Checklist for real estate investment property
Homeowners look for a set of criteria when buying - school district, curb appeal, low crime rate, proximity to job, number of bedrooms, right layout, perfect-sized yard. While location is still a primary factor when you invest in real estate, most investors also add these to their checklist:
1. New single-family construction
2. A neighborhood that is mostly a primary-home community (rather than renters)
3. Square footage between 1400 and 1600
4. 3 bedrooms, 2.5 baths with 2-car garage
5. Nice yard but no pool (too much of a liability)
6. Safe neighborhood with little or no graffiti on public structures, fences, etc.
Another factor to consider is close proximity to your own home. Especially when starting out, you may need to visit your rental properties frequently-to pick up a check, make minor repairs, etc. For these reasons, any property more than 45 minutes away becomes less desirable.
It is important to remember you are not purchasing for your own use but to attract a high quality renter. Savvy investors choose properties based on the criteria above rather than their personal preferences. Doing so lets them pick from a wider base of homes and find the better bargain.
If you have more questions on which properties would make the smartest buys for you as a real estate investor, please don't hesitate to call or send an email.
Warm regards,
Sunday, August 10, 2008
Real Estate Investor Series: Part 5 of 6!
Building A Real Estate Investment Team 101
While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.
In addition to a real estate agent (and your tax advisor), some team members for you to consider are:
1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options
Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.
Warm regards,
While serial investors (who buy additional rental properties without selling their current ones) are likely to invest with only the help of a real estate agent, other investors benefit from having a team of experts.
In addition to a real estate agent (and your tax advisor), some team members for you to consider are:
1. A builder or general contractor who can evaluate the structural integrity of a unit
2. A specialist in leases who is experienced in writing contracts
3. An attorney who practices in real estate law
4. A mortgage professional who can offer you different financing options
Having a team of investors gives you more knowledge as well as more financial resources as well. One word of caution: while friends or family may be interested in joining your real estate investment team, it is best to pick individuals based on the experience they offer.
Warm regards,
Real Estate Investor Series: Part 4 of 6!
Profiting from the Fixer-Upper
Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.
Buy a Fixer-Upper and Sell Again
In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:
1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?
Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.
Buy, Raise the Rents, and Sell Again
Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.
If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.
Warm regards,
Many real estate investors earn a living out of renovating run-down properties and reselling them, or holding onto them for rentals. Commonly known as the fixer-upper, it offers you two paths to real estate investment.
Buy a Fixer-Upper and Sell Again
In addition to offering a handsome profit, fixer-uppers can offer a true sense of satisfaction as you transform a dilapidated property into one with true appeal. But before you take the plunge, ask yourself three questions:
1. Can I buy it far below market value?
2. Can I do much of the work myself (or contract it out at reasonable rates)?
3. Can I get the job done quickly?
Remember, every month you add to the project is costing you in lost rental income, taxes, insurance, utilities and more.
Buy, Raise the Rents, and Sell Again
Quite often the tenants in a rental property are paying below market rates simply because the landlord hasn't raised the rent in years, or perhaps the property is not maintained well.
Both scenarios present you a great opportunity to buy the building, raise the rents (making upgrades if necessary) and resell the apartment building at a higher price. This raises the GPI-the gross potential income-which is the maximum gross income generated from the rent if all the units were occupied.
If you would like more information on these types of investment properties in our area, please don't hesitate to give us a call or send an email.
Warm regards,
Real Estate Investor Series: Part 3 of 6!
6 ways to make a profit in real estate investment
Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called "serial purchasers", they continue to buy (and hold onto) additional properties.
Other investors prefer to find a quicker path to real estate investment success through one of the following ways.
Buy and Flip
Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).
Buy and Scrape
Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there's an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.
Buy and Split
Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.
Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations). We can help you by identifying potential rental properties in the Richmond area. Please call or email with any questions you have.
Warm regards,
Many homeowners get into real estate investing by buying a home and using this home as a rental when they upgrade to a larger home. Called "serial purchasers", they continue to buy (and hold onto) additional properties.
Other investors prefer to find a quicker path to real estate investment success through one of the following ways.
Buy and Flip
Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).
Buy and Scrape
Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there's an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.
Buy and Split
Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several condominiums. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.
Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations). We can help you by identifying potential rental properties in the Richmond area. Please call or email with any questions you have.
Warm regards,
Real Estate Investor Series: Part 2 of 6!
Market indicators tell you when to invest in real estate
Real estate prices cycle through highs and lows. Tracking the following market indicators will help you decide if it's a good time to invest in real estate in your area.
