Tag: Power Team

Networking by Attending Foreclosure Auctions

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Networking by Attending Foreclosure Auctions

To most people, being a real estate investor is all about making a lot of money through buying and selling properties. Although that idea of real estate investing is not far from the truth, there’s more to it than that. To make it to the top, real estate investors need a lot of help from other people inside the real estate industry. That’s where networking comes in. Networking is the inexpensive method of establishing friendly and professional relationships with other people in order to increase their number of business contacts and future prospects.

One of the many networking events an investor must not miss is a foreclosure auction. Attending foreclosure auctions does not mean you have to join in the bidding. Instead, just get to know people. Because foreclosure auctions are a great way to acquire properties below market value, they attract a large numbers of local and non-local investors. You’ll meet serious buyers that are fast deal closers and pay with cash. These are the people you’ll want to network with and put on your growing lists of buyers. If you know someone attending a foreclosure auction, ask him or her to show you around and introduce you to different people.

For beginners or even seasoned real estate investors, having a database of people from the same business is very important in building a career. As like many other industries, the more people you interact with, the more business prospects you will get. It’s practically impossible to run a real estate business without the right contacts.

Referrals

Establishing strong business connections with the right people can be beneficial when starting in the real estate world. Accumulating a large network of real estate agents means getting many business referrals.

Mentorship

Business networking can offer a variety of opportunities such as being educated and mentored by people who have already made a successful career for themselves. Learning from these people with varying talents and techniques can help you and guide you in becoming a success investor.

Potential Business Partnerships

Networking is also a great way to meet other investors that could become potential business partners. Investors work, help, and makes deals with their fellow investors, so keep in contact with each other.
Meeting Service Providers

Reliable contractors can easily be found if you just ask around. Since most properties in foreclosure auctions are not in good shape, a skilled and trusted contractor is someone you want to have on your networking team.

Tips for Getting An Investment Property Ready To Sell

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Tips for Getting An Investment Property Ready To Sell

Getting an investment property ready to sell does not need to be difficult or stressful but somehow many investors find it becoming just that. Some investors become emotionally attached to their property, some become nostalgic and find it painful to let their property go, and some have difficulty selling a tenant occupied property. Regardless of the reason, when selling a property, the key is to keep things simple. The minute you decide to sell, you need to stay firm on your decision and your emotions need to stay out of it. Here are a few tips that can help make the process of selling your property easier and more stress-free.

Deciding to Sell

When deciding to sell an investment property, think of your property as an investment and figure out how to make a profitable deal out of it.
For Landlords, it can be quite a dilemma when you want to sell a property with tenants in it. Most landlords will want to wait until the lease or contract is over before selling the property because, typically, the fewer the people involved, the fewer the complications. Although a vacant rental property could mean fewer complications, whether or not you have tenants, you can still sell your property. It’s just a matter of finding the right buyer. There are new investors out there that would like to start their investing career by becoming a landlord, and buying a tenant occupied property might be just what they’re looking for.

Hiring An Agent

Find a real estate agent that you can comfortably work with. After all, they should have your best interests in mind. Real estate agents are very knowledgeable and can give sound recommendations for those that are new to real estate investing. Agents will evaluate your property and provide a CMA or comparative market analysis for your property. Make sure to choose your agent carefully since they will handle the legal requirements of selling your house. Agents are also in charge of the advertising, marketing, and showing the property to perspective buyers.

Preparing The Property

Make your property appealing by understanding your selling audience. Are you planning to sell your house to an owner-occupier or an investor? Different buyers will likely have different ideas on what to look for in a property. Prospect owner-occupiers need to “fall in love” with the property. If you can afford it, staging your property can do wonders.

Declutter unnecessary items to make your property spacious. This does not necessarily mean that you have to remove everything inside and present your buyers with a cold and vacant property. Buyers need to experience the property in its “lived-in” state without having too many personal belongings in the way.

Paint the walls with neutral colors. Buyers are usually excited to have a fresh start to their new homes. Give the place a fresh coat of paint to make your property look new and clean.
Clean the property. If the property is clean, it will smell clean. Unpleasant odors inside the property are a big turn-off to buyers. Pay special attention to the bathroom. If you can afford it, make it look like a spa. Fix holes in the wall, broken windows or anything that needs to be mended. Buyers need to see that the property is well maintained and, of course, nothing makes a property more appealing than cleanliness. It’s cheap and shouldn’t cost a lot money.
Make sure the exterior of the property looks beautiful as well. Don’t become the property that buyers refuse to enter because of an unkempt landscape. Boost your curb appeal by trimming the shrubs, painting the door and keeping the walkway clear. First impressions matter.
Not only will these preparation tips help you sell your property faster, they will add value to it.

