Some people are drawn towards real estate investing as it promises huge returns while some are naturally inclined to this business as they find their calling in real estate investing. Whatever be your reason for getting into this business, you ought to be prepared and arm yourself with the right knowledge if you wish to ensure success.
Money indeed is an important aspect of real estate investing but there are die-hard investors who have established themselves with little or no-money. So you need to be absolutely passionate about the business to succeed, money comes secondary.
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Understand it’s complicated
Investing in real estate has become hugely popular over the last five decades and many people have changed their fortunes by investing in this industry, but you need to know that it is a complicated business. It is not as simple as investing in stocks and bonds. Just as the gains are high, stakes are also high in real estate investing. Continue reading
Real estate investment is often more attractive compared to other forms of investment. However, when it comes to real estate, you have a choice between commercial and residential properties. Most people opt for residential properties, as the risks involved are low and this gives them peace of mind. On the other hand, people with great risk appetite can opt for commercial real estate. But, before you decide which type of investment is right for you, take time to understand the difference between the two types of real estate. This will help you make an informed decision, so that you get the maximum returns from your investment.
Difference between Commercial and Residential Real Estate
As the name suggests, commercial real estate refers to buildings or land that are meant to garner profit for the owner. Usually, this type of real estate generates an income and can include residences and housing that are rented out to tenants. However, the term commercial real estate often refers to buildings that are used as offices, stores, shops and storage. The aim of such real estate is to attract people, who have sound knowledge of business and the finances to maintain the business. Continue reading
Earlier when people used to buy homes, they were told to be careful as sellers were under no obligation to tell buyers about flaws or problems with the house. As a buyer, you had to be responsible for finding out everything about the house, zoning laws and defects and problems. Thankfully, over the years things have changed and now majority of the states have laws that protect the buyer.
So, if you are a homeowner and intend selling your home, make sure you know the major defects in your home. If you do not inform the buyer about these defects, it is illegal and can result in a lawsuit. Continue reading
A landlord’s job does not end after renting out the property to a tenant. It rather begins from there as he will now have to look after the repairs and maintenance requests that the tenants would make. Alongside, he also has to make efforts to maintain a healthy relationship with the tenant.
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Despite all the regular maintenance you would be doing for your property, certain repairs and other costs always come in unexpected and you need to be prepared to deal with these financially. To be a successful landlord in the long term it requires you to be diligent while handling repairs and maintenance requests of tenants. This not only helps you maintain a cordial relationship with tenants but also helps you upkeep your property in a very good condition. This again, would help you get a well paying tenant in a much shorter time frame. Continue reading
When going out for a vacation most people are concerned about the security of the apartment. To make sure there are no shocks waiting for you back home when you return from an exciting holiday, you need to take care of a few basic things. Here we offer some key tips that will keep your house secure and help you remain stress free when on a vacation.
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1) Do not make a public announcement on the social media about your absence
It feels good to share your next vacation destination and plan with your friends but you never know who else apart from your near and dear ones are keeping a tab on your announcements. So stay away from making public announcements about your vacation plan. It could act as an open invitation for burglars. Continue reading
The real estate market has many opportunities for investors. If you can target the right tenants, you can easily build a tidy nest egg. The key is to target a niche demographic – college and university students. Most landlords think twice about renting out their properties to students, as they worry about the place getting trashed during wild frat parties. However, this is not true. While there are a few risks renting out your property to students, it can turn out to be a lucrative business deal for you.
Typically, college and university students have to stay in dorms. However, they don’t get the privacy they need. And, renting a property is the perfect solution for them. If you understand the advantages and risks of renting to college students, as a real estate investor, you will be able to make an informed choice.
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Advantages of Renting to College Students
Here are some of the benefits of why you should be looking to rent your property to college students.
Huge Demand: With the economy not showing signs of full recovery, many people are going back to college to continue studies and improve their job prospects. These are students, who are slightly older than regular college students and are looking for a home away from home. Continue reading
When starting a business, many owners opt for financing to buy their own premises. However, this immediately puts a lot of burden on the owner and business, as it takes time to setup a business and get it going. On the other hand, opting for a commercial lease could offer the perfect solution. Not only can you get access to a space, you also can immediately start doing business. However, when choosing commercial real estate, it is important to choose the right leasing option. After all, the commercial lease you select will have a profound effect on your business.
Commercial real estate lease is formulated based on net or gross rent calculation. Hence, it is imperative that you know the different types of leases to make an informed decision.
Also, known as the full service, gross lease option allows businesses to pay an all-inclusive rent to the landlord, who, in turn, takes care of all the associated expenses, such as taxes, insurance and maintenance. Even janitorial services and utility bills are part and parcel of the rent. The commercial lease is easy, as it does away with unforeseen expenses that the property may incur during the term of the lease. It makes it easy for businesses to forecast their expenses. Continue reading
When you are selling your home, make sure you follow the law to the T. If you deviate from the law, you could end up losing a lot. Typically, when you and the homebuyer decide to close the deal, you have to sign the purchase agreement. Once you pen your signature on the agreement, you are legally bound by the terms and conditions mentioned therein. Hence, make sure you read the contract carefully. If you don’t understand any part or section, consult your lawyer. If the purchase agreement specifically mentions that you, the seller, have to make specific repairs, you are obligated to do them. Whether there is a liability is a different matter altogether.
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Any prospective homebuyer will always have a home inspection done before negotiating the deal with you. This inspection tells the potential buyer the problems that the house has and the expenses he may incur in the future to rectify those problems. Continue reading
When it comes to remodeling homes, owners are too busy choosing which marbles would look good on the floor or selecting tiles for the bathroom. They are hardly aware of the need for requesting permission from the municipal corporation for getting their house remodelled.
In a survey conducted by the City municipal, out of every 100 people only 10-20% admitted requesting for a permit to remodel their home. While many times people are unfamiliar with the laws, a large number of people do not seek permission to avoid the hassles which tag along the permission process. However, they deeply regret not having taken permission when the house goes for sale.
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Implications of not taking a permit when the house goes on sale
When putting up their property for sale, home owners need to disclose if they have done any remodeling work in the house and they need to verify this with permits. Besides, when evaluating house for a buyer, a home inspector would definitely probe if necessary permits were taken. Even the buyer’s appraiser would demand permit records to verify the legality of any home remodeling job. Continue reading
The big question any homeowner has – should I stay where I am and get my home remodeled and renovated or should I just move to a new place? If you check with family and friends, some will tell you to leave your old home and find a new one; while others will tell you that remodeling is the best option. Making a decision can be overwhelming when you get mixed advice from trusted people in your life.
However, before you follow through on the advice you receive, here are some questions you should ask yourself. If you answer these questions honestly, you will be able to make the right decision without any hassles.
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Do you like your neighborhood?
The neighborhood where your home is located is extremely important. If you love staying in the area; your kids are happy with the school; and you have all the amenities you require, there is no need to uproot yourself and move to a new neighborhood. Basically, what this means is if the neighborhood suits your needs, it is the right place to stay put. Continue reading