Job Growth
People go where the jobs are, and home prices follow jobs. A strong local job market is a sure sign of a healthy real estate market. While the Wall Street Journal gives you insight into the nation's overall economy, check the Wenatchee World and other local resources for North Central Washington specifics.
Housing Inventory
The housing inventory is the number of houses for sale at one time in the area. If there are more houses than buyers, prices tend to fall and if there are more buyers than houses, the opposite happens. Also look at the number of months or days it is taking to sell a home. If it's less than 60 days the market is typically considered hot.
Number of Repos on the Market
A repo is a house that has been taken over by the bank because the owner failed to meet the loan payment-in other words, it's a foreclosure. The more foreclosures in your area, the weaker the real estate market.
Number of Multiple Offers on Homes
Multiple offers are when two or more buyers "bid" at the same time for the same house. It's a sure sign of a hot market, usually resulting from a limited inventory creating the need for buyers to compete on price for the same property.
To learn about the local conditions in our market, please don't hesitate to call or send an email. We will be happy to get you the information you need.
Warm regards,
Real estate prices cycle through highs and lows. Tracking the following market indicators will help you decide if it's a good time to invest in real estate in your area.
Job Growth
People go where the jobs are, and home prices follow jobs. A strong local job market is a sure sign of a healthy real estate market. While the Wall Street Journal gives you insight into the nation's overall economy, check the Wenatchee World and other local resources for North Central Washington specifics.
Housing Inventory
The housing inventory is the number of houses for sale at one time in the area. If there are more houses than buyers, prices tend to fall and if there are more buyers than houses, the opposite happens. Also look at the number of months or days it is taking to sell a home. If it's less than 60 days the market is typically considered hot.
Number of Repos on the Market
A repo is a house that has been taken over by the bank because the owner failed to meet the loan payment-in other words, it's a foreclosure. The more foreclosures in your area, the weaker the real estate market.
Number of Multiple Offers on Homes
Multiple offers are when two or more buyers "bid" at the same time for the same house. It's a sure sign of a hot market, usually resulting from a limited inventory creating the need for buyers to compete on price for the same property.
To learn about the local conditions in our market, please don't hesitate to call or send an email. We will be happy to get you the information you need.
Warm regards,
Wednesday, August 6, 2008
Real Estate Investor Series: Part 1 of 6!
5 Reasons To Invest In Real Estate
According to the National Association of Realtors (NAR), second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.
#1: Appreciation
Returns of 10 percent and more are not uncommon if you select good real estate properties and a solid market. It's a return rate you won't find on bank products or with most stocks.
#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.
#3: Less volatility
While real estate cycles through periods of highs and lows, it doesn't change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.
#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).
#5 Value-Added Improvements
The saying "buy it low and sell it high" applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.
If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.
Have an outstanding day!
According to the National Association of Realtors (NAR), second-home sales (for vacation homes and investment homes) accounted for four out of 10 homes sold. While vacation-home buyers purchase primarily for enjoyment, investment-home buyers are looking to generate income in the following five ways.
#1: Appreciation
Returns of 10 percent and more are not uncommon if you select good real estate properties and a solid market. It's a return rate you won't find on bank products or with most stocks.
#2: Cash Flow
More than half of all investment-home buyers rent out their properties. Month in and month out these properties create income from renters AND gain long-term appreciation.
#3: Less volatility
While real estate cycles through periods of highs and lows, it doesn't change dramatically day-to-day like stocks. Investing in real estate is viewed as being less speculative than stocks.
#4 Tax Advantages
Your real estate investments offer you two tax advantages: you can deduct property expenses and depreciation. Plus doing a 1031 exchange lets you avoid paying tax on profits from the sale of rental property if you roll it into another real estate investment property (talk to your tax advisor).
#5 Value-Added Improvements
The saying "buy it low and sell it high" applies to stocks and real estate. The advantage with real estate is you can buy inexpensive property, fix it up, then raise the rent or sell it for more money.
If real estate investing is a path you are interested in pursuing, please feel free to call or email with any questions you have.
Have an outstanding day!
2008 Top Ten Places For Business and Careers!
This year, Raleigh, N.C. is number one for the second year in a row due in part, to its strong job growth. For the third straight year, the Southeast is home to half of the top ten, however there is new blood near the top with Lexington, Atlanta and Richmond joining the ranks and Spokane and Fort Collins also jumping ahead. Rounding out the top ten is Knoxville, Tenn. where business costs are 14% below the national average.
