Make Money Today In Real Estate

The real estate bubble may have burst, but the fact remains that real estate is still an attractive investment.  You just have to be able to look at the advantages that are presented in the down economy.
Some say that the real estate market is in a depression.  Others call it a recession.  Others are in complete denial.   The third parties are usually those in politics or real estate agents.  Anyone who is trying to sell a home knows it is bad out there.  But the good news is that as bad as it is for sellers, it is a great market for buyers.
Anyone who has money to invest should invest part of it in real estate.  The reason for this is threefold:  The interest rates are rock bottom and not likely to get any lower, the housing prices are lower than ever and the market will eventually rebound.  You can still make money today in real estate, you just have to look at the property as a long term investment instead of the quick buck.
The days of flipping real estate properties that are accumulating so fast in value that you cannot keep up with them are gone for now.  They will most likely return, but not for a while.  Now you have to work with what you have which is a real estate market in which there are a lot more sellers than buyers.  This puts the buyer in the drivers seat.
Along with the fact that it is a buyers market, you can also work with the fact that the mortgage rates are lower than ever.  So you have an opportunity to buy low because the market is saturated with homes for sale and not enough buyers as well as an opportunity to get a good loan package because the rates are low and lenders are dying to make loans so that they can stay in business.
If you have money to spend on real estate, you are in a great situation today in the real estate market.  Look at the real estate investment as a long term investment instead of a short, get rich quick scheme.  You can make money when the bubble begins to grow again, and it will.  The real estate market goes up and down like the stock market.  It will rebound.
You can make money today in real estate but you have to make smart choices.  Purchase property in areas where the housing prices have remained stable.  Also look at the growth in your area.  Where is the next boom likely to hit?  This is speculation, but if you track trends in the real estate market and do a little bit of a study, you can see the next area where developers will likely target.  This is a good place to buy real estate, even if it is just a vacant lot.
Real estate is usually always a good investment, especially if you plan to live in the property.  However, it should be looked upon as a good long term investment and not a way to get rich quick. 

·         Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

4 Steps To Real Estate Investing Success!

Real estate investing is always good and sometimes it's red hot. When it's hot dozens of real estate seminars begin rolling across the country and thousands of people spend thousands of dollars for investing education. 

It's startling to learn that of all those thousands of eager folks who attend these seminars only about 5% buy even one investment house. Why? The real estate gurus sell the "sizzle" and make profiting from real estate sound easy. The truth is that it's simple, but not easy. 

Here's a quick plan that will enable anyone to begin building financial independence. 

There are basically four steps to investing in single family homes: 

1. Buy homes below full market value. Yes, people really do sell homes for less than the home's full value. The key is to understand that most home owners will only consider a purchase offer that is all cash and within 5% to 10% of their asking price. 

The successful investor learns to find financially distressed home owners who have no choice but to sell for less than market value. They have lost their job or been suddenly transferred; they are divorcing; they been living beyond their income; the family has been overwhelmed with medical bills and, not uncommonly these days, their money has gone to support a drug habit. 

Those are examples of motivated sellers. They have to sell and they will accept something other than a conventional, all cash offer. 

2. How do you find motivated sellers? You work at it! Like any business it is important to develop a little marketing plan. One that is simple, yet very effective, is the one that was proven 75 years ago by the Fuller Brush company; door to door sales. 

You are selling your skill as a home buyer to people who must sell. Your are there when they need you and you have the skill to help them solve at least part of their problem. With door to door prospecting you will learn more and buy more homes quicker than any other method. However, most people just won't walk door to door for three or four hours per week. OK, there are other ways. 

You can watch public notices for the announcement of foreclosure sales. Meeting with a home owner right after they've received a notice that they are about to lose their home allows you to deal with a very motivated seller. Other public notices that provide buying opportunities include probate, divorce and bankruptcy. You can follow the Homes For Sale listings in your local newspaper or Internet site. 

You can telephone the names found in these notices or, and this is the least time consuming, send a postcard expressing your interest in buying their property. It will produce buying opportunities, just not as many as personal contact. 

3. After you've found a motivated seller you must understand how to frame offers that provide benefits for both you and for the home owner. A good real estate investor quickly learns that this is not a business of stealing property, but of solving problems in a way that benefits the seller. 

The home owner is in a tight spot of some kind and you can save them from public embarrassment and, in most cases, give them at least a little cash to get a new start. 

No investor can afford to leave cash in every deal. No one but Bill Gates has that much available money. You must use creative techniques like, leases, option and taking over mortgage payments. Little or no cash is needed for those deals. You can find plenty of reasonable priced educational material on those subjects in book stores or on EBay. The same education that seminars sell for thousands of dollars. 

4. You make your profit when you buy! Never make a purchase until you've carefully determined exactly how you will get to your profit. If you hold it as a long term investment will the monthly rental income more than cover the monthly mortgage payment? Will you sell the deal to another investor for fast cash? Will you do some fix-up and sell the property for full value? Will you quickly trade it for a more desirable property? Have a plan before you buy. 

 

There you have four steps that even a part-time investor can execute in three to four hours per week. What's the missing ingredient? Your determination and perseverance. If you will unfailingly follow the plan for a few months you will be well on your way to financial independence.

 Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

Real Estate Terms – From Appraisals To Comps

When you’re selling your home or other real property on your own, you don’t have to know everything about the process. It does help to have a practical knowledge of the terms that come up during the process. 

Keep in mind, these aren’t intended as “be all, end all, penultimate” definitions.  They’re working definitions for pragmatic folks. Let’s go…

1) Acceptance - A legal term referring to the acceptance of a buyer’s offer by the seller. Acceptance is often preceded by a number of counter offers between the parties. 

2) Appraisal – a professional opinion of the value of real property.  Most jurisdictions have careful rules defining who may call themselves an appraiser, and most lenders have a “stable” of approved appraisers whom they use regularly.  Typically, the lender making the new mortgage loan will require that the property appraise for at least as much as the purchase price.  Occasionally, a buyer will require the same thing in an all cash transaction.

