Real estate investing can be both a complete failure or a complete success. Yes, location, location, location is hugely important, but so who you are dealing with is even more important. Unfortunately, there are some really unscrupulous people in the world of real estate. For instance, those people who tell you that you can be a millionaire on late night television should always be avoided.
You should never invest in real estate before having a few affairs in order. First, you need the capital to make an investment. Also, make sure that you get to know the real estate market and learn about the neighborhoods you are interested in.
Investing in real estate, therefore, shouldn’t be about the appreciation, but rather about the cash flow. Your cash flow is how much you end up with at the end of the month after all your obligations have been met. If you can, try to leave your cash flow alone in a bank account to create significant savings. As rent prices go up, your cash flow will rise too. Best of all, your mortgage payments should stay the same. You should be looking at a cash flow of at least 20%. There are some great online resources in terms of calculating your cash flow.
In order to make a good real estate investment, these are the things you should be looking for. The ideal investment property is one that doesn’t require too much maintenance or management. Unfortunately, this isn’t always as easy as it may seem. You need to be able to invest a lot of time in order to find these properties. You will need to look into all your available options and research and analyze them properly. Once you decide to start investing in real estate, you will probably want to get started straight away. As tempting as it may be to invest in the first thing that comes along, you really shouldn’t do that. Unfortunately, if you choose the wrong property, you will struggle to ever earn your money back, let alone see a profitable return.
A Glance At Important Aspects When Looking At Selling a House
A lot of people are investing in real estate because they really want to earn more money in the foreseeable future. If you may buy a house for a particular value today, it’s going to be more expensive in the next couple of yours if the real estate market will probably be stable. Nevertheless, you’ll need to think about how challenging it’s to sell a house. You may see lots of articles stating that they can sell a house very easily or there are ads telling you that they could sell the house in a few months. You can bring the price down, but this is not an advisable thing to do.
Right now in the real estate market, the supply totally surpasses the demand, but you could find different methods to sell your house successfully. Here are a few of the suggestions on how to do this.
The Curb Appeal of the house
First impression lasts so you need to be certain that your home is appealing enough for prospective buyers. If you’ll put yourself in the shoes of a buyer, what are the things that you want to check out in the outside of the house? Is your house good enough to draw in the attention of potential buyers or you should perform some maintenance? The exterior of the house will probably be the first thing that the potential customer will see so you have to know that they are always looking at the external design of the house that they would like to buy.
Make Upgrades to Your property
You should make the renovations needed for the outside and inside of your house to make sure that you will probably be able to attract the buyers. They always want a complete package when buying a house so you need to make certain repairs. If you’re the seller, you must make certain that you could fix everything. Nonetheless, you should not over enhance the house since there are some upgrades that won’t really make a big difference to the asking value of the house. Upgrades will certainly boost the value of your home together with its chances to be sold, but you can’t make any renovations that may not provide any benefits to you. Do your research and put money into the things that could offer the best return.
Start Depersonalizing your house
Most of you would claim that adding more design can make it more appealing to the buyers, but this is a mistake because your personal items, art works and collectibles will not attract the customers. You may remove these items and leave out the important furniture so your house will absolutely look larger. The goal is to enable your buyers to visualize themselves in the house.
They will begin pointing at the different parts of your home while visualizing what they want to put in there if they are going to buy it. It only ensures that your personal items have to be removed in the house because it’ll make it tough for them to imagine.
The Price Should be Competitive
If you’re likely to sell a home in Howard County, Maryland, you should place a competitive price for the property. If you will put a lower value, it will actually be similar to leaving money on the table and if you put a high price, it’s going to be unattractive to the customers. In case you are speaking about home buying, the customers always look for houses which are very similar to yours and compare the costs. If your house is very costly, the customer will check out other houses and ignore you. Most of these buyers are only counting on home financing so they cannot afford houses that are too costly. Even though you may sell the house for a lower value if you want, you won’t be able to get back your investments.
Locate A Real Estate Agent
You’re making a big mistake if you believe that you can sell your house on your own. In case you’re not really a professional real estate agent, it’ll be difficult because you don’t have the experience and knowledge to do this. In case you’re planning to do this on your own, there is a chance that you will not be able to sell your property or you will not get an excellent deal. You may get fortunate and obtain an excellent deal for your home, but you cannot count on luck alone when selling a house because this is a lot of money. You should hire an agent and permit them to do everything for you. You’ll need to pay them, but this is a lot better than acquiring a bad deal because you don’t have any idea what you must do.
Before you opt to sell your house, you must think about all of these simple suggestions so you will not make a mistake. It is quite difficult to sell a property so you have to know anything and everything about the real estate market.
