Money Matter-Real Estate Tips For Buyers And Sellers

Are you thinking about buying or selling a home? Starting and operating a small business of your own? Maybe you need a little help with personal motivation or computer technology… If so, you may find this column useful over time because we will be discussing ways you can save time and money, protect your legal and financial interests and deal on a more level playing field with industry operatives to help you avoid costly mistakes made by so many people. Let’s face it, it’s a complex world out there and either you operate from a position of knowledge and insight or from guesswork and blind trust. Money Matters is designed to help remove the blinders. Knowledge is power right? We believe applied knowledge is powerful.

To jump-start this column we decided to throw out a few tips for homebuyers and sellers before the real estate season begins. You may want to clip this article and tuck it away for safekeeping. Buying or selling a home is the largest investment of a lifetime for most people…it’s a BIG business deal composed of people, emotions, contracts and cash…all the ingredients for legal and financial pain if you don’t know what you are doing (and most people don’t).

1. Buyers: real estate agents legally represent sellers, NOT buyers…their job is to get the highest possible price for the property. They are not “your agent” and what you tell them may be used against you. Caveat Emptor is legal jargon meaning “buyer beware”…

2. Buyers: avoid giving more than $100.00 when you write a purchase offer on a home. In this way, if you cannot complete a transaction you have less money at risk. Large good faith deposits do NOT guarantee you will get financing. Why risk your money?

3. Buyers: arrange your home financing first, BEFORE you look for a home. Doing so gives you the same power as a cash-buyer You can use your financial pre-qualification to SAVE THOUSANDS when buying a home if you are a smart negotiator.

4. Buyers: when you sign a purchase offer, make sure that you write above your signature the clause “subject to buyer’s attorney’s approval”. These 5-magic words (known as a weasel clause) can get you out of a bad deal if your attorney does not approve… you can (weasel) out of a bad deal…

5. Buyers: remember; a purchase offer becomes a legally binding contract when accepted by the seller. Fully understand the legal details before signing ANY contract or document.

6. Sellers: avoid signing long-term listing agreements with any real estate agent. Keep the listing contracts limited to 90-day increments so that you can review selling performance.

7. Sellers: Avoid signing a listing agreement with part time agents. Use only full time agents so that you increase your chances for more professional representation.

8. Sellers: Interview multiple agents before signing a listing contract. Make sure the “potential selling prices” they are quoting you are accurate. Many agents will quote high selling prices just to get the listing contract. There is a saying in the real estate business “if you don’t list, you don’t last”…many agents will do and say most anything to get you to sign a long term listing contract. (See tip-6)

9. Sellers: avoid signing purchase offers with unqualified buyers. Doing so removes your property from the market while waiting to find out you are dealing with a dud.

10. Sellers: Make sure your agent presents you with an itemized marketing plan detailing the selling activities that will be performed during the listing agreement.

5 Hot Tips for Successful Real Estate Investment

The last downturn of the global stock market saw millions of ‘every day’ investors having their fingers badly burned. Overnight life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy to say the very least.

As a direct result investors in their thousands turned their backs on the rollercoaster stock markets and sought alternative asset classes in which to invest their hard earned money. This has led to a global boom in real estate markets and property prices, and it has spawned a generation of budding real estate investors.

For those of you wondering whether it’s too late to venture into real estate investing or considering how best to make the most significant returns from property investment, here are 5 hot tips for successful real estate investment to set you on the path to potential profits!

1) Consider Investment Property Abroad

There are many relatively untapped property markets in countries around the world that offer the real estate investor greater return on investment in the form of rental yields or short to medium term capital growth.

While major markets in the USA, UK, Australia and Europe are slowing down, there are emerging property markets globally that are hungry for investment and are proving to be highly profitable.

For example, in 2007 a number of countries are already aligned for accession into the European Union and as a result property markets in these countries are likely to benefit from greater numbers of visitors, more trade, increased investment into infrastructure and more stable economies. The likes of Hungary, Slovakia, Bulgaria, Croatia, Turkey and even Northern Cyprus are just a few examples of overseas destinations with emerging real estate markets that may be worthy of your consideration.

2) Make Sure Your Plans Are Profitable

This sounds ridiculously simple right? Well, you’d be surprised how few people actually make sure their plans are actually sustainable and as profitable as they hope.