3) Bridge Loan – Short term loans used to “bridge” any time gap between the sale of a home and purchase of the next one. These loans can be valuable when escrow is delayed on the sale of a home and the seller has committed to the purchase of another home. Bridge loans are also known as “panic loans”, but can be a life saver. 

4) Coinciding Settlements – when a buyer needs the funds from the sale of his prior home (which is under contract to be sold) in order to purchase his next home, he may well make settlement under his sale a contingency for settling on the home he is purchasing.  In reality, the sales don’t usually coincide.  They usually take place back to back.  Funds from the first are often wire transferred to the second.   

5) Closing – Depending upon the state you live in, Closing can have different meanings. Generally, the closing of a real estate transaction refers to the exchange of necessary documents, execution of the same and transfer of money. 

6) Comps – This term refers to the sales prices of similar properties in the area of a house in question. Comps are used to help determine the fair market value of a property. 

7) Conditions – any conditions which must be met before the sale can be consummated.  Some typical conditions include things like the property’s appraising for the purchase price or more, the property’s being in good condition when a home inspection is done, the buyer’s loan being approved.

As you can image, there are many real estate terms for which you have a general understanding. In our next article, we continue with the terms starting with “Condominium.”

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Real Estate Success

Real estate success? It happens by way of the many things you repeatedly do right, and it is your habits that ensure they get done. Here are some habits to develop for your real estate investing success.

Ask for people's names, and tell them yours. People are your most valuable resource in real estate investing. The more you know, the more likely you are to find good properties, or buyers for your good properties. Get to know the right people too. Start with a real estate agent that gets many listings of the type you are interested in. Wouldn't it be nice if he called you first?

Think numbers. Think people first, but know the relevant numbers. Ideally, when you look at a rental property, for example, you should be thinking about the income, the expenses, and the cap rate. You should be imagining how certain changes would allow you to raise the income, and what that would do to the value. Having a "feeling" about a property, and ignoring the numbers, gets investors into trouble.

Carry supplies. Always have at least business cards, pen and paper on you. You never know when you might see a property for sale, or hear about one. Mention that you invest in real estate, and sellers, buyers and other investors suddenly appear with information, opinions, and sometimes deals. Be ready.

Think risk reduction. Put those inspection, financing, and other contingency clauses in the offer, so you will get your deposit back when a deal falls through. Know your exit strategy before you buy. Find value by comparables, not "hunches." Buy properties through your corporation or LLC. Always look for ways to reduce the risks.

Real Estate Success Is Found In Action

Set action-oriented goals. Get in the habit of taking regular steps towards real estate success. Require yourself to look at a certain number of properties, and maybe even to write a certain number of offers each month. Set at least minimum goals for all sorts of little steps, like making five phone calls per week, checking online for new listings twice per week, and so on. Action creates momentum, and repeated action creates habits. Good habits lead to success.

Finally, learning more about investing from books, magazines and even tapes or CDs is a great idea. Just be sure to spend as much time doing something as reading about it. Some of us let our fascination and enjoyment of reading about investing get in the way of actually investing, and of our real estate success.

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

Real Estate Market Research

Start your real estate market research with the U.S. Census information about a town. You want to invest in a town that is growing, especially if you are investing in income properties. It's getting easier to do this now, with all the information available online. Just go to the official U.S. Census site at www.census.gov.

If you call the chamber of commerce, or the local department of economic development, they may have a packet of statisics they can send you too, showing population figures, employment mix, and more. These are a couple of the statistical tools and information that can help, but one of the easiest and most useful research tools, is talking. 

Real Estate Market Research - Choosing a City

Talking is a great way to research a town. I once called the  Chamber of Commerce of Deming, New Mexico. In the course of our conversation, the chairman casually commented that the city was using up the water faster than the aquifer was being replenished. I also learned that they had no back-up plan. That was enough to cross Deming off our list.

When you want to know more about a town, use the phone. Use any excuse to call anyone from a real estate agent to a random resident. Ask questions about crime, whether the local government welcomes new businesses, what the climate is like. Are houses sitting for sale for a long time, or do they go fast? Where are the good and bad areas? What are the good and bad things about the town?

Prior to moving to Tucson, Arizona, part of our real estate market research was to call people in potential towns to see if they owned a snow shovel. If they did, we crossed the town off the list. Two different places can both get 25 inches of snow per year, but in one it stays all winter, and in another it melts before noon. Our snow shovel question told us the truth behind the statistics.

That was just a personal thing with us, of course, but talking to people can tell you much that is more directly related to investing. In fact, a good local bar can be a great place to do your research once you are in a town. Patrons will tell you what big employers are about to move in or out of the town, how fast homes are selling, whether there are gangs, and much more. 

Ask which areas are improving, and which are getting worse. Listen for stories about noisy or animal-infested areas. This kind of information is important, but hard to get from the raw data. Of course, people do sometimes exaggerate, so try to verify what you hear. Still, talking to people of can be a great way to do real estate market research.

 

Lisa Jones is a seasoned realtor affiliated with RE/MAX Bryan-College Station. She offers a one-stop source for real estate services and information about Bryan-College Station Real Estate. Visit her homepage for a complete list of real properties college station, and you just might find the home you have been dreaming to have.

 

 

 

Contingency Clauses

Just because you have a contract does not mean a real estate deal will always go through as expected.  There are many things to look out for when it comes to contingency clauses in contracts.  These were, at one time, called weasel clauses.  The reason for this was because a buyer or seller could weasel out of a deal because of one contingency or another. 

There are many contingency clauses in place now to protect both the buyer and the seller.  Here are some of the more common ones being used in the real estate market today. 

1)      Loan contingency.  If the buyer can not get funding in a certain amount of time he or she can back out of the deal.