Just about everyone who has renovated their home has a horror story. The unfortunate fact is that many homeowners could have avoided the mess had they hired the right person. Below are a few problems that can go wrong and how to avoid having them.
All of the quotes are too high
People tend to assume what they hear from television and word of mouth is what a renovation should cost. Do a lot of research to find out what yours will cost. Be realistic when it comes to your budget. If you can’t afford it, it is better to hold off for a while than hire someone who will do lazy and incomplete work.
Getting caught without a building permit
This happens all the time. Many homeowners don’t think that the permits will apply to them; or, they think nobody will notice they didn’t have one, or that they can play the ‘i had no idea i needed a permit’ card. Permits are legally required. If you decide to proceed with the renovation without one, you can pretty much assume you will get caught, and when you do, you’ll be paying a hefty amount in fees. Realize that permits are your friend. They are there to protect you, to be sure that the home is ‘safe.’ You should go to your City Hall, and let them know that you need a building permit. After you receive one, inspectors will stop by once and a while to make sure everything is running according to code.
Your contractor is a no-show
This is one of the most common complaints. Most of the time, this happens when your job is smaller than his other clients. If they are only painting your house, you can probably expect that they will spend less time at your house, and more on their larger jobs where they are making more money. Be sure to meet with a couple of contractors rather than just one, and always be sure to check for reviews.
He isn’t up to the job
Every profession has a specialty. Just because someone is a contractor, does not mean that they know how to do everything when it comes to renovating a home. For example, an electrician knows how to install outlets, but he won’t be able to install your roof. Ask to see the work they have done in the past. When they describe it to you, you should be able to tell if they know what they are talking about or not, even if you don’t know anything about the subject; look for confidence when they speak.
Communication between you and your contractor is paramount during a home renovation. Before you begin, you should sit down and discuss a schedule; find out how often they plan to come, and what other jobs they have going on, as well as prospective ones.
Your contractor has to juggle between you and a larger job
When choosing a contractor, you will find there are two types of companies: the larger company with an infrastructure to handle any size job and the smaller company. Most construction companies are run by just a few guys jumping from job to job. If they land a large project, they may have to pull resources from their ongoing jobs to meet the needs of the new client. If you have chosen a smaller company, you will be left with two choices: have patience or hire someone else.
Problems along the way
This almost always happens, especially in an old house. Older houses usually have internal problems that you’ll know nothing about until later down the road. Be sure to not spend all of your budget in case you run into any issues.
Maxing the budget out too early
One way to avoid this is to not select the most high-end materials and finishes. Instead, focus on concrete, windows, and drywall, for example. If you get into a real emergency, its possible that you may qualify for short-term financing. When the project is over, you’ll get an assessment done on your newly renovated home which should allow you to refinance to include all your higher interest loans and credit cards.
Not being pleased with the end result
Homeowners will sometimes rush into arrangements with contractors without working out details adequately. If you leave it up to the contractor to decide on your finishes and finer points, you can expect to be let down. certainly be disappointed.
There are many homes for sale on the market with pools. In certain regions such as the South, for example, pools are very prevalent. Buyers that purchase properties for the sole intent to rent them out for a profit, are generally hesitant to purchase a house with a pool and many wonder if it is a good idea or not. Many of them are inclined to run, not walk away from the house.
On the other hand, if the property is in a hot climate, you could actually earn even more money in rent than you would without a pool. Here are some good thoughts to consider when deciding if you should rent a house with a pool.
Surveys have been done that show swimming pools are one of the top features that a Millennial looks for in a home. In this sense, a pool can be a major renting point for renters. On the other hand, families with toddlers might not want to rent a house that has a pool, and older people generally do not care for one. So, while a millennial may be willing to pay more in rent for the house, and older person probably will not, and will walk away as they don’t want to pay a higher rent for a pool they don’t care to use.
This is a major concern. If someone drowns in your pool, no matter who it is, you can be held responsible; even if it is a trespasser. If you have a rental property that includes a pool, it is essential that you have a fence around the pool with a gate that locks. You can also install sensors that let you know when someone is near the pool. Speak with a legal liability professional who can let you know what the pool safety laws are, so that you are armed with the information before you decide to purchase the house.
Maintenance and repairs
Maintaining a swimming pool is a lot of work. It involves skimming, vacuuming, adjusting chemicals, cleaning the filters, and chlorinating, weekly. You can do it yourself, or you can hire someone. Letting the pool be neglected will result in spending a lot more money later, as it is very expensive to clean a pool that has not been taken care of.
