Things To Know Before You Invest In Real Estate
May 3, 2019
All real estate investors are looking for options that have high returns and as low a risk as possible. This is only possible if you know how to make smart choices. The following three things make for an excellent real estate investment to help you get started.
First of all, you want to get a return on your investment. Real estate is an illiquid asset that require you to take money out of your liquid assets. You need to strive to get a return rate that is the same as what it was on your liquid assets. In other words, you are looking for a property with potential cash flow, rather than a money pit.
Applying this to real estate investment, what you are looking for is not appreciation, but rather cash flow. Calculating your cash flow means you need to work out how much money from your rental is left after you have paid for all the necessary expenses. What you should do is leave your cash flow alone, and keep that as savings as much as possible. Your cash flow will also go up as rent prices go up. Best of all, your mortgage payments should stay the same. A good cash flow is at least 20% of the money you get in overall. There are some great online resources in terms of calculating your cash flow.
You could also look for REITs (real estate investment rrusts). Although this means you don’t need as much money to get started, it also means the returns are smaller. When you sign up with a REIT, your money is invested in real estate corporations. Hence, you could invest in anything from an apartment block to a retail park. You can keep track with the performance of a REIT through the NASDAQ and stock exchange. A REIT, essentially, is like a mutual fund that only looks at real estate. Before you start, however, you need to think about a few things. The economic conditions of the key holdings is one. Find out how the REIT has performed in the past. Additionally, their future plans are very important. Also, you need to look into who manages the REIT and how they have performed. Last but not least, consider what the real estate market looks like and how this could affect how your REIT will perform.
Guidelines When Thinking Of Selling a House Revealed
June 12, 2017
Step-By-Step Uncomplicated Suggestions When Thinking Of Selling a Property
A lot of folks are investing in real estate so if you want to sell your house, you need to do this now. The only issue today is that it is going to be very tough to sell a house. You might have seen articles saying that selling a house is quite easy or there are adverts that state that they can help you sell your property in only a few weeks or months. Selling a house can be easy if you’re reading to reduce its value, but this is not an advisable thing to do. In the real estate market, the supply completely outstrips the demand, but there are methods on how you may make your house more desirable. We’re going to give you some guidelines to help you with this.
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Check The Curb Appeal of your home
Always understand that first impression lasts so your house should provide a great impression to the customers once they stop in front of the property. You can always put yourself in the shoes of the buyer and see if the curb appeal of the house can attract them. You must assess if the house can offer an excellent impression to prospective customers or it needs some maintenance.
The prospective customer will first see the outside of your house and you need to understand that they always pay attention on how the house looks outside. You should prepare everything in the house and fix everything.
Make Upgrades to Your house
You must make the renovations needed for the inside and outside of your house to make sure that you will probably be able to draw in the customers. They always want a total package when buying a house so you need to make certain repairs. If you’re the seller, you should make sure that you may fix everything. Even so, you must not over improve your house because some enhancements won’t really make a huge difference to the price of the house. Improvements can improve the price of your house and its chances to be sold, but you cannot make any enhancements that won’t benefit you in any way. You must do your homework and only invest on things that can provide the best return.
Remove The Clutter
If you say clutter, these are actually the things that you need to remove from the house when you’re selling it. You need to eliminate all your personal items, collectibles and art works because it will not help in selling your house. Remove all of these things and leave out the necessary furniture to help make the rooms a bit bigger. The goal is to help the buyers visualize what they really want to do in your home when they bought it. They will start visualizing the inside of the house once they are inside so eliminate all of the unnecessary and personal items in the house. It’s going to be quite tough for them to do this if your personal items are inside the house.
Sell For a Competitive Price
If you wish to sell a home in [LOCATION], make certain that you set a competitive value for the house. If you put a lower value, it will be similar to leaving money on the table and if you put a high value, the customers will ignore it. When you talk about home buying, the customers will look at similar houses and compare the prices. If it is too expensive, they will not buy it.
You have to keep in mind that the majority of the customers are relying on home financing so they will not really consider a house that is too expensive. If the price is low, you could sell your house faster, but your investments will not be given back to you.
Consider a Real Estate Agent
You can’t sell a house without professional help and it might be a bad idea to do it by yourself. You do not have the knowledge and experience to manage everything so it’s going to not be a great idea to sell your house without hiring a professional real estate agent. If you’ll do this on your own, there is a chance that the house will not be sold or you will not get an excellent deal. You may get lucky and find an excellent deal for the house, but selling a property is not about luck because huge money is at stake.
You must employ an agent and permit them to manage everything for you. Although you’ll need to pay them, the benefits that you’ll get will certainly outweigh the costs.
If you are going to sell your house, it is best to follow these simple guidelines so you won’t make any mistakes. They might be very basic, but you may assume that all these will help you sell your house quickly.
Buying a House In a Resort Area Is Expensive, But Not Entirely Out Of Reach. Here’s How To Save Money To Purchase Your Vacation House!
