Real Estate @articleinput.com

Is it OK to raise the rent from time to time (07/04/2010)
(...) A percentage of gross sales at the location. I strongly recommend using an experienced ground lease broker to negotiate these transactions. As a fallback, read everything you can about the subject. (...)

Responsibilities of real estate agents and discount brokers (07/04/2010)
(...) What does a discount broker do? Discount real estate brokers unbundle the features previously listed. The most common type of discount broker will sell you some of his or her insider status in the marketplace by listing your property on the local Multiple Listing Service (MLS) or a nationwide commercial website such as LoopNet. You usually either pay a flat fee for this service, or you pay a reduced commission. (...)

You and your real estate agent must agree on a number of things (07/04/2010)
(...) You must also completely understand who the agent represents - you or the seller. Ask as many questions as you need to satisfy yourself on these issues. What is a typical real estate commission? For single-family residential properties, the typical listing commission is usually from 6% to 7%. (...)

Advantages and disadvantages of buying without a real estate agent (07/04/2010)
(...) You will not get discouraged so easily because it is your own investment. Many good investments are owned by sellers who have not previously thought about selling. Catch someone on the landlord's equivalent of a bad hair day, and he or she might be willing to sell his or her property to you on the spot, and hold 100% of the financing. (...)

When is earnest money required and how much you should offer (07/04/2010)
(...) Although earnest money is not essential for an enforceable contract, it can in some circumstances indicate that a contract exists. For example, if several counteroffers go back and forth, the seller might not think to initial the last set. Technically, no contract exists until the seller formally accepts your last counteroffer. (...)

Why do you need a surveyor and an appraisal (07/04/2010)
(...) A survey is relatively cheap compared to potential court costs later on. I recommend a survey if you are buying anything more than a subdivision lot. As I mentioned, boundary line disputes between neighbors can be extremely costly. (...)

How to compare a house for sale with your own (07/04/2010)
(...) Real estate still being offered for sale will give you clues about neighborhoods to research. Houses within a neighborhood are usually very similar to each other. If a house is for sale, look for nearby houses that sold in the last two years. (...)

What is NOI and why do real estate brokers talk about it (07/04/2010)
(...) After obtaining the income, subtract all the annual operating expenses, which are things like taxes, insurance, management fees, repairs and maintenance, marketing expenses, leasing commissions, and utilities. Anything you spend on that property, except mortgage payments, is an operating expense. When researching comparable properties, you can usually estimate the gross annual income from the rents being charged in the building and get a good idea of the vacancy rate. (...)

You need to know what motivates the seller and how to talk to him (07/04/2010)
(...) I am afraid of insulting a seller by offering a low price. How do I handle that? Sometimes, negotiations depend on creating an emotional response in the other person. Emotional responses play an important role in negotiations, which is why you are wise to worry about insulting sellers. (...)

Credit score facts and information on credit reports (07/04/2010)
(...) As a result, many things might be good or bad about your credit history, but not affect your credit score. As a general matter, the following will appear on your credit report: formal loans from banks and other financial institutions, finance companies, and auto company lenders; credit cards; lawsuits; accounts turned over to collection agencies; bankruptcies; and, tax liens. Payments to utility companies, landlords, health care providers, or for business loans will normally not appear. (...)

How to invest in real estate even with additional debt (07/04/2010)
(...) Unless you are buying a fixer-upper or a personal residence, you will usually be able to borrow no more than a certain percentage of the purchase price of the property or the appraised value, whichever is less. That percentage can be 75% or 80%, depending on the lender and the property. Here is an example of the "whichever is less" trap: You find a rental house with an appraised value of US Dollars 100,000. (...)

How to separate face rate from annual percentage rate (07/04/2010)
(...) The mechanism that allows you to compare your options in this situation is something called the annual percentage rate (APR). You should ask all potential lenders for their estimate of the APR on your loan, and an itemized list of loan fees and expenses you can reasonably expect, with an estimate of the amount. How can I reduce my interest rate? Aside from competitive shopping, several things will reduce your interest rate among almost all lenders. (...)

Most common real estate investment expenses you should know about (07/04/2010)
(...) A seller in a hot market might not agree to pay any of them. Normally, the borrower pays all loan closing expenses, but that is also a matter of negotiation between buyer and seller. Can I control my purchase closing expenses? Most purchase closing expenses are fairly cut and dried with no room for negotiation or shopping. (...)

