Month: March 2019

Take During Property Inspections

Heating

Check all the heating supplies and make sure they are fitted properly. Over time, boilers can wear down and become non-functioning. The last thing you want to do is to leave your tenants without heating for days on end while you find a repair team. By regularly checking the heating appliances within your properties, you can replace the boiler before it fully breaks.

Water

Make sure that the water runs clear and that no contaminants are coming through the tap. You need to make sure that there are no drips from the sink, and that all loose pipes are connected properly. A leak is easily fixed, however if it is left then you could suffer the consequences of water damage.

Septic System

Checking out the septic system is always a good move. Make sure you note the last time it was pumped, and look out for leakage around the surface.

Wiring

Examine the circuit breaker panel and make sure that the fuse box is fully connected. Take note of any loose or fraying wires around this area and the danger it imposes.

Structure

Checking the structure of your property is vital if you want to rent it out for …

Buy Property On Leased Land

When looking at homes for sale you can tell if the one you are interested in is on leased land if the advertisement says something like ‘manufactured home’ or ‘leasehold interest.’ Also be aware of the word ‘association,’ which will be used to describe areas of the property that you have not explicitly purchased yourself. The price for a home on leased land will also be much lower than the average market price for other similar houses in the area. Leased-land properties are generally built close together and rarely have amenities like a private pool attached to them.

Mortgages are taken out on land for leased properties, but a monthly payment will likely be lower because the original purchase price was cheaper. A fee that you wouldn’t normally have to pay for a traditional home is a land lease fee, which will vary by property. You may also find that some leased-land properties have massive home owner’s association fees that are used to cover the upkeep and maintenance of the leased land areas.

If you are considering buying a property on land for leased it will be beneficial to come up with an outline of your budget for a regular …

Buy Abandoned Property

How to Find One

Listings give clues if a listed property is abandoned. Textual descriptions such as for immediate ownership, must sell, below market value, under appraisal are just some of the most common identifiers used to sig├▒ify that a property is abandoned.

But there are also properties of this kind wich you may mot find on listings. If you think that a property you see is abandoned, you may check with the county clerk. From there, you can already check some underlying conditions such as tax dues and other fees which the owner might not have resolved.

Local real estate agents are also valuable resources for abandoned properties. Depending on your budget, they can show you an extensive choice of foreclosed properties or those nearing such status.

Real Estate Agent Help!

There are paperwork and documentation needed to go forward and make the bid towards owning an abandoned house. Yet, they might be time-consuming. Eliminate these hassles and stresses by seeking the assistance of a local real estate agent.

His or her professional expertise will help your journey from property hunting until ownership smooth one. He or she can also go with you to the abandoned property and there …

Benefits of Living in a Houseboat

Our experience told us that we needed 110 to 120 amp hours of electricity in a 24-hour period when we were stationary… And we were stationary 98 to 99% of the eight years that we were in the Caribbean.

We had two 75 W solar panels located on top of our Bimini… They required no maintenance, made no noise and had no emissions… With today’s higher wattage solar panels we could have eliminated our wind generator.

Why would you want to eliminate your wind generator? It could be noisy, especially at higher wind speeds. It was a Catch-22, the higher the wind speed, the more electricity it would produce, but the noise and vibration would cause you to tie off the wind generator to restore peace and quiet on the boat.

When using solar power and wind power your emissions are eliminated… And since our houseboat never left the Caribbean we did not have to generate heat of any kind.

As far as consuming natural resources is concerned living on a houseboat teaches you how wasteful most people are when it comes to fresh water consumption in a normal home.

An average family of four in the United States uses …

Identifying Investment Opportunities

Look At Historical Prices

Your aim with real estate is always going to be to buy as low as possible, so it is a good idea to have a look at the historical trends of an area you are considering investing in. This way you will have an idea about what you should be expecting to pay and will thus be able to spot a bargain.

In particular, you want to be aware of how much a property can sell when the market is at its peak, so you can get a good idea of how much profit there is to be made and how long you will need to wait until you can achieve that price again.

Analyse Profit and Risk

Never go into an investment opportunity without having first analysed the risk that is involved and comparing it to the potential profit that can be made. Ensure that any building you purchase has been thoroughly examined and you know about any issues so that you can account for them in your budget.

