Archive for July, 2009
What is an REO Bank Department?
If you’re looking to expand your real estate career and become an REO agent, then you already know how important it is to find the REO bank departments and market yourself to the personnel inside those companies. However, if you’re like most agents you may think an introductory email and a registration on the banks website is all it takes. Wrong!
If you want to truly become an REO agent, you need to do more than the typical agent is doing. Sure you need a good REO bank list, but it’s what you do with that list that will make all the difference in the world.
First: Know Your Competition
As a real estate agent, you know that this economy and its effect on the housing market has created a lot of out of work agents. Some of those agents think that if they become an REO agent all of their problems will disappear. Because of this misconception, you are going to be competing against many agents who have bought a list of REO bank departments. The good news is, those agents will contact the bank one or two times and give up.
Here’s how a typical agent tries to list foreclosures for banks:
They buy an REO bank department list They send an email to all of the contacts on the list and let them know they’re available to list REO’s The register on the banks’ websites They wait They wait some more
After waiting for REO listings, these agents usually give up and try another tactic to drum up real estate business.
Second: Out Market Your Competition
If you’ve been a real estate agent for any length of time, then you know that you need to constantly market to your past clients, current clients and potential clients. You would never dream of sending your marketing list one email and then waiting for them to call you! You need to take that same approach as you strive to become an REO agent.
Treat the bank employees and asset managers like you would any potential lead:
Send them a hand written note thanking them for allowing you to register on their website Send them your promotional material. (A pen, calendar, etc). Make sure it has your name, your area, and the fact that you list REO properties. Send them a monthly newsletter. Email works well, but a tangible mailer works better. Send them a $5 coffee card as a thank you when they assign you a BPO (careful, some organizations prohibit gifts)
Residential apartment living is a common form of home ownership for thousands of people around the world including New Zealand’s largest city, Auckland.
If you are looking at purchasing an inner city apartment in Auckland New Zealand, whether as an investment property in Parnell (for example) or, as your next home in the CBD, you will find the following buying tips helpful.
Knowing What You Need
Although it seems obvious, the type of apartment you buy should reflect the lifestyle you are planning for the future. Think about such aspects as household numbers, proximity to local amenities, including your place of work, the sorts of work and leisure activities you enjoy and the length of time you expect to live in the home.
Knowing What You Can Afford
Speak with your bank manager or financial services consultant to pre-determine your budget level and perhaps obtain pre-approval from the lending institution prior to going out ‘to buy’. This puts you in a position where you are able to make ‘a cash offer’ on an apartment that meets your requirements.
Knowing What is Available
Newspapers, real estate publications, real estate offices and the online listings are all good places to begin your search on the latest listings to the market. A few real estate websites allow you to receive automatic notification of properties that may suit your needs – thus ensuring you don’t miss any potential opportunities.
Knowing Local Values
Research sales in the Auckland City, New Zealand areas you are looking and maybe attend a few listed auctions of properties to help establish current values. Attend as many open homes as possible – a fantastic way to identify the various residential apartments available, and thus helping towards narrowing your search.
You’ve Found Your Perfect Apartment
When you find a property that suits your requirements, ask the agent for sales statistics of similar properties in the area. If the property is to be auctioned, obtain a copy of the auction agreement and send it on to your solicitor. Remember, when purchasing at auction, you must pay a 10% deposit on the fall of the hammer. It is also a very good idea to arrange a building inspection prior to purchase and also obtain a copy of the LIM report. We also recommend you organise an independent valuation.
Concluding a Sale
Once your offer has been written and negotiations are finalised you will sign a Sale & Purchase Agreement and pay a deposit; usually 10% of the sale price. Copies of the contract will be sent to your solicitor and yourself.
Property Settlement Day
This is when ownership of the property is transferred to you and financial transactions are completed. Prior to settlement day you may request a pre-settlement inspection of the property to ensure nothing has changed in its status since purchase and agreed chattels are in place. Once all settlement procedures have been finalised the keys will be released to you.
In conclusion, choosing the right residential apartment in Auckland City, New Zealand comes down to knowing what you need; what you can afford and knowing exactly what’s available at the time you are ready to buy.
By: Phil Horrobin
Browse the listing inventory of any real estate office and you should expect to see some investment properties listed for sale by a residential real estate agent. Mostly duplexes or triplexes, but occasionally residential real estate agents also sell larger apartment complexes.
Having been a real estate professional myself for the past thirty years, I applaud any colleague with enough grit to sell real estate, let alone income property. But that’s where my admiration ends, and my complaint begins.
You might call it professional pride, even intolerance. Yet it irks me when real estate professionals list an income-producing property for sale and then do not include basic elements about the property others as myself can use to sell that property.
In the MLS listing, for instance, residential agents typically do not include essential income and expense data about the property. This is frustrating because it necessitates a call to that agent, which easily could be avoided if the agent merely took a few minutes to present the income property properly.
Price Number of Units Unit Mix – Are the units two bedroom one bath, three bedroom two bath, and so on? How many units are there for each configuration? Gross Scheduled Income – What is the annual gross rental income? The potential annual income if all units were occupied and collecting realistic (current, not pie-in-the-sky) rents. Operating Expenses – The dollar amount spent annually to keep the property running. Property tax, liability insurance, utilities, trash collection, maintenance and repairs, and so on. Depending on the number of units, this should be somewhere between 25-50% of the gross operating income. With duplexes, for instance, tenants usually pay for trash collection, and utilities normally associated with laundry facilities in larger complexes, or landscaping costs do not exist. Rent Per Unit – Show the current rent for each unit. In cases of larger apartment complexes, show a rent-range by unit configuration. Capitalization Rate This is optional in the MLS listing, but it can help generate interest. Simply divide the property’s net operating income by the asking price.
