I've known a lot of people who have lost money when they sold their homes. In fact, I'm one of those people, and it's happened to me more than once.
There are a number of factors can cause a financial loss when you sell your house, including the need to sell at the wrong time due to divorce or an impending foreclosure, or a downturn in the local real estate market. However, it's also common to lose money simply by making too many expensive changes to the house before putting it on the market. This is how I lost money on real estate, before I wised up.
My most resounding failure in the fix it and flip it market was a house I bought in Spokane, Washington. Knowing what I know now, I would have restricted myself to replacing the carpets and the kitchen and bathroom fixtures, painting inside and out, and buying new appliances. I probably would have replaced the old-style windows, too, to make the place look nicer and appeal to the energy-conscious buyer. These fixes could have been done easily within the two years I needed to live there to avoid capital gains taxes.
Since I didn't know what I know now, I made major renovations, which included moving the bathroom. I did most of the work myself, but the materials alone cost more than I could get back when the house was sold. With the exception of repairs done to the house to make it eligible for an FHA loan and watering the grass, I doubt that any of my major projects really helped me sell the house or increased its value.
If a house is actually sound, with no structural damage or insect problems, the biggest reason it will sell for less than its worth is usually cosmetic. This was certainly true of the house I bought in Spokane. Dirty carpeting, and a wall in the living room covered with mirror tiles, kept most buyers from going any further into the house. I could see past the cosmetic problems and see the home's full potential - but my imagination went a bit too far.
The floor plan was odd, and slightly inconvenient, but leaving the bathroom where it was would have been far more rational, financially. Why didn't I do that? Because my emotions and my nesting instincts took over, pushing aside all thought of future gain or loss.
Let's face it - most people don't buy their own homes with the intention of making a profit, although they certainly hope the house will be a good investment. In fact, the emotional stress caused by the process of buying a house and moving into it can be enough to completely erase any thought of moving again a few years later. However, I know several families who have made a very good living by buying underpriced homes, living in them and fixing them up, and then selling them when the IRS will allow them to do so without paying extra taxes. Clearly, these folks don't make any changes to these houses without carefully considering the bottom line.
After my Spokane adventure, I decided to learn from my mistakes, and find out how to stop losing money on houses. I read books by authors who are experienced in fixing and flipping houses - and then read them again. When I saw that most remodeling projects almost never recoup their costs when the house is sold, I was a little shocked, because I had been guilty of almost every mistake on the list at one time or another. I know many people who have also made the same mistakes, even when they started those remodeling projects with the intention of increasing the value of their homes.
When I bought my next house, I kept that list very firmly in mind. For instance, my kitchen was badly in need of a major overhaul, (or so I believed), and it was far too small. I pored over the latest home decorating magazines, and ideas came flooding into my head. I thought about knocking out some walls, and I even tried to imagine adding on to the house to make the kitchen bigger. New cabinets would be needed, and new appliances...
Thursday, September 11, 2008
Just the Facts: The Duties of a Real Estae Agent
As a real estate agent, you will help people buy and sell houses. You will enroll in a real estate license program to get the knowledge you need to accurately and legally perform your job. This will give you the knowledge to know how much a house is worth, and the skills to accurately represent the cities and neighborhoods in their area. You need to have practicing knowledge of the laws involved with the real estate process. You should also know where a buyer can secure financing.
If people want to buy or sell a house, they get the assistance of a licensed real estate salesperson. Your duties may vary, but you will typically perform the following tasks:
Buying a House
You will meet with the buyers to determine what kind of house they want.
You will discuss how much money they can afford to spend.
You will take them to see houses for sale.
Selling a House
You will complete the proper paperwork to list a house for sale.
You will assist the seller with selecting the sale price for their home.
You will create and place advertisements to get potential buyers into the house.
You will hold open houses.
After the Sale
You will fill out special forms to transfer ownership.
You will help the buyer secure a loan from the bank.
As a real estate agent, you will generally work in an office setting. Since much of the information about properties is available over the Internet, you can also work out of your own home. You might need a formal office, however, to meet with current and potential clients. A lot of time will be spent showing potential properties to buyers, as well as finding new business.
After you get your real estate license, you will work for a broker. When you sell a house, you will receive a commission, a percentage based on the total purchase price of the house.
If people want to buy or sell a house, they get the assistance of a licensed real estate salesperson. Your duties may vary, but you will typically perform the following tasks:
Buying a House
You will meet with the buyers to determine what kind of house they want.