You should always have an estimated profit figure in mind whenever you make a purchase and you should know exactly what you need to do to …

Steps To Effectively Marketing A Home

  1. Price it right, from the start: One of the major obstacles to selling a house, is generally, the listing (or asking) price. This effort should not be based on either ignorance or greed, or haphazard, but, rather, should be based on the guidance of the qualified agent, you hire. Using, what is generally referred to as the C.M.A. (Competitive Market Analysis), you enhance your ability, to price the house, most effectively. This makes sense, because, historically, the best offers, come within the first few weeks, after a house is listed on the market, and, therefore, attracting, as many qualified buyers, in the appropriate price range, as possible, will best realize the objective, of fetching the best available offer.
  2. Coordination between agent and homeowner: The homeowner, and the agent, he hires, must be, on the same page, to achieve the best results. Before hiring an agent, homeowners should interview several agents, discuss philosophies, perspectives, and marketing system, and agree, to a well – coordinated, team – based, effort!
  3. Determine and address curb appeal: It’s often challenging for a homeowner to objectively look at, and evaluate, his own home, for many reasons, but, perhaps, most essentially, the emotional factors! Discuss any and

Rental Property Advertising

You Must Have Professional Photo’s.

It will cost from $200 and up and you could even get a video to post to You Tube and Other Websites. In today’s digital world everyone starts the process of finding a home to rent or buy sitting at a computer. And this makes professional pictures and video a must have priority. Don’t cheap out here!

Ad Copy

Companies spend billions of dollars on formulating ad copy trying to get us to buy their products. There are mountains of books and expensive courses dedicated solely to crafting words that move people. Don’t cheap out here either. The words you write need to motivate people to call you before anyone else. Write – Re Write – Study Other Ads – Get Second and Third Opinions – Re Write – Re Write…

Your Professional Photo’s and Ad Copy will be used in all your online advertising and printed flyers and can be re-used whenever necessary. Which adds to the return on this investment.

FOR RENT Signs

Use a professional quality lawn sign and sign post similar to the signs Realtor’s use to advertise homes for sale. Add a Sign Topper or Sign Rider with the URL …

Avoid Capital Gains on Real Estate

One such way we are talking about involves matching any losses that are incurred. Savvy investors know how to realize their losses to offset their gains for a specific year; thereby cancelling out the payment. There are restrictions that go along with this method. If you do not already have an accountant who specializes in real estate tax laws; you really must hire one. You are definitely going to need one to ensure everything you are doing is according to the law. Otherwise there could be serious consequences. Discussing this capital gains tax-avoiding method really does bring that point to our minds.

A second method you can utilize to avoid paying capital gains tax on real estate is known as the primary residence exclusion. If the home is a primary residence for someone and they have sold it; they are able to exclude up to $250,000 in capital gains from their taxes. If they are a married couple that exclusion increases to $500,000. This is useful information to know if you move around a lot. You will be allowed to exclude more money from your capital gains taxes than if you were to stay in your home for decades. This …

Apartment Building Loans

The rules will not be bent anymore.

In the past, it was not uncommon for a borrower to be a little under the minimum requirements for a loan and still qualify. This is no more. Underwriters at these banks are becoming stricter when it comes to the requirements for getting these loans. In order to qualify, your net worth must meet the minimum requirements or you’re out of luck.

There’s aren’t many loan programs for commercial real estate acquisition or refinance left. In the past few years, it has become increasingly difficult to find a mortgage broker who specializes in apartment building sales. It’s much simpler to find one that specializes in residential real estate opposed to commercial real estate. Not too long ago, it wasn’t very difficult to find and qualify for an 85% loan-to-value mortgage for an apartment building, but the same is not true today. Those people looking to invest in this type of real estate really has their work cut out for there because although there are plenty of brokers out there, it has become increasingly harder to find one that specializes in this type of real estate. I, personally, have never found a broker that …

Investment Property Loan Types

Residential Property Investment Loans

Residential property investment mortgages have similar qualification guidelines as standard owner-occupied mortgages. Although, they do have higher down payment and credit score requirements. Below is a summary of the general guidelines for residential investment mortgages.

  • Credit Score Requirement – The minimum credit score requirement is typically 680 or above for investment mortgages.
  • Debt to Income Ratio – Typically, the debt ratio limit for an investment mortgage is 40% of the borrower’s verifiable income. Besides W2 income, the borrower’s last 2 years tax returns will be needed to calculate the income that can be used from other rental properties or other sources of income.
  • Down Payment – Investment property mortgages require at least 15% down, but the down payment requirement increases with lower credit scores and the greater the number of units in the property.
  • Income – Lenders typically will only use rental income if the borrower has a two-year history of owning rental properties. This is usually documented via the tax returns and schedules.

Commercial Property Investment Loans

Commercial loans typically have higher rates, greater fees, and shorter terms than residential mortgage. The two most important factors for lenders on this loan type include: a positive …