Why Buy Investment Property or Do I Want to be a Landlord
First lets look at the advantages to buying a multi unit property
Cost per Unit: multi family housing is generally cheaper. The cost of a duplex is less than the cost of two homes. Less debt and therefore less risk also means you have the potential to own more of your property than the bank.
Vacancy Rate
By definition, a multi family property is never 100% vacant, meaning there are always some renters helping to pay expenses. What happens if you lose your tenant in your single family house? You lose all of your income and you have to pay the mortgage out of your savings. If you lose a tenant in a three family house, you’ve only lost one third of your income. The other two units will help cover your mortgage until you rent the vacancy. One reason why owning small apartment houses is smarter that owning single family homes.
Easier [...] Continue Reading…
Starting a Real Estate Business
The real estate industry is very sensitive to economic changes like interest rates and the cost of materials in building houses. Interest rates in particular can easily swing the number of sales that are completed during any quarter of the year. Rising interest rates will slow down the sales and falling rates will aid the sales of real estate. This is an important fact in the real estate business as this can absolutely cause rapid changes in income from the sales that can be made.With this in mind, the time to buy an agency that comes up for sale may be when the real estate business is in the doldrums. A hot real estate market will make an existing firm worth more, as their income will be higher during this period of time. Of course if you follow this course of action, you will have to wait out the [...] Continue Reading…
Different Ways to Invest in Real Estate
There are many different ways to invest in Real Estate. Many people understand the importance of investing, especially in Real Estate, but don’t know the many different opportunities that are available in this magnificent field.
Every week there are many more Real Estate deals that show up at my office than either I or my staff can handle. It is like sifting for gold. Many are discarded. The possible deals that are left have preliminary research performed and the gold starts appearing. If the deal doesn’t fit my buying criteria, I will sell the Purchase Agreement to another investor who will end up owning the property. Of the deals that I close on, I package some of them up and sell them to other investors with seller financing in place.
All these properties will need to be financed. Some investors don’t want anything to do with the “hands on” aspect of [...] Continue Reading…
What Every Landlord Should Know About Discrimination
The Fair Housing Act of 1968, as amended, prohibits discrimination on the basis of race, color, religion, nationality, familial status, age, and gender. Many state and local laws also forbid discrimination on the basis of sexuality or source of income, and the Americans with Disabilities Act makes it illegal to discriminate against the disabled. If you harbor any such prejudices and would allow them to come into play when renting a housing unit, then you’re probably not cut out to be a landlord. However, many sincere real estate investors make honest mistakes that result in discrimination lawsuits. The best way to avoid them is to be informed.
Watch the Wording of Your Ads
The Fair Housing Act (FHA) may appear to be common sense, and most people would never think of discriminating against people of different races or religions, or on the basis of gender. However, it is important to note [...] Continue Reading…
How To Create A Winning Real Estate Business Plan
More and more people it seems have been getting into the market for real estate investing, but the most successful will be those who can create a winning real estate business plan.This real estate business plan will serve a number of different purposes, and it is important for any would be real estate investor to understand just how important such a plan can be.Attracting Capital To Close The DealOn the one hand, a well thought out, professional and polished real estate business plan will help the real estate investor to attract the capital he or she needs to close those once in a lifetime deals.The secret to success in the world of real estate is that so many of the transactions can be done using other people’s money, and that is where the real estate business plan comes in. The real estate business plan will detail to [...] Continue Reading…
The ABCs of Real Estate Investment Trusts
Let us take a look at how these funds operate, their structure, their return potential and what they mean to you as an investor.
History of Reits :
The concept of Reits originated in the USA. These products grew in popularity over a period of time, as the returns generated by these funds were much better than that from other forms of investments such as bonds, government savings schemes and the like. Now, such products will be soon available in India with SEBI having taken the first few steps to allow mutual funds to set up such funds.
Functioning of a Reit :
A typical real estate investment trust will be structured like a mutual fund. It will pool resources from investors and will invest in different forms of real estate such as commercial complexes, the housing sector, land bank and so on. It is also possible that such funds will have rental [...] Continue Reading…
Vendor program arrangement is a kind of financing arrangement in which finance is offered to the customers as a sales, marketing & deal closing tool.
There are different types of foreclosure auctions, but they all have some common denominators. (1) Foreclosed property in the form of a house, land and sometimes personal property, like jewelry, cars, or furniture. (2) A seller. This may be a bank or other lending institution or the city/county government for back taxes. (3) A bidder. These individual can be real estate agencies, other investment brokers, or private citizens.
The auction begins with the auctioneer reading a variety of legal notices and legal descriptions of the property being sold. The opening bid is set by the foreclosing lender. Most usually this bid is equal to the outstanding balance on the loan, the interest accrued, and attorney fees with any other fees connected with the sale. If no bids are higher than the opening bid set by the lender, then the property will be bought by the attorney carrying out the sale [...] Continue Reading…
FHA Purchase Real Estate Financing
If you need to obtain necessary financing for the purchase of a home it is important for you to know that there are alternative lending sources other than banks and traditional lenders that you can use for a mortgage, even if your credit or other circumstances are less than ideal. There are government sponsored programs that allow a variety of people wit different backgrounds to purchase a home with a low or no down payment and affordable interest rate. Fha purchase financing is an option many people who are involved in the buying process.
Fha purchase financing is financing insured by the Federal Housing Administration which is a government owned organization that works to extend mortgages to people who do not meet traditional lending criteria. The Fha was established under the National Housing Act, with their goal being to extend financing to people with repayment abilities who otherwise lack the [...] Continue Reading…
Why Do We Need To Hire Real Estate Property Advisors Before Buying Properties?
Hiring real estate property advisors before buying properties is an absolute must because these advisors usually know about a wide array of opportunistic and value-added properties plus their knowledge regarding investments in real estate and assets is really helpful in making decisions regarding property investment.
But before you hire any real estate property advisor, make sure that you check his/her credentials. He or she must have hands-on real estate and capital market experience. Apart from that, it is of paramount importance that real estate property advisor has dealt with investment of real estate funds.
In an ideal scenario, overall investment strategy of your real estate property advisor would be based on exploiting the linkage between the high demand and liquidity for stabilized, core real estate assets. In case of low demand, real estate property advisor should have strong real estate skills.
An ideal real estate property advisor is the one who prepares [...] Continue Reading…
How Green is your Home?
You would need to have been living on Mars if you had not heard of global warming and the negative effect we are having on our environment. As a result many people have become leaders in green living and spend much of their day devoted to ensuring they are reducing their carbon footprint. Whilst not all of us are this devoted there are a number of things that we can do to make our homes more environmentally friendly which can often save us money as well. Here we have listed some top tips for you to try. 1. When you replace light bulbs go for the energy efficient variety. These use a different system to produce the light, using a fraction of the energy used by traditional bulbs and they also last up to twelve times longer. Lighting is estimated to make up between 10 and 15% of [...] Continue Reading…
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