Steps To Get Started in Property Investment

1. Know Your Budget

Before taking a plunge into property investing, it is essential that you have an in-depth understanding of your cash flow. Plus, ask your bank for the pre-approval of your investment loan so that you know how much you can borrow prior you hunt your properties.

2. Don’t Skip Ongoing Costs

Ensure that you have sufficient budget for the insurance, rates, and general repairs. When you have bought your perfect investment property, know what you can do to stop costly maintenance problems like as replacement of old taps.

3. Purchase In the Growth Area

Pick an investment property in the areas where there is strong demand for the rental accommodation. So, purchasing an asset to transport, schools or universities will make it more alluring to the renters.

4. Be Practical About your Investment Goals

If you are hunting for the long-term property for fast capital growth, then it is easy to renovate properties and convert them for a quick profit. In slow economic times, it may take many years to get the same growth.

5. Create Sweat Equity

Paying tradesman to renovate your investment property is a costly affair. But if you are prepared to get into this, you can boost your profit margin and save money by doing the work on your own.

6. Hunt For the Liveable But avoid the Grand One

Note that the rental property only has to be neat, clean, and functional. Don’t get into buying a luxury asset as it has stylish decor and interior.

7. Don’t Get Emotional When Buying

When hunting for the house, you have to buy with your head not with your heart as some people might get caught up in the emotions easily. While home on the steep block might offer you mesmerizing views but it could be a nightmare for you to renovate due to the excavation or retaining costs. Also, make sure that you know the advantages and its risks.

8. Think Before Negative Turn-out

Your asset may get negatively geared if your repayments on the investment loan won’t entirely covered by the rent. While this can offer tax benefits, it can also result in the financial distress if you don’t have sufficient cash flow to cover the loan repayments. So, you need to consider your budget carefully before purchasing.

9. Inspect Your Building

Before signing any buyer contract, take your time to understand the building report well to avoid any high-cost repairs. Also, the termites are one of the leading issues that you need to look out.

The great Australian investor and professional real estate entrepreneur. He offers the best property investment podcast in the USA. He offers cost-effective tips and tricks to many newbie Australian and foreign investors to help them stand out from other and that too in short period. He will also help you out to refine your search to buy the best Investment Property for sale.

 

Tips To Get Different Investment In Property

The real estate market thrives with many opportunities that give chance to people to earn. The portfolio is diverse such that there are also many investments to try.

Rental properties are among the most common of the real estate property investments. This is as simple as buying out the property and letting someone (tenant) rent it for some period as determined by a contract. While the landlord (property owner) is responsible for maintenance and tax dues, the tenant has the obligation to pay for the monthly rent.

The downside to this investment is if the landlord will have to deal with irresponsible tenants. These people do not care at all and can end up damaging the property.

If you’re not keen with this property investment, you can try the real estate investment group. It will let you buy apartment blocks, condo units or even townhouses with a single company acting as the property manager. You keep ownership, usually documented in block and white. The investment company collects payments for you whole keeping some portion of what the tenants pay for the monthly rent. In some cases, there is a portion allotted to cover for units which are left vacant for short periods.

Another property investment is called flipping. In this method, you buy a property and flips it to the next owner. It’s like buy and sell. Usually, flipping a property takes three to four months. You just have to be keen on eyeing properties that can be sold without having to alter them at all.

However, there are new flippers who also shell out small amount of money to make the properties they buy more attractive. Few renovations and improvements are done before they look for the next buyer. This buyer may be someone who just looks for his new house or someone who is also a property flipper.

There are also property investors who take risks on financing people who have mortgage dues. Some do these in exchange for collaterals like cars. Some take the property titles and return them to the owner when the debt has been repayed.

Real estate is truly diverse. Many forms of investments are now available for those who do not only seek shelter but also seek shield from financial crisis.

If you are looking for real estate investments within your place, seeking the help of a real estate professional is a big leap towards this realization

Guide To Choose Real Estate Company

Selecting a commercial real estate company can be a challenging process. You want to hire someone who is knowledgeable, skilled, experienced and can match your goals and ideals. This is easier said than done. One company may offer you some of these features while others have the remaining characteristics you desire. There is no lack of the number of commercial real estate companies out there, which claim to possess peerless knowledge and skill. So, how do you go about selecting a commercial real estate company?

The secret lies in finding a real estate company that suits your needs and criteria. Yes, there are some overlaying concerns that also need to be considered like appropriate documentation. However, when you are looking for one of the best real estate companies for your needs, you need to do more than just scratch the surface. Here are some tips outlined below that can be useful in helping you during this process.