Examine any real estate market that you’re about to enter by firstly comparing property values across the city, state or region and making sure you know what your money will buy you. Then ensure that the rental yield you intend to obtain from your property is actually realistic or that the asking price you intend to set once you’ve renovated the property will be offered.

3) Never Assume Anything

This goes from assuming a house is structurally sound to accepting that tax laws won’t change – from believing your tenants when they tell you that they are house proud and honest to accepting the first builder’s quotation!

Do your due diligence on every single aspect of the process from ensuring the asking price for a property is fair to checking your tax returns before your accountant submits them for you. This is your investment, your future, your potential profit and therefore it is ultimately your responsibility.

4) Employ An Expert When In Doubt

Few people are a master of all trades therefore be prepared to acknowledge areas where you are far from being an expert and at least consider courting a second opinion. Again, this goes from checking out the structural soundness of a property to understanding the legal ramifications of letting out your property. If in doubt always double check – and if this means you have to call in an expert, make sure you call in an expert!

5) Set A Realistic Budget And Stick To It

Whether you’re purchasing property to let out or buying real estate to renovate you need to sit down and add up every single area of projected expenditure to enable you to set a realistic budget with which to work.

Make sure you add in everything from having searches and surveys conducted, legal fees, accountancy fees, insurance costs, likely interest payments on any finance required, taxation, connection of utilities, marketing for tenants or buyers, real estate agency fees, and of course don’t forget to add on the cost of the property and the price of any renovation and refurnishing and decorating work required.

Spend time considering every single area where a cost will be incurred and detail every likely payment that will have to be made and you will arm yourself with a bullet proof budget and do all you can to ensure you encounter no nasty surprises along the way.

7 Tips to Real Estate Agents' Success

With over 2 million real estate agents according to the National Association of Realtors (NAR), becoming a successful real estate agent takes more than just a license and a knowledge of current laws and regulations.The first year drop out range estimated to be from 40% to 80% demonstrates that many real estate agents are not as successful as they could be and research suggests that 90% give up after 3 years. The following 7 tips may help you avoid becoming one of these statistics.

1. First and Foremost YOU are a business. Real estate agents work for a broker, but are independent, commissioned sales people. This means that you are a small business and must run your practice as a business. Again, remember you are a small business owner.
2. Embrace a Planning Attitude If you don't have a plan, then you are on some else's plan - usually the successful real estate agent's. During the last 10 years, what I have learned as a performance improvement consultant or coach is that most people place more value in planning a trip to the grocery store or a vacation than planning their lives either professionally or personally.
3. Research Your Market Plan Since you, as the real estate agent, are responsible for your own expenses, do your research specific to your marketing plan within your strategic plan. Time spent in constructing your marketing plan is definitely well spent. NOTE: Remember a business plan usually is data driven, while a strategic plan identifies who does what by when.
4. Establish Sales Goals Using your strategic plan, establish sales goals. If you are new to this industry, it may take 6 months before the first sale. HINT: Use the W.H.Y. S.M.A.R.T. criteria for goal setting.
5. Create a Financial Budget Budgeting is critical given the up and down of this volatile market place. Your financial budget should plan for your marketing costs, any additional costs such as education and your forecasted income.
6. Make Managing Yourself a Priority Building a business is not easy. You must learn how to manage yourself especially in the area of time management, ongoing real estate business training coaching, continuing education units, and personal life balance. Real estate is said to be a 24/7 business much like any small business. However, it is important not to lose sight of your personal life including family, friends, physical health, etc.
7. Find a Mentor or a Real Estate Coach Going it alone is not easy. Take the time to find a mentor who can help you steer through some of the known obstacles and help you during the "peaks and valleys." If you have the resources, you may wish to hire a real estate coach or an executive coach who specializes in small business help and sales.

Being an incredible sales person and entering the real estate market does not guarantee similar sales success. However, these 7 tips may help you avoid many of the pitfalls by not being one of the four real estate agents who quit within one year or one of the nine who give up after 3 years.

