Using Cap Rates in Real Estate Investing
by Tom Wheelwright
If you are new to real estate, you are probably wondering about some of the terms you have heard at your real estate investment group or seen on the Internet. Understanding these terms is important to successful real estate investing. One of these terms is "Cap Rate." Cap Rate is short for Capitalization Rate. Effectively, the Cap Rate is the rate of return provided, prior to financing, by the cash flow of an investment property.
The equation to determine the Cap Rate (CR) of a property looks like this:
NOI/FMV = CR, where NOI is net operating income from the property and FMV is the fair market value of the property.
Let me give you a simple example.
Suppose you purchase a property for $500,000. And suppose your net operating income, after operating expenses but before any interest, principle or depreciation, is $50,000. Your Cap Rate is 10%, i.e., 50,000/500,000.
Now, this is your Cap Rate because you know what you paid for the property and you know its cash flow. But, what about the Market Cap Rate? The Market Cap Rate is the average Cap Rate that an investor in a specific market expects for a certain type of property.
You may wonder, "What is the significance of the Market Cap Rate for my property?" Well, values go down as Market Cap Rates go up. Conversely, as market cap rates go down, values go up. We can see this simply by restating the formula as follows:
NOI/CR = FMV
Let's take a look at our example when the Market Cap Rate changes.
Suppose the Market Cap Rate for your property goes from 10% to 7%. What does that mean for the value of your property? To find out, simply divide your net operating income (NOI) by the Cap Rate. So, 50,000/.07 = $714,000. Your property's value went from $500,000 to over $700,000 through no effort of yours, but simply because the Cap Rate went down.
Conversely, suppose the Market Cap Rate goes from 10% to 12%. What does that mean for the value of your property on the open market? Again, simply divide the NOI by the Cap Rate. So, $50,000/.12 = $417,000 So, the value of your property has decreased because the Market Cap Rate has increased.
What causes the Market Cap Rate (MCR) to change? It's simply a matter of supply and demand. The more demand for investment property, the lower the MCR. The lower the demand for investment property, the higher the MCR.
So what should the Cap Rate of a property mean to you?
A Cap Rate should tell you two things. The first is how leverage will affect your investment. As long as your Cap Rate is higher than your borrowing cost (interest rate), then you should borrow as much as possible with respect to the acquisition and/or holding of that property. However, if your Cap Rate is less than your borrowing cost, then you should either pay cash for the property or find a different property to buy.
You should also monitor your property Cap Rates to help you determine when you should sell. You should probably sell the property if the Cap Rate falls below your borrowing cost. Why? Because in opportunity cost, you are losing money. Here is an example:
Let's say you purchased your property for $500,000 when the Market Cap Rate was 10%. And let's say your mortgage is at 7%. Now, suppose the MCR goes to 5%. What should you do? You should probably sell the property.
At this point, the property is worth $1,000,000. Let's say you want to maximize your Velocity of Money, so you refinance to a total of $800,000. Your NOI is still $50,000. But you are paying 7% on your money. So now, your interest is $56,000 but your income is only $50,000 so you have negative cash flow of $6,000. With the MCR below your borrowing cost, borrowing out the equity puts you in a negative cash flow position. Instead, you should look at the advantages of selling the property and purchasing a new property with a higher Cap Rate.
Of course, there are some things you can do to increase the value without regard to the Cap Rate. Your value will increase any time you increase your NOI. If you can make changes to your property to increase the rent or to decrease expenses, you will increase the value of your property even if your Cap Rate stays the same.
But any time your cap rate gets lower than your borrowing rate, you should consider selling the property. Many people in Phoenix and California got caught in this trap in the mid-2000's. Cap rates were at an all time low; some as low as 3-4%. These same people lost many of their properties to foreclosure because they could not make the negative cash flow payments.
So pay attention to the Cap Rate in your market for your investments. If Cap Rates are low, it may be time to sell. If Cap Rates are high, it may be a great time to buy more property in your market. A good real estate broker can give you a pretty good idea of the cap rate for your property.
วันจันทร์ที่ 31 ธันวาคม พ.ศ. 2550
Business Opportunity and Real Estate Investment Advantages
Business Opportunity and Real Estate Investment Advantages
by Stephen Bush
A recent sampling of investment advice suggests substantial rationale to evaluate business opportunity and commercial real estate investing. An important financial attraction is the ability to exclude commercial property from the commercial loan process. Another key incentive to explore business financing options is the ability to finance a commercial mortgage or business loan with income produced by the commercial property or business.
The recent negative investment climate for residential real estate investment property has provided investors with new reasons to explore investing in business opportunity and business finance options. We will offer some candid advice about commercial mortgage and business financing as well as an overview about the importance of evaluating business and commercial investment property purchase possibilities.
Business Finance - Investing in Unique Businesses and Special Purpose Properties
Commercial real estate and business opportunity choices include special purpose situations such as funeral homes and golf courses. The unique characteristics of such business investment options translate to enhanced possibilities to differentiate a commercial business and provide added value.
Of course specialized business real estate investing does require special purpose business finance solutions such as golf course financing and funeral home financing. A critical requirement for business investment success is the ability to acquire a business loan that is appropriate for both the business and business owner.
Buy a Business with an SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The option to use SBA financing (Small Business Administration loan) provides a business loan choice not available for residential real estate investing. This form of business financing is available to new business owners and can prove to be instrumental in purchasing a business opportunity or commercial real estate investment.
Business Opportunity Financing Without Real Estate Investment Property
Purchasing a business opportunity does not involve commercial real estate. The lack of a commercial mortgage can be an advantage if real estate values are decreasing because business value is dictated primarily by the business income rather than the real estate.
Business Loan - Commercial Investment Value Driven Primarily by Income
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business loan will require an appraisal evaluating business income, usually over several years.
Commercial Loan Precautions - Business Financing Problems to Avoid
Just as there are unique and substantial positive benefits associated with buying a business or commercial real estate investment property, there are also a number of special business loan and commercial mortgage problems to avoid when arranging business financing. It is especially relevant for residential real estate investors to realize that there are more than 20 key differences between residential and commercial investment finance options. There is a critical commercial loan difficulty to anticipate with each difference.
by Stephen Bush
A recent sampling of investment advice suggests substantial rationale to evaluate business opportunity and commercial real estate investing. An important financial attraction is the ability to exclude commercial property from the commercial loan process. Another key incentive to explore business financing options is the ability to finance a commercial mortgage or business loan with income produced by the commercial property or business.
The recent negative investment climate for residential real estate investment property has provided investors with new reasons to explore investing in business opportunity and business finance options. We will offer some candid advice about commercial mortgage and business financing as well as an overview about the importance of evaluating business and commercial investment property purchase possibilities.
Business Finance - Investing in Unique Businesses and Special Purpose Properties
Commercial real estate and business opportunity choices include special purpose situations such as funeral homes and golf courses. The unique characteristics of such business investment options translate to enhanced possibilities to differentiate a commercial business and provide added value.
Of course specialized business real estate investing does require special purpose business finance solutions such as golf course financing and funeral home financing. A critical requirement for business investment success is the ability to acquire a business loan that is appropriate for both the business and business owner.
Buy a Business with an SBA Loan for a Commercial Mortgage and Business Opportunity Finance
The option to use SBA financing (Small Business Administration loan) provides a business loan choice not available for residential real estate investing. This form of business financing is available to new business owners and can prove to be instrumental in purchasing a business opportunity or commercial real estate investment.
Business Opportunity Financing Without Real Estate Investment Property
Purchasing a business opportunity does not involve commercial real estate. The lack of a commercial mortgage can be an advantage if real estate values are decreasing because business value is dictated primarily by the business income rather than the real estate.
Business Loan - Commercial Investment Value Driven Primarily by Income
In comparison to residential real estate investment property value depending primarily on location, commercial real estate and business value is primarily determined by business income. This results in less sensitivity to local real estate property value trends. A business loan will require an appraisal evaluating business income, usually over several years.
Commercial Loan Precautions - Business Financing Problems to Avoid
Just as there are unique and substantial positive benefits associated with buying a business or commercial real estate investment property, there are also a number of special business loan and commercial mortgage problems to avoid when arranging business financing. It is especially relevant for residential real estate investors to realize that there are more than 20 key differences between residential and commercial investment finance options. There is a critical commercial loan difficulty to anticipate with each difference.
Utah Real Estate Search and Information
Utah Real Estate Search and Information
by Adam Evans
Pre-Qualify Should I Pre-Qualify First?
Pre-Qualifying is simply one of the first steps to buying a home. It costs you (the applicant) nothing and it gives the future buyer a good starting ground. Pre-Qualifying allows the buyer to know how much they can spend before ever spending time looking at homes.
It is especially beneficial because it can usually help a buyer uncover any credit problems that they may not have been aware of.
I would like to Pre-Qualify Now
Realtors How can a Realtor help?
Times have obviously changed in the Real Estate business. With the continuous advances of the internet more buyers tend to surf the web for homes and narrow down their choices before ever working with a realtor. Most people do not like to be tied down to a realtor especially if they don't already have a personal relationship with them.
Before I talk about how beneficial a realtor can be, allow me to address the issue of Buyer-Broker Agreements. This form is a very common agreement that is used by most realtors. The intention is a very honest one. In short, brokers/agents agree to help a client if the client agrees to only buy with them. It is a way to ensure that both parties are treated fairly. Unfortunately, it is not unheard of for this form to be abused. Occasionally, some realtors will have their clients sign these agreements with alarmingly long expiration dates. This is how buyers get tied down to using one realtor, whether they like the job that they're doing.
At Wright Brothers Real Estate, we believe that the clients and realtors should have a relationship that is based on trust and respect for each other. Generally a client will not be asked to sign any agreements until it is time to actually make an offer on a home. If for any reason the contract on the house falls through before closing, the client is released from their agreement and can either continue to work with us or find another agent. We believe that if the client does not want to work with us at any time, then we have not done our job correctly and they should be allowed to pursue other options.
Working with a realtor can be a very beneficial resource when looking for a home. While all buyers have access to a surplus of internet sites which list homes on the MLS (Multiple Listing Service), a realtor can access additional data that is not usually accessible. Also, agents have the capability of performing more detailed searches than the average website. Hotsheets
What Are Hotsheets?
Through a program that the MLS offers, Realtors are able to set up buyers with hotsheets that will send them information about a home as soon as it is listed according to their search criteria. For example, if a client were looking for homes near a golf course in the Salt Lake Area, a hotsheet would send them the info by email at the time of day that the client desires.
One reminder about working with an agent is that it costs the buyer nothing. The seller is the one that offers a commission to the agent that brings them a willing buyer. So why not use an agent?
Can I Afford a Home?
The potential buyer is obviously the best (or most important) judge of whether buying a home is right for them. While there are many benefits to getting away from renting, it is important to know if it is the right time to buy. Personal circumstances will always play a key role.
The only information I can share is the financial. Typically, a debt to income ratio of at least 50% is prefered as a minimum. So if a family's income is $3,500 a month, they would preferably have to pay less than $1,750 each month including their future home payments).
The best way to know what you can afford is by getting pre-qualified for a loan. This costs nothing and does not mean you have to get a loan.
Closing Costs What Are Closing Costs?
Closing costs at this point can only be loosely estimated. While they can be a bit costly, it is also possible to negotate with the seller to have them pay a portion of the costs. To get some idea as to what is involved in closing fees, I have listed a few good sites below.
visit: Closing Fee Calculator Wikipedia Closing Cost Info Mortgage-x.com
Commissions
Often, in Utah, the commision paid is about 6% by the seller at the time of closing. 3% goes to the listing agent and another 3% goes to the buyers agent (you are "offering" this percent to the agent that brings a buyer.) This is the reason why it costs the buyer nothing to use an agent. These rates are not set in stone. Which is one of the reasons that you see flat fee brokerages.
I would be glad to answer any questions that you have. please feel free to call me.
Adam Evans 801-680-7530 cobian77@yahoo.com
by Adam Evans
Pre-Qualify Should I Pre-Qualify First?
Pre-Qualifying is simply one of the first steps to buying a home. It costs you (the applicant) nothing and it gives the future buyer a good starting ground. Pre-Qualifying allows the buyer to know how much they can spend before ever spending time looking at homes.
It is especially beneficial because it can usually help a buyer uncover any credit problems that they may not have been aware of.
I would like to Pre-Qualify Now
Realtors How can a Realtor help?
Times have obviously changed in the Real Estate business. With the continuous advances of the internet more buyers tend to surf the web for homes and narrow down their choices before ever working with a realtor. Most people do not like to be tied down to a realtor especially if they don't already have a personal relationship with them.
Before I talk about how beneficial a realtor can be, allow me to address the issue of Buyer-Broker Agreements. This form is a very common agreement that is used by most realtors. The intention is a very honest one. In short, brokers/agents agree to help a client if the client agrees to only buy with them. It is a way to ensure that both parties are treated fairly. Unfortunately, it is not unheard of for this form to be abused. Occasionally, some realtors will have their clients sign these agreements with alarmingly long expiration dates. This is how buyers get tied down to using one realtor, whether they like the job that they're doing.
At Wright Brothers Real Estate, we believe that the clients and realtors should have a relationship that is based on trust and respect for each other. Generally a client will not be asked to sign any agreements until it is time to actually make an offer on a home. If for any reason the contract on the house falls through before closing, the client is released from their agreement and can either continue to work with us or find another agent. We believe that if the client does not want to work with us at any time, then we have not done our job correctly and they should be allowed to pursue other options.
Working with a realtor can be a very beneficial resource when looking for a home. While all buyers have access to a surplus of internet sites which list homes on the MLS (Multiple Listing Service), a realtor can access additional data that is not usually accessible. Also, agents have the capability of performing more detailed searches than the average website. Hotsheets
What Are Hotsheets?
Through a program that the MLS offers, Realtors are able to set up buyers with hotsheets that will send them information about a home as soon as it is listed according to their search criteria. For example, if a client were looking for homes near a golf course in the Salt Lake Area, a hotsheet would send them the info by email at the time of day that the client desires.
One reminder about working with an agent is that it costs the buyer nothing. The seller is the one that offers a commission to the agent that brings them a willing buyer. So why not use an agent?
Can I Afford a Home?
The potential buyer is obviously the best (or most important) judge of whether buying a home is right for them. While there are many benefits to getting away from renting, it is important to know if it is the right time to buy. Personal circumstances will always play a key role.
The only information I can share is the financial. Typically, a debt to income ratio of at least 50% is prefered as a minimum. So if a family's income is $3,500 a month, they would preferably have to pay less than $1,750 each month including their future home payments).
The best way to know what you can afford is by getting pre-qualified for a loan. This costs nothing and does not mean you have to get a loan.
Closing Costs What Are Closing Costs?
Closing costs at this point can only be loosely estimated. While they can be a bit costly, it is also possible to negotate with the seller to have them pay a portion of the costs. To get some idea as to what is involved in closing fees, I have listed a few good sites below.
visit: Closing Fee Calculator Wikipedia Closing Cost Info Mortgage-x.com
Commissions
Often, in Utah, the commision paid is about 6% by the seller at the time of closing. 3% goes to the listing agent and another 3% goes to the buyers agent (you are "offering" this percent to the agent that brings a buyer.) This is the reason why it costs the buyer nothing to use an agent. These rates are not set in stone. Which is one of the reasons that you see flat fee brokerages.
I would be glad to answer any questions that you have. please feel free to call me.
Adam Evans 801-680-7530 cobian77@yahoo.com
Pembroke Pines Real Estate - Rapid Growth
Pembroke Pines Real Estate - Rapid Growth
by Hector Lesende
Located in the Southern Broward County 15 miles from downtown Miami and Fort Lauderdale is the city of Pembroke Pines. Geographically, the city is located at 26°0′46″N, 80°18′49″W and is bound by Hollywood to the north and east, Miramar to the south and Everglades to the west. The city has an area of about 35 miles square and is considered to be among the largest cities in Broward County. In terms of land area, it is the largest city.
The place first came into notice in 1960 when it was incorporated. It is situated along the Pembroke Road which is lined with numerous pine trees and takes its name from there. After Hurricane Andrew took place in 1992, Pembroke Pines expanded rapidly as thousands of residents of the Miami-Dade County area shifted here.
The population of the city of Pembroke Pines was more than 150,000 around a decade ago and now the area is growing faster than ever. The Broward County Public schools district serves the area of Pembroke Pines. There are a number of public elementary and middle schools operating in the area with two famous high schools, Charles W. Flanagan High School and Everglades High School forming a part of the education system. The Florida International University has a campus in Pembroke Pines and so has the Broward Community College. The first language of the area is English followed by Spanish, French, Portuguese, Italian and Yiddish. Pembroke Pines has a good transportation system with car, auto and boat transport being the most popular modes for the locals. The US interstate highway is close by and this also promotes the transportation network.
Economically, the city has a bright future to look forward to. Its geographic location ensures that any new business will flourish here. Even the existing businesses can increase their sales promptly. The Fort Lauderdale/Hollywood International Airport is close by, making the area more viable for business deals. There is a huge market for none-durable goods in Pembroke Pines and among durable goods the market is good for machinery, equipment and other supplies. In the retail trade area, automotive industry plays a major revenue generator. Pembroke Pines enjoys an excellent year round warm weather with temperatures in the mid eighties.
