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Ideas and Opinions from Donald Trump and The Trump Entrepreneur Initiative Instructors.
All I Needed to Know About Negotiating I Learned From a Cab Driver
When I first started investing in and selling real estate many years ago, I knew I needed to become a student of negotiating. I read every book I could find on the subject, practiced my skills at flea markets and memorized scripts to exhibit the confidence needed to successfully negotiate. To be perfectly honest, I thought I was a darn good negotiator.
In 2008, we moved to India for a few months while my husband took a temporary assignment with his company. It was here that I met Muktar, a local cab driver. Not only was Muktar my driver, he was also
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10 Ways to Keep Your Real Estate Contracts Together
Buyer's remorse. Appraisal problems. Loan denial. We all know the pitfalls of what can cause a contract to fall apart. Here is a list of 10 ways to keep that agreement together.
Don't allow closing dates too far into the future. If necessary, a closing date can always be extended through an addendum to the contract. The quicker the closing, the easier it is to keep everything moving and all parties on their toes. If a buyer is in a lease and claims to not be able to close quickly, offer to pay the remainder of their lease or some other incentive
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Determining ARV
As I stated in my last post about formulas, I would address how to calculate a figure for ARV in a post of it's own. Simply put, ARV, to a real estate investor, means Approximate Retail Value or After Rehab Value.
ARV is one of the most important values to the real estate investor in calculating profit. It is extremely important for this figure to be realistic and formulated for the market in which the property will be sold.
"The market in which the property will be sold". Remember that sentence. Write it down. Unfortunately, when calculating ARV, many real estate investors and
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Do You Have a Formula?
Over the past week, I have received quite a few inquiries from real estate investors asking me to help them build their portfolios through purchase-rehab-sell (I despise the word "flip"). When I initially speak with an investor, I ask a lot of questions. Unfortunately, many don't have some of the most important answers.
To invest in real estate, you must have a goal, an objective. You must also have a formula. We cannot create a successful real estate investment plan without the formula.
It's really very simple: P = ARV - (PC + SE + HC + RC). Where P = profit, ARV
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Granny-Pods Coming to a Neighborhood Near You?
N2Care has created what they claim to be the "latest" in elder care. More correctly called the MEDCottage, these shed-like structures are placed in a backyard for those folks with a medical need as determined by a physician. As per the website, "The MEDcottage is a state-of-the-art mobile medical temporary home for persons with special needs or disabilities".
Still in it's infancy, the Salem, Virginia based company sees these modular structures as an alternative to a nursing home or assisted living facility. The pods are fitted with items such as automatic pill dispensers, special floor lighting and monitoring technologies such as water
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Happy Memorial Day Weekend!
I wanted to take just a few moments to thank our readers who are serving or have served in the Armed Forces of the United States. Having spent much of my life living in a military town, I understand and appreciate the sacrifices you have made and continue to make. Thank you for protecting us, fighting for us, and above all, loving our country and the freedoms it provides us.
Thank you to all the readers for taking the time out of your day to read my blog posts. I receive some wonderful correspondence from the readership here at The Trump Blog
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5 Easy Ways to Be Found Through Online Directories
Most real estate investors purchase their investments under the name of a corporation. Obviously, that is smart both legally and for accounting purposes, but it is also smart for marketing purposes.
Any business that had a product or service to sell knows that it is a lot easier to sell to people who knock on your door rather than vice-versa. This also applies to the internet marketing world.
There are many free, online directories where you should be listing your business. By doing so and using keyword rich titles and descriptions, you will see your traffic increase along with your search engine rankings.
If
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The Home Buyer Tax Credit is Over....So Now What?
Whether you agreed with the home buyer tax credit or not, it did cause a flurry of home buying and excitement within the real estate market. Now that it's over (except for a select few, see my post about those who qualify for an extension), what will happen to the housing market?
