Saturday, August 31, 2013

Title Insurance in Brazil - A Must For All Real Estate and Land Investors

Despite detailed checks undertaken by the large majority of legal professionals in Brazil - occasions do happen where buyers may end up liable for previous issues with the property or land. Examples include errors committed by clerks at the Cartorio de Registro de Imoveis, forgery, survey omissions, fraud, title flaws, hidden / undisclosed liens and encumbrances.

The risk is also magnified with cross-border transactions as foreigners are less likely to be familiar with local laws and customs and unfortunately are often seen as easy victims by unscrupulous sellers. Added to this is the fact that both Brazilian buyers and lenders rely on an opinion letter from the lawyer with regards to the security of the asset and there are occasions where issues with the title only appear post completion.

*** WHY IT IS HIGHLY RECOMMENDED TO TO TAKE TITLE INSURANCE WHEN BUYING REAL ESTATE OR LAND IN BRAZIL - SOME EXAMPLES OF INVESTMENTS GONE WRONG ***

The worst case scenario is for investors to face a complete loss of their property to a third party who has a superior claim. Although the Brazilian economy has made incredible strides over the past few years, the legal and land registration systems have lagged behind and continue to create uncertainty for investors. This is particularly true in less developed regions of the country, such as the Amazon and the Northeast, where many foreign investors currently focusing. For example, over 500 European investors lost their investment capital in a luxury resort near Natal. The developers had plans for 30,000 homes, a marina, golf course, sports centre, spa, heliport, shopping centre and a plastic surgery clinic - all on an idyllic beach and around a lagoon. However, nothing was ever built and none of the investors' funds ever reached the project (the developer was subsequently jailed and many complex lawsuits have yet to reach court).

In rural areas, land grabbers have an 'investment' strategy called grilagem, from the Portuguese word for 'cricket'. People have been known to falsify a deed and then store it in a box full of crickets to make the paper seem older and authentic. In addition to fraud, title issues can arise when mistakes are made in transferring property. For example, an American investor in the North East of Brazil lost a significant amount of cash due to the discovery illegitimate children of the deceased seller claiming possession of the land and property. There have also been occasions where buyers have become liable for post completion environmental violations. In less developed regions, the boundaries between properties can be based on physical objects that can move or disappear. Squatters such as the Landless Workers Movement (Movimento dos Trabalhadores Rurais Sem Terra, MST) could obtain possession rights over land even if they do not appear in any registry.

*** ENSURING YOUR INTEREST IN BRAZILIAN PROPERTY AND LAND IS PROTECTED ***

Although a Brazilian lawyer or cartorio could theoretically be liable for a mistake, investors that have chosen to take legal action against them have been faced with a lengthy and costly process (for which the outcome has usually been unfavourable). The lawyer will identify such risks when researching the property's title and ownership but it is ultimately down to the investor to decide whether or not to accept the risks of unforeseen circumstances to avoid the possibility of substantial loss or damages. An investor would also need to prove negligence in order to win a lawsuit, which is no easy matter for a foreigner up against well-connected local lawyers. Even if the investor wins the lawsuit, the Brazilian courts can easily delay the date of judgment for decades.

*** IN CONCLUSION... ***

It is generally recommended, therefore, to obtain title insurance as a means to protect your legal risks and ensure a clean title (it can be obtained relatively cheaply). You will find that most policies are fully underwritten to protect against any losses as well as the cost of litigation to defend against title claims; defects; encumbrances and compliance problems (such as zoning, codes and permits). Such policies also have the added benefit of simplifying the legal requirements and due diligence processes undertaken by lawyers, lenders and credit rating agencies.

Make sure that you are obtaining the policy from a reputable company and you read through all terms and conditions prior to signing. Note that there are also several cross-border title policies which are designed to be used by foreign investors. Some Brazilian real estate and land investors also choose to send the policy to a separate lawyer for added security.

Thursday, August 29, 2013

Ceara, Brazil For Real Estate and Land Investors

Situated in the north east of Brazil; as well as being well known for its extensive coastlines (extending for 356 miles), mountains and valleys; Ceara state has been an area of strong economic growth - particularly around it's capital, Forteleza (where an increasing amount of European and American investors own property and land). The region is bordered to the east by Rio Grande do Norte and Paraiba states; to the south by Pernambuco state and to the west by Piaui.

Early Portuguese colonisation occurred in 1604 and, despite two unsuccessful invasions by the Netherlands, was formerly inaugurated as a state in 1799 (previously being a dependent of Pernambuco). The state was vehemently involved in the fight for Brazilian independence in the 19th century and it was the one of the first regions to abolish slavery. It was the reign of Dom Pedro II that significant advances were made in the states infrastructural development - including the Baturité train line from Fortaleza to Senador Pompeu and the Sobral line from the port of Camocim to Ipu - as well as basic sanitation and gas supplies.

The rivers of the area are relatively small compared to other states - with the largest being the Jaguaribe that runs through the state in a north eastern direction. For this reason (combined with a longer dry season), the soils are also not as fertile as compared to other parts of Brazil - with the exceptions of municipalities located in the southern regions such as Salitre, Araripe, Santa do Cariri, Crato and Nova Olinda. However, due to an historical track record of droughts, the dams that have been constructed througout the region (including the Castanhão and the Orós) have enabled Ceara to optimise its agricultural growth capabilities. Today the region is a strong producer of cashews, rubber, carnahuba wax, caju wine, cotton, coffee, mandioca, handicrafts and tropical fruits as well having rapidly growing cattle raising and oil industries.

Tourism clearly also plays an important part of the areas economy, with over half a million people visiting annually - a charateristic that continues to rise due to infrastructural improvements to support the rising numbers (Fortaleza was selected as one of the cities to host matches of the 2014 World Cup which looks set to further boost visitor levels). The states eco-tourism industry is also developing - particularly amongst the rainforests and waterfalls located in Araripe, Ibiapaba, Meruoca and Guaramiranga. Other prime tourist visiting areas include the Canoa Quebrada, the Morro Branco, the Praia Do Futuro and Jeriocoacoare as well as its secluded beaches and wide open spaces throughout, popular for adventure sports enthusiasts.

The region is home to several higher education establishments including the Federal University of Ceara (Universidade Federal do Ceara, UFC); the State University of Ceara (Universidade Estadual do Ceara, UECE); the University of Fortaleza (Universidade de Fortaleza, UNIFOR); the University of Acaraú Valley (Universidade do Vale do Acaraú, UVA); and the Regional University of Cariri (Universidade Regional do Cariri, URCA). Health services are above average, particularly close to Fortaleza city which has some nationally reputable hospitals.