You will discuss how much money they can afford to spend.
You will take them to see houses for sale.
Selling a House
You will complete the proper paperwork to list a house for sale.
You will assist the seller with selecting the sale price for their home.
You will create and place advertisements to get potential buyers into the house.
You will hold open houses.
After the Sale
You will fill out special forms to transfer ownership.
You will help the buyer secure a loan from the bank.
As a real estate agent, you will generally work in an office setting. Since much of the information about properties is available over the Internet, you can also work out of your own home. You might need a formal office, however, to meet with current and potential clients. A lot of time will be spent showing potential properties to buyers, as well as finding new business.
After you get your real estate license, you will work for a broker. When you sell a house, you will receive a commission, a percentage based on the total purchase price of the house.
So now that your Real Estate Deal has closed...WHAT’S NEXT?
I am sure that you already know the scenario. The momentum builds up, your paperwork is all in place after rushing for last minute signatures, etc., you overnight your package in and without you even having to be there, you are the proud owner of a new addition to your real estate portfolio. Now that the smoke clears and everyone goes home from the closing table, you may be left with the burning question…. "Now What?"
After all the adrenaline and getting to the closing table which takes a lot of patience, attentiveness, organization, etc., you may feel a bit of a let down. Not to worry! Amongst all the excitement of now being the proud parent of a new born project (at least new for your portfolio), you should not forget that there are still items and tasks that need your attention.
Immediately After the close.
After you leave the closing table (if you were even there at all), one important thing that you should make sure that you have is a copy. A copy of what, you may ask? A copy of everything that crossed the table during closing, especially anything that you put your signature on. While this may be a common sense item, it is amazing when I talk with clients and members of our group who say that they did not get a copy. If you did not get it right after closing, then make sure that you request a copy from the group that coordinated the closing, whether it is the attorney, title company, etc. This is something that could save a lot of headaches in the future.
A PARTICULARLY important part that you will need is called the HUD, and is the long legal form that shows all of the closing costs and other money transfers. The reason this is so important is that you will need to provide a copy to your accountant at tax time, or if you do you own taxes, you will need the facts and figures.
Hopefully this next step should have already been started during the initial reservation or letter of interest stage. Again, this is a common sense item but still very important. Make sure that you have a separate file or folder that you keep for this new project. Keep it identified so that you can easily go back and find the project that you are looking for. However you do it is up to you and I am sure that everyone has different ways to organize their files (by State or location of project, address, date of acquisition, type, etc.).
You may even want to have a file for the project and subfolders for individual items such as initial deposit (copy of completed reservation form, check, unit selection criteria, etc.), loan application, closing papers, and folder for post-closing events (such as loan payoff, insurance, taxes, etc.)
The good thing is that you have time; time to get things straightened out and prepared.
Don't Forget the Essentials Whether or not you are running your real estate projects through a company (i.e. you have set up an LLC or other company for the transaction(s)) or you are doing this individually, these next items are essential in having a successful real estate project/experience.
Accounting – While the extent to which the following applies will vary according the number of projects you have or the complexity of your business, etc., doing it now will save a lot of headaches, especially during tax time and when you go to sell your project.
After all the adrenaline and getting to the closing table which takes a lot of patience, attentiveness, organization, etc., you may feel a bit of a let down. Not to worry! Amongst all the excitement of now being the proud parent of a new born project (at least new for your portfolio), you should not forget that there are still items and tasks that need your attention.
Immediately After the close.
After you leave the closing table (if you were even there at all), one important thing that you should make sure that you have is a copy. A copy of what, you may ask? A copy of everything that crossed the table during closing, especially anything that you put your signature on. While this may be a common sense item, it is amazing when I talk with clients and members of our group who say that they did not get a copy. If you did not get it right after closing, then make sure that you request a copy from the group that coordinated the closing, whether it is the attorney, title company, etc. This is something that could save a lot of headaches in the future.
A PARTICULARLY important part that you will need is called the HUD, and is the long legal form that shows all of the closing costs and other money transfers. The reason this is so important is that you will need to provide a copy to your accountant at tax time, or if you do you own taxes, you will need the facts and figures.
Hopefully this next step should have already been started during the initial reservation or letter of interest stage. Again, this is a common sense item but still very important. Make sure that you have a separate file or folder that you keep for this new project. Keep it identified so that you can easily go back and find the project that you are looking for. However you do it is up to you and I am sure that everyone has different ways to organize their files (by State or location of project, address, date of acquisition, type, etc.).