Pembroke Pines Real Estate is coming back. A flourishing economy in the area has helped the real estate market to grow. Property types in Pembroke Pines include single family homes, townhouses, condos, commercial real estate and land. Average price of real estate is $387,000 and as high as $800,000 in some area. Some outstanding communities Pembroke Pines include Durango Estates, Grand Palms, Breakers Estates, Chapel Trail, Victoria Lakes and Panache. The market for real estate is extremely stable here and allows people to experiment with other options. The growth of commercial real estate in the area is an indicator of the fact that businesses will rapidly grow in this city. The number of foreclosures has double in recent months and there are plenty of investment opportunities in the area for real estate investors and also for owner-occupants. Pembroke Pines Real Estate will remain strong in 2008.
by Hector Lesende
Located in the Southern Broward County 15 miles from downtown Miami and Fort Lauderdale is the city of Pembroke Pines. Geographically, the city is located at 26°0′46″N, 80°18′49″W and is bound by Hollywood to the north and east, Miramar to the south and Everglades to the west. The city has an area of about 35 miles square and is considered to be among the largest cities in Broward County. In terms of land area, it is the largest city.
The place first came into notice in 1960 when it was incorporated. It is situated along the Pembroke Road which is lined with numerous pine trees and takes its name from there. After Hurricane Andrew took place in 1992, Pembroke Pines expanded rapidly as thousands of residents of the Miami-Dade County area shifted here.
The population of the city of Pembroke Pines was more than 150,000 around a decade ago and now the area is growing faster than ever. The Broward County Public schools district serves the area of Pembroke Pines. There are a number of public elementary and middle schools operating in the area with two famous high schools, Charles W. Flanagan High School and Everglades High School forming a part of the education system. The Florida International University has a campus in Pembroke Pines and so has the Broward Community College. The first language of the area is English followed by Spanish, French, Portuguese, Italian and Yiddish. Pembroke Pines has a good transportation system with car, auto and boat transport being the most popular modes for the locals. The US interstate highway is close by and this also promotes the transportation network.
Economically, the city has a bright future to look forward to. Its geographic location ensures that any new business will flourish here. Even the existing businesses can increase their sales promptly. The Fort Lauderdale/Hollywood International Airport is close by, making the area more viable for business deals. There is a huge market for none-durable goods in Pembroke Pines and among durable goods the market is good for machinery, equipment and other supplies. In the retail trade area, automotive industry plays a major revenue generator. Pembroke Pines enjoys an excellent year round warm weather with temperatures in the mid eighties.
Pembroke Pines Real Estate is coming back. A flourishing economy in the area has helped the real estate market to grow. Property types in Pembroke Pines include single family homes, townhouses, condos, commercial real estate and land. Average price of real estate is $387,000 and as high as $800,000 in some area. Some outstanding communities Pembroke Pines include Durango Estates, Grand Palms, Breakers Estates, Chapel Trail, Victoria Lakes and Panache. The market for real estate is extremely stable here and allows people to experiment with other options. The growth of commercial real estate in the area is an indicator of the fact that businesses will rapidly grow in this city. The number of foreclosures has double in recent months and there are plenty of investment opportunities in the area for real estate investors and also for owner-occupants. Pembroke Pines Real Estate will remain strong in 2008.
วันเสาร์ที่ 29 ธันวาคม พ.ศ. 2550
Real Estate Tool Examples
Real Estate Tool Examples
by Matt Way
In the past, I've talked about some specific real estate tools that agents might consider providing for their site visitors. Some of the tools I discussed were as follows:
Real Estate Search Tools
Slide Shows
Mortgage Calculators
Maps
Each of these tools can be implemented in different ways and used for various aspects of helping your site visitors. Lets look at a couple of examples and see how the implementation of these tools can vary.
Real Estate Listing Search
The first tool I want to delve into is the search tool. As I mentioned in the previous post, a search tool can be implemented in a variety of ways. We'll examine two.
One way to implement listing searches is through what is called an "iframe". Here is an example of a listing page of Branson condos from a property management company in my area. While this page is a rather simple example of searching data, it definitely shows why I prefer the data push or "feed" method if it is available. Because this information is not coming from a database that the site owner controls, the only way to search the data is through the tool provided by the interface on the originating site. In this example, the only way to adjust the data is to select a sort order. Granted, the results only occupy three pages, so in this case it really isn't a major hindrance to the visitor. But what if this were a listings database for homes in a specific area? How would you filter out the cabins, or say, all brick exteriors? Definitely something to think about. How about if you wanted to eliminate the searching all-together and just show a page of properties that are lake front without requiring the visitor to click anything after they land on the page? Thankfully, there are multiple ways of providing information to your site visitors.
The other way to implement data searches for your visitors is through a data push or feed, as mentioned in the previous post, this allows you, the agent, to store the data in your own database and present it in ways that you feel are relevant to your particular site visitor. This is not available in all areas, so you may not have this opportunity available to you. However, I personally think this opportunity will continue to open up for others considering, the vast availability of listing databases like Google Base which has over 30,000 properties just for the state of Missouri alone.
With a data push, you have flexibility to present the information in various ways. Here is an example of a search tool by a Branson real estate firm using this method. This search form allows the visitor to filter out all kinds of information. Information that the user may not want to sift through. Since data providers must keep search tools appealing to a wide audience, it is not feasible for them to provide as many search operations in a generic tool because not every agent targets the same group. So, the basic search tool works nicely for more people, but not perfectly for each individual.
Does that mean that it is easier for the user? Not necessarily. Apparently, the firm mentioned in the previous paragraph realized that there are many visitors that might be interested in only lake properties and would like to see them without having to filter out unrelated properties. This is evident by their creating a page just for lake homes in Branson. This page has all the filtering done and the visitor can just browse the listings without having to revise the search or click parameters to set limits.
If the site owner chose to, they could split the lake homes page up into numerous pages showing homes on the lake in varying price ranges. They might have a page of lake homes that range from $150,000 to $250,000 and then another page showing only $251,000 to $500,000 and so on. All of this is with the user in mind, the idea is make it easy for the visitor to find what they want to find.
Mapping Properties
Let's say I am a looking for a new home because I am relocating to say, Missouri and I want something that is in a neighborhood. I don''t want something out in the middle of nowhere because I prefer the atmosphere of having neighbors close by. Well, I would need to be able to see where any property of interest is located without having to go to the location or have someone else go there and take photos and email them or whatever other method might work. Personally, I would just go to a real estate website utilizing property mapping technology to locate and view the homes there. Is it really a big help? Well, what about a site using Google maps? When I visit a page on a website like that, I can Immediately see if that property is in a neighborhood. The mapping doesn't have to stop there. What if you, the agent wanted to show each of your listings on a map? It could be done. The visitor, just clicks a house icon and the address pops up or they go to a details page with all the information and a contact button.
I hope this post was helpful. I wanted to show a couple of ways to creatively help your site visitors. I also wanted to highlight some big advantages to going with custom designs and having a programmer maintaining your website. With a knowledgeable professional helping you and consistently improving the functionality of your site, I feel you will be in a better position to assist your clients. The bottom line is, never stop trying to make your site more user-friendly and work to build your site for your specific market, not necessarily the masses.
by Matt Way
In the past, I've talked about some specific real estate tools that agents might consider providing for their site visitors. Some of the tools I discussed were as follows:
Real Estate Search Tools
Slide Shows
Mortgage Calculators
Maps
Each of these tools can be implemented in different ways and used for various aspects of helping your site visitors. Lets look at a couple of examples and see how the implementation of these tools can vary.
Real Estate Listing Search
The first tool I want to delve into is the search tool. As I mentioned in the previous post, a search tool can be implemented in a variety of ways. We'll examine two.
One way to implement listing searches is through what is called an "iframe". Here is an example of a listing page of Branson condos from a property management company in my area. While this page is a rather simple example of searching data, it definitely shows why I prefer the data push or "feed" method if it is available. Because this information is not coming from a database that the site owner controls, the only way to search the data is through the tool provided by the interface on the originating site. In this example, the only way to adjust the data is to select a sort order. Granted, the results only occupy three pages, so in this case it really isn't a major hindrance to the visitor. But what if this were a listings database for homes in a specific area? How would you filter out the cabins, or say, all brick exteriors? Definitely something to think about. How about if you wanted to eliminate the searching all-together and just show a page of properties that are lake front without requiring the visitor to click anything after they land on the page? Thankfully, there are multiple ways of providing information to your site visitors.
The other way to implement data searches for your visitors is through a data push or feed, as mentioned in the previous post, this allows you, the agent, to store the data in your own database and present it in ways that you feel are relevant to your particular site visitor. This is not available in all areas, so you may not have this opportunity available to you. However, I personally think this opportunity will continue to open up for others considering, the vast availability of listing databases like Google Base which has over 30,000 properties just for the state of Missouri alone.
With a data push, you have flexibility to present the information in various ways. Here is an example of a search tool by a Branson real estate firm using this method. This search form allows the visitor to filter out all kinds of information. Information that the user may not want to sift through. Since data providers must keep search tools appealing to a wide audience, it is not feasible for them to provide as many search operations in a generic tool because not every agent targets the same group. So, the basic search tool works nicely for more people, but not perfectly for each individual.
Does that mean that it is easier for the user? Not necessarily. Apparently, the firm mentioned in the previous paragraph realized that there are many visitors that might be interested in only lake properties and would like to see them without having to filter out unrelated properties. This is evident by their creating a page just for lake homes in Branson. This page has all the filtering done and the visitor can just browse the listings without having to revise the search or click parameters to set limits.
If the site owner chose to, they could split the lake homes page up into numerous pages showing homes on the lake in varying price ranges. They might have a page of lake homes that range from $150,000 to $250,000 and then another page showing only $251,000 to $500,000 and so on. All of this is with the user in mind, the idea is make it easy for the visitor to find what they want to find.
Mapping Properties
Let's say I am a looking for a new home because I am relocating to say, Missouri and I want something that is in a neighborhood. I don''t want something out in the middle of nowhere because I prefer the atmosphere of having neighbors close by. Well, I would need to be able to see where any property of interest is located without having to go to the location or have someone else go there and take photos and email them or whatever other method might work. Personally, I would just go to a real estate website utilizing property mapping technology to locate and view the homes there. Is it really a big help? Well, what about a site using Google maps? When I visit a page on a website like that, I can Immediately see if that property is in a neighborhood. The mapping doesn't have to stop there. What if you, the agent wanted to show each of your listings on a map? It could be done. The visitor, just clicks a house icon and the address pops up or they go to a details page with all the information and a contact button.
I hope this post was helpful. I wanted to show a couple of ways to creatively help your site visitors. I also wanted to highlight some big advantages to going with custom designs and having a programmer maintaining your website. With a knowledgeable professional helping you and consistently improving the functionality of your site, I feel you will be in a better position to assist your clients. The bottom line is, never stop trying to make your site more user-friendly and work to build your site for your specific market, not necessarily the masses.
Chicago Real Estate Auction by Hoffman Estates
Chicago Real Estate Auction by Hoffman Estates
by Robert Riles
"Hoffman Estates is conducting a Chicago Real Estate Auction of up to 150 properties. The properties include both new construction and resale homes and willing be sold through auctions".
That headline is a sure indication that auction as a tool to sell properties is here to stay. According to Holland Home Auctions, nearly 150 properties which are quality built homes in preferred settings. This is very unlike the usual auctions where the houses are usually foreclosed or distress sale houses in undesirable locations.
With bids starting at as low as 50% of the actual real estate price. It is an ideal way to get away from all the fine print and the clutter of discounts offered by various builders. According to Hoffman Estates, all the properties are well crafted, attractive new homes that includes a full warranty. Properties include single family residences, town homes and condominiums within the city as well as the suburbs.
Auction attendees and potential bidders can also inspect the auction properties by scheduling a private appointment with Hoffman Estates.
"We encourage all prospective bidders to bring along a professional home inspector and thoroughly check out any of the homes included in our real estate auction," said Holland, who added that a variety of financing programs provided by the auction company's preferred lender are available to those who qualify. "Upon closer inspection, I think you're going to be surprised by the quality, construction integrity, craftsmanship, amenities, curb appeal and location of these properties."
"This real estate auction adds up to an outstanding value and an unbeatable opportunity for house hunters looking to capitalize on a strong buyer's market," Holland said. "These homes have been specially selected by Holland Home Auctions. Why waste time driving around to communities in search of the right home, or deal with aggressive realtors when you can join us on November 10 and bid on a fantastic below-market priced property at Holland Home Auctions' first real estate auction." Some of the conditions for the Chicago Real Estate Auctions for prospective bidders are as follows
1.Pre-register for the event by either phone or online. Registration is free.
2.A certified cashiers cheque for 5000 dollars made payable to themselves, which will be used as a EMD in event of winning the auction.
3.The remainder EMD(10%) must be delivered prior to close of escrow
4.Buyer's premium of 5% of high bid will be added to all final accepted bids
5.There is also an option of getting pre-approved through preferred lenders. Upon qualification, you will have the option to put less than ten percent down and still bid on a home, plus your five percent buyer's premium will be reduced to four percent (4%) of the high bid price if you use the preferred lender.
6.All residences are sold as "as-is, where-is " basis. The Nov. 10 Chicago Real estate Auction will be conducted at The Stonegate Conference and Banquet facility, located at 2401 W. Higgins Rd. (near the Barrington Road I-90 interchange) in Hoffman Estates. For more details on the auction, including terms and conditions, visit our website or call (877) 499-5478.
by Robert Riles
"Hoffman Estates is conducting a Chicago Real Estate Auction of up to 150 properties. The properties include both new construction and resale homes and willing be sold through auctions".
That headline is a sure indication that auction as a tool to sell properties is here to stay. According to Holland Home Auctions, nearly 150 properties which are quality built homes in preferred settings. This is very unlike the usual auctions where the houses are usually foreclosed or distress sale houses in undesirable locations.
With bids starting at as low as 50% of the actual real estate price. It is an ideal way to get away from all the fine print and the clutter of discounts offered by various builders. According to Hoffman Estates, all the properties are well crafted, attractive new homes that includes a full warranty. Properties include single family residences, town homes and condominiums within the city as well as the suburbs.
Auction attendees and potential bidders can also inspect the auction properties by scheduling a private appointment with Hoffman Estates.
"We encourage all prospective bidders to bring along a professional home inspector and thoroughly check out any of the homes included in our real estate auction," said Holland, who added that a variety of financing programs provided by the auction company's preferred lender are available to those who qualify. "Upon closer inspection, I think you're going to be surprised by the quality, construction integrity, craftsmanship, amenities, curb appeal and location of these properties."
"This real estate auction adds up to an outstanding value and an unbeatable opportunity for house hunters looking to capitalize on a strong buyer's market," Holland said. "These homes have been specially selected by Holland Home Auctions. Why waste time driving around to communities in search of the right home, or deal with aggressive realtors when you can join us on November 10 and bid on a fantastic below-market priced property at Holland Home Auctions' first real estate auction." Some of the conditions for the Chicago Real Estate Auctions for prospective bidders are as follows
1.Pre-register for the event by either phone or online. Registration is free.
2.A certified cashiers cheque for 5000 dollars made payable to themselves, which will be used as a EMD in event of winning the auction.
3.The remainder EMD(10%) must be delivered prior to close of escrow
4.Buyer's premium of 5% of high bid will be added to all final accepted bids
5.There is also an option of getting pre-approved through preferred lenders. Upon qualification, you will have the option to put less than ten percent down and still bid on a home, plus your five percent buyer's premium will be reduced to four percent (4%) of the high bid price if you use the preferred lender.
6.All residences are sold as "as-is, where-is " basis. The Nov. 10 Chicago Real estate Auction will be conducted at The Stonegate Conference and Banquet facility, located at 2401 W. Higgins Rd. (near the Barrington Road I-90 interchange) in Hoffman Estates. For more details on the auction, including terms and conditions, visit our website or call (877) 499-5478.
Serious Real Estate Investors Need to Build Resource Lists
Serious Real Estate Investors Need to Build Resource Lists
by Judson Voss
You may have heard that one of the best ways to make yourself truly wealthy is to become a private real estate investor. While it is true that the millionaire real estate investor does exist in every state in the nation, it can also be a difficult way to begin to build up your own personal fortune. There are more books written and sold each year, on how to become a real estate investor, than on many other topics in business and self-employment. The main reason that the real estate investors get singled out is because their money tends to come in either; large immediate chunks, or as passive income over a long period of time. And as investment strategies go, both of these options can be great.
One of the most important parts of becoming a private real estate investor is the process of networking and building resource lists of professionals such as lenders, bankers, seller's agents, buyer's agents, real estate investor agents, carpenters, plumbers, etc... who you can call on to help make your transactions run more smoothly and who can answer any questions which you might have from time to time.
Nothing is more important to your business than making good contacts in the lending industry. Whether you work with banks, direct lenders, or mortgage brokers, you need to have lenders available to work hassle-free with you to help finance your deals.
One of the best things you can do if you will be looking to expand into other geographic areas with your real estate investment business, is to find other real estate investors already working in that particular area, generally those who simply rehabilitate the properties to flip or hold as rentals. Finding them is as simple as placing an ad in the local newspaper and screening out the callers who are looking to work with you rather than purchase a home from you.
Once you have some potential joint venture partners for your real estate investment business, then it is time to partner with some of those other investors when it is appropriate for both of you to do so. You can even ask your new partners to do much of the legwork there in their own area, and for their compensation they will be paid out of the escrow from the deal. If you are able to find other quality professionals to work with, then you really can have a win-win relationship working together.
It is also always a good idea to network with all of the real estate agents in the areas which you will be investing in property. Every private real estate investor should have realtors out in the field who will let them know about available property " even those not yet listed in the MLS. Once a realtor knows what you are looking for, and what kind of deals you prefer, they will call you when they know about a property which you might be interested in.