Personally, I am not a patient, "wait and see" kind of gal. All I care about are my clients and what their properties are doing....right now. Yes, I keep an eye on trends and know when the good times are for selling and buying and when the bad times are
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Where to Find Government Owned Homes
Finding government owned homes in your area is very easy and it's also free. Here is a handy list of the applicable websites:
HUD Homes:
http://portal.hud.gov/portal/page/portal/HUD/topics/hud_homes
USDA Homes:
http://www.resales.usda.gov/
VA Homes:
https://va.equator.com/index.cfm?
IRS Homes:
http://www.treas.gov/auctions/irs/cat_Real7.htm
US Marshall's Homes:
http://www.justice.gov/marshals/assets/nsl.htm
US Dept. of the Treasury:
http://www.treas.gov/auctions/treasury/rp/
US Army Corps of Engineers:
http://www.sas.usace.army.mil/hapinv/haphomes.html
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New Lead Based Paint Rule Effective Thursday
Effective April 22, 2010, a new rule regarding lead based paint goes into effect. This new regulation, issued by the EPA, deals with lead-safe work practices and contractors who work in buildings with lead based paint.
The new Renovation, Repair and Painting Rule pertains to anyone who receives compensation for working in residences built prior to 1978 and deals with any other the painted surfaces in the residence.
Per the EPA website:
The requirements under the rule apply to maintenance, renovation or repair activities where six square feet (about the size of a poster) or more of a painted surface is disturbed inside, or
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FHA Approves the Use of Electronic Signatures
On April 8, 2010, it was announced that FHA will now accept e-signed documents, including real estate contracts.
"We commend FHA's action today. By clarifying its position on electronic signatures, the process of buying, selling and financing of homes across the country will be greatly improved," said Ken Moyle, chief legal officer at DocuSign. "Buyers, sellers and agents can use DocuSign's online process to eliminate the time, expense and environmental impact of printing, delivering and signing large stacks of paper documents, and mortgage lenders can take comfort in knowing that DocuSign's e-signature process is designed for legal compliance in all 50 states
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Can an Illegal Immigrant Buy a Home in the United States?
With all of the recent news about cracking down on illegal immigration, I wondered what the laws were about undocumented immigrants buying homes here in the United States. Here is what I discovered:
First of all, you do not have to have a social security number to buy or sell a home in the U.S. Some mortgage lenders require one; however, there is not a law requiring one. You do need to have some form of government issued identification, even if it is from another country (such as a passport or driver's license).
Those without a social security number will need an ITIN
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Home Buyer Tax Credit Extension for Some Military Members, Foreign Service Members and Intelligence Community
As the existing home buyer tax credit winds down (purchases must be under contract by April 30th and closed by June 30, 2010), many are wondering if there will be another extension.
As of now, the only extension has been granted to certain members of the military, the foreign service and the intelligence community.
For qualified service members who are ordered on a period of official extended duty, the tax credit dates are extended for one year. The purchase contract must be dated by April 30, 2011 and closed by June 30, 2011.
Also, this extension applies to a service member who is forced
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FHA, Investors and Seasoning Issues
As some of you may know, selling a property you have owned for less than 90 days to an FHA buyer has been virtually impossible for the past few years due to HUD seasoning guidelines.
On January 15, 2010 David Stevens, the Assistant Secretary for Housing, waived the existing guidelines regarding the seasoning issues until February 1, 2011.
To read the amended guidelines, here is the link:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Unfortunately, some lenders are not following these new guidelines and are still holding to the old with regards to FHA loan approvals.
I recommend the following if you are in a situation where you are trying to sell
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Checking Crime Statistics Before Buying
The majority of sellers and listing agents do not research crime statistics for their area. For the most part, the rules regarding disclosure of crime do not fall on the seller, but on the buyer to find out for himself.
Unfortunately, most buyers and many buyer's agents fail to perform this very simple task. Crime statistics are public information and can usually be found on the local police department's website. If they are not, the information can easily be obtained by visiting the local police precinct.
Another site which should be checked is the state's sex offender registry. This site can give you
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HUD's Good Neighbor Next Door Program
Law enforcement officers, teachers (pre-K through 12th grade) and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, the buyer must commit to live in the property as a primary residence for 3 years. HUD also requires the buyer to sign a second mortgage note for the discounted amount (which is forgiven after all owner-occupancy criteria are met).
