Archive for April, 2011

• Apr 29

  How Real Estate Investors Can Determine Property Value

  Knowing a home’s property value is crucial for real estate investors to make money. Without an accurate property value, a novice investor may lose money by overpaying for a property. When you’re deciding whether or not to make an investment, you’ll want to have an accurate property value close at hand.

  Before you determine the value of a property, you’ll need to know some information about it. The neighborhood your potential investment is in makes a world of difference – school districts, distance from amenities and proximity to major roads can all change the valuation of your investment. If you’re investing in residential real estate, you’ll also want to know how many bedrooms and bathrooms the property has.

  • Comparison value. The easiest way to determine the property value of an investment you’re considering is to look at the sale prices of similar assets in the area. If you’re thinking about flipping real estate, look at the sale prices of other homes in the neighborhood to figure out your potential profit. Smaller rental properties’ value can be figured out using the same method. You’ll typically want to look at properties within a one-mile radius of your potential investment.
  • Income value. If you’re a commercial real estate investor, you can figure out the property value by calculating how much income the property will generate. Using this number, you can figure out how long it’ll take before the property becomes profitable.
  • Hire a real estate appraiser. Hiring a real estate appraiser can cost money, but will give you the most accurate appraisal. Make sure you allow enough time for the appraisal – it can take days or even weeks to schedule and conduct an appraisal.
  • Check out free Internet sites. There are tons of sites online that show you a reasonably accurate property value. Of course, this can cause you to over- or under-value a property, so don’t rely on the Internet alone to help you figure out a property value.

  Real estate investors need to be able to determine property value to make sure they’re getting a good deal. Having an accurate property value can make or break your real estate deals, so make sure you have a firm handle on how much a property is worth before you complete your transactions.

  Tags: buying a home, property value
  Posted in Home Buying | No Comments »

• Apr 28

  Top 6 Questions To Ask Before Buying A Home In San Diego

  San Diego is a great town with lots of friendly people. However, if you’re thinking about buying a home in San Diego, you should ask yourself a few questions to make sure you’re ready for the big move, including:

  1.    Are you ready for the commute? Buying a home in a neighborhood with lower home prices may save you money, but you’ll need to prepare for a slightly longer commute if you’re planning to work downtown. San Diego congestion can be frustrating – the city consistently ranks among the worst in the country for traffic jams.

  2.    Which neighborhood do you want to live in? Before you make the big move, you should research different neighborhoods to decide where you want to live. In addition to thinking about home price, you should consider how close you’d like to be to the beach and other major attractions in the area, as well as local amenities.

  3.    How much are property taxes? Property taxes are around 1.25% of the purchase price of the home each year. Different areas in the city have special assessments that may cause you to pay slightly more taxes, so it’s worth asking about before you make the purchase.

  4.    When was the home built? Although most homes in San Diego are fairly new, it’s always worth making sure you know when the home was built. You may be able to avoid potential problems down the road by checking on its age. You’ll also want to check on the age of the roof and any major renovations before buying a home.

  5.    Is the home prepared for earthquakes? When you move to San Diego, you’ll want to make sure you’re prepared for earthquakes. Southern California has around 10,000 earthquakes each year, so you’ll want to make sure you – and your home – are prepared.

  6.    What does the housing market in your neighborhood look like? Houses in San Diego are known for being pricey. However, this is largely because land values are so high in the area. Before buying a home in San Diego, make sure you know what the market in your neighborhood is like, in case you decide to move down the road.

  If you want to be close to the beach and be around tons of diverse cultures, San Diego is a great city. Of course, any big decisions are worth thinking about – so ask yourself these six questions before you move to San Diego.

  Tags: buying a home, San Diego real estate
  Posted in Home Buying | No Comments »

• Apr 27

  How To Set The Price Of Your Home

  Pricing your home is tricky and can be the hardest part of selling a home. Setting a price can make the difference between selling a home quickly and having it remain on the market for months. While property value plays a large part in the price you set, there are other factors to consider, including:

  • Buyers have a lot of tools at hand. Today’s buyers don’t take the price of a home at its face value. There are tons of Internet websites that help buyers find home prices across the country – including your neighborhood. When your buyer knows the property value of the house for sale down the street, they may be less likely to come view your higher-priced home.
  • Homes that sit on the market are less attractive. If you price your home too high, you risk having it sit on the market for weeks or even months. The longer it sits, the more buyers are wary – they may assume that it’s priced too high or has something wrong with it.
  • Reducing the price may not help. A price reduction can draw some buyers in, but it may also dissuade others. A price reduction can sometimes imply that the home has flaws, which may turn some buyers away.
  • Setting the right price can draw competition. A reasonable or slightly low price will attract more buyers than a home that’s priced too high. Competition may help potential buyers to overlook flaws and act quickly to snap up the house before their competition does. In some situations, this can even lead to bidding wars.
  • The Internet helps – to a certain extent. While the Internet can provide a general valuation of your house, you should turn to experts to get a more accurate property value. Particularly if you’re selling a home without a real estate agent, you’ll want to consider using an appraiser. It can take longer and cost more, but it also helps you to get the best picture of how much your home is worth.