One of the most important tools for professional real estate investors is to build up lists of people you can partner with to help get the work you need done. By having lists of people you trust and can work with when you need to, you can be ahead of everyone else in your area.
by Judson Voss
You may have heard that one of the best ways to make yourself truly wealthy is to become a private real estate investor. While it is true that the millionaire real estate investor does exist in every state in the nation, it can also be a difficult way to begin to build up your own personal fortune. There are more books written and sold each year, on how to become a real estate investor, than on many other topics in business and self-employment. The main reason that the real estate investors get singled out is because their money tends to come in either; large immediate chunks, or as passive income over a long period of time. And as investment strategies go, both of these options can be great.
One of the most important parts of becoming a private real estate investor is the process of networking and building resource lists of professionals such as lenders, bankers, seller's agents, buyer's agents, real estate investor agents, carpenters, plumbers, etc... who you can call on to help make your transactions run more smoothly and who can answer any questions which you might have from time to time.
Nothing is more important to your business than making good contacts in the lending industry. Whether you work with banks, direct lenders, or mortgage brokers, you need to have lenders available to work hassle-free with you to help finance your deals.
One of the best things you can do if you will be looking to expand into other geographic areas with your real estate investment business, is to find other real estate investors already working in that particular area, generally those who simply rehabilitate the properties to flip or hold as rentals. Finding them is as simple as placing an ad in the local newspaper and screening out the callers who are looking to work with you rather than purchase a home from you.
Once you have some potential joint venture partners for your real estate investment business, then it is time to partner with some of those other investors when it is appropriate for both of you to do so. You can even ask your new partners to do much of the legwork there in their own area, and for their compensation they will be paid out of the escrow from the deal. If you are able to find other quality professionals to work with, then you really can have a win-win relationship working together.
It is also always a good idea to network with all of the real estate agents in the areas which you will be investing in property. Every private real estate investor should have realtors out in the field who will let them know about available property " even those not yet listed in the MLS. Once a realtor knows what you are looking for, and what kind of deals you prefer, they will call you when they know about a property which you might be interested in.
One of the most important tools for professional real estate investors is to build up lists of people you can partner with to help get the work you need done. By having lists of people you trust and can work with when you need to, you can be ahead of everyone else in your area.
The Problem of Greed in Real Estate Investing
The Problem of Greed in Real Estate Investing
by Judson Voss
We live in a world that offers temptations at every turn. It is easy to ruin a great thing as the result of greed. However, if you are careful from the beginning you can establish your real estate investment business in a manner that encourages and even rewards altruism rather than breeding an environment that is ripe for greed to take hold.
The problem with real estate is that in order to get the really good deals we sometimes have to be a little unfeeling'. That doesn't mean that you can't be compassionate or identify with the feelings of those selling their homes, particularly if they are at risk of losing their homes and/or any equity they may have had in their homes. At the same time you must harden your heart to some degree in order to get the best value for your money. This isn't to say that you should ever forget that there are real people on the other side of those numbers who have not only a financial investment in their homes (when you are making a purchase) but also an emotional attachment that price tags can never match.
Of course we want to make as much money as possible from our real estate investments but we also need to be able to look ourselves in the eye the next morning when we face the mirror. Deal honestly with people and while it could cost you a few extra dollars of profit on the front end it will return itself in spades over time as you gain a reputation for handling people with respect and having integrity in a business that is increasingly filled with sharks.
There are a few other areas where greed can cost you big however. Those most often come when it's time to sell or rent a home. If you have ever flipped a house you know what a monumental task that can be. If not, be forewarned this is not a task for the faint hearted. However, you need to seriously consider the offers you are turning down before you turn them down. Can you really afford to wait for a better offer? Carrying costs are expensive and the longer a house sits on the market the harder it seems to sell. For this reason you need to really thing long and hard before holding out for more money�"especially if there is already a profit involved and you are just holding out for a bigger profit.
If you make money on a deal and learn a lesson in the process, then you've had a successful flip. However, if you hold onto the property in hopes of a bigger pay off it could sit empty for months or even years. In other words, greed can lose every ounce of profit on a property and place you in a negative cash flow situation. This is one place you do not want to be when investing in real estate, especially when it could have been so easily avoided. Don't take a loss on a property and try to recover some compensation for your time and effort, but don't allow greed to place a price tag on a property that the local market cannot recoup.
Rather than allowing greed to light your path when it comes to asking and selling prices it might be a wise plan to hire a professional realtor to give you a reality check as you go. Keeping things in perspective and not charging according to your personal, and often emotional investment in the property in question.
by Judson Voss
We live in a world that offers temptations at every turn. It is easy to ruin a great thing as the result of greed. However, if you are careful from the beginning you can establish your real estate investment business in a manner that encourages and even rewards altruism rather than breeding an environment that is ripe for greed to take hold.
The problem with real estate is that in order to get the really good deals we sometimes have to be a little unfeeling'. That doesn't mean that you can't be compassionate or identify with the feelings of those selling their homes, particularly if they are at risk of losing their homes and/or any equity they may have had in their homes. At the same time you must harden your heart to some degree in order to get the best value for your money. This isn't to say that you should ever forget that there are real people on the other side of those numbers who have not only a financial investment in their homes (when you are making a purchase) but also an emotional attachment that price tags can never match.
Of course we want to make as much money as possible from our real estate investments but we also need to be able to look ourselves in the eye the next morning when we face the mirror. Deal honestly with people and while it could cost you a few extra dollars of profit on the front end it will return itself in spades over time as you gain a reputation for handling people with respect and having integrity in a business that is increasingly filled with sharks.
There are a few other areas where greed can cost you big however. Those most often come when it's time to sell or rent a home. If you have ever flipped a house you know what a monumental task that can be. If not, be forewarned this is not a task for the faint hearted. However, you need to seriously consider the offers you are turning down before you turn them down. Can you really afford to wait for a better offer? Carrying costs are expensive and the longer a house sits on the market the harder it seems to sell. For this reason you need to really thing long and hard before holding out for more money�"especially if there is already a profit involved and you are just holding out for a bigger profit.
If you make money on a deal and learn a lesson in the process, then you've had a successful flip. However, if you hold onto the property in hopes of a bigger pay off it could sit empty for months or even years. In other words, greed can lose every ounce of profit on a property and place you in a negative cash flow situation. This is one place you do not want to be when investing in real estate, especially when it could have been so easily avoided. Don't take a loss on a property and try to recover some compensation for your time and effort, but don't allow greed to place a price tag on a property that the local market cannot recoup.
Rather than allowing greed to light your path when it comes to asking and selling prices it might be a wise plan to hire a professional realtor to give you a reality check as you go. Keeping things in perspective and not charging according to your personal, and often emotional investment in the property in question.
Hollywood Real Estate - Diamond of the Gold Coast
Hollywood Real Estate - Diamond of the Gold Coast
by Hector Lesende
Hollywood, Florida might share its name with the famous Hollywood, California, but it is no way less illustrious than its well known cousin. Tucked away in the Southern tip of Florida, the city of Hollywood is on of the top ten largest cities in the state of Florida. This city is spread over an area of about eighty square kilometers and is home to approximately one hundred and fifty thousand residents. This city, also known as the Diamond of the Gold Coast, has over ten kilometers of pristine Atlantic beaches. Various fresh water bodies cover about ten square kilometers of inland area.
The city is relatively young, having being founded in 1925. However, the decades of 50s and 60s witnessed strong growth rates in economy as well as population. As of the year 2000, the city was home to real estate property valued at more than a massive six billion dollars.
As of the last census, the city population of about one hundred and fifty thousand was spread over approximately thirty five thousand families housed in sixty thousand households. A back of the envelop calculation tells us that the population density of this city is touching 2000 per square kilometer. With about 70,000 housing units spread over eight square kilometers, the real estate density turns out to be just more than 950 housing units per square kilometer.
The population consists of primarily English speaking whites- about 78 percent of the population are Whites, and for about 67% of the entire population, English is the First language. Other important minority groups in this city include Spanish speaking citizens (a touch more than 20%) and African Americans (about 12% of the entire population). The city has a vibrant social life, and that perhaps stems from that fact that the city population is relatively young. As much as 60% of the population is less than 45 years old, and the median age of the population of the city of Hollywood, Florida is 39 years.
Hollywood scores fairly high on the infrastructure matrix. The city is served by the 23rd busiest airport in US, the Fort Lauderdale-Hollywood International Airport. The city is also home to a large number of public elementary, middle and high schools. All these factors make Hollywood a great city to live in. The economy of this city is fairly vibrant. If you have been planning to relocate to Hollywood, you will be in good company. The population of this city has grown fairly fast between 2000 and 2005, and this growth is largely attributed to the steady flow of immigrants from other regions. With its salubrious weather, vibrant civic life, low cost of living and a relatively low crime rate.
Hollywood Real Estate is precious and elegant. There are now 4,000 homes and condos for sale in Hollywood. Median price of a home in this city is about $347,000 dollars and some are priced over $3,000,000 dollars. Foreclosed properties are at an all time high as the banks readjust their adjustable rates and end a real estate boom that lasted for about three years. The no money down and 1 percent teaser rates deals are gone and so are many of the homes that were financed in this manner. Savvy investors are buying selected properties in Hollywood. The Hollywood real estate market is still thriving and will continue to grow in coming years.
by Hector Lesende
Hollywood, Florida might share its name with the famous Hollywood, California, but it is no way less illustrious than its well known cousin. Tucked away in the Southern tip of Florida, the city of Hollywood is on of the top ten largest cities in the state of Florida. This city is spread over an area of about eighty square kilometers and is home to approximately one hundred and fifty thousand residents. This city, also known as the Diamond of the Gold Coast, has over ten kilometers of pristine Atlantic beaches. Various fresh water bodies cover about ten square kilometers of inland area.
The city is relatively young, having being founded in 1925. However, the decades of 50s and 60s witnessed strong growth rates in economy as well as population. As of the year 2000, the city was home to real estate property valued at more than a massive six billion dollars.
As of the last census, the city population of about one hundred and fifty thousand was spread over approximately thirty five thousand families housed in sixty thousand households. A back of the envelop calculation tells us that the population density of this city is touching 2000 per square kilometer. With about 70,000 housing units spread over eight square kilometers, the real estate density turns out to be just more than 950 housing units per square kilometer.
The population consists of primarily English speaking whites- about 78 percent of the population are Whites, and for about 67% of the entire population, English is the First language. Other important minority groups in this city include Spanish speaking citizens (a touch more than 20%) and African Americans (about 12% of the entire population). The city has a vibrant social life, and that perhaps stems from that fact that the city population is relatively young. As much as 60% of the population is less than 45 years old, and the median age of the population of the city of Hollywood, Florida is 39 years.
Hollywood scores fairly high on the infrastructure matrix. The city is served by the 23rd busiest airport in US, the Fort Lauderdale-Hollywood International Airport. The city is also home to a large number of public elementary, middle and high schools. All these factors make Hollywood a great city to live in. The economy of this city is fairly vibrant. If you have been planning to relocate to Hollywood, you will be in good company. The population of this city has grown fairly fast between 2000 and 2005, and this growth is largely attributed to the steady flow of immigrants from other regions. With its salubrious weather, vibrant civic life, low cost of living and a relatively low crime rate.
Hollywood Real Estate is precious and elegant. There are now 4,000 homes and condos for sale in Hollywood. Median price of a home in this city is about $347,000 dollars and some are priced over $3,000,000 dollars. Foreclosed properties are at an all time high as the banks readjust their adjustable rates and end a real estate boom that lasted for about three years. The no money down and 1 percent teaser rates deals are gone and so are many of the homes that were financed in this manner. Savvy investors are buying selected properties in Hollywood. The Hollywood real estate market is still thriving and will continue to grow in coming years.
วันเสาร์ที่ 22 ธันวาคม พ.ศ. 2550
Northern Virginia Real Estate: Pricing Your Home
Northern Virginia Real Estate: Pricing Your Home
For anyone who is preparing to sell a home in the Arlington VA real estate market or the Springfield VA real estate market be aware of current conditions in the market to make certain that you come up with a good asking price. With the ever changing real estate market, including in Arlington and Springfield, it is ever important that a real estate professional familiar with your area, in this case Northern Virginia, be consulted.
Any real estate agent worth their salt will be fully aware of the Northern Virginia housing market. They should know which houses are selling and which aren't as well as what the economic factors are that could positively or negatively impact a sale. Anything that creates noise, traffic, or congestion could help or hurt a sale. Your agent can help you understand the economic situations in Northern Virginia and how these considerations may impact the sale price of your home.
Pricing your home correctly is important. If your home does not sell in a reasonable amount of time, you should have a meeting with your real estate agent to discuss the possibility that your home is priced too high. Your real estate agent will also have heard from other agents who may have made comments on your home's positives and negatives.
Pricing a home is the biggest and most important step of any real estate marketing process. Everyone wants to get as much money as they can for their home, but if you price the home too high you will push away buyers that could be qualified. Any agent will tell you what the selling price of homes that compare to yours is. Your pricing strategy should depend on whether or not you are in a buyer or a sellers market and any economic issues that the Northern VA market is experiencing.
Setting an attractive price is an important factor to attract buyers when you are selling your home. Making your property physically attractive is also important and you should consider if repairs are required, does the house have visual appeal and making it look generally interesting. Getting the initial interest from price may be easy but keeping the buyers interested through the long sales process can be harder to do. Just because they show interest doesn't mean that they are going to buy - you need to keep them interested in your home.
For the final details of any home inspection, make sure you have a trusted and reliable agent handling the transaction. A good agent can prove the difference between a successful transaction and one that fails. The buyer usually gets the financing, so the appraiser has to agree with your your sale price.
For anyone who is preparing to sell a home in the Arlington VA real estate market or the Springfield VA real estate market be aware of current conditions in the market to make certain that you come up with a good asking price. With the ever changing real estate market, including in Arlington and Springfield, it is ever important that a real estate professional familiar with your area, in this case Northern Virginia, be consulted.
Any real estate agent worth their salt will be fully aware of the Northern Virginia housing market. They should know which houses are selling and which aren't as well as what the economic factors are that could positively or negatively impact a sale. Anything that creates noise, traffic, or congestion could help or hurt a sale. Your agent can help you understand the economic situations in Northern Virginia and how these considerations may impact the sale price of your home.
Pricing your home correctly is important. If your home does not sell in a reasonable amount of time, you should have a meeting with your real estate agent to discuss the possibility that your home is priced too high. Your real estate agent will also have heard from other agents who may have made comments on your home's positives and negatives.
Pricing a home is the biggest and most important step of any real estate marketing process. Everyone wants to get as much money as they can for their home, but if you price the home too high you will push away buyers that could be qualified. Any agent will tell you what the selling price of homes that compare to yours is. Your pricing strategy should depend on whether or not you are in a buyer or a sellers market and any economic issues that the Northern VA market is experiencing.
Setting an attractive price is an important factor to attract buyers when you are selling your home. Making your property physically attractive is also important and you should consider if repairs are required, does the house have visual appeal and making it look generally interesting. Getting the initial interest from price may be easy but keeping the buyers interested through the long sales process can be harder to do. Just because they show interest doesn't mean that they are going to buy - you need to keep them interested in your home.
For the final details of any home inspection, make sure you have a trusted and reliable agent handling the transaction. A good agent can prove the difference between a successful transaction and one that fails. The buyer usually gets the financing, so the appraiser has to agree with your your sale price.
Real Estate Agents In Chicago: How To Find One
Real Estate Agents In Chicago: How To Find One
by Mark Shellby
Doing business with real estate agents in New York, Tokyo, Dubai, London, Shanghai and any other big city is a big money business - making money is their sole goal and they are very talented at doing just that. Oddly enough what is engaging them as an increasingly important role is the large gap between supply and demand. Low amounts of prime real estate verses the flourishing economies and highly paid professionals has spurred a growth in interest.
Real estate agents provide a service for both the buyer and the seller at the same time. How does this work? Well, real estate agents assist the buyer by showing him properties that meet the criteria he wants and by helping him negotiate an acceptable price for the property when he is ready to buy. Meanwhile, real estate agents assist the seller by bringing in possible buyers to view his property and ensuring the seller gets a fair price when selling. A good real estate agent will make win-win deals, thus becoming an integral part of the property market.
If you are working in any big metropolis like Chicago, and you have the right resources at your disposal; you would certainly want to invest in Chicago real estate such as a new house. Such an investment ensures that you beat inflation through price escalation of property and at the same time affords you the opportunity to live in a better apartment in a better location.
A good place to find steady and able real estate agents in major metropolitan cities is real estate specific websites. Also, performing background checks on any agents you may consider using is essential. In a perfect circumstance, you would want to be in contact with many agents so you are shown a bigger variety of property. It also guarantees you a good deal because you can compare agents to each other.
It is also important to know the laws governing real estate in the locations you are looking at before judging the offerings of real estate agents. You would be better off reading the laws before paying any fees to agents, because sometimes they can mislead you and promise things they cannot offer due to legal issues. This prevents you from being scammed by manipulative or unknowledgeable agents who offer things they cannot give.
Remember that your chances of securing a good real estate deal gets enhanced by employing the services of real estate agents, subject to your smartness in dealing with them and your ability to sieve through their talk. A real estate agent is a help not the doer behind any good real estate deal.
by Mark Shellby
Doing business with real estate agents in New York, Tokyo, Dubai, London, Shanghai and any other big city is a big money business - making money is their sole goal and they are very talented at doing just that. Oddly enough what is engaging them as an increasingly important role is the large gap between supply and demand. Low amounts of prime real estate verses the flourishing economies and highly paid professionals has spurred a growth in interest.