Century 21 Real Estate - Tips For Buying Bank Owned Foreclosures From Realtors

Century 21 Real Estate is a worldwide organization offering residential and commercial real estate. Century 21 Realtors are independent agents who either own a franchise office or work as a representative for the franchise owner. With the abundance of foreclosure properties, many Century 21 Realtors now specialize in bank owned foreclosure properties. This type of real estate transaction requires specific knowledge and skills in order to produce successful transactions.

Many Century 21 Real Estate websites publish bank owned foreclosures directly on their website. Details of distressed properties include property location, square footage, amenities, asking price and the name of the agent in charge of the foreclosed property.

There is considerable difference between bank-owned foreclosures and foreclosure properties sold through auctions. Bank foreclosures are oftentimes referred to as real estate owned (REO) properties. When properties are not sold through foreclosure auctions they are returned to the bank. When the bank takes possession of the property, the mortgage note becomes void and the bank can sell the property for the price they desire.

Foreclosure properties sold at auction are notorious for having creditor and tax liens attached to them. When individuals purchase auction foreclosures they are responsible for paying off these liens before they can take possession of the property. However, when the bank takes possession of the property, they negotiate with involved parties to have the liens removed or reduced.

Another common issue with purchasing foreclosure homes through auctions is the buyer will be responsible for evicting individuals still residing in the home. When buying bank owned foreclosures, the bank initiates eviction proceedings and the previous owner (or tenants) will be evicted before the property is placed on the market. Therefore, bank owned foreclosure properties are generally less stressful to deal with.

Buyers interested in purchasing bank foreclosures listed through Century 21 Realtors are required to adhere to certain financial arrangements. Typically, the buyer is required to obtain pre-approved financing and provide proof of funds at the time of their initial offer.

Many real estate owned foreclosures sold through Century 21 Real Estate are sold "as-is." The buyer has the right to obtain a professional real estate appraisal prior to closing the deal. Should the appraisal expose significant problems with the property, the buyer will be given the opportunity to renegotiate their offer.

Two noteworthy benefits of purchasing bank owned foreclosure properties through Century 21 Real Estate include the properties are free of liens and no buyer premiums or commissions are paid by the buyer.

Many Century 21 real estate agents specialize in working with private real estate investors interested in purchasing distressed bank owned real estate. Other Century 21 Realtors specialize in working with banks and asset companies who have multiple foreclosure properties for sale.

Additionally, several Century 21 real estate agents offer numerous real estate services including listing and selling bank-owned properties, maintenance and security of distressed properties, eviction proceedings, interior and exterior clean-up, and maintaining utilities while the property is up for sale.

Bank owned foreclosures are nearly always sold close to market value. If multiple repairs and renovations are required, REO properties can end up costing more money than they are worth. Therefore, it's crucial to conduct due diligence and ensure the property is a wise investment.

When investing in bank owned real estate, keep in mind many people will need to be compensated for their time. The bank wants to recoup their investment price and the Century 21 real estate agent needs to be compensated for their efforts.

One way to avoid the middleman is to seek out private real estate investors who purchase bank portfolios. By buying in bulk, investors can purchase distressed properties at wholesale prices and pass their savings along to you. It's not uncommon to purchase bank foreclosures from private investors for as low as seventy cents on the dollar.

5 Proven Real Estate Tips to Succeeding at Fixer Uppers

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Now that you're a bit more familiar with the dynamics of investing in fixer uppers, you are probably itching to make your dreams a reality. Well, Congratulations on getting closer to your goals. In this brief article, we will provide you with not one but 5 real estate tips to succeeding at fixer uppers that you can use right now to skyrocket your fixer upper profits. Are you ready? Well, let's get started.

First of all, you must have a realistic goals and a written plan to succeed with fixer uppers. By having set goals and a written plan, you will be better able to achieve your success. For instance, it isn't just enough to say that you want to own some fixer upper properties within 5 years, you must be more specific. For instance, you have to say, "I want to purchase 5 fixer upper houses in the next five year by working a part time gardening business and reinvesting all of my profits into my real estate venture. I will purchase my first fixer upper property within 1 year and 4 more properties each year thereafter."

Second, you must put in the necessary education. Although investing in fixer uppers isn't exactly difficult, it does take a bit of knowledge about finances, real estate properties, current market conditions, real estate selling and closing prices, etc. In addition, you must be familiar with the various different types of fixer upper properties you can own as well as financing options.

