Dollar House

The Art of Finding Motivated Sellers

Such is that of good real estate deals, the good deals are those which are not entirely based on the selling price of the home relative to it’s neighborhood, but of the emotions attached to the owners at the time.

For instance, a homeowner may be undergoing a sea of emotion and may be more eager to sell than others. Scenarios such as foreclosure, divorce, or a death in the family-
though quite unfortunate for the homeowners, in reality provides an opportunity for the investor or homebuyer to purchase a home for much less than it’s true value. Instead of thinking of these opportunities as predatory and exploitative of the homeowner, realize that these individuals are eager to sell their homes to resolve a problem-i.e. in a foreclosure or bankruptcy they will have many fees to pay off and as a result must liquidate their assets in order to stay afloat. In the event of a divorce, assets will also have to be redistributed which will incur large legal fees as well, etc. The reasons vary, and the truth is, investors are not only helping themselves with windfall profits but also helping the homeowners in the aforementioned scenarios get out of a financial rut. It’s a win-win, which is what real estate is all about.

So now that you are convinced that the good deals in real estate depend on identifying these motivated sellers, how do you go about and find them? Your local County Recorder’s office is an indispensable research source. Put on your CSI thinking caps, and start finding leads!

1. Notice Of Default: available publicly, is a notice that banks send out to borrowers notifying them that they are delinquent on their mortgage payments.

2. Notice To Condemn: notifies the homeowner that their property doesn’t meet zoning or building code requirements for that county.

3. Notice Of Divorce: this happens before the actual divorce, and provides a clue that a divorce will happen in the near future.

4. Delinquent Property Taxes: back taxes that the State will try to recoup one way or another.

5. Pending probate court cases where the beneficiaries live out of State: Out of state beneficiaries may be more eager to sell for a fair range since they do not have an interest in managing the property remotely.

6. Out of State owners can usually qualify as a possible lead to a good deal.

7: Rental houses – the idea behind rentals is that some rentals are on the market, because owners may have tried to sell in the past with no success, and are no stuck with a property that they really don’t want. Look for clues such as broken windows, graffiti, and other tell-tale signs that this property is not highly valued by the current owner.

8: For Sale By Owner – some of these homes may not have enough equity to pay a realtor. These are prime candidates for a subject to type deal.

In all cases, approach as a consultant trying to solve a problem they may have. Empathy and listening skills are highly important. Ultimately by demonstrating your sincerity you will be able to also reap benefits from this transaction in the forms of:

1: Lower price offering.

2: Subject to deals

3: Flexible price offering.

4: Low to no down payment required.

So after you find these deals, make sure you close in on it as quickly as possible because competitors are everywhere! But first hire a handyman to evaluate the property in question to see if and how much repairs would be necessary on the property and factor that into the overall costs.

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Tax Time Tips For Rental Property Investors

While owning a rental property can be a terrific way to bring in income, those extra dollars can make things complicated when it comes to preparing a tax return.

Fortunately for the 15 million people who own rental properties in the U.S., there are ways to make tax season a little more manageable:

• Store your receipts, bills and statements during the year. This will make it much easier to locate and organize them at tax time. Create an envelope or folder for each property, and put all of your receipts in there during the year. Do the same for regular bills such as the mortgage, property taxes, insurance, utilities, etc.

• Keep good rental payment records. You probably get a lot of checks-and even cash-from your tenants during the year. It can be really hard to figure out at tax time if you don’t stay organized during the year.

• Know what property each check comes from. You can record this with your bank deposits in your checkbook or a spreadsheet or rental property software.

• Use rental property software like Quicken Rental Property Manager 2.0, designed for people who own up to 10 properties and 25 total units. It makes it easier to file taxes and manage rental property income and expenses. This can help eliminate hours at the end of the year preparing for that Schedule E. Using the software, you can simply print the tax report and transfer the data to the form, give it to your accountant, or export data directly to tax preparation software like TurboTax.

• Separate security deposits from rent payments. Security deposits are not considered income if you intend to return them to the tenant, so make sure these deposits are separated from rent payments.

