Real Estate Investing has options

Many have made the transition from stock market investing to real estate.  But real estate investing is not for the faint of heart.  I've met some wanna-be landlords who fall prey to the "I don't have money for my kids' Christmas and can't pay the rent" saga.  Others let tenants move in with the "I promise to pay my deposit in 3 monthly installments."  You ought to sit down with me some time.  I have lots of stories to tell!  Some of them legal...

The biggest pitfall I've observed is renting to the first person who can fog a mirror.  Be sure to check out the potential tenant's references and credit history.  Maybe even go two landlords back - they have nothing to lose by telling you the truth.  The current landlord may want to get rid of them or else they'll be surprised to hear they've made an application with you.  I've known people who will even check with the local sherriff's department to see if the applicant has a history of passing bad checks.  All good things to check out.

But don't get me wrong...choosing the right property, and the right place and time can be a good investment.  I have learned lots of tips from working with investors through the years...There are some bargains out there with some foreclosures, but be sure you know what you're getting into.  Sometimes it may be worth more to pay more for a property with major improvements already in place.  It's hard to find those that only need carpet and paint...usually if it needs carpet and paint, it needs roofs replaced, ceilings repaired, frozen water lines repaired, etc.  You get the idea.  Working with a Realtor who knows the market can prove invaluable.  I'd love to teach you what I've learned!

Do you know where your Realtor is?

It's amazing, the life of a Realtor, that is!  I just finished a radio interview on 97.3 FM in the Moberly area.  It's so easy to talk real estate...different types of loans that are available, rehab loans, credit help available for people truly wanting to buy a home.  I find that some people are hesitant to delve into restoring their credit, perhaps because they don't know who to talk to, who will care and not judge them.  I've found several mortgage professionals who DO care, who will give you the tools and steps to make homeownership a reality, just ask me for a referral...

Speaking of real estate 24/7, did you know that the virtual tours Advantage Real Estate offers work 24/7 for homesellers?  We were talking about this recently at the office, and we can track several closings (that we were told about) where the virtual tour gave the buyers the confidence to purchase their new home!  They emailed the link to their parents/friend/spouse which enabled them to give the support necessary to move forward!  Awesome, this technology that's available, isn't it?  If you haven't seen it, check out the virtual tours at http://www.askadvantage.com/.

Inspiration

I lost my friend and mentor in the real estate business last week, my step father, Chuck Boyer.  He taught me (almost) everything I know.  :)   I remember when I decided to get my license over 18 years ago;  he cautioned me about the ups and downs of being self employed.  He taught me to tell the truth, no matter what.  And to communicate with those you work with.  If you tell someone you're going to call them back, then do it.  Follow through.  His knowledge of the industry was unparalled; at one time, he was the education chair for the franchise he was licensed with (which was the top franchise in Texas at the time).  He taught me to never be satisfied with what you know.  Keep learning, and by teaching others, it helps you indirectly too.  He will be missed by many.  I have big shoes to fill.  One day at a time...

Buy first, or Sell First: What to do?

   I have a number of clients facing a peculiar, but increasingly common dilemma, whether to sell or buy first. If you sell your house first you run the risk of selling it before you locate a new house to move into. If you buy first, you have to come up financing while you wait nervously for your house to sell.

   Selling first has its advantages. When you sell your home first, you'll know exactly how much you can afford to pay for your new home. You’ll have the cash available, and “cash is king” in this market. It’s important to get pre-approved for the financing so you’ll know exactly what price range to shop within. During negotiations, you'll be in much stronger position to make a non-contingent offer, which is much more likely to be accepted by the seller than an offer that has a contingency attached to it.

   If you sell your house first, try to negotiate a longer escrow so you have time to shop for your next home.  You'll want to negotiate a few days to a week possession after closing perhaps so you can sell your home and move right on in to your next home.  You can alwasy explore the possibility of short term rentals, and know that you might have to put your furniture in storage.

