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Residential Investing with a Lease/Purchase

One of the most efficient ways to invest in residential real estate is to do a lease/purchase. The reason a lease/purchase is so effective, is because it provides a win-win situation for both the seller/landlord and the buyer/tenant. For the owner, it provides a potential buyer and a tenant that will be willing to take care of the home. For the buyer, it provides the right to purchase the home for a fixed price, and time to save money and improve their credit. Here is how it works.

The owner and the buyer enter into a contract whereby the potential buyer agrees to lease the home for a set amount of time. At the end of the lease, the buyer then has the option of buying the home for the price agreed upon in the contract. In order to secure that price, the buyer pays an option fee up front. If the buyer chooses to buy the home at the end of the lease, he can apply the option fee and any other money saved toward the down payment. If they choose not to purchase the home, the owner keeps the option fee.

For the owner, the lease/purchase offers several different ways to make money from the home:

- The goal is to buy the home for 10-20% below market value.

- The monthly rent you collect will exceed your mortgage payment.

- You can right off mortgage interest and other expenses on your taxes.

- You pay down the principle on your mortgage and build equity in the house.

- The price of the home will appreciate.

- If the potential buyer decides not to buy, you keep the option fee.

This is just a basic outline of how a lease/purchase works and the opportunities it presents. It is still a real estate investment strategy that is unknown by many and discussed by too few. For more detailed information, a recommended read is “Buy Low, Rent Smart, Sell High” by Scott Frank and Andy Heller.

To apply this investment strategy in a growing real estate market, visit http://www.buyandsellnorthtexas.com.

By: Michael Stazko

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Posted in Finance · July 16th, 2010 · Comments (0)

Residential Rental Price Indexes

What Factors may Influence the Rental Market

Like any property market the rental market prices will fluctuate depending on a number of different factors. These influences can depend on supply and demand factors, are there more properties than demand, this can have a major impact on prices. If there is more available property than the demand for rental houses then it is inevitable that the better quality property will be in demand, plus this can have a factor on the price of these properties. Also if there is less property than demand then this can force the rental prices up for the available property. Other factors can depend on interest rates and mortgage prices as to whether landlords keep their rental property or sell the property in order to cash in on higher house prices.

Moving to a New Area

If you are moving to a new area the prices can be vastly different from where you are moving from. Factors can be the area that you are moving to within the country and as discussed earlier the supply and demand of property within the area. A good way to try to gauge the prices is to use a rental price index. There are a number of different sites that can supply data for this area, one is the RRPI (Residential Rental Price Index) this uses data from letting agents throughout the UK and provides a breakdown of prices not only for individual towns but also for property types. Therefore no matter what type of property that you are interested in you can get a guideline of the price that you may expect to pay.

Take a look at the RRPI by clicking here: – Residential Rental Price Index

How Accurate are the Rental Price Indexes

Normally they are fairly accurate; there are a number of factors that need to be taken into consideration which include the number of property that make up the index, the accuracy of the data that is provided in order to calculate the index. Usually the calculation for the pricing will be the total price of all the property divided by the number of properties.

For example if there are 80 4 bedroom properties used to make up the index all advertised at

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Posted in Real Estate · June 26th, 2010 · Comments (0)

Residential Real Estate More About Personalities than Homes

Standing around at a cocktail party or the water cooler you first hear about the dynamic with the personalities of a real estate transaction than the home that was just purchased or sold. The sellers who took every light-bulb, the low-ball offer, the realty agent who took negotiations on a needless tangent that derailed the transaction, the home inspector that killed the deal and the sellers attorney whose specialty is litigation not real estate contracts.

Home buyers and sellers don’t go through the home sale or purchase process very often and either want to forget the troubles or figure that the occasional reactive roller coaster ride of buying or selling a home is the norm. Often the buyer and seller don’t realize that they can contribute to the roller coaster ride out of naivety or a lack of information. To take back the transaction process and become more proactive Mark Nash author of 1001Tips for Buying and Selling a Home offers some examples of personalities you might run into and how to manage them.

-Sellers. They have what you want, the house, but they need buyers to move on. Everything should be in writing, the contract, counteroffers and acceptance. Timelines for responses should be clear. Personal property included with the sale must be listed in detail. Possession should be clearly defined down to the minute. Keep terms and demands reasonable. Don’t create unnecessary hurdles for buyers; they can contribute to buyer’s remorse. You don’t have to like or meet the buyers. Perform the purchase contract in good faith.