August 29, 2016
Buying a Home in a Resort Community
There is nothing more exciting than owning a home in a resort area. Just the thought of it can send your mind to you already owning it. Picturing yourself by the fireplace reading a good book while it snows outside. However, also consider that you may end up broke, unable to rent it, unable to pay the repairs, or unable to afford traveling there. Not to scare you, but you have to think about all of the downsides before you bite the bullet.
The first thing you should know, which should be pretty obvious, is that resort homes are more expensive than primary homes. The price is going to vary greatly depending on the area of the property, whether it is historic or new construction, and how small or large it is. The views are also a big factor when it comes to the list price.
If your home is overlooking the mountain or the ocean, you can probably expect that you’ll be paying a pretty penny for it. The closer your home to the recreations of the resort, the higher the price will be.
You’ll always have to pay closing costs no matter what type of house you buy, and a resort home is not exempt from these costs. You should absolutely contact a realtor, and/or a real estate attorney to figure out how much all of this is going to cost you so that you can decide if you can afford it, and if you can, how much money you need to be putting aside.
Unless you’re Bill Gates, if you’re purchasing a resort home near a ski slope, you’re probably going to need to get a loan from the bank. You’ll have to first figure out how much you’d be able to afford for a mortgage each month. Once you figure that out, see if you have enough of a down payment to allow your mortgage to be that number each month. When you go to the bank, one thing to realize, which is not common knowledge, is that a second home is considered an investment property. How much you’ll pay will depend upon how often you are going to be at the home.
As with any home, you’re going to have to pay to keep the house up, pay your electric and water bills, pay for a landscaper, and other expenses that will depend on the climate and location of the home. Depending on those two things, you’ll be looking at higher or lower costs.
Annual property taxes are generally not cheap when it comes to resort homes. These are going to be determined based on how much the home is actually worth, as well as the location. Keep in mind that property taxes are not fixed. They change from year to year.
A great way to make some extra money toward paying the mortgage is to rent the home out when your’e gone. Speak with a realtor who can help you rent it, and ask her what the rental market is usually like at different seasons. Realize that since resorts are seasonal, you are not going to be able to keep the home rented at all times that you aren’t there.
Is It Financially Feasible To Buy Another House? It Can Be. If You’re Sick Of Renting In An Area That You Frequently Visit, It May Be Time To Think About Purchasing
August 29, 2016
Who doesn’t want a second house? Buying a second home is just about everyone’s dream, however it takes a certain amount of income to be able to afford it; income that most people simply aren’t able to spend. Who doesn’t want a vacation home where they can go anytime they want to get out of the city? So, if you’re lucky enough to be able to afford it, there are still things you should consider before you pull out a down payment check and pull down a loan.
Buying a home in areas like these will give you thousands of memories; from the gorgeous views, the many activities you’ll be able to do, and five-star dining restaurants. Owning a home is difficult, and you should proceed with caution when buying a second. Here are some good things about purchasing this second home.
You’ll have amazing views. If you purchase a home high up in the mountains, you’ll have some breathtaking moments, such as watching the snow fall from a hot tub on the balcony. You’ll also be able to ski whenever you want. Also, you can invite all of your friends and family for vacations, which will be a blast. Since you can go any time, you’re able to go before all the tourists go, and you can have the ski mountain to yourself!
You’ll have access to fun concerts, be able to enjoy five-star spas, walk along the beach in the mornings. The options are endless. You’ll also have a huge variety concerning the types of homes to choose from.
There are also some downsides that will really impact whether or not you want/should take the leap. This is going to be very expensive. Since you’re purchasing a home, its assumed you already have a primary home. Given this, you know how much it costs to maintain and own a home. Multiply what you’re paying and maintaining now by 2x. Resort communities are at least twice as more expensive than a primary home. You should discuss your plan in depth with a realtor who is knowledgeable of the areas you wish to consider.
You’ll be paying twice as much when you make a trip to the grocery store. This is because in resort communities, they’re able to charge this much, so they do. On top of the fact that it costs more for businesses to run, as they’ve got to make up for the “off” seasons where there won’t be much activity, i.e. as much money coming in.
You still are going to have to pay bills. You’ve likely got cable and internet, gas/electric, water. Everything you pay for now at your primary home, you’ll have to pay at this one too. To add to it, if you need repairs or any maintenance, you’re probably going to have to hire someone to do it for you, unless you’d rather fly and do the chores yourself every few weeks.
When you daydream about what it is like to live at your prospective second home during the “on” season, you might want to consider that during the “off” seasons, it may not be much fun. The amenities are scarce, many shops are closed, most concerts are playing elsewhere. Plus, the overall “feel” of the community won’t be the same.
You could get stuck in a hurricane, a snow-storm, a flood. Weather is unpredictable in these communities. Since resorts are usually in the mountains, on a beach, or an island, expect some messy weather at times.