The program's properties are generally located in HUD-designated revitalization areas. These areas
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Questions to Ask Before Listing Your Home with a Real Estate Agent
It's common knowledge that today, 87% of buyers are searching for homes on the internet. They are still using real estate agents to buy the homes; however, buyers are going to the internet before and during their home search in greater numbers each day.
Now, let's say 87% of all buyers were searching in your local newspaper for a home. Would you hire an agent who ran 1 ad a month in the newspaper or would you prefer to go with the real estate agent who ran an ad everyday? Dumb question, huh? But it's not...many sellers are still not asking the
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Deducting Travel Expenses for Investment Properties
A tax deduction often overlooked by investors is the cost of travelling to their own properties as well as the cost of travel when looking for new properties.
Travel expenses connected with the management of your real estate investments are deductible if they are ordinary and necessary.
A few rules regarding the deduction of travel expenses:
1. At least 50% of the time you spent away on travel must have been spent doing business related to your real estate investment business. The primary reason for travel must be business as well.
2. Taking a week long vacation to Hawaii and attending an open house while
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When a Tenant Violates the HOA Rules...
A few years ago, a client of mine was relocating overseas. When I asked about what his plans were for his rental property, he said, "Oh, I'm not worried about it. The tenants are on a multi-year lease and the HOA will keep them in check".
Well, that is not the case. In most states, the HOA has no governing authority at all over tenants; only over members.
Yes, it is the landlord's responsibility to enforce the rules and regulations of the HOA. If there is a fine or penalty for the tenant breaking a rule, the fine is levied against the landlord. It
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Does Your Property Have Defective Drywall?
Last week, the Department of HUD and the U.S. Consumer Product Safety Commission released a statement offering guidance on identifying problem drywall in homes. Drywall from China has been found to cause corrosion and air quality issues in homes where it was installed.
The guidance consists of 2 steps for identifying if there is a problem:
1. A visual inspection showing blackening of the copper electrical wiring and/or air conditioning evaporator coils.
2. The drywall was installed between 2001 and 2008.
If both of the above conditions are positive, then there are additional tests to determine the presence of problem drywall.
3. Chemical analysis of the
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What is a Construction to Perm Loan?
There is not one specific definition for this type of mortgage as banks offer many different variations of this loan. Also, construction to perm loans can be done for new construction or remodeling. The basics are:
A one step or two step loan process. With the one step process, the initial construction loan is then converted into the longer-term mortgage. With the two step process, one loan is provided for the construction and then another loan is provided upon the completion.
Depending on the loan type selected, interest rates can vary greatly. Some people choose a floating rate, others choose to pay for
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What is a Simultaneous Closing?
With a simultaneous closing, 2 transactions take place on closing day with regard to the subject property.
In the past, this transaction referred to a seller financing technique where the seller financing note is purchased at the closing table to allow the seller to obtain their proceeds quickly, rather than over a period of years.
In recent years; however, a simultaneous closing can also occur when an investor wholesales a property. For example, buyer A enters into a sales agreement with seller to purchase seller's property for $25,000. Buyer A decides not to rehab the property, but instead, to sell to Buyer B
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The Due-on-Sale Clause
The Due on Sale Clause, or Acceleration Clause, is a clause in a mortgage which states that if there is any transfer of ownership or interest in a property, the mortgage can be called and immediately due to the lender. With the exception of VA and FHA mortgages (which are generally assumable by a qualifying party), almost all mortgages have a due on sale clause.
Keep in mind that generally, this clause is a contractual option by the lender. This means that the lender may or may not decide to call the loan due once notified of a transfer in title or
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What is a Negative Amortization Mortgage?
Negative amortization occurs when the payment made by the borrower does not cover the amount of the interest incurred. The difference is added to the loan amount.
Traditionally, negative amortization loans have been used by lenders to allow for a lower monthly mortgage payment in the beginning of the loan period.
So, why would someone want this type of loan? Well, it may be an option for a couple where one person is presently employed and the other is in school, graduating in a year or so and will be employed, bringing the household income substantially higher.