Also, the Forbes ranking may have you rethinking Iowa as just "the corn state". Des Moines, ranked fourth, with its sports arena, art center and heated 3 mile sky-walk, now boasts an unemployment rate of 3.4% and business costs that are 10% below the national average.
2008 Top Ten Places For Business and Careers
1. Raleigh, North Carolina (#1, 2007)
2. Boise, Idaho (#3, 2007)
3. Fort Collins, Colorado (#28, 2007)
4. Des Moines, Iowa (#4, 2007)
5. Lexington, Kentucky ( #30, 2007)
6. Atlanta, Georgia (#25, 2007)
7. Richmond, Virginia (#14, 2007)
8. Olympia, Washington (#10, 2007)
9. Spokane, Washington (#20, 2007)
10. Knoxville, Tennessee (#5, 2007)
Also, the Forbes ranking may have you rethinking Iowa as just "the corn state". Des Moines, ranked fourth, with its sports arena, art center and heated 3 mile sky-walk, now boasts an unemployment rate of 3.4% and business costs that are 10% below the national average.
2008 Top Ten Places For Business and Careers
1. Raleigh, North Carolina (#1, 2007)
2. Boise, Idaho (#3, 2007)
3. Fort Collins, Colorado (#28, 2007)
4. Des Moines, Iowa (#4, 2007)
5. Lexington, Kentucky ( #30, 2007)
6. Atlanta, Georgia (#25, 2007)
7. Richmond, Virginia (#14, 2007)
8. Olympia, Washington (#10, 2007)
9. Spokane, Washington (#20, 2007)
10. Knoxville, Tennessee (#5, 2007)
Monday, July 14, 2008
Receive our Monthly Newsletter!
Receive our monthly newsletters and stay up-to-date on local real estate.
As real estate professionals, we're often asked, "How's the market?" To answer that question, we send a regular e-newsletter that provides housing market trends and helpful homeowner tips.
We share this newsletter with clients, friends and neighbors in the area, and they enjoy it so much we wanted to share it with you as well. Whether you own a home, are looking to buy, or are thinking about making a move, this newsletter simplifies your life with:
· Info on how real estate trends affect the market
· Seasonal tips for maintaining a home's comfort and value
· Room additions that add to the experience (and resale value) of a home
· How-to's on makeovers-tools, wall coverings, furniture, and the results
· Latest ideas on how backyards, gardens, decks, and porches are becoming the hottest new living spaces
· And much more!
The newsletter comes monthly, which gives just enough breathing room between issues so you start looking forward to receiving the next one. If you would like to receive our monthly newsletter, simply email us at mmekhimar@Remax.net.
Additionally, if you're selling your home in North Central Washington, check out our Free Over-The-Net Home Valuation service: http://www.e-richmondhomes.com/What_is_my_home_worth/page_1755282.html.
And if you're buying, don't miss out on our Exclusive Buyer System, where you beat out other buyers on hot new homes and properties right when they come on the market: http://www.e-richmondhomes.com/Receive_home_listings_by_e-mail/page_1755299.html.
P.S. Please know that we are the only people who will be using your email address. We do not share your information with anyone
As real estate professionals, we're often asked, "How's the market?" To answer that question, we send a regular e-newsletter that provides housing market trends and helpful homeowner tips.
We share this newsletter with clients, friends and neighbors in the area, and they enjoy it so much we wanted to share it with you as well. Whether you own a home, are looking to buy, or are thinking about making a move, this newsletter simplifies your life with:
· Info on how real estate trends affect the market
· Seasonal tips for maintaining a home's comfort and value
· Room additions that add to the experience (and resale value) of a home
· How-to's on makeovers-tools, wall coverings, furniture, and the results
· Latest ideas on how backyards, gardens, decks, and porches are becoming the hottest new living spaces
· And much more!
The newsletter comes monthly, which gives just enough breathing room between issues so you start looking forward to receiving the next one. If you would like to receive our monthly newsletter, simply email us at mmekhimar@Remax.net.
Additionally, if you're selling your home in North Central Washington, check out our Free Over-The-Net Home Valuation service: http://www.e-richmondhomes.com/What_is_my_home_worth/page_1755282.html.
And if you're buying, don't miss out on our Exclusive Buyer System, where you beat out other buyers on hot new homes and properties right when they come on the market: http://www.e-richmondhomes.com/Receive_home_listings_by_e-mail/page_1755299.html.
