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Monthly Archives: June 2018

Tricked in Real Estate Investing

Let’s face it – real estate investing on the whole is not the easiest thing in the world. And it can really be downright intricate and difficult at times and there are many ways that people can get tricked into making an investment that maybe they shouldn’t make.

So how can we make sure that we don’t make stupid real estate investments? How can we make sure that we aren’t the ones being tricked into making an investment that is stupid and unprofitable? Actually it’s easier than you may think and that’s what I’m going to talk about in this article today.

So here are some things that should send up a warning flag in your mind. If you see these things then you should definitely investigate further and potentially walk away. Of course not all of these things will mean that somebody is trying to trick you, it may just be a bad investment… either way you should spend some time to get to the bottom of it before you make any sort of decision.

The first thing to look at is low operating expenses. Sometimes sellers operate buildings themselves to get out of paying management fees. This lowers their operating expenses but if you purchase yourself, chances are that you’ll need to start paying management fees making this a nice little gray area that many people try to exploit.

Next look at property taxes. If somebody tells you that they’re paying property taxes that seem incredibly low, they may just be lying. You’d be amazed how often people just outright lie about things like this. You should always go straight to the county offices and look up the tax records that are public knowledge so that you can see before hand exactly how much property tax you can expect to pay in any given year. You can also discover if the current owner has not paid property taxes for the previous year or two.

Many times if the previous owner hasn’t paid, you will be liable for those property taxes so be on the lookout for that!

Energy efficiency is another thing to look for. Many times sellers claim that their building is energy efficient when in fact it’s not. Check with a local utility company to figure out the actual energy costs of the building and then check with the regulatory commissions to see whether or not the local utility companies are scheduled to increase their rates anytime soon.

So there you have several ways that people try to trick you in real estate investing. Armed with this knowledge you should be able to fend them off without too much trouble. Remember, knowledge is power and the more you know about an investment, the less the chances are that someone will trick you and take advantage of you.

Apartment between House

It’s everyone’s dream to have a comfortable place to live. As the majority of people say, I want to get an attractive house someday, but unluckily it is not so easy to get because it is very costly. But there are several differences between owning a house and renting an apartment. The first difference is the noise. If you are renting an apartment and you are a noisy person, it is very painful for the rest of the people who live with you. For example if you are always playing melodic instruments, listening to loud music and cleaning the house with noisy machines you are really troubling the other people and I’m sure that you wouldn’t want to be in their place. But also, in a lot of cases the noise depends on if the owner permits it or not. In contrast, owning a house is more comfortable if you are a noisy person because you are the owner and responsible for all the things of your house and you don’t have to care of disturbing someone. For example, if you are the owner of the house you are free to even have a noisy party or whatever you want because it is your house. The second and most important difference for me is about the policy. When you live in an apartment, you have to comply with the owner’s policy. For example, you have to ask for him or her if you are free to have visitors, pets, parties, etc. On the other hand, when you rent an apartment, you are not as free as you are when you are the owner of a house to do whatever you want. In contrast, owning a house permits you to be free without caring that someone is dissatisfied with your ideas and decisions about your house. In this case you can paint your house, buy a big tape recorder or do all the things that you want. In conclusion, I prefer owning a house that is better than renting an apartment because I can be free to do whatever I want, without policy and it gives me more sovereignty and relieve.

From the one side, living in a modern apartment building brings many paybacks. First of all, it is cheaper than living in a traditional house and paying different kinds of fees I am not familiar with. For instance, my buddy, who recently bought a new house for his family, told me that it is much easier to live in an apartment and I tend to believe him when I see his bills. So, living in an apartment will definitely help me to save some money. Second of all, since I live alone, I do not need a big house with many rooms. I just need a bedroom and a living room where I can take my guests and have my work place. Another important benefit of living in an apartment is that I will not have to buy much weighty furniture in order to furnish all rooms.

Real Estate Classes

Most people are on their best behavior at the beginning of a job. They are never as well dressed, articulate, or punctual as they are during the job interview. However, fast forward six months, and they show up wearing shorts and flip-flops right before lunch, blaming traffic, and hand in a very inauthentic doctor’s note claiming that a ten-day vacation to Disneyworld is the prescription for this particular malady (there is also a marijuana leaf in the upper right hand corner of the doctor’s stationery).

Given that this is the behavior of 95% of the humans on planet Earth, it is understandable that you may have slacked in the personal appearance department. However, in your chosen career of real estate, appearance is very important.

