Property Guys

There are some distinct differences between vacation home plans and traditional home plans. The plan of a vacation home usually have specific features which may include more of an open floor plan and living area, decking area, indoor sports room for a pool table and other activities, patio area and a screened room offering a fantastic view. Location is important for vacation homes and popular areas include in the mountains, on the waterfront or close to the beach. The style of home will depend upon the location and local planning consent but could vary between traditional, Victorian, Prairie style, contemporary or cottage.

The process of developing your dream vacation home can prove stressful and you will need a strong determination to drive the project forward to a successful conclusion and overcome any barriers which hinder progress along the way. It is a good idea to consult a professional who will be able to offer expert advice on every aspect of the house, whether this be from an engineering, design or project management point of view. Compromise may be necessary during parts of the development process so it pays to be practical and reasonable in your demands, but make sure the key aspects you specify within the house are delivered wherever possible as this is your investment and will help to determine the quality of the time you have while enjoying your new home or rental income it may generate if you decide to let it out in the future.

Although many rental homes have great amenities and are beautifully furnished the big advantage of developing your own vacation home is that you have control over not just the exterior look and style of the property, but can also determine the interior feel. This comes down to details as choosing the perfect fire surround or having that sensational glass dining table you have always dreamed of.

You may not realize it, but the real estate investor who is typically called a slumlord is providing a needed service. Though there are those who are truly taking advantage of people, many who are given this ignoble title are simply providing affordable housing. If a family rents an ugly house, which needs paint and has a dirt driveway, it is a safe bet that they do so because it is the best thing they can afford at the time. If it was not available they would be in worse housing or in a worse financial situation because of higher rent. It is condescending to assume that people are too ignorant to see what their best option is just because they have a low income.

From the perspective of a real estate investor who wants a decent return, ugly homes are an opportunity. Generally unwanted by home owners, they sell for less. They also rent for less, but not too much less, and so usually provide more cash flow than “nice” rentals. This makes sense, since the houses will need more maintenance and rent collection will be more trouble on average (lower income makes it difficult for renters to budget for emergencies AND the monthly rent). If the average return was not higher, not even the most generous investors would want to buy or build these properties.

Looking at the whole picture you can see that an ugly house is an opportunity for a renter and an investor. With that in mind, here are three guidelines for investing in and operating these rentals. In other words, this is how to be a good slumlord, if that is what they call you.

1. Put safety first

The whole idea of high-cash-flow low-income rentals is to keep your costs down so you can rent low enough for the market and still make a decent profit by providing this service. As a result, you will never put a $800 refrigerator into these homes. You’ll probably buy used ones. On the other hand, you should never neglect those things which are necessary to keep the home safe. There is a big difference between having a dusty yard and a broken set of steps.

This isn’t just a financial matter. Of course you face lawsuits if your negligence leads to injury - as you should. But this is a matter of human decency as well. Being a wise investor does not exclude being a decent person nor does it excuse knowingly endangering your tenants. Let your rentals be ugly if the savings from that make them affordable for the renters and profitable for you. But don’t let them be unsafe.

2. Be open and honest with tenants

Don’t pretend that you have something more than you do. If you have a dump, prospective tenants can see that. Openly admit it and let them know that the condition of the home is why the rent is low.

Don’t pretend you’re not making money. In fact, let them know that a profit is your goal, and that if and when they can pay more, you’re willing to raise the rent and make improvements. Show some respect. They see what they have, and they are only living there until they can afford a better place.

3. Prepare for the unexpected

It may seem that you cannot prepare for what you cannot predict, but this isn’t true. Whatever the specifics are, there will be surprises, and the easiest way to be ready for them is to have some money set aside in a contingency account. When I had a mobile home for a rental, the furnace died one day while I was at work: $1,400. Another time the tenants had to choose between paying the rent and buying medicine for their sick son. You can guess what that meant (I don’t know if I would really want renters who would choose to pay rent in this situation). Set aside money.

Why Be A Slumlord?

Suppose a two bedroom house costs $130,000 and rents for $825. Somewhere nearby an old mobile home on a lot will probably cost $45,000 and rent for $600 or so. If the house costs nearly three times as much, but the rent isn’t even doubled, which do you think has more cash flow? If you got that you can understand why ugly houses and mobile homes (on land) are often the real estate investors ”cash cows.”

