Things to look out for when renting or buying a condo?
What are some negative signs and potential red-flags to watch out for when looking for a space to rent or buy? This is for personal. I’m not a realestate agent.
I’m looking for a QUIET neighborhood, no kids, not alot of animals. No loud cars and music. Nice and roomy space, no bugs and criters or a home thats coming apart. Good heating in the winter and very moisturerized. I cannot have a dry home that screws with my allergies. A superintentant who takes care of repairs when asked to etc.
Make certain the condo complex is at least 51% occupied by owners. If there are too many renters, the value and marketability may decrease over time, whereas owners have a vested interest in keeping their unit and neighborhood nice.
Get with a realtor and with a lender. The realtor can give you tips on the area’s improvement or decline over the last few years, and help you find the right place. The lender will make sure you are asking the right questions so you can get a loan for the property.
Chapter 1 Investor Personality Typesreal estate and note buying?
IAM JUST STARTING OUT AS A NEW REALESTATE AND NOTE BUYER. I WOULD LIKE SOME HELP ON HOW TO DO THIS KIND OF JOB. IF SOMEONE CAN SHOW ME HOW TO BUY REALESTATE AND NOTES I WILL appreciate it thanks god bless.
Just ask people or companies who carry promissary notes to sell them to you at a discount, then have them legally assign the note to you and pay them for it.
How do I find realestate for lease with the option to buy?
In Saratoga County NY
Try looking at the classifieds for houses for sale that you like. Once you have selected ask the seller if he’s willing to do a lease with an option to buy.
Home Buying For Dummies In Under 4 Minutes
http://www.NeedMyHouseSold.com
This short video shows you how to structure your real estate purchase in under 4 minutes
Duration : 0:1:59
I am planning on hosting a free Seminar pertaining to realestate in my local community?
What type of information would you want to know pertaining to real estate as a local citizen, i was thinking:
how to sell your home
what to look for when buying
local agents and lawyers
local home inspectors’
Rates
Is there anything else people would want to know and or learn about, this is my first seminar ~Thanks~
Hi! I am a Broker so I think I can help you. First of all, to have any successful seminar, you need to bring in some experts to discuss these topics. I local Broker might be glad to talk about the do’s and don’ts of buying a home. How to select a Bank or Lender and what explain what the didn’t programs, 3-5 Fix ARM, vs. 30 year fix etc. You can not discuss rates as that changed weekly and only a qualified mortgage Broker should discuss this. Second,focus on what people can do. Too much facts and money issues bores people. Talk about what sells a home and what causes it to bomb. What is curb appeal. Discuss how every house has a smell. Normal, but some people find them offensive. How to solve this. Pets vs.fresh paint and new carpets to sell home. How to get smoke smell out of house. Change of colors? How neutral is neutral? Does clutter ruin a sale and what to do? How to make your house look like a home that will sell. Things like that. Make is fun. Give people a chance to participate with their own good and bad stories. And tell everyone, never short yourself on a home inspection. That can make or break a sale and also give the buyer more to bargain with or peace of mind. Good luck. Marie D~ Start will a funny or horror story when you begin you lecture. People like that.
Learn how to make money with how to buy realestate. Get expert training for free!
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Duration : 0:2:7
Buying Commercial Real Estate with $50,000
http://www.getacheckrealestate.com You will be surprised at what $50,000 can buy in commercial real estate these days… A monthly cash flow for the rest of your life, AND maybe your children’s lives too!
Duration : 0:5:32
What does cape rate mean when assesing realestate.?
Looking at commercial realestate and seeing this around as an example: cape rate 14.7%. What does this mean in assesing wether this is a good buy.
A capitalization rate (or "cap rate") is a measure of the ratio between the cash flow produced by an asset (usually real estate) and its capital cost (the original price paid to own the asset) or alternatively its current market value. The rate is calculated in a simple fashion as follows:
annual cash flow / cost (or value) = Capitalization Rate
For example, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net cash flow (the amount left over after fixed costs and variable costs are subtracted from gross lease income) during one year, then:
$100,000 / $1,000,000 = 0.10 = 10%
The asset’s capitalization rate is ten percent.
Capitalization rates are an indirect measure of how fast an investment will pay for itself in net cash flows; each year, the percentage amount of the cap rate will be repaid. In the example above, the purchased building will be fully capitalized (pay for itself) after ten years (100% divided by 10%). If the capitalization rate were 5%, the payback period would be twenty years. Note that in real estate appraisal in the U.S., a stylized measure of cash flow is often used, called net operating income. It is essentially the same as net cash flow, except that debt service and income taxes are not included while a reserve for replacements is included. Where sufficiently detailed information is not available, the capitalization rate will be derived or estimated from income to determine cost, value or required annual income.
