Real Estate Tips

ARE YOU REALLY A TWENTY FIRST CENTURY INVESTOR? by Steven Battle

Real Estate Investors that educate themselves about CURRENT MARKET TRENDS will reap huge returns NOW!!! Information concerning NEW TRENDS in financial resources will open new and more profitable real estate opportunities for your business.

Today’s residential real estate market for investors has become very competitive in most major markets. The vast majority of real estate investing seminars and clubs are encouraging you to search out desperate home owners or distressed properties to be rehabbed.
Not to mention the fact that today’s disillusioned stock investors have now realized that residential real estate investing offers better returns, with less capital risks. As you seek to identify your lucrative real estate opportunities, have you noticed that the good deals are getting harder to find? I am not here to discourage you from investing in real estate, but would like to share real estate investment opportunities and information with you…..opportunities that only a few people are aware of and regularly participate in. That’s right; I am referring to a niche investment market that has VERY LITTLE competition. This unique information is currently setting new trends within the commercial real estate investment community!

I know you are ready for me to tell you about this quiet niche investment market, so I will…… it is….……. ………..Commercial Real Estate. There are HUNDREDS, maybe THOUSANDS of niche market investment opportunities within Commercial Real Estate. And by the way…….. the main reason why so few investors go after commercial real estate, and that might include yourself, is that you’re not convinced that you would qualify for commercial financing ! ! Most investors are lead to believe that a 20% down payment is required to start the process for purchasing commercial properties. WELL, THIS IS NOT TRUE!

Let’s do the math now…… financing a property that cost $5 Million dollars with 20% down would require you to put down $1,000,000 and you would still have to add in legal fees and closing costs. Yes, I know that only a few investors or even investment groups are able to meet these down payment requirements. Your first mistake as an investor would be to go to your local bank to seek financing, or worse, go to private or hard money lenders. First, remember the banks are regulated by the federal government and they are required to underwrite conforming loans and second, bank loans tend to be very structured and are generally inflexible to your project needs. In most cases, THESE LOANS will require a 20% DOWN PAYMENT OR MORE! The only benefit of using private or hard money lenders is when” NO OTHER FINANCING OPTIONS EXIST FOR YOU!”

FINANCING is the key ingredient to identifying lucrative real estate investment opportunities, yet, so few people truly understand the power of knowing WHERE to find the right financing and HOW to get it! WHAT IF you had several lenders, today, that would only require you have 2 to 3% down payments (on certain qualified projects)… WOULD THIS BE OF INTEREST TO YOU? A $5,000,000 loan with 2- 3% down payment equates to putting down $100,000 to $150,000. As an individual investor, this down payment would still be pretty steep for you however, today, many residential investors are already joining and forming Investment clubs to increase and enhance their purchasing power. TO ALL residential real estate investors……. the REAL MESSAGE here is that you are closer to buying commercial real estate than you think! This example should make it clear to you that finding the right financing is the FIRST step and the key ingredient to your real estate investing…….. however, there is a PROBLEM.

The problem is that as an investor, you have been trained to shop for properties FIRST, and almost never for financing. Finding the right financing FIRST will save you and make you more money over time, than you purchasing the undervalued properties and selling them later at or above market prices. I will repeat this….. MOST REAL ESTATE INVESTORS DO NOT UNDERSTAND THE IMPORTANCE OF FINANCING within the investment equation. The ability to save on the amount of the interest rate you are being charged…. month after month….. year after year… 2 or 3 % or more is huge. You may also find out what I already know….. . by securing the financing first…..THIS OPENS UP NEW INVESTMENT OPPORTUNITIES!

Let’s review some of the BENEFITS that come with purchasing Commercial Real Estate:

1) Unlike residential real estate, commercial real estate’s only purpose is to make money for its investors. If there was a 7% cap rate on the $5,000,000 sample property, it would cash flow $350,000 annually.
2) Do you think you would enjoy having professional tenants with long term leases?
3) Would it excite you if your investment projects qualify for Non recourse financing?
4) You can totally eliminate the process of rehabbing properties.
5) How about this…… YOU no longer have to chase tenants down to collect rent.
6) You no longer have to pay penalties to lenders for not being in owner occupied properties.
7) Expand your investment search throughout all 50 states.
Last and probably the MOST BENEFICIAL of all of the perks….You can qualify to purchase these properties using your commercial tenant’s credit rating, business cash flow and their long-term rental leases!

We are searching for like -minded real estate investors and investment clubs that would like to join a Commercial Real Estate Investor Forum. We welcome that you come and ask your commercial financing questions and share your investment experiences with the group. Go to www.amoneybroker.com/ and click on “Join Our Investor Forum.”