Wednesday, August 28, 2013

Speculation in Real Estate and Its Negative Aspects

Speculation (or speculative investment) is an investment made with expectations of considerable appreciation in the prices of some asset (e.g. real estate property, stocks, etc). Speculative investment is a norm in booming real estate markets, though we can't really differentiate between a speculative investment and a standard investment, as both of them looks quite similar on paper. It is actually the risk level and more importantly the investor's thought pattern, which helps us in differentiating between both of them. Speculations are more like a gamble in which investor's intuition plays a significant role.

Real Estate speculation can be a result of rumors, guesswork, or just the gut feeling of investors ... when they sense some abnormal hikes in prices or demand in near future, they'll buy and try to take advantage of this anticipated appreciation in prices by reserving some homes, offices or land to turn a profit in future. The most recent example of this speculative investment was witnessed in Dubai real estate market, where the huge difference in demand and supply provoked speculative investments, which in turn raised the property prices quite abnormally.

Advantages and Disadvantages:
Speculations are not based on sound analysis; therefore the investment decision that is based on mere assumptions can turn out to be rather destructive, both for investors and also for the overall economy. However, speculation also contributes into the economy in a positive way. For example, speculators absorb the risk and supply the market with much needed capital; these investors gamble with their money and inject liquidity into the financial market, whereas the more watchful investors are holding their money. The biggest criticism made on speculative investment is that these investors add no value to the market or the product itself. These investments are merely buying and flipping, just for the sake of making quick profits, giving an abnormal boost to property prices that may cause a "real estate bubble", inevitably followed by a crash.

As a real estate investor, you will be tempted by many speculative investment opportunities. However, you need to play it safe when putting your money on some property, located at an undeveloped area or land. Speculative investment made in haste is dicey. Remember, if it goes wrong, you'll be losing a considerable amount. Therefore, you need to back your guesswork by doing some research and at least basic analysis. Another thing to remember, speculative investments in real estate markets are best in the earliest stages of real estate boom, as the market is less likely to crash at this stage.

Monday, August 26, 2013

Real Estate and the Recession

Considering the fact that it was real estate that started the ball rolling toward economic disaster in the first place, it's rather ironic that it is in real estate that investors really have the opportunity to capitalize on economic recession and turn what could be a potentially devastating economic downturn into a major opportunity for profit. Why? Because real estate is one of the major assets whose value is plummeting in the face of a never ending stream of foreclosures and bankruptcies, and it is real estate whose value is guaranteed to go up when the recession is over.

Think about it. Will there ever come a time when real estate isn't a desperately needed asset? Absolutely not! People are always going to need places to live and places to work, and because of that there will always be a need for real estate. That's why a huge percentage of entrepreneurs are jumping on board the real estate bandwagon to grow wealth and increase their net worth. It's one of the only markets out there that's guaranteed to never become obsolete!

A major contributor to the current economic crises and the fact that major players like Freddie Mac and Fannie Mae are going under is the huge number of people defaulting on their mortgages. When the concept of interest only loans and other special programs designed to help those individuals who otherwise would never qualify for any type of mortgage purchase a home first came out everyone thought it was a great idea-and in many ways it was. It placed the power to purchase property in the hands of people who otherwise wouldn't have the ability to do it, and it sent banks into raptures as more and more people came to them for assistance in buying or refinancing their first home.

Then reality struck. The bottom line is that many of these homeowners weren't able to get a mortgage in the first place because they didn't have the means to repay it, and while for some people the programs worked like they were supposed to (interest only loans for first time homebuyers still trying to find their niche in the workplace, for example, who later became responsible citizens and were able to shoulder the increased burden of their mortgage payment when the time came to begin making payments on the principle) others just found themselves going farther and farther into debt.

Skip ahead six months to a year, and suddenly a huge percentage of these homeowners are defaulting on their loans. Banks are foreclosing left and right, and they're struggling to get rid of these properties as quickly as possible to get them off their records. Each property goes to a foreclosure auction, where it sells for less than it would have outright at fair market value, and the bank barely reclaims its investment.

Fast forward a little farther, and suddenly huge quantities of people are out of jobs as the economy continues to slide. You have a huge pool of homeowners whose income, once strong and steady courtesy of major manufacturers and/or the United States government, is now no longer sufficient to meet their financial obligations. They can't pay their mortgages that they took out when their resources were more than sufficient to meet their needs, and the bank has to foreclose on those properties as well.

The real estate market is plunged into chaos, property values are falling rapidly in an attempt to stem the tide of destruction sweeping from coast to coast, and clever investors are rubbing their hands together in glee.

During an economic recession homebuyers simply aren't buying homes. They're pumping their money into other things. This inspires desperate homeowners to put their homes on the market for far less than they're actually worth in an attempt to make a sale that will be adequate to allow them to pay off the bank and be free of the mortgage default hanging over their head.

Enter the real estate investor. They soothingly placate the homeowner, assuring them that of course they're there to put everything to right. They contact the bank to let them know that they will be purchasing the property so that the bank can halt any legal foreclosure proceedings they may have initiated, and then they pay the happy homeowner and send them on their way, holding the deed to the property.

This process is repeated over and over again every day during an economic recession, particularly once that recession has begun to have a positive (or negative, depending on how you want to look at it) effect on the value of the housing market. It's not at all unusual for a clever investor to find a homeowner who has built up some equity in their home and who will gladly sell it for a fraction of the cost it would go for on the open market.

In dollars and cents, it means that it's not at all unheard of for an investor to purchase a $350,000 home for under $200,000 during an economic recession. The value of the property has fallen so far and the homeowner is so far behind on their financial obligations that they are willing to let the property go for a song just to dodge the stigma of bankruptcy or foreclosure that would otherwise be lingering over their heads.

After the investor has the property in his hands he has a choice. He can either choose to turn right around and sell it to a rehabber or private homeowner. He can hold on to it, rehab it himself and rent it out (since affordable rental property will be highly in demand in the face of the rapidly failing housing market, with hundreds of families ousted from their homes and left to find another place to live), or simply sit and hold on to it.

As an investor during an economic recession it's vitally important that you understand the basic framework of a recession. THE RECESSION IS NOT GOING TO LAST FOREVER! Sooner or later the economy is going to start getting back to normal, and when it does the value on your investment is going to rise back up. That $200,000 home is suddenly going to sell for $350,000 again-more if it happens to be in an area that sees a tremendous boom as a result of the ending depression.

