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Archive for January, 2010

Investment Properties should be Fun and Profitable

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.

Dividing Property in a Breakup

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

Property Management Tips for the Cold Winter Months

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!

Fixing a Bounced Check for Rent

January 26th, 2010

Sometimes it’s just an accident, sometimes you’re skating on the edge and other times you’re writing checks you can’t cash on purpose. Whatever the reason you’ve bounced a rent check you had better make amends immediately or you could end up without a home.

The first step is to tell the landlord of your mistake, believe me your landlord will take it better coming from you than the bank.

The next step is to try to arrange a payment schedule that will work for both of you. If you’re going to have the money in a day or two be sure to let the landlord know and then pay it as soon as you can. If you’re hit hard times you may need some sort of extension, see if your landlord will agree to a written extension.

If you think there will be a problem making the rent payments on time and in full for a while you should talk to your landlord about a possible temporary rent reduction. During this difficult economic time some landlords are having trouble getting tenants so having one that’s already there, proving to be fairly reliable and in need of a small discount in rent might be just fine.

But whatever you do, if you bounce a check to your landlord, don’t ignore the landlord or the situation, it won’t resolve itself.

photo credit:?jurvetson

What Kind of Properties Can You Renovate and Make Profits On?

January 25th, 2010

Buying a home that needs some work, fixing it up and selling it for a huge profit is a pipe dream that many would-be real estate investors have. It is not something to be entered into lightly – costs can often overrun and the projected profit disappears – but it is worth considering.

There are various kinds of properties that are suited to renovations which could result in a profit, including:

Properties which have been “let go” – for example, if a home has stood empty for some years, or was rented by tenants who didn’t take good care of it, then a house can have relatively minor problems that can be inexpensively fixed. A new coat of paint, new floor coverings and window treatments could do the job.
Properties which need modernizing. In particular, this might mean that the bathrooms and kitchen need to be completely gutted and started over with modern designs and appliances. These rooms can chew through a lot of investment money, but at the same time, can add a lot to the resale value.
Foreclosures or other urgent sales, for example, in case of a relationship breakdown – there might be no problems at all with these properties, other than the fact that the owners need to sell quickly. If you then have a little time to wait until the market improves, combined with some minor sprucing up, you can do well out of the deal.
Properties with serious problems – for example, they have been damaged by flooding, or have some structural problems that need correcting. If these are your areas of expertise, in particular, then you can do well out of fixing up one of these homes – but more than any others, these can need a lot more time and money invested, so be careful.

The Importance of Time Management for Property Managers

January 22nd, 2010

Are you a property manager? If so, you have to manage more than your properties. You also have to manage your time. This becomes more apparent as you add more and more tasks to your daily to-do list. For example, you may be able to easily handle one investment property but add another (or more) and things may begin to get tricky.

Time management is essential to your success. If you get on a schedule and realize how important it is to stay on track, you will find that your personal life and career to run much more smoothly. On the other hand, if you have no time management skills you may find yourself working too many hours and eventually burning out.

Not only will managing your time improve your life, but it will also increase the chance of success with your properties. Knowing how to spend your time and prioritizing your task list is very important. Not doing this will result in details being passed by, and some of your properties getting put on the backburner. Is that what you want?

If you are a property manager you need to learn how to successfully manage your time.

Quit Claim Deed

January 21st, 2010

A Quit Claim Deed or quitclaim deed is a document in which one person gives up all interest and ownership of real estate to another person. Quit Claims are sometime times used between families when the property is given as a gift, the property is transferred into a family business, to clear up confusion on titles and other situations.

But most of the time a Quit Claim Deed comes into play when there is a divorce and one person gives up their stake in a home to the other person. Typically if children are involved the primary custodian is allowed to keep the home but this isn’t always the case, just a common situation.

When you file a Quit Claim Deed you’re stating that you no longer wish to have any responsibilities or benefits that are tied to the property. This means that once the transaction is completed you will no longer have any say in what happens to the property and you cannot be expected to be responsible for anything that occurs to the home or on the property.

Read the fine print on a Quit Claim Deed before signing it, although they’re all basically the same, some people go into the process without really understanding that they’re giving up their current and future rights to the real estate.? photo credit:?woodleywonderworks

Gangsters & Speakeasies: Buildings of Historic Chicago

January 20th, 2010

Chicago, the windy city. Up to just a few decades ago, when Los Angeles surpassed it, Chicago was the second largest city in the United States. Suffice to say, the place has quite a history. A century ago, a third of the city, including the entire business district, burnt to the ground in the “Great Chicago Fire of 1871″. But something even greater would happen just 50 years later, an event for which the city is especially known today. That event?? Prohibition. The 1920′s. For many of us today, historic Chicago is the world people like Al Capone and events such as the St. Valentine’s Day Massacre. Many of the buildings from this era no longer survive, but there’s still plenty of history to be found in Chi-Town.

Biograph Theater

It may appear to be just another boring theater. But it’s not. In fact, you possibly saw it in a Johnny Depp Film recently. The Biograph Theater is none other than the place where John Dillinger was gunned down by the FBI. In 1934, on July 22nd, John Dillinger saw the film “Manhattan Melodrama”. Little did he know that the FBI was staked out outside waiting for him. As Dillinger left theater, he spotted the FBI agents and moved to flee, only to be shot several times, ensuring he would never escape again. The Biograph still functions today, although it now hosts live venues. The theater even went through an overhaul in 2006. And yes, the theater portrayed itself in the film “Public Enemies”. It’s facade and neighboring storefronts were redressed to look as they did back in 1934.? photo credit:?ejojola