You may even want to have a file for the project and subfolders for individual items such as initial deposit (copy of completed reservation form, check, unit selection criteria, etc.), loan application, closing papers, and folder for post-closing events (such as loan payoff, insurance, taxes, etc.)
The good thing is that you have time; time to get things straightened out and prepared.
Don't Forget the Essentials Whether or not you are running your real estate projects through a company (i.e. you have set up an LLC or other company for the transaction(s)) or you are doing this individually, these next items are essential in having a successful real estate project/experience.
Accounting – While the extent to which the following applies will vary according the number of projects you have or the complexity of your business, etc., doing it now will save a lot of headaches, especially during tax time and when you go to sell your project.
Wednesday, September 10, 2008
Working with your Family in your Real Estate Business
We all have families, but not all of us work with them. If your real estate business includes a family member or two, you already know what the good and the bad of it is. Learning how to increase the positives will help in creating not only a stronger platform for your business, but also in stronger ties with your family. This particular balance can be a tough one to manage; however, it is very possible.
As a real estate mom, no one has to tell you how difficult it is to combine your career with your family life. When part of that family life is also an integral key to the success of your business, complications can arise. Issues such as fair compensation, flex-time, favoritism, and familial boundaries can each lend a hand in specific problems you likely won’t face with non-family employees. The goal is to achieve a harmonious working relationship without jeopardizing those all important family ties. To do this, you need to plan ahead and take into consideration any and all possible issues.
Making it Work
Whether you’re worried about being taken advantage of or taking advantage of, some simple tips will have you headed down a much smoother path to the work environment you’re seeking. These 5 tips should get you started:
• Form Definite Boundaries. While this rule sounds simple, it can be difficult to achieve. The best way to handle it is open communication from the very beginning. Explain clearly that while on the job, it is best to keep family chit-chat to an absolute minimum, if at all. Let them know this goes both ways – that you won’t be calling them at home on the weekend to discuss work. Keep the two entities as divided as possible!
• Keep the Clients Separate. Sticky situations can sometimes arise when a family member is a social friend of a client. Business is business, and any possible work issues need to be kept confidential and not turned into fodder for gossip.
• No Hard Feelings. Real estate is a competitive environment. Realize that the monthly sales figures could cause negative emotions in whoever is on the lower end. Be supportive to each other to get through these moments of crises – and be prepared to deal with them when they occur.
• All Employees are Treated Equal. From day one. If your normal course of action is to put a job offer in writing, including compensation and benefits, don’t deviate from this with family. While the process may seem more casual, it isn’t. You need to be as effective and vigilant with family employees as you are with non-related ones.
• Communication is Vital. You already know this, but don’t forget it’s just as important when dealing with your family in your workplace as it is in other areas of your business. They deserve the respect of one-on-one business meetings to voice their concerns and to discuss their job, and your business, in general. Miscommunication is the biggest cause, by far, of poor job relations. Keep this in mind, and you’ll go a long way in keeping everyone happy. Including yourself!
All in all, the way you treat an employee should be consistent. Whether a part of your family or not, creating the correct boundaries from the beginning is imperative. However, that being said, a non-related employee probably hasn’t seen you in your PJ’s, or at family gatherings, or visited you when you had your first baby. Therefore, normal innate boundaries aren’t going to be in place with family unless you strive to put them there.
As a real estate mom, no one has to tell you how difficult it is to combine your career with your family life. When part of that family life is also an integral key to the success of your business, complications can arise. Issues such as fair compensation, flex-time, favoritism, and familial boundaries can each lend a hand in specific problems you likely won’t face with non-family employees. The goal is to achieve a harmonious working relationship without jeopardizing those all important family ties. To do this, you need to plan ahead and take into consideration any and all possible issues.
Making it Work
Whether you’re worried about being taken advantage of or taking advantage of, some simple tips will have you headed down a much smoother path to the work environment you’re seeking. These 5 tips should get you started:
• Form Definite Boundaries. While this rule sounds simple, it can be difficult to achieve. The best way to handle it is open communication from the very beginning. Explain clearly that while on the job, it is best to keep family chit-chat to an absolute minimum, if at all. Let them know this goes both ways – that you won’t be calling them at home on the weekend to discuss work. Keep the two entities as divided as possible!
