Kristin « AllPropertyManagement.com

Author Archive

Three Tips to Finding a Good Deal on a New House

Monday, 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 »

Foreclosed Homes as Rental Property

Friday, 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 »

Things to Have in a Property Management Contract

Wednesday, 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 »

5 Tips for First Time Homebuyers

Tuesday, 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 »

Dividing Property in a Breakup

Thursday, 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 »

Fixing a Bounced Check for Rent

Tuesday, 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

Posted in Money & Finances | No Comments »

Quit Claim Deed

Thursday, 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

Posted in Mortgages, Real Estate Law | No Comments »

How to Handle a Bounced Check

Thursday, 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

Posted in Money & Finances, Tenants | No Comments »

How to Improve your Credit Score

Tuesday, 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

Posted in Money & Finances | No Comments »

Types of Home Loan Lenders

Friday, 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.