Take The Guess Work Out Of Your Wholesale Property Purchases
May 31, 2008
We have become very concerned by the number of readers writing to us asking how to determine which are the wholesalers(*) that can be trusted. Why are we concerned? Because when we dig a little deeper, we realize that they are buying properties based solely on the recommendation of the wholesaler. They’re guessing which ones to trust, and which houses to buy. That’s a dangerous way to do business.
Are we saying that most wholesalers will take advantage of you? Of course not. We believe in wholesaling. We wholesale many deals ourselves every year. Frankly, the majority of wholesalers are honest, and try to provide data that is as accurate as possible. The problem is twofold: first, wholesalers are sales people and present deals in the best light possible. The Buyers still need to do their due diligence to make sure the deal works for them. Second, wholesalers can only provide what the average renovator may incur as expenses. Your individual, specific expenses in any given deal may be higher or may be lower. It also depends on what exit strategy you’re planning. That’s why two investors can analyze the same deal, and one decide that it works great, and the other decide there’s no profit. Both views may be correct since everyone’s individual costs vary.
11 Steps Away From Buying a Home
May 30, 2008
There is no doubt that the market for houses has been on fire recently. More and more people are taking advantage of low interest rates and easy mortgage loan terms to go from being renters to being home owners. With so many people entering the market, it is inevitable that questions will arise.
There are many things to consider when buying your first home. Some of the most important steps to buy a house are:
Step 1: Learning the home buying process
Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home. Check out the many books in your local library that offer hints to first time home buyers. Read financial web sites on the internet for tips for first time home buyers. You may even want to sign up for a class aimed at first time homeowners. Many towns and cities offer these kinds of classes, and they can be a great source of information for the buyer looking for his or her first home.
Step 2: Find out the pre-qualified price range
Selling a House is Easy
May 29, 2008
The thought of selling a house strikes fear into most people. The contracts, the legalese, the exorbitant costs - they all conspire to make the experience unpleasant at best, and a nightmare at worst. It doesn’t have to be that way, though.
Let’s take a look at three different scenarios for selling the same house. We’ll assume an average house in an average town in America, whose market value has been established at $150,000.
Scenario 1: A Traditional Home Sell
If the value of the home is $150,000, a realtor will often suggest a list price of $149,900 - and rightfully so. Although you lose $100 before the house ever goes on the market, studies show that buyers actually see a difference in the two prices much greater than $100, so the ultimate benefit outweighs the initial loss.
Statistics show that the average home sells for 90 to 95% of the asking price, so let’s suppose you accept an offer of 93% - or $139,400. That’s not bad, but it’s not what you actually walk away from closing with. There are several other costs that figure in.
Property Investing - Am I Buying for Profit or Prestige?
May 29, 2008
All of us have emotional preconceptions and assumptions. They are reinforced and fine tuned by our experiences of life, be they traumatic, disciplined or consistent. Our brains are designed so that the emotional patterning centers mature while we are still in utero, whereas our rational centers begin to mature at about 4 years old and finish maturing through adolescence to early adulthood. Non- rational emotional patterning is therefore a design feature!!
Most of us have some common preconceived ideas, historically these were things like the earth was flat, and we couldn’t fly. Now they are more likely to be about how we structure our lives.
Why do over 3 million people in Sydney need to get up and go to work at the same time, every day and cause massive traffic congestion? Why do we think this is normal? Is it normal? Does it work for us? Why do we keep doing it?
Making it affordable: Nine tips for first time home buyers
May 28, 2008
It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. As a result, many first time home buyers, afraid of missing out, will rush into buying decisions and achieve less-than-spectacular results. As a first time buyer, your biggest challenge is to balance livability and profitability in a way that makes sense for you and your family. Remember, you are buying a home first and an investment second. Of course, there’s no foolproof formula for buyer success, but there are steps you can take to stack the odds in your favor:
Tip 1: Don’t bet on market timing
If you’re waiting for prices to drop in places like Southern California, Washington D.C. or Miami, you may be waiting a very long time. In regions that are built out with limited room to expand, it’s not realistic to assume property values will fall dramatically. Of course, prices in the nation’s super-heated residential markets (much of California, Nassau-Suffolk Counties in New York, South Florida) should cool down at some point, but there’s no guarantee that higher interest rates won’t eat up any savings from a price correction. If your personal circumstances say it’s time to buy, high prices alone shouldn’t keep you on the sidelines. Current interest rates are still historically low, so you may consider locking in a mortgage before rates head north. Even in booming markets, there are good deals for those willing to devote some time and energy to finding them.
What is Tax-Deferred Exchange?
May 27, 2008
Under Section 1031 of the Internal Revenue Code, owners of real estate held for investment or use in a trade or business can swap their property tax-free for “like-kind” real estate. Exchanges are made for people wanting to stay invested in real estate, increase their leverage and to avoid paying hefty taxes upon the sale of property.