About the Author

In an era where information rules, the small to medium sized real estate investor can NOW be a “Front Runner” AND a major player within the commercial real estate market!, says Steven Battle, Commercial Financing Consultant with Amoneybroker.com

Investors - Look For The Real Estate Sweet Spots by Mark Walters

A politician once proclaimed, “All politics is local!”

The same is true for real estate. If you live in Southern California home values are climbing towards the sky. The real estate market is hot!

At the very same time there are many areas in the Midwest where there has been no job growth, no increase in sales activity and no increase in home prices for over 5-years. If you are in one of those markets you find real estate investing is an entirely different ballgame.

Here’s a good example of picking your sweet spot… something you, as an investor, should consider when planning your investing tactics.

Technical Olympic USA is home builder. The company very carefully selects the areas where they build homes. Right now they are in ten hot markets:

Florida
Texas
Tennessee
Maryland
Pennsylvania
Arizona
Virginia
Colorado
Nevada
Delaware

This builder avoids the crazy areas like San Diego, Loa Angeles and Boston.

They look for areas where employment has grown steadily for the last 5 or 6 years and where second-time home buyers are moving to homes in the $200,000 to $400,000 range.

They’ve learned that these buyers are in there 30s and 40s, have kids and want 3 or 4 bedrooms, 2,800 to 3,000 sq ft of living space and a two-car garage.

Yes, it would be nice if we could all do some research and move to an area where investors are having the most success. Don’t fret. Time and again the truly determined have proven that you can make money in any real estate market… sweet or not.

If you are an investor living in the Midwest you cannot just buy any rental home and count on its appreciating value to provide a profit. Home prices are not going up.

Yet, you can still make money in Midwest real estate. The key is to always buy or option at a price at least 30% below market value. You have less room for error than those investing where home values are increasing by 1% to 3% per month.

In Southern California there are at least 5 real estate investing seminars being presented every week. Investors of all skill levels are swarming like locust over every square foot of ground. Competition is fierce. It’s not quite like that in the Midwest.

Another key is to only invest in homes that people want to buy. A good target is what Technical Olympic has found to be its sweet spot… those homes near 3,000 sq ft. They will be easier to rent to the best class of tenants… and they will sell more quickly for the best profit. In your area the most desirable homes might have other characteristics, but you get the idea

The bottom line is that there are geographical sweet spots… and there are local sweet spots… even neighborhood sweet spots.

Stay in front of demand, buy carefully, use creative techniques like leases, options and “subject to”, and you will find investing opportunity no matter where you live.

About the Author

Mark Walters is a real estate investor. You can learn about his successful tactics at: http://www.lease-option-sub2.com

Tips for Buying a New Home by Matt McWilliams

Buying a new home can be a daunting task, even for someone who has owned several homes. If you recently purchased your first home, you probably found that is hard to find good advice that is truly useful. You had to learn a lot on our own, but at least now you probably feel comfortable and knowledgeable about the whole process.

My wife and I recently purchased a new home in Tennessee. Here are some helpful hints we picked up along the way:

1. Use all of the online resources available. Almost every state and local government has a website where you can research real estate information. The data on home sales, taxes, and neighborhoods is invaluable when you are shopping for a home. We were able to find out the most recent sale prices in the neighborhood we selected, and we didn’t have to rely on a real estate agent to get the data for us. Doing the research yourself will make you more knowledgeable about the market, which is key to making a good purchase.

2. Be realistic about how much you can spend. Try to buy a home in a price range that allows you to put down 20%. If you put down less than this, you will have to pay PMI (private mortgage insurance) to protect the lender in case you default on the loan. I know that 20% is a lot, but it’s not unrealistic. You may not be able to do it on your first home, but hopefully you can on your second home. The profits from the sale of my condo enabled my husband and me to have more than enough for the 20% down payment on our home. But we didn’t put it all down on the home - we saved some of the profits for the unexpected expenses that come with buying a home. We suggest that you do the same.

3. Shop for a home in the winter, preferably around the holidays. Since most people just aren’t interested in buying a home when they are trying to deal with the holidays, you can pretty much be one of the few buyers out there. We bought our home right before Christmas, and it was definitely a buyers market. We had our pick of homes and were able to underbid on the asking price, even though we live in one of the hottest real estate markets in the country.

4. Use a smaller mortgage company that can offer personal service. People tend to go with large, well-known mortgage companies, since that’s all they know. But the smaller, regional companies provide excellent customer service, and can often give you better rates than the big companies. Since they don’t advertise and instead rely on word-of-mouth, they have to be good in order to get your service. We started off with a big-name company, but in the end, we went with a regional company because they had better rates and better customer service.

