Archive for December, 2009
Avoid Top 10 Mistakes Made By Real Estate Investors
Real estate investment is perhaps one of the most lucrative forms of investment today. But it is also equally risk bound especially when one is not well versed with the trends and nuances of the real estate market. So if you are contemplating on investing in real estate it is best to avoid costly mistakes in real estate investment especially when you invest your hard earned money into it. Knowing the most common mistakes made by real estate investors helps one steer away from making such mistakes in the future and ensures good return on investment.
Here are the top ten mistakes made by real estate investors according to bankrate.com. Bankrate has put together the top ten mistakes after speaking to established fulltime real estate investors and other professionals involved in real estate investment such as bankers. Read on to know them and avoid them.
1. Not planning up ahead. Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal and then trying to see how they can fit it into their plan. Instead of buying a house and thinking one can plan in due course investors should rather concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment model but also works out well with the numbers they had planned for.
2. To believe you can make money quickly. The second major mistake that real estate investors make is to think it is very easy to get rich in real estate. This is only a myth and the reality is that investing in real estate is a long term project.
3. Doing it singlehandedly. For becoming a successful real estate investor one needs to build a team of professionals who would assist the investor in his deals. This would ideally include a real estate agent an appraiser a home inspector a closing attorney and a lender.
4. Making excess payment. One another reason that investors in real estate goof up in their investment is by paying too much for the properties they buy. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.
5. Leaving out the groundwork. Not doing your homework could be a costly mistake if you were a real estate investor. Every field of business needs sufficient amount of homework to be done and real estate investment is no exception. Learn the fundamentals and then venture into investing in properties.
6. Throwing caution to the winds. Investors have to exercise a certain degree of caution and take earnest efforts while making a deal. New investors often fail in this regard and sign a deal without doing adequate research on the property.
7. Miscalculating money flow. Investors whose strategy is to buy hold and rent out properties need to ensure sufficient cash flow for maintenance. Property managers could be expensive and the owner has to incur more expenses such as mortgage taxes insurance advertising costs etc. Investors have to allocate their budget such that all these expenses are taken care of or end up having their asset turn into a liability.
8. Lowering the volume. A larger volume of deals or transactions helps in increasing the profits by reducing the impacts of marginal deals.
9. Getting trapped in your own deal. Having more number of options at hand for the property you buy is a wise strategy. This helps one to be prepared for fluctuations in the real estate market. Plans to rent out the house could go awry when the rental market slumps. Having alternative plans helps you cut down losses and tackle unexpected situations.
10. Making incorrect estimates. People who plan to rehab their house need to check if they will still reap the benefits at double the time that they had estimated. This ensures they do not miscalculate and lose money on the deal.
About the writer: None
Atlanta Apartment: Finding The Right Atlanta Apartment Finder
You dont have to be lucky to find a great Atlanta apartment. All you have to do is use the help offered by an Atlanta apartment finder to achieve your goals. Not sure what were talking about? Read on well explain.
Some of the most common mistakes made by people when looking for an Atlanta apartment is that they simply neglect to take certain things into account. The reason for that is obvious: as humans we tend to take things for granted and only realize what weve had until its gone. If thats you then dont worry we all do it.
So what should you keep in mind when looking for that spacious comfortable and most importantly affordable Atlanta apartment? How do you choose the right Atlanta apartment finder?
Convenience is one thing. Though keep in mind that its an umbrella term that includes the following:
- Transportation. In a world that is going green environmentally that is more and more people are depending on public transportation to get them from point A to point B. And while this is already admirable on its own you cannot neglect the fact that by taking public transportation youre saving money too. So access to public transportation is a definite must!
- Amenities. Now if you look in the dictionary amenities is defined as elements that put you at ease. What this means in terms of an Atlanta apartment are those facilities those shops restaurants clubs and malls you want to be close to to ensure that you get to live a life of comfort without having to travel too far just to buy a loaf of bread a bagel or go for a drink with your friends.
So having said that the focus now falls on what an Atlanta apartment finder can do for you. Well if the particular Atlanta apartment finder has your best interests at heart then access to transportation and a list local amenities should be stated upfront. This will immediately give you an idea of whether that is the place you want to live in.
But theres more. Because most people will be looking for an Atlanta apartment online because its too expensive to go there just to look for a place to live theyll need to get a feel for the place they might be staying in. As such floor plans will become your new although temporary best friend. An Atlanta apartment finder that includes floor plans of the apartments it lists can be seen as someone who not only knows their business and their clients but someone that wont hide little things until you get there by which time it would probably be too late to cancel.
Other items to consider when choosing an Atlanta apartment finder include a description of the community youll become part of because not enjoying your neighbors spoils the experience distance from the attractions you dont want to spend all Saturday travelling to the museum and perhaps most importantly rental rate self explanatory. If you have any ideas that we havent mentioned add them to your list to ensure that you get the best Atlanta apartment there is.
About the writer: Atlanta apartments are plentiful but how do you choose the right one? The secret lies in finding the right Atlanta apartment finder to help you locate your next comfort zone. JAMCO Properties can help you to find the right owner managed Atlanta apartment .
Are Realtors Serving Their Clients
Over the last few months I have noticed a disturbing trend in South Florida Real Estate. One that seems to be getting worse. I work seven days a week for my clients. I am always available to them or to other Realtors to provide showing instructions or answer questions about properties. As the market has slowed here with short sales being in the majority and with the closing of firms it seems like the quality of Realtors are deteriorating.
Let me give a case in point. Last weekend I called for showing instructions on seven homes. I received showing instructions for four of them and of the other three two I never received calls back on after leaving numerous messages and the last was disconnected.
This weekend I tried to contact the three we could not see last weekend. Two never called back. I contacted the agencies and still could not reach them or get showing instructions. The third I spent 45 minutes tracking down. I went to the DBPR and found out the agent had changed firms. I finally tracked her down. When I did get in touch with her she told me that the house was not really for sale. She said the sellers had changed their mind and had no answer when I asked why it was still listed.
These agents are doing their clients a great disservice. It is their duty to be available to provide showing instructions or at least provide them to their offices. When looking for an agent I would advise a homeowner or landlord to find out how the agent provides this information and also check on their availability. Houses cannot sell or rent themselves. We are paid for a service and it is an agents responsibility to provide that service. If they cannot they are of no benefit to a seller or landlord and another agent should be found who is accessible.
There are also other problems that I have experienced. When I go out for listing appointments I try to give my clients an accurate comparative market analysis of what their property is worth. I have other Realtor give a seller a higher analysis just to get the listing. Later on I have watched as they have lowered the price. It has eventually been sold or rented at the price which I had originally presented.
Should this be considered a violation of ethics? Do we owe a responsibility to our clients to present with an accurate representation of what their property is worth? To me the answer is yes. I owe a duty to my clients to present them with the true facts and accomplish their goals in the fastest times with the best results. By pricing their property too high I am not assisting them.
As the market has declined I believe that Realtors must hold themselves to a higher standard. We must go above and beyond to achieve the results that our clients deserve. It is a tough economy and we must gain the trust of our clients and do everything possible to assist them in every way.
About the writer: Lang Real Estate is a company dedicated to helping consumers find the home or rental of their choice with no worries. Visit www.lakeworthpropertiesties.net or www.southfloridarentalshomesales.com to find all the necessary tools you need to assist you.