• Keep the Clients Separate. Sticky situations can sometimes arise when a family member is a social friend of a client. Business is business, and any possible work issues need to be kept confidential and not turned into fodder for gossip.
• No Hard Feelings. Real estate is a competitive environment. Realize that the monthly sales figures could cause negative emotions in whoever is on the lower end. Be supportive to each other to get through these moments of crises – and be prepared to deal with them when they occur.
• All Employees are Treated Equal. From day one. If your normal course of action is to put a job offer in writing, including compensation and benefits, don’t deviate from this with family. While the process may seem more casual, it isn’t. You need to be as effective and vigilant with family employees as you are with non-related ones.
• Communication is Vital. You already know this, but don’t forget it’s just as important when dealing with your family in your workplace as it is in other areas of your business. They deserve the respect of one-on-one business meetings to voice their concerns and to discuss their job, and your business, in general. Miscommunication is the biggest cause, by far, of poor job relations. Keep this in mind, and you’ll go a long way in keeping everyone happy. Including yourself!
All in all, the way you treat an employee should be consistent. Whether a part of your family or not, creating the correct boundaries from the beginning is imperative. However, that being said, a non-related employee probably hasn’t seen you in your PJ’s, or at family gatherings, or visited you when you had your first baby. Therefore, normal innate boundaries aren’t going to be in place with family unless you strive to put them there.
Smart Real Estate Investors
"There's talk about the real estate bubble bursting," says Neb Essayas, "but what's happening is that sellers aren't making windfall profits anymore. The housing market has been so hot over the past five years that so-called investors could afford to pay market value, watch the property appreciate, and sell at a profit."
Because Essayas, the founder of Premier Real Estate Solutions, LLC (www.ReadEstateMadeEasy.net), uses a different strategy, he isn't even breaking a sweat - despite the slowing pace of home re-sales, which were down 2.8 percent in January, and the 5 percent drop in new home sales. In fact, Essayas says that the market slowdown in major cities represents "the most exciting time for our business.
Utilizing private lenders, Premier Real Estate Solutions buys properties in northern Virginia, central Maryland, and the District of Columbia at 25 to 50 percent below market value. The company then renovates the homes and re-sells them at market value.
Premier Real Estate Solutions makes its profit going into the deal - through buying the right properties at the right prices. "As a rule of thumb, we do all of our numbers right and build in our profit margin before purchasing the property," says Essayas. "We only buy two types of properties: those where we can quickly create equity through renovations and those where we buy equity from motivated sellers who need a quick sale."
Now that the real estate market isn't so forgiving, Essayas says that buying the right properties at the right prices is key. "The numbers have to be right, not only to ensure that our company makes a profit, but to secure our private investors' loans."
Those numbers are providing hot returns on investments, regardless of the price range of the home. For example, Premier Real Estate Solutions purchased a home for $405,000, spent $1,000 in upgrades, and sold the home for $599,000. Similarly, Essayas put $32,000 of renovations into a home purchased for $229,000 and sold it for $390,000. "Recently, within a three and a half week period, we bought a home for $77,000, spent $12,000 fixing it up, and found a buyer willing to pay $170,000," he says.
Using private investments to purchase and renovate homes gives Premier Real Estate an advantage over developers using institutional lenders, in that the company can move nimbly when it finds a bargain. "The private capital we've been using has allowed us to close on these properties in as little as three days," says Essayas.
As for investors, they appreciate being able to earn a better return through Premier Real Estate than they can with traditional investments. According to Harry Roupas, who has made significant investments in Premier Real Estate Solutions properties over the past three years, "The excellent returns I have seen on my investments demonstrates to me that Premier's business model is sound. Buying properties below market value, renovating them, and selling them at a profit is the right approach for today's real estate market, but you need a Premier Real Estate to make it all work just right."
And Premier Real Estate is hard at work, planning to purchase between 50 and 60 properties in the Washington, D.C. Metro area this year, and looking to a future in larger development projects, such as condominiums and hotels.
While Essayas anticipates that the market's cooling trend will result in a longer turnaround time for sales, he emphasizes that "we factor higher carrying costs into our equation before making an offer to purchase a property."
He concludes, "Because we never pay market value for a property to begin with, we can continue to take advantage of the current real estate market to secure properties at prices well below market level, renovate them, and sell them at a profit."
