Tips for Buying Foreclosure Properties - When a house is listed as a foreclosure property, it means that owners are in big financial trouble, for a very long time. The owner is not able to pay the mortgage any more, and any payment in the future is not possible. In such cases, the lender takes a court order for foreclosure in order to get the money back. First, there is pre foreclosure period; this is a time when the borrower is warned about the possibility of foreclosure, if the mortgage is not paid within the stipulated time. The time limit of the grace period is determined by state laws. This pre foreclosure period is very beneficial for a customer who is looking to buy foreclosed properties. You can approach the owner with a good price for the house, which is good to your pocket and even helpful to the owner. Slot Game Online.
When the owner is not able to repay the debt to the bank, the owner is forced to give up the property to the bank. These bank owned properties are open for foreclosure sale at below market prices. As the sale is held by banks, they are safe for new buyers looking for foreclosed properties. The main purpose of the lender is to get back the money. Therefore, the lender might offer the buyer a price which is less than the market price. Slot Game Online. While bidding for the house, the buyer must have the cash ready. If the buyer is successful, the house is handed over at the same time, in its present condition. If you are able to get a house in a foreclosure sale, that is also in a good area, then it can be a very amazing investment. The owners who fail to repay debt voluntarily give the house to the bank to cancel the loan. These banks hold auctions in order to sell the house and get back their money. Therefore, it will be beneficial for the buyer looking for foreclosure sales. Slot Game Online. It is true that the foreclosed property is cheaper than the market price, but still you must study the market and do your homework. You must research the market price of the house, the location of the house, and even the condition of the house. You can get to know where the auction is being held. You can find it in the local newspapers. You can approach real estate agents or the attorney and notify them that you are interested in buying the foreclosure property. Slot Game Online. After the property goes into the foreclosure mode, the owners do not care about the condition of the house. Therefore, you must know the present condition of the house, and how much you need to spend on its renovation. You can go by yourself or take an expert advisor with you to inspect the house. You must calculate the market price of the house and the expenditure you will need to make on the house. Because it might happen that you will end up spending more on the repairs than is worthwhile. Slot Game Online. A little homework about the original market price of the house and the actual condition of the house will help you to play it safe at foreclosure auctions. You will be able to determine the price that will be profitable to you. After all, this research will help you fix your price range and you must stick to it. You can attend some foreclosure auctions to understand its working pattern and process. Slot Game Online. You must set practical expectations when buying any foreclosed property. If you realize that the house requires more repair, then you can bargain more. You can also look at how long the house was empty, because there will be more damage to the house, the longer it has remained empty. You must check whether the house was given pest treatment and there are no bugs and moths eating up the woodwork of the house. These damages require huge expenditures to get them repaired. Slot Game Online. There is one more form of foreclosure sale, known as hidden foreclosure, which is carried out for new and upscale houses. The auction for this is not advertised openly and, therefore, has less exposure to possible buyers. Real estate agents carry out the proceedings of such sale. Therefore, if you come across such sale, you must inspect carefully for all the details and make a smart decision. Read More about Property News.
0 Comments
Let's repeat some well-known business facts: a) 98% of all businesses in the USA are small businesses. b) 98% of all businesses fail in the first year, c) 100% of all failed businesses have well-understood reasons why they failed. With these three facts, we should be able to craft a business that has a more than average chance of success. Slot Game Online.