That means that if you can afford to do it, the best thing you can do at this point is play a waiting game. You know the value of your property is only going to rise, and if you rehab it while you're waiting you can watch the value rise even more. Let's take that $350,000 house and use it for an example again. Let's assume for a moment that the house is sitting on a lightly wooded lot with a big backyard an easy commute away from a major, booming industrial area.

Let's also assume that the industrial area saw a major boom as a result of the ending recession, and that because of that boom property values in the area were jerked back up. That house that was worth $350,000 and sold for $200,000 is suddenly worth $400,000; however, while they were waiting for the end of the recession the homeowner also took the opportunity to rehab the property, doing some landscaping, adding a pool and a spa room and installing all new plumbing and appliances.

Suddenly that property that the investor bought for $200,000 and invested $40,000 to fix up is worth over $500,000. Even with the additional $40,000 investment for the rehabilitation the real estate purchaser is going to walk away with a tidy $100,000 in their pocket-more than many executives make in two years, and all because they were clever enough to take advantage of an opportunity when one presented itself on the back of an economic recession.

If you're looking for a way to take advantage of the recession and you have the time and the money to do it, I strongly recommend real estate. The good thing about real estate is that if you know the ins and outs of the business you can enjoy a return from this career whether you choose to think in the short term or the long term-although, for the sake of this book, I'm going to encourage you to put at least a little bit of thought into the long term.

Remember, long term when you're talking about an economic recession isn't the same as when you're talking about the long term anywhere else. A recession usually lasts less than a year. A year's worth of stockpiling for a lifetime's worth of profit. Hmmm...

Sunday, August 25, 2013

Hassle-Free House Hunting: Finding Real Estate And Other Properties Through Online Services

In the past, looking for a piece of property to rent or buy was often an extremely stressful experience. House hunters needed to spend hours, days or even months scouring local ads and newspaper notices before they can find a home that suits their preferences. They might also have enlisted the assistance of a real estate broker, but this meant added expenses - a particularly important consideration for buyers who are short on funds.

Selling property in the past was also riddled with many problems. Home sellers often advertised through papers and signs but this brought only a limited number of potential buyers, usually from fellow locals. They could have also worked with an agent to further increase the scope of advertising but this entailed further expenses as well. Thankfully, with the development of the Internet, property buyers and sellers today no longer have to endure the difficulties associated with real estate transactions in the past. Online listings with comprehensive search options can make the process easier, whether you're a buyer looking for real estate or a home seller putting a piece of property up for sale.

Online listings are particularly useful because of their broad coverage and accessibility. A seller who creates a listing for his property online can advertise his property to the billions of people who actively use the Internet. This means that an interested buyer can easily find out about the property, whether he's from a neighbouring city or from a far-off country overseas. This broad coverage is also beneficial for buyers, particularly those who are interested in buying or renting properties in other countries.

Besides offering maximum marketing coverage, online listings can also help shorten search times because of their advanced search functions. Many online real estate services offer filters for search queries, allowing buyers to sort search results according to area, property type, number of bedrooms and baths, parking space and price. This means that a buyer won't need to comb through thousands of listings just to find one that suits his or her preferences. By tweaking the search parameters, you will be presented with a manageable number of appropriate properties in just a few seconds.

The last benefit of online listings is that they help save money. For instance, a buyer looking to purchase a real estate property will not need to visit each and every available property in the area - a costly, stressful, and time-consuming task. High-resolution pictures and detailed descriptions in online listings can give buyers a sneak peek into a house, saving them from lengthy trips that may end in disappointment.

Saturday, August 24, 2013

Lease Option Best for the Real Estate and Property Dealing

Lease purchase option is one of the best options for buyers and sellers who are dealing in real estate or property. This is actually the agreement between the buyer and seller in which the seller will wait and settle for the full payments until some fixed time. This is usually useful for the buyers who are not able to pay the fixed amount of money for the particular property at once.

Lease Option enables the buyer to pay the monthly installments for the property until the predetermined time and until the fixed amount of money is paid fully. The buyers who are in the stage of repairing their credits often find it difficult to get the required financial help from the banks. At this time lease agreement proves to be quite useful for them.

In this lease option and agreement buyer and sellers must abide to the rules and laws of their state government. This is an ideal way by which they can well deal in the property without the need of paying full amount. It is up to the sellers will that they want to get the down payment for their property. In most cases sellers always require to have it and it is beneficial for them that they should not ignore it.

Various countries and state have their own rules and laws which should be fully followed when you want the benefits of lease option. This should be always executed under the lawyer of real estate who deals in Rent to Own Homes, Lease Purchase, Lease Option, and lease purchase agreement, etc.

Lease option is today one of the most secured way of dealing in real estate and property. This keeps the risk away for both buyers and sellers. If you need to get the financial help when you are purchasing the property, lease option can be most beneficial for you.

Thursday, August 22, 2013

Real Estate and the "Hot Tub Time Machine"

Recently my husband and I watched the hilarious new comedy recently out on video: Hot Tub Time Machine. The basic story line of the movie is classic "Back to the Future"; three guys who in the year 2010 are in their 40's go back to try and relive their youth by staying in the same ski resort that they vacationed at in 1986. After a night of wild partying which culminated in the hotel's hot tub, they wake up in 1986 and discover they have been given the unique opportunity to relive a weekend from their youth. Now that they know what the future brings, the question is do they chose to follow the path they know life will lead them, OR do they make a decision that will change their future.

The most classic "Hot Tub Time Machine" scenario in real estate situations that I have seen over the last five years in the Northern Virginia market is the owner who do not like the market conditions and instead of making the adjustment to get the house priced to market and sold, decides to put it on for rent for a few years in hopes the market will improve. Most market cycles are typically seven years in duration. So it isn't surprising that unless a property is held at least that long, it is not likely the market has had the time necessary to recover completely. Further, real property (and even land) is in a constant state of deterioration. Grass needs mowing, landscaping materials require trimming, gutters need to be cleaned, HVAC systems serviced, and on it goes. The rule of thumb that I tell home owners is to plan to spend 1-3% of the value of the property on the maintenance and updating of the property each year. So on a $1 million property, an owner should invest at least $10,000-$30,000 per year to keep it in marketable condition.

It has been my experience that even the best tenants do not care for a property the way the home owner would. Further there is the cost of commissions for the leasing agent and if there is a management company involved, that fee as well. Taxes and insurance has to be paid on the property. If there is the possibility of capital gains being realized on the sale of what had been an owner occupied property, one of the requirements is that it that the home has to have been lived in by the owners for 2 years of the most recent 5 years (always verify with a tax advisor to determine if this applies). The capital gains exclusion for home owners thus requires coordinating of when tenants move in and out and getting the home on the market and sold in the required timing.