How to obtain the most suitable seller financing for you (07/04/2010)
(...) Seniors are excellent prospects because they will usually owe no taxes upon the sale of their home, especially when buying homes to use as rentals. They do not need cash at closing. Current investors selling their rental properties are good seller financing possibilities. (...)

Documents that need to be signed at closing and other real estate investment tips (07/04/2010)
(...) The seller could then apply to the IRS for a refund, if one was due. This caused an incredible number of headaches, however, so the IRS allowed a huge loophole. If the buyer signs an affidavit saying the purchase price is less than US Dollars 300,000 or the buyer currently has steadfast plans to live in the property at least 50% of the time, then no one has to fool with the IRS withholding issues. (...)

Discrimination against tenants and how to deal with these issues (07/04/2010)
(...) , a recording studio or an abortion clinic)? Will this tenant create an image I do not want? (What kind of reputation will a high concentration of alcoholic beverage vendors at one location give your property?) Is this tenant likely to outgrow my space fairly quickly and leave? (Depending on your situation, you might want to wait for a more long-term tenant.) Is this tenant likely to grow to the point that it wants to buy my building in the future? (Again, depending on your future plans, this may be a good thing.) Is this tenant a good credit risk? Is this tenant likely to cause excessive wear and tear to the property (e. (...)

Facts to wether or not to hire a property management company (07/04/2010)
(...) The best ones will advise you regarding additional income opportunities such as laundromats, reselling Internet access, and furniture rental. They will also tell you about additional investment opportunities, and when it is the right time to sell your investments and trade up to something better. How do I choose a good property management company? When interviewing property management firms, ask about the firms' years of experience, and the experience of the current operations personnel. (...)

Information you need for buyers and how to expose your property (07/04/2010)
(...) You can order demographic reports from Claritas, which is the largest paid provider of that information. Traffic counts are also useful. Call your local Department of Transportation and ask how you can obtain those numbers. (...)

Counteroffer by following these useful hints (07/04/2010)
(...) Who should hold the earnest money? A disinterested third party should hold the earnest money. That could be an escrow company, the attorney who will handle the closing, or someone else with a separate bank account for escrow funds. Who makes sure everything happens on time through the closing? Making sure everything occurs exactly as the contract specifies takes a lot of work. (...)

How to rent the best location in town for your business (07/03/2010)
(...) As a practical matter, the ground lease marketplace is not that large. Before leaping into it, pay attention to the signs around town. Are they in places you consider good locations? Are the asking rents reasonable, in your opinion? How long do the signs stay up? If the signs have been up so long that the letters have faded in the sun, it might not be such a good market or location. (...)

Financial issues to consider when buying a condo (07/02/2010)
(...) That is because all the insurance, tax, and maintenance expenses also increase. The money to pay those bills must come from somewhere. A condo association that does not have annual dues increases usually trims the quality of goods and services or allows maintenance to go unattended. (...)

Is it better to keep all rental units in the same place (07/02/2010)
(...) That word-of-mouth advertising and referral network happens much less often with single-family residences. If you want to refinance and pull out some equity for other investments, it is much easier with apartment complexes. Many lenders and many secondary market investment portfolios require that a certain percentage of their loans be in multi-family residential properties. (...)

Learn about apartment investments and trade associations for owners (07/02/2010)
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Find a lender for an office building and then the proper tenants (07/02/2010)
(...) Office tenants desiring larger space generally expect the landlord to fund a certain amount of what is called tenant improvements - TI for short. This could include something as simple as new paint and floor covering to something as large as gutting the space and installing all new walls, doors, lighting, finishes, and cabinetry. The landlord eventually recoups the money from the tenant through higher rents but must front the expenses. (...)

How to invest in retail properties if you cannot find them in your community (07/02/2010)
(...) The developer will sign a long-term lease, usually twenty years with several five-year renewals at the option of the tenant. Next, the developer builds a building according to the tenant's specifications exactly. The tenant takes occupancy and pays rent every month, plus takes care of all maintenance, upkeep, repairs, renovations, taxes, and insurance. (...)

Buy rental homes and start your real estate investment business (07/01/2010)
(...) That person will be the one to stand firm on his or her price, thinking you will be the one to crumble in the end. Notice when the first "For Sale" sign goes up on each sale home. Most listing contracts expire after six months if they are not renewed. (...)

House flipping is a great way to earn a lot of money (06/29/2010)
(...) 4. Pre-construction flips, in which you sign a purchase contract for a property that will not be built for many months or a year, and then selling your purchase contract when the project is completed and prices have (hopefully) increased dramatically. How do people flip condos? There has been a lot of hype in the past few years about condo flipping. (...)

