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Investing In Real Estate Can Be Good, Bad or Ugly

By
Real Estate Broker/Owner with Richard Bleuze

Investing In Real Estate Can Be Good, Bad or Ugly

The world of real estate investing can be good, bad or downright ugly. The real estate business is risky and it takes a good deal of learning the tricks of the trade to experience the good. But even the best probably have bad experiences and ugly stories that make for great lessons in learning what not to do in real estate investing.

The Good
A smart real estate investor will always use tools like The Multiple Listing Service  (MLS). MLS is like a bible to those serious about investing in real estate, because it lists all properties for sale by brokers. Listings in the MLS give generous information about the property being sold and tell you if they are handyman's specials, bank-owned, in estate and what the asking price is.

If you're in the real estate business and have houses to sell, the Yellow Pages are a traditional and fairly successful place to advertise.  You may not get a flood of calls on each and every property you own, but those that you do receive usually hold promise if not an outright offer. 

Bad news can be in the your future if you rely heavily on For Sale By Owner investment sales. For Sale By Owner can mean one of many things. You might be wasting you time, because many people who are advertising selling property on their own are merely putting a poke in the fire so to speak, to see what the market is like and how many bites they get. These folks also feel, in many cases, that they know it all and can do it own their own. Meaning, they don't like to pay any expenses that go with hiring an agent to get the job done right.

The ugly in real estate investing can really turn into 'good,' because if you invest in a home that is ugly and needs repairs you could make a hefty profit when you are ready to sell. If you are into flipping in the real estate market, buying an ugly house, fixing it up and turning it into a profit as soon as possible, ugly may be the way to go.

ABOUT THE AUTHOR: 

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.  They will also include houses for sale in the local real estate books as well as multiple listings.  Many realtors are now advertising houses online as well (I am finding this to be the best form of advertising since many potential buyers are now internet savory).  Real estate agents can provide your house with the exposure you need to land a sale.

Having a real estate agent will also be helpful when the time comes to make an offer on a home or to consider an offer for your house that is for sale.  Real estate agents can help you decide if the offer is right for you.  In most cases, good real estate agents are also experienced in helping you to negotiate with the other party.  The good real estate agent can help you to turn a no into a sale.  At least they should be able to do that!

Your real estate agent can also help you with closing on your house.  A good real estate agent should be able to guide you through the process of buying or selling a house from start to finish.  Their knowledge of the legalities of the process will make the steps a little easier for you.

A real estate agent can be beneficial to anyone selling a house.  They can help you to market your home and gain enough exposure to make a rapid sale. Real estate agents will interact between you and potential buyers.  They are working for your best interests.

Hopefully, this brief article will have provided you with tips in what to look for when picking a good real estate agent to work for you!

ABOUT THE AUTHOR: 

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

0 commentsRichard Bleuze • February 20 2009 03:29AM

Tips For Selling Your Home

Tips For Selling Your Home

If you're thinking about selling your home, before you make a move there are some ways that you can make the home selling process smoother and more financially rewarding.

The first important step that might take some time is getting your home ready to sell. Even if you've just renovated, there is a way to you're your home presentable to viewers, so that a potential buyer can visualize how he or she sees the home the way they would like it decorated. This process is known as 'staging'. It basically involves cleaning up clutter and allowing for as much clean space available.

The next step is best done with a realtor and involves pricing your home. A realtor will help you figure out what your home is worth by determining factors like how the real estate market is, the neighborhood your home is located in and how much house you are offering. You may have an opinion about what you think the property is worth, but it's best to ask a selling price based on statistics that really tell it like it is.

Interview a few real estate agents before you hire one. The best real estate agent will listen to you and put your interests and needs first. A real estate agent will have the skills to use analytical and marketing techniques to make sure you sell your home in a timely fashion for a price that hopefully pleases you. A real estate agent will also list your property as an "open", "exclusive" or "exclusive right to sell" listing. An open listing allows you to sell the home yourself, and you will only pay a selling broker's commission. An exclusive agency listing is like an open listing, except the broker can work with another brokerage that could have a buyer who makes an offer you can't refuse. In this case, both brokers split the commission that you pay. Exclusive right-to-sell is the most common and allows the broker the exclusive right to earn a commission by representing you and supplying the buyer. You will pay for the listing and selling broker fees.

When a buyer is interested in your home, a home inspection will be arranged. Make sure that your home will pass inspection by make necessary minor repairs before hand or be prepared to lower the price is defects are found.

When the house closes (close escrow), your property deed, reconveyance and deed of trust will be recorded in public records, and a title will let you and your agent know that it has been recorded. Keep in mind that once this is done, the buyer has possession right and you may be asked to move that day.