Let’s take a look at them:

Look at their experience

Commercial real estate is a blanket term and this business can be multi-faceted and highly nuanced. Therefore, you cannot just hire any real estate company for your needs. You have to start looking for one that suits your criteria. For instance, if you are interested in buying or selling properties in strip malls or shopping districts, you shouldn’t hire a company that deals in offices and residential homes. You want someone with a background in the kind of real estate you are focused on or else the company will be of little use because they will be out of their depth.

Assess their reputation

One of the best ways of spotting the best companies is by taking a look at their reputation. How can you do that? There are certifications, customer reviews as well as awards that are readily available due to the magic of the internet and the culture of open communication. If you find a commercial real estate company that seems appealing, you can do some research and discover if they do stack up. This step can be immensely helpful in allowing you to dodge a bullet.

Go over client’s opinions

The greatest problem with reviews is that they are mostly from satisfied customers. Unhappy customers either don’t post or their reviews are removed. Therefore, it is recommended that you ask the commercial company to provide you with a list of their past clients. This allows you to do some homework of your own and identify any weaknesses or problems that a previous client encountered.

Meet the representative

Last, but very important; don’t hire a company over the internet. Always meet their representative in person and see if they understand your needs. Open communication is vital in this business and if you are not comfortable with them, there is no point in starting a relationship.

Use these pointers to pick out one of the companies for your realty requirements.

 

First Investment Deal Tips

Because I have been investing for a long time, many new investors assume I’ve always known how to buy and sell investment real estate. Absolutely not true. No one is less experienced than I was starting out, but I had an absolute goal and I was willing to work hard to achieve it.

Let me tell you about my very first deal:

Jim and I knew we had to let people know that we wanted to buy houses if we were ever going to find deals to purchase. So, we began a little bit of very inexpensive marketing to get the phone to ring – walked neighborhoods putting out flyers, had magnetic signs on our car doors, put an ad in the local Nickel Paper (a three line ad was only $265 for a year). I had questionnaires printed out and stacked by the phone so, if a seller did call, I’d remember which questions to ask.

Like most new investors, I was terrified. Because I didn’t know what I was doing, I really didn’t want sellers to say “yes” to my offers, so I always made very low offers. Investor ignorance is not always a bad thing.

Almost the very first call was a woman calling from out of state. Back at that time, our phone had caller ID and it said the call was coming from “US Gov’t. Baltimore, MD”. I was convinced I was being arrested for doing something illegal, but quickly rationalized with myself that I couldn’t have done anything seriously wrong by that point, so I answered the phone.

The woman’s voice said, “do you buy houses?” What? The government already knew I was buying houses?!

As it turned out, her son lived near us and had taken down our phone number from the magnets on my car doors while I was parked at our local grocery store. The condo she was selling was actually in our neighborhood, and she was calling all the way from Baltimore, MD! This was so weird.

Anyway, it was vacant and had been on the market with a real estate agent for a year. I asked for the property details and promised to call her back. After doing my due diligence, I called and offered 65 cents on the dollar. She said, “Honey, I’ve owned this condo for six years and I still owe more on it than that!” I told her that I totally understood, that I was not going to be her best offer but that I was one solution, and she was welcome to call back anytime if she had more questions during her selling process.

I was so relieved that she didn’t take my offer. That night, she called back…

She asked, “if we did the deal, how it would take place?” I explained it to her, told her we would close with our attorney, and that she would have to write a check for the difference between what I was offering and what she still owed. She thanked me and hung up.

The next day, she called back and accepted my offer.

I had never even seen the inside of the property and was scared to death. Later that day I met her son at the property to check it out. It was immaculate – all new carpets and paint, all appliances including washer and dryer, a 2 story living area with a 2 story stone fireplace, an upstairs office area that overlooked the living area below. It was amazing. Because it was my very first deal and the seller actually paid to have me take it off her hands, I took this as a sign that I was heading down the right investment path!

Morals of this story?

  • Don’t think you need to know everything before you start investing. You really learn what you need to know while you’re investing.
  • Don’t think for the seller. Many assume that, if the seller owes too much, they won’t accept your low offer. Not true! Many sellers pay to sell. If their need to sell is great enough, they write a check at closing.
  • Don’t let fear stop you. No one knows what they’re doing at first, in any job, but surround yourself with people who do know the business so you always have somewhere to turn for answers.
  • Always be a resource for the seller. Most sellers need help. Offer it to them. You are forming relationships that will lead to great referrals. Be willing to help, even if you aren’t the one they sell to.

Do you have a story you’d like to share here? We’d love to hear it!