  Selling a home is more than just throwing open houses and signing paperwork. It’s crucial that you consider the price of your home before you do anything else. It can help you sell your home quickly, which saves you money and energy down the road.

  Tags: home selling, pricing your home, selling a home
  Posted in Home Selling | No Comments »

• Apr 26

  Can A Partner Help Your Real Estate Investing Business?

  Real estate investing can be as easy as flipping real estate and as hard as managing an entire apartment building. While you can start real estate investing on your own, having a partner brings a lot of benefits to the table, from money to connections – and more.

  Many people involved in real estate investing bring on a partner for one simple reason: money. A partner contributes money to the initial deal in exchange for equity in the property. This helps you afford a better property than you would be able to procure on your own. With a partner, you may have enough cash to be able to make the jump from flipping real estate to investing in commercial real estate or a multi-family property.

  Partners can also bring great connections into your business. Whether they know a fantastic real estate lawyer or they’ve done business with other investors who may be able to help, a partner with lots of connections can be a huge boon to your business. A well-connected partner can be your ticket to doing more deals or making them happen more smoothly.

  A business partner with more experience than you can function as a mentor or coach, helping you learn more about the business while also contributing to your deals. This can be immensely helpful – a good mentor is a must-have when you’re in the real estate business.

  You may also consider adding a partner to your business if you’re involved in flipping real estate. In this scenario, your partner may contribute cash, labor or both. Exchanging labor for equity is called “sweat equity,” and while it’s not common in many real estate investing companies, it can be a fair exchange for a flipping business.

  Of course, there are a few potential negative aspects to having a partner. The first downside you’ll face is lack of control. When you’re running a real estate investing business on your own, you make all the shots. Bringing in a partner means giving up some control over your business. If your partner is a friend, any disagreements may wind up spoiling your friendship. Always treat your partnerships as a business relationship and get a contract outlining the specifics of your agreement. It may seem silly to do this with a friend, but it’s not worth risking your money – and friendship.

  Before you bring on someone else, make sure you consider the benefits and downsides to having a partner. You may decide that it’s worth your while, or that you’d rather hold on to control. No matter which decision you choose, make sure you give it some thought beforehand – you’ll be glad you did.

  Tags: real estate investing, real estate partner
  Posted in Financing | No Comments »

• Apr 25

  Selling a Home in Spring

  Spring is “home buying season,” so if you’re selling a home, you need to be ready for an influx of potential buyers. Thousands of families across the country take to the streets each spring in search of their dream home. If you’ve been thinking about selling a home this spring, here are a few tips to help it sell quickly (and for more money):

  • Focus on landscaping. A freshly-mown green lawn and bright flowers will help make your home look appealing to potential buyers. Pink and yellow flowers are particularly appealing in early spring when people are eager to ditch the bland grays and browns of winter. If it’s not warm enough to plant flowers in the ground, consider adding a few large pots with flowers to your porch.
  • Do some spring cleaning. If you’re selling a home, chances are you’re planning on moving soon anyway. Pack up your family heirlooms and photos, and start getting the home ready to display. Polish the floors and windows to give them some sparkle, and put up a fresh coat of paint if your home needs it.
  • Hold an open house. Spring is a great season to hold an open house. The nice weather brings in more potential buyers, and the extra light in the afternoon can help your home look bright and airy.
  • Get a great real estate agent. A local real estate agent can help you sell your home quickly, particularly during the spring. They can list your home on the MLS, so more potential buyers will see it. A good real estate agent also knows all the tricks of the trade when it comes to buying and selling a home.
  • Get ready for rain. Whether you’re having an open house or you plan to give tours, make sure you’re ready for inclement weather. An umbrella stand and a small rug to wipe off shoes are small touches that your potential buyers – and your nice clean home – will appreciate.
  • Check out the neighborhood. Look around your neighborhood to determine how many other houses are for sale. Figuring out how much they’re selling for can help you determine how you should price your own home.

  Spring is a great season for selling. Because more buyers are looking for homes, your chances of finding a buyer quickly (and making more money) increase dramatically. You’re sure to sell quickly if you follow these simple tips for selling a home in the spring.

  Tags: home selling, selling a home
  Posted in Home Selling | No Comments »

• Apr 24

  When Should You Sell Your Home?

  Is there a season that’s better than the rest for selling a home? Traditional wisdom says that spring is the best time for selling a home – more buyers are on the lookout for a new home so they can move over the summer. However, spring may not be the best time for selling a home.