Use for valuation
In real estate investment, real property is often valued according to projected capitalization rates used as investment criteria. This is done by algebraic manipulation of the formula above:
Capital Cost (asset price) = Cash flow / Capitalization Rate
For example, in valuing the projected sale price of an apartment building that produces an annual net cash flow of $10,000, if we set a projected capitalization rate at 7%, then the asset value (or price we would pay to own it) is $142,857.
This is often referred to as direct capitalization, and is commonly used for valuing income generating property in a real estate appraisal.
One advantage of capitalization rate valuation is that it is separate from a "market-comparables" approach to an appraisal (which only compares what other similar properties have sold for based on a comparison of physical characteristics). Given the inefficiency of real estate markets, multiple approaches are generally preferred when valuing a real estate asset. Capitalization rates for similar properties, and particularly for "pure" income properties, are usually compared to ensure that estimated revenue is being properly valued.
Cash flow defined
The capitalization rate is calculated using a measure of cash flow called net operating income (NOI), not net income. Generally, NOI is defined as income (earnings) before depreciation and interest expenses:
Cash flow = Net income + depreciation + interest expense + profit tax – reserves for repairs = Gross income – non-interest expenses
Interest expenses are excluded so that the valuation of the property does not depend on the amount of debt used to purchase the property; in financial terms, the cap rate is an unlevered valuation measure. Similarly, profit taxes (or other similar taxes) are usually excluded, as they will depend on the interest and depreciation expenses charged; most other taxes, and specifically property taxes, are treated as part of non-interest expenses.
Depreciation in the tax and accounting sense is excluded from the valuation of the asset, as it does not directly affect the cash generated by the asset. To arrive at a more careful and realistic definition, however, estimated annual maintenance expenses or capital expenditures will be included in the non-interest expenses.
Although cash flow is the generally-accepted figure used for calculating cap rates, this is often referred to under various terms, including simply income.
Use for comparison
Capitalization rates, or cap rates, provide a tool for investors to use for roughly valuing a property based on its income. For example, if a real estate investment provides $160,000 a year in cash flow and similar properties have sold based on 8% cap rates, the subject property can be roughly valued at $2,000,000 because $160,000 divided by 8% equals $2,000,000.
Reversionary
Property values based on capitalization rates are calculated on an "in-place" or "passing rent" basis, i.e. given the rental income generated from current tenancy agreements. In addition, a valuer also provides an Estimated Rental Value (ERV). The ERV states the valuer’s opinion as to the open market rent which could reasonably be expected to be achieved on the subject property at the time of valuation.
The difference between the in-place rent and the ERV is the reversionary value of the property. For example, with passing rent of $160,000, and an ERV of $200,000, the property is $40,000 reversionary. Holding the valuers cap rate constant at 8%, we could consider the property as having a current value of $2,000,000 based on passing rent, or $2,500,000 based on ERV.
Finally, if the passing rent payable on a property is equivalent to its ERV, it is said to be "Rack Rented".
Change in asset value
The cap rate only recognizes the cash flow a real estate investment produces and not the change in value of the property.
To get the unlevered rate of return on an investment the real estate investor adds (or subtracts) the price change percentage from the cap rate. For example, a property delivering an 8% capitalization, or cap rate, that increases in value by 2% delivers a 10% overall rate of return. The actual realised rate of return will depend on the amount of borrowed funds, or leverage, used to purchase the asset.
In Europe, the term Yield is more frequently used in connection with real estate than capitalization rate. Yield is a more general term that refers to income in relation to the price of an asset.
okay what people think about this realestate courses you buy on t.v?
Do people really become successful in assuming other peoples home loan. How powerful are the contract in these real estate kits? What about wholesaling? I want to obtain properties, but I really don’t want to do things the traditonal way. What do you all think?
Yes some of the tricks that they advertise are not updated to fit nowadays market. Such as an assumable mortgage or taking over an HUD. But as far as the total knowledge of the subject …think of it as taking a home course in a subject. There is a lot of material to read and go through. You must be willing to study it and then apply it to the market that you are in. They make it sound as if you buy the book ..then it jumps up and starts making you money. As we all know, nothing worth having has ever come easy.