   When buying first, it might be necessary to place a contingency clause in the offer.  This clause states that the purchase is conditional upon the sale of your current property, usually within a specified time. A contingent offer has some disadvantages. You run the risk of being rejected by the seller for a more favorable offer without a contingency. Sellers are less likely to accept a contingent offer when they have other offers that don’t carry this contingency clause.

   Whether you decide to sell first or buy first seek the advice of a professional real estate agent who can guide you through this tricky process.   http://www.askadvantage.com/

Spring has sprung

Seeing lots of optimism out there in the real estate market lately.  Banks have money to lend to buyers...with good credit :)  Lots of motivated sellers, so perhaps it's time to get your "buy" on.  I've heard it said that you don't want the future to be said of today..."I wish I had bought then."

So glad to be sitting here waiting for the 60 degree plus temps expected tomorrow!  Yes, even the weather plays an important role in people buying houses... bring on the sunshine!  It's been a long winter in central Missouri, and I'm enjoying watching my tulips sprout up.

Always looking for a major project to accomplish at my own home each year.  This winter we replaced all of our ceiling fans with new new ones...oil rubbed bronze finish.  I love it!  My husband thinks I dream up jobs for him to do:)  Sound familiar?

Painting a room is an affordable way to give a room a facelift, economically.  I can hardly wait till the weekend...I have several projects to work on.  Love to stay busy!

Do you know where your Realtor is?

It's just like the commercial:  it's 1 am; do you know where your ______is?  In real estate, I've learned in the past 18 years that many home sellers do not know what their real estate agent is doing to sell their home.  Have you had feedback after showings?  Do you know what efforts your agent is doing to advertise your house?  Have you seen what your listing looks like online?  (Odd thing:  I've talked to many people after their listing failed to sell, and they had NEVER seen their listing online.)  I think it's important to get the seller's involvement in the process too, because they may remember an update about the property that you forgot to mention...and pictures speak a thousand words.  Speaking of pictures, I like to update the picture once spring gets here.  You don't want snow in the picture when the leaves are budding out...worse yet, snow in the picture still in August or September...believe me, I've seen it.  Our virtual tours and interactive floor plans at http://www.askadvantage.com/  enable a virtual open house 24/7!  Check it out if you haven't seen one yet!  It's one more thing we do at Advantage Real Estate to promote sellers' properties.  It's also uploaded to Realtor.com!

Are foreclosures in your future?

We have a lot of people inquire on our website, http://www.askadvantage.com/  for foreclosures.  We offer a free list of what's available...the thing is, do you really want a foreclosure, or just a bargain?  Every foreclosure purchase requires the buyer to have a pre-approval letter OR a proof of funds letter (if you are paying cash).  The bank selling the property wants to know you are "ready to go" and that financing will not be a concern.  They normally will give you a short time to do inspections.  (I've seen 5 to 10 days, depending on who you are working with.)  There will be pages (often 15 to 20 of them) they will require you to sign as a purchaser acknowledging that you are buying the property "as is,"  that they have acquired the property through a foreclosure and have no knowledge of anything, etc.  They want you to acknowledge that you will not hold them responsible for anything after closing:  defects in workmanship, mold, lead based paint, etc, etc.  The list goes on. 

They can be a great opportunity for the person who can do the fixups required...Many people want a home that just needs "carpet and paint."  I could be rich if I could cash in on all the people who told me they'd buy that "fixer upper" if that's all they had to do.  Unfortunately, people who lose a house to foreclosure probably aren't cleaning the gutters, fixing the roof leaks, toilet leaks, etc.  So you may have other deferred maintenance items as well as the carpet and paint to fix.

I'd challenge any "foreclosure" buyer to take a look at the properties on the market that are still owned by the owner and count the costs...sometimes it balances out not to have to do all the repairs, and to pay market value for a home in good condition.  Not having to do the work and having it be "move-in ready" is right for some people.  You know who you are... :)