  Home sales pick up in January each year and peak in April. Most moves take place over the summer, so people start hunting for a home in the spring. However, since there are more people looking to buy a home, the closing process can take weeks.

  Sales stay strong throughout the summer, then drop in August – just in time for the school year to start. Although a brief resurgence usually occurs each fall, the housing market dips as winter snow starts hitting the ground.

  If you’re thinking about selling a home this spring, you may want to think about a few things before you put it on the market:

  • People are wary of a home that sits on the market. It’s to your advantage to try and move your home quickly. If it sits on the market too long, people will assume that the price is too high or that something is wrong with the house.
  • Winter can bring unexpected sales. Because so many people try to close before the New Year, listing your home in the late fall or winter may be beneficial. You’re likely to see a speedy sale if you list in the winter.
  • Consider the climate. If you live in a warmer locale, such as southern California or Florida, then seasonal rules may not apply to you. People will likely be house hunting all year, so keep your home in good condition for potential buyers.
  • Local markets may vary. In addition to the climate, your neighborhood may follow a different pattern. Perhaps the schools in your area follow a different calendar, or you’re in a hot neighborhood and people are snapping up homes. Consider the local market before deciding to sell your home.

  Overall, homes tend to sell for about 4% more during the spring than in any other season. However, an increase in the number of sellers (and buyers) may cause your home to sit on the market – or cause it to sell right away. Although “spring selling season” is a good guideline, you’ll have to take your own individual needs into consideration when determining when to sell your home.

  Tags: home selling, selling a home
  Posted in Home Selling | No Comments »

• Apr 22

  Real Estate Flipping Tips: Bedrooms 101

  The average person spends about a third of their life asleep, so when you’re flipping real estate, you should keep that in mind. Reading real estate flipping tips can help give you a good idea of what changes you can make in a bedroom to make it appealing to potential buyers. When you’re fixing up homes, make sure you follow some basic real estate flipping tips for bedrooms:

  • Keep it neutral. As we’ve mentioned before, neutral paint allows your potential buyers to showcase their own sense of style. Bedrooms in particular should remain neutral, since you’ll have no idea about the person who will be living there. Even though powder blue may be your favorite color, a little girl who loves princesses may not find it as appealing.
  • Update the lighting. One simple change that has a big impact in a bedroom is the lighting. While most real estate flipping tips will tell you to keep your home bright and airy, the bedroom may be one exception. Think about putting in a dimmer switch to make the room more romantic and soft. A ceiling fan is another welcome addition, particularly in warmer climates.
  • Consider carpeting. Even if you’ve uncovered gorgeous hardwood floors throughout the home, you may want to keep the bedrooms carpeted. It can help them look relaxing and comfortable – just what you want out of a bedroom.
  • Add small details. Small touches can make a big difference to the look of a bedroom. Next time you’re flipping real estate, consider adding crown molding or a chair rail to the bedrooms. It can make them look nicer with very little effort.
  • Doublecheck the closets. Closet space is a must in any bedroom. If the closets are small, consider adding more closet space somewhere else. If you absolutely can’t find a spot with more space, installing a few pre-made racks or shelves may help a small closet become more appealing.

  When you’re flipping real estate, it pays to put time and energy into every room in the house. Although the bedrooms may not bring in as much money as kitchens and bathrooms, they can still help sway a potential buyer. Make sure your bedrooms are top-notch and you’ll be sure to sell quickly.

  Tags: Flipping Tips, home improvement
  Posted in Home Improvement | No Comments »

• Apr 21

  6 Things To Think About When Selling A Home In San Diego

  Selling a home in San Diego can be a daunting task – from open houses to closing costs, there are a lot of things to consider. However, if you stay organized and keep a few simple tips in mind, selling a home can be exciting and even fun. If you’re considering selling in San Diego, here are a few things to keep in mind:

  1.    Get a real estate agent. Although you may want to save a few bucks by skipping out on a real estate agent, you’ll ultimately make more with an agent than without one. Real estate agents can amp up your home selling process, keeping your house from sitting on the market for months without a single offer.

  2.    Round up important dates. When was the roof last replaced? Did the basement undergo a major overhaul? These are all things you should know. You should be prepared for buyers to grill you on every aspect of the home. Making a fact sheet can help you stay organized and distribute information as it’s needed.

  3.    Consider your asking price. Determining your property value can be the hardest part of a sale. Research how much similar homes in your neighborhood are selling for, and work around that. You don’t want to ask for too much (or too little) compared to other homes in the neighborhood.

  4.    Make strategic improvements. Upgrading lighting fixtures or painting the bright blue bedroom may be just what your home needs to sell quickly. Don’t lose a potential buyer just because you have outdated track lighting in the living room.

  5.    Stage your home. Once you’ve decided to put your home on the market, you should always keep it ready to show. Get rid of family heirlooms, and always keep your home spotless. Strategically removing furniture can make your home look spacious and open.

