How To Transition Into Real Estate

July 21, 2014

Whether you have always had a passion for sales or if you simply want to get into the real estate market for your own future,  transitioning to real estate can be done in less than a year with enough studying, dedication, and preparation.

Consider Your Area of Interest

If you have an interest in working in commercial real estate or if you are drawn more towards residential properties, it’s important to consider your own preferences before you decide to pursue a career in real estate. Knowing whether you prefer representing commercial buildings or if you want to help families buy and sell homes can guide you in the right direction to get started with  accomplishing any goals you have set.

Read Books and Research

Begin the transition into real estate by investing time in researching and reading books by real estate moguls who represent properties you are most interested in. Not only will you gain wealth of knowledge from various bestsellers written by professionals real estate agents who are well-known in the industry, but you will also gain the ability to better connect with potential clients you want to work with professionally.

Get Certified

Taking a real estate agent course and getting certified in you local city or state is often required for you to legitimately begin listing homes, showing them and assisting others with their own hunt for any type of real estate. Research various certification courses and requirements you need to complete in your state before you begin forming your own agency or applying to work as a professional real estate agent at a company near you.

Build a Name For Yourself

Building a name for yourself once you enter real estate is essential, regardless of whether you have chosen to specialize in commercial or residential properties. Building a name for yourself can be done with an official website, local listings as well as by developing an online presence with the use of social media accounts. Having Facebook, Twitter, and other social media sites to represent yourself professionally is a great way to showcase and feature properties you are currently representing or that you have represented in the past.

The more you update and get involved with locals who are interested in real estate themselves, the quicker you can build your portfolio and being making a name for yourself.  Regardless of whether you want to help others invest in chain commercial buildings, warehouses or even the homes of their dreams, making a connection with any potential client is a must if you want to be successful within the real estate industry. If you don’t have clients, you don’t have anything.

Having an idea oh how to go about transitioning into real estate as professional is a way for you to feel more confident and comfortable even when you are working in a highly-competitive market/environment. The more you know about real estate prior to working as one yourself, the less likely you are to encounter hangups when seeking out new clients and building a professional reputation for yourself.


Myths About Real Estate

July 16, 2014

There are countless things that everyone “knows” about real estate.Considering that a house is usually the biggest big-ticket item the average person will ever buy or sell, it would be wise to spend some time searching the truth and the myths.

Compared to buying, renting is always a financial loss:

This is the most popular real estate myth. Buying only produces results when you own the home for several years. Every real estate market has it’s ups and downs that can’t be predicted. Transaction and maintenance costs of a home can require seven or more years of ownership to even break-even.

A house is a good investment:

If you were buying or selling a home during the big market crash of ’08, you know this to be untrue. Breaking even was about the best case scenario you could look for because houses weren’t increasing in value in a downward market. The growth of home prices derives almost solely from inflation. A house does not produce anything; the price can rise only with the purchasing power of buyers. If there’s no buyers, there’s no money coming in.

The best mortgage deal is a the fixed 30-year:

This is true. If you actually stay in the house for close to 30 years.

Paying one-third of income towards the mortgage is affordable:

Each situation is different. If you can pay more, pay more, and vice versa. Track your current income and expense to determine how much you can actually pay each month.

The down-payment should be 20%:

An ideal down-payment ratio would be 20%, however, few buyers can actually afford that. There are alternatives. Some government programs offer qualifying borrowers very low down-payments. Many borrowers chose to pay private mortgage insurance so they can make a minimal, upfront down-payment; it is then removed once the borrower has accrued sufficient home equity. A high-rate secondary mortgage is also available if you have good credit. With this option it is possible to borrow a portion of the down-payment.

Borrowers must also always consider the transactions fees in addition to the simple loan rate. Mortgage lenders are not faceless and interchangeable; each is different. If you are buying in a competitive market, chose a lender with a reliable reputation which may affect the seller’s decision. A lender well-liked by realtors will go a long way.

 

 

 

 


When Not To Try and DIY

July 2, 2014

When it comes to “Do It Yourself” your eyes can be bigger than your skill. Paint your room, pull up carpet, or plant some annuals, but when it comes to the tough stuff, it’s best to know when to call for help.

1) Anything That Involves Water

Don’t mess around with stuff that could hurt the house, like flooding the house and creating a mold situation. Unless it’s something simple like unclogging a toilet or fixing a drain, messing with plumbing can cause major dilemmas. It’s always better to ask a plumber before trying to tackle any plumbing issues on your own.

2) Anything That Involves Electricity

If there’s a risk of being electrocuted, ask an expert. You usually don’t get a second chance with electricity.