2)      Sale of another home contingency.  The buyer has made an offer but it is contingent upon whether the home he now has will sell.  If it does not sell within a set time, the buyer is not held accountable for the purchase offer.

3)      Home inspection.  The sale is contingent on whether the property will pass the home inspection. The buyer has the right to inspect the home for any unforeseen damage which may not have been disclosed.

4)      Appraisal.  If the property does not meet the appraisal guidelines set forth by the lender, the buyer does not have to uphold his end of the purchase agreement.

5)      Lead based paint inspection.  When a home has been built prior to 1978, the buyer can have a lead base paint inspection.  If there is evidence of lead based paint, this lets the buyer out of the contract.  The house would be considered hazardous.

6)      Water inspection.  Many times the home is in a rural area where there is no access to city water. The supply is by a well. The well must be inspected.  If it does not pass a health inspection, the buyer does not have to buy the property.

7)      Wood boring insects.  A termite inspection is mandatory so there is no chance of hidden damage.  Although this is a problem which can easily be rectified, many buyers will not buy a home which has had evidence of termites.

8)      Hazardous material contingency.  This is similar to the lead paint inspection.  During the home inspection, the contractor may come into contact with black mold or asbestos.  Unless there is an agreement between the buyer and seller to have this taken care of the buyer can walk away from the deal.

9)      Owners association acceptance. In some condos and town houses, the buyer must qualify for the home owners association.  If they do not get accepted, they will be allowed to back out of the deal.

10)  Title report.  The title report will let the parties know about any liens, encumbrances, or easements on the property.  If these are not acceptable to the buyer, they can walk away and not be held accountable.  Something simple like the seller forgetting to mention the oil company holds the mineral rights to the property and can drill anywhere it wants, may make a buyer think twice about buying the property.

 These are just some of the many contingencies which can be listed in a purchase agreement.  It is up to the buyer and seller to work out as many of them as they can to seal the deal.  Sometimes this just does not happen.  Each party must then move on to the next house or buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

 

The maze of real estate contracts.

First time home buyers, and sellers, can become overwhelmed with all the legal aspects of buying or selling a house.  The paperwork can make anyone's head swim.  It is extremely easy to familiarize yourself with the real estate contracts with some simple research. 

The first contract you may run into as the seller is the listing agreement.  This is the real estate contract you will sign with the agent who is going to put your house on the market.  This agreement will state the name, address, and other important information about the seller and the property.  It will also list the terms of the listing.  For instance, how much the brokerage is charging for their services, how much you are selling the house for, how long the house will stay with the broker, and what is included in the sale. 

You will also see a lead paint disclosure form if your home was built before 1978. This form simply states when the home was built and that the seller either does or does not have documentation or information pertaining to the lead paint.  If there is documentation, the seller is required to turn it over for inspection.  If there is no known documentation, the buyer has a certain amount of time to have a risk assessment done to see if a hazardous condition exists. 

Along with the lead paint disclosure is the seller's disclosure.  This is the form which allows the seller to tell about the property.  For instance, if the property is in good repair this can be stated.  The seller is responsible for releasing information on any damage which may have occurred due to flooding or other problems.  If there was an infestation of any kind which had to be professionally treated, the seller will put it on this form. 

The seller will also see another form the real estate agent must present.  This is the agency disclosure form. This is the form which states the agent is working for the seller.  It is important to have this one because some agents work for the buyer, while others are dual agents who work for both.  The seller needs to know who his agent is working for. 

The buyer has an entirely different set of real estate contracts they will encounter.  The mortgage contract will be used to determine the loan amount for purchasing the property.  This will list the details of the purchase.  It will tell how much the buyer will put up and how much the lender will contribute.  There will also be an appraisal done so the property can be properly assessed. 

The purchase agreement is a contract both the buyer and seller will be using.  This is the form the buyer will use to make an offer on the property.  This will also include the amount the buyer is borrowing, any closing costs they are asking the seller to pay, and the amount of earnest money put down.  The purchase agreement will also list what else the buyer would like.  For instance, the window treatments or appliances may be requested in the purchase of the home. 

One of the last forms both parties will see is the title disclosure.  This is the paperwork which states the title is free and clear from all encumbrances.  It also states the seller is the property holder and is allowed to sell the home. 

One final contract is the mortgage paperwork at closing.  This is where the title will change hands, the money will exchange hands, and the property now belongs to the new buyer.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

The Mover's Checklist

Every one dreads moving.  Even if you are moving into the dream home you have pictured all your life, the move is still a pain.  Changing over the utilities, forwarding the mail, notifying creditors, and the packing can all be one big hassle.  With a mover's checklist you can make the process quite a bit easier. 

One month before the move:

Whether you are moving across town or across the country there are certain things you must do.  The first one is to take an inventory of what you own.  You will need to decide what you are going to keep and what can be donated to local charity or sold at a garage sale.  It is easiest to do this on a room by room basis.  Go through each room and box up what you will not be taking with you to the new house.  If you are donating to the charity call to arrange a pick up time.  If you are having a garage sale, plan it for the next weekend.

For parents with school age children, if there will be a change in schools, notify both the old school and the new one so that transcripts can be sent ahead.  This will make it easier to sign the kids into the new school.

Locate the new pharmacy and have your prescriptions transferred. 

Contact the utility companies to make arrangements for disconnecting and/or transferring to the new address.  You will want to contact the new companies to have the utilities turned on the day you arrive in your new home.

Draw out your new floor plan.  This will enable you to know which pieces of furniture will go where in the new house.  You can also determine what will fit and what will not.

Notify the post office with an address change card they provide.  The kit the U.S. Postal Service has will allow you to notify friends, family, and creditors about the new address.

Talk with your bank to have them change the address on your accounts and credit cards. 

Three weeks before the move:

Start using cleaning supplies and foods you will not want to move.  Downsizing the kitchen can be easy during a move. It can be a hassle to move if you do not do this.

