It’s a well known fact that because of their age, when you buy investment property of pre-owned homes it may come with at least one, if not more, significant issues. This is the assessment of reputable home inspector, HouseMaster that operates in over 390 cities across the United States and neighboring Canada.
It can sometimes be an emotional decision, when you feel attached to a piece of property that you may have your heart set on. Be cautious, because many of the decisions you make around investment property. Most people are guided by the lifestyle that they would like to have, and not governed by the practicalities of the life that they need to lead.
Moving to your newly purchased residential real estate investment can be very exciting. However, if you’re planning to move this summer time, you’re in for a lot of surprises as this is the busiest season for many trucking and moving companies. You will need ample time to plan and prepare for the transfer so that a smooth move-in can take place. Here are several important tips that you’ll find very useful to achieve that smooth transition.
Decide early if you wish to get the services of a trucking or moving company. As summer is their peak season, you will need to notify them as early as you can to get reservations. Choose reputable service providers. You are going to entrust them with your most important possessions; it’s just natural that you choose a company that has a good track record and reputation in the trucking and moving industry.
You don’t have to bring all of your belongings to your new residential real estate investment. Go over all your personal properties and segregate those that you really need from those that you rarely even use. You will find that there are things that are damaged and beyond repair – get rid of them. Decide to dispose of others that can be valuable to other people by conducting a garage sale or donating the items to charitable institutions. Another option is to find external storage where you can store some of your important items. You can temporarily store them in a safe storage facility until you’re ready to transfer them to your new home or until you’ve decided what exactly you want to do with them.
If there are things that have to be fixed or repaired in your new home, it’s best to take care of them first so you can move in all your things without any hassles. It could take quite a while to do some repair or renovation works; finish them first so nothing gets in the way when you and your personal stuff arrive.
When you move in to your new residential real estate investment, you would want everything to be as normal as possible. This means you would want to be able to call friends, chat with them, email them, and communicate with them without any problem. You would want to be able to watch your regular tv shows. You would want to continue doing business transactions with ease. In order to do all these, you need to take care of having your internet and cable connection installed ahead of time. If you need to transfer bank accounts, then you can do this before you transfer so that everything is all set by the time you move in.
You will need boxes where you can store your personal stuff for transfer to your new residential real estate investment. Your moving company should be able to provide this easily; but if you want to cut down on costs, you can ask for used boxes from friends, neighbours, and grocery stores. If you can’t get them for free, you can offer to pay a minimal amount for them.
Be more organized in packing your things. Label the boxes so you can easily identify what’s inside. This way, you don’t have to open all boxes in case you need to retrieve something when you arrive in your new house. Indicate also which boxes contain fragile items so that they can be handled properly. If you realize that you’re transferring so many valuable items, it could be a good idea to buy insurance for your items so that they are covered any type of accidents that might happen along the way.
Place all the important documents in one box. This container should have all important equipment manuals, insurance policies, statement of accounts, and other important documents that shouldn’t be left lying around somewhere.
As you pack and plan to move in to your new residential real estate investment, don’t forget to check your old cabinets and drawers so you’re sure that you don’t miss out on anything.
Clean as you pack your things. It’s easier to see if there’s anything amiss if you are working in an organized and clean environment.
The business of real estate investment firms is hiking every day. To invest in this business venture can really be profitable; however, one must obtain proper knowledge and strategies through education and training. Proper knowledge about the business can help direct you in the right path and would give you more chances of achieving success and overcoming certain risks and difficulties inherent in the business.
There are various professional teams of estate trainers who provide quality education about how to establish real estate investment firms and other insights of the business. If you are new in this business area and have the desire to invest in these ventures, then getting a good quality education and training becomes a necessity. The world of property investment can be very complex and you need to familiarize yourself with the common terms and language that they use in the industry. There are also different buying and selling strategies that you can employ, and you need to equip yourself with the right education in order to understand all these strategies.
Lack of proper business knowledge while investing in a real estate business can really have serious repercussions. The investors who are not equipped with the essential knowledge about the business cannot possibly achieve a substantial profit in their business. If you have a good knowledge about the business, know where to invest, what to consider while buying or selling a property, then it can really be helpful for you to have maximum profits on your investment.
The most important skill to learn when you intend to do a real estate business is how to deal with the clients. A good negotiating skill and the ability to deal well with people can pay you back a thousand folds. There are various short courses available which will provide you a good knowledge about dealing with people. Most of the people who offer these courses are also realtors who are already successful in the industry. They share their knowledge and skills to teach people the art of communication and persuasion. These skills will enable you to convince clients to buy even when they are hesitant at first.
There are also various investment courses that are being offered online. Through many online websites, you have the access to valuable courses like property valuation, property assessment, investing in foreclosures, documentations, contracts, mortgage, financing, and many more. You can choose to be part of the big and reputable real estate investment firms in your area or you can work independently and make a name for yourself in the industry. As you pursue this business, be open to learn from the experts and professionals. Find good mentors who can share their knowledge with you.
There are various professional business training programs that offer a great range of courses on commercial property business. The courses aim to equip their students with the right skills and knowledge to achieve success in real estate. Being able to attend the courses also enable the students to meet other people who are into this business. These contacts will be valuable to them in the long term especially if they can share business deals and collaborate on certain investment projects in the future.
Whether you are new or not in the estate business, education plays a very vital part of your success. Those who have been doing the business for a long time also get to benefit from the continuous education programs that are being offered by various institutions. Not only it enhances and hones their skills, but it also serves as a good venue to network, socialize and meet people who have the same interests. In the process, you can share experiences and lessons that will be helpful in the conduct of your business. If you work independently, you can tie up with several real estate investment firms and share several investment deals with them. Most of these firms are open to have independent realtors help them in marketing their properties that are either for sale or for lease. You can refer potential buyers that can match their inventory of properties offered in the market.