Why businesses fail. All failed businesses share the same characteristic: they fail for one or more of the following reasons: 1) Undercapitalized. They don't have the financial strength to survive the startup period. 2) Weak Management. The current owner/manager simply doesn't have the skills to make the business flourish. 3) Wrong product. You can't sell what the public doesn't want to buy. 4) Wrong market. What you have may be attractive but the local market can't afford to buy it. 5) No 'exit' strategy. With no thought of the future, the business will founder. 6) No "vision" as to what the business intends to accomplish. Notice that nowhere once did I say the words "Real Estate", even though that is the emphasis of this article. A "Real Estate" investment business is just the same as any other business, and can fail for all the same reasons that other businesses fail. The main difference is that when you invest in Real Estate, you tend to risk larger amounts of capital. Also, the Real Estate market contains many factors that you can never control, unlike most 'normal' businesses.Slot Game Online What's the answer? The most important answer is: a well-crafted business plan. Developing a meaningful business plan is more than just sitting down and describing your product in glowing marketing terms. The act of creating a business plan forces you to think about the various aspects of the business. It also places you in the position of your customer, your banker, your lawyer, your assistants, and yourself as owner/operator.Slot Game Online A well-thought through business plan becomes the roadmap to your business success. It lays out what you plan to accomplish, when you plan to accomplish, what resources you will need to achieve your goal, and a timetable of when you will achieve that goal.Slot Game Online Before you rush over to the computer and begin to hammer out a business plan, you need to do some heavy duty and serious research. Visit your Library and check out some books on preparing a business plan. See what the elements make up a business plan. Then after you've digested the information, speak to your Banker. Ask what they want to see in the way of a business plan that will help them fund your new business.Slot Game Online You might want to invest in a copy of a "Business Plan Development" software program that will guide your efforts in creating that plan. Let's examine these six points. 1. Undercapitalized. As a minimum, you should plan on being able to sustain the business for 12 months, and be able to cover all expenses for that time. You'll need either up-front capital, or a guaranteed line of credit that you can draw upon during that first 12 month period. Your business plan needs to spell out all of the expenses you'll incur during that first 12 month initial start-up period. Don't forget advertizing, property acquisition, living expenses, property maintenance and repairs, property holding costs (if you finance your investment purchase, you have monthly mortgage expenses, utilities, gardening and upkeep, etc. while you fish for tenants).Slot Game Online 2. Weak Management. If you've never managed a business, you're in for a rude awakening. Typically, the owner of the business is his/her own worst enemy - you'll find yourself talking to yourself in the mirror:?Why are you wasting time (shaving/putting on makeup/etc) when you should be out "doing business"?? How do I get clients? How do I get renters? How do I find investors? A strong business plan will help you identify these 'time traps', and hopefully, guide you away from them.Slot Game Online 3. Wrong Product. Are you trying to flip properties in a falling market? Do you find that you can't rent a property so that it has a chance of getting a positive cash flow? Are there any takers out there? A well-thought through business plan will minimize the chances of that happening.Slot Game Online 4. Wrong Market. An extension of #3 above. After fixing that old place up, you find that it's now too costly for any one in that area to buy. Your business plan may have been able to flag that one before you started.Slot Game Online 5. No Exit Strategy. If you don't have a roadmap of where you're going, then you'll never get to where you want to be. Of course, if you didn't sit down and decide where you wanted to be in the first place, you'll surly succeed in getting there! A well-developed business plan will help you lay out Who, What, When, Where, and Why, in addition to How.Slot Game Online 6. No "Vision". A business plan not only establishes your goals, but it does one thing more: remove the 'emotion' from the decision. Getting emotionally involved is not the same as being enthusiastic about what you're doing. If your vision is to have a string of positive cash-flowing properties that are easily rented, easy to maintain, and low overhead, then your business plan should prevent you from "Gold-Plating" those properties so that you never achieve that goal. Read More About Property News. The most successful real estate investors never rush blindly into a purchase, instead full research is carried out to assess the realistic investment potential. Being well informed in both high and low risk investment locations will assist with devising aversion plans to avoid any potential issues that may arise.
Dedicated investment companies will carry out extensive research prior to offering properties to their clients. Comprehensive research will not only provide an insight to the property itself, but also the economic and political stability of its location. Slot Game Online. Understanding the property and its location in detail provides further assurance that the property presents an optimum investment opportunity. Knowing what to search for when selecting an investment property will enable clients the ability to confirm facts and figures for peace of mind. Slot Game Online. Return on Investment The realistic return on investment is one of the main initial factors to consider. The return on investment is essentially the amount of money the property will make through capital appreciation and yield returns prior to selling. If a property is unlikely to provide the expected returns to make it a viable investment opportunity in the amount of time the buyer wishes to maintain the property, another property or location should be considered. Taking into account the annual maintenance fees and taxes, along with the associated selling costs, is essential to ensure correct calculations are made. Slot Game Online. The return on investment is one of the areas where risk factors come into the equation. Emerging markets have traditionally provided the highest returns in the shortest period of time, while the established markets provide slower, yet more stable and less risky returns. The current world real estate market situation has changed many investor perception