Category: Real Estate
Real Estate Training: Why Is It Important?
Real Estate industry covers in the selling and purchasing of land properties, buildings and houses. As long as there are people that seek to find house properties, building or land properties, then real estate agents will still be at work and in demand. Being a real estate agent is tough as it needs a strong-willed heart to survive. Nonetheless, when a deal is closed, the reward as well is deserving.
By having the basic soft skills in dealing with clients, an agent will not have a hard time closing a deal. A real estate agents’ work is tasking but worth the effort if the goal is targeted. In this industry, even if an agent is new or already seasoned, there is still that need to learn more. To become a great agent, one should not settle for less. Learning keeps increasing but is never decreasing.
Is there going to be a catch if an already pledged real estate agent will attend more pieces of training and seminars? The more information stored, the better is the art of convincing to close a deal.
An agents’ knowledge about selling and closing deals need not stagnate. Evolution of knowledge, abilities, and ideas does not stop, and what is known today may not be the same tomorrow. This is the same to real estate as every now and then there are changes in policies and standards. Refreshing the mindset and skills through real estate training will keep the agent on track. This is so because there will be times when stress and depression may be overwhelming. Therefore, attending pieces of real estate training and seminars will keep one in line with the trends.
Learning new strategies and getting new ideas will keep the fire burning. With the availability of new learning through real estate training, an agent is able to value himself higher one step at a time. The drive to improve productivity will be skyrocket especially after real estate coaching. The more confident a real estate agent is, the easier it will be to deal with people and sell.
Fishing points, strategies, and recommendations from previous agents and brokers will be a great help. Many successful retired real estate agents and broker are willing to give advice and share their experiences. By hearing success and failure stories from these people, an agent may feel the urge to strive hard and aim for a much bigger dream.
The agents’ interest in learning more by attending pieces of training and seminars will be a key to a company or a group’s success and advancement.
Pieces of Mike Ferry training and seminars broaden the perception of an agent that will give the motivation to achieve greater goals. The desire to learn more and expand knowledge about the matters that concern real estate will definitely make a real estate agent gear for success.
There are various sides to building such residential buildings. There are several constructions which seem to come up in so many parts of the world. It is quite important that you would look for the most excellent home development company so that you can be sure that they can deal with the issues that arise. Some of the problems that they would face would include such short cash flows, the expensive building materials and several others. So many home development companies have actually failed and they are the smaller contractors who tried expanding really quickly.
When it comes to engaging such residential builders, there is information which one must ask in order to understand if the company is really strong or not. It is really essential that you deal with the company that has such reputation that is well established and long. There are many companies in such construction industry that fail every year due to the receivership and liquidation. One common trait of these companies is such fact that they were still in those infancy stages and were just less than five years old in the business.
It is really important that you are able to find the best company when it comes to home development. The traditional method may be applied where you would obtain some recommendations about the best player out there in the market. It is quite important that you must get out and see the types of projects which such potential companies are working on and obtain a feel of the quality. Talk to such people who have been through this building experience and then get their opinion and also recommendations.
If you are able to find that such builder some projects which have stalled, then it is definitely a bad sign and should be the reason why you need to think deeper about such options you have.
The real estate builder Mark Saunders designs and builds quality-homes and beautiful abodes and he has been doing this for over 30 years. In purchasing a land or home where you would want to build that dream house, he is well aware that such is really an important decision that must be done carefully.
Even if there is an exaggerated Mark Saunders lawsuit news, but the many companies that he manages are quite confident with his work and he manages the projects well and is quite committed to provide the best and luxurious communities, homes, services and golf courses to various property owners. He really takes the lawsuits very seriously and such is why he makes sure that his work is really done in a detailed manner and very carefully to be able to avoid the problems with the many property owners that he is doing business with.
Guidelines On Choosing The Best Construction Company In Panama City
All the best houses and skyscraper around the world are as a result of artistic work of construction. Perfection is most critical on this area because it is much needed in building sector. The purpose of this is because, poorly constructed buildings may result in calamities such as property being damaged, huge losses or even death. Thus, with the plans of building a house, it is important to hire professionals to handle the job.
