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Archive for January, 2010

Questions you will be asked as a Landlord

January 15th, 2010

Once you become a landlord you will be answering a lot of questions, day after day. Most of them will come from tenants or those who want to rent from you. Here are a few that you will definitely run into at some point in time:

1. Can I pay you later? As a landlord you need to let tenants know when their rent is due, and then stick to this schedule. The last thing you want to do is let your tenants walk all over you. If they pay late this month they will get in the habit of doing so in the future.

2. Can you fix this? One of your main responsibilities as a landlord is to make repairs to your property. Some tenants will only contact you if something major is in need of repair. Others may call to tell you that they need a new light bulb ? you should be ready for anything that is thrown your way.

3. What is your policy on?? There are many questions that start out this way. What is your policy on pets? What is your policy on smoking? What is your policy on upgrades? These are all questions you should be ready for.

How to Handle a Bounced Check

January 14th, 2010

Unfortunately it’s a part of being a landlord, but bounced checks happen, and for some they happen quite frequently. There are different rules in each area with how to deal with bounced check, so check your local laws and what tenant resource groups recommend, but the following bounced check tips for landlords may help you get through the process and get the money that is owed you.

Written Notice

Give the tenant written notice that their check has bounced. This can be handled in a number of ways but getting a signature through the postal service is usually the best way as it proves that the mail was received. Include a photocopy of the bounced check with your letter, also let the tenant know how much you have been charged by your bank and that they will be charged those fees as well. Also spell out what steps will be taken if they do not pay in an acceptable or timely manner.

Give Them Time

You can’t expect immediate payment from the tenant, there is typically a couple days leeway between when they see your notice and when they’re expected to make good on the check. Receiving another check does not count as payment until you are certain that check is good.

Still No Payment

If the tenant still hasn’t paid within the grace period then it’s time to take further actions which include beginning eviction proceedings.

photo credit:?Hello Turkey Toe

Finding A Good Real Estate Agent

January 13th, 2010

If you’ve made the big decision to sell your home or investment property, but you don’t have a regular real estate agent who you currently use, then you face the difficult task of finding the right agent to help you out. Who you choose can make a big difference, so here are a few tips on deciding on the best:

Go to open house appointments in your area, both to get a feel for the local market so you have a good idea of the price range for your own property, but also to get to know local agents who are working the area. It is the perfect opportunity to have a chat to them without them knowing you are in the market to sell, and you can see if they deal with potential clients in a way that you think is professional and effective.
Check the local real estate organizations to find a list of fully registered agents – it is important to make sure that the agent you choose has the correct licenses.
Ask your neighbors and friends in the area for recommendations. If someone you know has had a good experience with a local estate agent, this surely increases the chances that you will have a good experience too.
Pay attention to the homes for sale around you, even if you don’t have time to visit the open house sessions – get a feel for which agents are selling properties quickly.

How to Improve your Credit Score

January 12th, 2010

Getting a home loan is largely based upon your credit score and if your score is below a 620 you may actually find it hard to locate a mortgage lender who is willing to give you a home loan.

Improving your credit score isn’t impossible, in fact in some cases it’s quite simple and steps can be taken immediately. You’ll notice with a better credit score you’re more likely to get approved for a home loan or you’ll get a better interest rate.

The first way you can improve your credit score is by paying down your credit cards and installment loans. If you have high balances you don’t have to worry about paying them off entirely but you should aim for getting them below 30% of the credit limit.

The next step you should take is to limit your credit card usage or quit using them altogether. Adopt a mentality that if you can’t pay cash for it then you can’t afford it.

Check your credit limits and make sure that this is what’s reported on your credit report. If your limit is $10,000 but your credit report shows it as $5,000 then it will seem like you’re borrowing a larger percentage than you actually are – just fixing this one little thing can immediately make a big change.

Use an old credit card. The longer your credit history is, the older your cards are the more valuable and credit worthy you appear. Don’t go out and make a huge purchase but a few small ones you can pay off immediately. This will actually help your rating rather quickly.

The thing to remember when improving your credit score is the longer you’ve had credit the better, the more a company is willing to lend you the better, the lower your balances the better and most importantly you want to prove that you are capable of paying off your debts in a timely manner.

photo credit:?SqueakyMarmot

Foreclosed Investment Properties can be a Gold Mine

January 11th, 2010

Buying an investment property is a great way to get involved with the real estate industry. For some, this means purchasing a foreclosed investment property. How does that sound to you? Although you are sure to have some reservations, keep in mind that foreclosed investment properties can be gold mine. Of course, this is not always the case. You need to be very careful about what you buy as well as the properties that you pas sup.

Why are foreclosed investment properties a good deal for many people? For one, the price of a foreclosure is usually lower than the competition. Investors love a low price ? this means more money for them in the long run.

Although most foreclosed investment properties need some work, this is not necessarily a bad thing. In fact, many investors like a property that needs repairs because it gives them the chance to make the changes that will yield the biggest return.