All About Mortgage House

Although, owning a home – of – one’s own, is often, considered, an essential component, of the so – called, American dream, unless/ until, someone, prepares, effectively, and has the financial necessities of affording to do so, this dream, is quite challenging to achieve! The vast majority of Americans, especially, first – time, home buyers, must utilize a mortgage, as a key part of being able to afford, to buy, one of the stumbling blocks is often, preparing, in advance, to do, everything needed and necessary, to qualify, for the best possible financing options. With that in mind, this article will attempt to briefly review, examine, consider, and discuss, 6 major considerations/ actions, for qualifying for a mortgage.

1. Overall Credit Rating, and Score: The higher one’s credit rating, and score, the better, the chance of securing the best possible form of financing. Wise home shoppers, begin the process, at least six months, before they start their hunt/ search, and secure a copy of this report, from the major bureaus. Do so yourself, or if, needed, use a professional’s help and guidance. Correct errors, fix them, and begin reducing your debt. In this period, avoid taking out, and/ or using any additional debt!

2. Total verifiable income: How much income (verified), can you show, and prove? Know how much mortgage, you qualify for, by discussing it, well, in advance, with a Mortgage Professional!

3. Debt, other than mortgage debt: Lending institutions, use a formula, which factors in your overall debt, and your mortgage loan, will be impacted, by this percentage. It is a wise idea, to begin paying – down, the balances on your credit cards, and other personal loans, etc.

4. Combined/ total debt: In addition to the formula for overall debt, there is another percentage, lenders use, to guide them, to the maximum amount of mortgage, they will offer. This is based on a percentage of your monthly income, related to the mortgage installment. An educated consumer, is best prepared!

5. Know how much you qualify for: After correcting issues, paying – down debts, etc, have a confidential discussion, with a mortgage professional. Begin your search, by knowing how much, you will qualify for, so you don’t waste a lot of time and energy, looking at houses, you can’t afford!

6. Appraisal value: The next step, is to realize, the house, you are seeking, and want to purchase, must Comp – out! This means, it must appraise, at what you are paying for it, because the bank will only loan, an amount based on their appraised value!

The home – buying process, can, either be stressful, or, far, less so, often depending upon, one’s level of preparation, etc. Be a smart buyer!

 

Things Should Be Prepared Before Own A House

Since, for most of us, our house, represents, our single – biggest, financial asset, wouldn’t it make sense, to do, all we possibly might, to ensure, we do so wisely, and in a prepared, informed manner? Wise home buyers, proceed, in a cautious, well – prepared way, and balance their emotions, and logical components, in order, to best determine, what makes sense for them. While each individual, has, specific needs, requirements, and objectives, each should commit to wisely, proceeding, through the process. This should begin with effectively preparing, prior to even, beginning the house – hunting, search. With that in mind, this article will attempt to briefly consider, review, and discuss, 6 keys, to preparing to buy a house.

1. Reduce debt – Pay down, or off: Begin your planning, at least, 6 months, prior to beginning your search! Do everything possible, to pay – down, your overall debts, and attempt to eliminate, as much as possible. Since most use a mortgage, to pay for a house, it’s important, to enhance your credit, and overall debt, is a major consideration, for most lending institution!

2. Do not add, new debt: How many times, have you shopped, in a store, and been offered, a discount, if you open a store charge? This small, immediate savings, often, ends up, having longer – term, less – desirable ramifications, when it comes to applying for mortgages.

3. Put together funding: At least 6 months, in advance, begin putting together the necessary funding, you will need, for a down – payment, closing costs, and reserves. Smart home buyers realize, it is wise, to put together, the equivalent of at least, 6 – 9 months, reserves, in order to make the overall process, the least stressful, reduce hassle, and enhance your enjoyment, of owning a home, of your own.

4. Know, recognize, address, fix, and improve your credit: Begin by getting a copy of your Credit Report, from all 3 major Credit Reporting Agencies. Review each one, thoroughly, carefully, and completely, and address any areas, which might bring forth questions, and/ or obstacle, in terms of qualifying for your loan. If you feel, you can’t do so, yourself, it is wise, to hire a professional, recommended, experienced individual, to help you do so.

5. Know your comfort zone: It will take a considerable amount of your capital, to put down, as a down – payment, etc. Will you be comfortable, reducing your available cash, etc? How about the monthly payments, as well as necessary reserves, for repairs, renovations, and maintenance? Objectively, introspectively, examine and consider, your personal comfort zone! Don’t become house – poor, by putting too much, into this investment! Do what’s best for you!

6. Avoid the money – trap, or eliminating your comfort zone: Have your prospective home, professionally inspected, and recognize, what your present and future needs, might be, and whether, the particular house, will be a good – fit!