In the 1980's when interest rates
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A Second Home... What Qualifies?
As the economy has wreaked havoc on the second home market, some buyers are seeing an opportunity to own something they might not otherwise be able to afford. Others are finding themselves "stuck" with 2 properties and not being able to sell one.
The IRS allows for up to 2 residences for a taxpayer to deduct mortgage interest. Also of note is what qualifies as a second home:
House
Townhouse
Condominium
Boat
RV
Mobile home
Trailer
The requirement states that the second home must have a sleeping space, toilet and a place to cook. In addition, the second home must be at least 50 miles from the primary residence. (Note
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Modular Homes
A couple of years ago, I was asked by a lender to help them sell a new construction home. The home was quite large (3,600 sq ft) and sat on 3 acres of land. In performing my due diligence, I checked the title and permits at the courthouse. I was incredibly surprised to read "modular home" on the initial building permit for the home. By all accounts, the home looked like any other recently constructed home in the area.
Not to be confused with mobile or manufactured homes, a modular home is built in a controlled environment and then shipped in pieces
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What is a LIBOR Mortgage?
A LIBOR rate is based off the London Inter-Bank Offered Rate, which is the rate offered for the US dollar by a group of London-based banks. There are varying LIBOR rates, based on deposit maturities and are usually quoted in 1 month, 3 month, 6 month and 12 month deposits.
A LIBOR mortgage is an adjustable rate mortgage loan based on the LIBOR interest rate. Usually only offered to well qualified borrowers, these loans are generally low risk and because of this, investors are willing to accept a smaller margin than they would on a traditional loan.
LIBOR rates can be very volatile
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What is "Subject to"?
"Subject to" (as it relates to real estate) refers to a method of purchasing a property while leaving the seller's existing mortgage(s) in place.
The seller deeds the property to the buyer, who agrees to make the existing mortgage payments on the property. In most cases, the seller is not released from liability on the mortgage. In some cases, the agreement may also include the provision that the buyer either sell or refinance the property within a certain period of time.
What is the main benefit? The seller's costs to sell are usually very small with this type of transaction. It's also easy
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Forecasting the Top Housing Markets
US News and World Report published a story recently forecasting the Top 10 Housing Markets for the Next 10 Years. These markets were selected from economic analysis conducted by Moody's Economy.com.
(in no particular order)
1. Bremerton/Silverdale, Washington
2. Santa Fe, New Mexico
3. Glens Falls, New York
4. Fort Collins/Loveland, Colorado
5. Corvallis, Oregon
6. Anchorage, Alaska
7. Decatur, Illinois
8. Duluth, Minnesota
9. Pittsfield, Massachusetts
10. Sandusky, Ohio
As an economics major myself, I found this list to be very interesting. What do all of these markets have in common and what can we learn from this list to forecast potentially untapped markets? A few insights: the average age of the
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10 Ways to Protect Your Properties from the Cold
1. Turn off exterior water spigots. There is usually a main shut off inside the home.
2. Drain any and all exterior pipes and hoses (such as those to an air conditioner)
3. Remove and store any window a/c units
4. Get your HVAC system serviced and tuned-up
5. If you have old windows, get a window insulation kit from a local home store
6. Insulate you pipes - if they are warm to the touch, they are ready for pipe insulation
7. Store all outdoor furniture, grills, hoses in a shed or garage
8. Make sure the chimney is swept and fireplace debris removed
9. Seal foundation cracks,
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Happy 2010! Now, Let's Get to Work!
1. First task for 2010, put your 2009 tax records together and send them off to your accountant. Let's put 2009 behind us right from the get go.
2. What is the one thing you need to make real estate investing easier for you in 2010? A virtual assistant? A task management program? A new computer? Whatever it is, write it down and start researching how to obtain it.
3. Fill in the blank: In 2010, I want to learn how to: ______________________. Now, whether you wrote down sky dive, cook an exquisite French meal or lose weight successfully, schedule time on your
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What is Probate Real Estate?