• Flag expense receipts. Some expenses are hard to classify properly for the IRS. When you replace the faucet in the bathroom, is that considered a repair or a capital improvement? It makes a big difference to Uncle Sam because 100 percent of repairs can be deducted this year, but capital improvements must be deducted over time. When you’re not sure, flag those receipts so you can later discuss them with your accountant. Keep them in a separate place or flag them in your expense journal.

• Lastly, don’t forget the mileage deduction. You probably rack up a lot of miles driving to and from your properties and those trips to the hardware store. It can be tedious to keep track of the mileage, but it really pays off since the IRS allows you to deduct about 45 cents/mile. To make it easier, use an Internet map ser-vice such as MapQuest to look up the mileage for common trips-like between your home and each property.

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Subject To: Buying a Home With No Cash

You want to buy a home, but you have very little money saved. What are your options?

Traditional mortgages don’t always require large down payments. If you have a good income, stable job and good credit, you should easily be able to get a traditional mortgage, even without a down payment.

However, if your credit is bad, there are still plenty of options for getting into the real estate market. Despite the mortgage-due-on-sale clause, sometimes a buyer can take over payments on an existing mortgage. It is very unlikely a bank will demand the full mortgage, and risk ending up having to deal with a foreclosure, if monthly payments are being made on time. These sales, called “subject to” sales. In these cases, the seller will require a second mortgage to get their equity out of the home. If there is little or no equity in the home, a contract can be arranged wherein the buyer agrees to pay off the sellers mortgage in a set number of years when they in turn sell the home. Often, this deal is made with the promise of a percentage of the buyers profit going to the seller when the home is sold again.

These contracts allow a highly motivated seller to walk away from their mortgage and either easily get a second mortgage, or start fresh, but receive a check in an agreed upon number of years for a percentage of the homes re-sale. As a buyer, you can assume the mortgage, either live in the home or rent it out, then when it has gained equity, sell it and only then give the person you bought it from a small sum.

While subject-to sales sound complicated, they can really be a great deal for both buyers and sellers with little money.

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The Australian Real Estate Market in 2006

Australia has led the worldwide real estate boom and enjoyed record price increases over the past three years, but as 2006 gets underway many fear that the recent success of the Australian real estate market is not sustainable.

While the Australian housing market may well face a short period of economic adjustment, there are still ways to profit from the real estate sector in Australia. Real estate investors examining the market just need to look a little further afield than Sydney!

Perth in Western Australia is one city where real estate prices remain affordable and where demand for quality accommodation to buy and rent is increasing which is creating an exciting micro property investment market opportunity ripe for exploration in 2006.

The reason for Perth?s sudden popularity from a real estate perspective springs from the fact that the city is enjoying a period of economic advancement led by a vast improvement in employment prospects. Local residents in Perth are benefiting from better paying employment and an abundance of opportunity, and the city is attracting a steady flow of inward migration as job seekers move to the city to take up offers of employment.

Historically Perth?s real estate prices have lagged well behind those of Sydney and Melbourne for example, and the average home finance sought to purchase in Perth is around 30,000 Australian dollars less than the average mortgage taken out elsewhere in Australia. The lower priced accommodation is attracting more interest from investors from across Australia as well who are all seeking a housing market with legs left to run. Furthermore the real estate sector in and around Perth is enjoying interest from international real estate investors who can see the long term prospects available.

As demand for accommodation in Perth increases as the city welcomes new residents, so the prices being charged for rental housing are on the up as well. Anyone who purchases real estate to let out in Perth right now can cash in on this boom in rental rate rises and retain their property while the predicted period of property price growth develops.

Across the rest of Australia many first time home buyers have been temporarily priced out of the housing market as property prices have exceeded affordable levels. While the market readjusts over the short term there are fears that a rental accommodation crisis is looming in some of Australia?s most popular cities such as Brisbane and Sydney. This concern is of course leading to sharp increases in rental rates being charged by landlords who are well aware of how valuable a commodity they own.