3) Hanging Drywall

Give it a shot in an easily accessible area. But in complicated installation areas and especially high areas, get a professional. It’s too easy to fall trying to do such a complicated process on stilts. Any process that could potentially end in a trip to the ER is better fitted for a professional.

4) Demolition

Swinging a sledge hammer looks easy, but you could also do great damage if you don’t know how to go about it. Beyond the risks of exposing yourself to asbestos, lead paint dust, and other hazardous material, who knows what else might be behind those walls. Gas pipes, water lines, live electrical wires are just a few of the dangers.

5) Roof Repair

Not only is this dangerous, but DIY patches on the roof could also end up damaging it even worse, cause a leak, and maybe void that part of your home warranty. Most roofing companies will come out to give you a free estimate anyway, so no need to risk your safety. If you suspect a problem, call your insurance company and have them check it out. It will cost you nothing.

6) Baseboards and Molding

Unless your confident you can properly calculate the angels and master that whole “measure twice, cut once” thing, you should leave this to the experts.

7) Paving Your Driveway

While the installation may look relatively simple to install, the reality is that the measuring and positioning of paving stones can be very time consuming. A team of professionals can cut installation down to a day, depending on your driveway size.  This is a very complicated and time consuming project. To save yourself the time and the frustration, it’s almost always easier to call a professional.


How To Transition To Real Estate

June 25, 2014

Whether you have always had a passion for sales or if you simply want to get into the real estate market for your own future, transitioning to real estate can be done in less than a year with enough studying, dedication and preparation.

Consider Your Area of Interest

If you have an interest in working in commercial real estate or if you are drawn more towards residential properties, it’s important to consider your own preferences before you decide to pursue a career in real estate. Knowing whether you prefer representing commercial buildings or if you want to help families buy and sell homes can guide you in the right direction to get started with accomplishing any goals you have set.

Read Books and Research

Begin the transition into real estate by investing time in researching and reading books by real estate moguls who represent properties you are most interested in. Not only will you gain a wealth of knowledge from various bestsellers written by professional real estate agents who are well-known in the industry, but you will also gain the ability to better connect with potential clients you want to work with professionally.

Get Certified

Taking a real estate agent course and getting certified in your local city or state is often required for you to legitimately begin listing homes, showing them and assisting others with their own hunt for any type of real estate. Research various certification courses and requirements you need to complete in your state before you begin forming your own agency or applying to work as a professional real estate agent at a company near you.

Build a Name for Yourself

Building a name for yourself once you enter real estate is essential, regardless of whether you have chosen to specialize in commercial or residential properties. Building a name for yourself can be done with an official website, local listings as well as by developing an online presence with the use of social media accounts. Having a Facebook, Twitter, Tumblr and even an Instagram to represent yourself professionally is a great way to showcase and feature properties you are currently representing or that you have represented in the past.

The more you update and get involved with locals who are interested in real estate themselves, the quicker you can build your portfolio and begin making a name for yourself. Regardless of whether you want to help others invest in chain commercial buildings, warehouses or even the homes of their dreams, making a connection with any potential client is a must if you want to work successfully within the real estate industry after your transition.

Having an idea of how to go about transitioning into real estate as a professional is a way for you to feel more confident and comfortable even when you are working in a highly-competitive environment. The more you know about the real estate industry prior to working as one yourself, the less likely you are to encounter hangups when seeking out new clients and building a professional reputation for yourself.


What is a Final Walk-Through?

June 4, 2014

The notion of a “final walk-through” seems to confuse both buyers and sellers of homes. Here is an explanation of a walk-through.

Walk-Throughs

What is a walk-through? What is its purpose? Is it important or just a formality? Can it be used to re-negotiate the terms of the contract at the last minute?

Typically the buyer just before settlement conducts a final walk-through. The idea is to be sure the seller is delivering the home to the buyer in the condition they agreed to under the terms of their contract. Therefore, it includes checking on anything the contract says about the condition of the property.

One requirement often seen in contracts about the condition of the home at time of settlement and possession by the new owner is that it will be “in substantially the same condition” as on the date of the contract. Another frequent requirement is that it will be “broom clean.” Still another is that all the working parts of the home (such as heating and cooling systems, plumbing, appliances that convey, electrical systems, etc.) be “in normal working order.”

Sometimes contracts require things like new carpeting to be installed, gutters to be cleaned out, and HVAC systems to be “professionally serviced and filters changed.”

Sometimes contracts require things like new carpeting to be installed, gutters to be cleaned out,

Read Your Contract

It’s a good idea for both buyer and seller to review their contract paying attention to what is said about the condition in which the home will be delivered. Those are the things that should get attention at the walk-through.

While walk-throughs are a formality of closing or settlement, they are not something you should take lightly. This is your chance to get any problems straightened out.