Green Mill Jazz Club

The speakeasy, 1920′s icon. When prohibition began, outlawing the sale of alcohol in the United States paved the way for criminals like Al Capone to come to fruition. And if you think prohibition stopped alcohol, well, then… the word naive comes to mind. Alcohol, if anything, was more rampant in the 1920′s. Want to make something that’s already fun even more popular?? Make it taboo. The “speakeasy” was the slang term for an establishment that illegally sold alcohol during these times. Some were seedy bars, others were extravagant nightclubs filled with the rich and famous. The Green Mill Jazz Club, still open today, was a popular speakeasy back during prohibition and at one point even owned by Jack McGurn, a right hand man of Al Capone.? photo credit:?swanksalot

Chicago Water Tower

This is the second oldest ornamental water tower in the United States, the oldest being in Louisville Kentucky. But this structure is important for a second reason the reaches much, much deeper into the history of Chicago. When the Great Chicago Fire of 1871 burnt down a third of the city, this tower was the only public building in the burnt zone to survive. Today it is the only surviving structure one can still see. This makes the Chicago Water Tower an anchor linking the Chicago of today, to the original Chicago of pre-1871.? photo credit:?nautical2k

Wrigley Building

Enjoy chewing gum?? Then you’ve probably enjoyed gum made by Wrigley. Wrigley has been around surround, it’s even likely your great grandparents enjoyed Wrigley gum too. The company was founded in Chicago in 1891. The Wrigley Building, located at 400-410 North Michigan is a skyscraper built as the corporate headquarters of the Wrigley Company. It was also the first air conditioned office building in Chicago. Construction began in 1920. The building is comprised of two towers. The 30 story, south tower was completed in April 1921, and the 21 story, north tower in May 1924. Walkways connect the two towers at the ground level, third floor, and fourteenth floor. The taller, south tower features a clock with a face pointing in each direction.? photo credit:?scmikeburton

Wrigley Field

photo credit: Matt Watts

The Chicago Cubs. The haven’t won the World Series since 1908, but at least they have a great stadium. Originally known as Weeghman Park, the park was built in 1914 over a period of just six weeks. In 1918, William Wrigley Jr. (the same Wrigley as in the “Wrigley Building”) purchased a controlling interest. A few short years later, in 1926, he would rename the park “Wrigley Field”. The stadium is one of the most famous in Major League Baseball. The park has recently gone through several renovations as well as a change in ownership. Further renovations have now been scheduled.

Mount Carmel Cemetery

Some people enjoy visiting cemeteries. If you’re one of those people, and in Chicago, then this is the one for you. This Roman Catholic cemetery, still active today, is home to a number of famous (infamous?) organized crime figures. Sam Giancana, Jack “Machine Gun” McGurn, and most notably Al Capone are buried here. On the more moral side of things, the Bishops and Archbishops of Chicago are also buried here within the “Bishop’s Mausoleum”.? photo credit:?karla kaulfuss

Lexington Hotel

Image via Wikipedia

Although it no longer exists, the former site of the Lexington Hotel is worth a nod as one drives past. Found at the corner of Cermak Road (originally known as 22nd street) and Michigan Avenue, the Lexington served as none other than the headquarters of crime lord Al Capone. The hotel gained more recent notoriety in 1986 when Geraldo Rivera hosted a one time television special, “The Mystery of Al Capone’s Vault”. A vault, once belonging to Al Capone, was found at the long abandoned hotel, and opened for the first time since God knows when on national television. Some 30 million people watched as the safe was opened to reveal… nothing but dirt and some empty bottles. To this day “Al Capone’s Vault” is used as slang for an event that doesn’t live up to its hype. The hotel was torn down in 1995. Found on the site today are the new “Lexington Park Condominiums”.

The historic sites of Chicago are, if anything, eclectic. Whereas some cities may simply boast historic homes and government buildings, Chicago boasts theaters, night clubs, stadiums and nearly every other manner of historic site. Chicago is well worth checking out, and without doubt one of the greatest cities in the United States.

Get Tax Advice Before You Invest in Real Estate

January 19th, 2010

Investing in real estate, while not always a sure thing, is certainly one of the more reliable places to put your money, at least if you are thinking about a long term investment. However, it can definitely pay to consult a tax advisor before you make a purchase – or better still, before you even start looking – so that you can be aware of the tax implications of your investment and you are therefore able to optimize the way you invest in real estate from a tax point of view.

Make sure you find a tax advisor – this might be a tax accountant, a tax attorney or some other similar profession – who is clear on the rules and regulations in the jurisdiction where you are buying the property. Things can vary from area to area. Once you have found an appropriate consultant, get them to explain the relevant tax laws to you in regards to investing in real estate, and in particular in areas like tax deductability of various expenses (including your borrowing expenses), and the implications of any capital gains if you decide to sell the property at any particular time. Doing this in advance can not only save you unnecessary problems and expenses, but it could even make you a lot more money out of your investment – and surely that’s the point of investing.? photo credit:?Robert S. Donovan

Becoming a Landlord: Is it really that simple?

January 18th, 2010

Becoming a landlord is something that many people dream of. This is a great way to get involved with real estate, and of course, to make money along the way. The one thing you have to know about becoming a landlord is that things look simple when getting started, but this can change on a dime.

The actual process of buying an investment property and calling yourself a landlord is relatively easy, and something that most people with some ambition can accomplish. But don?t think that this is a way to make quick money without doing any work.

Simply put, landlords put in a lot of hours and are always on call. Is this something that you are willing to get involved with? Many have found that working a full-time job, while also being a landlord, is too much to handle. This is something to think about before you get involved with this side of the real estate industry.

On the surface, it is easy to see that becoming a landlord is a simple process. But once you look into what it entails over the long run, you may realize that this is far from the case. Make sure you are aware of all the details of becoming a landlord before you take this giant step. You don?t want to expect a simple process, but find out soon enough that you are not cut out for this line of work.