The property management business is a really good idea for someone who wants to make a decent income without taking too many risks. My foray into property management was purely by chance. I had about 15 flats in Dundee and employed a full time handy man to collect rents and sort out any minor repairs. My friend Chris knew that my properties were well managed and he asked if I would look after his mother’s flats. I knew that she was not well and because of her health, in the last year half her flats had lain empty. I reluctantly agreed and started renting out her properties.
I managed to get her occupancy up to over 90%. My charging structure was very simple as I kept 10% of her rent and she also paid all costs. She was delighted with my service and told her friends who approached me to do the same for them. Being busy but not wanting to say no straight away I offered to provide the same service but at 15% of the monthly rent. To my surprise they agreed.
Word of mouth got around and soon I had to start turning people away as I was far too busy managing my packaging company to do property management full time! Had this business not been doing well I could easily have started managing properties full time. I even managed to buy a couple of apartments at knock down prices when one of my clients wanted a quick sale after his tenants left. They offered me the properties for the same price they had bought them for a couple of years ago. I knew the market had risen substantially since then and bought them straight away. I spent a couple of weeks doing them up and had them rented out in no time. When property prices started rising strongly I sold both of them, making decent money only to miss out on the real boom in prices! If you have time on your hands why not consider managing other people’s properties? Be warned though that you are on call 24/7 if an emergency happens at any of the properties.
Flipping houses is becoming big business in the world of real estate investment. Unfortunately it takes all kinds of ‘flippers’ to make the world go around and some of them aren’t nearly as conscientious as others. If you are going to get into the business of flipping houses and want to make a living, and build a good reputation, for producing quality results you need to see to a few details throughout the process. 1) Do what needs to be done. Don’t cut corners and create situations that will put the family that purchases your home in personal or financial risk. You want to create a safe home for the family or person that ultimately makes the purchase.
You do not accomplish this by taking shortcuts and using shoddy workmanship. 2) Avoid spending money that doesn’t need to be spent. By this I mean don’t spend money creating more work. Many people do this by deciding to tackle additions, rip out walls, or changing floor plans. These kinds of changes are best left to the buyer unless they will significantly improve the asking price you can bring in on the house.
Otherwise spend the bulk of your money in kitchens and baths where they are best known for bringing in bigger profits. 3) If it ain’t broke don’t fix it. There is a lot of wisdom in this age-old saying. There is no reason to go in and fix something that doesn’t need to be fixed unless doing so will improve the value of the house to its buyers. 4) Always work within a budget. Most people set a budget when planning to flip houses but very few manage to work within that budget. This is the difference in making the profits you anticipated and putting the entire project at risk. 5) Create a home that the buyer will want to live in not the home that you will want to live in. You should never flip a house or design a flip according to your tastes; it is a recipe for disasters in more ways than one. First of all, it is unlikely that buyers will be able to afford it.
Second, it sets you up for hurt feelings if a potential buyer rejects any small details. Third, it often raises the price you must seek for the property in order to cover the increased costs of decorating and designing according to your taste. Finally, it often leads to unnecessary expenses, which defeats the purpose of a quick flip type of project. 6) Time is money. Remember this in all things. The more time it takes to do the flip the more money it’s going to cost and the less money you are going to make. Plan small changes that have a big impact and can be done quickly to get the most out of your flip. 7) Never attempt a champagne flip unless you have a champagne budget to back it up. Just as flipping above the market is an unwise move it is equally unwise to flip a property beneath your target market as well. Do not attempt to flip a house in an upscale neighborhood if you can’t manage the upscale building supplies and appliances that will be needed in order to make it a success.
While these aren’t guarantees for success they are solid advice that will minimize the risks you face when flipping properties. PPPPP 575 .
One of my strategy to become a millionaire is through properties. I wanted to accumulate a net worth of 1 million in properties. My strategy is to get 5 properties with good rental yield (8% and above). I will be living in one of this property. So if one property is average 200K, 5 property will be 1 million. I will be able to generate income from the property.