While you are looking in the mirror, ask yourself the following questions:

1. When you picture a successful realtor, does she look like this?

2. Would I hire me as a realtor?

3. Do I look professional and trustworthy?

4. Is my pants zipper undone right now?

Hopefully, after answering these questions, you know that some changes may be needed (and your pants are now zipped). The purpose of taking real estate classes and continuing education is the principle of continuous improvement. Continuous improvement of your professional appearance is just as important. If you still think that this is superficial and has no bearing on true success in the area of real estate, consider this statistic. If you look at the female realtors that made it onto the list of top 250 realtors in the country, 56% of them wore a jacket in their professional photos. What is the percentage among the pool of other realtors? 47%. Do they know something you don’t?

Corporate Housing

There are different types of corporate housing option based on:

• Location it is situated
• Duration of stay
• Accessibility to essentials
• Transportation facilities

When a corporate housing is located in the heart of the city, it costs more than an accommodation in an interior facility. The cost of the facility also depends upon the utilities that accompany it. These utilities include cleaning services, parking, and furnishing. The housing may charge more in case of infant care being included.

The pricing of such housing arrangements is higher when compared to private lodging as it involves extra services. Furthermore, a long stay will be charged less when compared to a short term stay.

Advantages of this kind of housing:

The benefits of such corporate housing facilities are countless…

• It provides a more comfortable staying environment for the official and executives adding pleasure to the stay.
• After a busy and hectic day of work, the guests can relax in a home-like environment which enhances the experience.
• Saves the guests from detached and unhygienic hotel surroundings.
• Family stay can be accommodated with pleasure. Spouse and children can stay in a comfortable environment.
• Guests can be accommodated in such a kind of stay.
• Official meetings can be conducted with a personal touch away from office.
• Visitors can cook their own food in their own style without having to depend on hotels and restaurants. Guests need not suffer due to unfamiliar eating styles.

Adverse Possession In Real Estate

Span Of Possession

While the period of possession is not the only criteria for acquiring adverse possession, it is an extremely essential one. In most countries, the minimum number of years of possession is 20 years. If this tenure isn’t met, you cannot claim a stake over the ownership.

Intent Of Hostile Possession

Another essential requirement for this type of possession is the intent behind the possession. The court deems that it will consider the transfer of ownership valid, only when the adverse possessor has a hostile intention to take over the land. However, hostile intent does not require deliberate, willful, unfriendly animosity. In fact, hostile intent does not depend on the mindset of the possessor at all. Rather, an act is considered hostile when it is inconsistent with the rights of the record owner and not subordinate to those rights.

Original Owner’s Acquiescence

The law states that this kind of possession is valid before 20 years of possession, provided that the original owner of the land willingly gives the title to the current owner. This can save both the parties a lot of hassle, but is usually extremely rare as no one wants to give away their property for free.

About Real Estate Signs

Coldwell Banker uses a white background sign with a blue logo that is easy to distinguish from most other signs. Over the years little has changed about this sign. A new 3D sign was released not too long ago but only the effect of the design is changed, the core elements remain the same. The only major real estate company that you could confuse a Coldwell Banker sign with is Windermere. Windermere signs also use a white background but the text is also displayed on that white background. What makes it easy to confuse for a Coldwell Banker sign is the blue backgrounded for sale label that runs across the top of the sign.

Sotheby’s sign is relatively close to both Coldwell Banker and Windermere’s sign but just in the fact that it uses white and blue. The Sotheby’s sign is blue with white text. In complete contrast Keller Williams uses an almost completely red background for some of its signs. Depending on the usage of the real estate sign it may also contain a partially white or black background. No other major reality companies use the distinctive red backgrounds but a few smaller ones do.

Century 21 signs have a black background and are the only major real estate company in the United States to do so. The design is finished off with a yellow house logo and white text. A few smaller companies such as Platinum Realty, Reece Nichols, and Semonin Realtors use black signs but they all lack the distinctive yellow house shape.

Each one of these signs you were probably able to recall in your head because chances are you have seen them before. All of these companies have created a brand image that allow someone to instantly identify who is selling a house. Realtors get a sense of authority from their signs, people know who they are and who they work for based off the real estate for sale sign sitting guard in the yard.

Must know about Property Appraiser

Different Types of Property Appraisers

Three types of appraisers are recognized:

  • General
  • Certified Residential
  • Licensed

General appraisers can appraise any and all types of property, and are most likely to work on commercial valuations. Licensed appraisers have the lowest-level licensing status and have less formal training than either General or Certified Residential appraisers. Licensed appraisers have more restrictions on the types of property they can value, and fewer and fewer lenders will engage appraisers at this licensing level for service.

The typical appraiser engaged by a lender to value property for a real estate transaction is Certified Residential.