For instance in Panama city beach, the best building company one should employ is the Aloha . Aloha is regarded as the best to hire in Panama city, because of how they conduct a preliminary budget that the construction should be constrained to. To have a specific design of a building may be a what a client wants but lack idea on the how it may cost to construct. Involving aloha contractors thus cuts off such complications as they provide a platform that better explains to the client a budget expectation by showing some projects they have done giving a clear image.
They also pre-planning services on construction. They strive to make time and explain to their customers their construction planning basing it on the expectations. It is always advisable to seek some crucial information such as where to locate the building both commercial and residential; before the start of the construction. This is important because commercial houses, for instance, will require being built in places where there are potential clientele. Aloha builders offer all of these. The manager in charge of the construction, therefore, works hand in hand with architects, engineers, realtors among others.
Aloha builders also conduct preliminary visits to the sites where construction is planned to take place. This is essential so that a final budget can be determined and also the amount of work required for the project. They do surveys in the area of construction before the construction commence, so that they can advise on the best ides of a house that should be built in that particular area.
Therefore, any plans to build a dream house or a commercial resident in Panama, Aloha builders are the best to consider.They are unique from others for they are capable and live up to their promise. Aloha builders offices are located at Panama City beach.Aloha general contractor panama city beach also offers services like maintenance in the commercial maintenance contractor panama city beach. successful projects in Panama city that can be attributed to aloha contractors are mainly the FL custom homes.
People having Any construction work in Panama city are therefore urged to consider aloha contractors panama city beach services.
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This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.
With all this said, just because you don’t need money to buy houses, does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down turn, but to thrive in it. In this article, I will briefly walk through 4 ways to buy rentals with nothing out of pocket, but want you to understand that this does not mean you should own rentals with no reserves.
Owner Finance: This could mean many things, but for the purposes of this article I am going to assume that the seller of the home is extremely motivated and is willing to basically sell the house just to get away from the mortgage payments. This is commonly referred to as a subject-to transaction because you, as the buyer, will take title subject-to any other liens that are in place. What this means is you get ownership of the house, but the seller is still on the hook for the loan. You as the buyer will agree to either pay off the loan or make payments on the loan on their behalf. If you don’t, the lender can foreclose and wipe you off of title.
The seller is taking a tremendous amount of risk with this type of transaction, so it is difficult to negotiate and they need to be extremely motivated. It works well for you because you don’t need down payments or to qualify for a loan. It works for them because they have someone else making the payments on their loan, which relieves them of the payment pressure, and potentially can improve their credit. As you become more experienced, this is a strategy you will want to look into. This allows you to purchase an unlimited number of cash flowing properties without ever needing to qualify or sign for a loan.
Lease Options: This is the strategy that really worked for me when I was just getting started. I like it a lot because it is easy to explain to the seller and it is not difficult to get them comfortable with it. They still need to be motivated to want to do this, but nothing like the subject-to transactions.
The way this works is you negotiate with a seller of a home to lease the property for a set period of time. I would typically negotiate 10 years on these, but it can be anything you are comfortable with. The rent amount will be set. From there you agree on a price to buy the property for sometime during the lease term. The price is typically locked in close to today’s value. You then sublease the property, hopefully for more than your rent payment, and wait for the value to increase. If the value does not increase, which has happened to me, you can either re-negotiate the deal or let the property go. You have no obligation to buy, so you are not taking the risk of market fluctuation. If and when the value does increase you have several options: You can sell your option, exercise your option and resell the house for your profit, or just exercise the option and keep the property in your portfolio.
Bridge Loans: The idea here is to find a property that needs a lot of work that will make a good rental. You need to negotiate a price were you can buy it, fix it, and roll in all closing costs, and still be at or below 70% of the after repaired value (ARV). This does not work well unless the property needs to be repaired. This is very different than the first two strategies discussed, and is commonly used with bank owned foreclosures. Although, anytime you can negotiate a great deal will work.
After you purchase the home, you want to get it repaired and get a tenant in place as quickly as possible. You then refinance the loan into your permanent rental property loan. There are some additional details for this to work that are beyond the scope of this article.