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 


 

0 commentsRichard Bleuze • February 05 2009 12:02PM

Termite Damage And Real Estate

Termite Damage And Real Estate

Termites are the greatest economic pest in the United States and can cause billions of dollars in damage to homes, historical structures and other buildings. They eat wood as well as books, documents and photographs. They are a social insect and live in colonies. They can live for a decade or more and produce huge colonies with literally thousands of offspring.

When termites have infested a home, it is never a good sign. A home must be inspected for possible termite invasion when a real estate transaction is eminent, and if it is found, it may seriously affect the transaction. The buyer should be told that the seller must fix the damage and remove the infestation, but it is no easy task to get rid of termites or repair the damage that they might have caused.

Although the task of cleaning up after a termite invasion may seem simple, it is not. There may be structural damage that can cost a hundred times more than the actual cost of treating the termites. If the structure is damaged, you better think twice about making the purchase, because although the seller might be willing to cover the cost of the treatment and any visual damage, what can't be seen is probably where the real (almost unrepairable damage) has taken place. In some cases, center beams in homes have literally been eaten away, and floors will show visible signs that termites are eating their way through the wood. Depending on the time of year, when infestations are bad, termite eggs can be seen in windowpanes and other damp places. If the problem isn't treated, the house can be literally eaten away.

To really know how badly termites have damaged the structure of a home, everything in the home should be removed. To uncover latent damage, carpets should be taken up, walls and ceilings should be opened and, in some cases, excavation should be done. This is the only way to find out how much damage has been done and how much it will cost to repair.  This type of inspection is called invasive and destructive testing and requires further evaluation by experienced contractors and specialists to define the extent and cost of any necessary repairs. Most homeowners don't want this done because it is costly and can get quite messy. A prospective buyer should ask for written documentation from an expert to determine the extent of termite damage that has occurred, as well as a treatment and repair history from the owner. If there is no damage, that should be documented as well.

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 commentsRichard Bleuze • January 29 2009 02:00PM

Tax Advantages of Owning Real Estate

 Tax Advantages of Owning Real Estate

Perhaps the greatest advantage of owing real estate property is the right to deduct interest paid on a home mortgage and a home equity loan. In order for this to happen you must qualify for an income take deduction by having acquisition indebtedness, which is incurred by acquiring, constructing or improving a qualified residence secured by the residence and limited to a $1,100,000 aggregate loan. You may also qualify through "home equity indebtedness", which is secured by a qualified residence to the extent that the loan amount does not exceed the fair market value of the qualified residence reduced by the amount of the acquisition debt.  Qualified residence is your principal residence and another residence like a vacation home that is not rented to anyone else.

The interest paid on the mortgage of your home, vacation home and a home equity loan can be deducted from your income if you complete a Schedule A (itemized deductions) form and attach it to your 1040 Federal Income Tax Return. Many states also allow you to take a deduction from your taxable income for the interest you paid on your home, vacation home and qualified home equity loans. The interest that you pay on a mortgage for your home, your vacation home, and for a home equity loan can be deducted from your income. In order to take the deduction, Schedule A (Itemized Deductions) must be completed and attached to your 1040 Federal Income Tax Return. Many states likewise enable you to take a deduction from your taxable income for interest paid on your home, qualified vacation home and qualified home equity loans.

You can also deduct real estate taxes on your federal return. These include any state, local or foreign taxes on property levied for the general public welfare and must be based on the assessed value of the property and charged against all property under the jurisdiction of the taxing authority. This generally does not include taxes charged for local benefits, trash and garbage pickup fees, transfer taxes, homeowners' association charges or rent increase to higher real estate taxes.


 ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 commentsRichard Bleuze • January 22 2009 01:44PM

Should You Become A Landlord

 Should You Become A Landlord

There are many pros and cons to becoming a landlord. Given the right circumstances, becoming a landlord can be a way to put some extra cash in your pocket and receive tax deductions on expenses and depreciation for property taxes, mortgage interest rats, repairs and maintenance costs and marketing. However, you must determine whether becoming a landlord is right for you by deciding what you can rent your property for. You can do this by looking into rental rates in the general vicinity of where your property is located. You can also check with a real estate broker to see what the area's vacancy rate is. Once you subtract property expenses, you must also account for other expenses like mortgage payments if there are any, insurance, utilities, repair and maintenance costs. Maintenance costs can become significantly high if you are renting an older property. To determine your profit, subtract expected vacancies and possible expenses from the annual rent. If you see that you will gain a profit of $100 or $200 a month, it may be worth becoming a landlord.

