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Archive for February, 2010

Stay Away from Get Rich Quick Real Estate

February 12th, 2010

There is something about those late night commercials and get rich schemes that is appealing but be wary because they’re just as big of a scam now as they were in the past. Sure the real estate market has changed and it’s easier to find a great deal but the economy isn’t right for many and buying any real estate may be too financially taxing.

Before you buy the sales pitch and toss well earned money at these real estate gurus, remember that few of them (if any) can actually back up their claims. And even if the pitch isn’t entirely a scam, it’s definitely not a no effort, immediate way to roll in the dough.

Buying real estate is typically a good investment, but few people have the time, money and ability to purchase more than one or two homes. Then there is also the time involved with real estate investments. They don’t immediately appreciate over night, typically it takes a long time for real estate to jump in value and quite often you’ll need to make improvements to the property to keep with the times. At the very least there will be maintenance that will drain your finances.

If you’re interested in investing in real estate there are ways to make money, you can make substantial money in fact, but you’re going to have to be willing to invest time learning about the business and the area as well as the property itself and you’ll have to have a significant amount of money to invest in the initial purchase and maintenance.

Creating the Best Website for your Property

February 11th, 2010

Having a website today is almost a requirement, but having the wrong website can actually hurt your business. Create a website that attracts renters and presents your property in the most positive light by using the following guidelines.

Photos

Take photos of the property that show it in the best light possible. If you’re having a hard time getting photos that look good, hire a professional photographer. It will be worth the expense.

Text

Be informative and descriptive in your text but only describe the property, not your ideal tenant. Your job is to sell the property, not weed out tenants on the website.

Online Convenience

Add some modern conveniences to your website such as online applications, links to neighborhood businesses, schools, bus lines and anything else a tenant may want, online bill payment options, and direct contact to you and/or your maintenance crew.

Current and New

Don’t just think about potential residents, but consider your current tenants as well. Divide the site into areas of convenience and information for both.

Be Diligent

Stay on top of your website and respond to all inquiries in a timely fashion. You don’t want to put off potential tenants and you can’t afford to ignore established ones. You should also post new text and/or photos whenever applicable. Don’t list info on specific units as you’ll create too much work trying to keep up with them, but do provide information on major renovations or upgrades.

photo credit:?tomeppy

Pros and Cons of Selling Your Own Home

February 10th, 2010

Putting your home on the market yourself and skipping the necessity of paying many thousands of dollars of fees to a real estate agent can sound very tempting, but make sure you consider both the pros and cons before making this big decision.

In your favor are, of course, the potential savings on fees; if you have marketing and negotiating skills developed through your regular line of work, then you can also have a good chance of performing as well or better than an agent, because you personally have a lot more invested in the sale of your home.

The possible pitfalls are many. Some people will become defensive if potential buyers criticise aspects of the home, so if you are too house-proud selling yourself may not be the right answer for you. You also need to have a very good knowledge of the real estate market in your local area, or you risk pricing the property far too high and missing out on potential buyers. Finally, the negative side of having a lot riding on the sale means you may be unable to be objective when it comes to negotiations, or you may prefer particular buyers simply because they are the kind of people you want to have living in “your” house, even if they may not be financially viable buyers.

Think carefully before you take on this kind of responsibility yourself, because it may end up not saving you too much money, and providing an awful lot of stress.

Choosing A Location For A Vacation Rental Property

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.

photo credit:?Let Ideas Compete

World’s Most Awesome Tunnels

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. (more…)

Three Tips to Finding a Good Deal on a New House

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.

Foreclosed Homes as Rental Property

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.

Checking Into Home Owners’ Associations Before Buying

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.

photo credit:?Matt Biddulph

Things to Have in a Property Management Contract

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.

5 Tips for First Time Homebuyers

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