Partners: At the time the market was collapsing around me, there were tremendous buying opportunities everywhere. Using the Bridge loan strategy, I was able to pick up a handful of deals that I still have today. I did not qualify for loans, so I brought in a partner to sign on the debt for me, and I shared the deal with him 50/50. Neither one of us put money down, and the properties all cash flow, net of vacancies and maintenance, a minimum of $300 a month. There has also been a tremendous amount of appreciation over the years. The houses have more than doubled in value!
No matter what your strategy in real estate, partners can help you reach your potential. They can provide anything that you are lacking to get deals closed. I have a great deal of respect for partnerships because I think they are necessary, but I also think they can be the worst decision ever made.
Dwelling at a desirable region that is properly equipped with all the facilities required is one of the most searched about factors. Unfortunately, sluggish monetary status in and around the world seems to be real restrain in such circumstances. With prices of properties going higher and unavailability of the same, aforesaid wish list often remains incomplete.
Eventually, the owners of construction projects are getting affected too. After all, gathering proper and potential consumers for their residential or any other genre of edifice creation is getting blocked. In the due course, ventures getting closed are a common factor too. No wonder, with the help of proficient construction management services, these perplexities are getting fulfilled and today its efficacies can also be found in the field of affordable housing management system.
Low to moderate income holders are often found struggling while deciding on the most profitable property investment for abiding onto the same. Thankfully, with the help of affordable housing system, all those problematic facets got removed to some extent.
Business owners in this construction industry are well aware about the competitions and other complications that are related with the development of such housing pattern. That is the reason why, they are impeccably depending on above mentioned service solutions. After all, architects, economists, legal experts and various other honchos associated with such service providers are highly experienced and knowledgeable. Eventually, planning the execution process of such affordable projects becomes truly lucrative for owners and at the same-time for its end-users.
Reducing and hence removing all the day to day perplexities associated with a construction project are something that management recourses mentioned above are reputed for. Such aids are also favoured for the immense capability to streamline the entire execution process and hence, at the end of certain projects, earning desirable revenue and goodwill of potential consumers can be gathered by owners.
Needless to state, such felicitating properties can’t be gained single handled by project heads. Moreover, it is nothing new that professional assistance is of paramount help for any sorts of business process. In case of building and construction, such aid is of equal importance. Nevertheless, when the matters are related with affordable housing, incepting such guidance and assistance is always a profitable deal to opt for.
No matter how much unique a project is and what are the complexities attached, with the help of deft and favourable management services, even affordable housing process gets dignified and lucrative. There are many more too. Like:
- By adopting such sorts of management services, getting linked with strong administering principles are assured
- Risk removal also gets finely done if one gets to hire such sorts of expertise supervising system
- Robust planning of the execution process that ascertains profitable return at the end is achievable too
- Financial management and professional auditing of monetary details is an essential part for any business process which is also executed finely
- Advisories and consultations delivered by experts associated with such service solutions process can be immensely profitable
- Recognising the prospect and doing things accordingly is of vital importance for construction industry that gets fulfilled with it, etc.
There is no wrong in stating that these are just a few among array of other beneficial facets that one gets to gather on hiring such sorts of administering services. Actually, construction and building processes are accustomed with numerous unavoidable critical issues. Resolving all those facets often becomes essential for achieving the business goals and securing a dominating place in this industry. This is of no need to state that all those facets also gets properly accomplished with the help of deft counsels accustomed with such sorts of service providers. However not only for affordable housing, one can also seek such industrious assistance for:
- Legitimate maintenance of audits and compliances of construction projects
- Administering the entire project for assuring desirable returns
- Dealing with any sorts of contractual disputes that in a way makes the execution process more smoothed and profitable
Understanding any sorts of service process is only possible by getting adhered with the same. Things are same for management services responsible in administering affordable housing. Hence, other than going haywire and perplexed about how to complete a project in a most gainful way, settling with such assistance is a diligent deal.
Buying a house is a major financial decision that will not only give you a peace of mind, but also a wonderful place to live, and of course, the perfect location to start a family for those who are planning to settle down. Sooner or later, you will have to decide to settle down on your own home that will be considered as the best location to start a family.
That being said, it is important to greatly consider the factors that will affect your everyday living experience. The following tips will help to get your search of to the right start. While it is important to note the number of rooms, the size of the yard and the layout of the kitchen, there are several important things you need to consider before making an offer.