So my estimated income generated from rental will be 200K X 4 X 0.08 = 64K per year (X 4 because only 4 property will be rented out). However in the initial stage I will not be able to put the rental income into my pocket because the income will need to be used to offset the installment. I plan to accumulate all my 5 properties within 5 years time, 1 per year. Right now I own 2 properties.
One of the property that I lived in, and another one is rented out. So I have another 3 to go. My strategy is to settle the property that I lived in as fast as possible. I am targeting to settle that in less than 5 years time. For the rented properties I plan not to settle if fast at the moment as I need to focus on the property that I lived in first. Sounds easy huh. Actually not as easy though. First you need to have enough monthly income for you to eligible to get loan from the bank. The bank will only borrow you money when you don’t need it. Then you may need certain amount of down payment when you buy each properties.
You also need to do a lot of research and familiar with the area that you are targeting for before you decide to get the property. Buying a property is a life long serious commitment as it may takes you years to pay back the installment. So don’t act bluntly. Another problem can be, what if you cannot get rental? So hot location is the main concern here. What if your tenants quit rents? You will need certain amount of emergency fund to cater for this. Although not that simple, but it is definitely a workable way to millionaire. It may seems a little bit slow, but its a surer way. Set the target, plan accordingly, action and work hard, then you will achieve it one day.
It is very important to know the ‘accurate’ market value of your real estate in Maryland. There are two ways in which one can determine the exact market value: one is through property appraisal and another is through comparable market value analysis. Usually these 2 methods are used in combination with each other in order to a make a sale price for the seller or offer proposal for the buyer. Generally people tend to have a common misconception that market value and appraised value are same. But they are not same. The market value is almost similar to an appraisal, but it differs because a certified property appraiser does not carry it out.
It is always advisable to appoint a real estate agent, realtor, or broker to update you on the current market value of the properties in Maryland. A market value can be defined as the true worth of your property when it is compared to the similar houses of similar specifications. It is the price that the house would get if it were to be sold at that point in time. The market value of a real estate property in Maryland is highly influenced by the property’s condition, the year when the property is on sale, and how urgently the owner wants to sell the property. It is very necessary to compare the value of your property with the other properties in the market before putting it up for sale.
This way of comparing is known as Comparative Market Analysis (CMA). You should use the Comparative Market Analysis to help you get a better view of the market value of your property in Maryland. Comparative Market Analysis is done by the real estate agent, realtor, or broker. They evaluate sales of equivalent properties to generate an informal estimate of the real estate property’s market value in Maryland. Making a good approximation of the market value of your property is important when you are putting the property for sale. Doing this will give a good value for you to work with, when setting the initial sale price of your real estate property in Maryland. Finally, getting the accurate market value of your real estate property in Maryland is very necessary, as this is the only way in which you can know the ‘true worth’ of your property. For More Details On Real Estate Investment Maryland, Virgina & DC Visit this site http://www.therealestateinvestmentqueen.com , http://www.
I am going to sell my property without an agent. This refrain is being heard more and more these days as the Internet and real estate market evolves beyond the realtor-based transaction. Selling Property without A Real Estate Agent FSBO is an acronym meaning for sale by owner. The advantages of selling as a FSBO are numerous. With real estate commissions of six percent, you are looking at immediately saving tens of thousands of dollars in commissions. If for some reason this does not entice you, keep in mind you can use the savings to undercut the prices of similar homes in your area.
This will move your house quickly off the market and let you get on with your life. The key to selling your property is to be prepared. First, you need to find out the value of the property by looking at comparables in your area or trying an online valuation service. Once you have the value in mind, you need to determine whether this is acceptable. You also need to determine what you are really willing to accept as a sales price once haggling is completed.
Always make sure you know your bottom line and stick to it. The next step is list the property online on a FSBO site. Over 70 percent of homebuyers now find their properties online as the realize there is no need to endlessly drive around looking at homes that they may or may not be interested in. By going online, they can see what each home offers and then visit the appropriate property. Given the use of the Internet by buyers, it is vital that you spend the time to upload pictures with your listings. You are only going to generate interest if the buyers can actually see the property. Every site allows you to upload digital photos and you should do so. Take care to show as much of the property as possible so that you can generate leads that are truly interested in buying. Sellers wonder if they are correct to think they can sell their property without a realtor. With the Internet revolution, it is easy to do so and save tons of money on commissions.