While this is an unfortunate situation for those caught in the rental trap it is a perfect situation for an investor seeking immediate returns on real estate investments in Australia. Anyone who makes a real estate investment purchase in Australia with the intention to let out that property will not only make a strong income currently but they will continue to enjoy property price growth over the longer term as the market readjusts and begins to grow again in Australia in the medium term.

And finally, if you?re interested in the real estate market down under and are not an Australian citizen, overseas buyers are free to own real estate in Australia that has been granted permission for sale to foreign purchasers; and you can rest assured that the purchase process will be straightforward because it is so well regulated in Australia.

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Taking Little Steps to Make Your Property Sell Faster

Ask most coaches in professional sports what sets the best teams from the also ran?s and they will say sweating the details. The same is true for getting a fast offer on your property.

Taking Little Steps to Make Your Property Sell Faster

In many areas of the country, neighborhoods are built in collective groups. Ostensibly, this means there are other properties in your area, maybe a lot, that are very similar to yours. While you may like or dislike this fact, it does raise the issue of how do you make yours standout when trying to sell?

My friend, the key is in the details. There are a wide variety of little steps that can make your property stick out in the mind of potential buyers. Remember the key is to make your property appear better than the others, even if it is just a bit.

Closing or settlement is the time when everything comes together on the transaction. This is when final papers are signed and there is no turning back. Frankly, it can be a bit stressful and nerve wracking. If you are flexible on closing dates and such, then let buyers know in your marketing material and open houses. First time buyers may not appreciate the offer, but experience buyers will.

Buyers often wait with nervous patience for home inspections to be done. While they may love your property, they are usually wise enough to know they need to rely on a professional inspection to make sure the fundamentals are in order. One way to make your property stand out from the crowd is to get your own inspection done by a certified home inspector. You should then include this fact in any marketing materials and hand out copies of the inspection when showing the property. Doing so is a major step in building credibility and making buyers comfortable with your property. It screams that your property is in good shape and has been taken care of.

Taking little steps is the key to moving your property while others in your neighborhood sit around. If you can handle the above, do so and make sure to include the information in both your marketing material and handouts during open houses or showings.

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Taking Photos of Your Home for Listings

If you are considering selling your property, you will need photographs for your marketing efforts. If you are going to take the photographs yourself, here are some tips.

Taking Photos of Your Home for Listings

I love reading National Geographic to see the amazing photographs of far off places I will probably never visit. I consistently play the lotto, but one has to be realistic. Regardless, the photographs are works of art and I often find myself wishing I could go to the location in the photograph. This is true even though I had no knowledge of the place until I saw the photograph and probably would have blanched had anyone suggested such a trip. This is the power of a good photograph.

Photographs of properties in marketing materials should inspire the same type of response from homebuyers. Make no mistake about it, your photographs represent the first impression, known a curb appeal, the buyer will have of your property. Given this fact, it is vital that your photographs present the best aspects of your property. Simply walking out to the curb and firing off a couple snapshots is a mistake of the highest order. Don?t do it!

At this point, you should consider using a professional photographer. They understand issues such as lighting, bordering, spacing and angles. Trust me, they are worth every penny.

Assuming you are going to shoot the pictures yourself, consider the following tips:

1. Lighting is critical. First, make sure there is enough light to detail what you are shooting. On the other hand, try to avoid situations where the entire picture is to bright. Strategic shadows in a corner can add definition and the impression of uniqueness.

2. If you have a view, make sure to take a picture of it. If the view can be seen from inside the home, make sure the photograph shows as much by taking it from the interior. You want the photograph to contain some evidence that the view can be seen from inside.

3. When it comes to the front of your home, don?t take a flat picture. A flat picture is when you shoot the home dead on. Stand off to one side or the other to give it some definition.

4. On interior shoots, add props to the room such as flowers. Make sure drapes and so on are positioned in an attractive manner. Hide all cords. Really hide all pets!