Most significant however is the time, energy and lack of ability to truly move on is where I hear the most regret from people who have taken this approach. The time and energy to manage another property, usually from a distance, is huge. Not being able to utilize the capital invested in the equity portion as well as the outstanding debt on the property in many situations ties the home owner's hands from being able to truly settle in the new location.

The next time I have someone ask me if they should put their home on for rent for a few years and then try the market again, I'm going to share the story of real estate and the "Hot Tub Time Machine"! In the case of the movie, one of the guys realized the mistakes of his past and actually made a different decision then he had the first time around and his and everyone else's future was much better for it.

Wednesday, August 21, 2013

A Hi-Tech Boost To Real Estate And Property Profits

Property management can be defined as the art of coordinating duties related to the rental of real estate, managing, and investing in property on behalf of the owners of the properties.

Modern Software For Easy Property Management

Earlier on, managers and staff had to organize and plan their scheduling carefully, keeping records of dates of expiry of leases, contracts, maintenance requests, and of updating the maintenance schedule. With the advent of property management software, one computer and the appropriate software can do these jobs. This type of software for property management is without doubt, one of the most invaluable tools available for landlords, surveyors, letting agents, and estate agents. It does not matter whether the business consists of one property or lots of buildings, this software can assist you in concentrating your time and effort on bettering your business. They can be programmed to make instant charts to show rental arrears, maintenance costs, and the profit and loss of each property.

Efficiency Is The Key To Increased Profits

With the wide range of letting software on the market for letting agencies, you can pick and select the best one suited to your needs. This software can schedule your maintenance activities, keep track of electrical and mandatory gas inspections, safety inspections, and repairs. Trying to remember upcoming inspections or maintenance schedules is something you need not worry about. This software will alert you in advance automatically and list out the items that require immediate attention. Another advantage of this type of software is it can prepare letters to tenants notifying them of overdue rentals, printing out monthly management reports, and making a record of pending rental payments and rental income in the future.

Technology To Maximize Profits

There is plenty of landlord software available in the market to help landlords track their incomes and expenses from each property and generate important cash flow reports on each property. This software is very advanced and can be programmed to do the work done by a full-time employee. It can consolidate the statistics that are needed about each of the properties at one place, making sure time is not wasted looking for documents. This will certainly aid in managing the properties efficiently, cutting unnecessary expenses and increase your cash flow. Present day property management software can prepare balance sheets and account statements in the style and format favored by most accountants. With the speed of advance in technology, letting agents and landlords have been making the most of the benefits of property management software programs.

Sunday, August 18, 2013

5 Ways to Sell Your Real Estate Listing Properties Without Spending a Dime

Selling does not always mean making a sale. You sometimes have to sell yourself, your quality, your brand, or your trust. The way you treat an individual can go a long way. Embedding your company logo into the heads of your clients will grow your business. Having a honest and trustworthy presence will allow clients to do business with you. There are many ways to sell real estate properties which don't involve making a direct sale.

The below tips are common ways to sell real estate properties without making a direct sale, these are the actions which commonly lead to a sale. Let's go over the ways to sell real estate properties without making a direct sale:

  1. Personality. Personality is a great business tool. It makes you personable, approachable, and the right personality can charm anyone. Unfortunately, personality is rarely a characteristic which a person can develop or imitate, it is something a person is born with. However, most people have a personality, they just need a little help getting it to shine through. I have some tips for getting your personality to shine through.
    • Practice makes perfect, so attend social events and conferences to network with others. Continue this routinely until social atmospheres become a comfort zone for you
    • Always, smile inside. If you smile inside then it will appear you are always smiling outside. Think happy thoughts!
    • When speaking face to face look a person in the eyes, without it being an uncomfortable stare. Stand still if you are one on one with someone, but if you are in a full room or crowded conference center then use slide presentations and move from one side of the room to the other while projecting your voice and connecting with all sides of the room.
    • When talking over the phone, talk clear and pronounce your words. Take brief pauses and breathes between sentences and speak in a calm tone.
    • Don't always be about real estate, unloosen your tie sometimes and talk about yourself, your hobbies, and your interest - show your personality.
    • Start a blog or newsletter which allows you to express your personality while promoting your real estate business
  2. Use Signatures. Placing your real estate property listing in your email signature can generate traffic for your listing. You should also place your real estate property listing in the signature of online forums and discussion boards, thus increasing the visibility of your real estate listing.
  3. Free Classifieds & Online Directories. There are an unlimited amount of free classified services and online directories. The most popular online classified service is Craigslist.org. Having a real estate property listing in Craigslist is known to yield results and deliver high traffic.
  4. Social Media & Bookmarking Networks. Social media and bookmarking networks are increasingly popular. These networks can deliver high levels of traffic, especially if you become popular and sociable within these type of networks. Submit your real estate listing to these networks. It is most beneficial to find social networks which are edicated specifically to real estate, such as Active Rain Real Estate Networks.
  5. Organic Referrals. Referrals are very important, because this comes as a trusted body of resource. Referrals increase the chances of a sale. If a homeowner has done business with you in the past and you have a new listing for sale, then you should send an email to your past clients to inform them of your new listing and to please refer you to any of their family or friends that may be in the market for a new home. Most homeowners no someone in the market for a new home and are more than happy to recommend a real estate agent who they have had a pleasant experience with.

The above are great places to start for promoting your real estate listings without ever spending a dime. Penny pinching and only free advertising should never be your core business model, but in many cases it is unavoidable and every business goes through times when they need to save, so using the tips above should help you get the most out of your free marketing campaign.

Saturday, August 17, 2013

Bendigo Real Estate

Bendigo real estate is increasingly popular with a train journey to Melbourne taking as little as 1hr and 24 mins. By road the journey is 149 kms. It is increasingly a favourable option as residential property prices in Melbourne become less attainable.

Bendigo is a major regional centre in Victoria Australia which takes in the towns and rural areas of the Loddon region. Historically a manufacturing region the rural city has grown to a population of approximately 97,000 with strong real estate, health, education, and retail sectors.

Bendigo real estate remains affordable when compared to other Victorian centres with a median house price of $225,000. The 12 month trend to January 2008 showed an 11.6% increase in prices, 43% Auction clearance rate and average 93 days on the market for private sales.