5. Always have a home inspection. I think most people know this fact already, but it is really important in areas with a hot real estate market. It can be easy to get caught up in bidding wars, and to want to get a house at all costs. Some friends of ours wanted a house so badly that not only did they overbid, but they also waived the home inspection. They got the house - and right along with it they got several thousand dollars worth of damage that would have been found in an inspection. As a final note, try to remember that buying a home doesn’t have to be scary. It’s very exciting to own your own home, so think of all the good things that will come once you have made it through the home-buying process. If you follow the advice above, then you should be well-equipped to make it through unscathed.

6. Save money and shop for your home insurance the easy way! Yeah, I know this is a shameless plug for our web site, but seriously, whatever web site you do use, get online and shop around for your home insurance. You can get multiple home insurance quotes from HometownQuotes.Com or any of a dozen or so reputable companies online. Go to a search engine, like Yahoo! and type in ‘home insurance quotes.’ This is the best way because if you get 5-10 good quotes you can decide for yourself who is the best.

About the Author

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and graduated from Middle Tennessee State University in 2002. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com.

The Real Estate Disputes And Partition by Mark Walters

What if two people pooled their resources and began investing in real estate. Like many partnerships things progress smoothly for a while and then a dispute arises.

Now they seldom can stand to talk to one another and then only through clenched teeth. A sad story, but one that is not uncommon.

What if they have an undivided interest in a fourplex. They want to end their investing enterprise, but they can’t agree on the disposition of the property?

An action for partition may be the only solution. That means one of the investors turns to the court to decided how and when the interest in the property will be divided.

In a partition action the owner or claimant of real property or any interest in the property may compel a partition (division) of the property between him and other owners. It may vary from state to state, but in Arizona the partition complaint is filed in the superior court of the county in which the property is situated.

The court will hold a hearing to “determine the share of interest in the property sought to be divided of each of the owners or claimants, and all questions affecting the title…”

In other words… when those who have an undivided interest in a property can’t agree on disposal the court can do it for them.

Here’s another example of partition in action:

Your grandmother dies. You are the executor of her estate. Personal property was left 50/50 to me and my brother.

She owned a house and land which was left specifically to her heirs. My cousin has been living in the house and ignoring needed maintenance. The house looks like a junk yard with overgrown landscaping, trash and old cars. There are over $5,000 dollars of fines pending from city inspections.
The cousin refuses to leave and is unable to buy out the other heirs. What can you do? Start a court action for partition. The proceeds for from the estate should pay attorney and legal fees.

If you are an investor and come upon such a situation you might try to buy out the interest of each heir before the partition action is completed. They will often sell there interests at a discount for cash now rather than waiting for the court action to completed.

About the Author

Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com

Think You Can’t Afford Your Own Home, Think Again! by Sue and Chuck DeFiore

Do you have bad credit, no credit, filed a bankruptcy, have a ton of late pays, medical bills, or been through a divorce? Well, we have the perfect solution for you - Lease Purchasing your own home!

What is Lease Purchasing?

A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.

Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.

A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.

Following are just some of the benefits of Lease Purchasing for the buyer.

1. Low down payment.
2. Qualification restrictions are not as great as in conventional financing.
3. Past credit problems are not usually a road block.
4. The option consideration can be fully credited to the purchase price.
5. Your rent money is working for you.
6. Purchase price is usually locked-in ahead of time.
7. Gives you sufficient time to check out all the features and faults of the house.
8. Time to check out the neighborhood.
9. Puts you in legal control of a property for a specified period of time.
10. Time to shop for and obtain the best financing.
11. Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
12. Profits, in case appreciation occurs and you decide to sell in the future.

So, you ask, how do I lease purchase my own home? Drop by our website and check out, How To Live In Your Dream Home Today And Buy It Tomorrow; Without Mortgages, Real Estate Agents Or Credit! Just click on the link below:

http://www.homebusinesssolutions.com/products/lpbuyerman.htm

We feel everyone deserves to own their own home, so why not start looking for your dream home today!

Copyright DeFiore Enterprises 2005

About the Author

Interested in having your own successful, home based creative real estate investing business?

Chuck and Sue have been helping folks start successful home based businesses for over 20 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com

A Few Points About Interest Rates by Madan “Raja” Ahluwalia

Less is more

If you’re new to investing or real estate and don’t know the first thing about interest rates, here’s a good tip: the higher the interest rate, the more expensive it’s going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it’s easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose.