Because Essayas, the founder of Premier Real Estate Solutions, LLC (www.ReadEstateMadeEasy.net), uses a different strategy, he isn't even breaking a sweat - despite the slowing pace of home re-sales, which were down 2.8 percent in January, and the 5 percent drop in new home sales. In fact, Essayas says that the market slowdown in major cities represents "the most exciting time for our business.
Utilizing private lenders, Premier Real Estate Solutions buys properties in northern Virginia, central Maryland, and the District of Columbia at 25 to 50 percent below market value. The company then renovates the homes and re-sells them at market value.
Premier Real Estate Solutions makes its profit going into the deal - through buying the right properties at the right prices. "As a rule of thumb, we do all of our numbers right and build in our profit margin before purchasing the property," says Essayas. "We only buy two types of properties: those where we can quickly create equity through renovations and those where we buy equity from motivated sellers who need a quick sale."
Now that the real estate market isn't so forgiving, Essayas says that buying the right properties at the right prices is key. "The numbers have to be right, not only to ensure that our company makes a profit, but to secure our private investors' loans."
Those numbers are providing hot returns on investments, regardless of the price range of the home. For example, Premier Real Estate Solutions purchased a home for $405,000, spent $1,000 in upgrades, and sold the home for $599,000. Similarly, Essayas put $32,000 of renovations into a home purchased for $229,000 and sold it for $390,000. "Recently, within a three and a half week period, we bought a home for $77,000, spent $12,000 fixing it up, and found a buyer willing to pay $170,000," he says.
Using private investments to purchase and renovate homes gives Premier Real Estate an advantage over developers using institutional lenders, in that the company can move nimbly when it finds a bargain. "The private capital we've been using has allowed us to close on these properties in as little as three days," says Essayas.
As for investors, they appreciate being able to earn a better return through Premier Real Estate than they can with traditional investments. According to Harry Roupas, who has made significant investments in Premier Real Estate Solutions properties over the past three years, "The excellent returns I have seen on my investments demonstrates to me that Premier's business model is sound. Buying properties below market value, renovating them, and selling them at a profit is the right approach for today's real estate market, but you need a Premier Real Estate to make it all work just right."
And Premier Real Estate is hard at work, planning to purchase between 50 and 60 properties in the Washington, D.C. Metro area this year, and looking to a future in larger development projects, such as condominiums and hotels.
While Essayas anticipates that the market's cooling trend will result in a longer turnaround time for sales, he emphasizes that "we factor higher carrying costs into our equation before making an offer to purchase a property."
He concludes, "Because we never pay market value for a property to begin with, we can continue to take advantage of the current real estate market to secure properties at prices well below market level, renovate them, and sell them at a profit."
Make Big Money In Real Estate
Real Estate is one of the oldest forms of investing known to man.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case.
As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country.
Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.
One of the problem of Real Estate is his lack of liquidity.
Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor.
A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.
Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.
Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:
* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.
It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.
Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today's prices. Then hold the property until you can resale for large profits. Don't sell all your desirable properties and keep just lemons.
If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register's Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell.
As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits.
Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don't buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical.
Constantly look for bargains and quality properties with exceptional features that will make the sale easier. Follow up on For Sale signs, make inquiries.
When discouraging elements occur, minimize your losses by whatever means available. Don't throw away money on repairs for poorly located property or in an area of surplus rental units.
Before you attempt to sell, find out how the prospect can use the property profitably. Ask yourself if you would purchase it if you were in the prospect's shoes. Ask yourself if the future use will fit any of the many types of specific businesses. Can a hospital, a bank, an apartment complex, condominium or professional building be located on the property.
Learn to analyze the pros and cons of a real estate problem.
Break it down into its various elements. Know if the answers you come up with are satisfactory and practical. Try different approaches to the problem.
You are necessary looking for the "top" or "bottom" of the market, or the current economic situation. You are looking for a variety of properties which have a higher value dependent on the use that can be established for them.
There are always opportunities in Real Estate during good times and bad, but it is up to you to pick and choose only those very best deals, especially during times when it appears that Real Estate values and demand have reached their peak or in times when it is practically impossible for most anyone to get bank loans due to the tight money market or impossible interest rates.
Real Estate investing is easy and fortunes are made in a simple manner. For example, and investor decides that a desert area will eventually become an industrial development. He purchases a number of acres at a very low price. If his guess turns out to be correct, ten years later he sells the land hundred times more than what he paid for it.This can happen in any part of the country and is not an exceptional case.
As the population keeps growing in the U.S., land prices continue to raise and it means that Real Estate will continue to offer one of the best investment opportunities in the country.