While the capital growth in Bendigo Real Estate is still favourable, figures from the Valuer General Victoria would indicate it to have slowed in recent years. Those figures show median house prices in 2002 at $147,000 (2262 sales); 2003 at $180,000 (2140 sales); 2004 at $198,000 (2008 sales); 2005 at $207,000 (1915 sales) and in 2006 at $213,500 (700 sales). Buyers should be aware that these prices are median prices only. Bendigo properties currently range in price from around $50,000 for a small development block to upwards of $1,000,000 for some of the more sought after and grand historic properties.

Bendigo Rental prices begin around $160 per week for a three bedroom house up to $500 for some of the commercial rentals listed and available in January 2008.

There are number of Bendigo Real Estate agents who deal in residential, commercial, businesses, rentals and vacant land sales. The Bendigo Real Estate Agents are all located within the City of Greater Bendigo which takes in the suburbs and districts within the Greater Bendigo region and surrounds.

Property vendors may also choose to sell their property privately without the using an agent. There are advantages and disadvantages to this approach which the vendor should consider. If considering selling your property privately these are some of the factors you will need to consider

1. Research the market and price your property accordingly

2. Consider your marketing strategy and costs, for example place an ad on the Bendigo website

3. Ensure your property is well presented during the sale period

4. Consider small ads in newspapers including at least one web page your property is listed on with images

5. Contact a solicitor or conveyancer to prepare the legal transfer documents

6. Provide an information sheet for potential buyers which details your properties features, land dimensions, council rates, water rates and other relevant information.

Friday, August 16, 2013

Real Estate and Retirement - An Option to Consider

From the time you receive your first salary, you think of saving your money through some plan and seeing it grow. You will then think of the best retirement plans available in the market and go for them, be it savings or fixed deposits, stock trading, IRA funds, 410k plan or various businesses. Yes, there are plenty of options available for you but you should know which ones will give you the maximum benefits and maximum returns on your investment. You must find them and plan accordingly. This will provide you with ample financial security during your retired life.

Investing in real estate is one of the best options available for you. You should take advantage of the current marketing conditions. These days, houses are in sale in the market in very low prices as there are a rising number of foreclosures. If you choose the best location available, there is no better a retirement plan than buying properties through real estate. The present situation of the market will certainly benefit you.

Do consider real estate as one of your retirement plans. A little bit of hard work now can secure your future. Now I will give you various strategies on how and where to find the best properties which you can buy.

1. Look everywhere- Find places which are cheap to invest. Understand the market there and see if good profit is assured. Consult people who are in the real estate industry in the region which you choose.
2. Be careful not to invest in any property without checking the resources. Look at the location very carefully and study the living facilities around it. If you think it is the best place you can get, buy it. If the place seems just about OK to you and you want to invest anyways, rent it rather than buy it.
3. Consider investing in multiple locations- Rather than sticking to a specific property, getting hold of multiple properties will be helpful for you. This step will help you reduce the risk factor which is there in the market. If it's a tourist location consider that angle too and invest.
4. Find the best places- If you have a list of, let's say, ten properties, find one or too which are the best in terms of returns. Learn to prioritize your options. Investing more in these one or two best places will never give you up. You will get steady income from these properties.

Now you might have understood that real estate is one of the best options available for you for your retirement-period financial security. Consider the advice of other people too if you are investing. Find people who are experienced in the field and ask for advice. People will certainly help you. Do not fall into the traps of fraudsters who will cheat you with false claims. They will blind you with false images of extra profits. Do a thorough research before investing. Do not get cheated. If you plan your strategies well, you will be successful for sure.

Wednesday, August 14, 2013

Outstanding Values in Real Estate Investment Properties in Middletown, & Orange County, New York

If there is at least one positive aspect of our country's persistent economic posture, it would be that almost everything is negotiable. Car dealerships' buyer incentives continue to entice would-be purchasers with every imaginable come-on. Department stores snail mail and email endless coupons and "sales events" information, in an effort to lure a shopper to either their physical store or website. Restaurants have beefed up advertising on television, on local radio stations, as well as in the newspapers and boutique regional magazines, offering "two-fers", "early bird specials" and "points systems" for return customers. Of course, not to be overlooked, telemarketers doggedly pound the phones in an effort to make a sale. Surrounded by every imaginable product or service - presented to us in magazines, on television, in transportation hubs, on the internet, by mailed circulars, solicitous phone calls, billboards along the highway and newspapers - we all know there is just no end to it. Amazingly, though, the bottom line is that they all say the same thing, and that is "buy me". And all of these companies want the same thing, and that is your "buy". Additionally, they all know the same thing - the consumer is not buying the same way they have in the past. The customer or client is more savings-conscious than ever and will be on the lookout for the "best buy". This buyer mindset drives the constant barrage of advertising - all in a bid to make a sale.

Yes, now is clearly the time to buy, regardless of what you need or want. This unquestionably includes real estate, most especially investment properties. The great humorist and author, Samuel Langhorne Clemens (more commonly known as Mark Twain), made a very wise suggestion, in one very short sentence: "Buy land, they're not making it anymore". Land is for sale everywhere and, comparatively speaking, the "price is right"! Whether in search of a neighborhood building lot for a residence, significant acreage for keeping horses, or a suitable location for a commercial endeavor, land is considered a smart investment. But for those seeking an immediate income-producing opportunity, now is the time to consider the possibilities of a rental property. Especially suited to this effort would be a multi-family dwelling, which is defined as a house or building with two to four units. As of February 16th, 2010, there are 60 multi-family properties for sale in Middletown, in Orange County, NY through the multiple listing service, priced between $68,900 and $330,000. What this means to a potential buyer is that the owner-seller of a multi-family home has a tremendous amount of competition (since there are so many of them currently listed for sale), and competition directly points to negotiability. Furthermore, exactly half of these available properties have undergone at least one price reduction during the current listing period, and there are a significant number that have had several "price adjustments". There ultimately comes a time when the owner-seller will take what his property is worth - and the definition of what a property is worth is quite simple, and that is "what a buyer is willing to pay for it". What are you, the potential buyer, willing to pay for it?

Several factors determine the value that works for you and, of course, the most important of these would be the location and condition of the structure, and the income-producing history of the units within the house or building. Some of these above-mentioned properties are located within a business district and are therefore classified as "mixed use" - most of the time, the street level space is used for a commercial business, and the upper floor(s) would be used for rental apartments.