Start packing uncommon items you do not use that often.  Labeling the boxes for the new house make it easier to unpack and get settled in.  Many times it is easier to start with things like the off season clothes.

Retrieve items out on loan.  Get any items in the repair shop out.  Make sure all dry cleaning has been picked up.

Notify the newspaper of any cancellations.

Now is when you want to have that garage sale. 

Two weeks before the move:

If you are using professional movers, find an alternative way to move your pets and plants.  These are things the movers can not take on the truck.

Pack as much of the home up as you can.  Remembering to check the attic and basement for stored seasonal items.

Have a moving folder.  This is where you would keep important items you do not want to get lost or misplaced during the move.  Insurance cards, birth certificates, titles, and other things can go in this folder.  Put it someplace safe.

Walk around the outside of the house to make sure you got everything you are taking.  The garden hose, the wind chimes, and even the lawn ornaments can sometimes be left behind without thinking. 

The week before the move:

Pack up anything else you possibly can.

Double check to make sure the utilities will be taken care of and you know what is happening with any deposits you are owed.

Order the new paper delivery service at the new house. 

The day of the move:

Pack up everything you have not gotten to at this point.

When the entire house is empty, do a complete walk through checking closets and drawers as you go.  Make sure to look in the basement and garage as well.  Close each door before you walk out of  the room.  There have been many things left behind doors. 

This is just a small checklist of some of the things you will want to do before you move.  There are other things you may put on your mover's checklist.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

Tips to ensure a safe move.

Everyone gets excited when they are about to move.  It can be a fun and tiring experience all at the same time.  There are certain things you should do to ensure you have a safe move. 

The first thing you need to do is determine what day you are going to be moving.  The people who should know about it are the ones who will be helping you move.  Many times you will have people you only know as distant acquaintances show up to help with the big day.  The best response is to let them know you have enough people already.  Thank them for the offer and send them on their way.  You may think everyone can be trusted, but this is not the case.  Moving is a hard job and very few people volunteer just to be nice.  The ones who did offer are your friends and family.  It goes without saying they will expect the same from you one day.  Taking help from someone you hardly know can lead to things missing when you start to unpack. 

You will also want to make sure you have the proper moving equipment when you are moving.  Things like a cart dolly or two wheeled truck, as they are sometimes called, will be needed to move heavy things like the refrigerator, freezer, washer, and dryer.  Even if you have ten men ready and willing, you do not want someone hurting themselves because of your move. 

Before everyone arrives to help with the move, make sure every thing is packed up, or at least almost every thing.  This will ensure no one is standing around waiting to grab a box.  Having every thing ready to go and waiting on them will make the entire process so much easier for everyone. 

You will want to make sure the walk ways and stair ways are completely cleared.  You do not want anyone tripping and falling.  This is something which should be done periodically throughout the day to keep everyone safe.  People will ask for help from someone carrying a box down the steps. The person will put the box on the steps and help with what ever needs done, completely forgetting about the box.  The next thing you know someone is coming down with a chair or another box and does not see the first one.  Accidents happen like this all the time. 

It is advisable to have a cooler located somewhere which has a supply of ice and cold water in it. This is especially good if you are moving during the summer months.  People will get extremely hot during the moving process.  You want to keep everyone safe by keeping them hydrated. 

One last tip when it comes to having a safe moving experience.  Keep the doors and windows locked.  There are two reasons for this.  The first is obvious.  You do not want any unwanted guests helping themselves to what ever has been moved or still needs moved.  The other is the weather factor.  It never fails that when you are in one house, it will be raining at the other or vice versa.  You can keep floors dry and slip proof by keeping the windows shut when you leave one house for the other. 

You can also divide your help into teams.  Locate one in the new house and keep the other one at the old house.  As the trucks show up to the new place, the second team can unload. This gives the first team a needed break.  When the first team comes back to load up again, the second team is taking their break.  They can also help start to unpack.  

 

You can have a safe, enjoyable day of moving if you just follow the hints and tips suggested here. 

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

Tips for Making a Land Purchase

 There is a much greater risk in purchasing land than there is in purchasing a home.  This is primarily due to the number of factors influencing a land purchase.  If you’ve never mad ea land purchase before, it’s only natural that you would not be aware of these factors much less the difference between them and other forms of real estate.  You should become familiar with the process of purchasing land before making the actual land purchase.

 Consider hiring an attorney to help you in the land purchase.  When it’s time to negotiate the contract, the attorney will be especially helpful.   Choose an attorney that has previous experience in real estate transactions that deal with land.  This is the best kind of professional to assist you in the process.  You can find an attorney using a directory or by asking for references from people you know.

 You should never assume that you will be able to obtain a building permit for the land.  Don’t make your land purchase under this assumption.  You can be denied a building permit for several different reasons.  The sales contract regarding your land purchase should include a clause that will let you out of the purchase if, unfortunately, you cannot obtain a building permit.  If you don’t include such a clause, you will end up with a piece of land that you can only resale.  Chances are if the land cannot be constructed upon, you will have making a land purchase to someone else.

 Check with the local utility companies to be sure that you can have electric, gas and water services at the site.  Do this before the land purchase.  The last thing you want is to find out this information after you have signed the contract.

 Find out if public sewer lines are available for the land.  The local city hall can assist you in finding out this information.  If you find out that there is not a public sewer line accessible to the land, you will need to install a septic tank.  As you think about the purchase price of the land, keep this cost in mind.

 The city’s building department can let you know if the land is zoned for what you plan to use it for.  Different lots of land are zoned for different purposes.  Also check for any restrictions regarding construction and other uses of the land.

 In some instances, the topography of the land can influence the cost of the work that must be completed.  Have your contractor look over the property to check for any costs that may come up because of the landscape.  It is best to do this check now than to have to pay later.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

 

Tips for Home Builders

 The next best thing to buying your dream home is building a home it yourself.  Building a home provides many advantages over purchasing one that has already been built.  When you build your own home, your only limitations are space and money.  You have complete control over the design of the home and the finished product.  Building a home can be a rewarding process culminating in the home that you’ve dreamt of.

