laws about how to deal with discarded property so you should check with your local and state ordinances to get the proper procedure for your area but there are some general rules that apply everywhere.

Tenancy Must be Terminated

Obviously you cannot take something from a tenant while they?re living in your unit, that?s obvious theft, but what if they?re gone? Even if the tenant is gone you can?t take their property until the lease has officially been terminated, this may require written notice, verbal notice, an eviction proceeding or a certain period of time.

Wait for Abandonment

Also, if a tenant vacates their place and leaves something behind you have to wait a predefined period of time to officially declare it abandoned.

Notification of Property

One would think that the tenants know they left stuff behind but the landlord is still required to send written notice to the now ex-tenant that they have left property behind. This notice also informs them of their legal rights and the predefined waiting periods for your region. You also can inform them (or bill them) for any storage fees while you hold their property.

Storage

Yes, it is the landlord?s responsibility to store property safely throughout the entire waiting period. But as mentioned above, you can recoup any losses for this or you can charge a reasonable storage fee of your own.

Disposal

Finally when you?ve completed all steps of notification and proper storage and the property is still abandoned after the waiting period it is your responsibility to dispose of it. You can sell or donate the property or you can throw it away.

It?s essential that you research your local and state laws for abandoned tenant property because if you handle the situation you can actually be held accountable and sued by the tenant for the value of their property.

photo credit:?Indigo Goat

First Time Home Buyers Tax Credit

November 11th, 2009

The American Recovery and Reinvestment Act of 2009 was one of many stimulus programs to crop up this year. This act provides up to $8,000 for qualified first time home buyers who buy their home between January 1 of 2009 and December 1, 2009. This tax credit is actually ending soon as prospective buyers must have their financing in order by the end of October and time is getting short.

A first time homebuyer is defined for this program as anyone who has not owned a principal residence for three or more years prior to the purchase. For married people this applies to both spouses so if one of you has owned a primary residence then you both do not qualify.

The amount of the credit is not set at $8,000 but varies according to the home?s purchase price. The tax credit is set at 10% of the home?s purchase price and maxes out at $8,000. There is also a limit on claiming the credit. The general guideline is $75,000 per person or $150,000 per married couple. This doesn?t necessarily mean that people over the income level can?t get a tax credit, they can but have to follow a formula to determine how much they?ll receive.

If you are still thinking about cashing in on the American Recovery and Reinvestment Act of 2009 then you had better rush out to your mortgage lender immediately to make sure you?re in time to qualify.

What to do if Tenant is Late with Rent

November 10th, 2009

Being a landlord can be very rewarding but there is one problem that seems to crop up for every landlord at least once in their career, tenants who are late with rent repeatedly. It?s important that you don?t let this activity persist but handle it with diplomacy from the outset and treat every tenant in the same manner when they?re late with rent.

Late Notice?

The first step is letting them know immediately that the rent is late and how much the late fees are in a late notice.

Phone Call?

Follow up the late notice with a phone if you haven?t received some sort of response within a couple of days after the late fee notice.

Eviction Notice or Legal Notice?

Some people are loathe to jump into the eviction process and prefer to send a legal notice from their attorney and many tenants are threatened enough by that step that they respond. Other tenants need the threat of eviction and some landlords prefer moving right into eviction mode.

Eviction Process?

A landlord can simply not let tenants slide on the rent or they?ll never get paid which means they in turn will never be able to pay their bills. So eviction is the eventual outcome if your tenant is still delinquent with the rent then you have to move through the eviction process.

Credit Bureau

Don?t forget to report your delinquent tenants to the credit bureau, this will prevent others (at least those who are diligent in their background checks) from falling into this tenant?s trap.

photo credit:?longlostcousin

Rehab Your Home with Federal Assistance

November 9th, 2009

The Federal Housing Authority has come up with a program called the 203(k) which provides assistance to those looking to rehabilitate certain homes. By working with lending companies and using the FHA?s 203(k) people may be able to buy homes they normally couldn?t afford or refinance and improve their existing home in ways that weren?t accessible before.