An educated, prepared, home buyer, becomes the happiest homeowner. Will you proceed wisely and patiently?

 

Factors That Impact Home Buying

Most people consider, owning a home, of their own, to be a meaningful component, of the so – called, American Dream, but, in order to ensure, dreams do not become nightmares, it’s important to proceed, with insight, well – prepared, and doing all they can, to make the best decision, for their needs and requirements. Since, for most of us, our house’s value, represents our single – biggest, financial asset, doesn’t it make sense, to prepare properly, and proceed, in the best possible manner. This article will, therefore, attempt to briefly consider, review, examine, and discuss, 4 factors, which might, often, impact home buying.

1. Supply: When the supply, of house’s available, on the real estate market, exceeds the demand, we have a Buyers Market, which generally, lowers selling prices, and helps buyers, purchase more house, for less money! The economic theory of Supply and Demand, is extraordinarily, relevant, when it comes to real estate, and often, fluctuates, considerably, from time – to – time. Sometimes, this occurs, gradually, over a period of time, while at other times, it changes, dramatically, rather quickly. This is why, one must carefully evaluate and consider, pricing, not, merely, in terms of what has been, or what is, but also, what might be!

2. Demand: When the demand for houses, exceeds the supply, it creates a Sellers Market, For the past couple of years, we have been experiencing that type of market. Many factors effect this, including competition, job market, overall economy, public perceptions and comfort zone, and the specific, local market. We must all beware, and prepare, for factors which might impact real estate and the housing market, including the capping of so – called, SALT deductions, as well as rising mortgage interest rates.

3. Perceptions: Buyer and seller perceptions, are, often, quite different, The best thing for a homeowner, to do, is, go, to, some Open Houses, in the neighborhood, in order to get a better idea of the competition. Many owners over- value their house, while most buyers, seek the best possible price. In addition, perceptions of the overall economy, trends, etc, have a significant influence!

4. Financial considerations: Many financial considerations, are relevant to this discussion. This may include: the overall economy; the specific, local, one; mortgage rates and trends; real estate taxes; the employment/ job markets, etc.

Pay attention to these 4 factors, which impact the home – buying, process. The more prepared, the better, for the home – buyer!

 

Economics Factor You Should Consider Before Buying Home

While most potential home buyers, recognize, they need, to save for a down – payment, be prepared for repairs, etc, and afford the monthly costs of home ownership, many, either, ignore, fail to understand, or don’t consider, some of the other, relevant, economic considerations, for whether one, would benefit, by owning a home, of their own. Especially, when it comes to first – time, homeowners, the more they understand, and consider, the wiser, their decision – making process, might be. With that in mind, this article will attempt to briefly, review, consider, and discuss, 5 relevant, significant, economic considerations, for buying a house.

1. Tax deductions: Although, for many, especially, those in, so – called, high SALT states/ regions, the tax deductions, associated with home ownership, are less than they have traditionally been, there is still an, up – to $10,000 tax deduction, on one’s federal tax return, for the state and local taxes, we pay, Therefore, when we consider, whether, there are advantages, to buying, instead of renting, this must be factored in. If the net – numbers, of renting, versus, owning, are compared, and if they are close, home ownership often becomes more economically, advantageous, because of the appreciation, and equity, involved, in owning.

2. Mortgage/ mortgage interest: Mortgage interest, up to that paid, on a $1 million mortgage, is still, tax – deductible, so, when one considers, if it makes sense, for him to purchase, this must also be considered. In addition, a wise consumer considers, whether his monthly costs, are within their personal comfort zone, and strengthens, their enjoyment, etc.

3. Local real estate market: While there is, often, much discussion, about the overall, real estate market, every local area, is different, and certain ones, appreciate more, and/ or, depreciate, less, than other areas/ regions/ neighborhoods! One should, carefully, consider, whether, the location of the particular property, is one, which meets your needs, and priorities, desires, before buying, because, unlike renting, purchasing a home, requires far more commitment, than renting, does.

4. Competitive Market Analysis (CMA): Never purchase a house, unless you check, whether it’s worth, at least, what you pay for it! To do so, the best approach, is to have a professional, real estate agent, prepare a fully – considered, relevant, Competitive Market Analysis, or CMA.

5. Will the assessment match – up, with the price paid?: You won’t get the mortgage, needed, and required, until/ unless, the particular property, assesses, for the amount, you are paying! Mortgage lenders will only provide mortgages, based on the assessed value, not, on what you are paying, so if this property, is not valued, as high as you are willing to pay, you will need, to put down, a larger down – payment, to make up, the difference. Will you have the additional amount of reserves and resources, needed?