-Buyers. They have what the sellers need, the money to cash out and move on. Review real estate contracts long before you write one. Understand the home purchase process before you enter into it. Don’t think you’ll get everything you want; this is not an adversarial business transaction. Plan your strategy beforehand and during negotiations what you really want for price, closing date and contingencies; once you’ve agreed to terms in writing, it becomes difficult to change them. Don’t waive rights that are boilerplate in a contract such as an attorney approval period, home inspection or the sale of your current home, without speaking to an attorney. Keep emotions in check.

-Real estate agents. Take the time to find a good one before you start the process to buy or sell a home. Ask friends, family and business associates for agent referrals. Listen carefully to what you hear about their agent experiences. The agent you retain should be a full-time, experienced (at least 3 years in the business) and produces a minimum sales volume for the market in the mid-range. Stay away from friends or family as your agent, I have seen too many agents who manipulate familiar relationships. Ask to see lists of closed buyer and sellers from the last 2 years.

-Attorneys. You need one to purchase or sell a home despite the contrary. Search for an experienced legal advisor who specializes in residential real estate law. Your uncle or a friend of a friend who is a lawyer that has a focus in corporate law, might derail a transaction because they have a propensity to litigate and not negotiate.

-Home Inspectors. Most states now require home inspectors to be certified or licensed which is good for consumers. Utilize a professional inspector that has been recommended to you by someone who has used them in the last six months. Avoid hiring an inspector your real estate agent uses, they might be a bit too cozy for your unbiased needs. Look for an inspector who looks at the big picture, every home, new or old, has some minor repair issues. You want to investigate the structural integrity and discover any material defects in a home. The best inspectors don’t give advice on negotiating the purchase price based on inspector results or solicit buyers for the work to repair inspection deficiencies.

-Mortgage Loan Consultants. Don’t be lured by low teaser rates on mortgages, often their are hefty fees later to close the loan. Look for a major mortgage company that has competitive rates, responsive and organized loan consultants and require your consultant to attend the closing, I’ve seen more mortgage melt-downs at closing than I care to remember.

By: Mark Nash

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Posted in Real Estate · May 18th, 2010 · Comments (0)

Helping Tips For a Successful Florida Residential Real Estate Acquisition

Florida is considered as a prime location for home acquisition in the region. The tropical climate all year round is perfect for various activities that those in the area might find to their liking. If you want to make sure that you get the perfect home, all you need to do is to follow these helpful tips to get you started on your acquisition.

Tip # 1: Plan In Advance

We can never deny the fact that Florida offers prime properties in assorted locations. From Miami Beach to Sarasota, the options are practically limitless if you don’t know what you’re looking for. Such residential properties in the region include single-family homes, apartments, condos, bachelor’s pads, and so on.

For starters, you need to determine what type of residential unit would be perfect for your needs. Check out the different residential properties in various locations by searching them out using the Internet. Consider the architectural design, home feature, built-in amenities, landscape, and the facilities in the surrounding areas that you might possible need if you plan to settle down in the region.

While you’re at it, you might want to settle your finances first, since the prime residential properties in Florida can be quite expensive. The best choice in Florida home acquisition is through a mortgage loan. Look for a financial lender that can offer you affordable interest rates and payments terms that won’t strain your budget while purchasing a residential property for your very own.

Tip # 2: Consult A Real Estate Agent

You can hire a real estate agent to look for the perfect home for you if you want to avoid looking for them on your own. These real estate experts are well connected with real estate firms and developers in Florida, and can look for these properties in a shorter period of time.

Provide them with your home specification, budget, and preferred location so that they can narrow down their search. When they have all the properties at hand, they will be showing them to you one-by-one and will be offering you some advices on how to acquire them on your own.

If you let them take care of the entire deal, they will prepare all the necessary requirements, as well as meeting with the home seller with your best interest at heart. Considering that real estate agents are familiar with legal agencies and real estate bureaus, they can expedite the legal process in home acquisition in record breaking time.