Section 203(k) is designed for single family properties and its larger goal is to improve a neighborhood or a community while expanding home ownership opportunities. The Department of Housing and Urban Development is committed to improving the situation in certain lower income communities and the Community Reinvestment Act or CRA is another such program than can help increase home ownership and improve the housing in these regions. Look into rolling both of these programs together to get the biggest benefit possible.?

The 203(k) is especially useful for people who want to buy property that needs some repairs or modernization. In the past such a project required a significant amount of savings or complicated renovation loans that carried high interest rates and short amortization. With the 203(k) you can roll all of these loans into one mortgage loan with more digestible rates and terms.

Several qualifications must be met for a home to qualify for the FHA?s 203(k) program so be sure to check their website and to talk to your lender to make sure you qualify and then take advantage of this government program to get the most out of your investment.

You make money on the Buying Price

November 6th, 2009

When buying any piece of real estate it should be your number one goal to get the property for as cheap as possible. On the other side, the seller is trying to receive as much money as they can. This is where all the negotiations start.

Simply put, you either get a good deal or you don?t ? this all starts with the buying price. To get the best deal you must do your homework. How much is the home worth compared to what others in the area have sold for? Do you know how long the property has been on the market, and whether or not any price reductions have taken place? The more questions you ask the more information you will find.

If you want to get the best possible deal, hire a real estate agent to work on your behalf. When buying a home with the help of an agent you do not pay a dime ? they get their money from the seller?s agent. What you get is professional assistance that can help you receive the best possible deal.

The deal you get is the deal you get; there is no going back. For this reason, make sure you are 100 percent sure of what you are doing. The final price is an important one!

How to Prepare your Home for Sale

November 5th, 2009

Preparing and staging a home for sale is an important part of the whole process and shouldn?t be skipped if you?re looking to make a quick sale and get the most money for your property. Use the following tips to make sure your home is ready to go on the market.

Clean

This can?t be stressed strongly enough. If you?re not into cleaning your own house before the sale then hire a professional, in fact it might be worth the money to hire one anyway as they will notice areas you routinely overlook. But no matter who does it, a top to bottom thorough cleaning is a necessity.

Remove your Personality

Most people can?t imagine themselves in someone else?s home, the key is to make your home look like their new home, not your old one. Take your personal items and photographs down, remove your collections, and let go of the home emotionally. As a side note, be sure to remove anything of value before your home is open to the public for other reasons.?

Strip the Room

Take as much as you can out of each room. This means take out all unnecessary furniture pieces and accessories. Less furniture will make the room look larger and more appealing to prospective buyers. Really skilled stagers will be able to bring in just the right amount of accessories to make the home look like an interior decorating magazine, attractive but depersonalized.

photo credit:?army.arch

How to Offer on an Investment Property

November 4th, 2009

Are you thinking about making an offer on an investment property? If so, you know that this is a big step in your financial life. After all, it is the price you pay that will determine whether or not you get off on the right foot.

Offering on an investment property is not always easy. You need to consider many details starting with the asking price.

Above all else, keep in mind that paying the asking price is not something you have to do. This is only a starting point for negotiations. It is your goal to buy the property for as much off list as possible. Of course, the seller is trying to make as much money on his end as well. This is where the negotiation process comes into play.

Why are you offering less than the asking price? If you can come up with a good reason you will be ahead of the game. For instance, maybe the home is in bad shape. Or maybe it has been sitting on the market for over a year. No matter what, give yourself a leg to stand on so you can explain your position if need be.

Making an offer on an investment property is always easier if you get your real estate agent involved. He/she can take care of all the paperwork, while also giving you advice on what to offer, etc.

There is no right or wrong way to make an offer on an investment property. As long as you do what is best for you, everything else will fall into place.