Usually a commercial occupancy commands more rent than an apartment, so having a business lessee, in addition to apartment renters within the same building increases the return on investment. However, regardless of whether a property is "mixed use" or not, there is income to be garnered in owing a rental property. The current monthly rent roll of these 60 available listings averages between $1500 and $3000, depending on the number of rental units, as well as the square footage and number of bedrooms in each unit. Obviously, the more units within a house or building, and the more bedrooms and living space within each unit, the more rent a landlord can command. Another important consideration is that many of these properties are located within walking distance to shopping, public transportation, schools, medical facilities, parks etc. It should also be noted that Orange County, NY is an awesome combination of cultural diversity, intriguing history, numerous recreational possibilities and countless places to visit and things to do!! An additional and substantial "investment magnet" is that there are owner-sellers who are even willing to hold paper, at reasonable interest rates, in order to make a sale!

Indeed, now is the time to buy an income-producing property; and it is also the time to consult with a licensed real estate salesperson who offers highly professional service and sound real estate guidance, so you can carve out your niche in the income-producing real estate marketplace!

Monday, August 12, 2013

Indian Economy, Real Estate and Property

The continuous growth of retail sector is also playing a key role in the growth of the realty sector in India. With the growth of the retail sector estimated at 25 per cent in the next few years, it is likely to create a demand for real estate measuring more than 200 million sq. ft.  

Numerous shopping malls with an average area of one-million sq. ft. are already in place or on their way in a number of cities in India including Delhi, Mumbai, Kolkata, Bengaluru, Chennai, Hyderabad, Chandigarh, Ludhiana and Ahmedabad etc.  

As the burgeoning middle class in the country are often earning more than what their previous generations did, there is an increasing demand for residential property and real estate as well. Industry reports forecast a huge demand for residential property and realty in the days to come. Even a casual tour of the cities and even smaller towns in the country bear ample testimony to such a development.  

Consumers are now finding acquisition of residential property easier as many leading banks, both in public and private sectors, are offering housing loans with easy repayment terms. All this has been sending realty developers laughing all the way to banks.  

In a major departure from the earlier times, leading realty companies in India such as DLF, Parsvnath, Ansals etc. are adopting corporate style of functioning by entering the stock market. And, many other realty groups are also thinking along the same line. Some of them are also getting involved in PPP, i.e., public private participation models with the government.  

In order to maintain the growth, the central government has allowed the entry of foreign direct investment (FDI) in the real estate sector. There are a number of overseas companies from places like Dubai, Singapore, the Philippines, Malaysia, Britain, US and Israel that have been operating here. Real estate surveys conducted in recent times indicate that a huge amount of investment is likely to be made into the Indian real estate sector in the coming years.

Friday, August 9, 2013

Commercial Real Estate Investment Properties

Over the years, my clients have understandably wanted me to pursue every avenue to sell their property. To do so, they often request that I list their property as an investment in addition to listing it under a particular commercial real estate category. While this may seem like a good idea, in my opinion, unless you really have a property that can be considered an investment property, it is not particularly helpful.

Recently, one client asked to have their office building listed as an investment property. Office properties can be an investment but in my opinion, this property did not qualify. It was about 50% vacant and all of the leases in place were short term leases.

Similarly, I have had clients ask to have land listed as investment property. Certainly, there are people who will buy and hold land for a potential windfall down the road but unless the land has a lease or some sort of on-going income potential, I do not think that it is appropriate to consider it an investment property.

For a true investor, neither of these cases would get you past first glance. For something to be an ideal Investment property, it should have the following -

  • Ongoing income streams - Usually this would be rent. In the past, some people have assumed an appreciation of the property over time in their decision process. In my opinion and in light of the tremendous devaluation of real estate over the last few years, that is a mistake. When making an investment decision, the best practice is to consider the actual income streams themselves in valuing the asset.

  • Long terms on the income streams - Ideally lease terms remaining should be 10 to 20 years. When buying an income property, a new owner does not want to pay for a property that may be vacant in 1 or 2 years.

  • Single tenant users - This is not to say that people will not consider multiple tenant properties however, as you increase the number of tenants, you also increase the number of potential headaches associated with the property.

  • Credit Tenants - Whether you have a single tenant or multiple tenants, the leases associated with the property are only as strong as the tenants.

  • Triple Net Leases - Ideally, an investor will simply want to collect rent and deposit a check. For them the best leases have the tenant responsible for the property taxes, insurance, utilities and maintenance of the building.

  • Full or nearly full occupancy - Some properties are advertised as income properties which have significant vacancy. These properties often advertise a cap rate for the property that assumes the vacant area will be leased at the asking lease rate and the asking price for the property. In my opinion, this is misleading. If a property is not fully leased, quoting a cap rate in this way makes no sense. An investor making an intelligent decision would be best served selecting a property which is fully occupied.

For Investors to compare apples to apples, they need an investment alternative that is basically as simple as any other investment option. With stocks, bonds, or interest bearing accounts, you simply invest the money and do not have to take on property maintenance, leasing and other chores and expenses. Of course, these criteria significantly reduce the number of properties which you might consider and I realize that not every property will have all of these features. But I will also tell you that properties like this do exist and can be found.

There are definitely properties which will sell that do not have all of these features and expectations of these features differ somewhat with the type of property (i.e. retail vs. office). However, if you are marketing the property as an Investment option, the successful seller will try to match these criteria as closely as possible.

Thursday, August 8, 2013

Real Estate And Foreclosure - What You Need To Know Before You Opt In

With the downturn in the economy many entrepreneurs are looking at getting into the real estate market especially concerning foreclosures.

Real estate has always been and will always be a smart investment choice. However, before one jumps into the real estate market there are some fundamental legal issues one needs to have a good grasp of.

By owning real estate in your name, you give up control of your assets and you risk losing everything.

Real estate investors are particularly vulnerable for two reasons.

1. real estate ownership is shown in the public records for anyone to find.

2. any judgment against you immediately becomes a lien against all your real estate.

What this means is that any lawsuit against you could potentially result in all your real estate being encumbered by a resulting judgment. A judgment will lien your properties until you either pay it off or win an appeal later. You will not be able to sell or mortgage your property until you pay the judgment in full. The only way to protect your real estate is to separate the ownership of the properties. This is where Land Trust Agreements come in.

To create a land trust, you enter into a land trust agreement with a trustee you choose. You will then deed the property into the trust. In the trust agreement, you will designate a name for the trust. You can use any name you desire. I personally use the street address for the Trust name. For example, a property at 123 Park Street would be named 123 Park Street Land Trust and another property at 456 Elm lane would be 456 Elm Lane Land Trust.