When a person dies, whether with or without a will, an Executor is usually assigned to oversee the assignment and/or disposal of the decedent's assets. Depending on the State, the Executor has varying levels of power with regards to liquidating the assets.
When an heir receives property, they also become responsible for the upkeep, mortgage payments, taxes, insurance, etc. Sometimes there is just one heir and other times, multiple heirs who become the new owners.
At this point, you should be able to see where the problems start to arise. Heirs having to pay money for real estate they might not even want,
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New Changes from HUD in 2010
Effective January, 1, 2010, HUD has approved 2 new forms which play a major role in real estate transactions: the Good Faith Estimate and the HUD-1 Settlement Statement.
While the new forms come with quite a few changes and were years in the making, here is a quick overview:
The Good Faith Estimate (GFE) is now a standard form used by all mortgage lenders. Before, each lender could use their own form. The intent of this change is to help consumers better compare estimates from different lenders.
The biggest change here is that there are line items on the GFE which cannot change, or
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Collecting Rent Payments and Managing Properties Online
Collecting rent payments online is both quick and convenient for both tenants and landlords. There are also quite a few online resources to assist you with this task.
The most basic way to accept rental payments online is through Paypal. Paypal allows the tenant to pay via their bank account or credit card. Setting up a merchant account through Paypal is easy and free. Depending on the amount of monthly rent collected, the fees start at about 2.9% for this service.
T-ReX Global has just recently rolled out their online rent payment system which is fully integrated with their popular property management software
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What is the Section 8 Housing Program?
The Section 8 Rental Voucher Program began in 1974 and is administered by the Department of HUD and allows low income families to choose privately owned rental properties. The Section Voucher and Certificate Programs currently help more than 1.5 million US households.
According to HUD's website: "The public housing authority (PHA) generally pays the landlord the difference between 30 percent of household income and the PHA-determined payment standard-about 80 to 100 percent of the fair market rent (FMR)."
Once a property owner agrees to accept Section * funds, they also agree to abide by the rules and regulations of the program. The Public
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7 Ways to Get Tenants to Pay Their Rent Early
Offer a contest each month. For all tenants that pay their rent by the 28th of the month before rent is due, they are entered in a drawing for a $50 gift certificate to a restaurant, an itunes gift card or the like....Be sure to announce the winner to everyone who got their rent in early!
Send a hand written thank you note when they get their rent in early.
Offer a discount (say $25) for tenants that pay early.
Report the payment histories of your tenants to the credit bureaus.
Send them a bill for rent. Seriously - mortgage companies, credit
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10 Ways to Attract Good Tenants
1. Dress professionally. First impressions matter and will set the tone for your relationship with the tenant.
2. Allow pets. Many property management companies will no longer permit pets. Being pet-friendly can set you apart and attract more potential tenants to you.
3. Be organized and have procedures in place. If you are disorganized, it will make the tenants think you don't care. Have checklists and paperwork in order.
4. Show that you care for the property and the tenants will care too. Even if it's outdated in areas, a clean property can overcome many objections. Wash the windows, manicure the yard..show some pride
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Fannie Mae Tightens Lending Standards
Effective December 12, 2009, Fannie Mae begins implementing new, tightened lending standards.
Among the new guidelines, borrowers who are putting at least 20% down will need to have a minimum credit score of 620 (the current score is 580). The new cutoff for total debt cannot exceed 45% of borrower's monthly income.
Why the tightened standards? On average, loans to borrowers with less than a 620 credit score are approximately nine times more likely to go into default.
In the past, it has not been common practice to give a buyer's credit score on a lender's pre-approval letter. In light of these new
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Functional, Stylistic and Economic Obsolescence
Functional Obsolescence, with regards to real estate, occurs when there is a loss of building utility. This can occur with a home that is too lavish or improved for a neighborhood, or on the other end of the spectrum, a home that is much smaller or under-improved for an area. Functional obsolescence can also occur when a property no longer meets the basic needs and wants of a certain society; such as a 2 bedroom, 1 bathroom home or a home heated with coal. Functional obsolescence can be curable or incurable depending on how difficult it is to overcome the obsolescence.