Every year many thousands of properties in Spain are sold to foreign investors. What is the attraction? Firstly the country has a great climate and that is particularly appealing to those people living under the grey skies of northern Europe. Getting there is both quick and relatively cheap. A flight from London in the United Kingdom to Malaga on the south coast of Spain takes only a little over two hours. It is possible to get some very cheap flights with either one of the well known budget airlines or by picking up a spare seat on one of the hundreds of charters that fly to Spain every day. There is a wide selection of property to choose from both in type and numbers.
Consideration of the following points will help to narrow the search. Size of the property, the garden and the number of rooms required. People planning to emigrate with children should check out what schooling is available locally. Consider the local health & social services. Choose between a built up area or open countryside.
How near is the beach, a town, the shops, the bars and restaurants, public transport, its frequency and what time does it stop in the evening? Many developers looking to improve their own cash flow will offer property for sale off plan. The potential buyer may be able to view a show home but in many cases they are literally shown a development plan or a scale model. An initial deposit is payable followed by several stage payments. A couple of advantages, if property prices rise between purchase and the completion of the project the buyer will own a property worth more than they have paid for it. Secondly, most developers will allow the buyer some say in style and design of both the inside and outside of the house. The down side is the amount of time buyers will have to wait until the development is completed, often in excess of 12 months. And of course they don’t know what they are getting for their money until the property is completed. The cheapest property available in a finished state is likely to be an apartment. These are often on an urbanizacion or housing estate that will often include other types of property such as townhouses and villas. These small communities will include a pool and landscaped gardens.
Some kind of security is often employed either in the shape of guards or CCTV cameras. A community charge is payable to cover these facilities. A word of caution. Many of these properties are let to holidaymakers during the summer months. Some to English people with children. The noise these guys make while on holiday has to be heard to be believed. If it’s not the kids during the day it’s their drunken parents in the early hours of the morning. A detached, purpose built villa offers more privacy and seclusion but it will cost more than a comparative property within a community. Buyers looking for a more of the Spanish experience should look at properties within an established town or village. Many of these properties look small but are surprisingly spacious once inside.
A Finca is a property standing on a plot of land in the countryside. It may be a tumbledown farmhouse or a just completed villa. Many fincas have a good deal of land and this may have fruit orchards or olive groves. Finding the right property should be no more than a question of looking. Once a decision has been made on the location and the type of property it is time to talk to the estate agent. Make certain this person is registered with the authorities and holds a license. Many estate agents have a background in time share developments so the hard sell can be expected. Any claims made by agents should, wherever possible, be substantiated by an independent source. Any offers to purchase a property should be made in writing and include the following: The price, how it is to be paid and in what currency. The amount of the deposit, to ensure the property is withdrawn from the market, and when it is to be paid.
The completion date. Who is responsible for the payment of which taxes. And a detailed list of what is included in the price, furniture, fixtures and fittings and a proviso that all systems, air conditioning, etc. are in good working order. It is vital that this is done in conjunction with a solicitor. Many English speaking solicitors are to be found throughout Spain. No document provided by an estate agent or others should be signed without a solicitor having prior site of it. This cannot be stressed enough. When an offer is accepted the solicitor should firstly make a check with the land registry.
Are you looking for a place to build your business? But scarcity of funds is disrupting your way to buy a property for the promotion of your business. Need not worry. Commercial property secured loan is right at your disposal to help you purchase the desired property for your business. Commercial property secured loan is the flexible way to get the property you want for a long-term commercial investment. It helps the entrepreneur to construct a new building, acquire an existing property, and much more. Before applying for commercial property secured loan, it is important for the entrepreneur to choose the right kind of property.
A property other than vacant land, a single family residence, a duplex or a triplex which is a five unit apartment building and comes under a commercial complex is considered as a commercial property. A property consisting of a single apartment unit over a storefront is considered as a mixed use property and can be used for commercial purposes. Commercial property secured loan is usually secured on the property that you purchase with the loan. Other things such as equipments, plants etc can also be placed as collateral. If the borrower fails to repay the loan, the lender has the authority to seize the property.