With careful planning and a little help from real estate agents, you can easily pick out the perfect family home that will suit your needs — less effort.

http://commercial-realestate-florida.xon.us — Florida Residential Real Estate

By: Vanessa A. Doctor

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Posted in Real Estate · May 15th, 2010 · Comments (0)

2007 Residential Real Estate Forecast

In many ways 2006 was the non-year for real estate. The National Association of Realtors(R) reported that sales will be down in 2006 about 9 percent from 2005, a record setting year.Many markets waited for spring market which was disappointing. Markets then believed buyers would re-group in summer,and buyers were a no-show. Fall and last market hopes were dashed when fall came and went, with plenty of traffic at open houses, but few contracts.

Pent-up demand from a lackluster 2006 should drive buyers back to market. But, these savvy buyers will be on the lookout for realistic prices and seller give-backs. Most buyers will tell you point-blank that their income gains in the last five years have not matched rises in home home prices. Real estate markets won’t bounce back until home sellers realize as prices go up, the pool of buyers shrinks proportionately. Buyers with a home to sell will include a home-sale contingency, so sellers should be prepared to accept one.

Inventory levels will remain in the six to seven moth range. Listing leftover’s from 2006, will roll into 2007. The leftovers are either un-realistic sellers whose pricing is from the “froth years” or their homes haven’t been updated to keep up with the stiff competition and time-starved buyers.

Mortgage rates will remain in the 5.5% to 7% range. Historically low, but low rates by themselves haven’t motivated buyers to write real estate contracts in 2006.

Foreclosures will rise. Risky loans such as Interest-Only, Option ARM’s and 100% financing will tap out buyers whose used these “appreciation-oriented” mortgages.

Prices will drop 4-10% before leveling off in the majority of non-seller’s markets. Homes that are priced right and are in good condition which offer features and finishes that buyers demand, will sell close to list price in moderate market times. Flat or negative appreciation.

Florida, Arizona, California and Washington D.C., will have unstable markets. Until sellers get a reality-oriented wake-up call markets in these locales will sputter and hiccup.

Ten states posted solid sales gains in the second quarter of 2006 versus 2005. Reported the National Association of Realtors(R). The gains ranged from an impressive 48% in Alaska to a low of 5.3 percent in Georgia. The other eight states included Arkansas, Texas, North and South Carolina, Vermont, Tennessee, New Mexico, and Wyoming.

Residential real estate will return to being viewed as shelter and housing and trend away from being viewed as a speculative investment.

What about 2008? Stable, pre-frenzy market with appreciation at 1% annually.

By: Mark Nash

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Posted in Real Estate · May 12th, 2010 · Comments (0)

Great Tips to Help You Sell Residential Real Estate As Fast As Possible

If you are selling residential real estate, no doubt you want to sell it fast and keep prices competitive. People have pretty high expectations out of properties today and they’ll look for a better deal if they can’t get it from you. If you want to sell off your residential property as quickly as possible and you still want to make sure you make some money on your home, the following are some tips you need to use.

Tip #1 – People Pay Less the Longer Your Home Sits

Have you ever seen homes that have prices that have been slashed a huge amount? More than likely this has occurred because the home has been on the market for a long time without any potential buyers. While some of the reasons for your home sitting without selling may be a reasonable one, most people will think that the home has a problem or is a bad deal. Homeowners that are stubborn really pay, so you need to work on selling as fast as possible for the best price on your piece of real estate.

Tip #2 – Use a Real estate Agent

There is a lot of real estate that is affordable today, and there are more homes out there than buyers. This means you need to make sure your home really stands out and you can do this with a good advertising campaign. However, you’ll need someone that knows how to effective market and advertise a home, which is where a good real estate agent comes into play. Use a real estate agent that will come up with a good marketing campaign to help make sure your home sells quickly.

Tip #3 – Expect to Get Less than You Ask

You need to expect to get less than you ask when you are trying to sell residential real estate. No longer are you going to get people trying to outbid others for your home. Today you can expect to have quite a bit of haggling and you’ll need to compromise if you are going to sell. Having a real estate agent is important because they can help you to get through the deal to a price that is reasonable. So, when you set the price on the residential property that you are selling, just expect to get less than you ask for. It is important that you allow a professional to do the negotiating for you to get the best price.