Third, you have to stay focused on your goals. Yes, you will experience some temporary setbacks while investing in fixer uppers and you will have to put forth a bit of effort to make your real estate dream come true but you can do it if you stay focused on your future, use proven tips from other fixer upper experts and execute your plan. Once you do this, you will succeed in your fixer upper investment efforts.

Fourth, you have to find the fixer upper investing approach that works for you and be persistent with that particular method. For instance, if you're an expert rehabber then you might find that you enjoy purchasing fixer upper properties that need a bit of work and then flipping then. However, if your goal is to secure monthly income from your fixer upper properties then purchasing a small apartment or house in need of repair, fixing it and then renting out, might be your better option.

Fifth, surround yourself with positive people and develop a fixer upper investing team. This way, you'll be able to capitalize on everyone's strengths to maximize your profits. For instance, you'll need a fixer upper renovation team, mortgage or bank broker, real estate agent, etc.

In conclusion, investing in fixer uppers can be extremely fun and exciting. However, if you truly want to be a successful fixer upper investor, you must have an individualized plan, set and stay focused on your goals, find and implement a real estate investment approach that works for you and secure a good team. Once you do this, you will become a successful fixer upper investor and can make your real estate dreams come true. Good luck!

Finding Good Real Estate Property Management Teams

There are many persons who have more than one villa. While they stay in one of them the other one remains unoccupied. However, the smart ones do lease out the same. This is a good decision. Over a period of time there are bound to be wear and tears in the villa and these need to be repaired by the owner. Apart from that there are the annual taxes which one has to pay to the government regardless of whether the villa is occupied or not. The money one can earn by leasing out their villa depends on the type of real estate property management that has been put into place in the villa by the management.

There are many people who want to save money and look after their villa all by themselves, but it is no mean task and generally requires more than one person to look after the same, especially if the size of the villa is big enough. There are different areas as far as taking care of the villa is concerned and these areas need to be taken care of by different people. If the owner has more than one villa then the problem gets compounded and it becomes a must to put a real estate property management arrangement in place.

The experienced professionals who are required to take care of real estate property management are varied and they include the onsite administrator who looks after the particular site. There is the leasing administrator who looks after the lease papers of the villa in question. There has to be one person who represents the persons who have taken lease of the villa and there is the administrator who looks after the portfolios of the different villas owned by the owner. All of these professional have to do their task properly to ensure that things run smoothly in the villa and theta the persons who have leased the same do not face any problems.

The most important person in the real estate property management scenario is the estate manager and it his task to look after the day-to-day happenings of the villa. Generally these people are provided with a room in the villa where they can reside. This makes sense and saves a lot of commuting time. If the estate manager had to stay somewhere else, a lot of time would be wasted for him to come to the site and then return back to his abode. On top of that if there is any emergency at the dead of night, there would be nobody to take care of the same. This person has to interact with the owner of the villa and between the persons who have taken lease of the same. Apart from this he is also responsible for taking the monthly frees from the persons who have taken lease of the villa. He also has to look after the routine maintenance jobs too.

Selecting a good real estate property management team makes all the difference between earning money from your villa or losing out money on the same. If one of the persons who has leased out your villa decides to leave, the team will ensure that within a few days the empty room is leased out to someone else so that there is no loss for the owner of the property.

Real Estate Management Service Specialist

Few people know the value of real estate management services and how they help you by looking after your property and taking all your tensions onto themselves. You are a shrewd operator and know all the tricks of the financial market. Over a long period of time you have been surveying the market and searching for avenues where you could invest your extra cash. Being a successful businessman and one who lives a planned lifestyle, there is a sufficient amount of unused money being generated each month. Banks and other financial institutions do not offer a healthy rate of interest and the stock markets is going through such a period that it in not worthwhile to invest in the same and you were never into speculation, being the wise person you are. After checking out all the pros and cons you have purchased property and are planning to lease it out for short periods of time. In this manner you can raise the monthly fees as and when there in inflation in the market.