Even if you never end up buying a foreclosed investment property you should consider the pros and cons of doing so. Have you ever seen one of these properties in person? If not, have your agent take you to one the next time you are in the market. You may find that buying foreclosed investment properties is your ticket to real estate success!

Types of Home Loan Lenders

January 8th, 2010

Years ago the only way you got a home loan was through your bank, and very few people actually even shopped banks for their loans. Today people are not only shopping different banks, but there are a number of home loan lenders out there with different features that may make them an even better choice than your local bank.

Mortgage Bank

This is the old fashioned way of getting a home loan, your local bank will process your loan application and determine if you are worth the risk. They will lend you the money but will then often sell that loan on the secondary market.

Mortgage Broker?

A mortgage broker is a go between who works with a variety of lenders and can help you find the loan that best suits your situation, then you’ll often work directly with that lender.

Internet Lenders?

The internet is full of mortgage lenders, some more scrupulous than others so it’s important to do your research. Some internet lenders are simply traditional outlets with an internet portal, some are strictly internet based companies.

Home Builders?

Many large home builders actually have loan offices within their companies or they have very close affiliations with mortgage brokers. Typically they offer some sort of deal for people who want to purchase their homes.

Real Estate Offices

Similar to the home builders above, some of the larger real estate companies have in-house mortgage departments that will make buying through them more enticing.

You can research all of these options on your own and come up with the best solution for you without using a mortgage broker and paying that added middleman expense, but it will take some time and effort on your part.

Home Stagers Can Optimize Your Home For Sale While You Live There

January 7th, 2010

If you’re living in the home that you want to sell, you might think you can’t use hire furniture or a home stager to make your home look its best for prospective buyers – but you can.

Many professional home stagers will come in and help you make the most of what you already have, perhaps add something, and probably take a lot away. Of course, this might be a little inconvenient but hopefully it will just be for the short term and your home will sell quickly. The typical stages in this process would include an initial visit from the home stager to assess your home; second, they may come to declutter it for you (or you can do this yourself), and store some of your belongings off site; they will then reorganize what you have left in your home in the way of furniture and decorations to optimize it for sale.

Some additional work might be recommended too, and typically this would involve touch-ups like some landscaping on the garden or fresh paint on the walls. These relatively cheap changes can make a big difference to how your home looks to a potential buyer, and could improve the price you get for your property or even make the difference between a sale or no sale.

photo credit:?quimpg

Your Credit Score and Getting a Mortgage

January 6th, 2010

Your credit score is more important than ever if you’re trying to get a mortgage. Rather than having a standard percentage charged on all home loans, today’s loans are dependent on a number of things but the primary concern is your credit score.

Your credit score is based upon your credit history as reported on your credit report. A complex mathematical equation is used to determine your score but that number is key for getting a home loan. Credit scores are figured by a method created by Fair Isaac Corporation and are often referred to as FICO scores. Scores range from 300 to 900 and the typical home buyer falls somewhere in the 600 to 700 range. The higher your credit card, the better.

If you’re concerned about your credit score and getting a home loan your first step is to determine what your credit score is by ordering a free credit report. Each of the three big credit reporting agencies may have a different score for you but they’ll all be fairly similar.

Once you determine your score you can see how likely you are to get a loan and if you qualify for the better interest rates. Any rating below 650 should be boosted if you can to push the envelope and get you a better interest rate.

Expect Repairs in a Foreclosure

January 5th, 2010

So, you are going to purchase a foreclosure? This means you are buying your home directly from the bank. While this is a good idea for many reasons, including a lower price, you should expect one thing: repairs. Some foreclosures are in better condition than others, but the majority of them need some sort of work in order to bring them up to par.

What types of repairs should I expect? This is for you to find out before you make a purchase. Just because you are buying a foreclosure does not mean you should do so sight unseen. Instead, take a very detailed walk through the property to see what needs fixed, what is in good shape, etc. If possible, take somebody with inspecting or construction experience with you. This way you can get a professional opinion, as well as advice on how much particular repairs will cost.

Only you know how much work you are willing to do. Even though foreclosures can come at a good price, you should expect to pay for upgrades and repairs here and there. Don?t buy anything that you are not comfortable with ? even if the price is more affordable than anything else on the market.

photo credit:?jronaldlee

Don?t Delay when Buying an Investment Property

January 4th, 2010

Buying real estate is a big decision. That being said, if you procrastinate too long you may find yourself missing out on the deal of a lifetime. Simply put, you are not the only investor out there. If you don?t make a move soon enough somebody else may swoop in and buy the property. Does this sound like a lot of pressure? If so, you are right. Buying an investment property is not always simple.

Why are you waiting? This is the question you need to ask yourself. Are you unsure of the property? Do you need to gather more funds before moving forward? Are you just plain scared? You need to know what is holding you back from buying the property right now. From there, you can either find a solution or move on for the time being.

If you find an investment property that you want and know that it is right for you, there is no reason to wait any longer. Ask yourself this question: would I be disappointed if this property was purchased by somebody else? If the answer is yes, you cannot afford to wait any longer. Now is the time to go all out and buy the property.