P.S. Please know that we are the only people who will be using your email address. We do not share your information with anyone
Sunday, June 22, 2008
Why Use a REALTOR®
"Many consumers consider selling their home directly but eventually turn to REALTORS®. Smart home sellers realize they need the expertise in pricing their home, making connections with REALTORS® working with buyers, arranging and staffing open houses, and coordinating with other professionals in the sales process."
- National Association of Realtors Website (NAR)
We'd like to share the following Web page from NAR, aiming to educate the home sellers and buyers on the true value and befits of working with a Realtor. On the high level:
"REALTORS® Are Experts"
"REALTORS® Are Part of the Community"
"REALTORS® Protect You"
Click here
http://www.realtor.org/home_buyers_and_sellers/why_use.html to learn more!
It's also very important to realize that not all real estate agents are the same...we're not a commodity! Some work part time, some run their business like the CEO of a Fortune 500 company, and some--to be quite frank--are out for themselves and thus don't serve the best interests of their clients.
With that in mind, choose a REALTOR® that aligns with your goals and ideals, and someone you have a good connection with. As much as the Internet wants you to believe the home buying and selling process is in-personal, I'm here to tell you that couldn't be any farther from the truth. There several steps and processes involved in a successful real estate transaction, those of which will save you precious time and money if you choose the right real estate agent.
- National Association of Realtors Website (NAR)
We'd like to share the following Web page from NAR, aiming to educate the home sellers and buyers on the true value and befits of working with a Realtor. On the high level:
"REALTORS® Are Experts"
"REALTORS® Are Part of the Community"
"REALTORS® Protect You"
Click here
http://www.realtor.org/home_buyers_and_sellers/why_use.html to learn more!
It's also very important to realize that not all real estate agents are the same...we're not a commodity! Some work part time, some run their business like the CEO of a Fortune 500 company, and some--to be quite frank--are out for themselves and thus don't serve the best interests of their clients.
With that in mind, choose a REALTOR® that aligns with your goals and ideals, and someone you have a good connection with. As much as the Internet wants you to believe the home buying and selling process is in-personal, I'm here to tell you that couldn't be any farther from the truth. There several steps and processes involved in a successful real estate transaction, those of which will save you precious time and money if you choose the right real estate agent.
How to Obtain Top Dollar for Your Home!
If you are considering selling your home, you are probably asking yourself questions like:
* Should I replace the tile counters in the bathroom with granite?
* Does the wallpaper make the house look dated?
* Is the cost of installing new kitchen cabinets worth the expense?
* Do I need to put on a new the roof or can I just have it inspected and replace the deteriorated areas?
* Is it necessary to paint all the interior walls, or would touching-up the obvious areas work just as well?
* Would installing new carpets and/or refinishing the wood floors be worth the expense?
* Should I have the house painted before putting it on the market, or use that as a bargaining point in negotiating the sale?
These are all outstanding questions. And none of them has an easy yes or no answer. Your home is unique, as is the neighborhood you live in.
Part of The Davidson Team's expertise is helping sellers prepare their homes with the right improvements that bring in top dollar. We would be happy to stop by and do a simple walk-through to point out areas to focus on to improve your house's market value, as well as what projects will not likely give you a good return on your money or time.
There is no charge for our service. Our goal is to be the neighborhood expert. The more neighbors we talk to and the more familiar we become with the homes in our community, the better level of service we can offer to families moving into our area.
If you are interested in having us do a free walk-through to get your house market-ready or simply have questions you'd like answered, please contact us today!
* Should I replace the tile counters in the bathroom with granite?
* Does the wallpaper make the house look dated?
* Is the cost of installing new kitchen cabinets worth the expense?
* Do I need to put on a new the roof or can I just have it inspected and replace the deteriorated areas?
* Is it necessary to paint all the interior walls, or would touching-up the obvious areas work just as well?
* Would installing new carpets and/or refinishing the wood floors be worth the expense?
* Should I have the house painted before putting it on the market, or use that as a bargaining point in negotiating the sale?
These are all outstanding questions. And none of them has an easy yes or no answer. Your home is unique, as is the neighborhood you live in.
Part of The Davidson Team's expertise is helping sellers prepare their homes with the right improvements that bring in top dollar. We would be happy to stop by and do a simple walk-through to point out areas to focus on to improve your house's market value, as well as what projects will not likely give you a good return on your money or time.
There is no charge for our service. Our goal is to be the neighborhood expert. The more neighbors we talk to and the more familiar we become with the homes in our community, the better level of service we can offer to families moving into our area.
If you are interested in having us do a free walk-through to get your house market-ready or simply have questions you'd like answered, please contact us today!
Subscribe to:
Posts (Atom)