of the fast returns potential of emerging markets. This has led to an increased interest in the secure returns of established markets. Slot Game Online. Environmental Stability Political and economic research into investment locations is essential in emerging markets. Understanding the economic growth factors of the country can provide some insight to the mid and long term market value and demand. This is also important for understanding potential exit strategies for selling the property in the future. A country's susceptibility to variations in long term economic stability can determine some of the investment's risk factors. For example, emerging markets reliant predominantly upon tourism for growth present risks to real estate investors, as the country's economic environment is not sufficiently varied. While the market may appear to be in its initial growth stages at the time of purchasing, market expansion will depend upon continued demand and interest in the region. Slot Game Online. Re-sale potential is significantly improved in locations where the domestic population is capable of accessing the real estate market. In regions where the property is significantly overpriced for the domestic market, re-sale possibilities will be limited to other foreign investors. This can pose a problem if at the time of selling buyers are more interested in newer, possibly cheaper property in a more easily accessible location. The subject of political stability can also include the government encouragement to actively attract foreign investment and tourism to the country. If a country is not entirely welcoming to foreign investors the purchase process may be difficult, followed by difficult re-sale potential. Issues such as civil unrest in developing nations can significantly devalue a property or lead to ownership right issues. To avoid these issues, it is vital to only consider emerging markets with political and economic stability. Slot Game Online. Price Comparisons The price of the property is one of the initial considerations when sourcing a real estate investment. As property prices have reduced significantly in many established markets worldwide, the mid-term return potentials enable greater scope when investing in the current market. The economic stability of emerging markets for investment is now more important than in recent years to protect against financial losses. Researching the surrounding market will help to ensure the property is not over priced by comparison. If the property presents a higher price, consider the reasons why before discounting it immediately. There may be security features in place, such as guaranteed rental returns, guaranteed buy-back opportunities or other features such as furniture packages included. Slot Game Online. If this is the case, consider the additional costs that are covered in the security features and associated extras. These costs may include furnishing the new property, maintenance and advertising charges for placing the property onto the rental market, or the effort to find buyers in the resale market at the time to re-sell. If the more expensive property still does not present a viable investment option in its market, it may be wise to look into another development. Accurate Cash Flow Analysis A comprehensive understanding of the required financing for a property will assist with analysing the full financial overview. Associated purchasing costs vary significantly from country to country and can sometimes differ between residents and non-residents. Full consideration is required for accurate cash flow estimations and knowing whether the property and the returns present a truly viable investment opportunity. After taking into account all the additional expenditures, the exit strategies and any other outside factors, a comprehensive understanding of the full investment potential and genuine returns for the investment can be assessed. Read More Article About Property. How Property Passes at DeathDeath, Taxes, and teenage texting - these are the certainties of life. The tax code is far too complicated for anyone to understand, and why teenagers can text all day but never write a thank you note is an unsolved mystery. Slot Game Online.
Death on the other hand is somewhat more straightforward. One day you're reading the newspaper and the next day you're in it. Let's take a look at what happens to your property once everyone knows where to send the flowers. First, and surprising to a number of people, most of your property will probably not end up in probate court. Only what passes by will goes through the process. Of course the state has never met you and doesn't know how you'd want things distributed, but whose fault is that? Dying without a will is called intestacy. You don't want to die intestate. Go see an estate planning attorney and get cured. Now that we've solved that, here's how property passes. Life Insurance and Annuities The death benefits are paid to named beneficiaries. Unless you name your estate as beneficiary, the death benefits will escape probate. Generally, it's not a good idea to name your estate as beneficiary. One reason is that assets in your estate are available to creditors. The benefits also are slower to reach the hands of your heirs. An heir has not yet been born that wants your money later than sooner. Slot Game Online. If you have exposure to estate taxes, you may want to consider an irrevocable life insurance trust (ILIT). An ILIT keeps the death proceeds out of your taxable estate. Life insurance companies used to send a check directly to the beneficiary. Today they are more likely to send a checkbook that the beneficiary can access. Life insurance companies claim this is more convenient for the beneficiary. Call me crazy, but I think they do it to hold on to the money a little bit longer. Most beneficiaries already have a checking account. Why would they want another? Retirement Plans Deferred Retirement Plans, including Individual Retirement Accounts, pass by beneficiary. Same rules apply to surviving spouse that exist for annuities. It obviously helps to have a surviving spouse. The people who wrote this tax code were probably married. Slot Game Online. A Roth IRA also passes by beneficiary, but has no income tax ramifications to the beneficiary, even if the beneficiary is not the surviving spouse. The people who wrote this portion of the tax code were probably divorced, but had a slew of children. Slot Game Online. If taxes are due when received by a beneficiary, the taxes may be strung out over a number of years by different techniques including a "rollover beneficiary IRA." Go see a financial planner to see what works for you. Jointly Owned Property A lot of property like real estate, bank accounts, and brokerage accounts are owned jointly. The most common form of joint ownership is "joint tenants with right