Compared to most forms of investment, Real Estate offers greater profit potential. Of course, not every piece of land will turn out to be a winner, and despite the great potential rewards in some cases risks are involved, so the necessity of careful study before invest.
One of the problem of Real Estate is his lack of liquidity.
Liquid assists are those easily converted into cash like stocks or bons. Most Real Estate investments take years before you can make some money, so it is not wise to tie up all your assets in this type of investment. Your financial situation will determine how much you can wisely invest in properties.
There is a difference between a land speculator and an investor.
A speculator buys land with the intention to make a quick sale and fast profits and will not hold land for a long period of time. An investor, on the other hand, looks for a long time gain, and usually buys only what he can afford to keep for an indefinite period of time.
If you are new at this field, it is wise to refrain from any a speculation until you become more informed, and you will have to devote considerable time to study and research. It is wise also to consult specialists before you act.
Without realizing it, you already made a very successful investment in Real Estate if you bought your own home.
Before you look for areas to invest, consider the condition of your own house. If you have any plan for selling it, good landscaping has been known to considerably increase the value of a home.
Large profits can be attained by purchasing run-down homes and restoring them for eventual selling, but some factors have to be considered:
* You must know something about architecture and remodeling and get and idea of how much it will cost to get the house back into shape. Consider what you will be able to do yourself and what it will cost you if you have to have it done.
* The location of the house is the most important factor to consider. Study the neighborhood, shopping, and transportation facilities.
It can also be profitable to lease land for commercial use. Land which borders highway is extremely valuable for purpose such as warehouse, gas station, etc.
Land development companies frequently run advertisements offering country retreats. Be wary of these offers as they themselves make a large profit at the time they sell you the land, so it is much more profitable for you to buy your own.
When you buy property, buy at a price that involves a minimum financial risk. Invest only a modest amount of your own capital, when you sell, determine if a cash or installment sale is the best, based on your over-all income tax status. Learn by looking back on the mistakes made in the past and by reviewing the opportunities you have missed.
Prepare a list of all properties available in your area and think up the best future use of the properties. Learn to purchase land before there is a demand. To buy land well in advance is the only economical way at today's prices. Then hold the property until you can resale for large profits. Don't sell all your desirable properties and keep just lemons.
If you are willing to leave the cities, you should not have any trouble finding inexpensive land for sale. If you discover a tract of land appealing to you but not listed for sale, contact the Country Register's Office and he will tell you who is the owner. Get in touch with him and he could be willing to sell.
As a rule purchasing tracts of land within thirty miles from a growing city is often a sound investment. Deal only with qualified realtors. Be careful of individuals who offer quick profits.
Before taking any action, study what has been written about the subject. Know why you should and should not buy. Stay conventional and don't buy white elephants. Look for hidden defects and make the property attractive before offering it for resale. Study local conditions and be sure it is practical.
Constantly look for bargains and quality properties with exceptional features that will make the sale easier. Follow up on For Sale signs, make inquiries.
When discouraging elements occur, minimize your losses by whatever means available. Don't throw away money on repairs for poorly located property or in an area of surplus rental units.
Before you attempt to sell, find out how the prospect can use the property profitably. Ask yourself if you would purchase it if you were in the prospect's shoes. Ask yourself if the future use will fit any of the many types of specific businesses. Can a hospital, a bank, an apartment complex, condominium or professional building be located on the property.
Learn to analyze the pros and cons of a real estate problem.
Break it down into its various elements. Know if the answers you come up with are satisfactory and practical. Try different approaches to the problem.
You are necessary looking for the "top" or "bottom" of the market, or the current economic situation. You are looking for a variety of properties which have a higher value dependent on the use that can be established for them.
There are always opportunities in Real Estate during good times and bad, but it is up to you to pick and choose only those very best deals, especially during times when it appears that Real Estate values and demand have reached their peak or in times when it is practically impossible for most anyone to get bank loans due to the tight money market or impossible interest rates.
The Real Estate Mom’s Home Office
Combining work with home life for the real-estate mom is a never-ending battle between business and family obligations. One of the ways to balance this ongoing issue is for the real-estate mom to create a home office. Here, she can have a place to focus on her business while being close to her kids. The key to optimizing this strategy is organization.
Organization comes in many forms. To begin with, as a real estate professional, you need to have the proper tools at your disposal. While this probably sounds simple, lack of organization can be a death knell to your business. It doesn’t have to be, with the proper planning and execution; your home office can exceed your expectations!