It is very important that you treat your responsibility as a landlord as you would treat a business. You might want to invest in hiring a management firm, especially if you are living outside of the state of where your rental property is located, I do not recommend doing this! A rental firm will screen qualified tenants by running credit and background checks and help you determine what a reasonable monthly rent. If you choose to rent on your own, make sure you know everything there is to know about the tenant(s) you are renting too, since good tenants are rare and your profit could go down the drain if your property is destroyed.

Good tenants or not, it is always wise to keep a cash reserve for unexpected rental expenses or for rental payments should your tenants decide to move.  I suggest at least 15% of the yearly rent amount.  It will probably take a few months to go through the process of renting to another qualified tenant.

A landlord should also make sure that there is a rental agreement with a monthly fee that is fair and allows for raising the rent when it needs to be raised to keep up with the cost of living. You want to make sure that your tenants have the feeling that you respect their needs and that they respect your. Set reasonable policies and procedures and stay in control, and you will reap the benefits that a good landlord can realize.

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 commentsRichard Bleuze • January 01 2009 01:52PM

Selling Your Home Fast

Selling Your Home Fast

Buying or selling a home can be a time consuming process, and although there are thousands of people looking to buy homes, it can be a long process to find the right person interested in buying your homeSelling homes is like any competitive process - the glitch is - there are hundreds of thousands of home on the market to sell.

To sell a home quickly, you need to attract the most attention as soon as possible. A real estate agent can help by advertising and showing your home as much as possible, but you will also have to put some effort into the selling process if you want to sell quickly.

The first step you should take to sell your home quickly is to have it staged. A staged home is a home that has been brought down to the basics.  All clutter is removed and detail is given to making each room as large as possible, so that the buyer can image how he or she would decorate. Statistically, it has been proven that staged homes sell much faster than those that are not staged, because today's home buyers have a clear vision of what they want, and if your home is cluttered with your grandmother's photos, not to mention her furniture, it will not work.

Using a real estate agent is usually much better than doing it yourself since they have the connections ad can advertise it much better than yourself.  If you want to sell your home faster, I would not sell your home yourself!

Another hint to sell your home in a rapid fashion is to sell it yourself at an attractive price that will draw immediate attention to anyone looking for a home. You can market, stage and show your home and let those looking know that you are willing to talk - giving them the impression that they are in the driver's seat, and you are willing to listen. Again, it can't be emphasized enough that when you show your home both the inside and outside should be clutter free and aesthetically pleasing - a sure fire way to have potential buyers coming back for a second look with an offer in hand.

When a buyer makes an offer, and it's lower than you had anticipated, this could be a problem. However, if the offer is close to the asking prices and there are no other bidders, then it might be worth accepting if you are trying to sell your home as quickly as possible. On the other hand, if it's early in the game, and you can wait it out - it might be worth the wait to see if a higher bid will soon follow.  However, usually the first offer is the best offer!


 

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

0 commentsRichard Bleuze • December 24 2008 09:29AM

Real Estate Forms

 

Real Estate Forms

There are an endless amount of forms associated with a real estate investment, and you will need to know what each form is and keep track of each as they are signed.  Always request a copy of any form that you have filled out or signed.  It is the best way and only way to keep an accurate account of the investment you are making including income and expense.

It makes sense to always have each step of a real estate investment documented. The process is long and arduous whether you are buying or selling a house, and each form that goes along with the process is an important piece of documentation that should be available for review upon request. There are those buyers and sellers who choose to prepare their own documentation, but there are also ready-made forms available. The forms can be picked up at any real estate office or downloaded from the Internet at almost any real estate website. These ready-made forms are easy to use and cover virtually all transactions you may need to be documented.

Forms include basic real estate transaction requirements, as well as legally binding paperwork necessary in all real estate deals. The forms can be purchased individually or you can buy a package that will pretty much contain everything you need. Individual forms are more appropriate for short-term leases like vacation rentals and in most cases other rentals like apartments or homes. If you are planning on buying or selling a home, then you will need a set of forms, so it is probably the wisest choice to purchase them all at once. 

Prepared forms are accurate, legal and up-to-date in most cases. To be sure, you can check with your local law and real estate office to make sure the forms are current and any recent revision to the law or real estate regulations are accounted for.

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.
 

 

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

0 commentsRichard Bleuze • December 18 2008 12:02PM

Real Estate Forms

 

Real Estate Forms

There are an endless amount of forms associated with a real estate investment, and you will need to know what each form is and keep track of each as they are signed.  Always request a copy of any form that you have filled out or signed.  It is the best way and only way to keep an accurate account of the investment you are making including income and expense.