Real estate agents provide a service for both the buyer and the seller at the same time. How does this work? Well, real estate agents assist the buyer by showing him properties that meet the criteria he wants and by helping him negotiate an acceptable price for the property when he is ready to buy. Meanwhile, real estate agents assist the seller by bringing in possible buyers to view his property and ensuring the seller gets a fair price when selling. A good real estate agent will make win-win deals, thus becoming an integral part of the property market.
If you are working in any big metropolis like Chicago, and you have the right resources at your disposal; you would certainly want to invest in Chicago real estate such as a new house. Such an investment ensures that you beat inflation through price escalation of property and at the same time affords you the opportunity to live in a better apartment in a better location.
A good place to find steady and able real estate agents in major metropolitan cities is real estate specific websites. Also, performing background checks on any agents you may consider using is essential. In a perfect circumstance, you would want to be in contact with many agents so you are shown a bigger variety of property. It also guarantees you a good deal because you can compare agents to each other.
It is also important to know the laws governing real estate in the locations you are looking at before judging the offerings of real estate agents. You would be better off reading the laws before paying any fees to agents, because sometimes they can mislead you and promise things they cannot offer due to legal issues. This prevents you from being scammed by manipulative or unknowledgeable agents who offer things they cannot give.
Remember that your chances of securing a good real estate deal gets enhanced by employing the services of real estate agents, subject to your smartness in dealing with them and your ability to sieve through their talk. A real estate agent is a help not the doer behind any good real estate deal.
Understanding a Real Estate Short Sale
Understanding a Real Estate Short Sale
by Judson Voss
With the high rise in foreclosures these days, even those who do not invest in real estate are starting to hear the term real estate short sale or mortgage short sale. A simple definition of a short sale of real estate is an investor or buyer making a deal with the primary mortgage holder to accept less than the amount due on a mortgage; rather than the lender taking over the property through the foreclosure process and then ultimately loosing money on the property by selling it at a foreclosure auction.
Once a property goes into foreclosure the lender passes along the file they have on the property over to their loss mitigation department. It is the loss mitigator's job to deal with the foreclosure and help the lender to retain as much money from the deal as possible. While the loss mitigation department may not act like they want to conduct a mortgage short sale, the truth of the matter is that generally they loose less money that way than having to auction off the property on the courthouse steps.
Dealing with a loss mitigator can be very challenging, especially to new real estate investors. The best advice I can give you is to try and always remember that it is in the loss mitigator's best interest to ultimately deal with you. While they may act like they are not interested in negotiating with you, they are from the first time you reach out and contact them. For those who will not deal with you, there really is nothing you can do but go find another deal to make and leave that one on the table. There is nothing you can ultimately do about it and you are much better off finding other deals which will make you money.
Many real estate investors ask what is a reasonable offer to make to a lender for a mortgage short sale? Generally the rule of thumb is about 80% of the current mortgage balance on the property. But, the absolute rule is that you should never offer more money than you want to have into the property, and never more than you think the property is worth to work with and either sell or rent out. By making a reasonable short sale offer, and treating loss mitigators well, you can generally close a deal with a mortgage short sale to your benefit.
by Judson Voss
With the high rise in foreclosures these days, even those who do not invest in real estate are starting to hear the term real estate short sale or mortgage short sale. A simple definition of a short sale of real estate is an investor or buyer making a deal with the primary mortgage holder to accept less than the amount due on a mortgage; rather than the lender taking over the property through the foreclosure process and then ultimately loosing money on the property by selling it at a foreclosure auction.
Once a property goes into foreclosure the lender passes along the file they have on the property over to their loss mitigation department. It is the loss mitigator's job to deal with the foreclosure and help the lender to retain as much money from the deal as possible. While the loss mitigation department may not act like they want to conduct a mortgage short sale, the truth of the matter is that generally they loose less money that way than having to auction off the property on the courthouse steps.
Dealing with a loss mitigator can be very challenging, especially to new real estate investors. The best advice I can give you is to try and always remember that it is in the loss mitigator's best interest to ultimately deal with you. While they may act like they are not interested in negotiating with you, they are from the first time you reach out and contact them. For those who will not deal with you, there really is nothing you can do but go find another deal to make and leave that one on the table. There is nothing you can ultimately do about it and you are much better off finding other deals which will make you money.
Many real estate investors ask what is a reasonable offer to make to a lender for a mortgage short sale? Generally the rule of thumb is about 80% of the current mortgage balance on the property. But, the absolute rule is that you should never offer more money than you want to have into the property, and never more than you think the property is worth to work with and either sell or rent out. By making a reasonable short sale offer, and treating loss mitigators well, you can generally close a deal with a mortgage short sale to your benefit.
Using a Lease Option to Your Advantage as a Real Estate Investor
Using a Lease Option to Your Advantage as a Real Estate Investor
by Judson Voss
As the sub-prime lending mess is unfolding currently here in the United States, people are loosing their homes to foreclosure at record levels. Where are all these people going to live? The quick answer is that they will most likely become renters. However, a couple years down the road when the market has adjusted and interest rates drop again, many will look to purchase another home to live in. And, one of the best ways they can do it is through a lease option purchase.
A lease option purchase is one where you as the property owner find a high-quality, long-term tenant who is interested in the right to purchase your home down the road in a couple years. Maybe today the tenant is strapped for cash, has bad credit, etc… but in just a couple years they will be able to qualify for traditional financing. In this case when they want to buy, lease option is a good option for them to consider.
When you set up your lease option purchase contract it is essential that you believe that the tenant will be able to obtain the necessary financing in the time specified in the contract. Morally, you should not lease option to someone who you do not think will ever actually purchase the home. While you may make some money on the deal, you will only be hurting their lives and not helping them out at all.
In a lease option purchase, you can stipulate that the tenant is responsible for any repairs and changes to the property during the time they live there, in exchange for a higher credit each month towards their down payment on your property. This removes you from being the “landlord†and places you in a position where each month you simply have to cash their check as a mortgage holder would. And, at the same time, you are giving someone a chance to own a home in the near future which they simply cannot purchase at the present time.
If you are in a lease option deal and the tenant is unable to obtain financing at the end of the contract and moves out, you retain full ownership of your property and owe them nothing. This places you with a choice of doing another lease option, putting the property for sale, or simply renting it out. What you ultimately choose to do should be up to you and what the market shows you to do at the time.
by Judson Voss
As the sub-prime lending mess is unfolding currently here in the United States, people are loosing their homes to foreclosure at record levels. Where are all these people going to live? The quick answer is that they will most likely become renters. However, a couple years down the road when the market has adjusted and interest rates drop again, many will look to purchase another home to live in. And, one of the best ways they can do it is through a lease option purchase.
A lease option purchase is one where you as the property owner find a high-quality, long-term tenant who is interested in the right to purchase your home down the road in a couple years. Maybe today the tenant is strapped for cash, has bad credit, etc… but in just a couple years they will be able to qualify for traditional financing. In this case when they want to buy, lease option is a good option for them to consider.
When you set up your lease option purchase contract it is essential that you believe that the tenant will be able to obtain the necessary financing in the time specified in the contract. Morally, you should not lease option to someone who you do not think will ever actually purchase the home. While you may make some money on the deal, you will only be hurting their lives and not helping them out at all.
In a lease option purchase, you can stipulate that the tenant is responsible for any repairs and changes to the property during the time they live there, in exchange for a higher credit each month towards their down payment on your property. This removes you from being the “landlord†and places you in a position where each month you simply have to cash their check as a mortgage holder would. And, at the same time, you are giving someone a chance to own a home in the near future which they simply cannot purchase at the present time.
If you are in a lease option deal and the tenant is unable to obtain financing at the end of the contract and moves out, you retain full ownership of your property and owe them nothing. This places you with a choice of doing another lease option, putting the property for sale, or simply renting it out. What you ultimately choose to do should be up to you and what the market shows you to do at the time.
Wholesale Real Estate in a Down Market
Wholesale Real Estate in a Down Market
by Judson Voss
ust as with selling any other product in the world, real estate is bought and sold at wholesale prices each and every day. Real estate wholesale buying generally happens between two real estate investors. One investor finds the property and then sells it to another investor who is interested in rehabilitation of the property for sale or as a long-term rental. In this process the first investor generally never really takes possession of the property and makes money only on the transaction itself.
People often wonder about real estate wholesale buying and selling in a down real estate market. Is it a good time to do it? Is it a bad time to do it? The answer is that in order to buy real estate wholesale you need to be able to put together a good, solid wholesale real estate deal. If you can put the wholesale real estate deal together, then you can do wholesale real estate business in any real estate market up or down.
Have you ever talked to a struggling stock investor and they told you that the market was bad and it was not a good time to invest in it? Think about that for a moment. Isn't the smart thing to purchase stocks while they are at a low price, and then later sell them at a higher one? Real estate investment really is the same thing. When the market is down or bad is one of the best times to purchase real estate to hold on to for a while, rent out, and make some serious cash on over time.
Don't get me wrong, real estate wholesale buying deals are not usually simple or easy. However, with a good group of professionals on your side, you can make a lot of money in the wholesale real estate market.
The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head. The sad truth is that many people use a down market as an excuse not to do business. You really should learn to ignore the naysayers, not use an up or down market as your crutch not to do deals, and buy real estate wholesale whenever the deal is right for your investment strategy.
by Judson Voss
ust as with selling any other product in the world, real estate is bought and sold at wholesale prices each and every day. Real estate wholesale buying generally happens between two real estate investors. One investor finds the property and then sells it to another investor who is interested in rehabilitation of the property for sale or as a long-term rental. In this process the first investor generally never really takes possession of the property and makes money only on the transaction itself.
People often wonder about real estate wholesale buying and selling in a down real estate market. Is it a good time to do it? Is it a bad time to do it? The answer is that in order to buy real estate wholesale you need to be able to put together a good, solid wholesale real estate deal. If you can put the wholesale real estate deal together, then you can do wholesale real estate business in any real estate market up or down.
Have you ever talked to a struggling stock investor and they told you that the market was bad and it was not a good time to invest in it? Think about that for a moment. Isn't the smart thing to purchase stocks while they are at a low price, and then later sell them at a higher one? Real estate investment really is the same thing. When the market is down or bad is one of the best times to purchase real estate to hold on to for a while, rent out, and make some serious cash on over time.
Don't get me wrong, real estate wholesale buying deals are not usually simple or easy. However, with a good group of professionals on your side, you can make a lot of money in the wholesale real estate market.
The bottom line is what generally holds you back as a real estate investor is not the state of the market, but rather the state of the thoughts within your head. The sad truth is that many people use a down market as an excuse not to do business. You really should learn to ignore the naysayers, not use an up or down market as your crutch not to do deals, and buy real estate wholesale whenever the deal is right for your investment strategy.
The Upsides And Downsides Of Real Estate
The Upsides And Downsides Of Real Estate
by Calvin Leonard
Like any other investments, investing in real estate has its upsides and downsides, and since there are different types of real estate to invest in, finding the right real estate will help you find the upsides. I had an acute appreciation for it, given my (expensive, and painful) landlording odyssey, but it seemed even with all this wonderful real estate investing information, I was still in very much the same position I had been in when I first got started. When the money made from these transactions is used to reinvest in other ventures, the return rate highly exceeds any other method of real estate investing.
Pick up just about any book or course with real estate investing information or that is about creative real estate and you'll find the choice #1 approach to finding motivated sellers, if any. It is true that you could make scads of cash but first you need to know all of the ins and out of the real estate investing business. If you look at the general process for successful real estate investing you will see some important early steps involve legal and accounting advice so it follows that a lawyer and accountant are key members of your team.
Are you confused about where the real estate investment market is going and what you will do in 2006? Australia has led the worldwide real estate boom and enjoyed record price increases over the past three years, but as 2006 gets underway many fear that the recent success of the Australian real estate market is not sustainable. And because the real estate market is believed to be currently undervalued - the wealth of opportunity for profit in Hong Kong's property market right now is intense. And finally, if you're interested in the real estate market down under and are not an Australian citizen, overseas buyers are free to own real estate in Australia that has been granted permission for sale to foreign purchasers; and you can rest assured that the purchase process will be straightforward because it is so well regulated in Australia.
A final additional tick in the suitability box for Brazil as a destination for investment is the fact that the real estate buying process for foreign purchasers is straightforward, and additional taxes and fees associated with purchasing and owning property or land in Brazil are very low. Well, just a few short months have passed and a current read of the Sunday homes section of the San Diego Union Tribune shows that though the real estate market does not make discernible moves in a day like the stock market, a couple of months can easily define the local real estate trends. In this week's article, we are going to conduct a little exercise to clarify what is really meant by The real estate Investment Market.
by Calvin Leonard
Like any other investments, investing in real estate has its upsides and downsides, and since there are different types of real estate to invest in, finding the right real estate will help you find the upsides. I had an acute appreciation for it, given my (expensive, and painful) landlording odyssey, but it seemed even with all this wonderful real estate investing information, I was still in very much the same position I had been in when I first got started. When the money made from these transactions is used to reinvest in other ventures, the return rate highly exceeds any other method of real estate investing.
Pick up just about any book or course with real estate investing information or that is about creative real estate and you'll find the choice #1 approach to finding motivated sellers, if any. It is true that you could make scads of cash but first you need to know all of the ins and out of the real estate investing business. If you look at the general process for successful real estate investing you will see some important early steps involve legal and accounting advice so it follows that a lawyer and accountant are key members of your team.
Are you confused about where the real estate investment market is going and what you will do in 2006? Australia has led the worldwide real estate boom and enjoyed record price increases over the past three years, but as 2006 gets underway many fear that the recent success of the Australian real estate market is not sustainable. And because the real estate market is believed to be currently undervalued - the wealth of opportunity for profit in Hong Kong's property market right now is intense. And finally, if you're interested in the real estate market down under and are not an Australian citizen, overseas buyers are free to own real estate in Australia that has been granted permission for sale to foreign purchasers; and you can rest assured that the purchase process will be straightforward because it is so well regulated in Australia.
A final additional tick in the suitability box for Brazil as a destination for investment is the fact that the real estate buying process for foreign purchasers is straightforward, and additional taxes and fees associated with purchasing and owning property or land in Brazil are very low. Well, just a few short months have passed and a current read of the Sunday homes section of the San Diego Union Tribune shows that though the real estate market does not make discernible moves in a day like the stock market, a couple of months can easily define the local real estate trends. In this week's article, we are going to conduct a little exercise to clarify what is really meant by The real estate Investment Market.
วันพฤหัสบดีที่ 20 ธันวาคม พ.ศ. 2550
Options for Disbursement of Real Estate Assets during a Divorce
Options for Disbursement of Real Estate Assets during a Divorce
by Robert Earl The Earl of Real Estate
Although it is a topic that most people don't want to contemplate or even consider, divorce has a tremendous impact on real estate and financial holdings. Real Estate may represent the largest asset that is being considered within the divorce proceeding, therefore it is something that should be considered when a separation or divorce are on the horizon. There are over 1.4 million divorces in the US every year. Here are some points, strategies and tips on how to maintain your lifestyle after a divorce and how to evaluate various real estate and financial settlement options prior to a separation & divorce:
You should research and understand the options related to disbursement of your real estate assets prior to the divorce settlement. This could include an evaluation of whether you consider:
o Sell your home or refinance your your jointly held real estate holding in order to buy-out the other party
o Pay or accept spousal support, child support or a higher cash payment versus a lump sum distribution involving the real estate holdings. You should evaluate the cash flow and home equity protection implications of various financial decisions involved with the divorce proceedings and the eventually agreement. This enables you to:
o Maintain your lifestyle
o Keep your children in the same school system as a single parent
o Live in the home that meets your needs without breaking your budget
o Stay on track to achieve financial freedom and become debt-free
You should look to improve your financial liquidity and protect your the real estate holdings from legal obligations or liabilities prior to going through a separation & divorce by working together with your CPA, CFP, attorney, Real Estate Team and other advisors.
Don't settle for an financial strategy or short-term fix if you failed to plan properly during a divorce situation. You can lessen the impact by implementing a structured plan for how to re-establish your monetary footing after going through a financial rough spot. This may involve:
o A staged approach to financing - a refinancing or debt restructuring plan that takes place over time
o Sale/Leaseback or Rent-to-Own strategy - a way to keep or purchase a home for sale or when you can't qualify for traditional financing options.
o Seek out Affordable Single Family Homes for Sale or Bank Owned / Foreclosure Homes for Sale
You worked hard to develop the assets and real estate holdings involved. You should consider all of your options to create an environment that works to protect those assets.
by Robert Earl The Earl of Real Estate
Although it is a topic that most people don't want to contemplate or even consider, divorce has a tremendous impact on real estate and financial holdings. Real Estate may represent the largest asset that is being considered within the divorce proceeding, therefore it is something that should be considered when a separation or divorce are on the horizon. There are over 1.4 million divorces in the US every year. Here are some points, strategies and tips on how to maintain your lifestyle after a divorce and how to evaluate various real estate and financial settlement options prior to a separation & divorce:
You should research and understand the options related to disbursement of your real estate assets prior to the divorce settlement. This could include an evaluation of whether you consider:
o Sell your home or refinance your your jointly held real estate holding in order to buy-out the other party
o Pay or accept spousal support, child support or a higher cash payment versus a lump sum distribution involving the real estate holdings. You should evaluate the cash flow and home equity protection implications of various financial decisions involved with the divorce proceedings and the eventually agreement. This enables you to:
o Maintain your lifestyle
o Keep your children in the same school system as a single parent
o Live in the home that meets your needs without breaking your budget
o Stay on track to achieve financial freedom and become debt-free
You should look to improve your financial liquidity and protect your the real estate holdings from legal obligations or liabilities prior to going through a separation & divorce by working together with your CPA, CFP, attorney, Real Estate Team and other advisors.