of survivorship (JTWROS)." The surviving owner automatically gets the asset upon the death of another owner. JTWROS should not be confused by another type of joint ownership called "tenancy in common." Tenancy in common divides the property in actual shares and when an owner dies, they can leave the property by will to whomever they want. Take a shoreline cottage jointly owned tenancy in common by two married brothers. If one dies, he can leave his portion to his wife and children. Slot Game Online. They can then continue to enjoy their seaside vacations. Naturally, as this passes through the generations, a real family rats nest is created, but if you can't fight with family over who gets the prime summer weeks, who can you fight with? Property In Your Own Name Now we come to the property that passes by will. If you solely own something that doesn't pass in the manners described above, it becomes part of your probate estate. For example, if you own a savings account in your name alone, it passes by your will. Your will names an executor, a thankless but necessary job. It is up to the executor to inventory your probate estate and eventually distribute it to your heirs. Slot Game Online. Many people are establishing and funding "living trusts." These trusts are established during your lifetime and funded with assets that would otherwise pass by will. Since most people are their own trustees, control of the assets isn't an issue. At the death of the individual, the assets fall under the control of a new trustee. Since the assets are already in trust, they escape the probate process. Read More About Property. 1.) Power of the Internet - As a seller, you need to be where your clients are. Research shows that more than 95% of people search for homes online. Invest in advertising, take professional and alluring photographs of your house and advertise it on every possible site that is dedicated to selling stuff. You can also place an ad under the Classified Ads Section. Slot Game Online.
2.) Know the Right Value of your House - Even though your home might be a priceless asset for you, it needs to have a price tag if you want to sell it. Get home appraisal and market analysis done to find out the approximate value of your house and then calculate a realistic selling price. Both overpricing and under pricing can make it difficult for you sell your house. Slot Game Online. 3.) Real Estate agents - While there is divided opinion regarding hiring a real estate agent or privately selling a house, it is advisable that first time home sellers take the help of an agent. A real estate agent can help you with various legalities, finding the right buyers, advertising and fixing loopholes. In fact, an experienced real estate agent can devise a complete marketing plan and ensure that you get the best value for your house. Slot Game Online. 4.) Presentation is important - A makeover for your house does not need to be a costly affair. Painting, landscaping, new light switch covers, touching up the wooden flooring, polishing the tiles etc are a few things that can instantly improve the appearance of your house, without making a hole in your pocket. Your real estate agent can also suggest cost-effective ways to enhance your house's appeal. Slot Game Online. 5.) Pay attention to the Exteriors - One common mistake most sellers make is they focus only on the interiors of their house and ignore the outer view. However the landscape, the exterior appearance of your house etc are a few things that create the first impression and can spell the difference between success and failure. Paint or wash the outer walls of the house, keep the grass trimmed, clear the clutter and check the chimney and sewers. Slot Game Online. 6.) Depersonalize - Sure it is your home but now you want to sell it, thus it is important that you allow potential buyers to visualize it as theirs. Clear the walls, corners and cupboards and keep them basic. All family photos, funny posters, bright decorative stuff or personal collections should be removed, so the buyers can have a good look at the' house' and not your customized home. Slot Game Online. 7.) Safeguard your privacy - Once you have put up your house 'For Sale', be prepared to handle a lot of visitors. While most of them would be seriously looking to buy a house, a few can be frauds just posing as buyers. Thus it is important to remain alert and take preventive measures beforehand. Remove all expensive stuff that might be kept outside, lock drawers that contain personal papers, mails containing sensitive information should also be kept away from visitors' reach. Slot Game Online. 8.) Be Honest - If there are any issues or problems with the house, let your buyers know beforehand. Trying to hide problems will not help you much as most buyers will get a thorough check and home inspection done. Lying or misleading the buyers can land you in trouble and they can even file a lawsuit against you. Honesty is really the best policy when it comes to selling your home! Slot Game Online. 9.) Get Home Inspection Done - Having your home inspected by a professional will make you aware about the various issues or problems that otherwise would remain hidden. This allows you to get necessary repairs done before a third person comes and points it out. Home inspection also helps you in pricing your home realistically. Ensure that you provide the buyers with a copy of the inspection report along with receipts of the repairs that you got done. Slot Game Online. 10.) Leave them Alone - Give your buyers some private space to converse and discuss when they come to see your house. Your presence can limit their conversation and make them feel uncomfortable, thus it is best to leave them alone for some time after showing the house. Keep your children and pets also away when potential buyers come to see your house. Property News. As a landlord, my experiences dealing with tenants have ranged from pleasant to downright disastrous. Every aspect of being a landlord has come with its own unique challenges and learning experiences. My family has been investing in properties for a lot of years and we have all been through very unique experiences as land lords. Whether it was in Colorado, Tennessee or Florida, we managed our own properties and learned the hard way how to collect rent. Today, we own and manage a Memphis, Tennessee property management company named Premier Property Management, LLC which will surpass 1,000 properties under management in 2011. Even though we manage this vast number of properties, we still average less than 1% of our properties needing any legal action each month to collect rent. The ability to collect rents hold down our costs and the costs for the real estate investors we serve. Here are a few tips that we have learned about collecting rents as part of the management process. Slot Game Online.