How can flippers avoid trouble when wanting a loan (06/29/2010)
(...) As a result, it is more difficult to find buyers for flipped properties. What is a realistic time frame for being able to flip properties? The answer to this question depends on the type of flip you do, how much time you can devote to it, and how much profit you want to make. Two strategies fit the bill perfectly. (...)

Ideas regarding options and lease options (06/29/2010)
(...) In most states, if the option is contained within the lease or a renewal lease, then the tenant does not have to pay a separate fee for the option. But, if an existing tenant is given an option, then usually the tenant must pay a separate fee to make the option enforceable. As an investor, you might want to sell rental properties to your tenants under a lease option. (...)

What are fixer uppers and how to find them (06/28/2010)
(...) This is called cold calling. It is a numbers game. If you ask enough people, some percentage of them will say yes. (...)

Fix up a foreclosure property with minimum costs (06/28/2010)
(...) Without a great deal of experience and your full-time attention, this would be extremely unusual. You should count on nine months, at a minimum. How can I minimize my turn-around time on a fixer-upper? If you are handy, and do not have a full-time day job, doing most of the work yourself will allow you to control the timing. (...)

Fix your home without borrowing too much (06/28/2010)
(...) You want to nail down (no pun intended!) answers to the following questions. How often do you fund? What fees do you charge for administration of the construction loan? What must you have before you fund a draw request? What is the maximum time delay between a draw request and the money being deposited in my account? Do you require me to match funds on draw requests? In other words, if I have bills totaling US Dollars 4,000, will you fund US Dollars 3,000 from the loan and must I pay the other US Dollars 1,000 myself? Do you require any retainage, such as reserving 10% of the loan proceeds until the project is completed? Do you have any construction-related requirements, such as having a licensed general contractor in charge of the job? Some lenders disburse a certain percentage of the loan at predefined partial completion points. After the property reaches a specific stage of completion, and after the loan officer inspects the property, the lender will release a percentage of the loan money. (...)

Keep tidy records when fixing a property you want to sell (06/28/2010)
(...) Both of these are very good things. 3. Some of your expenses can be depreciated - written off on your taxes - faster than others. (...)

Be careful if you want to assume the mortgage for a foreclosed home (06/28/2010)
(...) The bottom line is, most holders of mortgages have large incentives to work with you. The servicing companies, who work for the larger secondary market investors, are working on obtaining more discretion to negotiate with people for loan assumptions. Both of these things mean it will become easier and easier to simply assume loans in the danger of foreclosure, usually with no down payment and very low closing expenses. (...)

Advantages of investing in creditor auction properties (06/28/2010)
(...) It says that a title insurance company will insure the title - guarantee the title is good - if the auction takes place in a manner required by law and if you are the successful bidder. That gives you some comfort that it is okay to bid. The title policy is issued afterward, has an additional charge, and is the actual guarantee. (...)

What is property with hazardous waste and what to buy (06/28/2010)
(...) Property with high levels of waste and toxins are called superfund sites. Most of those are outside the reach of beginning investors. Here are the secrets about brownfields that few people understand. (...)

How to buy heir properties at low prices (06/28/2010)
(...) After the sale, the money is split among all owners, according to their percentage of ownership. The one co-owner who requested court action does not have to be one of the original heirs. Any investor can buy out one of the heirs and become eligible to request a partition. (...)

How do lenders foreclose and how cheap can you buy (06/28/2010)
(...) In a few states, the borrower signs something called a mortgage, but it gives the lender a power of sale. Foreclosure is nonjudicial, but the judicial route is allowed and sometimes preferred if the lender knows it will have a fight over competing claims or other such issues. Can I really buy foreclosure properties at 75% of their appraised value? That is certainly the myth, and it is true many times, but you cannot count on it. (...)

How does your credit score affect real estate investing (06/27/2010)
(...) My credit score is not going to get any better for a while. Can I still invest? There are opportunities for you to buy property, even with a terrible credit score that prevents any traditional lender financing. They include: seller financing; buying tax-sale, foreclosure-sale, or demolition-ordered properties; obtaining a cosigner or guarantor for the note; buying options; and, a large cash-down payment. (...)

Get informed before investing in real estate (06/27/2010)
(...) Everyone wants to find one. If you are buying low-risk property, the competition will drive up the price until your profit is relatively small, which is not necessarily a bad thing. A friend of mine started investing in rental houses twenty-five years ago, in a relatively small town. (...)