Don't settle for an financial strategy or short-term fix if you failed to plan properly during a divorce situation. You can lessen the impact by implementing a structured plan for how to re-establish your monetary footing after going through a financial rough spot. This may involve:
o A staged approach to financing - a refinancing or debt restructuring plan that takes place over time
o Sale/Leaseback or Rent-to-Own strategy - a way to keep or purchase a home for sale or when you can't qualify for traditional financing options.
o Seek out Affordable Single Family Homes for Sale or Bank Owned / Foreclosure Homes for Sale
You worked hard to develop the assets and real estate holdings involved. You should consider all of your options to create an environment that works to protect those assets.
Real Estate Developers at a Glance
Real Estate Developers at a Glance
by jeffadams
A real estate investor, who can be also called as real estate developer is a business person who buys and sells properties like land and houses. He is the person between the seller and the buyer. In countries like United Kingdom, a real estate developer is also called a real estate broker. A real estate investor meets many financial and business choices everyday, like capital gains, tax credits and interest rates. For this he needs to have a deep knowledge on real estate investing, he should also be capable of understanding things and a hard worker. A real estate investor gets his knowledge only through years of experience in real estate investing; he also needs to have deep interest and dedicated. He should to be patient while dealing with his clients and ready to wake up at 2:00AM to speak over the phone!
A real estate investors or brokers frequently have sales people, who are also called as agents, who help and assist real estate investors in the process of selling properties and even carries out other legal activities, refers legal documents and supervise things. To work as a real estate investor, the investor needs a license as the money is been exchanged between parties and the broker needs to be in presence as the agents work. Real estate investors without license will not be allowed to work unless the property buyer is working with his real estate developer. In this case, there is no necessity of any paperwork. Initially you need to be accredited as a real estate investor to obtain a license which is followed by a mandatory ninety hour course and you have to pass the real estate law exam.
A real estate investor generally targets either residential real estate or the commercial real estate. But there are investors who can handle both. If you need to survive with commercial real estate investing, then you need to have gain lot of experience and knowledge through residential real estate investing. But in many cases the experience which you obtain in residential real estate wont be enough! Investors dealing with commercial real estates must have enough capital and they need to learn more things as they handle rich business people who will be quite analytical and expect better things from you. Compared to residential, commercial real estate investing is known to be more rewarding and challenging.
by jeffadams
A real estate investor, who can be also called as real estate developer is a business person who buys and sells properties like land and houses. He is the person between the seller and the buyer. In countries like United Kingdom, a real estate developer is also called a real estate broker. A real estate investor meets many financial and business choices everyday, like capital gains, tax credits and interest rates. For this he needs to have a deep knowledge on real estate investing, he should also be capable of understanding things and a hard worker. A real estate investor gets his knowledge only through years of experience in real estate investing; he also needs to have deep interest and dedicated. He should to be patient while dealing with his clients and ready to wake up at 2:00AM to speak over the phone!
A real estate investors or brokers frequently have sales people, who are also called as agents, who help and assist real estate investors in the process of selling properties and even carries out other legal activities, refers legal documents and supervise things. To work as a real estate investor, the investor needs a license as the money is been exchanged between parties and the broker needs to be in presence as the agents work. Real estate investors without license will not be allowed to work unless the property buyer is working with his real estate developer. In this case, there is no necessity of any paperwork. Initially you need to be accredited as a real estate investor to obtain a license which is followed by a mandatory ninety hour course and you have to pass the real estate law exam.
A real estate investor generally targets either residential real estate or the commercial real estate. But there are investors who can handle both. If you need to survive with commercial real estate investing, then you need to have gain lot of experience and knowledge through residential real estate investing. But in many cases the experience which you obtain in residential real estate wont be enough! Investors dealing with commercial real estates must have enough capital and they need to learn more things as they handle rich business people who will be quite analytical and expect better things from you. Compared to residential, commercial real estate investing is known to be more rewarding and challenging.
Dubai Real Estate Company
Dubai Real Estate Company
by Hardev Zala
If you have a graph with fixed supply NRI investments UAE and fixed demand NRI investments UAE then it is very easy to predict things like house price rises and Property for Sale Dubai inflation. But in real life nothing stays static for very long and long, and in a dynamic economy like Real Estate Dubai change is the only constant.
Demand for Property in Dubai is determined by many factors: local consumer confidence, the Property in Dubai Real Estate cost of rental alternatives, population growth, salary increases, foreign buyer confidence, the global, Dubai Real Estate market, and even the value of the US dollar.
You certainly need to be careful about making market Dubai Property for Sale based on out-of-date information. It is also tough for foreigners who have only just got off a plane to make sound judgments about the real estate Dubai Property Listings sector in Dubai as opinions will be clouded by their 'experience' of other markets.
The temperature is continuing to rise in the Dubai Real Estate, Consultant Dubai Investment Property Company, with hot new developments selling out in hours. But as speculators buy and sell Investment in Dubai Real Estate frantically, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded. The result has been the rise of Dubai as the world's most glamorous property Investment in Dubai Real Estate market. Dubai has proudly announced the world's first seven star hotel, Ajman Property Al Arab and Investment in Dubai Real Estate is set to construct the world's biggest shopping mall, the first underwater hotel and amazingly, the longest indoors ski slope. The projects being released are some of the most inventive and ambitious the world has seen, with man made islands such as with real estate as out of the ordinary as this, it's difficult to see Real Estate in Dubai market is attracting such large-scale international interest Infrastructure Development Ajman. There really is nothing like it and it seems everybody who's anybody will have a piece of Dubai. Dubai's more exclusive developments are being snapped up the celebrity classes and the world's elite.
The Bselpearltower of Infrastructure Development Ajman Realty Limited. Infrastructure development, luxury apartments, Dubai property, Dubai real estate. If you want more Information we visit http://www.bselpearltower.co.in/
Consultant Dubai Investment Property, Ajman Property, Ajman Real Estate Company, budget apartments Dubai, Dubai Luxury Apartments, Dubai Property for Sale, Dubai Real Estate Company, Freehold Property in Ajman, Investment in Dubai Real Estate, NRI investments Dubai, Property for Sale Dubai, Property in Dubai, Real Estate in Dubai, Residence visa uae, UAE Real Estate, Offshore Software Development, SEO
by Hardev Zala
If you have a graph with fixed supply NRI investments UAE and fixed demand NRI investments UAE then it is very easy to predict things like house price rises and Property for Sale Dubai inflation. But in real life nothing stays static for very long and long, and in a dynamic economy like Real Estate Dubai change is the only constant.
Demand for Property in Dubai is determined by many factors: local consumer confidence, the Property in Dubai Real Estate cost of rental alternatives, population growth, salary increases, foreign buyer confidence, the global, Dubai Real Estate market, and even the value of the US dollar.
You certainly need to be careful about making market Dubai Property for Sale based on out-of-date information. It is also tough for foreigners who have only just got off a plane to make sound judgments about the real estate Dubai Property Listings sector in Dubai as opinions will be clouded by their 'experience' of other markets.
The temperature is continuing to rise in the Dubai Real Estate, Consultant Dubai Investment Property Company, with hot new developments selling out in hours. But as speculators buy and sell Investment in Dubai Real Estate frantically, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded. The result has been the rise of Dubai as the world's most glamorous property Investment in Dubai Real Estate market. Dubai has proudly announced the world's first seven star hotel, Ajman Property Al Arab and Investment in Dubai Real Estate is set to construct the world's biggest shopping mall, the first underwater hotel and amazingly, the longest indoors ski slope. The projects being released are some of the most inventive and ambitious the world has seen, with man made islands such as with real estate as out of the ordinary as this, it's difficult to see Real Estate in Dubai market is attracting such large-scale international interest Infrastructure Development Ajman. There really is nothing like it and it seems everybody who's anybody will have a piece of Dubai. Dubai's more exclusive developments are being snapped up the celebrity classes and the world's elite.
The Bselpearltower of Infrastructure Development Ajman Realty Limited. Infrastructure development, luxury apartments, Dubai property, Dubai real estate. If you want more Information we visit http://www.bselpearltower.co.in/
Consultant Dubai Investment Property, Ajman Property, Ajman Real Estate Company, budget apartments Dubai, Dubai Luxury Apartments, Dubai Property for Sale, Dubai Real Estate Company, Freehold Property in Ajman, Investment in Dubai Real Estate, NRI investments Dubai, Property for Sale Dubai, Property in Dubai, Real Estate in Dubai, Residence visa uae, UAE Real Estate, Offshore Software Development, SEO
Real Estate Agents Can Be Good Partners
Real Estate Agents Can Be Good Partners
by Vince Paxton
Real Estate Agents Can Be Good Partners
When the family is anticipating the move to a new home, it would be unfortunate if minor glitches in the process put that experience off too long or dampened the enthusiasm of family members. A real estate agent can be one of the best partners the family will have when buying real estate, but only if that agent answers all the questions honestly and provides more than enough information.
The vast majority of real estate agents are trustworthy professionals who know they will benefit from helping someone purchasing real estate. But they are human and may leave out important details during one of the several conversations that take place in the buying process. Certain items should never be left to chance when a family is making a large decision such as buying the home.
Keep in mind that although real estate agents can be good partners they are still sales people. They have an ultimate goal - sell the house. In many cases, this means the agent will emphasize the positive features of the house and the purchase program, while leaving out some of the less positive items. It then becomes necessary to ask questions and clear up any doubts. Some preparation by family members will help. Knowing what to look for in a home, even the basic items, can go a long way toward eliminating problems.
If the agent seems reluctant to explain some of the details, it would best to ask about those items specifically. Remember that the buyer can always look elsewhere if the agent does not provide enough information or seems to be avoiding some negative details about the house. A quality, reputable agent should be willing to prove that there are no ant/termite problems, for example. In addition, the agent must provide information about the condition of such items as plumbing and electrical service, or about heating and cooling equipment.
Be careful when accepting the inspection/opinion of a home inspector whose name was provided by the agent. While, in most cases, this will not be a major problem, the two may be working closely so that they both benefit financially. If there are doubts, make sure that someone you trust inspects the house.
As with most agent/buyer relationships, an honest exchange of information will benefit both parties. Sometimes, an agent may avoid showing a home that will provide less commission for the agent than comparable homes. So it may be wise not to make the family choice from the few homes suggested and shown by the agent. Keep in mind that the home will be a long-term residence. A few extra days of shopping and inspecting can certainly pay off in the long run.
Working with an agent in the house-buying process is a choice, not a necessity. There are plenty of fine, reputable agents around. With proper research and knowledge, a buyer can purchase a home on their own. A careful choice among real estate agents can make the process go even more smoothly.
by Vince Paxton
Real Estate Agents Can Be Good Partners
When the family is anticipating the move to a new home, it would be unfortunate if minor glitches in the process put that experience off too long or dampened the enthusiasm of family members. A real estate agent can be one of the best partners the family will have when buying real estate, but only if that agent answers all the questions honestly and provides more than enough information.
The vast majority of real estate agents are trustworthy professionals who know they will benefit from helping someone purchasing real estate. But they are human and may leave out important details during one of the several conversations that take place in the buying process. Certain items should never be left to chance when a family is making a large decision such as buying the home.
Keep in mind that although real estate agents can be good partners they are still sales people. They have an ultimate goal - sell the house. In many cases, this means the agent will emphasize the positive features of the house and the purchase program, while leaving out some of the less positive items. It then becomes necessary to ask questions and clear up any doubts. Some preparation by family members will help. Knowing what to look for in a home, even the basic items, can go a long way toward eliminating problems.
If the agent seems reluctant to explain some of the details, it would best to ask about those items specifically. Remember that the buyer can always look elsewhere if the agent does not provide enough information or seems to be avoiding some negative details about the house. A quality, reputable agent should be willing to prove that there are no ant/termite problems, for example. In addition, the agent must provide information about the condition of such items as plumbing and electrical service, or about heating and cooling equipment.
Be careful when accepting the inspection/opinion of a home inspector whose name was provided by the agent. While, in most cases, this will not be a major problem, the two may be working closely so that they both benefit financially. If there are doubts, make sure that someone you trust inspects the house.
As with most agent/buyer relationships, an honest exchange of information will benefit both parties. Sometimes, an agent may avoid showing a home that will provide less commission for the agent than comparable homes. So it may be wise not to make the family choice from the few homes suggested and shown by the agent. Keep in mind that the home will be a long-term residence. A few extra days of shopping and inspecting can certainly pay off in the long run.
Working with an agent in the house-buying process is a choice, not a necessity. There are plenty of fine, reputable agents around. With proper research and knowledge, a buyer can purchase a home on their own. A careful choice among real estate agents can make the process go even more smoothly.
Hiring a Real Estate Attorney
Hiring a Real Estate Attorney
by Kelly Thacker
When you decide to buy or sell a house, you may have questions regarding legal issues. Sometimes it's a good idea to have an attorney present for the signing of certain documents. Sometimes you may just need someone like an attorney look over everything and make sure that there aren't any legalities that are being overlooked.
You may get advice from a lot a people during the home buying or selling process. Mortgage brokers, realtors and employees of the title company might all let you know what you need to do next. But, keep in mind that none of these people are actually qualified to give you legal advice. Only an attorney is qualified to give legal advice. One piece of advice you can get from your broker or realtor is an attorney referral. You should look for an attorney in your area that specializes in real estate law. If you're lucky, you can find an attorney who is also a real estate broker or agent. People like this generally keep up with the changing laws and systems that are in place to ensure that the real estate sale is fair on both sides.
When you get your list of attorneys, call each one. Ask any questions that you might have and gauge who you like based on how they answer your questions. They probably won't specifically give you answers, but they'll be able to tell you what they can do for you. Ask how much each charges hourly. Then, explain your situation and what all you need done. Get an estimate of how long all of this will take to get an idea of the cost. Some will charge one flat fee to do everything that you need regarding the buying or selling of the property.
So, what are some problems that you might run into as a buyer or seller? There are a lot of legal documents to sign during the negotiation phase of buying or selling a property. When you're selling, you usually will sign an agreement with the realtor and the mortgage broker. Sometimes they will use a standardized form that doesn't take into account any special circumstances. They may have it set up so that they get paid regardless of what happens in the process. If you take your property off of the market or decide to change companies, you could end up still paying the original broker or agent. You could get stuck paying them more than one commission or paying it when the property doesn't sell.
The bottom line is that a lot can go wrong for you when buying or selling and it's best to have legal representation when dealing with these problems that can pop up. You'll need advice along the way, so it's probably best to make that advice professional advice. The Salt Lake City Court Reporters at Thacker + Co bring you this information to protect you in the home buying or selling process.
by Kelly Thacker
When you decide to buy or sell a house, you may have questions regarding legal issues. Sometimes it's a good idea to have an attorney present for the signing of certain documents. Sometimes you may just need someone like an attorney look over everything and make sure that there aren't any legalities that are being overlooked.
You may get advice from a lot a people during the home buying or selling process. Mortgage brokers, realtors and employees of the title company might all let you know what you need to do next. But, keep in mind that none of these people are actually qualified to give you legal advice. Only an attorney is qualified to give legal advice. One piece of advice you can get from your broker or realtor is an attorney referral. You should look for an attorney in your area that specializes in real estate law. If you're lucky, you can find an attorney who is also a real estate broker or agent. People like this generally keep up with the changing laws and systems that are in place to ensure that the real estate sale is fair on both sides.
When you get your list of attorneys, call each one. Ask any questions that you might have and gauge who you like based on how they answer your questions. They probably won't specifically give you answers, but they'll be able to tell you what they can do for you. Ask how much each charges hourly. Then, explain your situation and what all you need done. Get an estimate of how long all of this will take to get an idea of the cost. Some will charge one flat fee to do everything that you need regarding the buying or selling of the property.
So, what are some problems that you might run into as a buyer or seller? There are a lot of legal documents to sign during the negotiation phase of buying or selling a property. When you're selling, you usually will sign an agreement with the realtor and the mortgage broker. Sometimes they will use a standardized form that doesn't take into account any special circumstances. They may have it set up so that they get paid regardless of what happens in the process. If you take your property off of the market or decide to change companies, you could end up still paying the original broker or agent. You could get stuck paying them more than one commission or paying it when the property doesn't sell.
The bottom line is that a lot can go wrong for you when buying or selling and it's best to have legal representation when dealing with these problems that can pop up. You'll need advice along the way, so it's probably best to make that advice professional advice. The Salt Lake City Court Reporters at Thacker + Co bring you this information to protect you in the home buying or selling process.
วันเสาร์ที่ 15 ธันวาคม พ.ศ. 2550
Banking Boost For Menorca Real Estate
Banking Boost For Menorca Real Estate
by Roger Munns
Despite the recent banking crises in the UK, one of her best known banks and mortgages provider is to open three new offices on the Spanish islands of the Canaries plus the Balearic island of Menorca to meet demand for Britons looking to buy a home in Spain.
The decision by the Halifax was taken from data showing a trend towards Britons buying homes overseas, with Spain the most popular choice.
Part of the decision was to open in Menorca, the quietest of the three Balearic Islands. Commenting on the move a local travel guide commented:
'While Majorca and Ibiza are possibly better known than Menorca, it's perhaps not so surprising that the bank has decided to open an office on the island. The typical buyer for property in Menorca is normally older than that for Majorca and Ibiza, which could mean they are hoping to service their investments and pensions along with a normal account - especially for those moving full time to Menorca.'