1. Know your local and State laws. So much of my advice may seem redundant at times, but it should be! The first piece of advice I give on any subject is always educate yourself. Without knowing the rules of the game, how can you ever expect to win? The name of this game is collecting rent, on time each month and collecting the late fees when it is not. Whether you consult with other investors at local real estate clubs, talk to investors from your area online or visit in person with local management companies, there are ways to figure out the local and state laws without having to bury your nose in law books at the library. Find those around you with experience and ask their advice. Ask for everything you can including copies of leases and notices. The worst they can say is no and you will find a majority are happy to help someone trying to make a go of it on their own. Slot Game Online. 2. Be Polite, Professional and Consistent. When managing properties, the best way to start a relationship with a tenant is with mutual respect. Always being polite and professional is a great way to start off and gives you a great deal of room to ask for respect and courtesy in return. Being consistent allows you to always apply the rules you have laid out in your lease because they are enforced to the letter. This will go a long way in making your collection efforts easier as the tenants knows you are being consistent and fair. Slot Game Online. 3. Bring out the big sticks when necessary. When it is necessary, sometimes a property owner has to step up to the plate and play hard ball with a tenant. This is when having a good understanding of the local and state laws can benefit an owner greatly. Legal letters from an owner threatening eviction are always great ways to alert a tenant they are behind and to protect the owner. From here, depending on your laws, notices on doors, notices in the yards, collection phone calls and even knocking on the front door - loudly - all come into play and should be used in some variation. Tenants have a binding responsibility to pay rent and if you have held up your end of the agreement, they should hold up theirs. Slot Game Online. I always suggest going out of your way to deliver a quality property that meets not only all of the quality of life issues, but also the comforts of life as well. Treating a prospective tenant with respect and being very clear about what they can expect from you and what you expect from them will only make the hard part of collecting rents easier. Above all else, always be fair. If a tenant has the ability to work with you and you can make payment arrangements work with your budget, then by all means work with the tenant. Slot Game Online. During the process of sending notices and placing phone calls, more than likely a tenant will contact you with a request. This is a real good time to assess the future of this arrangement and the willingness of the tenant to be responsible. As an investor managing his own properties, the communication is what you want. If the tenant can't pay, you want to know early and you want to know why. You then have the choice of getting them out of the property or working together. The idea behind all of the touches, is to get the rent collected on time every month and if it is not on time, then to get it all collected with late fees. By being fair and balanced, yet strict and consistent, you should have very few problems with collecting rent. Property News. Close on the heels of Hollywood blockbuster The Social network, have you ever thought what you would do if someone stole your idea? In today's fast paced knowledge-based economy, inventions and the "eureka" moments are shaping trends. Ideas and knowledge or intellectual capital underpins the development of economies. The worth of ideas is considered intellectual property that has to be protected, albeit with conditions. And, so Intellectual Property Right (IPR) are the legal right resulting from intellectual activity in the scientific, literary and the artistic fields. The genesis of intellectual property rights and the very premise of intellectual property were identified as early as the 18th century. Certain court rulings in the 19th century mention the term while the history of the patents for discoveries can be traced further back. Digging deeper into history shows references to prohibition of theft of ideas in Jewish law way back in the 16th century, even though the concept of intellectual property itself was not developed back then. IPR allows the creators of ideas to enjoy certain exclusive rights for a limited period on intangible assets to control the use made of those productions. IPR aims to give moral and statutory rights to the creator on one hand and promote creativity, development and fair play on the other.