Stylistic
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State Landlord and Tenant Acts - Do You Know Yours?
The thought of reading through a lengthy legislative act is painful to many of us; however, for a real estate investor, this is one that is a necessity. Your State's Landlord and Tenant legislation is something investors must be familiar with and have on hand at all times.
Why? Because this legislation dictates how many properties one must own before coming under certain rules and regulations. It talks about what happens when a lease expires and the landlord/tenant have a verbal agreement to extend. It dictates the procedure for eviction and tenant personal belongings left behind. It defines property abandonment and how
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What is a Good Deal?
What defines what the investor considers to be a "good deal"? Well, that depends on the goals of the real estate investor. In order to determine what a good deal is, you need to know your expenses, your plans and your time frame. There is no magic formula. Each real estate investor must create their own definition of a good deal.
For a buy-and-sell investor, the "good deal" is defined by many things: holding costs, length of time needed to renovate, cost of renovations, cost of contractors, cost of financing, anticipated market time, etc.
For the buy-and-hold real estate investor, the "good deal"
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The New Homebuyer Tax Credit
President Obama signed the Homebuyer Tax Credit this week. This new tax credit extends and expands the credit set to expire on November 30th, 2009. The new legislation is effective November 7, 2009 and expires April 30, 2010.
Highlights are as follows:
The first time homebuyer tax credit remains at: $8000.
First time buyer definition of eligibility: must not have owned a principal residence for 3 years prior to purchase
Repeat homeowner tax credit: $6500
Current homeowner definition of eligibility: Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Binding contract rule: purchaser will have
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Defective Construction Materials - Easy Fixes or Nightmares Waiting to Happen?
It seems like there is always some defective construction product in the news. Years ago it was lead based paint and asbestos. Back in the mid to late 90's, it was EIFS, fire retardant plywood and Polybutylene plumbing. Now, it's defective drywall from China. What should you do? Run away like everyone else from these properties or embrace an opportunity for a possible real estate investment deal?
The answer is......it depends.
EIFS (Exterior Insulation and Finish System) is an exterior coating used extensively in the 1980's and 1990's. The product offers a smooth, stucco-like finish (though it is NOT stucco) that was very popular
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What's Up with Condos Lately?
There are many guidelines in the condominium lending world and investors need to know how these changes will affect them. Why? Well, the default rate on condominiums has increased substantially as units have faced foreclosure and associations have gone bankrupt. Now keep in mind, I'm talking about condominium OWNERSHIP here, not necessarily the structure. Condominium is a form of property ownership and a condo development can be the traditional apartment style structure, single family homes, townhomes or another variety of build-out.
The new guidelines apply to all loans sold on the secondary mortgage market and insured by Fannie Mae or Freddie Mac
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The FHA 90 Day Seasoning Rule
For many investors who rely on FHA-approved buyers to purchase their homes, the "Seasoning Rule" can be a big issue.
What is the seasoning rule? In a nutshell, with very few exceptions, FHA will not fund a mortgage for a property that has been owned for less than 90 days. This causes many investors to lose money due to holding costs, extended time on the market and/or not being able to market to FHA buyers. This rule pertains to any title transfer so if an investor transfers a property from one LLC to another, the 90 day rule goes into effect.
On September
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Selling "As-Is" Can Mean Many Different Things....
I hear it all the time from sellers, "I'm selling my house as-is". Well, Mr. Seller, what if the buyer accepts the as-is provision, but the appraiser says the front porch handrail needs to be replaced? What if the buyer's mortgage company won't lend on the property unless there is a clear termite and moisture inspection and your home needs a rotted board replaced in order to get a clearance? Do you REALLY want to kill an entire sale over a relatively inexpensive repair?
In most cases, if you truly MUST sell strictly "as-is", your buyer pool will be limited to cash
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Before Buying Into a HOA or Condo Association...
It's best to be judicious in your research regarding any Association you may become a part of as a result of a purchase. Most people spend more time researching a stock to purchase than they do researching an Association in which they are buying a home. Don't make that mistake!