Not even the Fed knows for sure

The Fed holds a considerable amount of power, but they can’t control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.

Locking in rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn’t run out before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $300, through your loan agent as soon as possible.

Don’t obsess and miss a good real estate deal

Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in the event that interest rates come down.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

About the Author

Madan “Raja” Ahluwalia is an Attorney at Law & Realtor. Raja offers his clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration. He possesses a thorough understanding of the market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at raja@kw.com or 650.430.4023.

Think You Can’t Afford Your Own Home, Think Again! by Sue and Chuck DeFiore

Do you have bad credit, no credit, filed a bankruptcy, have a ton of late pays, medical bills, or been through a divorce? Well, we have the perfect solution for you - Lease Purchasing your own home!

What is Lease Purchasing?

A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.

Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.

A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.

Following are just some of the benefits of Lease Purchasing for the buyer.

1. Low down payment.
2. Qualification restrictions are not as great as in conventional financing.
3. Past credit problems are not usually a road block.
4. The option consideration can be fully credited to the purchase price.
5. Your rent money is working for you.
6. Purchase price is usually locked-in ahead of time.
7. Gives you sufficient time to check out all the features and faults of the house.
8. Time to check out the neighborhood.
9. Puts you in legal control of a property for a specified period of time.
10. Time to shop for and obtain the best financing.
11. Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
12. Profits, in case appreciation occurs and you decide to sell in the future.

So, you ask, how do I lease purchase my own home? Drop by our website and check out, How To Live In Your Dream Home Today And Buy It Tomorrow; Without Mortgages, Real Estate Agents Or Credit! Just click on the link below:

http://www.homebusinesssolutions.com/products/lpbuyerman.htm

We feel everyone deserves to own their own home, so why not start looking for your dream home today!

Copyright DeFiore Enterprises 2005

About the Author

Interested in having your own successful, home based creative real estate investing business?

Chuck and Sue have been helping folks start successful home based businesses for over 20 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com

Top 10 Mistakes to Avoid When Buying a Home by Best-Internet-Mortgage-Loans.com

Buying a home is one of the most exciting things you can do, but don’t let
the excitement overwhelm your common sense. If you’re not an experienced home
buyer then it’s easy to fall victim to these Top 10 Mistakes that Homebuyers
Make.

1. Buying a home before you are ready for home ownership

Lots of people get pressured into buying a home by well meaning friends and
family who tell them what a waste of money renting is. While renting does not
build equity, it comes with a whole lot less responsibility and expense than
home ownership does. Take your time and don’t buy until you are ready to buy.

2. “Falling in love” with the house.

This happens when we are overwhelmed by the emotional aspects of buying and
spurred on by the subtle pressures of the seller and their agent. Just like we
tend to overlook the faults of people we love, a buyer who falls in love with a
house might end up overlooking flaws that will haunt them later.

Buyers often find out things after the sale that might have stopped them
from buying if they knew in advance. Although Agents and sellers are obligated
to disclose certain defects or circumstances about a property, those
requirements may not cover everything that you’d want to know. After reading
the disclosure list, if any, ask specific questions about anything else that’s
important to you. For example, if the idea of living at a former crime scenes
turns you off, ask if any major crimes or incidents occurred at the home.

3. Misunderstanding the loyalties of the Real Estate Agent.

In most areas the Real Estate Agent represents the seller and not the buyer.
That means that you can’t expect the agent to keep anything you say from the
seller. If you’re offering 200k, but you’ll go to 210k if you have to, keep
that secret to yourself. If the agent knows your top limit then he or she is
actually obligated to tell the seller if that’s who they represent.

4. Overpaying because of pressure or deceitful sales tactics.

Buyer soften pay more than they have to because they are warned that there
are “other offers” being considered so they need to make their highest offer
first. That may or may not be true, but never make an offer that’s higher than
you would make without any outside pressure. An offer is legally binding if it’s
accepted and you’ll have to live with that buying price for a long time to
come.

Another reason buyers overpay is because they don’t realize that anything
can be negotiated including closing costs, inspection fees and the price of
repairs. Real magic happens when a motivated seller and an earnest buyer sit
down to conduct business.

5. Failing to get mortgage pre-approval before shopping

Buyers who start the shopping process without being pre-approved for a
mortgage have a harder time getting their offers accepted and they set
themselves up for disappointment if their dream home turns out to be more than
they can afford.

You also run the risk of not getting the best mortgage deal possible if you
are forced to rush into accepting the first offer that you get.