Like Kind
- Apartments - Rental Houses - Retail Properties - Commercial - Raw Land - Office Buildings - Industrial - Ranches
Non Qualifying Properties
- Personal Residences - Dealer Property - Partnership Interests - Inventory
Reason to Exchanges
- Restoring Depreciation that will soon expire - by exchanging one property for anotherof greater value.
- To upgrade size and/or quality of investment. An exchange can be utilized to combine the equity of one or more properties into a larger singular investment.
- To change investment location. An exchange can be executed in anticipation of markettrends to maximize appreciation potential.
7 Steps for a Successful 1031 Tax Deferred Exchange
Step 1: Consult with your tax and financial advisors to determine if a tax deferred exchange is appropriate for your circumstances and compatible with your investment goals.
Questions You Always Wanted To Ask A Master Builder But Never Had The Chance
May 26, 2008
Building a house (or lots of them) seems to be an area of knowledge that is kept secret (insiders only), with clients kept in the dark and fed on expensive “cow dung.”
A while ago I asked my US readers of my e-book, “Residential Development Made Easy” for questions they would like to ask a Master Builder.
I found a unique individual, Leonard Manion, who has been very generous with his time (he builds in 48 States) who gives answers straight from the shoulder with apologises to no one.
I must also say that few builders would spend the time to cater to these questions and answer so frankly.
Leonard answers are denoted by the ProCustom Home tag. I have kept the questioner’s identity private, however the answer has been send to them by email.
Question 1.
My wife and I are planning a new small retirement home. We have in mind a couple of builders in this area, and I plan on asking him these questions.
My wife is very adept at planning and researching. Under what circumstances do you recommend we hire an architect? and Why or why not? (This is not a loaded question. I am not an architect and neither is my brother-in-law. We would prefer to build without hiring an architect.)
Condo-Hotels ? A New Second-Home Alternative to Time Shares
May 25, 2008
Condo-hotels have evolved as a better, more reliable second home alternative to time-shares. They are usually attractive, high-rise hotels on the ocean or in other prime locations, and range in price from the mid $200,000s to over 1 million, depending on the size, location, and amenities.
Many of the biggest names in the hotel industry have condo-hotel buildings, including Hilton, Four Seasons, Clarion, and Ritz-Carlton. Donald Trump has numerous condo- hotel facilities across the country, including a building in Fort Lauderdale and another in Sunny Isles, Florida.
In general, condo-hotel properties have been highly successful with all or nearly all units selling out within months of the first offering. For example, the Ritz-Carlton Key Biscayne is a beachfront property with 188 condo-hotel units, all of which sold out a year before the building was even finished. Needless to say, the values of the condo-hotels in this building have gone up significantly.
Property for Sale in Piemonte Italy is Attracting British Interest
May 24, 2008
The Region has four distinct seasons but in general possesses a Mediterranean feel strongly influenced by the proximity of the Mediterranean Sea. Winters are short and cold (the snow and mountains providing spectacular scenery for the region’s ski resorts). Spring and autumn are long and warm while the summer is hot and dry.
Piemonte is home to some of the world’s most respected award winning wines such as Barbera, Barolo, Barbaresco, Dolcetto, Nebbiolo, and Asti Spumante among many others. The most widely grown grape is of the Nebbiolo variety which is used to produce the famous Barolo wine. The region is world famous for its white truffles which attract thousands of tourists each year to celebratory festivals during autumn, the most famous of which is held in Alba. We must not forget the great cheeses such as the Robiola (’tuma’ as the locals call it) which is produced in the Langhe hills. The region is also well known for its hazelnuts which are sold in small craft shops specialising in the production of sweets using this traditional product.
Piemonte contains the provinces of Alessandria, Asti, Cuneo, Novara, Turin and Vercelli. The region forms part of an industrial triangle created by Milan Turin and Genoa.
How to Make a Home for Sale Flyer Using Marketing Psychology
May 24, 2008
Want to sell your home right away, for the highest profit to you? Discover how to improve on the Realtor’s number two sales tool–right after the sign–your sales flyer.
Most real estate agents use a sales flyer template which showcases their listings using out-of-date marketing strategies. For some reason, agents don’t follow successful Internet marketing sales-copy techniques. They put a pretty house picture in the middle, list the home’s features, and finish with a big picture of themselves. But, buyers don’t care what your agent looks like! They want to know why your house outshines every other house in the neighborhood. Buyers want to know what your house can do for them!
Internet marketers learned how to grab your attention and motivate you to buy, NOW. How do they do that? They emphasize benefits to the reader. Not features of the product. Internet readers want to know, right away, “What’s in it for me?”
The purpose of your flyer, to motivate home buyers to look at your home and to remember it, requires that you spend some time thinking about what’s in it for your buyers. Why would they like living in your home? What makes your home better than the other houses for sale in your area?