Before purchasing a house with a pool, call an insurance agent, as you’ll need an absolute minimum of one million dollars if you have one; you must make sure that your general liability coverage will cover the pool. Consider setting up an LLC, as this type of coverage will protect your personal assets.
Add-on to your lease.
Put an addendum on your lease detailing pool rules. Include whether or not the tenant will be responsible for maintenance duties, and also, a demand of notification if they notice any problems arising with the pool. Let the tenant know that she’s responsible for repairing or replacing anything she might have damaged.
For landlords, a common question they ask themselves is whether or not they should rent to college students. Even those who don’t necessarily want to, it can be tempting if the home is located near the university, or, if the house hasn’t been renting for a while. Keep in mind that there are benefits and risks no matter what demographic you rent to. Here are some benefits and risks of renting to college students.
•Many young people can’t find jobs and so they are returning to school. This creates a greater need for college housing, both on and off campus.
•Properties near universities typically can ask for more in rent.
•It is typical for parents to cover their child’s rent while in college; this should give you peace of mind, because rent will likely always be paid on time.
•Students usually do not have as high of expectations when it comes to where they live. They also do not usually have unnecessary demands the way that older renters do, and aren’t usually as picky when it comes to appliances.
•Sometimes they pay in advance. Sometimes parents would rather just pay for a semester in the beginning rather than continue to pay each month, worrying if their child is going to forget to give you the rent check or not.
•You can advertise the apartment on the college’s website, as well as around campus. College students usually begin their apartment search on their university’s homepage.
•Younger adults can be immature and lack control. They may have parties, be noisy, or not take care of the house. Beware especially if you have carpet.
•Students have little to no experience living away from their parents yet. They are used to everything being taken care of for them. They likely haven’t had to do their own laundry, clean the dishes, pay the bills, or anything of the sort.
•Students are harder on apartments that older adults as they don’t plan on staying long. This means they have less incentive to keep the place up.
•Certain institutions are known as party schools, increasing the risk that some students may do damage to their apartments.
•Have your attorney craft a special lease tailored to renting to college students. It should include co-signers as well as clauses on noise, maximum occupancy, and damages/repairs.
•Add both parents to the rental agreement as co-signers since minors can’t enter into legally binding contracts. Consider having parents co-sign even if the student isn’t a minor.
•Specify rules that may sound unusual but are probably necessary. They would include staying off the roof as well as banning candle burning, fireworks or fires, and charcoal grills.
•Have the student pay the utilities. They should see the result of having the air conditioning going all day or leaving the heat turned on full blast.
•Conduct tenant screenings on both the students and the parents. Students can be difficult to screen since they won’t have much, (if any) of a credit history. That’s why you should screen the parents as well.
•Find out from the school if whether or not your prospective tenant has been evicted from a dorm.
Residential designers bring a lot of knowledge and skills to make sure all aspects of remodeling and custom home projects go smoothly. Situations arise for which only an experienced professional can apply his or her creative problem solving to save time and money. Here’s why it’s worth it to hire a designer.
You’ll save yourself a lot of time. You may not know how certain structural choices can impact installation; you also may not know about certain options for new materials or technologies that might be cheaper, better or more appropriate. Its also crucial to have someone who understands how your building assembly meets current building code requirements.
Codes outside the building industry to understand. When designers submit drawings to the building authority, a plans examiner reviews them and issues a revision notice to address any variances from the current codes and construction standards.
Depending on your needs and budget, a designer can guide you through the relevant building application process, research planning legislation, helping you hire contractors, recommend subcontractors and manage the construction phase of a project on your behalf.
They already know the lingo. So much of a project is communicated using 2D drawings, and they can be difficult to interpret, which can arouse confusion, especially if your contractor isn’t quite familiar with the drawings. It also is helpful, because sometimes a contractor is busy and hasn’t had the time to really look at certain parts of the drawings, critical elements of the details can be overlooked. A designer knows how to stay on top of this.
They’ll be on your side. If you’re having problems with contractors on your project, it might be tough for you to verify that they are properly carrying out the intent of the drawings, or even which contractor is actually responsible for the issue.
It can be hard to know where the responsibility for one contractor ends and the other begins. Time and again we’ve seen things get overlooked or improperly constructed early in the process, which affects contractors later in the job. And if that earlier contractor has left to another job, it’s oftentimes difficult to get the person back onsite to fix those mistakes.
If you want a space that has lasting appeal and adds to the value of your investment, you need to hire a designer. Designers have the skills to include the features that will maximize your house, while making sure your project runs smoothly.
Access to other professionals. Being in the design business means meeting lots of other pros who also work on residential projects. From structural engineers to painters, your designer probably has quite the network of skilled contractors who can get the job done within the given budget.