Tag Archive | "time"

Real Estate Investing: Don’t Sacrifice Quality for Price and Schedule

The concept of turning a maximum profit in a minimum time frame is as important in real estate as it is in just about any other sector of the business world.  And of course, when you create a profit margin this makes for three immediate variables: How quickly can you do something, how much must you spend and how few mistakes can you make while doing it?  The introduction of these variable factors can make it very difficult to carry out the perfect real estate development.

If you are keen to get the job done quickly, you will face the challenge of avoiding paying through the nose while trying to ensure that the job is still done correctly.

Decide that price is your priority, and you will still want the work done as well as possible, but you don’t want it to take forever.  And if your major priority is a good job, you will have to consider how you will get that done on time and within a budget.  In trying to make sure that each of these priorities is served, you will find yourself with some judgement calls to make.  On some issues you will not be able to satisfy the need to do something cheaply and quickly and well – so what do you sacrifice?

Sometimes the circumstances will go some way to making the decision for you. In order to make sure that you can live with the decision, you need to be firm in making it.  Too much procrastination will simply narrow down your options, so be prepared to make tough choices if you want to make a success of your development.

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If You’re Thinking About Being a Real Estate Agent…

real estate agent

Thinking of being a real-estate agent, but do not know where to start? First, you would have to determine if this kind of career is the right one for you. Most people usually think that to be a successful real-estate agent, you just need to be good in convincing people to buy properties and houses. Good communication and persuasion skills are, of course, plus points,but that is not all. You also need to be familiar with the industry.

Real estate agents ensure that the buyers would be able to find their dream homes, while sellers get their property’s worth. It would take skill and mastery before you could become successful in this career, just like in any kind of occupation. You would need proper training and education. There are different institutions that offer courses for those who would like to enter the real-estate industry. Usually, states would require an aspiring real-estate agent or salesperson to spend about 30 to 90 hours classroom education.

The Professional Licensing Commission in your state would have lists of reputable educational institutions where you could take your courses. You could also ask the Real Estate Association for recommended institutions. A high school diploma is a requirement and at least be 18 to 21 years old.

Before becoming a true real-estate agent, states would require a license to operate. You would need to pass a licensure examination. Agents are required to renew their license every two years but it still depends on the state. You would also need to attend seminars even if you are already licensed. The real-estate industry is continually evolving or changing. A real-estate agent should always be aware of changes in laws and regulations in the state where they are located.

But taking up real-estate courses are not the only thing that would prepare you for the industry. It is recommended that you work with a mentor broker for about 2 to 5 years to get experience. It is like apprenticeship. After that period of time, you could start thinking about setting up an individual practice.

Technical requirements like coursework and license will equip you, but it is your attitude that will help you become successful in your field. As a real-estate salesperson, you need to be sociable or a people person. You would be working with different kinds of people, not only the buyers and the sellers. A real-estate agent will also work with lending officers, lawyers, mortgage brokers, insurance company representatives and even land-use officials.

A real-estate agent is on call for 24 hours. Clients would often call an agent during the time when they are available, asking for updates or advice. Flexibility is another attribute you would need to develop. Clientele could be a problem for beginning agents. You would need patience since it would take time before you have your own client list.

Another concern for real estate agents is the income. Most experts would recommend that those who are only starting to learn the industry should have an alternative source of income. But if you are selling multi-million worth of houses everyday, then you would not have any problem with income at all. But success would surely come if you would work hard and learn from every step you take in the industry.

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Do the Research: What to Avoid When Buying a Home

Beginners in real-estate investing and first time homebuyers would often experience blunders when they look for houses to purchase. To avoid such frightful experience, which could lead to loss of time, effort and even worse your money; you would have to learn what common mistakes are made in real-estate and how to avoid them.