Thus, transferring each property (by recorded deed) into a separately named Land Trust Agreement you have isolated or separated the ownership of each property as you always have only one property in each trust.

If there is a problem with one property, let's say a tenant at 123 Park Street sues the landlord (property owner) the suit would be filed against 123 Park Street Trust as this is the name on his/her lease agreement. If he/she is awarded a judgement it becomes a lien against only the property at 123 Park Street and not against all properties owned by you. Leaving you free to sell or mortgage any or all of these other properties without first having been forced to pay the judgement against 123 Park Street.

Remember, if all your properties are under a single owner you must first pay your judgement before you can sell or mortgage any other property. Even if you are appealing the judgement, you are not allowed under law to sell or mortgage any of the other properties because if you have not separated ownership of your properties the lien initiated against 123 Park Street becomes a lien against all your properties.

A Land Trust Agreement leaves you in control of your properties and makes your real estate ownership your own private business. The land trust Agreement is not recorded only the deed is recorded. Since the property is not titled in your name, only you and the trustee know that you own it. The trust contains a provision explicitly preventing the trustee from disclosing your ownership.

The trustee is of your choosing and can be anyone, a friend, a lawyer, a family member, anyone that you trust. The trustees main responsibility is to hold the title to the property until you direct him to transfer the property. The trust agreement and deed to the trust provide the trustee with the necessary authority to act in whatever manner necessary on behalf of the trust. The trustee is prohibited from acting, however, except upon your specific written instructions. When you want the trustee to take some action, such as deed the property to a new buyer, you simply direct him/her in writing to do so.

The trustee is not personally liable for any action he/she takes on behalf of the trust. You have the right to fire the trustee if you ever desire to do so. The trustee can resign. In either case, or if the trustee dies, you have the right to appoint a new trustee of your choosing.

The land trust also provides for the beneficiary. You are the beneficiary. As the beneficiary, you have the right to direct the trustee how to deal with the title to the property, you have the right to manage and control the property, and you have the right to receive all the income and tax benefits of the property. As the beneficiary, you own the trust which owns the real estate.

Tuesday, August 6, 2013

Commercial Real Estate Syndication: Property Selection and Purchase, Part 1

Let's assume that you've decided to start assembling groups of investors to buy investment real estate. If you followed my Roadmap of a successful syndication in my previous articles (Part 1 and Part 2), then you know that the first step is to research a neighborhood and pick a property to buy. You'll first want to focus on the type of commercial real estate to purchase for your syndications.

So what is the best kind of investment real estate? In the process of putting together your groups, you'll come to realize that not all types of real estate are "created equal" from an investment perspective. Here is a breakdown of property types and their attractiveness as syndication investments:

LAND: Including Remote (currently unusable), agricultural, and "pre-builder" land.

1. "Remote" land is held for a long period of time with the expectation that growth will increase its value. Unfortunately, it's highly risky and provides no current income for investors. The biggest down side is that investors would have to make periodic contributions of capital to cover expenses for taxes, insurance, and possibly loan payments.

2. Agricultural land is used to create crops for sale. It is essentially unimproved land used in a business and its value is derived from the ongoing operations of that business.

3. "Pre-builder" land is subdivided and sold off to various builders who complete the end product, whether housing or commercial. The land is effectively inventory and its value is created in the subdivision process.

CONSTRUCTION: Including new commercial and sub-division projects, beyond the pre-builder stage.

EXISTING: Operating residential and commercial income producing property.

If we go by the list above, we'll soon realize that as syndicators, we'll want to focus our efforts on only one of the major categories. This would be income producing rental property. There are several reasons for this, some obvious, and others that can get you into a heap of trouble if you don't spend some serious time with your attorney. You'll want to be clear on the benefits both you and your co-investors will derive from your real estate investment efforts, as well. This will help not only in focusing your efforts, but in promoting your properties to prospective investors. Here they are:

- Agricultural land, pre-builder land, and new construction projects derive their value from the efforts of others beyond the investment in the property itself. This creates a "corporate securities risk" for the money investors and puts the syndicator under the jurisdiction of both state and Federal securities laws. Ultimately, it means that you could be severely liable to your investors if things don't go as planned. Do not operate in these types of investments without both significant previous experience and excellent legal help.

- Remote land will most likely require "capital calls" to existing investors to pay real estate taxes, insurance, and debt service as you wait for its value to increase. There is nothing an investor hates more than a call from his managing partner to ask for more money. Even if it's disclosed up front and anticipated, it's not good psychologically.

With existing properties:

1. Investors' capital is contributed without the expectation of future contributions, in most cases.

2. There is minimal involvement of the capital contributors beyond providing the investment funds.

3. The owners can expect to receive spend-able income on a periodic basis.

4. The owners can expect an increase in equity through the amortization of any loan used to assist in the acquisition.

5. There is also a realistic expectation of an increase in value of the asset from both monetary inflation and appreciation.

6. There will also be tax benefits from depreciation of the improvements (not the land) and utilizing a 1031 Exchange reinvestment strategy at the property's sale.

So as we go forward on this topic, we will focus on existing, operating, commercial rental income properties. This greatly reduces the syndicator's exposure to regulatory requirements and provides investors with regular checks, making them very happy to get your phone calls!

Sunday, August 4, 2013

Invest in Real Estate and IRA Assets

American taxpayers are allowed by law enactment of the Employee Retirement Income Security Act (ERISA) to invest their Individual Retirement Account (IRA) in real estate through custodial institutions such as financial brokerages and banks. Evidently, the investment synergy of real estate and IRA took time owing to restrictions imposed by these so-called IRA custodians themselves who discouraged investments that do not profit them. Thus, the traditional IRA is limited to stocks, securities and other traditional money market schemes and investments.

It was bad that IRA holders are not well informed about options to self-direct their IRAs and other retirement plans into property investing thus making their retirement savings grow. Recent developments, however, saw an upsurge and leading to the transformation of the industry scenario to real estate and IRA investments. The traditional IRAs are invested into a more "imaginative" but high yielding property investment and its portfolio instrumentalities through self directed account or the so-called "Self Directed IRA". The traditional IRA must be converted to "Self Directed IRA" for the latter to become legally compliant. Also entrusted to custodial institutions but not restricted to them by law but on other existing restrictive legal provisions, industry experts therefore are "bullish" in Self Directed IRA invested in investment property because of its unlimited nature and the IRA holder is not bound by the dictates of their custodial planners or brokers. The law allows IRA holders to decide and control in almost all types of investments to engaged, players used the slogan "imagination is the limit" for real estate and IRA investments. Industry figures itself reveal that property investments are both expansive and offer one of the most, if not, the most lucrative yield from all other investment instruments.