Commercial property secured loans can be use to purchase different properties for commercial use. These could be shopping centers, motels, truck stops, office buildings, retail shopping centers, storage buildings etc. The choice of property entirely depends upon the requirements of the entrepreneur. The borrower can avail finance ranging up to $250,000,00. The amount differs from lender to lender. The repayment period is usually of 25 years which enables the borrower to repay conveniently. The interest rate and monthly installments are generally arranged according to the type of property, location as well as the minimum and maximum loan amount. The financial status and repayment capacity of the entrepreneur is also considered. Bad credit history can no more cause you troubles. Commercial property secured loan is capable of providing you with enough funds to buy a property for the development of your business.
Knowledge of the credit score can help you get the loan at favorable rates. A number of lenders offering commercial property secured loan have occupied the commercial market. Banks and financial institutions involve lot of documentation work. Dealing with different physical lenders makes you face many hassles. Therefore, an alternative to these financers is the availability of online lenders. You can access infinite lenders right from the computer sitting anywhere in the world. In order to get the best deal the entrepreneur needs to keep a trace of various lenders. He must have the knowledge of which lender will finance which kind of property. Hunting for the right lender will help you achieve a successful transaction. Raise you business to new heights with commercial property secured loans.
Expand your horizons and become a successful businessperson.
Maintenance on a rental property can be a confusing issue. Renters may mistakenly assume all maintenance is the responsibility of the leasing agent and maintenance staff but this is usually not true. In many cases the leasing agent and maintenance staff are responsible for maintaining the common areas and performing major repairs on the apartments but the renters do typically have some responsibilities. These responsibilities are often defined in the rental agreement and the renter should familiarize himself with this document to verify his rights if a dispute arises. Renter Responsibilities Typically renters have the responsibility of maintaining their apartment and the surrounding area. This may include the interior of the apartment as well as deck or patio space.
However, maintenance of these areas applies to generally cleanliness only and not issues such as painting or repairs to the exterior or the interior of the apartment structure or the appliances within the apartment. Additionally, renters are responsible for small repairs in their home. This may include plunging a clogged toilet or changing a light bulb. However, if there are any duties a renter feels uncomfortable performing such as changing a light bulb in a high location, the renter should contact the maintenance staff for assistance. Renters also have a responsibility to show common courtesy to other renters by not intentionally damaging or otherwise marring public areas.
This includes vandalism, littering and even failure to pick up after dogs. Renters who fail to follow these rules of common courtesy may be subject to fines or other penalties according to the rental agreement. Leasing Agent Responsibilities The leasing agent and maintenance staff are generally held responsible for major items such as repairs to the exterior of the building, fixing appliances which are malfunctioning and dealing with plumbing issues such as leaky pipes. Additionally, the maintenance staff is responsible for intervening if the renter is having trouble with public utilities. Problem such as no hot water or heat to the apartment should be addressed by the maintenance staff in conjunction with the public utilities entity. The leasing agent and maintenance staff is also responsible for maintaining the common areas. This may include keeping grassy areas manicured and other common areas looking clean and attractive. When the Leasing Agent is Not Taking Responsibility As previously discussed, the leasing agent has certain responsibilities to perform tasks and address concerns and complaints by the renters. However, when the leasing agent is not fulfilling these responsibilities it could create a harmful living environment for the renter. For example hot water is required to adequately clean dishes.
This is why there should always be hot water to the apartment. Additionally, in severely cold weather the inability to heat the apartment due to faulty utilities or windows which are not properly sealed can create a hazardous condition for the renter. Both of the examples mentioned above are situations in which the renter may put in a hazardous condition by the leasing agent’s negligence. In these situations the renter should contact the Department of Housing to determine the proper cause of action to take in this situation. In some cases the renter may be informed the alleged transgression by the leasing agent is not actually his responsibility. However, in other situations the renter may be informed that the actions of the leasing agent are a serious violation of the rental agreement. In either case, the representative can provide information on how to proceed to achieve the desired results. PPPPP Word count 583 .