Tip #4 – Ensure a Professional Reviews the Papers

Before you sell your piece of residential real estate, even if you’re selling it without an agent, it is important to have a professional take a look at the paperwork. The contract should be looked over carefully by someone that knows what they are dealing, since a typo or a small mistake can end up costing you a lot of money or a lawsuit.

Tip #5 – Research the Market

It’s important that you research the market in the area before you even try to sell your home. Sure, you may like those pink counters in the kitchen, but it may turn buyers off and make your home take a long time to sell. You want to ensure that your home appeals to many buyers so that you can sell as quickly as possible. Look at other homes and popular properties to make sure you do the right things to your home to make sure that your piece of residential real estate sells as soon as possible.

By: Dennis Frank

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Posted in Real Estate · April 26th, 2010 · Comments (0)

Common Mistakes When Selling Residential Real Estate

Homeowners rarely consider the time, effort, and stress involved with selling their homes. Many are unprepared for the impromptu walk-throughs, late phone calls, and having to carry multiple mortgages while waiting – desperately – for serious buyers to emerge. This causes a lot of sellers to make mistakes. Often, these mistakes can end up costing them thousands of dollars.

Below, we’ll take a detailed look at several of the most common mistakes homeowners make when listing and selling their homes. We’ll explore the asking price, presentation, promotional savvy (or, lack thereof), and the dangers of hiring an unqualified agent. If you avoid the following blunders, your experience will be far less problematic.

Choosing The Wrong Asking Price

This is the most expensive mistake sellers make. On the one hand, homeowners will often become excited by the prospect of a large cash infusion and price their homes too high. This happens when the owner misjudges the house’s value. He or she lists it at too high a price and becomes discouraged when it sits on the market.

On the other hand, many sellers make the opposite blunder: they list their homes at too low a price. They may not realize the bargain they’re listing on the market. If someone buys, the seller might unwittingly leave thousands of dollars in profit on the table.

Avoid becoming emotionally invested in the value of your home. The person who ultimately determines what your property is worth is the buyer. Appraisals help, but only serve as a guideline.

Neglecting The Presentation

First impressions are lasting. Unfortunately, many people list their homes for sale without considering the impression their property’s appearance will have on potential buyers. Lawns become overgrown; dirty dishes accumulate in the sink; beds are left unmade; stains and odors persist throughout the house. Each of these things limit the listed home’s appeal. If a buyer makes an offer, it will likely be lower than would be the case were the house completely clean.

Related to this is an unwillingness on the part of many homeowners to make small repairs prior to listing their homes. A broken rain gutter, dilapidated door, or torn screen will cause many buyers to wonder whether any other signs of disrepair are hidden from them. Presentation is critical to attract a quick sale.

Poorly Executed Promotion

This is a shared mistake between the homeowner and the agent. Houses are often listed with unattractive pictures, or too few. Photographs of the interior, exterior, and front of the house are essential. They give prospective buyers a good idea regarding whether a given property suits their preferences. If a listing is lacking in photos, many people will simply keep looking rather than contacting the seller.

Also, sellers should consider organizing open houses and agent tours. Paying for spots in local newspapers can also generate interest. What often happens is that a house is listed, but not promoted well. As a result, few serious buyers call which limits the selling price.

Hiring An Unqualified Real Estate Agent

Not all real estate agents are experienced. Some have “normal” 9-to-5 jobs and show homes for sale on the weekends. Others sell real estate as their primary job, yet lack the skills to do it well (or have the willingness to learn). This creates a problem for the homeowner.

An experienced agent should be knowledgeable about the seller’s neighborhood, overall market conditions, and the paperwork needed to support a smooth transaction. They should also be able to negotiate the asking price and be available to answer questions. Many sellers hire agents who are unqualified in these areas. As a result, they’re left without proper representation.

When people list their homes, they often make mistakes that delay the sale and fail to yield an attractive price. With a little planning and attention to detail, homeowners can sell their properties while avoiding the headaches described above.

By: Lawrence Reaves

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Posted in Real Estate · April 22nd, 2010 · Comments (0)

Real Estate Agent – A Successful Working Relationship With a Residential Realtor

A real estate agent is the person you hire to help you buy or sell your home. Beyond that simple statement of information, many people do not know what working with an broker means and what it entails. Here is a detailed list of how to successfully work with a residential realtor.