Avoid trying to time the market
– Trying to time the market when you are planning to purchase is impossible. Considering whether the market drops low or gets too high will only prolong and possibly make you lose your chance of owning your perfect house of choice. The best time is when you find the best one that you can afford. The real estate market is cyclical, and waiting for the perfect time will only make you miss out on an opportunity.
– Proximity to essential establishments and the surrounding people can give great impact in your living environment. You can overlook a couple of imperfections in a home if you love the neighborhood and neighbors. As most would say, three of the most important factors in buying a home is location, location, location. When choosing, you need to consider its proximity to your work and other essential establishments, environment or the neighborhood, and public transportation.
– Of course, you will need to check everything out inside the house. When you have finally narrowed down your list of choices, it’s time to hire a home inspector. It may cost a little but in the long run, it will end up saving you thousands. This will help you gain the best information regarding the new home so that you can make the best decision as to whether or not take it.
– One important thing to note: when buying a home, you can easily replace furniture, and other things inside however, you can never change the location. This is why it is important to also check the situational factors. Is the location suitable for kids, pets and gardening? Do the neighbor’s window look directly to your home? Has the driveway elevation properly installed for safe access to the property?
A while back at an event I got the opportunity to sit across from a couple of brand new investors. As I usually do, I asked them what they were investing in; they admitted that they were newbies and weren’t really sure where to begin. We discussed their level of knowledge and expertise, and I found the conversation drifting away from real estate and more into the lifestyle design arenas. I started asking them about their “Big Why” – why were they wanting to leave their corporate jobs, what they wanted to do with their time, and what would make them happy.
We started putting a dollar value to that lifestyle and level of comfort. I saw their eyes get a bit wide as the reality of what they were up against hit them. I quickly reassured them that real estate was a great choice to attain the lifestyle they envisioned if they were willing to work hard and put in the hours, but how? We didn’t get into too much detail on the spot, but we talked about breaking those big goals down into time frames and smaller milestones. We discussed assigning how many and what type of deals could get them to those milestones, as well as what were they comfortable doing and how their personalities would help them to achieve their goal. They made notes on what types of marketing and how many offers they would have to make each month, week, and day in order to acquire the number of properties to hit their goals.
We then went back to their “Big Why” and discussed if it was really big enough. By that, I meant to talk to them about whether their choice to pursue real estate would be big enough to get them up and out of bed every day? Big enough to push them to tackle that daily task list? Big enough to hit those smaller goals knowing that as each milestone is hit that they are that much closer to the lifestyle and freedom they want? They made some more notes, and I think they had some talking points to consider as they pursue their real estate vision.
So what is your “Big Why”? Why are you a real estate investor? Is it big enough to get you out of bed each morning with a smile on your face, ready to face the day? Is it big enough to motivate you after 3 months of busting your butt without finding the right deal? This isn’t something you can come up with overnight if you haven’t spent any time on it already, so let your mind wander. Dream big! Dream really big and write it down. Look at it every day and see yourself living that lifestyle. Then break down how you will get there. Get really specific, all the way down to daily tasks. Now you’ve put goals and milestones on paper and you have created a map showing you how to get to that big dream and lifestyle you desire.
To be honest, this isn’t easy. The dreaming part of this puzzle may be easier than identifying the “Why”, especially when you analyze and determine if your “Why” is a solid vision to which you can remain dedicated. Nevertheless, I promise, if you work hard to identify the “Why”, develop your vision, and stay focused, you will be set up to achieve the vision you set for yourself.
The valuation steps applied to create a supported conclusion of a defined value based on an analysis of applicable general and specific data. Assessment in creating an opinion of real estate value follows specific sets of processes that reflect 3 different methods. These include:
– Cost Method
– Direct Comparison Method
– Income Approach Method
One or more of these methods can be used in the assessment of real estate valuation. The methods to be used will rely almost entirely on the type of property being assessed or appraised; however may also factor in the use of the appraisal, the scope of work involved, and the data availability for the analysis.