Potential Trouble Accessing The Area
You also should consider how you will get to the home. If it is in the mountains, you may have a tough time to get in and out if there is a snowstorm. For example, maybe you planned a Christmas vacation, but when you get to the airport your flight is cancelled until further notice because of a snowstorm. In this case, your Christmas vacation is either delayed, or fully cancelled.
Renting the home can prove difficult. Also keep in mind, that even when a renter puts down a deposit, they can still cancel. This will leave you with an empty house. All sorts of things can happen regarding renters, so don’t depend on them to pay the mortgage. Owning a second home in a vacation area can be the purchase of a lifetime. However, just be sure to weigh all pros and cons so you don’t find yourself in a mess, or regret.
Juggling Too Many Properties At Once…Sometimes There Just Aren’t Enough Hours In The Day. Here’s When (And If) You Should Hire Someone To Help You Handle Your Rental Properties
August 29, 2016
Property managers are a one-stop deal. They collect rent from your tenants, show the house to prospective renters, collect their applications, run the credit checks, and deal with organizing and overseeing repairs. They’ll even deposit money to your bank account.
Do you need a property mangers? When you’re a landlord, it is often very stressful to juggle a lot of properties. More than likely, you’ve got a day job too. This can make it hard to deal with constant complaints, collecting rent, and scheduling repairs You might be so busy at work that you don’t realize its the middle of the month and you still haven’t gotten rent yet; then, you have to spend time chasing around your tenant. Or, how about if the second floor of your apartment building floods the unit below it? Property managers can be a complete savior. They are also expensive.
It depends on what is more important to you: your time, money, or sanity. Many landlords opt to go spend the money rather than be stressed out in the evenings with 30 missed phone calls from complaining tenants. Whether or not you’ll hire one should be based around your needs.
If you have an excellent property manager, you can expect to always be informed about the property, and will barely be called for help. The point of having one is so that you don’t have to worry about your property.
Think about how many homes or apartment buildings that you own. If you own a fair amount and are having trouble keeping up with them all, you might do better hiring someone to help you out.
If you have a unit 45 minutes away from where you live, it is a good idea to find a good property manager. It is also not a bad idea to find trusted contractors, plumbers, and electricians that you can call if something needs to be fixed. You don’t want to be scrambling around to find someone when your tenant calls.
Landlords should be organized. If you’re a scattered person, you’ll be better off paying someone to take on the task of managing your properties. If you are especially busy with other areas of your life, you also should hire one. The lives of your tenants are important, too. Everyone is busy. Not just you.
The bottom line is that if you don’t have the time or organizational skills to manage your units, you need to hire someone to do it for you. If you don’t take care of your tenants, they’re going to break the lease and move. They’ll also be telling people what a horrible landlord you are, and if the property was an apartment building, word will spread.
Know Thy Neighbors! How To Choose The Perfect Location For You and Your Family To Purchase a Home In
August 29, 2016
Find Your Perfect Neighborhood!
Buying a home is extremely exciting, but you need to be sure that the location of the home is safe, and works according to your lifestyle. If you’re a very active person that loves to go on runs and bike-rides around your neighborhood, you probably shouldn’t move to a bad location, no matter how nice the house is. Don’t sacrifice your lifestyle for a nice house. The way to go about choosing the neighborhood that you want is to look up information about the areas, and visit them yourself.
Also think about your future. Will you be having kids soon? Do you have lots of pets? If you have big pets for example, they’ll need a yard to run around in, and a safe place for you to take them on walks. If you have kids, you don’t want to be worried getting them in the car to go to school the next day. Also, you don’t want to live an hour away from the school you plan to enroll them in.
Think about your commute time to work, too. If you don’t own a car or a bike, you might need to take the bus, or a subway. It wouldn’t be very practical to buy a house that is 20 minutes from the bus stop. Not only because of work, but also if you need to go to the grocery store, even. You’ll have a 20 minute walk to the bus, on top of the time it will take you to wait for the bus. You’ll also have to take up that amount of time on your way home.
Figure out if you’d like to live in a suburb or in the city. If you don’t want to live around constant activity and would prefer to be more secluded, you m
ight opt for a suburb rather than city-living. Are you a foodie? If so, it’s likely that you’ll want to live near a nice grocery store, and many restaurants.
Safety should be your main concern above all else. A good tip is to drive by the house at night. Most neighborhoods look safe during the day. The nighttime is what gives you an accurate view of what the area is like to live in.
It isn’t difficult to look up crime stats online. There are so many websites that can tell you when crimes occurred, and also which crimes. You can find out how many criminals live near you, and also their address. If you see a police car in the neighborhood, don’t be afraid to stop and ask him his opinion about the neighborhood and what types of crimes he has seen over the past few months.
After doing all of the background research, you should have a pretty good indication of whether or not this is the area you want to live in. This is a big decision, so be sure to not focus on how much you love the house, but rather, how much you love the area!