The downside? You will have more risk and management problems. The rent will be late more often, on average, and there will be more repairs. For these reasons you deserve a higher rate of return, and if you’re ready to be called a slumlord, you’ll get it. Just treat your tenants well, and make your rentals safe, so  you can honestly enjoy that profit.

First I Was Skeptical, But After Giving “Home Made Energy” A Fair Trial, I Saw First Hand
How Much Money You Can Save…

The first and most important step is to seek out quality detailed instructions. Home Made Energy.

Plenty of people have been looking into installing solar panels in an effort to combat rising energy costs

It can be done. But until very recently this was very, very expensive.

Luckily, Bill Ford figured out a way to build a solar or wind generator for $200 or even $100.

I was skeptical at first when I saw their website. However, seeing that they provide a 60-day money-back guarantee, I decided to give it a fair trial.

And I was very pleasantly surprized by the whole experience with their product.

It taught me how to easily build a solar or wind generator. And I’m not an engineer or anything like that. It was that they specific details on where to get every piece and instructions on how to put everything together.

After about 6 hours spent on it and $170 invested, I had my own solar panel.

After another 5 hours spent and $120, I had my own wind mill genrator.

I just had to try both these systems. And I had a lot of fun while building them.

Is “Home Made Energy” The Best Solution
For The Energy Problems We Are Facing?

I would say a big YES! Otherwise I wouldn’t even bother to write about this.

You can buy a wind or solar generator and pay someone to install it. But from my research this will cost you at least a couple thousands dollars.

And the DIY products from Home Made Energy will generate all the electricity you need, with only a tiny bit of any other investment, whatsoever.

From solar panels, hydropower and windmills, there is growing curiosity in off grid living and breaking free from fossil fuel burning power plants

This small thing that I’ve done for my home will save me this year thousands of dollars.

Not only is it going to save you money to build solar panels yourself, but you can feel proud that you are doing your part for the environment as well

Otherwise you can rely on someone else. And you probably know how costly and frustrating this can be some times…

So, if you consume any electricity at all, this product is for you. I mean, you can even take your generators to family picnics. Yes, that means portable electricity!

Are There Any Negatives In Home Made Energy?

If I want to get really fault-finder about this, I can probably think of one or two minor things that weren’t great about the product:

1. It is important to realize that solar electricity systems work intermittently or only when the sun hits them. This is not a problem if you utilize battery backup systems or are connected to the grid.
2. Home Made Energy comes as an electronic book (eBook). I would have probably liked more to hold a genuine printed book in my hand, without having to print it myself. But they do have a good reason for providing only an online version. They update the guide on monthly basis. They collect the information from users and also publish their latest discoveries when it comes to renewable energy. Plus another benefit to this is that you have instant access to it. It took me less than three minutes until I could read my own copy of Home Made Energy.

Other than that, I give to everything a 10. The product gives superb value for the money.

If you care at all about how much you spend or about a healthier environment, you should grab this product now. I’ve research for more than 2 years now and I honestly haven’t found anything like it, by a big margin.

There are some other guides for DIY wind and solar generators, but all of those that I’ve read don’t get into the same details as Home Made Energy.

Conclusions

This product is the best product I have bought in the last five years, at least. Quality is great. Value is superb.

If you want to save money on your electricity bill, be energy independent, or even help our environment, then you need to grab Home Made Energy right now.

Start of Something New

Estate investing can be an everyday learning experience for both novice and successful property investors. What matters really is that if you want to deal in the property market and build a property portfolio you would need to buy properties sensibly and well researched. To get firsthand experience in real estate investing you could initiate by working with a property investment company. Various people have started their own investment portfolios through these sorts of methods.

Financing your property investment

The reason we bring this up first is due to its importance. Getting professionals to assist you in balancing your check book is absolutely vital. You can seek aid from a number of professionals who can shepherd you through this important first step. Among the professionals that can assist you and get good deals are mortgage brokers and experts in the financial field. The correct financing of your assets is the initial key to succeeding in making investment profits.