Commenting on the new bank branch in Menorca, the company said that the opening of branches away from mainland Spain is an important step in the development of their branch network, and that they will continue to target the Spanish islands in addition to their Spanish mainland business.
Once bought, Menorca villas are often let out to holidaymakers, with the season generally running from May to end September.
As one of the Balearic Islands Menorca is close to better known Majorca, which like Menorca has welcomed many visitors back to live full time on the island. Menorca property has proved popular too, for those looking for a gentler pace of life than big sister Majorca.
Property prices in Majorca are similar to Menorca property, with a range of apartments and villas in both rural and town locations, and with twenty golf courses plenty of golf course developments too.
Menorca has just the one golf course, recently extended to eighteen holes, and is located in Son Park, which has a choice of hotels, apartments and villas for holiday makers.
The cost of flying to Menorca and Majorca has come down in recent years from most European countries due to low cost airlines, especially in the island's core tourist areas of the United Kingdom and Germany, and last year easyJet started direct flights from London's Gatwick Airport to Menorca, having served Majorca for some years already.
The third island in the Balearics is Ibiza, which in turn attracts a different age group and property buyer compared to Menorca and Majorca.
Clubbers from around Europe, and especially from the UK, descend upon Ibiza in the summer months for a week - and often two - of non stop partying.
Ibiza runs second only to the UK's main cities of London, Manchester and Liverpool in terms of popularity for clubbers, and some of the Ibiza clubs are as well known as any in the UK, with some clubbers visiting frequently enough to consider buying an apartment on the island.
Demand for flights to Ibiza has been high enough in recent years for a low cost airline to start two new services from the UK to Ibiza, which should see the number of tourists on the island rise this year.
The two new routes are from Edinburgh in Scotland twice weekly, and London's Luton Airport with both routes offering a daily service. This will be an attraction for those considering buying a property on one of the Spanish islands, and this in time will again attract the British banks to open new offices to cater for those considering buying an apartment or villa.
by Roger Munns
Despite the recent banking crises in the UK, one of her best known banks and mortgages provider is to open three new offices on the Spanish islands of the Canaries plus the Balearic island of Menorca to meet demand for Britons looking to buy a home in Spain.
The decision by the Halifax was taken from data showing a trend towards Britons buying homes overseas, with Spain the most popular choice.
Part of the decision was to open in Menorca, the quietest of the three Balearic Islands. Commenting on the move a local travel guide commented:
'While Majorca and Ibiza are possibly better known than Menorca, it's perhaps not so surprising that the bank has decided to open an office on the island. The typical buyer for property in Menorca is normally older than that for Majorca and Ibiza, which could mean they are hoping to service their investments and pensions along with a normal account - especially for those moving full time to Menorca.'
Commenting on the new bank branch in Menorca, the company said that the opening of branches away from mainland Spain is an important step in the development of their branch network, and that they will continue to target the Spanish islands in addition to their Spanish mainland business.
Once bought, Menorca villas are often let out to holidaymakers, with the season generally running from May to end September.
As one of the Balearic Islands Menorca is close to better known Majorca, which like Menorca has welcomed many visitors back to live full time on the island. Menorca property has proved popular too, for those looking for a gentler pace of life than big sister Majorca.
Property prices in Majorca are similar to Menorca property, with a range of apartments and villas in both rural and town locations, and with twenty golf courses plenty of golf course developments too.
Menorca has just the one golf course, recently extended to eighteen holes, and is located in Son Park, which has a choice of hotels, apartments and villas for holiday makers.
The cost of flying to Menorca and Majorca has come down in recent years from most European countries due to low cost airlines, especially in the island's core tourist areas of the United Kingdom and Germany, and last year easyJet started direct flights from London's Gatwick Airport to Menorca, having served Majorca for some years already.
The third island in the Balearics is Ibiza, which in turn attracts a different age group and property buyer compared to Menorca and Majorca.
Clubbers from around Europe, and especially from the UK, descend upon Ibiza in the summer months for a week - and often two - of non stop partying.
Ibiza runs second only to the UK's main cities of London, Manchester and Liverpool in terms of popularity for clubbers, and some of the Ibiza clubs are as well known as any in the UK, with some clubbers visiting frequently enough to consider buying an apartment on the island.
Demand for flights to Ibiza has been high enough in recent years for a low cost airline to start two new services from the UK to Ibiza, which should see the number of tourists on the island rise this year.
The two new routes are from Edinburgh in Scotland twice weekly, and London's Luton Airport with both routes offering a daily service. This will be an attraction for those considering buying a property on one of the Spanish islands, and this in time will again attract the British banks to open new offices to cater for those considering buying an apartment or villa.
Dallas Real Estate Market
Dallas Real Estate Market
by Richard Soto
With the changes in the market dynamics, the real estate market is currently undergoing a competitive stage. In most places around the country, many sellers and buyer are feeling the pressure. There is strain put on the buyers, who are looking for excellent deals, and the sellers, who are trying to get top dollar for their properties.
The Dallas Texas real estate market is no stranger to feeling the tense urge to buy and sell fast. But in order to expedite the transactions, many people are getting less for their homes then they should. Out of every single Dallas home for sale, there is not one seller who wants to walk away from the table with less money. At the same time, fighting against the sellers are the buyers who want a great deal...or at least wanting to feel like they got a great deal.
Thus, the question most people are asking with Dallas homes for sale is, "how do I sell my home efficiently while getting the most out of my investment?" And the answer is very simple and will work for not only every Dallas Texas real estate owner, but for every real estate owner across the nation.
* Ask for more. This is plain, simple, and to the point. However, many sellers fear asking for more than they feel the house is worth out of fear of rejection. But think of it this way: if you do not ask, you will not get it. No buyer will offer you more then you are asking. Yet, if you put a higher price on the house, people will automatically assume it is worth it. * Build in negotiation room. Another critical point for owners of Dallas homes for sale is that almost every single potential buyer who walks through the door is going to offer you less then the listing price. Whether or not you started your list amount high or low, they are going to offer you less. That is common because everyone wants a good deal. Therefore, if you build in negotiation room, you can make the buyers feel that they got a good deal, while you still get what you want for your Dallas real estate property.
If you start your list price at the minimum that you will accept, there is no room for negotiation. You leave the buyer feeling that you are not willing to be flexible, and they will generally walk.
For example, let us consider that you would really like $130,000 for your Dallas Texas home. Do you list it at that price? Absolutely not. If you listed it at $130,000, there would be no room to negotiate down. By listing your Dallas Texas real estate at a higher amount, you give the buyer room to try and negotiate. You may just end up with the $130,000 that you wanted, and the buyers feel like they got a great deal because they "worked you down."
Therefore, for both you and your buyer to walk away feeling good about your Dallas Texas home, you need to ask for a higher amount then you expect to get. Utilizing psychological tools are important for negotiating a good deal for the following reasons:
* You are increasing the perceived value of your home. * You may actually end up getting the higher price. If you never ask, you will never get it. * You leave room for negotiation, which gives the buyer the sense that they "won" and got a great deal. * You are preventing a deadlock in negotiation.
By simply following this advice, you will be able to get the best deal for your Dallas Texas real estate property, and you will have a very satisfied buyer.
by Richard Soto
With the changes in the market dynamics, the real estate market is currently undergoing a competitive stage. In most places around the country, many sellers and buyer are feeling the pressure. There is strain put on the buyers, who are looking for excellent deals, and the sellers, who are trying to get top dollar for their properties.
The Dallas Texas real estate market is no stranger to feeling the tense urge to buy and sell fast. But in order to expedite the transactions, many people are getting less for their homes then they should. Out of every single Dallas home for sale, there is not one seller who wants to walk away from the table with less money. At the same time, fighting against the sellers are the buyers who want a great deal...or at least wanting to feel like they got a great deal.
Thus, the question most people are asking with Dallas homes for sale is, "how do I sell my home efficiently while getting the most out of my investment?" And the answer is very simple and will work for not only every Dallas Texas real estate owner, but for every real estate owner across the nation.
* Ask for more. This is plain, simple, and to the point. However, many sellers fear asking for more than they feel the house is worth out of fear of rejection. But think of it this way: if you do not ask, you will not get it. No buyer will offer you more then you are asking. Yet, if you put a higher price on the house, people will automatically assume it is worth it. * Build in negotiation room. Another critical point for owners of Dallas homes for sale is that almost every single potential buyer who walks through the door is going to offer you less then the listing price. Whether or not you started your list amount high or low, they are going to offer you less. That is common because everyone wants a good deal. Therefore, if you build in negotiation room, you can make the buyers feel that they got a good deal, while you still get what you want for your Dallas real estate property.
If you start your list price at the minimum that you will accept, there is no room for negotiation. You leave the buyer feeling that you are not willing to be flexible, and they will generally walk.
For example, let us consider that you would really like $130,000 for your Dallas Texas home. Do you list it at that price? Absolutely not. If you listed it at $130,000, there would be no room to negotiate down. By listing your Dallas Texas real estate at a higher amount, you give the buyer room to try and negotiate. You may just end up with the $130,000 that you wanted, and the buyers feel like they got a great deal because they "worked you down."
Therefore, for both you and your buyer to walk away feeling good about your Dallas Texas home, you need to ask for a higher amount then you expect to get. Utilizing psychological tools are important for negotiating a good deal for the following reasons:
* You are increasing the perceived value of your home. * You may actually end up getting the higher price. If you never ask, you will never get it. * You leave room for negotiation, which gives the buyer the sense that they "won" and got a great deal. * You are preventing a deadlock in negotiation.
By simply following this advice, you will be able to get the best deal for your Dallas Texas real estate property, and you will have a very satisfied buyer.
Real Estate Booms and Busts
Real Estate Booms & Busts
Recently, I was on my way back from working with Lou Brown as a coach to his students. On the plane ride home, a fellow coach and I were discussing real estate; of all things! - Can you imagine? ? All of a sudden the man in the seat next to me said "I don't think now is the time to invest in real estate" - blasphemy! - went the little voice in my head. Almost simultaneously my fellow coach and I said, "Actually, this is the best time to invest in real estate." (Jinx) We started talking about the real estate cycles and how this down market is the best opportunity we have seen in years to buy real estate. By the end of the conversation the man seated next to us was asking us for any investments we might have that he could take advantage of in his local area.
This got me thinking about real estate markets and how they work. After all, things do not happen haphazardly; moreover, history often repeats itself. I was also interested in the psychology behind the real estate markets given my background; are you surprised?
There was a lot of talk 2-years ago about the "real estate bubble". U.S. Federal Reserve Chairman Alan Greenspan said in mid-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market). The Economist magazine, writing at the same time, went further, saying "the worldwide rise in house prices is the biggest bubble in history". So what exactly caused the bubble to break, if there ever was a bubble? The answer may not be quite what you think.
I once heard a great analogy for how the real estate market flows. It was likened to a leaf in a stream; sometimes it is flowing fast, some times it goes slow and maybe it meets a waterfall or gets stuck in an eddy. Over the past 100 years there have been many ups and downs in the market place. Sudden changes in the market are rare, although they do change abruptly. Most certainly there is a psychological component that plays into all of these turns. Analysis of past booms seems to indicate that investors often do not understand the supply response to price increases. Actually, there seems to be a tendency for investors to overestimate how unique an investment is, that they favor, failing to take into account the principles of supply and rising prices. Investors can't possibly imagine how many competitors there really are; hence why so many investors bought into pre-construction in areas that were already saturated with pre-construction units. The end of booms seems to be associated with the increase in supply of the investment and its negative affect on price. Hence people getting stuck with an "investment" they cannot sell and then feeling duped.
Looking back at the history of the past real estate market, we can see many booms and busts. In the 1880's there was a boom in southern California Real Estate and what is amazing are the similarities that it has to the recent real estate boom of the 2000's. Much like other booms, investors in the 1880's failed to consider the supply of new homes built and the psychological market reaction. In December of 1887, the Los Angeles Times ran an ad that read: "Phenomenal Success! Sales unprecedented in real estate records, this price will positively be advanced". How may of you saw ads for real estate in Arizona, Florida or Las Vegas in the last couple of years that proclaimed a similar sentiment? Long before the peak of the California real state boom in 1887, the newspapers began to change their tune and run articles proclaiming the "foolishness of real estate investors". Much like the articles I read about 2 years ago referring to the "Real Estate Bubble". By 1888 and 1889, the newspapers were reporting the end of the California boom and the psychological fall out had occurred as people felt embarrassed to have been caught up in the emotion of the boom.
The next real estate boom was the Florida land boom of the 1920's; remember the saying: "...If you believe that, I've got some swamp land in Florida for sale you can buy". Where do you think that saying came from? Stories of appreciating houses in Florida began in 1921 and there began to immerge stories of people striking it rich in Florida real estate. The boom steamed on until 1926 when the boom came to an end supposedly because of a hurricane and a recession. However, what seems truer, by account, was that the over supply of new homes and the change in the psychology of the investor ended the boom. Once again the newspapers that had once reported gold in Florida now reported "schemes" and "doubting prices" in early 1925; in fact the Chicago Tribune wrote an article that read: "On the other hand, there are developments along the Dixie Highway that will never be developed - sheer fraud. City gateways and a lot of street posts stuck up along the pines, ten miles for anywhere, maybe in the heart of a turpentine grove with nothing in sight to warrant they've ever being developed. The lots, however, have been sold, for the professional can always land the sucker."
This reminded me of an article I read a while back about vast developments in Arizona and Las Vegas where no one seemed to live because all the houses had all been bought by investors. One thing is for sure: the over development of real estate units as the boom progresses and psychological reaction of the investors to media touted scams was what brought the boom to an end in the 1920's.
Let's look at the real estate boom of the 1980's and see if there are some similarities. It started on the east coast of the U.S. in the early 1980's and peaked around 1985, while on the west coast of the U.S., it peaked around 1988. The boom ended in early 1991. The sharpest period of declining home prices can be seen around the time of the Gulf War. It appeared that the psychology of the war produced a sharp decline in traffic of prospective home buyers.
The social psychology of the processes that produces a boom and ends a boom are still unclear, but play an integral role. One thing is for sure; the real estate boom of 2000's was much bigger than any other boom that preceded it. I believe the media played a big role in the changing psychology of all these booms and busts. Over the last 100 years of history the media has touted stories of striking it rich with real estate and then after a few years, turns and tout the "scams" and "foolishness" of investing. This seems to be the common element in all booms. A sense of excitement and enthusiasm followed by a sense of betrayal and embarrassment for having taken part in the boom; this change in psychology must have an impact on prices and sales.
As of now, there is a mixed reaction as to where we are in this boom. Some would say it is over and real estate will stay down for another 18 months, yet others feel it is already turning around. I hear reports of 100% mortgages coming back and that the Traffic of Prospective Buyers Index is showing improvement. Moreover, the number of US housing permits given to builders increased earlier this year. Will we see a revival of the market? If it is to happen, then there will need to be a shift in the current psychology of home buyers.
Local markets are microcosms of the larger market as a whole. Here in Chicago, we have had our own booms and busts over the years. One example was the real estate boom after the great Chicago fire of 1871 and the psychology of the people of the town. After the fire, The New Orleans Bulletin reported that "Chicago had had its day and would not be rebuilt". For Chicagoans, this was absurd and rebuilding started feverishly. The rebuilding of Chicago is legendary among recoveries and booms. One article in the Chicago Tribune reported that in October 1871, the ground that had been burnt, if it not be rebuilt, would be worth 1/4 of its former value after the fire. Another article reported that once it was rebuilt, the ground would be worth as much as it was prior to the fire. In 1872, a man by the name of Otto Young moved to Chicago and bought as much real estate as he could despite being told not to by those around him. Otto Young become one of the largest holders of real estate in Chicago. Today that real estate is commonly known as "The Loop". At the time of his death in 1906 he was said to be worth 17 million dollars. No doubt Otto saw an opportunity and jumped on it.
By 1883 a recession had hit much of the US. Many investors came to Chicago to buy real estate expecting to buy for 30 cents on the dollar. Investors found that this was not the case and in fact Chicago, because of its strong economic foundation, had continued to flourish. As the market continues to flourish, in the span of 9 - 19 years after the fire, the price of land in Chicago was nearly astronomical for the era. In 1880 a quarter acre was valued at $130,000 and in 1890 at $900,000. Even though the fire was one of the largest U.S. disasters of the 19th century, the rebuilding that began almost immediately spurred Chicago's development into one of the most populous and economically important cities today. Even today, despite the change in the real estate market and the booms and busts over the years, Chicago remains one of the best places to invest in real estate because of its strong economic foundation. My belief is that as an investor, opportunity is knocking for those who know what to do within real estate. I believe the next 2 years will produce more millionaires in real estate than ever before, especially for those who learn how to buy right and hold the investment for the next boom in 10 - 20 years. Why do I think this? Look back at history; it repeats itself.
Recently, I was on my way back from working with Lou Brown as a coach to his students. On the plane ride home, a fellow coach and I were discussing real estate; of all things! - Can you imagine? ? All of a sudden the man in the seat next to me said "I don't think now is the time to invest in real estate" - blasphemy! - went the little voice in my head. Almost simultaneously my fellow coach and I said, "Actually, this is the best time to invest in real estate." (Jinx) We started talking about the real estate cycles and how this down market is the best opportunity we have seen in years to buy real estate. By the end of the conversation the man seated next to us was asking us for any investments we might have that he could take advantage of in his local area.
This got me thinking about real estate markets and how they work. After all, things do not happen haphazardly; moreover, history often repeats itself. I was also interested in the psychology behind the real estate markets given my background; are you surprised?