 One of the primary reasons that people build their own homes is so they can customize the home to their own specifications.  As you think about the kind of home you want to build, keep in mind that there is a strong possibility that the home will need to be sold at some point or another.  You might reason that once your home has been built you will live in it forever.  That’s impossible considering that you, yourself, will not live forever.  The way you build your home will have an affect on the ability to resell it.  Some of the features you would love to include in your home may keep it on the market for a longer period of time than expected.

 You should build your home along the lines of those that are already in your neighborhood.  It’s not uncommon for people to want to build in the area that they already live.  These people tend to build homes that are bigger than what is already there.  This makes selling the home a tricky process.  You’ll find that buyers for that neighborhood aren’t looking to pay the price of your home.

 Choose your contractor wisely.  This is the person who is responsible for executing the building a home.  The keys to your new home are in the contractor’s hand.  You should interview several contractors.  The best way to find a contractor is through a referral from a family member or friend that a positive experience.  When you find a contractor you like ask for references.  Be sure to actually interview the references to make an educated decision about the contractor you choose.

 Prepare for delays in the process.  It’s not a good idea to lock in a specific move-in date because it will likely change several times as process of building a home progresses.  When it comes to building a home one delay can cause another which causes another.  Before you know it, the plan is a few weeks off schedule.  Make sure you have a contingency plan in the event that construction goes longer than expected.  Avoid rushing the process of building a home as it will surely have an effect on the final product.

Educate yourself as much as you can on the entire process of building a home from start to finish.  Talk to people who’ve built houses.  Use the internet.  Visit the library.  Information is your best tool in an unfamiliar process such as building a home.  You will have many decisions to make as your home is being built.  Equipping yourself with information about building a home helps you make the best decisions about your home.

 

Contact Lisa Jones and get a better understanding.

 

Six Things You Shouldn’t Do Before Purchasing A Home

Just because you’re buying a home doesn’t mean that life has to stop, or does it?  You never know what affect actions you take today will have on the mortgage you apply for in three or even six months.  Even something as simple as transferring money from your savings to your checking account can create hassle in the mortgage process.  Read on to find out what things you should avoid doing before buying a home.

 Purchase a Car.  Many people are inclined to improve their social standing by purchasing a car and buying a home at the same time.  There’s nothing wrong with that.  Purchasing the car before buying a home will have an effect on what the mortgage lender determines you can afford for a home.  Since a car is such a big ticket item, it can greatly raise your debt-to-income ratio, which lenders use to determine how much of a mortgage you can afford.  Ultimately, the car purchase will decrease the amount you can afford to pay for a home.

 Move Money Between Accounts.  When the lender does the work to determine your eligibility for a loan, they will request statements from all of your accounts that contain liquid assets.  When you move money around between these amounts, especially if they are large amounts, you will have withdrawals in some and deposits in others.  The lender will request the documentation for these.  Unless you want to keep up with all this paperwork, it’s much easier to leave the money where it is until after you have completed buying a home.

 Change Banks.  This can easily be coupled with moving money between accounts.  It just creates additional paperwork for you and the lender.  To make it easier on yourself and the lender, stay with your current bank until the mortgage is complete.

 Become Self-Employed or change jobs if you are employed part-time.  Either of these could have a negative affect on your mortgage approval.  In most cases, lenders want to see at least two years of self-employment they will approve you for a loan.  Wait until after buying a home to become self-employed.

 For part-time workers changing jobs creates unpredictability in the number of hours that you will work from one week to the next.  As such, the lender cannot determine your gross income to qualify you for a loan.  Stay with your current job until you have the loan, then change.

 Apply For a Credit Card.  Even though the inquiry won’t hurt your credit too badly if you already have a good credit score, the additional credit card will cause the lender to question your financial stability for buying a home.

 Make a Large Purchase.  Of course you are going to need furniture when buying a home.  Resist the urge to purchases a new sofa set until after you have obtained the mortgage.  Big ticket items purchased before buying a home can cause the lender to take a second look at your financial situation.

 When you are buying a home, it is best to stay away from anything that will make it look as though you don’t your finances under control.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

The Secret of “After Settlement Escrow” to Solve Problems

Most FSBOs (people who are selling their own homes) are aware of the conventional use of escrow. In this article, we look at ways to use escrow to solve problems. 

Escrow

Escrow means different things in different parts of the country.  In California it’s part and parcel of the settlement process. In Virginia, while there’s no formal escrow before settlement, the settlement agent gathers title information, draws or has a deed drawn, coordinates with the lender, receives various inspection reports and in general conducts an informal escrow in the days before settlement. The difference is that, in Virginia, usually documents aren’t signed by the parties until they meet at the settlement table.  It’s the use of escrow after this period that we’re concerned with here.

A Problem Rears Its Head

What’s possible varies from state to state, but creating an escrow account (usually held by the settlement agent) after a home is sold can solve problems. What sorts of problems? Let’s look at a few.

First of all, let’s assume the buyer or seller needs, or wants, to settle by a certain date. Lots of things can cause this including the date school starts, the date a breadwinner starts a new job or the date of settlement on the seller’s new home.

Now, let’s suppose a problem crops up which would prevent that settlement deadline from being met.  Such problems might be caused by the discovery of termites and termite damage, the discovery of encroachment on a utility right of way by a garden shed on the property being sold or the discovery of high levels of radon gas within the home.  

Let’s further suppose that the buyer and seller have agreed on the basic solution of the problem. In the above examples, typical solutions might be that the seller will have the home treated for termites and have a licensed contractor repair the damage. Or the seller will have a contractor move the shed out of the right of way. Or the seller will install a radon mitigation system.  Of course, everything is negotiable, and a buyer who wants a property badly enough could agree to fix the defects himself.