Register Yourself to a property investment club

If you desire to make even more money from your investmens and are confident I nyour abilities, try out an investment club. This would provide you with the opportunity to interact with other successful property investors and help you learn much more about the property investment market. Over time, you can hobnob with some really important investors at various seminars.

Why they help

The members of such clubs have plenty of experience in real estate consulting and some of these people invest in overseas real estate. You can learn both local investment situations and those that occur abroad. Many memorable deals can occur as a result of being in these clubs.

Property Management Corporations Can Assist You

If you are not satisfied with the property investment appraisal that investment clubs offer, you can also try your hand at property management companies. Rental investment experience is a major component of what you get out of management companies. There is some particular risk in rental properties, yet they can reward people greatly. The rental property investment involves both residential and commercial real estate investing.

What Else

Residential income property concerns profits by leasing apartments and flipping real estate by using off-plan property investments. Making money through real estate flipping involves good financial planning in order to quickly close deals. Being knowledgeable regarding real estate is key, as is locating eager sellers. Once you close the property deal, you would have to market the property correctly so that you make a sale with a sizeable profit.

Taking Part in Property Management Corporations

If you are not satisfied with the property investment appraisal that investment clubs offer, you can also try your hand at property management companies . Rental investment experience is a major component of what you get out of management companies. The rental property game offers great rewards…but some risks, as well. Commercial and residential real estate are each components of rental investment .

Most new investors in fixer uppers have the basic idea that you buy a house in need of some repairs and cleaning, you fix it up and sell it for a profit. That’s a good start, but how do you know if there will be a profit, and what changes to make? Many investors have lost money on their renovation projects, after all.

You have to have a clear idea of the profit potential before you make an offer on a house. How do you do this? Try the following five steps.

1. Make a plan for repairs and improvements.

2. Determine what the house will sell for when it is ready.

3. Estimate the total expenses for repairs and all buying, holding and selling costs.

4. Decide what you would like for a profit for the project.

5. Subtract all projected expenses and your desired profit from the estimated selling price. The resulting figure is the most you can pay for the house if you want a safe investment. You’ll want to make an offer lower than this to leave room for negotiations.

That’s the safe formula for fixer uppers. It is much better than the “intuitive” process that loses so much money for unprepared investors. But it doesn’t answer the question of what repairs and improvements to make. There are two important principles to consider when deciding that.

Fixer Uppers - What To Fix

The first basic principle is to do those things which pay the most for the money spent. It can be easy to put more into a fixer upper than you can recover, so you want to choose those repairs and improvements that do the most to increase the value of the property. For example, painting kitchen cupboards might cost you your time and $25, or $125 if you pay someone to do it. They may look new as a result, and so add $1,000 or more to the selling price of the house.

Actually installing new cupboards could cost $6,000 and add only $6,000 or $7,000 to the home value. In that case, the painting is clearly a better value. Of course, there will be times when the new cupboards make more sense, especially in some high-end homes. Do the math.

As you consider the options you have, always think of return on investment. You may need the help of a good real estate agent to determine this. Describe the house with all your planned changes done and see what an agent thinks it will sell for. Try another set of improvements and see if that has a better return. As you gain experience you’ll know what buyers in your area value, and so what changes will pay the most. And always look for all the simple high-return improvements, like a new mailbox, a few flowers and a thorough cleaning.

One thing not mentioned yet is the cost of time. Some repairs and improvements add not just the cost of the change itself - the materials and labor - but also add to the time the project takes. Every day that goes by you are paying for interest on loans, electricity, heating, water, insurance, property taxes, and other holding costs. You have to take those into account, which brings us to the second principle: As much as possible, do those things which make the fastest return on your investment.

Suppose new windows are a possibility, and will add about $8,000 to the value of the house, while costing you $6,500. It seems that you make a profit on the investment, but what if they cannot be installed until a month after the rest of the repairs and improvements would otherwise be done. If your total holding costs are over $1,000 per month, you are probably cutting it too close and you might want to drop the new windows from the list.