There was a lot of talk 2-years ago about the "real estate bubble". U.S. Federal Reserve Chairman Alan Greenspan said in mid-2005 that "at a minimum, there's a little 'froth' (in the U.S. housing market). The Economist magazine, writing at the same time, went further, saying "the worldwide rise in house prices is the biggest bubble in history". So what exactly caused the bubble to break, if there ever was a bubble? The answer may not be quite what you think.
I once heard a great analogy for how the real estate market flows. It was likened to a leaf in a stream; sometimes it is flowing fast, some times it goes slow and maybe it meets a waterfall or gets stuck in an eddy. Over the past 100 years there have been many ups and downs in the market place. Sudden changes in the market are rare, although they do change abruptly. Most certainly there is a psychological component that plays into all of these turns. Analysis of past booms seems to indicate that investors often do not understand the supply response to price increases. Actually, there seems to be a tendency for investors to overestimate how unique an investment is, that they favor, failing to take into account the principles of supply and rising prices. Investors can't possibly imagine how many competitors there really are; hence why so many investors bought into pre-construction in areas that were already saturated with pre-construction units. The end of booms seems to be associated with the increase in supply of the investment and its negative affect on price. Hence people getting stuck with an "investment" they cannot sell and then feeling duped.
Looking back at the history of the past real estate market, we can see many booms and busts. In the 1880's there was a boom in southern California Real Estate and what is amazing are the similarities that it has to the recent real estate boom of the 2000's. Much like other booms, investors in the 1880's failed to consider the supply of new homes built and the psychological market reaction. In December of 1887, the Los Angeles Times ran an ad that read: "Phenomenal Success! Sales unprecedented in real estate records, this price will positively be advanced". How may of you saw ads for real estate in Arizona, Florida or Las Vegas in the last couple of years that proclaimed a similar sentiment? Long before the peak of the California real state boom in 1887, the newspapers began to change their tune and run articles proclaiming the "foolishness of real estate investors". Much like the articles I read about 2 years ago referring to the "Real Estate Bubble". By 1888 and 1889, the newspapers were reporting the end of the California boom and the psychological fall out had occurred as people felt embarrassed to have been caught up in the emotion of the boom.
The next real estate boom was the Florida land boom of the 1920's; remember the saying: "...If you believe that, I've got some swamp land in Florida for sale you can buy". Where do you think that saying came from? Stories of appreciating houses in Florida began in 1921 and there began to immerge stories of people striking it rich in Florida real estate. The boom steamed on until 1926 when the boom came to an end supposedly because of a hurricane and a recession. However, what seems truer, by account, was that the over supply of new homes and the change in the psychology of the investor ended the boom. Once again the newspapers that had once reported gold in Florida now reported "schemes" and "doubting prices" in early 1925; in fact the Chicago Tribune wrote an article that read: "On the other hand, there are developments along the Dixie Highway that will never be developed - sheer fraud. City gateways and a lot of street posts stuck up along the pines, ten miles for anywhere, maybe in the heart of a turpentine grove with nothing in sight to warrant they've ever being developed. The lots, however, have been sold, for the professional can always land the sucker."
This reminded me of an article I read a while back about vast developments in Arizona and Las Vegas where no one seemed to live because all the houses had all been bought by investors. One thing is for sure: the over development of real estate units as the boom progresses and psychological reaction of the investors to media touted scams was what brought the boom to an end in the 1920's.
Let's look at the real estate boom of the 1980's and see if there are some similarities. It started on the east coast of the U.S. in the early 1980's and peaked around 1985, while on the west coast of the U.S., it peaked around 1988. The boom ended in early 1991. The sharpest period of declining home prices can be seen around the time of the Gulf War. It appeared that the psychology of the war produced a sharp decline in traffic of prospective home buyers.
The social psychology of the processes that produces a boom and ends a boom are still unclear, but play an integral role. One thing is for sure; the real estate boom of 2000's was much bigger than any other boom that preceded it. I believe the media played a big role in the changing psychology of all these booms and busts. Over the last 100 years of history the media has touted stories of striking it rich with real estate and then after a few years, turns and tout the "scams" and "foolishness" of investing. This seems to be the common element in all booms. A sense of excitement and enthusiasm followed by a sense of betrayal and embarrassment for having taken part in the boom; this change in psychology must have an impact on prices and sales.
As of now, there is a mixed reaction as to where we are in this boom. Some would say it is over and real estate will stay down for another 18 months, yet others feel it is already turning around. I hear reports of 100% mortgages coming back and that the Traffic of Prospective Buyers Index is showing improvement. Moreover, the number of US housing permits given to builders increased earlier this year. Will we see a revival of the market? If it is to happen, then there will need to be a shift in the current psychology of home buyers.
Local markets are microcosms of the larger market as a whole. Here in Chicago, we have had our own booms and busts over the years. One example was the real estate boom after the great Chicago fire of 1871 and the psychology of the people of the town. After the fire, The New Orleans Bulletin reported that "Chicago had had its day and would not be rebuilt". For Chicagoans, this was absurd and rebuilding started feverishly. The rebuilding of Chicago is legendary among recoveries and booms. One article in the Chicago Tribune reported that in October 1871, the ground that had been burnt, if it not be rebuilt, would be worth 1/4 of its former value after the fire. Another article reported that once it was rebuilt, the ground would be worth as much as it was prior to the fire. In 1872, a man by the name of Otto Young moved to Chicago and bought as much real estate as he could despite being told not to by those around him. Otto Young become one of the largest holders of real estate in Chicago. Today that real estate is commonly known as "The Loop". At the time of his death in 1906 he was said to be worth 17 million dollars. No doubt Otto saw an opportunity and jumped on it.
By 1883 a recession had hit much of the US. Many investors came to Chicago to buy real estate expecting to buy for 30 cents on the dollar. Investors found that this was not the case and in fact Chicago, because of its strong economic foundation, had continued to flourish. As the market continues to flourish, in the span of 9 - 19 years after the fire, the price of land in Chicago was nearly astronomical for the era. In 1880 a quarter acre was valued at $130,000 and in 1890 at $900,000. Even though the fire was one of the largest U.S. disasters of the 19th century, the rebuilding that began almost immediately spurred Chicago's development into one of the most populous and economically important cities today. Even today, despite the change in the real estate market and the booms and busts over the years, Chicago remains one of the best places to invest in real estate because of its strong economic foundation. My belief is that as an investor, opportunity is knocking for those who know what to do within real estate. I believe the next 2 years will produce more millionaires in real estate than ever before, especially for those who learn how to buy right and hold the investment for the next boom in 10 - 20 years. Why do I think this? Look back at history; it repeats itself.
The Real Estate Investment with the Features of a Corporate Bond
The Real Estate Investment with the Features of a Corporate Bond
by Groshan Fabiola
Why are so many investors, foreign and domestic, placing their money in NNN properties?
Net-leased real estate provides a unique investment opportunity to individuals or institutions interested in owning real estate without the hassles of management and leasing typically found in conventional real estate investments. Net-leased projects are most commonly single-tenant, credit-driven investments on long-term leases which require minimal or no landlord responsibility.
As a result, investors are not bound to their geographic markets, whereas they would most likely be with a traditional real estate investment, not just closely watched "backyard" opportunities.
A net-leased (NNN) property is effectively a long-term bond of a corporation in the form of a lease document encompassed by real estate. The investment appears to be a bond-type investment due to the "coupon-clipper" type of returns, 6%-10%. However, they also provide the added benefits of tax reduction and property appreciation found in conventional real estate.
The net-leased investment can be categorized three ways: 1. Retail refers to big-box users (i.e. discount variety stores, department stores, or home improvement stores) as well as small-box users (i.e. restaurants or drug stores). 2. Industrial includes facilities used for either distribution, manufacturing, or research and development. 3. Office refers to any single user such as an oil company or pharmaceutical firm occupying a facility as the sole tenant.
Pricing on net-leased projects is based primarily on the tenant's credit, the terms of the lease, and the location. Although each of these variables has an important role in the pricing of net-leased projects, it is the combination of all three that will determine a true purchase price.
Tenant's Credit * Many net-leased projects are based solely on a tenant's credit. * Tenants considered investment grade by a recognized rating agency usually trade at a premium (i.e. Walmart, Walgreens, General Motors). * Tenants with junk bond (non-investment grade) ratings or minimal net worth typically trade for a higher return (i.e. UA Theaters, Dairy Mart convenience stores, Taco Cabana restaurants).
Lease * Length of a lease is a another primary factor in determining the sales price on a net-leased investment. Primary terms of 15 or more years are preferred; 10 years is sufficient in 1031 tax-deferred exchanges and similar cases * "Absolute" triple-net leases, where the tenant is responsible for roof, structure, and parking, trade at a premium. * "Double-net (NN)" leases, where the landlord is responsible for roof and structure, trade at a higher yield and usually include a reserve taken for any potential repairs. * Leases with "bumps"- rental increases or upside trade at a premium, with the exception of flat leases with investment grade credit.
Location * NNN leases are credit-driven, causing location to be the least important factor. * Investors often pay an added premium for the residual benefit of specifying a certain geographic location.
The combination of credit, lease and location can lead to paying a higher premium (i.e. Walgreen: 20 year NNN, flat) or receiving a higher yield (i.e. CSK Auto: 15 year NN).
The market for net-leased real estate investments is strong. The availability of attractive financing combined with minimal landlord responsibilities create highly desirable opportunities, especially for investors desiring a property for an IRS Section 1031 tax-deferred exchange.
Whether a risk-averse individual or institution is in need of a smart depreciation vehicle or a relatively safe "coupon-clipper," net-leased properties provide great investments in both credit and real estate markets.
by Groshan Fabiola
Why are so many investors, foreign and domestic, placing their money in NNN properties?
Net-leased real estate provides a unique investment opportunity to individuals or institutions interested in owning real estate without the hassles of management and leasing typically found in conventional real estate investments. Net-leased projects are most commonly single-tenant, credit-driven investments on long-term leases which require minimal or no landlord responsibility.
As a result, investors are not bound to their geographic markets, whereas they would most likely be with a traditional real estate investment, not just closely watched "backyard" opportunities.
A net-leased (NNN) property is effectively a long-term bond of a corporation in the form of a lease document encompassed by real estate. The investment appears to be a bond-type investment due to the "coupon-clipper" type of returns, 6%-10%. However, they also provide the added benefits of tax reduction and property appreciation found in conventional real estate.
The net-leased investment can be categorized three ways: 1. Retail refers to big-box users (i.e. discount variety stores, department stores, or home improvement stores) as well as small-box users (i.e. restaurants or drug stores). 2. Industrial includes facilities used for either distribution, manufacturing, or research and development. 3. Office refers to any single user such as an oil company or pharmaceutical firm occupying a facility as the sole tenant.
Pricing on net-leased projects is based primarily on the tenant's credit, the terms of the lease, and the location. Although each of these variables has an important role in the pricing of net-leased projects, it is the combination of all three that will determine a true purchase price.
Tenant's Credit * Many net-leased projects are based solely on a tenant's credit. * Tenants considered investment grade by a recognized rating agency usually trade at a premium (i.e. Walmart, Walgreens, General Motors). * Tenants with junk bond (non-investment grade) ratings or minimal net worth typically trade for a higher return (i.e. UA Theaters, Dairy Mart convenience stores, Taco Cabana restaurants).
Lease * Length of a lease is a another primary factor in determining the sales price on a net-leased investment. Primary terms of 15 or more years are preferred; 10 years is sufficient in 1031 tax-deferred exchanges and similar cases * "Absolute" triple-net leases, where the tenant is responsible for roof, structure, and parking, trade at a premium. * "Double-net (NN)" leases, where the landlord is responsible for roof and structure, trade at a higher yield and usually include a reserve taken for any potential repairs. * Leases with "bumps"- rental increases or upside trade at a premium, with the exception of flat leases with investment grade credit.
Location * NNN leases are credit-driven, causing location to be the least important factor. * Investors often pay an added premium for the residual benefit of specifying a certain geographic location.
The combination of credit, lease and location can lead to paying a higher premium (i.e. Walgreen: 20 year NNN, flat) or receiving a higher yield (i.e. CSK Auto: 15 year NN).
The market for net-leased real estate investments is strong. The availability of attractive financing combined with minimal landlord responsibilities create highly desirable opportunities, especially for investors desiring a property for an IRS Section 1031 tax-deferred exchange.
Whether a risk-averse individual or institution is in need of a smart depreciation vehicle or a relatively safe "coupon-clipper," net-leased properties provide great investments in both credit and real estate markets.
Investment, Banking and Real Estate Editors
Investment, Banking & Real Estate Editors
by Groshan Fabiola
Eurodollars Flow into the U.S. Through Triple Net Lease Investments Germans becoming "landlords" for U.S. firms through passive real estate investments.
Bay Harbor Islands, FLORIDA (October 18,2007) -Triple-Net (NNN) investment opportunities in U.S. markets are attracting the attention -- and funds -- of German banks, REITs and investors, reports Horn Capital Realty, Inc. of Bay Harbor Islands, Florida. "These conservative types of passive real estate investment can be more rewarding than typical real estate ownership because they require virtually no management," says Jonathan S. Horn, President, who has personally handled over $500 million in triple netlease sales, sale-leaseback financing, build-to-suit development and debt and equity placements throughout the United States. "The rate of return and benefits from investing in a triple net (NNN) investment can be greater than your typical real estate investment, without taking into consideration any tax issues," said Horn. His firm has dealt with such large national tenants as Blockbuster Entertainment, Eckerd Drug, Kmart, Home Depot, Wild Oats markets, Taco Bell, Wal-Mart and Walgreen Drug Stores.
A triple net lease (NNN) transactions is typically described as a free-standing facility occupied by a single-tenant on a long-term triple-net lease. A NNN can be described as a bond-like investment encompassed by real estate. A NNN can be structured in three ways: 1. Sale-leaseback financing is structured through the sale of a property owned by a tenant who sells it to an investment group and leases it back on a long-term lease. 2. The sale of an existing NNN property leased to a tenant owned by a third party investor. 3. Build-to-Suit. A developer enters into a long-term agreement with a corporate tenant and then sells the transaction upon completion of the development or before.
A triple-net lease is typically between 10 to 25 years. The tenant pays a negotiated annual rent equal to 6% to 10% of the contracted sale price. Most often that rate is credit-driven. In other words, tenants with investment grade ratings pay a lower rate because they are perceived as less risky, while non-investment grade tenants typically pay a considerably higher rate. This is similar to corporate bonds. A triple-net lease property frees the investor/landlord from any property responsibility. The tenant agrees to pay all costs associated with the property use and occupancy, including real estate taxes, insurance, improvements, on-site property management and maintenance.
Page 2 - NNN Investments
As an example, Horn is currently negotiating a sale-leaseback transaction between a group of German investors and a U.S. retailer, offering 6 single-tenant properties valued at $5 million US each, or $30 million US total. Since the company has earned a high credit rating, the investors have agreed to a flat rental payment of 6.4% for the entire lease term, which equates to a predictable return of $1,920,000 US annually to the investors. With a NNN lease, the U.S. retailer will be responsible for all expenses, including taxes, insurance, management, general and structural repairs, maintenance and improvements. National Real Estate Investor, a leading U.S. trade press magazine has reported, "The sale-leaseback industry has restructured the ownership of trillions of dollars worth of the nation's (U.S.) corporate real estate assets, and the trend seems to be continuing." Another respected publication, Institutional Investor, stated: "The triple-net lease offers a long-term lease with the guarantee of steady cash flow and practically no risk." Primary Investor Benefits "The investor, whether it be a bank, a trust, a real estate investment trust (REIT) or an individual, earns an 6% to 10% yield on the annual lease and usually benefits from a conservative 2% to 5% annual (compounded) appreciation on the property's value. Due to the annual depreciation allowance on the building, an equal portion of the annual yield also is sheltered from Federal income taxes," Horn explained. "For overseas investors, there is the security of both the tenant and the real estate, and there is minimal risk with investment grade tenants, as well as an opportunity for even higher annual cash returns from below investment grade tenants." he added. "The investor owns the property with zero on-site management responsibilities while enjoying an annual high interest cash return on a passive investment. These are bond-type investments with excellent 'coupon clipper'-type of returns." Triple Net Lease transactions generally require a long-term investment of $2 million US to $100 million US or more. Such investments are available for all types of existing or build-to-
Page 3 - Sale/Leaseback & NNN Investments
suit real estate, including service centers, fast food establishments, industrial and health care facilities, office and educational buildings, distribution warehouses and retail stores. At any time, the investor/landlord can cash-out, often with a profit, by selling the property. When the lease term expires, the investor has numerous options: a) Hold the property,; b) allow it to further appreciate in market value; c) lease it again at a higher rate to the original tenant or a new tenant., or d) sell it to a developer to be renovated for a higher use. Horn Capital Realty, known as one of the most experienced, efficient and cost-effective facilitators, specifically focuses on sale-leaseback financing and NNN transactions. The company is currently working with several very large American firms seeking financing for their properties.
by Groshan Fabiola
Eurodollars Flow into the U.S. Through Triple Net Lease Investments Germans becoming "landlords" for U.S. firms through passive real estate investments.