What if the pest control company, contractor or the radon mitigation company can’t finish their work until after the planned settlement date?  What happens then?  Most frequently, settlement is delayed until these sorts of things are taken care of, but sometimes that isn’t desirable.  Sometimes delay of settlement can be a deal killer.

Problem Solving 101

Enter the “after settlement escrow.” The parties agree that an amount of money (usually a bit larger than the estimate) is set aside in escrow pending completion of the work. The escrow agent has clear (usually written) instructions about what must be done before the money is released to the person who put it up (or before the work is paid for and any excess returned to the person who put it up).

The funding of an after settlement escrow usually comes from the proceeds of the sale, so it can be used where there are no funds to take corrective action any other way. Even if the person responsible could get a loan for the purpose, the process could take too long to meet the settlement deadline. In that way, it can be a “cash flow” solution, too. 

No matter what problem you encounter, it’s usually possible for a willing seller and a willing buyer to work things out. Remember that all sorts of needs can be accommodated without anyone’s being a loser.  Situations in which both buyer and seller are winners happen frequently. With any luck, that’s what will happen in your case. It just takes creativity and persistence.

Contact Lisa Jones and get a better understanding of how your property can benefit from above.

 

FSBO Tip - Don't Do It

My Number one FSBO Tip? Don't sell it yourself! A "FSBO," or house "for sale by owner" can sell fast, and for as much as it would have if listed with a real estate agent. Sometimes - but not normally. Consider the following ten points.

 1. Buyers work with agents. Most look at MLS listings. Sell it yourself, and they won't see or hear about your home. How do you find that "right" buyer or get top dollar when you're invisible to most of the market?

 2. Your FSBO will get lower offers. Naturally, the buyer thinks you'll take less because you're saving the commission! Save a $10,000 commission, get $10,000 less - where's the advantage in that?

 3. Advertising is expensive. The costs the real estate office normally pays are yours if you sell it yourself. How much could you spend on ads if it takes a a year to sell?

 4. They have the resources. And you don't. Agents have books of sold properties to look at, for example, to determine the best price for your home. You can dig through county records, but you do have to value your time too, right?

 5. They know the market. What's the target market for your house? Young couples, retirees? What features do they want? You should know these things before you write your ads. An experienced real estate salesperson will know.

 6. They know the laws. What about written disclosures, and who pays for the real estate transfer tax? When you sell it yourself you don't get to ignore the laws.

 7. Are you a good salesperson? Can you develop rapport and properly answer objections? Could your defensiveness scare off a buyer who criticizes your home? Think back on your own purchases, and you'll realize that a good salesperson makes a difference.

 8. Paperwork. Will you help the buyer properly fill out an offer to purchase? An agent would. Do you have the other closing documents ready?

 9. Agents negotiate for you. When did you last learn a new negotiating technique? Can you counter-offer without scaring off a buyer? A good salesperson is trained in these skills.

 10. You may not save anything. The documents, newspaper advertising, signs for the yard - it's all your expense when you sell it yourself. After your hard work, you may get low offers and negotiate poorly. Honestly, sellers often net less money from the sale when they try to save the commission.

Most "FSBO" sellers eventually turn to a real estate agent for help. You could learn the things an agent does, but is it worth it to spend all that time and maybe not even save any money? Don't sell it yourself unless you really know what you're doing. That's my number one FSBO tip.

Looking for a real estate college station agent you can entrust your property with, click here.

 

Four Advantages of Real Estate Ownership

The following key factors are commonly accepted as the major reasons real estate continues to be a good investment.  For the majority of real estate participants, these factors are the most critical issues in a real estate venture.

1.) Real Estate is a Necessity:  Real estate is at the very core of human existence. We all have three important basic needs: food, clothing and shelter.  Our world continues to expand as more and more people are being born every day. In addition, there continues to be larger migrations of people from rural areas to more populated locations. Therefore, people will always have the need for temporary lodging, permanent shelter and places to conduct business.   

2.) Hedge Against Inflation:  Inflation is the invisible force eating away at the purchasing power of our dollars. A dollar, however, doesn’t buy today what it once used to.  It is also evident that the quality of goods our dollars purchase is also diminished.  For instance, the McDonald’s “Big Mac” has become progressively smaller year after year. Plus, when we purchase a box of our favorite breakfast cereal, the bag inside the box is practically half empty.

From the tenant’s perspective, rent seems to go up constantly and anyone on a fixed income may find it difficult to keep up with the cost of living increases.  The owner of the property also feels the effects of inflation in the form of increased property related expenses, taxes, utilities and maintenance costs.  As property costs rise, owners typically pass these costs on to their tenants in the form of increased rents and fees. Furthermore as inflation increases so do property values; owners will often benefit from the property appreciation.

3.) Production of Income:  The most attractive and lucrative reason for owning real estate is in its ability to produce passive income for the property owner.  Rent is accruing daily while payments made by the tenants pay down debt balances and produce predictable profits.  Once the property is free and clear, the portion of income that was once used to service the debt payments now goes into the owner’s pocket.

4.) Appreciation in Value:  Due to inflation, property appreciates in value.  Usually, this statement is generally true.  While there are no guarantees, if care is taken with regards to timing of the acquisition and trends in the overall marketplace, real estate tends to perform well when inflationary conditions are flat with some moderate expansion.

 

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Foreclosure Rescue and Foreclosure Options

Foreclosure rescue, also known as equity skimming or equity stripping, is any of various predatory real estate practices aimed at vulnerable, often low-income, homeowners facing foreclosure in the United States. Most often, these transactions take advantage of uninformed, low-income homeowners. 

The term "foreclosure rescue" has sometimes referred to subprime lending refinance practices that charge excessive fees thereby "stripping the equity" out of the home. The practice more often describes foreclosure rescue scams. While most do not consider foreclosure rescue a form of predatory lending per se, foreclosure rescue is related to traditional forms of that practice. 