There is one hitch though. You just do not have enough spare time to look after the property and its day to day activities. You are well versed in these things and know that taking care of leased villas requires the presence of someone at the property itself. The person or organization that will be taking care of your property will have to stay there itself, since his services might be required at any time. After all a short fuse or a leaking pipe does not give any advance notice and might well occur at midnight itself. If water starts dropping in the bedroom of the occupants they would like the same to be fixed immediately. Personnel from the real estate management services are capable of handling all these problems and more.

The specialists from the real estate management services will charge you a small sum of money for their services and that amount depends on the size of the villa and also upon the number of villas they have to tend to. Generally this works out between 4 to 12 percent of the amount you are receiving each month from the occupants. If you work out all the pros and cons and take into consideration the time that these specialists put in, you will observe that it is quite cheap. You are a financial wizard and know very well how much you can earn per hour. Assuming that you might have been able to resolve all the problems by sparing one hour for your villa daily, calculate the amount per month and you will be amazed at how cheap it is to invest in real estate management services.

There are certain other things that you can never do by yourself. You might be a financial wizard but that does not mean that you know all the laws pertaining to your property. When you lease out the same to someone else, agreement papers have to be made and in such situations only those who are well versed in this field can help. Apart from that, does it suit your image to go and collect the monthly dues from the occupants of your villa? Just hand over the task to the specialists from real estate management services and just count the money you receive at the end of each month and plan how to better utilize the same.

How Quick Turn Real Estate Can Make You Rich - The Art and Science of 'Rehab and Retail'

A quick turn real estate business helps you make money fast...and without a lot of headaches. You can work from home, work part time, and even get started in real estate investing without a big chunk of upfront capital. No wonder quick turn real estate is one of the fastest growing segments in the real estate investing arena.

Generally speaking, there are five ways you can profit from quick turn real estate transaction strategies. In this article, I want to tell you about one of them. It's a basic of real estate investing, and it's commonly referred to as "rehab and retail."

In quick turn real estate, when you buy a house at a low cost and sell it for a higher amount, it's called retailing. You purchase a house 'wholesale,' perhaps do some modest repairs, and then sell it for a profit. What kinds of profits are we taking about in quick turn real estate? How much you earn will depend on whether you're working full or part-time and on how many houses you sell. The average profit per sale is $20,000 to $35,000. In real estate investing...those are good numbers!

In this regard, real estate investing is similar to any business where you mark up the price of an item before offering it for sale. And just like any other business, it can fail.

As well as being one of the most popular ways to profit from quick turn real estate, rehab and retail is also one of the most profitable. Yet despite the money that can be made this way, rehab-and-retail continues to be one of the most misunderstood techniques in real estate investing. Although the process sounds simple - buy, repair, sell - the reality of rehab and retail transactions is quite different. There are many costly problems that can arise with rehab and retail, especially during the repair process. For this reason, I recommend that novice investors choose another quick turn real estate investment strategy.

Does that mean I'm saying that your real estate investing business should never focus on rehab and retail? Not at all. In fact, if you really enjoy home renovation and really get a kick out transforming a fixer-upper into a 'castle,' then you may be very well suited to the demands of rehab and retail.

If that's the direction you'd like to go in, let me offer you these

Top 4 Tips For Doing Well with Rehab and Retail Transactions

Location, Location, Location - Limit your purchases to areas where qualified buyers will want to live. No matter how well you renovate, it's going to be tough to sell a home in a high crime area. Why take unnecessary risks? Stick to better neighborhoods for your real estate investing.

Assume Nothing - Under no circumstances (that means NEVER) close on a property until you have had it appraised and assessed by professionals (contractors, service people, etc.) so that you know what repairs are required, what those repairs will cost, and what the home will be worth (repaired value) when the work is complete.

Expect the Unexpected - Inevitably, home repairs will take longer and cost more than anticipated. It's one of the biggest downsides of this quick turn real estate strategy. Be sure to borrow enough to cover more than just the purchase price and the estimated repair costs to give yourself a 'cash reserve' to fall back on.

Trust No One - I know this sounds harsh, but contractors, on site workers, and others involved in home renovation are notorious for bad business practices. Get recommendations from people you know, if possible. Supervise the work and keep a close eye on progress and the bottom line.