5. Experiment with angles. Taking pictures of your home is not a task to be done as quickly as possible. Take as many photographs as possible and then pick out the best. This is what professional photographers do.

Taking photographs of your property is hardly a difficult task. That being said, if you put a bit of thought and effort into it, you can make your listing stand out from the others on the market.

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Steps To Consider When You Decide To Sell Your Home

Deciding to sell your home is not an easy event. Once you have made the decision, there are a few steps you need to follow to make it go smoothly.

Steps To Consider When You Decide To Sell Your Home

If you are thinking about selling your home, there are a lot of issues that come to the forefront. Once you decide questions likes whether it is a good time to sell, the amount of money you will get, where you will move and so on, there are less obvious steps you need to take.

Part of the process in determining whether to sell your home is a review of your current situation. In this case, we are talking about your home loan. You need to determine two things. First, what is the balance on the loan and will the sale price be sufficient to pay it off. The second factor is less obvious, to wit, you need to determine if there are any penalty clauses written in to your mortgage for an early sale. Some loans have draconian penalties, which will stop you in your tracks immediately.

If you are selling your home, you need to find another place to live. This sounds obvious, but many people leave the process to the last minute which adds unnecessary stress to the situation. If you intend to immediately buy another home, you need to sit down with a mortgage loan officer and get pre-approved for another purchase. Selling and buying a home at the same time can be hectic, so definitely get pre-approved to make everything go as smoothly as possible. If you intend to rent for a bit, make sure you find a place and that it has enough space for your stuff. If it does not, rent a storage facility and start moving things in now.

The third issue is timing. Specifically, you need to determine how long it takes for homes to sell in your area. You next need to determine how that time frame fits into your plan. If you need a quicker sell, your home needs to be offered at a lower price. If you can afford to wait, then you can price it a bit higher and sell on specific benefits the property has that others do not.

Selling a home is not as easy as simply deciding to do it. By following these steps, however, you should smooth out the process.

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Take Credit for Heritage Restorations

For a long time heritage properties suffered from a bum rap. Investors were reluctant to purchase a piece of the past because of the cost of dragging it into the present. Fortunately, in the last few decades, older properties have been rightfully recognized for their beauty and historical value and have become a hot commodity. Yes, there is often work to be done on heritage buildings, but there are also financial incentives for restoring these properties to their former glory. After all, restorations create employment and the finished product is culturally significant, making it a draw for tourism and improving the quality of a neighborhood over all.

In fact, property owners in Maryland can benefit from potential federal, state and local tax credits for improvements and renovations. Maryland is serious about encouraging people to restore historic homes or income-producing buildings. If you don’t live in Maryland don’t worry ? the state credits have no residency requirements, making it an equal opportunity investment opportunity. If you have a heritage property outside of Maryland you may still be eligible for the federal program. With all of these incentives, be sure to check the program requirements before starting any work.

Whether you are a home owner or a long-term lease holder of an income producing certified heritage structure, you can apply for a Federal Rehabilitation Tax Credit of up to 20 per cent of a restoration. If your property has not been certified, you can apply to have it certified or take advantage of the 10 percent credit for non-historic, non-residential buildings put in service before 1936. These credits have been used to revitalize buildings that were seriously dilapidated. They can be applied to all kinds of work on the building including, “architectural and engineering fees, site survey fees, legal expenses, development fees, and other construction-related costs”.

In a further effort to encourage folks to restore heritage properties, the Maryland Historical Trust administers the state Heritage Preservation Tax Credit program, which offers Maryland income tax credits for 20 per cent of the qualified capital costs. These credits can be used towards interior and exterior rehabilitation, certain landscaping projects, plumbing and electrical upgrades, architectural fees and more.

In addition, the Maryland Historical Trust offers low-interest rehabilitation loans to people who use the Heritage Preservation Tax Credit Program. This loan can be used to acquire, restore or rehabilitate property making it easier for you to do more with less.

Within Maryland, many counties and municipalities also offer property tax credits and/or a freeze on tax assessments (for up to ten years) to encourage people to rehabilitate historic buildings. Again, these programs apply to homes and income-producing buildings designated as historic buildings.