The cost approach to assessment and appraisal is established by understanding the construction methodologies and property attributes related to cost. The cost approach is estimated by adding the cost of land to the current cost of construction related to all improvement on land, and subtracting depreciation in all improvements on the land. The construction costs of buildings would include a reproduction cost or a replacement cost of the same or similar like materials or systems. This approach works best when it used for the assessment of new or newer properties that are not frequently exchanged in the market. The actual costs are usually derived from cost estimator software, cost manuals, builders, and contractors. Note: The land would remain a separate value when using the cost approach.
Direct Comparison Approach
The direct comparison method to assessment of real estate is most useful when there is a large number of similar like properties that have recently transacted on the market or are currently listed on the market. Using this method, the assessment would come from identifying the subject with similar properties, called comparables (or comps). The sale prices that most identify with the subject would have a heavier weight on the value, oppose to one that is further from the subject characteristics. Most of the time the comparables would create a range of value, upon which; opinion must be used to find an exact value. Several elements or factors are used to qualify the degree of similarity between comparables and the subject. This would include: real property rights, financial terms, property conditions of the sale, post sale expenditures, location, market factors, physical characteristics, economic characteristics, use/zoning, non-real estate components of sale (chattels, fixtures). After the best comparables are set, a dollar figure or percentage is applied to the sale price of each property to estimate the hypothetical value of the subject. For instance comparable A has 1 more bathroom than the subject; therefore subtract $9000 from the comparable to hypothetically get the sale to reflect the same characteristic as the subject.
The income method to the assessment of real estate would be from an analysis of present value of the future benefits of property ownership. A property’s income and resale worth upon return may be capitalized into a current, lump-sum amount. There are two methods of the income approach; one is direct capitalization and the other yield capitalization. Direct capitalization is the relation between one year’s income and worth indicated by either a capitalization rate or an income multiplier. Yield capitalization is the relationship between several years of stabilized income and worth at the end of a specified period reflected in a yield rate. The most commonly used yield capitalization method would be the discounted cash flow analysis.
You know things are starting to get dicey out there when even a multimillion-dollar penthouse in Manhattan can’t sell.
It seems a developer in SoHo, having just recently finished primary construction for his high-rise condo tower, realized the project’s focal point – a $45 million, 8,400-square-foot penthouse – was just a bit too much.
“The air is very thin up there in that buyer pool,” was the way the builder, Kevin Maloney, put it to Bloomberg.
You’ll love the Solomon-esque solution Maloney came up with.
The penthouse has a wonderfully grandiose name: the Summit of SoHo.
Sure, it has its own indoor pool. And yes, it has 23-foot living room ceilings. Plus, it has not one but two private elevators. One goes to the lobby; the other is so you don’t have to take the stairs to the penthouse’s upper levels (for entertaining, a spa and a rooftop kitchen and grill).
But the stock market cracked hard at the start of the year, with the S&P 500 down 11% at its lowest point in 2016, while Hong Kong’s Hang Seng dropped roughly 17%. In recent months, Chinese real estate buyers pulled a disappearing act from realtor offices all around the U.S. And after years of ultra low interest rates and easy lending policies, there’s now an excess of iconic luxury living quarters on the island of Manhattan.
The developer’s solution? Chop his project’s expansive space into two smaller penthouses – an $11 million, 3,000-square-foot unit (though at that size, it hardly seems big enough for one’s collection of bespoke suits), and a second, 5,400-square-foot unit for a comparatively cheap $29.5 million.
I’ll keep an eye on it and let you know if either gets a sale or not.
Red Hot Real Estate No More
These days, even the bond rating agencies, ever late to calling the turns in any market, are jumping on board…
Fitch Ratings noted last month that home prices in San Francisco have “risen to a level unsupportable by area income.” According to Fitch, that makes the local market overvalued by around 16% – which probably means that you’d need to double that figure to estimate a true “fair value” for this once white-hot luxury market.
Just in the last few days, the National Association of Realtors noted weakening demand among foreign buyers, blaming a strong dollar and rising U.S. home prices for pushing U.S. real estate beyond the bounds of affordability even for rich foreigners.
The crash of China’s Shanghai Composite stock index (down nearly 22% just since the start of 2016 with nary a bounce) forced many of the country’s wealthy elites to pull back on their property purchases. You can see the impact in regional news headlines around the country:
In San Francisco: “At High End, SF’s Housing Market Finally Cooling Off.”