The Resale Certificate. This is usually a 2-4 page document which states whether or not the present owner is current on their dues, what the dues are, whether or not there are any planned assessments coming up, if the property being transferred conforms to the architectural guidelines of the community, etc. This
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An Essential Tool for Real Estate Investors
Have you ever purchased something that made your life so easy that you wondered how you were ever efficient without it?
That's how I feel (and my real estate investors feel) about our pocket video cameras. Offered by many manufacturers, these cameras are often called by their brand names, Flip, Vado, Webbie as well as others.
These inexpensive, easy to use tools have made us more efficient in more ways than we can list in a reasonable-length post. Here are a few examples:
As soon as we acquire a property, the contractor shoots a video to document what is there for insurance and draw
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Thinking Outside the Typical Real Estate Box
In a recent conversation with an asset manager, the topic of foreclosures came up and various stories about what you find when you first acquire that property.
He told me about a recent default on a fraternity house. Yes, you heard me correctly, the bank had to foreclose on a fraternity house. He asked me, "Tina, what do we do with a 15 bedroom + 1 huge party room house that reeks of beer?"
Good question! To add a bit more detail: each bedroom had deadbolt locks, there were some creative "paintings" on the walls, the kitchen was pretty non-existent, and the
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What is Fractional Real Estate Ownership?
Have you ever gone on vacation and said, "I would really like to own a place here"? Have you ever rented a large beach house with family members and/or friends? Do you prefer to take a family trip within a one day drive of your home?
If you answered "yes" to any of these questions, the concept of fractional ownership may appeal to you.
As second home buyers are looking for more affordable ways to acquire their vacation home, fractional ownership has seen an increase in exposure. Fractional ownership is, simply put, a group of friends, relatives or investors pooling their resources to
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Other Real Estate Investors....Competition or Opportunity?
A fairly new real estate investor once explained to me why he gave up trying to buy a property on the courthouse steps. He said it was a waste of his time because the group of investors who attended these auctions seemed to look out for each other and get all the good properties.
Instead of trying to join them, he shunned them. Who lost out there?
Successful real estate investors seem to be a pretty close group. They ride the hills and valleys together and often, tend to help each other out. I've known quite a few investors who made good business
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Tax Lien Investing: Problems and Pitfalls
In my last post What is a Tax Lien Sale? I discussed what they were and how to earn money investing in tax liens. Today we are going to review some of the issues real estate investors should be aware of if they are considering this type of investment.
Tax liens are illiquid. They must be held until they are repaid or the lien holder takes the action to foreclose. While tax liens can be transferred to another party, they cannot be cashed in.
If the real estate investor does end up acquiring the deed to the property, they also acquire any problems
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What is a Tax Lien Sale?
Tax lien sales are becoming more popular as unpaid real estate taxes continue to pile up and the general public becomes more familiar with tax lien investments.
In the United States, 29 state (plus DC, Puerto Rico & USVI) tax collectors use tax lien sales to force owners to pay their unpaid property taxes. But, here's the catch...you're not bidding on the property itself. You are actually bidding on the unpaid property taxes. If you are the winning bidder, you become the proud owner of an official property tax lien.
Depending on the individual state law, it can take anywhere from a few
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15 Websites for Real Estate Investors to Search for Properties
These sites may or may not list properties in the local multiple listing service.
Backpage.com
Craigslist.com
Kijiji.com
Iwantanoffer.com
www.hud.gov/homes/index.cfm
Militarybyowner.com
Buyandsell.com
eadsbyowner.com
Findmyroof.com
Freeadlists.com
Justrealestatelistings.com
va.reotrans.com
resales.usda.gov
www.usmarshals.gov/assets/nsl.htm
homesales.gov
Bonus site of course there is Trump University's Foreclosure Deal Source.
Related Video by Tina -10 Free Sites for Real Estate Agents to Post Property Listings
Related Training:
Learn How to Invest in Real Estate
Work with a real estate coach to find the right market
Join The Trump Entrepreneur Initiative's Network
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Do I Need a Real Estate Survey?