Lack of research

When buying properties and houses, you would have to go back to the basics: which is doing some research before proceeding with any kind of purchase. Research is basically asking questions about the house or the property. You could ask questions similar to the following to have an idea about the property:

  1. Reasons for putting the property on sale
  2. Any problems about the house’s foundation that needs to be addressed.
  3. If the former owners have paid for the house and the methods of payment.
  4. If there are any problems in the area where the house and property is located like being near a flood zone, termite problems, etc.
  5. If there are any problems in town area.

Not considering the bidding and maintenance cost

Your research would also include the price. It is a common scenario when a buyer would tend to offer a higher price for a property that would fit their needs and demands. Before bidding for a property, search for similar houses in the area and how much were the sold in the last few months. It is better to look at houses and properties that were already sold than those houses still up for negotiations or sale. Buyers should bid consistently with the other houses’ prices.

Aside from the upfront price of the house or property, buyers would also forget to factor in the maintenance cost of the house. Without considering the maintenance cost, homebuyers would often find themselves buried in debts. Real-estate investors should always keep the expenses in mind when buying property. Since the cost of improving the home would definitely have an impact how they would price their house. Having the home inspected could put a dent on your bank account, but never sacrifice it. Always get a good home inspector even if it means you would be spending more

Too much waiting

There is nothing wrong with waiting for the right house but a homebuyer should be realistic. It is difficult to find for a home that would fit 100% with their needs and demands. Homebuyers who are looking for homes with this method would usually by pass homes that would be meeting nearly all of their standards. Usually, homebuyers who wait around for their perfect homes for sale would not notice that the cost of purchasing properties is constantly increasing. To avoid this, it is important to sort out priorities. Identify the top needs that should be provided for a prospective home.

Without any professional assistance

Another mistake that most homebuyers make is that they think can get a house on their own. There is nothing wrong with buying property and house without any professional help. It is just that it could be very stressful and would take much of your time. Real-estate agents have the resources, contacts, and tools that would be able to help make the search quicker. Aside form the real-estate agent, if you’re planning on investing on this industry then you would also need a home inspector, a lawyer and an insurance representative.

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Renovation Ins and Outs

renovations
When you buy a house for the purposes of renovating it, there may well be a simple equation in your head. Money spent on buying house + money spent renovating = total spend. Resale price – total spend = profit. Simple! Isn’t it?

Well, maybe not. You see, on top of this you do need to consider what else is going on while you are renovating. Renovating a house is not something you can do in “dead time”, so you also have to look at how you live in the mean time. After all, if you need to be present for the work – because you are helping to do it or because you need to monitor the project – then this cuts into time that you would ordinarily spend working and making money.

If you have sold your house to buy the new one, then you will also need to take care of resettlement costs, whether you are renting or have found another solution. It is hard to live in a house which is in the middle of renovations, as anyone who has done it will tell you. You may need to work into your budget an amount which will cover the costs of your time spent on site and your temporary accommodation.

If you borrowed in order to buy the house, you will need to at least service the mortgage on it, too. Therefore it is essential that you have a plan, and that that plan is realistic. Many people get carried away thinking of the profit that they will make, but it is important to think about the difference between gross and net profit.

It is important when renovating a house to bear in mind that there is a big difference between a loose plan and a final plans. You may have ideas about what the house is going to look like and how much money it is going to make you, but those ideas can only become reality with a lot of work. Don’t get carried away by the seemingly foolproof nature of your plans.

You should always make sure that you “comparison shop” every decision you make. You may need to pay builders and other workmen to do the renovation work. You should consult as many different companies as you can before contracting one to do the work – check them for references and price. Do the same for materials and for any other service that will be required.

It can be tempting to walk away from a development, even temporarily, because you have just reached a point where every decision is difficult and you are second-guessing yourself on everything. You may just want to give up. At these times, you need to show steely reserve and keep in mind that time is very nearly equal to money.

Finally, you should always be ready to take the opinions of others on board. By going with your own gut on every decision you make it is possible to develop tunnel vision. You don’t have to run every decision by someone and agree with all of their points, but it can be useful to ensure that you are looking at the plan from a more detached angle – as this is what potential purchasers will be doing.

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