It was the surge of industrialisation and free trade that led to the belief that intellectual property rights were required and had to be regulated. In the year 1873, the International Exhibition of Inventions in Vienna was held, Many inventors refused to attend this event, believing that their ideas would be stolen and exploited in other countries. This led to the charting of Paris Convention for the protection of Industrial Property of 1883. Simply put, it allowed people to safeguard their creations against exploitations in other countries. Following closely, the Berne Convention for the Protection of Literary and Artistic Works of 1886, extended intellectual property to the realm of copyright. This codified the right of artists to their creations. In 1893 both these united to form the United International bureaus for the protection of Intellectual Property Organisation under the UN through the Stockholm Convention in 1967. The mission of WIPO is to promote through international cooperation the creation, dissemination, cultural and social progress of all mankind. Talking of Intellectual property law of India, Abhilasha Kambhat, a specialist in IPR and a Lawyer at Rajasthan High Court says: "It is only in the last 15 to 20 years that people have become more aware of IPR. Government and private sector initiatives to disseminate knowledge about the subject through interactions with industries and other stakeholders have been one important reason for this positive change"Amarjit Singh, seminal authority on IPR and Managing Partner, Amarjit and Associates, an Intellectual Property boutique firm in Delhi, believes that economic liberalisation has tremendously changed the IPR regime. Shruti Sondhi, Managing Associate at Anand and Anand Associates, one of India's top law firms in the fields of IPR says that IPR will only grow from strength to strength. But IPR is not without its fair of criticism. Richard Stallman, the founder of the free software GNU project, believes that the term intellectual property itself is flawed as it is used as an overarching umbrella to incorporate different elements like copyright, patents, trademarks. On the other hand it is argued that IPR protects the creativity of the mind which should be considered like any other tangible or non tangible asset. India will face challenges in the IPR arena as more cases come to light. Hari Subramanium, a leading Patent Attorney in Kerala, India Says: " Copyright is one area where IPR will face a big challenge as we can already see with infringements on music, book and other media. Lack of specialised patent courts and high level of technical expertise required in understanding is an area which we need to work on" FAMOUS CASES A&M Records vs Napster (2001)-Napster, a peer-to-peer music sharing site, had to settle US$26 million to different recording companies and song writer before closing in 2002. Princeton University Press vs. Michigan Document Service created booklets out of photocopied study material provided by the University and sold it to the students. The court considered that it was not "fair use" and penalised the photocopying company. Zippo Manufacturing Company vs. Mookchandani & others- Zippo won a case regarding the shape mark on its lighter which copied on other cheaper quality lighters in India. Harry Potter vs. Hari Puutar Warner Brothers lost the case regarding similar sounding movie title as it was asserted that subject matter was different in the Bollywood movie. Austin Nichols vs. Jagatjit Industries Limited-Jagatjit Industries lost the right to use the Blender's pride trademark. Various pharmaceutical company patent infringement cases. How to Find the Best Locations for Buying Rental Property Real Estate That Nets the Highest Returns9/11/2020 You have heard it before. T, the first three rules of real estate are Location, Location, Location, and this is no different when buying rental property. If you are in the market to purchase rental property real estate, you need to know your market. Below is a series of steps you can take to fundamentally understand your real estate market and determine the best areas in which to purchase your buy and hold properties.
