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Archive for the ‘Real Estate’ Category

Want to know how to make money in real estate? Start a business in your home that pays you enough income to maintain the expenses of owning the home and still allows you to accumulate assets..

Oh did you mean how to make money with real estate as a vehicle? Well that is easy, buy low and sell high.

The rules never change but the playing field does. The playing field today is littered with broken rules , broken dreams, and injured players. As I am fond of saying, in times of chaos there is great opportunity.

The opportunities that abound today are a bit harder to recognize but nevertheless they exist. So without further attempts at levity I  will share two of them. Read the rest of this entry »

This darling 3 bedroom, 2 bath home has 1,470 square feet and is currently for sale.  It rents for $750 and the asking price is only $33,000 making it a great investment opportunity.

For more information on this property call WABroker at (916) 454-5400.

I  had a conversation recently with some long time clients who told me they were excited about the rebounding economy, the rise in home prices and the way the stock market is rebounding.

These clients went on to say that their landlord would sell them the home they were renting at a very good price and carry the loan himself. (They were renting after moving out of their dream home which  they had recently  lost in foreclosure).

I asked why would they pay more than they were already paying to live in the very same house and also owe the taxes, insurance and then become responsible for all the maintenance? Read the rest of this entry »

The most important thing to remember when purchasing property is to be realistic. Some people have the desire to buy, but lack the financial ability. Do not attempt to buy property that is too expensive for your budget. Especially now, do not attempt to buy property simply to receive a few thousand dollars in tax credits.

Before you buy, make a list of essential features on your target property. Organize this list starting with your must-haves, such as number of bedrooms. The list should end with features you would like to have, such as a pool or deck. Use this list to help you decide which properties fulfill your needs.

Take your time to ensure you are making a good purchase. If you don’t find what you want, don’t invest. Buying the wrong property can become a burden for the next decade.

Remember, a good investment should improve the quality of your life. If your new property is more taxing than rewarding, it probably isn’t a good investment.

Homes with structural problems can be difficult to sell. If your home has improper drainage affecting the foundation, mold and asbestos, or electrical issues, you must disclose these problems to potential buyers. If you fail to disclose information about structural defects, buyers can sue you for knowingly selling an unsafe property.

In addition, homes with structural flaws are difficult to sell because lenders are often unwilling to finance homes with substandard structures.

There are more than just legal issues associated with trying to sell a structurally damaged property. Homes in poor condition are not attractive to potential buyers. Buyers do not want to see moldy wood in the bathroom, broken appliances or additions without permits. These flaws will scare buyers away or result in a low sale price.

Conversely, well-maintained homes attract buyers and invite higher offers. Houses which are clean, well-ventilated and free of structural problems are appealing to buyers because they can visualize themselves in the property in its current condition. Homes which are move-in-ready can sell more quickly and for higher prices.

If your property has structural problems which make it unappealing to buyers, you can spend time and money making the repairs yourself. Or you can attempt to sell your property to a cash buyer. Cash buyers are often investors who are more willing to buy properties which need structural repair. Because cash buyers do not need a loan, the lender can not prohibit the transaction because of structural flaws.

If you are trying to sell a property with structural problems, contact WABroker for more information. We can answer your questions, get you cash offers, and handle the paperwork with no cost to you. Its fast, easy and free. Call (916) 454-5400 or fill out the form below.

While getting a few thousand dollars back on your taxes sounds good, the homebuyer tax credit is just one piece of the puzzle. If you are buying for the right reasons, the tax credit is a great bonus. However, don’t chase tax credits or rebates just to receive a little money in return.

Remember to decide what you can afford before you shop. You know how much you would reasonably be able to spend on your monthly mortgage payment, and you know how much money you can allot for a down payment. Do not let the lender tell you what you qualify for. Instead, ask your lender what your budget will allow you to purchase.

Always stick to your budget. (It’s easy to get caught-up in the excitement of the game–that’s why slot machines make noise!) Buying a house should not be a gamble. Purchasing property should be a well thought-out plan. This is still a foreign concept to many first time homebuyers, many of whom are attracted to the tax credits for the wrong reasons.

For help buying a home, you should choose an agent that has a proven track record in this current market. You also need a good lender. Idealy, your agent and lender should work together to produce a successful transaction.

Remember to think first and consider everything together before setting your budget. Pick your own comfort zone. Never let someone else tell you what you can afford. When you buy a property after careful consideration, tax credits become an added benefit to your already successful purchase.

The Real Estate business in the 1970s is far from what is is today. Clients had to look through huge books of listings, manually filtering through rows and rows of information. There was no way of knowing if the information in these books was accurate or outdated. Realtors hoarded pocket listings—private listings they kept concealed in their pockets in hopes of earning a higher commission. Each county had its own board of realtors and its own listings which excluded agents from out of town.

None of these common practices were of any benefit to the clients.

With the introduction of computers, the business slowly begin to turn away from this old practices. Soon multi-county databases widened the scope of local Real Estate just a little bit more. However, many agents were still unskilled and unsupervised, and the old mentality lingered: people from out of town are unfit agents.

Then came the Internet and with it a revolution that changed the world forever.

Eventually, Real Estate boards considered combining into one large board. However, this idea is still being debated today, as some people would lose their jobs due to downsizing.

Soon, people from all different professions began to create websites where everyone could share information, post listings, and view available properties.

The one site to rule them all already exists: the Internet.