The topmost advantage in real estate and IRA investment is the deferment of capital-gains tax on property sold or in some cases, tax-free profits. These profits from such transactions enjoy compounded interest proceeds. Likewise, the real estate is protected by law against liabilities arising elsewhere including exemptions for a certain amount of equity increases as well as providing estate planning in cases of incapacitation or death. It certainly has disadvantages too among them is inexperience in managing properties which could lead to poor decision rather than lucrative yields. While the property is protected by law, money invested are stocked in it for the long term thus the IRA holder cannot divert some to other investments. The law is very strict on family members of lineal descent who cannot use, rent, purchase the property or financing loans and purchase stocks on said family members. Transactions through IRA covered accounts, must fit the IRS code and are subject to legal complications, misunderstanding or ignorance of the rules which could end up with problems entailing severe penalties.

Real estate and IRA investors still insist that the advantages outweigh the disadvantages mainly by willingness to understand the law and responsibilities in managing properties. While complicated legal provisions present obstacles, this investment consultancies are as accessible as the restrictive custodial brokers. Traditional stocks, bonds and other instruments may be the comfort zones of IRA investors but the risk takers and those with entrepreneurial spirits could earn a "six figure range" yield. These IRA qualified investors are offered a diversity of choices within the industry; they can buy houses, apartments, office buildings, malls, hotels, tax-lien certificates and acres of land.

Saturday, August 3, 2013

How Tax Shelter Benefits Real Estate Investment Property Ownership

Tax shelter is one of the returns associated with real estate investment that benefits income property ownership. Thanks to the tax shelter benefits provided by the tax code, a real estate investment can shelter some of its own income from taxation and occasionally shelter income received from other investment sources as well.

In this article, I want to introduce you to two allowable deductions for real estate investment properties that provide tax shelter.

The first of these deductions is for mortgage interest. The IRS allows you to deduct the interest you pay on the mortgage you obtained to acquire the income property. The benefit to real estate investors is that interest is really a cost associated with acquisition of property rather than operating it, and the argument can be made that tenants really pay the mortgage interest for the real estate investor.

The second source of tax shelter is through depreciation deduction, which the tax code now calls cost recovery, but we'll continue to call depreciation for our purposes. In this case, the IRS allows you to assume that the buildings (not the land) are wearing out over time and becoming less valuable, and as such permit you to take a deduction for that presumed decline in the value of your asset.

Okay, now here's what's great about real estate depreciation.

Depreciation is a non-cash tax shelter deduction. In full compliance with the tax code, you get a deduction that is not an operating expense and therefore does not affect your cash flow. Moreover, depreciation can shield some or all of your property's year-to-year income from taxation and in some cases when the depreciation deduction is large enough, it can even exceed the amount needed to shelter the property's own income and provide tax shelter for other investment income as well.

Though you won't find a simple formula for the tax shelter component of a real estate investment, here's the idea.

Income less Operating Expenses = Net Operating Income

Then,

Net Operating Income less Mortgage Interest less Depreciation (Cost Recovery) = Taxable Income

Example: Let's say you own an income-producing property that generates rental income of $48,000 and operating expenses of $19,200, leaving a net operating income of $28,800.

To calculate your taxable income, you would then deduct your mortgage interest and allowable depreciation from the net operating income.

Unless you have an interest-only loan, your mortgage payments are made up of both interest and principal. Only the interest portion is deductible, which we will say is $17,559.

The amount of depreciation depends on several factors: The useful life of the buildings as specified in the tax code, which is currently 27.5 years for residential property and 39 years for nonresidential property, and the percent of the investment real estate allocated to buildings and land. Only buildings can be depreciated, and for our purposes, we'll say that the deductible amount for depreciation is $10,037.

Here's the calculation: $28,800 - 17,559 - 10,037 = $1,204

In other words, you must pay Federal income tax on a taxable income of $1,204.

There are other components to tax shelter. For instance, you can typically depreciate capital additions over the same useful life, starting when they are placed in service. You are allowed to amortize closing costs associated with the acquisition of an investment property over the same useful life. And you can amortize loan points over the number of months of the loan term and write them off.

I kept it simple just to give you the idea of how tax shelter is associated with real estate investment and how it can benefit income property ownership. Hopefully, it helps. Here's to your real estate investing success.

Friday, August 2, 2013

House Flipping - Cost Saving House Flipping Tips - Real Estate and Property Flipping

Tip 1 - Find a good contractor. Sound easy enough, but finding a good contractor can make or break your budget when flipping house. Things that can go wrong if you hire a bad contractor for your property are they over charge you, bad workmanship, and time delay. People ask me what is the best way to find a good contractor to do work on your property and I say word of mouth. I found one of my contractors from a recommendation from a lady from work, and all I had to do was ask. Remember that a bad contractor will drain your time and profit from your house flip, so chose carefully. If you do get a bad contractor and they are not working out the only thing to do is FIRE them and fire them quickly.

Tip 2 - Line up all your contractors or subcontractors. The order that I recommend is first get an inspection of the property to make sure it is not a money pit. If there is foundation issue get it fixed first. If you have to fix your foundation later in the flip you will have to repair sheetrock, trim, tile and so on. Next, send in the electrician so the house does not burn down. Also, sometimes they have to remove sheetrock to run the lines and you don't want to do double work. Then get your contractor in there to do the cosmetics such as paint, trim work, hanging light fixtures, installing sinks and so on. Last thing you want to do if you have carpet is install carpet. The last thing you want to do when flipping a house with wood floors is install baseboards.

Tip 3 - Buy all your materials at the start of the project will save you a hundred trips to Home Depot. Buy your paint, trim, doors, sheetrock, light fixtures, sinks, cabinets, and everything else that you can think of. When I flip a house I give my contractor a 200.00 gift card to Home Depot to buy all the miscellaneous items that I did not think of. This saves me time and money by me not have to go to store every time my contractor needs something, and in the house flipping game time is money.

Tip 4 - Find a good Real Estate agent. You need a real estate agent that is great at negotiating. An agent that looks out for your best interest, and not just trying to make a commission. You need to interview agents and find the right agent for the job. That is willing to go to hundreds of houses when you are looking for those diamonds in the rough properties, and they are willing to do open houses when you're selling your properties. Also, see if you can get them to reduce their commission do to you are going to be the next Donald Trump of real estate and bring them a lot of business. One half or one full percent of a commission can save you thousands.