Understand the Legal Restrictions

Real estate brokers are bound to strict anti-discrimination rules by the Fair Housing Act. This means that an agent cannot use or provide information about race, color, religion, national origin, gender, handicaps, or familial status of owners or neighbors of a property they are selling.

So do not ask them to find you a home next to a particular church or ask them about the racial makeup of a certain neighborhood. That kind of information is considered discriminatory and it is illegal for a broker to help you select a home based on any of the mentioned factors.

Realize that Agents Are Not Free

Most residential real estate agents work on commission. That means they are not paid by the hour or by the visit for their time with you. They get paid a percentage of the home sale when the deal closes. So to work most successfully together, you should develop a relationship of trust with your realtor and not be overbearing in your requests.

Common Courtesy Goes A Long Way

Just as you expect your agent to be considerate of your time, you should pay your realtor the same respect by being punctual to appointments and let them know as soon as possible if you need to cancel a showing. And a quick call is always appreciated if you know you are going to be late for an appointment.

Talk Openly About Your Expectations

Realtors are used to working with all sorts of people and personality types on residential real estate deals. That means that they are usually very accommodating, but they need to know what your expectations and preferences are. You need to tell him the best way to communicate with you and what the best times are to contact you.

You should also make it clear whether you want to simply meet your broker at all showings or have them pick you up and drive you there. You should feel comfortable enough talking about anything you are not happy with and finding reasonable solutions.

Let Your Agent Fully Represent You

There is a whole system of protocol in the residential real estate business. This typically includes bringing your agent with you to open houses. Going alone is considered a sign that you are not a serious contender for the sale. If you cannot bring your realtor to a particular open house, at least present their card to the host to show that you are represented and have taken the proper steps to start the home buying process.

Under no circumstances should you start talking figures and prices with the hosting agent; that is a broker’s job and your questions will probably not be well received from the hosting agent and your agent will likely be miffed that you didn’t let her handle that arena.

The main key to a successful relationship with your agent is communication. Open communication will help you understand the bounds of the agent’s job and help your realtor understand your real estate desires.

By: Andrew Stratton

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Posted in Real Estate · April 9th, 2010 · Comments (0)

Internet Battleground for Future of Residential Real Estate

Real estate agents are gearing up to face the biggest shift in their industry since it’s beginning. No longer the first in the path of homebuyers and sellers, agents have gone from top feeders to the bottom feeders with real estate consumers in just a few years.

I started in the real estate business when agents were top feeders and the keepers of the information. Multiple Listing Services

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Posted in Real Estate · March 30th, 2010 · Comments (0)

A Simple Guide to Florida Residential Real Estate For an Easy Acquisition

Florida hosts thousands of residential real estate properties that offer a lot of advantages to those who wants to grab the opportunity to buy one. As the number of people who visits the region increases, so does the number of home acquisition in the area — since many of these individuals want to settle down and enjoy the beauty, economy, as well as the lifestyle that is so common in many cities around Florida.

If you are planning to move your family into Florida, then you better start planning for a home acquisition that will serve as your foundation when you settle down in the area. In fact, this should be your prime concern if you want to avoid any troubles later on when you set foot on Florida soil.

Pick The Best Location For A Family Home

The first step for a home acquisition project in Florida real estate is to check out different locations that will suit your preference and convenience. If you are moving into the area to address a job opportunity or to set up a business, then you might already have a location in mind for your home acquisition.

If you don’t have one, then you better look for one in Florida that will fit perfectly with you and your family’s needs. First, assess each location and the real estate properties offered in it. You might want to compare prices while you’re at it.

Also, you need to check the facilities available in the surrounding area that you might need during your stay — research on the recreational and commercial facilities in the location of your choice, government offices, hospitals, schools, shopping malls, and so on. Pick the ones that offer the most convenience for you and your family.

Consult A Real Estate Agent To Help You Out

Consulting a real estate agent to help you on your Florida real estate acquisition is the perfect idea if you want to cut down the effort in looking for the perfect home. These individuals have access to home listing from different real estate firms in the area. They can find one for you in record breaking time if you provide them with your home specification and budget. They can also help you in negotiating with the seller, as well as processing all the necessary requirements to speed up the acquisition process.

http://commercial-realestate-florida.xon.us — Florida Real Estate

By: Vanessa A. Doctor

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Posted in Real Estate · March 26th, 2010 · Comments (0)

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