It isn’t just the direct holding costs either. If you turn over your fixer uppers quickly, you can make more money. There are only so many projects you can handle at once after all. If you concentrate on fast fixes you might get six houses done in a year instead of four. If you’re making $15,000 on each that means $30,000 more per year. Keep that in mind the next time you try to squeeze an extra couple thousand in profit out of a project, but at the cost of a month or two of your time.

Make high-return repairs and improvements, and make fast ones. That is the basic idea. And though you’ll never know for sure exactly how much value a given change will add, or even what it will cost, estimate as best you can (and get help when necessary). Perfect projections are not important for making a profit with fixer uppers. Following the right principles is.

Commercial Property is More Stable than Residential Property

The current economic climate in the UK has meant that residential house prices are in freefall, the same fate, however, has not befallen the Commercial Property market. On the down slope, industrial real estate lags behind residential . Commercial property investment is generally not a matter of feelings ; therefore, prices are very rarely artificially inflated .

Your Property is Generally in Better Hands with Commercial Tenants

Everyone has heard of the problem tenant a home lessor has dealt with. business people are more serious about their commercial property lease than are many individuals home seekers .

On Average Commercial Property Yields a Greater profits on Investment

The increased risk of a commercial property – the larger investment – is generally offset by a larger payoff at the end . Vacancy is much lower with commercial leases than with residential .

Commercial Property is Less Competitive
Competition is lower for commercial realestate because there aren’t as many buyers. Lower competition means the seller sets the rules . You have the advantage, and the more you invest the more you will be able to reap the benefits of an investment vehicle that most people overlook simply because they are not familiar with it . By the time a UK citizen is 40 years old, chances are they have made at least one residential real estate purchase, but a much smaller number of those will have made any sort of commercial property investment . Even so it was likely something small like a corner shop or pub .

Commercial Property Retains Value

A residential property simply won’t hold value like a commercial property will . For people the rent is often the lowest priority, while for businesses it’s the highest – this comes into play during tough times.

Property Management Corporations Can Assist You

There is another option for those who don’t warm to the idea of investment clubs: property management companies . The advantage that you will have with such companies is that besides the usual property investing they are also into rental real estate investing . The rental property game offers great rewards…but some risks, as well. Included in rental property investment is residential and commercial real estate .

Foreclosure: What is it?

Bank foreclosure, or just foreclosure is initiated by the banks if you have not been fulfilling the necessary mortgage agreement obligations which you have signed with the bank for regular monthly loan payments and in such a situation the bank or lender will have to sell your home in an auction or otherwise and use the sale proceeds to get back their loan amount. Basically foreclosure would take place if you were not making payments on your mortgage and the seller of the home or lender of your mortgage was forced to sell the house in order to receive the money owed for your mortgage.

Foreclosure is not an unusual thing with many home buyers and these buyers at the time of purchasing a home think that they will be able to repay the loan regularly without any problem; however, after sometime they find that their expenses are more than what they earn and mortgage payments being major expenditure item find it difficult to repay and hence default on the loan repayments.

Once you purchase a home for you and family you would not like anybody to take it away from you since you are highly sentimental about it; in addition foreclosure causes a lot of difficulties for finding finances for your future home purchase because your credit rating takes a beating and hence it is very important that you avoid home foreclosure.

Tips

The tips given here may be of much use for you to avoid foreclosure of your home. As a first thing you must ensure that there is a household income versus expenditure budget. A budget is nothing but a plan of expected income and expenditure over a specified period and it is necessary for you to prepare the income both you and your partner makes per month and also the bills you have to pay during the month.

The next thing you should do is to make an ABC analysis of your expenses and ABC analysis is helpful in identifying items which will have a significant impact on overall household expenditure; you might find that mortgage bill as one of the A class items that should never be forgotten. Study the possibility of postponing some essential items and eliminating totally nonessential items.

Most new investors in fixer uppers have the basic idea that you buy a house in need of some repairs and cleaning, you fix it up and sell it for a profit. That’s a good start, but how do you know if there will be a profit, and what changes to make? Many investors have lost money on their renovation projects, after all.

You have to have a clear idea of the profit potential before you make an offer on a house. How do you do this? Try the following five steps.