The Benefits of Using a Real Estate Attorney as Part of Your Power Team

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The Benefits of Using a Real Estate Attorney as Part of Your Power Team

For most people, the purchase and/or sale of their home will likely be the largest financial transaction they will make. Likewise, as a real estate investor, you will be involved with numerous and large financial transactions. The amount and risk of such transactions merits the use of a real estate professional. Additionally, several states require the use of a real estate attorney in the sales transaction.

From the time you make your decision to buy a home or investment property, there are a number of important decisions that must be made and which have legal consequences. There are several aspects of the sale and different ways your attorney will assist you in evaluating, assessing and closing the real estate transaction.

Prior to closing, instructions from the lender are sent to the real estate agent and/or attorney. The attorney is responsible for evaluating the details of the sale, preparing necessary closing documents, assisting in scheduling the closing, explaining the necessary closing documents and then ensuring the title company has properly executed and recorded all the documents.

A real estate lawyer’s primary focus is to ensure that the real estate transactions are executed according to all local (state) laws and the process of document preparation and review follows correct procedures. This includes the review of sales documents, the negotiation, assessment of the terms and conditions, and finally, the transfer of titles.

Real estate attorneys may also be consulted to ensure that real estate laws and regulations are followed when buying or selling real estate. When a breach of contract or a real estate fraud occurs, real estate lawyers assist to correct the problem and represent their clients to resolve any actions or issues.

Overall, real estate lawyers serve two major primary functions in the real estate world. They either act as litigators and oversee the legal aspects of real estate transactions or they defend the rights of their clients as they try to protect their interest. Real estate attorneys focus on real property and mediate real estate transactions that have legal issues.

If you are investigating a property and have questions concerning the legal meaning of any portion of the real estate purchase contract, you should consult your attorney before engaging in the legal transaction and signing the contract. This contract is a legal document and is binding for both the seller and the buyer.

Various real estate lawyers are skilled at consulting a specific aspect of real estate law. Some attorneys focus on litigating fraud cases and others might specialize in mortgage fraud, while some concentrate on land use (including zoning laws). Their expertise can also be focused on residential or commercial real estate.

Thus, an attorney’s role in real estate is broad, but they ensure that real estate transactions are done according to the law. This work is done in coordination with the buyers, sellers, realtors (agents), and/or lenders. The attorney’s main purpose is to assure that this complex procedure is legal and assists all involved in fulling their wishes to buy and sell the property. Therefore, choosing to work with an experienced real estate attorney is essential to safely handling purchases and closing real estate transactions.

What is a Home Inspection Report?

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What is a Home Inspection Report?

A home inspection report is a useful tool in the real estate market for both buyers and sellers. A home inspection is an examination of the conditions in a house. These conditions are those that affect the property values and include such items as structure and mechanicals. “The home inspection takes the uncertainty and emotional barriers out of buying a home.” (Gonzalez)

A home inspection is not an appraisal. An appraisal is a method of determining property value and takes into consideration items such as square footage and property value. The home inspection will take these factors into consideration but also accounts for the inside prospective of the home.

The home inspection report is unique to residential properties and is used to determine and diagnose the property characteristics.

We will explore the expectations of a buyer or seller when entering into a home inspection. During the home inspection, the condition and structure of the home will be documented by an inspector after taking a simple visual assessment of the property.

After the exterior is visually inspected, the heating, ventilation and air conditioning systems are examined and their performance recorded. The inspector will not disassemble the equipment but turn it off and on to see if it is in working condition. The inspection will report any observed material defects.

Plumbing is an important component of a home and the inspector will visually examine the operation of the plumbing system. The water flow is expected to be free of any obstruction so clear, clean flow of water should occur. The inspector is making sure that sewage and waste return is separate from the fresh water supply. Additionally, the inspector will visually check the water heater.

The electrical system is also visually inspected and lights and outlets randomly checked. The notation of the type of electrical box as to whether the service is fuse or switch triggered will be documented in your inspection.

In conjunction with the electrical and heating review some inspectors will offer a thermal imaging inspection using an infrared camera to give the information on heat loss and any electrical problems that are not visible to the causal observance.

Choosing a home inspector can be a difficult process in some areas because of the large amount of inspectors available and their different levels of education and competency. When considering a home inspector, there are several approved education institutions, and although not national, they can be found on the individual state sites such as nachi.org or npiweb.com. These national home inspection schools add credibility to the training given to the inspector. These sites will also give a list of the inspectors in your area by zip code.

The average fee for this service is between $350 and $500 and varies according to location, size and type of inspection needed. The home inspector will ask several questions before quoting a price so it is best to call and discuss prices with a few inspectors in your home area. It is prudent when buying or selling a home to get a home inspection. This will save money on expenses later on after the purchase and in some cases help to firmly set the selling price.

 

 

References

Gonzalez, Britttany. “American Society of Home Inspectors.” 2012. Financial Firsts:. [online]. 18 January 2016. Accessed January 2106.

Bates, Ronals. NPI. 2015. http://npiweb.com/. [online] Accessed January, 2016.

NACHI (National Association Certified Home Inspectors) – http://nachi.org