From The Boston Globe: “High-end housing market cooling off.”
In Fort Lauderdale: “South Florida condo market cooling off.”
Will it get worse for premium real estate? I think we’re still in the early innings.
Uncle Sam’s War on Cash (Property Buyers)
The story didn’t get much media play back in January, but that’s when the U.S. Treasury Department and its Financial Crimes Enforcement Network (FinCEN) announced the issuance of “Geographic Targeting Orders” for New York City and Miami.
The “GTOs,” according to FinCEN’s press release, require “certain U.S. title insurance companies to identify the natural persons behind companies used to pay ‘all cash’ for high-end residential real estate.”
Basically, the folks at the Treasury are worried whether corrupt foreign officials or “transnational criminals” might be laundering piles of dirty money through these multimillion-dollar property purchases.
Or is Uncle Sam just worried about the flood of Chinese cash into the American real estate market? “All cash” is practically a synonym for rich Chinese property buyers.
At least, that used to be the case. As we’ve seen in the “cooling off” headlines around the country, the absence of this class of real estate purchaser is starting to be felt in markets around the country.
An article in The New York Times late last year really brings the impact of Chinese property buyers into focus. When it comes to purchasing a home in America, they pay an average price of $831,000 – nearly double what international buyers from India ($460,000), Britain ($455,000) and Canada ($380,000) pay for their homes in the U.S.
In coming quarters, I believe the FinCEN “targeting orders” will likely spell the end of the property-speculation craze among Chinese buyers. The government action may only be limited to New York City and Miami, but it will have a deep chilling effect everywhere. After all, it only takes another press release from FinCEN to announce an expansion into other American cities of its inquiry into the identities of those big-money, anonymous all-cash property buyers.
The trend will take time, with the data trickling onto economists’ spreadsheets. But as Chinese elites continue to pull back from American real estate, well, get ready for a “Wile E. Coyote” moment in high-end luxury home prices – and more pressure on the Federal Reserve to reverse its stance on interest rates.
Nothing is as fickle as real estate. Housing prices may rise or fall for any number of reasons. Although they can make investing in your own property a bit of a risk, with a little bit of knowledge the informed shopper can easily make the best decision possible when looking at homes for sale.
Simply put, a buyer’s market is a result of the economic principle of supply and demand. In this case, there are more properties in supply (i.e. for sale) than there is a demand for them, meaning that those looking to invest in real estate have a lot of options to choose from. Supply and demand fluctuate depending on how many new customers enter an area and how many homeowners in the region have decided to stay in their properties.
In these circumstances, there are plentiful homes for sale, which favors those interested in investing in residential property. The geographic region and price ranges are favorable and the cost to purchase is relatively low. If housing in an area tends to take more than six months to sell, then it is considered a buyer’s market. You can easily find how many days a property has been listed on various real estate sites.
In a seller’s market, it is harder to find homes for sale. The supply is low in comparison to the demand to purchase property. Prices are typically a little higher and houses don’t tend to stay listed for as long a period of time.
When this occurs, there are a limited number of options. Buyers will have less opportunity to negotiate-because sellers can entertain other offers-and as a result, will pay more than they would in a buyer’s market. Sellers can increase their prices and, as long as the homes appraise for the asking price, receive more than they otherwise could.
What Stimulates the Change
As with everything, housing properties will fluctuate between shortage and surplus. While there is no clear determination on how long the current stage will last, there are several factors that can impact the supply and demand of homes for sale in your area. Things like interest rates, consumer confidence, and economic conditions have a high impact. A growing regional economy coupled with low-interest rates and high confidence can lead more people to buy houses.
However, just because more people are buying doesn’t mean there are also more people selling. Supply tends to lag behind demand in real estate. While you may think that low rates and good economic growth would spur a buyer’s market, it is actually more favorable to sellers. That is because there are more parties competing for a limited number of houses.
When the economy slows down, or interest rates increase, demand diminishes. When that happens, homes for sale will stay listed for longer periods of time. With more real estate options available, qualified purchasers have better chances of finding good deals on housing in their areas. Buyers can often negotiate with the seller on a much lower price than what the seller had originally intended.