Establish Where the Rental Markets Are Here is a systematic way to figure out which rental markets in your area will have the highest potential returns. Have a realtor put together a list of properties that have sold in your area. You are going to want to find sales data on "bread and butter" rental properties - properties with 3 bedrooms, 1 bathroom, 800sq ft - 1200sq ft with a basement and a garage. Take the list of properties and sort them by sales price. Once you have the properties sorted by price, break them up into 3 groups - the lower third by price, the middle third by price, and the upper third by price. Next, take a map and start to plot out the three groups of properties. For each group use a different color marker on the map. Once you have the map populated with, you should start to see trends on the map. The properties priced in the lower third will likely have the potential to generate the highest return. These are the areas you are going to want to investigate further. If you have lived in the area, you probably have a general idea about these areas, but you need to set that aside for now because to truly know the market you need to complete the next steps. Drive the Targeted Market Once you have established a few areas, you are going to want to get in your car and drive through the neighborhoods. When you do this, you need to take note of the things listed below. Please keep in mind that you should be looking for trends in the area. You may see one house that is particularly good or bad, but you are really trying to look at the neighborhood in general, so look for trends. What is the condition of the homes in the area? Do you see solid homes, with good roofs and freshly painted trim, or do you see you see old dilapidated homes with broken windows? Are the properties kept up? An easy way to tell this is by looking at the condition of the landscaping. Do you see mowed lawns with flowers planted all around, or do you see long grass and overgrown weeds? The condition of the landscaping can provide a great deal of insight about the people living in that neighborhood. What does the neighborhood look like? Look at the streets, are they clean, or is there trash strewn around. Look for sidewalks. If you are driving around outside of school hours are kids playing in the streets? Or in contrast does the neighborhood give you the creeps. You are really looking to answer the question "Do my tenants want to live here?" Talk to People in the Neighborhood It is really a good idea to speak with people in the neighborhood. If you see someone walking down the street, stop and let them know you are looking to buy real estate in the area and ask them about the neighborhood. Or, you can stop in a local business like a market or a gas station and talk to the guy behind the counter about the area. Once you have established your target markets, and driven the areas, you should be able to quickly see which markets you want to invest in, and which markets you do not. To document this you can easily take a map and highlight the streets where you will consider investing. Determine the Returns The next step is to look at the potential returns you will generate. This is a very simple thing to do, and you can follow these steps. Speak with a local property management company about the rental rates for a 3 bedroom, 1 bath home with a garage and a basement in the area you have selected. The property management company should be able to give you a very good idea of the rental rates and also give you some more feedback about the area in general. You should also inquire with them about their rates for property management. Look up the taxes on a few properties to establish what you can expect to pay in taxes for properties in the area you have selected. Speak to an insurance agent about the cost of insurance for a property in your target market. Calculate your net income. To do this, simply take your rental income expected for the year and subtract the taxes, insurance, and property management expense. Calculate your return. To do this simply divide the net income you calculated in step 4 by the price you will be paying for the property. With this information you should be able to see what kinds of returns you can generate for your targeted area. An interesting exercise to perform is to also calculate your return on areas where homes are selling at a higher price. What you will find is that the neighborhoods may be a bit nicer, but your returns are going to drop quickly. In many parts of the country rehabbers are having problems selling their inventories because of new problems they haven't faced in years. Concern is growing among rehabbers with 2- 5+ properties in inventory that they may get stuck in these properties and lose money when their homes are finally sold. A little planning on four of the largest issues can make the difference between success and failure. Slot Game Online.
The largest issues rehabbers are facing include: 1. Appraisers are more often using distressed property sales, including short sales and REOs, as comparable sales. a. Find your own comps that are not distressed sales and show the appraiser. Keep this problem in mind when you purchase your next property so you aren't turning out a beautiful property but it has to be sold above market value for you to break-even. Slot Game Online. b. If the buyer is financing FHA, make sure an appraisal is high enough before you get an official one from FHA. This FHA appraisal "sticks" to the property and won't go away for another FHA buyer. 2. Lenders still seem to be unwilling to make loans to buyers. a. The major mortgage insurers, FNMA and Freddie Mac, have dropped their seasoning requirements but the front-line lenders continue to have 90 or more days as a seasoning requirement. The major reason is because of liquidity and cash requirements needed by the lenders. Slot Game Online. b. A simple solution is to review the buyer's credit, cash for closing and make sure he doesn't buy or charge any major items such as appliances or an auto before the closing. Almost all lenders are now pulling the buyer's credit twice, once in the beginning of the loan application phase and again the day before or the day of the closing. 