Subprime loans targeted at vulnerable and unsophisticated homeowners often lead to foreclosure, and those victims more often fall to foreclosure rescue scams. Additionally, some do consider foreclosure rescue, in essence, a form of predatory lending since the scam works essentially like a high-cost and risky refinancing. Foreclosure rescue, however, is conducted almost always by local agents and investors, while traditional predatory lending is carried out by large banks or national companies.

Trends in the United States economy have led to the growing market for foreclosure services and foreclosure rescue. Property values have increased dramatically from 2000-2005. 

Foreclosure A homeowner falls behind on his mortgage payments and enters foreclosure. Foreclosure notices are published in newspapers or distributed by reporting services to investors and rescue artists. Foreclosed homeowners also contact lenders to inquire about refinancing options.

Solicitation Rescue artists obtain contact information for foreclosured homeowners and make contacts personally, by phone, or through direct mail. Some lenders and brokers will also refer foreclosed homeowners that do not qualify for new loans to rescue artists for a commission. Rescue Artists offer the foreclosed homeowner a "miracle refinancing" and/or say they can "save the home" from foreclosure.

Acquisition Rescue artists arrange the closing (often delaying the date until shortly before the homeowner's removal in order to create urgency). At the closing, the homeowner transfers title (possibly unwittingly) to the rescue artist or an arranged investor. The rescue artist or arranged investor pays off the amount owed in foreclosure to acquire the deed, and inherits or is paid any portion of the homeowner's remaining equity.

Result The homeowners remain in the home and pay rent or contract-for-deed payments (often higher than their previous mortgage payments). Several states have passed laws to prevent and/or regulate foreclosure rescue schemes. Minnesota and Maryland passed laws in 2005 aimed at "foreclosure reconveyance" practices . The statutes also ban certain deceptive and unfair practices associated with foreclosure rescue.

Foreclosure Options

Reinstatement of Loan (Cure): This option is paying the lender everything that is owed in one lump sum to include missed payments, any late fees associated with these payments, foreclosure fees, legal fees and the principal owed during the delinquency. 

Repayment Plan: This is a written agreement between the lender and the seller. These plans require higher payments than the regular monthly mortgage amount for a period of time until the loan is brought up-to-date.

Loan Modification: A loan modification involves changing one or more terms of a mortgage. Modifications can be considered to reduce the interest rate of the mortgage, change the mortgage product (from an adjustable rate to a fixed rate, for example), extend the term of the mortgage or capitalize delinquent payments (add delinquent payments to the mortgage balance-only available in extreme hardship situations). 

Forbearance Agreement: The lender will allow you a period of time (3-6 months typically) of either low payments or no payments at all. 

Special Forbearance (FHA Loans only): Allows eligible borrowers to postpone monthly mortgage payments for a minimum of four months.

Deed-in-Lieu: A Deed in Lieu is an option in which a borrower voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage.

Click here for more details on how you can save your property from foreclosure.

 

 

Building Commercial Real Estate To Lease

Those looking for a solid commercial real estate investment should consider building commercial real estate to lease.  Whether you are building a strip mall or office complex, with some good knowledge of the real estate market and property management, you can earn substantial income with such an investment. 

Prior to building commercial real estate to lease you have to first find the right property and make sure it is zoned for the use that you wish.  If you are planning on building an office complex, for example, you will have to have it zoned for business use.   You also have to take care of due diligence.

Due diligence includes a survey of the property, making sure that you have all the necessary improvements on the property such as roads going in and out of the property, driveways, utilities, sewer and water, in addition to zoning.  You should also ask for an environmental report to make sure the soil on the property is not contaminated. 

If you are planning on acting as your own general contractor when building commercial real estate to lease, you will have to submit your plans for your building to the municipality in which it is located for approval.  Once your building plans meet approval, the municipality will issue a building permit.  You can then begin building your project.

Chances are that you will be getting financing for your project as well as investing some of your own money.  The trades people will be paid periodically throughout the construction process.  As general contractor, you will have to collect waivers of lien and prepare a Contractor Sworn Statement so the title company can release the funds.  Once the property is completed and all the trades have been paid, you will get title to the property. 

Prior to final construction, you should be working on getting businesses to lease the spaces you are offering for rent.  Hopefully, you will have most of the property leased prior to the settlement of the property and the completion of construction.  It will then be time to find a good property manager.

Property managers collect the rent on the lease properties as well as the common area maintenance, also called CAM.  In the case of an office complex, all of the units will share the parking area, garbage disposal and some utilities.  Common area maintenance is usually incorporated into the lease and depends on the square footage of each rental property.  Common area maintenance also entails lawn care, cleaning, advertising and snow removal. 

If you can manage to be your own property manager, you can use your commercial real estate as steady income.  Property managers generally charge a fee for performing this duty and this can be an good way for you to earn more profit when building commercial real estate to lease. 

Building commercial real estate to lease can be an ideal way to invest in commercial real estate college station, especially if you are willing to act as your own general contractor or property manager.  This area of real estate investment can insure a steady, solid income for the investor.

You can find the best optional parameters for your real estate college station investments here.

 

Commercial Real Estate Partnerships

Commercial real estate college station partnerships can be the best way for beginning investors or those who know little about commercial real estate to make money in the market today.  As the bottom has pretty much fallen out of the residential real estate market, the commercial real estate market is the only way to make quick money at this point in time in this arena.

When seeking commercial real estate college station partnerships, you want to find out as much about the partnership as possible.  While some people choose to invest with friends, others find fellow investors in all sorts of places, including the internet.  There are also real estate college station investment agencies that match people with the types of investment that they want.  These are similar to mutual funds. 

It is probably best, when seeking commercial real estate college station partnerships to find a group that you can trust, that you know and who are investing in local property.  This way you can not only get to know the other investors, but you also have some control over the real estate investment that you are making. 