Since the advent of the Internet, the entire Real Estate industry has been turned upside-down. But few have noticed because few understand that the industry is filled with myths, misunderstandings, corruption and lies.

Two major industries routinely violate American minimum wage laws: farm labor and Real Estate. It is entirely legal for a Real Estate company to hire an agent to answer phones and attend meetings and also expect the agent to spend personal finances on travel, education, licensing and fees.

Agents work as independent contractors who receive nothing without successfully completing a transaction. By any objective standard, agents are employees who are entitled to minimum wage but they often work several months without pay.

The national trade organization for the Real Estate Industry (NAR) boasts the largest membership of any trade organization and asks us to believe in its ethics and strict code of conduct. In reality, all the NAR requires for membership is monthly dues and proof the member has a Real Estate job. They are not monitored by any government agency and rarely if ever monitor their local affiliates.

That was the tip of the dirty brown iceberg we called Real Estate. It was characterized by unskilled and unsupervised agents, working mostly without pay, blindly advising people on the single largest monetary transaction of their lives.

Widespread use of the Internet revolutionized the Real Estate industry by giving everyone– professional or not–access to information anywhere, anytime.

Even with this new tool, we still need to understand how to make the Internet work for us in Real Estate transactions. Without an understanding of the ground rules, there is little chance for long term gains. Without reliable facts, you can’t make informed decisions. Without expert analysis of the volumes of information available, you are swimming in a sea of ones and zeros. The data is constantly changing and the rules are constantly being adjusted.

Welcome to Real Estate 0.0

These articles are intended to guide your understanding of how to filter through the myths and lies of the past and obtain facts and analysis that you need to prosper now and in the future. In the age of free information, the expert analyst is king.

I can show you the best methods for choosing a Realtor, Real Estate company, and Broker. I can show you how to search for a home, stop foreclosure, and find the best deal. I cannot show you how to get rich quickly in Real Estate. Anyone can make money in this industry, but only with hard work over time.

Your best chance for success in Real Estate is to collaborate with a team of skilled professionals. Even after mastering the skills you will learn here, why not use a team of willing and able professionals, especially when I can show you how to get someone else to pay them for you?

This is not a trick or a gimmick; it is the customary practice of the industry. If it interests you to have the best employees work for you and have someone else pay, the real question is, how do I find these people and when can I begin?

Since the Internet has made it possible for people to communicate across area codes and through different time zones, we are more connected to each other than ever before.

The Internet, which functions as one large machine, unites all of us. By going online, we become the machine.

In our one world, there is only one real estate company. In this one company, we are the owners and employees. You, me and anyone who wants to buy and sell are in control of the one company.

This concept may be difficult to grasp at first, but you are going to be the first pioneers to learn, understand and use this information to your advantage in Real Estate.

A place already exists where you can view every property for sale on the planet: the Internet. All you need to understand is how to ask the right question in order to get the correct answer.

Through an increasing network of willing and able real estate professionals who understand the inherent value of reliable information, client service, and fair dealing, you now have access to all the tools you need to make a buying or selling decision. You can use these tools for any property, anywhere, at any time.

Does this sound too good to be true? As Kevin Kelley noted in speech in the 2007 EG conference, “we have to get good at believing the impossible.”

Once you accept the basic premise that there really is only one big real estate company, and that it is you and I who share the reins, then you can begin to comprehend the interconnectedness of this industry.

The person with the knowledge of the process, along with the ability to accumulate and analyze the relevant data needed to make an informed decision, is the only one you need to know to be successful in Real Estate. Get this person on your team of willing and able professionals before you make a decision to buy or sell.

According to the California Association of Realtors, 84% of buyers use the Internet to search for homes.

Unfortunately, at least half of the information on the Multiple Listing Service (MLS) is erroneous and none of it is guaranteed. The bottom of every print-out reads: “All measurements and calculations of area are approximate. Information provided by Seller/Other sources, not verified by Broker. All Interested persons should independently verify accuracy of information.”

Translation- we have verified nothing and expect you, the buyer, to verify everything.

Why are the most popular websites for searching so useful in finding possibilities, but unable to establish value? They allow you to search but restrict research on the properties you find.

Which is more important to you:
A) the price the seller would like to obtain,
B) the actual current market value of the property, or
C) the actual market value of the property in the near future?

You need an experienced professional with skills such as appraisal and data analysis including trending and extrapolation ability. Only a few Real Estate professionals possess these skills.

MLS does not give the public access to necessary information for determining whether the value of the property is increasing or decreasing. MLS allows you the see what is for sale, not what has already been sold. They let you search, not research.

Other useful information you need as a buyer are facts on how many times the property has been sold at what price. Does the property already have multiple offers? Are you required to use a special contract to make an offer which binds you to action, but permits an REO seller to come and go as he pleases?

Without a Real Estate professional’s access to the complete MLS database, detailed information is only available through much labor and expense. Skilled professionals can do these things quickly at little to no cost.

An informed decision is the only type to make when you are spending hundreds of thousands of dollars on an asset that may or may not be worth anything near that amount. Get this willing and able professional on your team if you want research.

Research establishes the difference between a simple home search and home research. Research exposes the hidden facts from basic home search websites, and provides suggestions as to how to obtain the information needed for making a proper buying or selling decision.

Click here for access to WABroker’s awesome Home Search tool to begin searching for homes in the greater Sacramento area.

http://wabroker.com