Category Archives: Real Estate

This is an area for real estate tips.

The great REAL ESTATE sale is now!

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Getting properties at a discount.

Back in 2006 and 2007, real estate investing allowed investors to generate huge profits in a very short time. During those times, there was less competition and the banks were more lenient with their underwriting guidelines. The market is now flooded with investors and “wanna be” real estate investors. There were many fix and flippers that were hard hit because they were one trick pony. They learned one strategy and rode that until they were bucked by the changing real estate market.

Today’s real estate investor must be educated and savvy in varying entry and exit strategies. It is critical to the success of today’s real estate investor to understand the power of leverage. The key point to any successful business is timing. I have heard people say they are waiting for the market to recover before they invest in real estate. Gong! Why is it people will take off work to attend a pre-Christmas sale, but when real estate is on sale(for the low low), they want to sit on the fence.

Despite the economic downturn, properties have continued to increase in value. The only reason why investors were scared to invest during recession is because of the uncertainty in the trends of the market.  People without control are reactive and tend to be the worker bees for employers. If you were to examine the historical trends of the property market:  NAR records show that property values have increased 0ver the past 40 years with the exception of the past 2 years. The correction had to occur as people were over paying from properties on massive scales. Properties were listed on MLS for $200,000 and people were righting contracts for $220,000 retail.

Real property investing is indeed, one of the safest ways to make money. There are two ways to make money in the real estate. One is through rental income (passive) and the other one is through the sale of properties. Today’s real estate market presents some challenges when you use 2 or three strategies. However, becoming educated on at least 10 different strategies creates profitable opportunities for your real estate business. Examples of property acquisition strategies include: wholesale, probate, REO, short sale and auctions to name a few.

Successful property investing will require you to have enough knowledge to understand the varying ways of financing your real estate purchases. Do you want to become a real property investor? With the right strategies and techniques, you can generate wealth in a few years. One of your biggest assets will be a well seasoned buyers list. To greatly reduce your risk in investing a seasoned buyers list is essential.

Understanding your REAL ESTATE APPRAISAL.

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An appraisal is a professional appraiser’s opinion of value. The preparation of an appraisal involves research into appropriate market areas; the assembly and analysis of information pertinent to a property; and the knowledge, experience and professional judgment of the appraiser. The role of the appraiser is to provide objective, impartial and unbiased opinions about the value of real property – providing assistance to those who own, manage, sell, invest in and/or lend money on the security of real estate.

At minimum, all states require appraisers to be state licensed or certified in order to provide appraisals to federally regulated lenders. Appraisers have fulfilled rigorous educational and experience requirements and must adhere to strict standards and a code of professional ethics. Qualified State Certified appraisers bring knowledge, experience, impartiality and trust to the transaction. In so doing, they help their clients make sound decisions with regard to real property.

Most appraisals are reported in writing, although in certain circumstances, an appraiser may provide an oral appraisal. A written appraisal report generally consists of: a description of the property and its location; an analysis of the “highest and best use” of the property; an analysis of sales of comparable properties “as near the subject property as possible”; and information regarding current real estate activity and/or market area trends. The value indicated by recent sales of comparable properties, the current cost of reproducing or replacing the building, and the value that the property’s net earning power will support are the most important considerations in the valuation of real property.
In addition to residential or commercial appraisal – and depending upon an appraiser’s designation and qualifications – he or she may be able to assist with the following:
• Estate planning and estate settlements
• Tax assessment review and advice
• Advice in eminent domain and condemnation property transactions
• Dispute resolution-including divorce, estate settlements, property  partition suits, foreclosures, and zoning issues
• Feasibility studies
• Expert witness testimony
• Market rent and trend studies
• Cost / benefit or investment analysis, for example, what will be the financial return on remodeling
• Land utilization studies
• Supply and demand studies

The following questions would be appropriate when selecting an appraiser:
1. Are you licensed or certified in the state in which you live?
2. How long have you been in practice?
3. What level of experience do you have in this particular market and with this type of property?
4. Are you familiar with property in this neighborhood?
5. What types of clients have you had (homeowners, estates, lenders, relocation companies)?