It makes sense to always have each step of a real estate investment documented. The process is long and arduous whether you are buying or selling a house, and each form that goes along with the process is an important piece of documentation that should be available for review upon request. There are those buyers and sellers who choose to prepare their own documentation, but there are also ready-made forms available. The forms can be picked up at any real estate office or downloaded from the Internet at almost any real estate website. These ready-made forms are easy to use and cover virtually all transactions you may need to be documented.

Forms include basic real estate transaction requirements, as well as legally binding paperwork necessary in all real estate deals. The forms can be purchased individually or you can buy a package that will pretty much contain everything you need. Individual forms are more appropriate for short-term leases like vacation rentals and in most cases other rentals like apartments or homes. If you are planning on buying or selling a home, then you will need a set of forms, so it is probably the wisest choice to purchase them all at once. 

Prepared forms are accurate, legal and up-to-date in most cases. To be sure, you can check with your local law and real estate office to make sure the forms are current and any recent revision to the law or real estate regulations are accounted for.

With ready-made real estate forms, the process of transactions is easier than every, and they are designed so that you can do them on your own or with the help of a realtor.
 

 

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

0 commentsRichard Bleuze • December 11 2008 08:20AM

Real Estate Brokers

 

Real Estate Brokers

When someone purchases a home, it is a big decision and there is a real estate agent or broker there to help in the decision making process. There is a difference between real estate agents and brokers because a broker takes on more of the administrative responsibilities. Whereas there can be many agents working with people interested in one property, there is usually only one broker per property.

A real estate broker is a professional who is able to work as a mediator for buyers and sellers of real estate. The job of a real estate broker takes a proactive approach looking for buyers who have a property that a seller wishes to sell and does it in a way so that both are happy.  A real estate broker usually has a relationship with a local realtor or can also be a freelance broker that focuses on selected projects almost anywhere in the country. Unlike a real estate agent, that is more or less a sales person for a broker, a broker usually does not receive a commission but is compensated through the application of agency fees that are related to the broker's services. Another difference between an agent and a broker is the agent pays more attention to getting a sale, whereas a broker looks for sellers to sign up with a real estate agency.

In some countries, real estate brokers must be regulated. They are required to have a degree of training and certification by an accredited real estate company. There are also other legal entities that a real estate broker must adhere to in order to be compensated.

A real estate broker really has to look for opportunities because not everyone who matches buyers with sellers has to be a real estate broker, and in some cases an attorney will act in the same capacity receiving a fee for services related to the sale. Also, buyers and sellers who wish to carry out a transaction without using a real estate agency can do so without either having or needing a certified real estate broker.

There are also contra brokers that are much like a real estate broker that initiates a transaction for an investor, but the contra broker will handle any action that is required to work with the initiating broker to successfully finish the order issued by an investor. When on the buying side of a deal, a contra broker will try to ensure that the purchase goes through without snags, and when on the seller side, the contra broker will perform all tasks associated with the transaction efficiently and in a professional manner. 

 

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

0 commentsRichard Bleuze • December 04 2008 05:07PM

Real Estate Bird Dogs

Real Estate Bird Dogs

A very important part of a real estate plan is a person known as a bird dog. A bird dog's job is to find property for those wanting to invest in real estate. They never have an attachment to the investment property after it is found and turned over to an investor. The real estate bird dog finds the leads that look good and can be sold at a fair price.  A bird dog is paid a referral fee by at he investor to come up with great leads.

Bird dogs usually find homes that are being sold by an owner. They bring it to an investor that pays a certain amount for the bird dog's lead. They look for people who have circumstance that prevent them from keeping up their mortgage payments. Therefore they may be facing foreclosure. It may also be a second mortgage that cannot be paid, a death by the owner of the home, job loss, or other family or career issues.  All of these circumstances are variables that a real estate bird dog looks for and hands over to an investor who tries to sell the home.  When they do, the bird dog receives a commission.
A bird dog is a good researcher and knows what the best deals are and where to find them and will use a systematic approach to find these deals.

Understanding the process of real estate, and the ways to use different resources can help you to find the best deals and make the best deals.  If you aren't sure where to start, using a real estate bird dog is a good way to sniff out what is available to you.  This will give you the ability to claim or give away a piece of property on the market. 

In summary, the basics of bird-dogging involve having enough spare time and talent to locate real estate property that is offered at a good price by a motivated seller. A good bird dog will collect names of potential sellers and buyers and prepare a presentation to a potential investor. He or she will then collect a finder's fee from the investor for the work done.

 

ABOUT THE AUTHOR:  

Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles.  For more information, visit his website at http://www.westsangabrielvalleyrealestate.com

 

2 commentsRichard Bleuze • November 18 2008 09:17AM « Previous 1 3 4 5 6 7 Content © 2009 Richard Bleuze. Design © 2009 ActiveRain Corp.
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