1. Make a plan for repairs and improvements.

2. Determine what the house will sell for when it is ready.

3. Estimate the total expenses for repairs and all buying, holding and selling costs.

4. Decide what you would like for a profit for the project.

5. Subtract all projected expenses and your desired profit from the estimated selling price. The resulting figure is the most you can pay for the house if you want a safe investment. You’ll want to make an offer lower than this to leave room for negotiations.

That’s the safe formula for fixer uppers. It is much better than the “intuitive” process that loses so much money for unprepared investors. But it doesn’t answer the question of what repairs and improvements to make. There are two important principles to consider when deciding that.

Fixer Uppers - What To Fix

The first basic principle is to do those things which pay the most for the money spent. It can be easy to put more into a fixer upper than you can recover, so you want to choose those repairs and improvements that do the most to increase the value of the property. For example, painting kitchen cupboards might cost you your time and $25, or $125 if you pay someone to do it. They may look new as a result, and so add $1,000 or more to the selling price of the house.

Actually installing new cupboards could cost $6,000 and add only $6,000 or $7,000 to the home value. In that case, the painting is clearly a better value. Of course, there will be times when the new cupboards make more sense, especially in some high-end homes. Do the math.

As you consider the options you have, always think of return on investment. You may need the help of a good real estate agent to determine this. Describe the house with all your planned changes done and see what an agent thinks it will sell for. Try another set of improvements and see if that has a better return. As you gain experience you’ll know what buyers in your area value, and so what changes will pay the most. And always look for all the simple high-return improvements, like a new mailbox, a few flowers and a thorough cleaning.

One thing not mentioned yet is the cost of time. Some repairs and improvements add not just the cost of the change itself - the materials and labor - but also add to the time the project takes. Every day that goes by you are paying for interest on loans, electricity, heating, water, insurance, property taxes, and other holding costs. You have to take those into account, which brings us to the second principle: As much as possible, do those things which make the fastest return on your investment.

Suppose new windows are a possibility, and will add about $8,000 to the value of the house, while costing you $6,500. It seems that you make a profit on the investment, but what if they cannot be installed until a month after the rest of the repairs and improvements would otherwise be done. If your total holding costs are over $1,000 per month, you are probably cutting it too close and you might want to drop the new windows from the list.

It isn’t just the direct holding costs either. If you turn over your fixer uppers quickly, you can make more money. There are only so many projects you can handle at once after all. If you concentrate on fast fixes you might get six houses done in a year instead of four. If you’re making $15,000 on each that means $30,000 more per year. Keep that in mind the next time you try to squeeze an extra couple thousand in profit out of a project, but at the cost of a month or two of your time.

Make high-return repairs and improvements, and make fast ones. That is the basic idea. And though you’ll never know for sure exactly how much value a given change will add, or even what it will cost, estimate as best you can (and get help when necessary). Perfect projections are not important for making a profit with fixer uppers. Following the right principles is.

It just isn’t much fun to buy a new home and then discover that snakes are regular visitors in the living room.  And you don’t want to move into a house with a leaky roof or a wet basement. Or discover that you picked the worst neighborhood in town - after you buy. To avoid surprises like these when buying a new home, you have to learn about the town, the neighborhood and the house. Here are some ways to do that - before you make that offer.

Your New Town

An online search by city and state (Fresno California) will usually lead you to an official city site, or a chamber of commerce website. These sites can provide a lot of useful information, but they are “selling” the city. For the good and the bad, find a local newspaper online as well. See what going on in town, and check the classified advertising section to get an idea about home prices too.

Detailed statistics on almost every town and city in the U.S. can be found at city-data.com. Click on a state, then find the city you want on the list (it covers towns of 6,000 people or more). You’ll find more statistics than you can possibly use, ranging from population, average income, crime statistics, maps, photos and much more.

Visit weatherbase.com for climate information on almost every city in the U.S. Click on a state, choose the city you want, and see how many inches of rain or snow they get each year, how hot or cold it gets, etc. You’ll also find a link to the current weather forecast for the town.

Call somebody from the Chamber of Commerce or a local real estate agent. Their phone numbers can be found online at realtor.com or a Chamber Of Commerce website. Make a list of questions, and ask about stores, libraries, jobs, crime and anything else that is important to you. We asked many people in many towns, “Do you own a snow shovel?” before choosing to move to Tucson, Arizona.