To help you get started, here are four tips to organize your real-estate home office:
1. Organize your real estate desk with the proper equipment. You need some basics including a dedicated desk area for just you that won’t be used by other family members. You will also need room for your laptop or your own dedicated desk top computer separate from the one the kids use. To organize that area get some of the basic necessities, without letting your area become too crowed: a good filing system, a garbage can, and basic office supplies such as pens, highlighters, paperclips, a stapler, and paper. Get rid of the clutter and leave plenty of room to spread out your files and work.
2. Different in-baskets for personal and business. You’re a mom as well as a real estate professional, so be sure to have a place your kids can drop permission slips and other school related material in for your review. Sound impersonal? It isn’t – and in one quick glance, you’ll know what school items need your attention. The other, of course, is for your real estate business, so you have a spot to put essential paperwork until you have a chance to file it.
3. Set up a planning tool, such as Top Producer. This is so essential, I cannot stress it enough. You absolutely need this so you can easily view both personal and business functions. From the meeting with your child’s teacher to the meeting with that new client, all in one place, easy for you to see. Not only helpful, but vital, this will completely erase the chance of you double scheduling yourself. Nothing is worse than having to choose between your children and an important business meeting.
4. Setting Limitations. Your kids are important. Part of the reason you’re at home is so you are accessible to them. That being said, however, they also need to understand you’re working. Set limitations with them so they know how to approach you in non-emergency circumstances. If you’re in the middle of a conference call in which you cannot be interrupted, let them know this. You can even designate a signal – it can be as simple as a closed door, or a bandanna on the doorknob – that lets them know Mommy can’t be interrupted unless it is an emergency. Explain to them what an emergency entails to you, because remember – to a child, if they want your attention, it’s always an emergency!
These tips are just the beginning of the steps you can take to get your real estate home office organized and running smoothly. As you spend more time working from home, you’ll discover what is successful for you and what isn’t. A home office can truly bridge the gap between career and family – if done properly, with the correct expectations in place. It will allow you to remain the force in your family you need to be, as well as continuing to get your career where you want it to be.
Organization comes in many forms. To begin with, as a real estate professional, you need to have the proper tools at your disposal. While this probably sounds simple, lack of organization can be a death knell to your business. It doesn’t have to be, with the proper planning and execution; your home office can exceed your expectations!
To help you get started, here are four tips to organize your real-estate home office:
1. Organize your real estate desk with the proper equipment. You need some basics including a dedicated desk area for just you that won’t be used by other family members. You will also need room for your laptop or your own dedicated desk top computer separate from the one the kids use. To organize that area get some of the basic necessities, without letting your area become too crowed: a good filing system, a garbage can, and basic office supplies such as pens, highlighters, paperclips, a stapler, and paper. Get rid of the clutter and leave plenty of room to spread out your files and work.
2. Different in-baskets for personal and business. You’re a mom as well as a real estate professional, so be sure to have a place your kids can drop permission slips and other school related material in for your review. Sound impersonal? It isn’t – and in one quick glance, you’ll know what school items need your attention. The other, of course, is for your real estate business, so you have a spot to put essential paperwork until you have a chance to file it.
3. Set up a planning tool, such as Top Producer. This is so essential, I cannot stress it enough. You absolutely need this so you can easily view both personal and business functions. From the meeting with your child’s teacher to the meeting with that new client, all in one place, easy for you to see. Not only helpful, but vital, this will completely erase the chance of you double scheduling yourself. Nothing is worse than having to choose between your children and an important business meeting.
4. Setting Limitations. Your kids are important. Part of the reason you’re at home is so you are accessible to them. That being said, however, they also need to understand you’re working. Set limitations with them so they know how to approach you in non-emergency circumstances. If you’re in the middle of a conference call in which you cannot be interrupted, let them know this. You can even designate a signal – it can be as simple as a closed door, or a bandanna on the doorknob – that lets them know Mommy can’t be interrupted unless it is an emergency. Explain to them what an emergency entails to you, because remember – to a child, if they want your attention, it’s always an emergency!
These tips are just the beginning of the steps you can take to get your real estate home office organized and running smoothly. As you spend more time working from home, you’ll discover what is successful for you and what isn’t. A home office can truly bridge the gap between career and family – if done properly, with the correct expectations in place. It will allow you to remain the force in your family you need to be, as well as continuing to get your career where you want it to be.
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