Moreover, prepare a marketing package you can send to those inquiring about your income property listing. Whereas, the MLS is meant to broadcast the listing and peak interest in the property, the marketing package fills in the blanks. In addition to the obvious like price and address, a marketing should also include
An Income and Expense Statement Property Description Property Features Current Loan Information Proposed Loan Information – Show the annual debt service and cash flow before tax (net operating income less mortgage payment) Rates of Return such as capitalization rate, gross rent multiplier, cash on cash return. The more eloquent the better, so you might also consider adding calculations for price per unit, price per square foot, expense ratio, break-even ratio, and debt coverage ratio. Property Picture
Remember, your goal is to sell your income property listing. Why not present it in a way that would appease investment property specialists, perhaps get them interested, and at the same time make you look more professional. Plus, it’s a great way to show your seller how proactive you are about rental property marketing.
You can preview a marketing package at proapod.com. Simply follow Reports.
By: James Kobzeff
Residential steel buildings are becoming more popular in the construction industry. Different parts of a residential building are manufactured in a factory. Steel is the raw material used to make the skeleton of the building. Advantages of residential steel buildings are low building cost, durability and less time consumption.
You can suggest the basic design of the home and select the type of roof, interior wall, and number of doors and windows. Any other individual enrichment of the building can also be suggested at the time of designing. After accepting the plans, different accessories such as beams, posts, girders, roof panels and nuts and bolts are produced at the factory. The foundation of residential steel buildings is made of concrete. The factory made parts are transported to the proposed site and bolted together to make an attractive steel house. Adequate insulation, ventilation, wiring, interior and exterior finishing and plumbing are also done for residential steel buildings. The exterior of these buildings can be made more attractive by brick, stucco or wood.
Drainage requirements and local zoning laws are to be satisfied for the legal approvement of each project. A rigid frame style is preferred for residential steel buildings. Steel framework with flat steel panels for roofs and walls is used in this style. Doors and windows can be placed in any wall and the size of the building may also be expanded if needed. Other optional accessories in residential steel buildings are gutters and downspouts to clear off water, double pane glass and insulated doors.
The cost of a typical residential steel building ranges from $16 to $20 per sq ft. Building materials, transportation, foundation and construction are included in this price. Exterior brick finishing or complex designing can be priced around $40 per sq ft. You can buy residential steel buildings from general contractors and brokers who are linked with different factories. Manufacturers also sell component parts directly to their customers. It is always desirable to buy genuine components from a renowned dealer for perfect construction and service. Warranty for almost thirty years is also given for residential steel buildings.
By: Peter Emerson
What is an inventory?
The inventory is a catalogue of the property and its’ contents. A schedule of condition is a record of condition. Most commonly the two are combined into one report and are called either the inventory or schedule of condition.
The inventory/schedule of condition has several functions:
* it is a catalogue of the property being let
* it records the condition of the property and any items that are included in the tenancy
* it forms part of the legally binding contract that is set out in the tenancy agreement between the tenant and the landlord.
Why it’s important to prepare one?
For years when it comes to inventories, landlords have got away with scribbling a few notes on a bit of paper about the condition of their property. The general principle being that accurate records were not needed. This was because as a landlord you were both ‘judge and jury’ and if and what part of the deposit was withheld to cover the costs of repair and cleaning. This is not to say that tenants had no remedies if they felt aggrieved with the decision. Under the pre April 6 2007 system they were able to take the landlord to court if they thought that they were unreasonably withholding their deposit. The judge would then decide on the merits of their claim. However, the ‘hassle’ and inconvenience to the tenant of carrying this through meant that in most cases tenants do not take matters any further, especially where the sums involved were small.
Things will never be the same again
The Tenancy Deposit Scheme (TDS) will change this cosy amateur approach in several important ways:
1. No longer will the landlord have the benefit of controlling the monies from the outset
2. Because of point 1 many tenants are likely to feel emboldened to take on the landlord if they think they even have a chance of winning the argument. There is likely to be a large jump in the number of cases where the tenant disputes the withholding of all or part of their deposit
3. The inventory will become far more important for many landlords as it is the key document in proving the condition of the property before a tenant moved in
4. The way of assessing disputes will now change. Rather than matters being resolved through the courts, most will be decided by independent arbitrators. Arbitration is generally seen as less adversarial and fixed by legal procedure than the courts and this is likely to result in outcomes that differ from those that occur currently.
Message to landlords
The message to landlords is clear. No longer will they be ‘judge and jury’. The result is that the number of contested deposits is likely to increase dramatically. Therefore it is more important than ever to have a carefully prepared inventory at ‘check in’ and that at ‘check out’ an accurate record of the properties condition is made. Otherwise they could end up significantly out of pocket. Landlords should look out for the TDS compliant inventory coming soon to the registered users of http://www.propertyhawk.co.uk
Landlords however do have an option not to prepare the inventory themselves.
There are two ways of avoiding the preparation process.
Firstly, if the property is fully managed by an agent then inventory taking and the subsequent ‘check out’ should be carried out by them as one of their management duties. This obviously will save you time. It will also mean that if there are problems with the condition or cleanliness of the property; the agent should rectify these and use the deposit monies to cover this expense before handing the balance back to the tenant.
The second way to get around having to prepare an inventory is to employ a specialist Inventory Clerk. These individuals carry out the whole process for you; they can also do the mid tenancy inspection as well as the final ‘check out’. The downside to this service is that it is not cheap. The costs of a check in and check out run to about