Your New Neighborhood

Once you have a local realtor or city official on the phone, ask about the various neighborhoods in town. If they hesitate to label areas as “good” or “bad,”, ask more specific questions, like where older parts of town are, and where the most rental units are. If you listen well and read between the lines you should learn something about where you might want to buy a house.

Visit the town before buying a house, of course, and visit a good local bar. Residents there will tell you which employers are about to move in or out of the town, how fast or slow homes are selling, whether there are criminal gangs, and more. But verify what they tell you, since people do sometimes exaggerate a bit. For best results, choose a bar with customers who are most like you (income level, interests, etc.), to get the information most relevant to your needs.

Drive around town. It will help you get a good feel for where you might want to live. Stop to ask questions when you see people out in their yards, and take notes.

Your New Home

Realtor.com has a lot of information on the homes they list. You can search for other real estate listing sites. They won’t mention things like whether a house is in an area with scorpions or street flooding, but answers to these questions can also be found on the internet. Google the name of the town and “forum,” and if there is one, sign up (they’re usually free). Read the posts, and ask about the specific area you are thinking of moving to. People usually respond, as they did when we visited a community forum and discovered that a good cat will take care of scorpions.

When you have a good idea of the problems which might be associated with a certain neighborhood, you know what to ask when you start looking at houses. Carry a home inspection checklist with you when you do look at homes, and work your way through it. Pass on your notes to the professional inspector once you decide to buy a house.

When you’re sure you like a home, walk around the area. Find a person or two out in their yards, and talk to them for a few minutes. Ask about noisy neighbors, recent crime and other things that will help you decide if this neighborhood is the right one for you. Do this and take the precautions above and your New Home shouldn’t have too many unpleasant surprises for you.

Copyright Steve Gillman. To see a photo of the house we bought for $17,500, get a free ebook on how to buy Cheap Homes, and a free real estate investing course, visit Houses Under Fifty Thousand .com.

A buy to let property can be a good opportunity for UK investors. But the prevailing question is how to know you’re making a good choice and how to find the perfect property. Buy to let is one of several investments very much up in the air in people’s minds due to recent economic flux. However, as people will always need somewhere to live, it follows that there will be opportunities in the buy to let market, no matter what the economic future.

Tracking Down a Solid Piece of Land to Let

Many aspects must be considered when selecting a property. BUY TO LET opportunities can be found in the UK and throughout  the world. A majority of what you find outside the country are off plan, or bought prior to being built, during the construction and architectural phase. Depending on what kind of property you are looking for, and where, you have to be able to assess the profitability of the venture.

If you want something that is currently being let, it’s a good idea to calculate the amount you’ll take in against the price you must spend to purchase it. But don’t forget all the costs involved in the home’s upkeep—taxes, insurance, power, and various repairs that just happen, among other things. It is vital to fully grasp of the overall condition of the home. Will any substantial repairs or improvements be needed in the foreseeable future?
If not factored in, such expenses can cut into the profits you were expecting.

Considering the Letters

If you are purchasing a currently let property, you can evaluate how stable the current residents are. Is the property generally inhabited or are there empty places—this is something you must figure out. Keep in mind that empty space (space not being let) means less revenue, whatever the reason. If you’re taking on new tenants, you’ll have to do some digging around on the local market to see what a fair price to ask for is and the timeframe between now and when you can begin letting the units or property.

Money, Money, Money!

In recent times, individuals were encouraged by very lucrative mortgage rates to join the BUY TO LET market. The market, including banks, are very volatile (as of the release of this writing). It will be more difficult to lock down solid financing and rates for your property investments for now.

This does not mean, however, that there will not be any more opportunities in this area. The market will certainly rebound and new possibilities will undoubtedly appear. There are advantages to be uncovered even in the face of a dismal financial market. The first upside is that frightened investors will tend to steer clear. Otherwise unavailable opportunities are the result. Keep a watchful eye on the economic situation in the UK if you’ve decide to go for it and prepare to jump at the next opening in the buy to let industry.