When purchasing real estate, some lenders will require a survey of the property. With most investment, short-term and hard money loans however, the survey is optional (as with cash purchases).
The cost of a survey is typically fairly minimal, a couple hundred dollars. When the property is waterfront, heavily wooded, rough terrain and/or especially large, the survey can run into a few thousand dollars.
By getting a survey, you not only see your property lines, you also see any encroachments, easements, infringements or right-of-ways on the property. Encroachments and infringements can pose problems that you may want to have corrected prior to
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Should a Landlord Require Tenants to Get Renter's Insurance?
Rental managers and owners are increasingly requiring that renters carry their own liability insurance.
Approximately 2/3 of the people living in rental properties do not have renters insurance. There is a general misconception among tenants that the landlord's policy will cover them in case of lost or damaged property. The truth is, the landlord is not responsible for covering any of the tenant's personal property, unless the loss or damage is due to the negligence of the landlord.
So, how does requiring renter's insurance help a landlord? It is a way to minimize their own liability and insurance costs. It also protects the
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So, You Want to Buy a HUD Home...
What is a HUD home?
HUD stands for the Department of Housing and Urban Development. HUD is the insurer for the FHA loan program. When a FHA borrower defaults, the home becomes a "HUD" home, which you can buy. HUD homes are residential properties with 1-4 units.
How do I get a list of HUD homes for sale in my area?
Go to this site: http://www.hud.gov/homes/index.cfm and click on your state to find the homes available in your area. This is the MOST accurate place to find HUD homes. It is not necessary to pay or subscribe to a service for this information.
Who can
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Real Estate Investing: Creative Ways of Selling a Home to a Buyer
Many in residential real estate investing found that in a buyer's market, the buyer's have a buffet to choose from and the sellers are always looking for new and innovative ways to stand out as the better choice in the line.
Sometimes, offering creative ways of financing can open the property up to a new consumer or offer attractive financing terms the competition may not be offering. Below are a few examples of these creative financing terms.
Rent with the Option to Buy. Commonly known as a Rent-Option, this type of financing usually has the buyer sign a lease to rent the property,
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Interview with A Real Estate Investor
Yesterday, I had the wonderful opportunity to sit down and chat with Mike Veraldi, who has been in residential real estate investing full time since 2003.
In his past life, Mike was an airline pilot for a large carrier. With cutbacks and furloughs becoming an almost daily occurrence in the airline industry, Mike decided to take a 6 month leave of absence to start investing in real estate and has never looked back.
What made you decide to try real estate investing?
"A friend of mine recommended it to me. I took some training classes and spent about $3900 learning the business. Then, I
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Residential Real Estate Investing: The Smart Way, Part 2
In the first part of this series, we talked about some of the basic issues in residential real estate investing. In this part of the series, we are going to look at finding and tracking residential real estate for investment.
You have your source of funding lined up. You have selected a real estate agent. Now you have to find a property to purchase.
1. The MLS (multiple listing service) is not the only source for finding properties. In fact, since it is the most popular source, it can be a better idea to look outside the MLS to find properties others may
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Smart Residential Real Estate Investing, Part 1
This is Part 1 of a 3 part series on getting a great deal with good returns on residential real estate investing in this economy. Keep in mind that real estate is local and these tips may not apply perfectly to your current market.
1. How are you going to pay for it? Traditional financing can be difficult to obtain for residential investment properties right now unless you have a substantial down payment and stellar credit. Home equity loans on primary residences can also be a challenge to get in this economy. Consider sitting down with a reputable, local banker, discussing your needs
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Commercial Real Estate 101: 5 Ways to Sell an Investment Property in a Tough Market
While we are constantly hearing in this real estate market, "It's a horrible market for sellers", the truth is, the market may only be unattractive for unreasonable real estate sellers.
"Simply stage" your vacant real estate investments. Add color to the bathrooms with shower curtains, towels and rugs. Offer an inviting kitchen with some towels, a cookbook and a couple of wine glasses. A bowl of fake fruit can make a boring countertop look more interesting. A cafe table and chairs work great in adding depth to a room and a few attractive silk plants can add a much needed splash of
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