Bay Harbor Islands, FLORIDA (October 18,2007) -Triple-Net (NNN) investment opportunities in U.S. markets are attracting the attention -- and funds -- of German banks, REITs and investors, reports Horn Capital Realty, Inc. of Bay Harbor Islands, Florida. "These conservative types of passive real estate investment can be more rewarding than typical real estate ownership because they require virtually no management," says Jonathan S. Horn, President, who has personally handled over $500 million in triple netlease sales, sale-leaseback financing, build-to-suit development and debt and equity placements throughout the United States. "The rate of return and benefits from investing in a triple net (NNN) investment can be greater than your typical real estate investment, without taking into consideration any tax issues," said Horn. His firm has dealt with such large national tenants as Blockbuster Entertainment, Eckerd Drug, Kmart, Home Depot, Wild Oats markets, Taco Bell, Wal-Mart and Walgreen Drug Stores.
A triple net lease (NNN) transactions is typically described as a free-standing facility occupied by a single-tenant on a long-term triple-net lease. A NNN can be described as a bond-like investment encompassed by real estate. A NNN can be structured in three ways: 1. Sale-leaseback financing is structured through the sale of a property owned by a tenant who sells it to an investment group and leases it back on a long-term lease. 2. The sale of an existing NNN property leased to a tenant owned by a third party investor. 3. Build-to-Suit. A developer enters into a long-term agreement with a corporate tenant and then sells the transaction upon completion of the development or before.
A triple-net lease is typically between 10 to 25 years. The tenant pays a negotiated annual rent equal to 6% to 10% of the contracted sale price. Most often that rate is credit-driven. In other words, tenants with investment grade ratings pay a lower rate because they are perceived as less risky, while non-investment grade tenants typically pay a considerably higher rate. This is similar to corporate bonds. A triple-net lease property frees the investor/landlord from any property responsibility. The tenant agrees to pay all costs associated with the property use and occupancy, including real estate taxes, insurance, improvements, on-site property management and maintenance.
Page 2 - NNN Investments
As an example, Horn is currently negotiating a sale-leaseback transaction between a group of German investors and a U.S. retailer, offering 6 single-tenant properties valued at $5 million US each, or $30 million US total. Since the company has earned a high credit rating, the investors have agreed to a flat rental payment of 6.4% for the entire lease term, which equates to a predictable return of $1,920,000 US annually to the investors. With a NNN lease, the U.S. retailer will be responsible for all expenses, including taxes, insurance, management, general and structural repairs, maintenance and improvements. National Real Estate Investor, a leading U.S. trade press magazine has reported, "The sale-leaseback industry has restructured the ownership of trillions of dollars worth of the nation's (U.S.) corporate real estate assets, and the trend seems to be continuing." Another respected publication, Institutional Investor, stated: "The triple-net lease offers a long-term lease with the guarantee of steady cash flow and practically no risk." Primary Investor Benefits "The investor, whether it be a bank, a trust, a real estate investment trust (REIT) or an individual, earns an 6% to 10% yield on the annual lease and usually benefits from a conservative 2% to 5% annual (compounded) appreciation on the property's value. Due to the annual depreciation allowance on the building, an equal portion of the annual yield also is sheltered from Federal income taxes," Horn explained. "For overseas investors, there is the security of both the tenant and the real estate, and there is minimal risk with investment grade tenants, as well as an opportunity for even higher annual cash returns from below investment grade tenants." he added. "The investor owns the property with zero on-site management responsibilities while enjoying an annual high interest cash return on a passive investment. These are bond-type investments with excellent 'coupon clipper'-type of returns." Triple Net Lease transactions generally require a long-term investment of $2 million US to $100 million US or more. Such investments are available for all types of existing or build-to-
Page 3 - Sale/Leaseback & NNN Investments
suit real estate, including service centers, fast food establishments, industrial and health care facilities, office and educational buildings, distribution warehouses and retail stores. At any time, the investor/landlord can cash-out, often with a profit, by selling the property. When the lease term expires, the investor has numerous options: a) Hold the property,; b) allow it to further appreciate in market value; c) lease it again at a higher rate to the original tenant or a new tenant., or d) sell it to a developer to be renovated for a higher use. Horn Capital Realty, known as one of the most experienced, efficient and cost-effective facilitators, specifically focuses on sale-leaseback financing and NNN transactions. The company is currently working with several very large American firms seeking financing for their properties.
วันศุกร์ที่ 14 ธันวาคม พ.ศ. 2550
Bal Harbour Real Estate: Florida's Paradise
Bal Harbour Real Estate: Florida's Paradise
by Hector Lesende
Bal Harbour is Florida's Paradise. Bal Harbour Shops high-end upscale retailers include Saks Fifth Avenue, Armani, Versace, Valentino and Neiman Marcus among others. Exceptional dining spots are Palm and Caffe Da Vinci. Bal Harbour Real Estate is one the most prestigious, upscale, and spectacular addresses in all of South Florida. Luxurious oceanfront and Intracoastal Waterway views condos like Bellini Condo and Majestic Tower. An extraordinary single family home community is Northern Star. Hotel Resorts has been visited by many US presidents including President Clinton and other dignitaries and celebrities.
Before this city became the busy village that we know it as today, it was just a large tract of swampy land, which had seen face of no developments at all. It simply lay there and stretched right up to Atlantic Ocean from by area. As it is even in today's contemporary times, this little village evokes memories of past times when lives used to be a lot less mundane and schedules far less hectic. This place was not too popular with people and this can be easily understood from the fact that Mr. Graham, who was main promoter of this sleepy and quaint little hamlet, had to arrange for twenty five people to come and live here. He had to make this arrangement because he wanted to get this place incorporated and according to existing laws, a place had to have at least twenty five registered voters in order to be incorporated.
An interesting history lies behind the earliest real estate in this region. During Second World War land was leased out for construction of a Prisoner of War camp. After World War II ended barrack buildings were left behind are and they constituted the first Bal Harbour real estate of this village. It was in 1946 that this place got incorporated for first time. It then functioned under a city managing type of government. Slowly this place started climbing up steps towards development. It had its first hotel, then known as "The Kenilworth By the Sea" which was later rechristened as Kenilworth Condominium. The first home was built in this area in at 160 Bal Cross Drive.
To speak in specific geographical terms this village forms a part of Miami Dade County in state of Florida. Speaking in terms of area covered, it is a very small place, covering barely three tenths of a square mile. But despite its small size, development has taken place over here at a very rapid rate. There is no lack of amenities in this region and living here you might also get deluded into thinking that you are living in some bigger city. Big marketplaces, excellent institutions of education, you name it and this village is sure to have it. Transport too is not a problem in this area. Excellent facilities of communication exist which can be easily availed of.
Bal Harbour real estate is one of a kind and to enjoy all its splendor and facilities, many people have made this peaceful village their home. When the last census took place, it was found that already more than three thousand people made this city their home . This gives a density of almost ten thousand people per square mile, which is higher than several cities. Average prices of homes are on rise and with escalating fortunes of this city it can be presumed that real estate in this region will only continue its remarkable rise in the future. There are 432 homes and condos for sale. Bal Harbour Real Estate is an extraordinary investment opportunity.
by Hector Lesende
Bal Harbour is Florida's Paradise. Bal Harbour Shops high-end upscale retailers include Saks Fifth Avenue, Armani, Versace, Valentino and Neiman Marcus among others. Exceptional dining spots are Palm and Caffe Da Vinci. Bal Harbour Real Estate is one the most prestigious, upscale, and spectacular addresses in all of South Florida. Luxurious oceanfront and Intracoastal Waterway views condos like Bellini Condo and Majestic Tower. An extraordinary single family home community is Northern Star. Hotel Resorts has been visited by many US presidents including President Clinton and other dignitaries and celebrities.
Before this city became the busy village that we know it as today, it was just a large tract of swampy land, which had seen face of no developments at all. It simply lay there and stretched right up to Atlantic Ocean from by area. As it is even in today's contemporary times, this little village evokes memories of past times when lives used to be a lot less mundane and schedules far less hectic. This place was not too popular with people and this can be easily understood from the fact that Mr. Graham, who was main promoter of this sleepy and quaint little hamlet, had to arrange for twenty five people to come and live here. He had to make this arrangement because he wanted to get this place incorporated and according to existing laws, a place had to have at least twenty five registered voters in order to be incorporated.
An interesting history lies behind the earliest real estate in this region. During Second World War land was leased out for construction of a Prisoner of War camp. After World War II ended barrack buildings were left behind are and they constituted the first Bal Harbour real estate of this village. It was in 1946 that this place got incorporated for first time. It then functioned under a city managing type of government. Slowly this place started climbing up steps towards development. It had its first hotel, then known as "The Kenilworth By the Sea" which was later rechristened as Kenilworth Condominium. The first home was built in this area in at 160 Bal Cross Drive.
To speak in specific geographical terms this village forms a part of Miami Dade County in state of Florida. Speaking in terms of area covered, it is a very small place, covering barely three tenths of a square mile. But despite its small size, development has taken place over here at a very rapid rate. There is no lack of amenities in this region and living here you might also get deluded into thinking that you are living in some bigger city. Big marketplaces, excellent institutions of education, you name it and this village is sure to have it. Transport too is not a problem in this area. Excellent facilities of communication exist which can be easily availed of.
Bal Harbour real estate is one of a kind and to enjoy all its splendor and facilities, many people have made this peaceful village their home. When the last census took place, it was found that already more than three thousand people made this city their home . This gives a density of almost ten thousand people per square mile, which is higher than several cities. Average prices of homes are on rise and with escalating fortunes of this city it can be presumed that real estate in this region will only continue its remarkable rise in the future. There are 432 homes and condos for sale. Bal Harbour Real Estate is an extraordinary investment opportunity.
Real Estate Contact Management Software
Real Estate Contact Management Software
by Jose Vanegas
Real estate contact management software is important in today's competitive real estate business.
Today's real estate business is high competitive and success means closing deals. Closing deals is important to success of a real estate business and often real estate contact management software can help with closing a deal. It is important that a real estate business management their contacts and leads carefully and real estate contact management software can help with this large task. Every real estate business should consider implementing real estate contact management software but there are many companies that offer real estate contact management software and it can be hard to make a decision. If you are looking for a real estate contact management software you should consider Prophet, a software offered by Avidian that is both comprehensive and flexible.
Prophet software stands out above the many other real estate contact management software systems.
The company Avidian markets Prophet, an award winning software, and it is the best real estate contact management software to be found. This real estate contact management software will help a busy real estate office to coordinate all their employees. Prophet real estate contact management software will also help make it easy to track sales leads and to close sales. Not only does this real estate contact management software have just basic function that other real estate contact management software systems have, but it also have many unique features that make this real estate contact management software stand above the rest.
Prophet real estate contact management software has many distinct features.
One of the unique features that Prophet real estate contact management software contains is called the dashboard feature. This dashboard feature allows for careful sales tracking and daily reports all generated by the real estate contact management software. Prophet real estate contact management software actually can offer all of this important information immediately and it displays it in what is called the sales opportunity window. All important sales information is displayed in this window by the real estate contact management software. This information includes names, email addresses, and phone numbers. This real estate contact management software helps to make sure that all of the customer information and lead information is kept current. With Prophet real estate contact management software you can be sure that no stone will go unturned and no opportunity will be missed.
Real estate contact management software can help coordinate your real estate business.
Often keeping a real estate business coordinated can be challenging and real estate contact management software can help. Real estate contact management software can help to monitor every opportunity that is available and also show all pertinent information. Prophet real estate contact management software actually has a feature that will send automated emails to follow up on new contacts and leads. Real estate contact management software will help to keep all the sales team coordinated and real estate contact management software will also help to make sure that no opportunity slips through the cracks.
Prophet real estate contact management software can help generate reports.
Often it is helpful to a real estate business to keep track of reports and real estate contact management software can help to generate needed reports. There are 30 reports that are already built into Prophet real estate contact management software and you can also use this real estate contact management software to customize reports as well. It is important to keep track of how your business is doing and that all can see what things may need to be changed and real estate contact management software can help with this task. You can use real estate contact management software to help generate reports that can help identify problem areas and then you can take measure to correct problems. You will also be able to see how much revenue is being generated and how sales are doing with the reports made by real estate contact management software.
You will be able to see more sales when using real estate contact management software.
It is important that a real estate business is able to continually close good sales and having good real estate contact management software can help in the sales department. You will be able to use real estate contact management software to help you keep track of all appointments that are made and keep your schedule organized so appointments are never missed. Real estate contact management software will also enable you to keep track of all tasks that have been completed and those that still need to be assigned. You will be able to make sure that work is being done promptly and that sales are being closed with your real estate contact management software.
Avidian offers Prophet, which is an award winning software.
If you are looking for good real estate contact management software you want to be sure that the real estate contact management software is easy to use and flexible for your business. You also want to find real estate contact management software that is cost effective for your company as well. You can find real estate contact management software that meets all these needs by going to Avidian.com and checking out their Prophet software. Prophet is software that is based on Microsoft Outlook. You can see the features that are available on their website and you will be able to see that Prophet is the best real estate contact management software available on the market today. They have many editions of the real estate contact management software and you will be able to buy what best will fit your real estate business. You will also find that this real estate contact management software has won various awards and can be trusted.
You can see success and increased profit if you implement the use of real estate contact management software into your business.
Every real estate business wants to see sales and profits soar and real estate contact management software can help your business achieve this. Prophet real estate contact management software can help you find more sales leads and can enable you to close more sales, which will lead to more profit. While many real estate contact management software systems do not have all that you may need to succeed in your business, you will find that Prophet real estate contact management software has everything your real estate business needs and a whole lot more. You will be able to use this real estate contact management software to lead your company to higher success within the real estate business. Take a good look at Prophet real estate contact management software and consider implementing it into your real estate business. You will reap the many benefits that can be found when using real estate contact management software.
by Jose Vanegas
Real estate contact management software is important in today's competitive real estate business.
Today's real estate business is high competitive and success means closing deals. Closing deals is important to success of a real estate business and often real estate contact management software can help with closing a deal. It is important that a real estate business management their contacts and leads carefully and real estate contact management software can help with this large task. Every real estate business should consider implementing real estate contact management software but there are many companies that offer real estate contact management software and it can be hard to make a decision. If you are looking for a real estate contact management software you should consider Prophet, a software offered by Avidian that is both comprehensive and flexible.
Prophet software stands out above the many other real estate contact management software systems.
The company Avidian markets Prophet, an award winning software, and it is the best real estate contact management software to be found. This real estate contact management software will help a busy real estate office to coordinate all their employees. Prophet real estate contact management software will also help make it easy to track sales leads and to close sales. Not only does this real estate contact management software have just basic function that other real estate contact management software systems have, but it also have many unique features that make this real estate contact management software stand above the rest.
Prophet real estate contact management software has many distinct features.
One of the unique features that Prophet real estate contact management software contains is called the dashboard feature. This dashboard feature allows for careful sales tracking and daily reports all generated by the real estate contact management software. Prophet real estate contact management software actually can offer all of this important information immediately and it displays it in what is called the sales opportunity window. All important sales information is displayed in this window by the real estate contact management software. This information includes names, email addresses, and phone numbers. This real estate contact management software helps to make sure that all of the customer information and lead information is kept current. With Prophet real estate contact management software you can be sure that no stone will go unturned and no opportunity will be missed.
Real estate contact management software can help coordinate your real estate business.
Often keeping a real estate business coordinated can be challenging and real estate contact management software can help. Real estate contact management software can help to monitor every opportunity that is available and also show all pertinent information. Prophet real estate contact management software actually has a feature that will send automated emails to follow up on new contacts and leads. Real estate contact management software will help to keep all the sales team coordinated and real estate contact management software will also help to make sure that no opportunity slips through the cracks.
Prophet real estate contact management software can help generate reports.
Often it is helpful to a real estate business to keep track of reports and real estate contact management software can help to generate needed reports. There are 30 reports that are already built into Prophet real estate contact management software and you can also use this real estate contact management software to customize reports as well. It is important to keep track of how your business is doing and that all can see what things may need to be changed and real estate contact management software can help with this task. You can use real estate contact management software to help generate reports that can help identify problem areas and then you can take measure to correct problems. You will also be able to see how much revenue is being generated and how sales are doing with the reports made by real estate contact management software.
You will be able to see more sales when using real estate contact management software.
It is important that a real estate business is able to continually close good sales and having good real estate contact management software can help in the sales department. You will be able to use real estate contact management software to help you keep track of all appointments that are made and keep your schedule organized so appointments are never missed. Real estate contact management software will also enable you to keep track of all tasks that have been completed and those that still need to be assigned. You will be able to make sure that work is being done promptly and that sales are being closed with your real estate contact management software.
Avidian offers Prophet, which is an award winning software.
If you are looking for good real estate contact management software you want to be sure that the real estate contact management software is easy to use and flexible for your business. You also want to find real estate contact management software that is cost effective for your company as well. You can find real estate contact management software that meets all these needs by going to Avidian.com and checking out their Prophet software. Prophet is software that is based on Microsoft Outlook. You can see the features that are available on their website and you will be able to see that Prophet is the best real estate contact management software available on the market today. They have many editions of the real estate contact management software and you will be able to buy what best will fit your real estate business. You will also find that this real estate contact management software has won various awards and can be trusted.
You can see success and increased profit if you implement the use of real estate contact management software into your business.
Every real estate business wants to see sales and profits soar and real estate contact management software can help your business achieve this. Prophet real estate contact management software can help you find more sales leads and can enable you to close more sales, which will lead to more profit. While many real estate contact management software systems do not have all that you may need to succeed in your business, you will find that Prophet real estate contact management software has everything your real estate business needs and a whole lot more. You will be able to use this real estate contact management software to lead your company to higher success within the real estate business. Take a good look at Prophet real estate contact management software and consider implementing it into your real estate business. You will reap the many benefits that can be found when using real estate contact management software.
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