  6.    Hold an open house. If you’re working with a real estate agent, chances are they’ll want to hold an open house. Open houses can be a great way to show your home to lots of people at once. Consider having a pre-open house just for neighbors to cut down on the amount of “looky-loos” you get on the big day.

  Selling a home doesn’t have to be an arduous task. By keeping a few simple things in mind, you can make the selling process easier and more efficient.

  

  Tags: San Diego real estate, selling a home
  Posted in Home Selling | No Comments »

• Apr 20

  How To Choose A Crew For Your Next Flip

  Choosing a crew can be one of your biggest tasks while flipping real estate. The people you work with determine how much time and money you’ll be putting into rehabbing properties. It’s worth taking some time when deciding who you’ll hire and who you want to work with. Here are a few tips to help you choose a crew next time you’re flipping real estate:

  • Do it yourself. You can do a lot of the work towards rehabbing properties on your own. From cleaning up a gross bathroom to plastering walls, many tasks can be done by yourself. Of course, you’ll have to spend more time (and put in more elbow grease) doing it yourself, but you’ll save money if you can avoid hiring somebody to do simple things for you. Plus, part of the fun of flipping real estate is getting your hands dirty.
  • “Family and friends” discount. You may be able to convince your family or friends to come help you on your next flip. They may be willing to work for less money (or even for free – you’d be amazed at how far the offer of a pizza goes), so you can save. Of course, any time you get your personal life involved, you need to be careful – a poorly-done patch isn’t worth losing a friend over.
  • Get a partner. If you have a partner investing in the flip, chances are they’re already doing work around the house. Make sure you’re both happy with the amount of work you’re putting in – if one person feels overworked while the other person doesn’t want to spend too much time in the property, you may run into issues down the road. Of course, the best part about having your partner help out with your flip is that they’re financially invested just like you, so they’re sure to do a good job.
  • Consider contractors. For the jobs you just can’t do yourself, find a decent contractor. Remember, hiring somebody just because they’re cheap may cost you money down the road, so check out their credentials before you commit. Make sure you get quotes and spend some time considering your choice before you sign any contracts. It’s also worth keeping in mind that even though you’re hiring contractors, you’ll probably still need to be on the property to answer any questions and make sure everything is going according to plan.

  If you’re interested in rehabbing properties or flipping real estate, you’ll eventually need a crew. Choosing the right people for the job can save you time and money, so make sure you pick your crew wisely.

  Tags: Flipping houses, Flipping Tips
  Posted in Home Improvement | No Comments »

• Apr 19

  Real Estate Flipping Tips: Walls 101

  Real estate flipping tips cover everything from kitchen renovations to updating lighting fixtures. Of course, if you’re rehabbing properties, one of the most important things to focus on is the walls. If you get the walls wrong, you may miss out on making a sale. Next time you’re rehabbing properties, follow these simple real estate flipping tips to make sure your walls are picture-perfect:

  • Look for obvious signs of damage. Before you get started, go through the entire house looking for signs of damage. Any large cracks in the walls should be checked to make sure they’re not a sign of structural damage. Brown stains, particularly near the ceilings or windows, could be a sign of water damage – so keep an eye out for the source. Spots of mold or mildew are particularly common in bathrooms.
  • Repair any cracks or holes. Small cracks and holes are fairly easy to fix yourself. Small nail holes and cracks can be fixed with spackle, while larger cracks may need tape and joint compound. Larger holes will typically require a piece of sheetrock and a sheetrock saw to ensure complete coverage.
  • Check the texture. Walls and ceilings with a particularly ugly texture may require some TLC. Popcorn ceilings are often hiding cracks or other damage and may need to be scraped off to uncover the ugly truth. Textured walls can be covered up by applying joint compound, then painted over.
  • Wallpaper woes? If you’re rehabbing properties and you discover truly terrible wallpaper, you have two choices: tear it down or paint over it. While tearing it down may take more time, it will ultimately result in a more appealing wall. However, some wallpaper simply refuses to come off (or is covering up dozens of layers of paper). In that case, consider painting over it.
  • Contemplate your color. While white is always a safe choice, you can feel free to expand into the entire world of neutrals. Traditional real estate flipping tips will tell you to stay light – and they’re right. Dark or overly bright paint can make your house look dull or clownish. Neither gives off the impression you’re hoping for. Sticking with neutrals will allow your potential buyers to imagine themselves living there and incorporating their own style – rather than yours.

  Walls make up a huge part of a home. Making sure they’re in good condition and appealing to buyers can go a long way in helping your flipped home sell. Next time you’re rehabbing properties, make sure you follow these real estate flipping tips for walls.

  Tags: Flipping Tips, home improvement
  Posted in Home Improvement | No Comments »