Your Best Advice In Buying Real Estate

May 28, 2014

IF you have a good idea of what you’re doing, buying a piece of real estate is ta rewarding experience. Do not be afraid, these tips can help you not make that mistake.

When considering purchasing a piece of realty that will be your primary residence, you should visit the property several times at varying times of the day. You want to see what it is like during the day when everyone is at work, at night when all your neighbors are home, and on the weekend, if/when they trend to throw loud parties.

Use tools that are on the internet to your advantage. Find a foreclosed home that is perfect for you and learn how to go about buying that home. There is a great deal of information on the web that will help you to get a great deal on  a new home for your family.

By searching for the best prices, one can assure that they will be making the most of their money. Homes that have been foreclosed on can be found for attractive prices, although more money may need to be invested in the home. Other homes can be bought for more may require less money invested.

Be open to new possibilities until you have made your final decision. Houses come on the market every day. If you’ve found a house you like, keep your eyes open fore a house you may love. Working with a realtor will come in handy for this aspect of home buying as they usually have access to new properties before the general public.

Always sign a contract to buy a home “subject to satisfactory inspection”. No matter how beautiful a home is, there could be hidden problems that a good inspector can uncover quickly. Such as, a bad roof or untrustworthy wiring. If the inspector does discover any major issues, the contact can be amended so that the seller either has the repairs made before the sale closes or the sales prices is lowered to reflect the defects.

If you are looking at buying real estate as an investment opportunity, it is a good idea to look into properties that will require some work. The value of the home will increase right away after doing this kind of work. Sometimes, the property value will increase more than your investment value.

When buying property, it is best to remember that you do not have to settle for the first prices you see. You should always shop around for financing, in order to get the best deals. Also, you should verify that all of the terms of property are written down, with a loan officer, as some lenders try to charge hidden fees.

When purchasing investment rental property, be sure to carefully investigate the rental amounts that are being charged in the same area for comparable dwellings. If the rent available is not enough to cover the cost of maintenance, insurance, and mortgage (if applicable), it is wise to seek  an alternative property elsewhere.

Location is very important. You are far better off buying the ugliest house on the best street in the nicest neighborhood than you are buying a perfect home with upgrades and amenities on an ugly street in a questionable neighborhood. Property values are determines much more by home surroundings than they are by their cosmetics.

When you are ready to buy a house, one of the first things you should do to assure that you are ready for this step is to get a copy of your credit report. All mortgage companies will look at this to decide if you are loan worthy. If your credit is really take, take the time to pay outstanding debt and start house hunting when your credit is where it needs to be.

If you are looking to purchase a home, it is wiser to get a home that you can afford over one you would consider your “dream home.” You need to take into account what your monthly income can afford, so you do not bite off more than you can chew as far as the amount of your monthly mortgage payment.

Hopefully this article has made you realize that buying real estate is not that complicated if you do your homework and know what your up against and prepared for. You must simply be proactive in finding information and asking a lot of questions. You will be ahead of the game when purchasing property if you keep this information in mind.


Home Buying Benefits

May 21, 2014

Even when the economy has it’s ups and downs, most people generally realize most of the common benefits of owning a home rather than renting. Home buying benefits can be substantially and financially rewarding, especially after the house is completely paid for. Aside from the basic financial benefits, there are other reasons to buy a home that it seems people aren’t talking about quite as much- the social and psychological aspects of it. Here are some of the lesser-known advantages to buying a home, along with one or two of the classic reasons:

Investment: The long-term financial benefit must be discussed at least a little in any article about home ownership. Even if you’re not a financial guru, owning property for an extended period of time can be extremely beneficial to you. As long as you take care of your home – fixing what breaks, and keeping it in a good state of general repair- your home should increase in value.  Even though the market fluctuates (especially recently), there is at the very least a gradual increase in value over the years.  Should you get into a finical bind at some point in the future, a home is a great asset to have to bail you out and get you on your feet again.

Stability: One of the most commonly-overlooked benefits of owning a home is the concept of stability, especially if you have or are thinking about starting a family. There’s no shame in renting an apartment or house, but owning a home in the neighborhood of your choosing can offer stability for you and for your children, especially concerning the eyes of the community and where your children go to school.

Personalization: When renting, it’s not yours. If you don’t like the color of the walls in the living room, it’s typically just something you have to live with, unless you have an understanding landlord. When you own your own home, the world is yours. You can paint whenever you want, embodying any style or whim you choose. This can be especially helpful if you have small children who would like their rooms personalized. Not only painting, but you can add on a deck, take down the porch, etc. It’s all up to you and your tastes.

So while you consider all of the home buying benefits that have been talked about to death on television, newspapers, and financial magazines, consider the social aspects as you take the plunge. Buying a home can be a wonderful financial and psychological experience for you and your family.

 


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