Wise buyers review many relevant factors, and these 5 economic considerations, must be considered carefully. Will you be a smart home buyer?

 

Signs That Determine Real Estate Market

Many, often wonder, why, it is often, so challenging, to understand, predict, etc, many of the variables, involved, when it comes to the real estate market. Why are prices, so high, or low, or a buyers market, or sellers market? Why do some houses, sell, very quickly, while others, remain, unsold, for a seemingly, long period? What makes pricing fluctuate, etc? With that, and more, in mind, this article will attempt to briefly consider, review, and discuss, 6 factors, which often, determine, how the real estate markets, might perform, etc.

1. Supply and demand: Like so many economic issues and considerations, supply, and demand, often, is a major factor, in the performance of the housing market. When there are more buyers than sellers, we call this, a sellers market. When the scenario is reversed, it’s a buyers market. When there is balance between those seeking to buy, and sell, conditions are neutral. Many factors and considerations, go into, what market conditions, might be, including the overall economy, mortgage rates, tax laws, employment/ jobs, etc.

2. Economic strength/ employment: When potential homeowners feel comfortable and secure, in terms of their employment, presently, and for the foreseeable future, they proceed, with a mindset, which focuses on the possibilities!

3. Consumer confidence: The more, consumers exhibit confidence, in the overall strength and stability of various factors in the economy, and the more convinced, ownership has advantages over renting, etc, the stronger the possibilities for housing and real estate pricing. Relevant factors include: mortgage rate trends; tax considerations; the attractiveness of certain neighborhoods, areas, and homes, etc; and the overall national and international economies, and the balance between positive and negative factors/ trends.

4. Mortgage interest rates: When mortgage interest rates are low, the corresponding monthly carrying charges/ expenses, are reduced, This means one can buy, more house, and be able to afford the costs. When rates are higher, monthly costs rise, and, this is generally, a negative factor, in terms of rising prices!

5. Tax considerations: The tax reform legislation, passed at the end of 2017, places caps, on the amount of real estate taxes, which are deductible. Therefore, homes in states, with higher state and local taxes, are somewhat, at – risk, in terms of maintaining their value, because this, significantly increases the costs of home ownership!

6. Real estate, often, is local: There is a slogan, All real estate is local, which means, every local housing market, is different and variable! Avoid believing, what happens elsewhere, is directly related to your specific region.

An educated homeowner is beware, and prepared! The more one knows, and understands, the better all are served!

 

Place To Look For Minimizing Air Leak

If you wouldn’t purposely, throw money down the toilet, or out the window, why do so many homeowners, take the time and effort, to make their home, more energy – efficient, or, at least, less wasteful? The simplest, easiest, and least costly way, to achieve positive, relevant, realistic objectives, and thus, save money, and increase the level of comfort, within a house, is to locate, and then, minimize, air leaks. With that in mind, this article will attempt to briefly consider, examine, and discuss, 5 relatively simple places to start, and somewhat easy fixes.

1. Windows: Begin your review and examination, where a large amount of air leaks, and often, can be addressed! In many houses, energy, literally, is thrown, out the windows, because, either they are inefficient windows, or ineffectively sealed and installed. In the late 1970’s, President Jimmy Carter, recognized how wasteful this was, and enacted, tax credits, to encourage homeowners, to upgrade to better, more energy – efficient windows. If a house has older windows, it might make sense to address this, and replace them, because the Return on Investment (ROI) make sense, in most cases. In addition, testing, and identifying areas, where there are leaks, should be addressed and corrected.

2. Doors: Leaky doors, are often, the second leading cause of energy wastes! Some doors are made of a material, which makes things worse, but, in many cases, it’s simply a matter of putting an inexpensive, sweep, on the bottom of the door, to stop air from flowing underneath it. Also, it’s wise to check if it’s properly installed and/ or hung, so excessive waste, does not occur, from the sides!

3. Attic/ roof: How well insulated, is your attic, and roof, areas? Adding a better insulation, or, sometimes, putting insulation, where none presently exists, saves a significant amount, at a relatively little cost!

4. Behind outlets: One of the most overlooked areas, where there is significant waste, is behind outlets. This can easily, and inexpensively, be addressed, by putting a simple, strip, which can be purchased at most hardware stores, and there is, potentially, a huge savings!

5. Exterior wall: Check the exterior walls, simply, by putting your hands on these, and feeling, temperature changes, and whether the walls, feel cold, in winter, and warm, in summer. Installing insulation behind these, helps, quite a bit!

A wise homeowner, is a proactive one! Pay attention to ways, you might, inexpensively, make certain tweaks and changes, which will save money and energy!