Although some (but not all) of these incentives require you to maintain ownership of your property for a time in order to enjoy the full tax benefits, you are significantly increasing both the appeal and the value of your home. When it does come time to sell, you will see the fruits of your labor. In the meantime you can enjoy the beauty of your heritage property, knowing that you have helped preserve a piece of history for future generations to enjoy.

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The All Important Real Esate Document

Selling or purchasing a piece of real estate, be it a house, condominium, or an apartment, is probably one of the most important financial transactions a person will conduct in his lifetime. This single purchase is bound to affect the lifestyles of several people for years to come.

Due to the long-term effect a single real estate transaction may have on the buyer and the seller, it is important that all the details pertaining to this transaction be formalized. It is not enough that the dimensions of the land, the purchase price and equipment included in the sale are listed down; the individual obligations of both the seller and the buyer should be itemized as well. All these details should be found in just one document, the Real Estate Sales Agreement.

Legally, a real estate sales agreement is a contract between both the buyer and the seller. This document stipulates all the conditions of the sale, from the technical details of the property, to the chattels that will be thrown in. The agreed upon purchase price should be stated (in words and numerical figures), as well the deposit (earnest money) given, down payment and final remittance. Exact details on how and when the monies will change hands should also be indicated in this document. The real estate sales agreement is considered valid once both parties affix their respective signatures and, should there be a need to include any changes, these should be attached to the main document, as an addendum.

Normally, real estate sales agreements are formulated by real estate agents and / or lawyers. However, a lot of home sellers and home buyers nowadays opt to compose the sales agreements on their own. There are various real estate related websites where one can view, download and even customize all kinds of forms, including the immensely important real estate sales agreement, needed to complete and legalize any real estate transaction.

Online real estate forms can be purchased and downloaded by piece (as needed) or by bulk, the option really depends on the user and payment is also done online, as these sites accept most major credit cards. Once the forms have been downloaded, the contents can be modified and edited to suit and conform to the specific requirements of the user.

In terms of content and format, all the forms found on these real estate websites, most especially the real estate sales agreement, are considered legal and are recognized by local, state and federal agencies. However, even though the developers took great pains to verify the accuracy of their forms, it is still recommended that before the final copy is signed, a rough draft be sent to a lawyer or a real estate agent for their review. Since, the real estate sales agreement is probably the most important of all real estate documents; it is of utmost importance that all the technical information stated is accurate, and that all the necessary conditions and clauses, particularly the terms of payment and possible penalties for non-payment are also clearly outlined.

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Take Advantage of the Sellers? Market

Fortunately for anyone thinking of selling their home, we are in the midst of a sellers? real estate market, which means there are more buyers than there are properties for sale. Buyers take advantage of the warm weather in spring to check listings and look for a new home. Therefore, between the sellers? market and the time of year, right now is a great time to sell your property.

Finding the best real estate agent is the first step in selling your home. You need someone who knows your neighbourhood, who can suggest ways of increasing the value of your home and who can promote your home?s location.

It is important for your real estate agent to get your property listing onto the Multiple Listing Service (MLS) as soon as possible. MLS has all listings for sale in Toronto. While it is not difficult to find a buyer in a sellers? market, timing can be crucial in finding a more motivated buyer and getting the greatest value for your real estate.

Increasingly, home buyers are using the internet to search for property listings. The MLS website is a popular place to see homes listed for sale in Toronto. However, on the MLS website, your home is listed much of the same way other listings are; there?s no way to make it stand out from the rest. Your real estate agent needs to promote your property listing outside of MLS. Advertising through other websites and in print attracts more buyers, setting up possible multiple offer situations.

First impressions make a big difference in how quickly your home will sell. Many buyers make a decision about whether or not to place an offer in mere minutes after seeing your home. To obtain the greatest value, it is important that you do everything you can to increase your home?s curb appeal. Your real estate agent will be able to assess your property and provide recommendations to make it more appealing to prospective buyers.

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