Real Estate 101 - Avoiding Foreclosure

Foreclosure rates have been skyrocketing across the country over the last year and a half. Although the reasons for foreclosure are varied, the most common reason is the type of loan on the property. Many homeowners made a bad financial decision and choose to take an Arm loan (adjustable rate mortgages) instead of a traditional 30 year fixed rate mortgage. The initial interest rates on these loans are lower than a standard mortgage for the first few years, after which the interest rate skyrockets. Monthly payments of $1,200 quickly jump to $1,600 or more in a matter of months. Of course, some homeowners had planned on refinancing their homes before the mortgage ever adjusted. Unfortunately, for many homeowners the market took a downward turn and they found themselves unable to get new financing because their homes were worth less than the original purchase price. Investors and regular homeowners alike could simply not longer afford to make their monthly mortgage payments. While the most common reason for foreclosure, it isn't the only one. Other reasons causing foreclosure proceedings include loss of employment, divorce and health issues resulting in loss of income or large medical expenses.

Foreclosure rates have reached epidemic proportions in some states. Many homeowners don't know where to turn or what to do when they start falling behind on their mortgage and most realize there are alternatives available. For this reason, some states have set up free resources to help homeowners who are facing foreclosure. There are also several non-profit groups that will offer free help to homeowners. Homeowners should be wary of any individual or company that charges a fee to help them. Typically they are charging for something that could be gained without charge.

Stopping Foreclosure

There are ways to stop foreclosure proceedings and save your home. It takes a lot of work, persistence and some sacrifices. Depending on your circumstances, your mortgage company may be willing to work with you to avoid foreclosing on your home. For example, if you suddenly lost your job but have good prospects on getting gainful employment in a relatively short time period, your mortgage company may decide to allow you to make up the payments over a period of months by adding in an additional payment to catch up on the payments you missed. There are other options as well, like forbearance. While not a common occurrence, it can be done. In essence your mortgage holder agrees to reduce or even suspend the monthly payments for an agreed on amount of time. The agreement is formal, usually done in writing. After the time period has expired, you would resume making the normal monthly mortgage payments and an additional payment to catch up the loan until it is current. In cases where the homeowner can't afford the payment but could make a smaller one, the mortgage holder may opt to modify the terms of the loan. While extremely rare, the mortgage holder can opt to reduce the interest rate of the mortgage or convert it to another type of loan with a more affordable payment. Of course, there are many, many factors that the mortgage company has to take into consideration before doing something as radical as a modifying the loan. A lot depends on the mortgage company itself, some are definitely more consumer friendly that others. The biggest considerations will be the amount of equity (if any) in the property along with the ability of the homeowner to make the payments on the new loan. There will also be other mitigating circumstances that may effect the mortgage company's decision to grant a modification.

Selling the Home before Foreclosure

There is a last ditch effort to avoid foreclosure if there is simply no way you can afford the mortgage payments any longer---selling the property through a short sale. What is a short sale? In essence a short sale is where the property owner owes more than the current market value of the property and sells the property before it is foreclosed on with the permission and approval of the mortgage holder. Short sales have popped up all over the country, especially in California, Arizona and Nevada (the Las Vegas and Phoenix real estate markets have been particularly hard hit). There are some road blocks to a short sale. Before the property can even be put up for sale, the short sale must be approved by the mortgage company. Consequently, any offers made on the home must also be approved by the bank before the house can be sold, which is why it is extremely important that property owner use an agent that specializes in short sales (with documentation to back it up). Short sales are a lot more complicated and typically take several weeks longer to complete than a regular home sale. There are some catches. Depending on the homeowner's state legislation, even after the property has been sold they may be liable for the difference.

Things you need to do

If you are running behind on your payments, the most important thing to do is to talk to your mortgage company. Don't wait until you are almost 90 days past due to talk to them. With the state of the housing market across the country, most mortgage companies are scrambling. With so many foreclosures taking place, companies are more likely to try to avoid foreclosing on a property if possible. Talk to your mortgage company and be honest with them. Document your discussions and get all agreements in writing. Also, be wary of any individuals or companies that wish to help you for a fee. There are lots of free resources out there. Some states have setup foreclosure help hotlines and there are several non-profit organizations out there that can help distressed homeowners. Foreclosure scams are on the rise and scammers are targeting distressed properties. Be cautious and smart, thoroughly check out anyone that is offering to help you and don't be afraid to seek legal counsel.