3. Many rehabbers are buying REOs on their initial offerings and paying too much money. a. A general belief by investors is that newly priced REOs are the best deals around and these investors are getting into a bidding frenzy with themselves. The rehabber wants the property and keeps bidding way beyond sensibilities. b. The solution is to bid effectively on more properties and not get caught in the feeding frenzy to get a deal. Currently there are ten times as many properties that are or will become an REO in the coming year. 4. This is the one you don't want to hear - the market is still declining in many areas of the country and may do so for 2 - 3 years. Slot Game Online. a. Despite the glowing reports from various sources, there are too many properties that must come to market and too few buyers. Looking at what are defined as "distressed", those properties that are already REOs or where Lis Pendens have been served, combined with homeowners who are Upside-down, Not in Foreclosure, but their homes are Not Yet For Sale, this shadow market represents one in four homes in our area. b. Having said that, I believe that an investor is currently faced with potentially the most profitable market in the last 50+ years if he approaches it properly. Besides the above solutions here are a few more A. Selling a rehabbed or wholesale property is similar. Both require the property be sold as quickly as possible for maximum profit and to not lose a sale. Ironically, while the condition of the property matters, the marketing of the property is 100 times more important. This may seem illogical at first, but it is the reality. The more you market the property, the closer you are to a buyer who will buy it because of price, or because he falls in love with some aspect of it and pays over market value for it. Slot Game Online. B. Here is the heart-stopper, the MLS is a glass ceiling and the nearly worst place to advertise it, plus it costs the most. Realtors won't like that but it is the reality of the way the MLS and its listing structure work. Learn to use marketing methods that reach motivated buyers for the specific type of property you are marketing. Slot Game Online. C. Use a modified round-robin auction system that stresses the property, whatever its condition, must be sold and quickly. This method if properly marketed can bring in as many as 25 to 75 times the number of prospects that traditional Open Houses do for realtors. The prospects are bidding against one another and the final result is the real market value of the property. D. Build a buyers list so that you have buyers for your next wholesale or retail sale. This can be done by reselling the same properties after they are under contract for backup and future buyers of other properties. Your power as an investor is the depth of your buyers list, the bigger the better. In summary, don't be discouraged about what the market is doing or where it is going. You can make money in any market as long as you limit your losses and sell as quickly as possible. In future months or years, it may be easier to hold out for higher prices but until the country's burdensome inventory is financed by lenders, you need to sell fast and be very selective about the next property you purchase for rehabbing. Read More About Property News If you have recently decided to purchase land to build on, whether it be for a home or a business, you will find there is a lot to think about. Every piece of land you look at may not be suitable for your needs. Buying a piece of land without doing the proper research is risky. You could end up with a piece of land that you can not build on and one that you have a difficult time selling. Slot Game Online.
The following are the first five items you should check into before you consider the purchase of land: Overall Appeal When you are looking a piece of land, the first thing you should do is step out of your vehicle and take a deep breath. While doing this, close your eyes and listen to your surroundings. Are there any particular odors that may be offensive? Are there any sounds that could become annoying to you? The last thing you will want to do is to purchase land near a factory or something else that has foul odors or loud sounds coming from it. Slot Game Online. Setback Every city and town has set a standard for building on land. The setback is actually the distance between the property line and the building to be constructed. If the setback for the town you are in is 25 feet, this means that nothing can be built within 25 feet of the property line. This should always play a factor in your decision. For example, if you have a piece of property that gives you limited views of the water and the views you could get are located within that 25 foot distance, you will not be able to build a home and get the view you want from your living room or any other room in the house. While you can go in front of the town and apply for a variance, this can be time consuming. Slot Game Online. Deed Restrictions Whenever you are looking at a piece of land, you should always have a copy of the deed. Deed restrictions can be placed on the land by former owners of the property or, in certain cases, the town itself. Some common examples of deed restrictions include limitations on the structure that can be built, such as what types of materials can be used, and limitations on the size of the home. It may even state that you are not allowed to have a business on the land or livestock. You will always want to review these restrictions before purchasing. Slot Game Online. Right of Ways or Easements If there are any rights of way or easements on the property, you will also find these on the deed. Basically, a right of way or easement, allows others legal passage across the land. For example, if there is a right of way for the power company, they could have access to this area of your land and may even have the right to construct a building or install power lines on it. Private parties who have a right of way may need it to gain access to their own property. Regardless, if you value your privacy, purchasing a lot with easements may not be your best option. Slot Game Online. Minimum Acreage Standards Many towns have minimum acreage standards put in place to prevent overcrowding. In other words, if the minimum acreage required is 2 acres and the lot you are looking at is only 1.30 acres, you will not be able to build without a variance. Not only that, if you are buying a large lot and wish to break it up into several lots to sell in the future, the particular piece of land may have already been divided and has reached the subdivision limits. Always verify that you can do what you want with the land before you purchase. Slot Game Online. After you have stood on the property, determined that you liked its overall appeal, and have carefully looked at the town requirements and deed, you will be able to better determine whether the property is a potential candidate for purchase. Other things you should take into consideration include the elevation of the property, utilities, and its overall location in relevance to natural hazards. Slot Game Online. By carefully considering all aspects of the property, you will be able to better determine whether it is the right piece of land for you. Should you decide to purchase the land, you can then meet with a Title Attorney, who will conduct a title search on the property, to verify that no one else can lay claim to it. Within a short time, you can be the owner of your own piece of land. Property News. |