If you have money to invest in the real estate college station market but are unsure about sinking it all into one investment or not familiar with the commercial real estate market, the best way to go about such an investment is through commercial real estate partnerships.  These can be an ideal way to not only make money in the real estate market, but also learn about the business. 

Commercial real estate college station has many different facets.  It can range from large shopping centers to industrial parks to hotels.  Commercial real estate is usually more of a safe bet than residential real estate investing, although the stakes are higher.  You normally only get fifty percent of the price of the property in financing, unlike the residential market, where you can get ninety five percent of the financing.  You have to have a little bit more money to invest in the commercial real estate market, but it is generally a very secure option and a way to get a steady income from rentals.

Speak to your investment counselor about reliable commercial real estate partnerships in your area.  He or she may be able to direct you to a reliable group or give you some other options when speaking of investing in commercial real estate.  Investment groups can be found just about anywhere, even among your neighbors.   The best part about joining one of the commercial real estate partnerships is that you do not have to take all of the risk with the real estate investment. 

Another way to find good commercial real estate college station partnerships where you can find others in your same position who also want to take advantage of some of the best commercial real estate deals on the market with just a minimal investment.  For those with only a little bit of money in which to invest or who are not well versed with the commercial real estate market, it makes more sense to seek out commercial real estate partnerships.

A leading counselor in real estate college station on various  remax properties college station convertible to profitable ventures is Lisa Jones.

 

Investing in Commercial Properties

There are many avenues to take when investing in commercial remax  properties college station .  Commercial real estate investments range from large industrial parks that are usually financed by a several investors as well as corporations to small vacation cottages for rent by the seashore.  Commercial real estate varies but is now the best real estate investment available.   It is really the only choice for those who know real estate and want to make money without having to wait years for the residential market to turn around. 

The residential real estate college station market has suffered greatly over the past two years.  As a result, housing prices are at an all time low throughout the United States.  Investors who were concentrating on the residential market have either stopped investing in real estate or switched to investing in commercial real estate.  Commercial real estate is entirely different than residential real estate.  If you are planning on investing in commercial properties, learn about the market as well as commercial real estate laws. 

Depending on the type of commercial real estate college station you are planning on investing in will determine what you need.  Investment properties include just about everything.  If you are planning on just investing in commercial properties and not running a business, you should think about investing in a commercial real estate group.  Sometimes it is better to spread your money around to different properties than just concentrate on one.  

When deciding on the type of commercial real estate college station you wish to invest in, think about your knowledge in the field of commercial real estate.  If you know anything about the trades or building, you may wish to develop property as new construction.  If you are well versed about property management, you may want to start investing in commercial properties by purchasing office condominiums or storefronts that  require someone with knowledge on how to manage commercial property. 

If you have more money than time, you may want to take on a partner who knows the ins and outs of the real estate business while you invest the capital.  The details of how you split the profit can be determined by how much both of you are willing to put into the business.  Another option for someone with money is to invest in several different limited real estate ventures where there money can be spread around in different properties.  

Investing in commercial  remax properties college station can be lucrative if you know the market and understand what you are doing.  If you do not know anything about real estate but still wish to make a good, solid investment in the commercial real estate market, you can choose a good real estate investment firm that can help you decide what properties in which to sink your money.

Whether you are well versed in commercial real estate and ready to build a strip mall on vacant land, or have no idea what commercial real estate even is, you can make money in this type of investment.  You either have to use your own knowledge, or find an investment program that you can trust to make solid investments in commercial real estate. 

 

 Click here for a complete listing of remax properties college station.

 

Purchasing an apartment building

When purchasing an apartment building, consider the following:

1.     Make sure that the building is in a stable area.  Purchasing an apartment building in a blighted area where the price of real estate is decreasing is not prudent.  You will want to buy an apartment building in an area where the home prices are stable or appreciating.  This will cost more money, but you will be getting more out of your commercial real estate investment in this way;

2.     Do a home inspection before you even think about closing on the property.  You may have to pay for this if the seller does not offer it, but it is worth it.  You do not want to purchase property that is falling apart or needs extensive repairs.  A homes for sale bryan tx inspection is a wise idea when investing in any real estate structure, including commercial property;

3.     Get a survey and a title commitment.  The survey will show the property lines and make sure there are no other buildings encroaching on the property.  The title insurance will reflect the current owner, any liens, encumbrances, unpaid taxes and covenants or restrictions.  Covenants and restrictions are often placed on multi family property.  This can include such things as “no hanging clothes on the balcony” to “no antennas on the roof.”  If you are unfamiliar with reading a title commitment or survey, hire an attorney with experience in multi family commercial real estate bryan tx investing;

4.     Make sure you see the leases and you should even interview the tenants to see if they are happy with living in the building, if there are any problems and if they plan on staying.

5.     Figure out who is going to maintain the property.  This will include shoveling snow, salting the driveway, cutting the grass and basic repairs in the building.  You can do this yourself, if you are handy, or you can offer one of  your tenants a discount in rent by agreeing to take on this job.

These are the most important aspects when purchasing an apartment building.  Many people, when seeking to invest in commercial real estate bryan tx, prefer working with apartment buildings, particularly if they are handy and can do basic maintenance in the building.  Remember that your tenants will look to you if anything goes wrong in the building.  You will be required to make sure that your tenants have hot water and heat or else you may be in violation of  several municipal, state and federal laws.

You also have to know the lease laws when purchasing an apartment building for a commercial real estate byan tx investment.  Lease laws vary from state to state as far as the responsibilities of both tenant and landlord, but  federal laws prohibit any form of discrimination based on a variety of conditions.  You must be familiar with these laws before even thinking of leasing property or purchasing an apartment building.

If you are handy and can do basic home maintenance, and better yet - if you plan on living in the building where you can keep track of what is going on, buying an apartment building can be a good way to get started in commercial real estate bryan tx  investing.