There are so many first time buyers who are looking for a low cost house to buy as they often have a minimal budget to use in buying a house. They have great desires for their own home but their money is seldom enough to buy a house that’s big. Other kinds of buyer that look for smaller structures are those who already own their own house but are still looking for a smaller one that can serve as their vacation house. These buyers can find what they are looking for in the form of condominium properties. Condominiums offer smaller spaces at affordable costs. Costs of maintenance are also minimal for condominiums, that’s why they offer a good alternative to home buyers who are working on a limited budget.
Basically, a condominium or condo is a type of housing where a specified part of a real estate investment company is individually owned while use of and the access to common facilities in the piece, such as hallways, heating systems, exterior areas are used as common areas. Condominium contracts are executed under legal rights associated with the individual ownership. These communal parts are controlled by the association of owners who jointly represent the ownership of the whole piece. In buying a condominium or condo, one can easily enjoy strict security and high lifestyle amenities. The living facility of a condominium also offers a lot of convenience that goes with living in a defined community.
There are also other things that you need to know when buying a condo. Knowing certain valuable information will allow you to get best deals in condominium that you can buy from a real estate investment company.
When you intend to buy a condominium, check the building structure. You have to know when the condominium was built, who constructed it, the history of the structure, its renovation or upgrading history, or anything that can be learned through public records. You have to ask about the construction details of the roofs, wiring, appliances, foundation, heating and cooling systems, plumbing, drainage and other systems which can affect your day to day needs. You should also carefully take note of the location of the desired condominium.
The condo association or the authority which manage the building is another important factor. You have to check their maintenance system and how often their conduct maintenance checks of the building. You have to ensure that there is a responsible maintenance procedure that’s being followed to keep the structure and the condo units in good condition all the time. This is one way of protecting your investment.
You must ask to see the relevant documents from the real estate investment company before you purchase the condominium. One should carefully read the documents and ensure that the titles are clear and contracts are reasonable. There are several contracts and agreements that you sign when you purchase a condominium. If possible, review the terms and stipulations with a legal authority so you fully understand your responsibilities and obligations.
The environment or surrounding of the condominium units are also important. The amenities and facilities offered should be clean and secured. These amenities would include common areas such as parking facilities and hallways. You have to learn about the capacity and the number of building occupants. Getting familiar with the neighbors and their lifestyle would also give you a clear idea about the community in the condo that you are interested to buy. When you get to learn about the lifestyle of the neighbors, you also get to know about the personality of the place and by your observation, you can gauge whether you would fit in such community or not. Living in a place where you can be yourself and be comfortable all the time is a very important factor to consider when buying a condominium or any real estate property for that matter.
One should not easily get impressed with cheap offers and deals. When you are offered a cheap deal, you should first find out why the particular real estate investment company is offering you such cheap deals. Although you are not buying a big house, investments in condominium units also entail spending a lot of your hard-earned money. Do not easily give in to cheap deals unless you’re sure that everything is made in legal and reasonable terms.
When prospective home owners hear their bid has been accepted, they immediately rush to finalize moving plans. One bit of sage advice for property investors is: Contact a good home inspector before contacting a moving company! Property investors might pay dearly if they fail to get their new home thoroughly inspected before finalizing the deal.
Generally, property investors should get the home inspector to inspect major systems inside the home, including Heating, Cooling, Ventilation, Electrical, Plumbing, Roof and attic, Ceiling, Insulation, Basement, Foundations and Doors and windows. Usually, diligent property investorswill also have the home appliances included in the inspection.
Upon completion of the home inspection, the inspector will provide property investors with a detailed report of his/her findings. Should major issues be uncovered during the inspection, property investors should work with the homeowner and their Realtor to address the situation, either through having the owners fix the issue or offer a price reduction.
Property investors should consider having home inspection contingency clauses in the contract. For example, should the inspection determine a certain dollar value worth of issues, property investors should have the right to ask the owner to fix the issues or the offer may be rescinded.
According to a study, conducted after over 2000 inspections, by renowned home inspection firm HouseMaster, over 40% of resale homes will have issues that may cost property investors between a couple of hundred dollars to over $15,000 to fix.
Property investors are strongly advised to invest a few hundred dollars to get their future homes thoroughly and professionally inspected. But if property investors are unsure how to go about engaging a home inspector, think carefully before asking your Realtor to recommend one.
In their book “Home Buying For Dummies“, authors Eric Tyson and Ray Brown also echo that thought by warning property investors that inspectors that work too closely with real estate agents have a conflict of interest that might encourage them to go “…easy of their inspections”.
The books’ authors suggest that property investors start their search for home inspectors at the American Society of Home Inspectors (ASHI). They do caution however, that while ASHI membership suggest that property investors will be working with a professional and qualified inspector, it does not guarantee a thorough inspection.
ASHI membership requires inspectors to have performed at least 250 home inspections, and qualified 2 proficiency exams. ASHI members also assure property investors of meeting recognized standards of practice, and adhering to an ASHI mandated code of ethics.
Both the ASHI and the books’ authors urge property investors to evaluate several inspectors before making a final selection. Some of the points to discuss should include:
As a result of their interview, property investors will be able to shortlist one or two home inspectors. The final step is to ask for references, and check up on each reference provided. Property investors should question each reference about whether any major issues were uncovered by the homeowners after their deals were closed. More importantly, ask if the homeowner would recommend or use the home inspectors services again.