6. Failure to get it all in writing

Buyers who accept verbal agreements or promises made on a handshake often
find that no one remembers that conversation at closing time. If it’s important
to you then get it in writing.

7. Not finding defects before you buy.

While new homes come with specific warranties and guarantees, you’re usually
on your own when you’re not buying new. Don’t rely on the word of the seller or
the agent when it comes to ascertaining the physical condition of the home. Protect
yourself by writing “Subject to satisfactory property inspection results”
on any offer you make and then hire a professional property inspection company.

Another word of advice is to find your own property inspector and do not
reply on one that is recommended by the seller or agent. Make sure you are
there when the inspector arrives and don’t let the agent or seller have any
conversations with the inspector outside of your presence.

8. Losing control of the transaction.

This is going to be your home and buying it is your decision. When you let
agents, friends or family persuade you for or against a particular piece of
property then you are losing control of the transaction. Just stop, relax, take
a deep breath and remember who is in control. It’s you.

9. Failure to do your own due diligence

The chances are your visit to the home of your dreams occurred during the
best time of day, but you’ll be living in that home 24/7. Visit the
neighborhood during rush hour, late at night and at other random times. Can you
deal with getting in and out of your neighborhood during your commuting times?
Does the sound of the nearby NASCAR track drown out backyard conversation on
Sunday afternoons?

Also make sure that the schools and community amenities suit your needs and
lifestyles. Check property taxes and utility bills to make sure that you can
afford the cost of living in your chosen community. If you are subject to deed
restrictions or homeowner/condo rules then make sure you can live with them. Even
automobile insurance rates are affected by zip code so the more you know about
a community the better off you are.

10. Buying more house than you can afford.

Just because the lender approved you for a certain amount doesn’t mean that
you can handle the payments. This is especially true if you have a
life-changing event on the horizon such as having a baby or changing jobs. Be
especially wary of your payment thresholds if you have an Adjustable Rate
Mortgage because you can bet those payments will be going up a lot sooner that
you want them to. Don’t forget to factor condo fees or homeowner association
dues into your monthly expenses.

About the Author

© Copyright 2005 by Best-Internet-Mortgage-Loans.com.
Please visit Best Internet Mortgage Loans
for more on mortgage basics and tips on finding the mortgage you seek.
This article may be freely posted as is on the Web as long as this message and the live link remain intact.

10 Important Tips to Successful Real Estate Investing by Madan “Raja” Ahluwalia

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents

Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be Careful - Tax Laws May Change

Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize In Something You Know

Start in a market segment you know. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know The Costs Going In!

Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess The Tax Situation

Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax advisor.
7. Investigate Insurance Coverage

If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs

Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant

Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!

Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound investment.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

About the Author

Madan “Raja” Ahluwalia is an Attorney at Law & Realtor. Raja offers his clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration. He possesses a thorough understanding of the market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at raja@kw.com or 650.430.4023.

Finding the Best Real Estate Professional by Madan “Raja” Ahluwalia

Finding the Best Real Estate Professional

Finding the right real estate professional requires doing a little research and asking a few questions. You need to know everything about the selling process. What is the marketing strategy? What kind of advertising will be done? Is the REALTOR® capable and willing to communicate effectively? Can the REALTOR® effectively present and sell the less-noticeable assets of the property?

Real estate professionals also need to be knowledgeable about the community. They need to have a feel for the history of the area and the approximate price that people will be willing to pay. Also, real estate agents should know what the competition is and how much it will affect your sale.

NEVER choose a REALTOR® on price alone. Remember that a REALTOR® cannot magically raise the selling price of the house. Consider the buyer. The purchaser won’t willingly pay too much; it’s most likely that he or she will do research on the market and try to find the best product for the best price. The facts simply cannot be changed, no matter which REALTOR® you select. In spite of these unchangeable factors, the REALTOR® you select must still be diligent and knowledgeable.

If your property does not elicit attention within several weeks, the cause can most likely be attributed to one of these three factors: location, condition, and price. The location obviously cannot be changed. You should consider examining the conditioning of your property and reevaluating the marketing strategy. Ask your REALTOR® to offer an explanation of the competition and your pricing strategy.

(c) Copyright 2005 Madan Ahluwalia. All rights reserved.

About the Author

Madan “Raja” Ahluwalia is an Attorney at Law & Realtor. Raja offers his clients a counseling-based approach to home buying, where the client’s long-term goals are the most important consideration. He possesses a thorough understanding of the market and trends, based on years of involvement in real estate. He provides expert insights and helps clients understand timing, pricing and financing issues. Contact Raja at raja@kw.com or 650.430.4023.