Appraiser Licensing

Real Estate Appraisers are licensed by individual states, with federal oversight by the Appraisal Subcommittee (ASC). Eligible appraisers are listed on the National Registry which is a database maintained by the Appraiser Qualifications Board (AQB) containing the names and licensing status of State Licensed, State Certified Residential and State Certified General Appraisers who are eligible to perform appraisals in connection with federally-related transactions.

In order to become a licensed property appraiser, individuals must meet a strict set of criteria which includes classroom education and on-the-job training as a trainee.

Appraiser Training

Before a trainee can be sponsored by a more experienced appraiser, he or she needs to first complete classroom-based training (or online training) that covers:

  • Basic Appraisal Principles (30 hours)
  • Basic Appraisal Procedures (30 hours)
  • 15-Hour national USPAP or Equivalent (15 hours)

In addition to classroom-based training, new appraisers are trained in the field by more experienced appraisers that hold a licensing level of Certified Residential or General.

In-the-field training of 2000 hours over 12 or more months is required before being licensed. In-the-field training of 2500 hours over 24 or more months is required before becoming a Certified Residential Appraiser.

Once the training has been completed, the applicant must sit for a long and comprehensive exam as well as undergo an oral exam. Each state maintains a website with information about licensing requirements, training requirements and exam information.

In-the-field Training

Appraiser trainees go out in the field with their sponsors. This means they visit property to be valued and perform certain tasks, including:

  • Measuring the dwelling and any outbuildings
  • Making a diagram of the measurements of the building(s)
  • Taking photographs inside and out
  • Evaluating the condition and the quality of the improvements
  • Evaluating any external influences that may affect value (train tracks, power lines, commercial property, busy roads)
  • Evaluating the neighborhood

About Renewing Your Tenancy

Tenancy Renewal Must Be Discussed With The Landlord Beforehand

More often than not, your landlord will intimate you about the impending cessation of the contract before the actual expiration date. If you wish to continue occupying the property, you’ll have to intimate the landlord of your intentions. Remember, just as you find relocating difficult, your landlord also dislikes the process of screening a new tenant every now and then. It’s therefore very likely that your landlord will gladly extend your lease.

In case your landlord is disagreeing to renew the tenancy on the grounds of self-occupancy and redevelopment, you have the right to ask him for a statutory compensation.

Tenancy Renewal Typically Brings About An Increase In Rent Price

Renewing your tenancy will, in most cases, bring about an increase in the rent. The landlord will provide you with a rent increase notice, which will include things like the new proposed rent, the new lease period, and the amount of time within which you have to communicate your decision to the landlord. About whether you find the demands of the notice agreeable or not, you need to address a letter to the landlord informing him or her of your decision.

You can decide on whether the rent increase is reasonable or not by considering factors like energy charges, property tax increments, rise in insurance values, and major maintenance and repair charges.

Renewing A Tenancy Agreement Comes At A Fee

In case you decide to renew your tenancy, your landlord might ask for a renewal fee. This can be avoided by negotiating reasonably. If the landlord is insistent upon collecting a fee, try to negotiate with him to at least lower the amount. It will be much cheaper for him to settle for an existing tenant than to put the property on the rental market again. So chances are that the landlord will agree.

First Time Homebuyers Tricks from Realtors

Finding the Home You Want

Once you have committed yourself to becoming a homeowner, you can expect the process to be a bit chaotic. More than likely, you’ll make a lot of offers and get a great many counter-offers in return. But don’t be intimidated or allow yourself to get frustrated. A professional can walk you through each and every step so that you’re not overwhelmed.

Financing

You will more than likely have a wide range of financing options, even if you don’t have the best credit. You may be able to find a loan backed by the federal government or get financing that doesn’t require the standard 20 percent down payment. In addition, the state you live in may provide special incentives for first-time buyers. Realtors can provide you with easy-to-understand information on all your options so you can feel confident while shopping around.

Making the Offer

Once you have honed in on the house that meets your needs, your real estate agent can help you decide how much you should offer, as well as any conditions you should request before signing on the bottom line. For example, you could ask the seller to pay your closing costs. Your agent will then take your offer to the seller’s agent, who will then either accept your terms or reject them and make a counter-offer. This back-and-forth will continue until you reach a deal or decide to move on to another option.

When you reach an agreement with a seller, you may be asked to put down a good-faith deposit. The transaction will then move into escrow, which is a period of time (about 30 days, typically) that the seller takes the house off the market. He or she will do so with the expectation that you will buy the home – provided that an inspection does not uncover any serious problems.