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How to Make the Most of Your Fixer Upper Investment

When you consider going into the business of buying, fixing up, and then selling the same home within a short period of time, you have to be well aware of how to recoup the most for your investment. It is actually easier than you may think, as long as you know what you are doing, or have a partner who does. There are a lot of details to consider, such as the price you spend on the home itself, the cost of any renovations that need to be done, as well as pricing the home to make the greatest profit you can without the house sitting on the market for too long. Although this may sound like a challenge, it can be a terrific way to make a profit with a little bit of effort.

Buying and selling can be done by almost anyone, as long as you are able to determine the right market times to buy and sell. With the market changing frequently through the years, you need a good idea of when the market is good for buyers and when it is good for sellers. It is also important to be able to upgrade the home as much as reasonably possible. If you buy a home that is considered to be a fixer upper but do not do all the work that it needs, you are unlikely to generate the maximum purchase price for it. If, however, you spend the time and money that a prudent assessment determines, you should be able to recoup most of the money you put into it, as long as the work is actually needed. This can be decorative or more costly work such as the roof, plumbing, or the heating and cooling units.

Another means of making the most of your investment is to renovate the area around the home. Curb appeal is extremely important in the sale of a home, as is the backyard. Consider planting a garden and developing a yard appearance that will really attract buyers of all types. These – along with the inside the home – should be in near perfect condition to maximize the potential of your asking price.

Additionally, keep track of what you are spending. Not only will it help to know how much you have invested into the home, but it also provides you a good idea of what you can sell the home for when the time is right. Tax considerations are important here as well. Don’t overspend and make less of a profit than your efforts merit. Keeping the repairs budget under appropriate constraint can add a lot to your bottom line.

When it is time to sell, look again at the housing market. You want to sell at the right time and through the right avenues. It is important to list your home in the classified ads section of the newspaper, but you should also put a sign right in front of the home for the drive-by visitors who come through your neighborhood.

If you follow all these steps, then you should have little problem recouping the money for the investment property, and come away somewhat richer than when you started.

Partnerships and Profits

Getting involved in the real estate business can initially seem scary to those who are new to it all. One way to alleviate some of this fear may be to work together with another investor or with the individual that is currently occupying the home you are looking to invest in. A joint venture of this type would be a definite plus, even more so if the occupant is one who has some real estate experience or maybe just a working knowledge of the real estate biz.

Sharing the equity in your investment through and equity split agreement offers a variety of advantages, especially to the an inexperienced investor who may still be a little green in regards to the real estate market. One of the perks is that you maintain fifty percent of your ownership of the property.

Also, since the owner occupant now has a vested interest in the home or property will generally take better care of it as they now have the right to claim part ownership. He/she can also take more responsibility with the maintenance, repairs, and upkeep and will probably do so without mention from you.

The asking price can also be better negotiated with the new partner/occupants. They will probably be more willing to agree to your asking price s they are already comfortable in their environment and feel that they are “at home.” They may even offer to buy you out and take full ownership of the home. This is often an added bonus because selling costs are often eliminated and the overall cost of sale is usually lower as you are the seller of the property and no other extra fees will be involved.

Yet another benefit to partnering up with an owner-occupant is that as an investor, you stand to attain a high return on your initial investment if you opt to share the equity involved or offer to put up the down payment amount for the purchase of equity shares.

In addition, establishing a good working relationship with the occupant/buyer may lead to repeat business and referral business. Future opportunities may present themselves and working with an occupant/partner that you have established a rapport and a level of trust with can only lead to more promising and solid deals.

Forming a partnership with the occupant of a specific property may also bring about other related questions. As a potential investor, evaluating all of the positive aspects of such a partnership goes hand in hand with questioning what negative aspects may occur. Why is one important question. Why would an occupant want to become a partner and/or buyer, especially if he/she is in a comfortable and stable living situation? There are a multitude of reasons. For example, a renter may just be tired of renting and now wants to be part of the homeowners club. Claiming ownership of a residence is accompanied by stability and responsibility. Also, the monthly payments made will lead to the eventual ownership of the property.

Through this process, the former renter now has the ability to build his/her equity which will be beneficial to future financial investments, instead of just paying rent on a monthly basis. The former renter also stands to benefit during tax time. If a renter does not have any tax write-offs, opting to buy the home he/she is currently leasing offers that benefit when tax season comes around.

As far as a down payment amount is concerned, if acquiring a large sum of money for a down payment is and issue for an investor, an occupant will probably be more willing to compromise on the amount of the down payment if an equity split agreement is made available.

Overall, sharing the equity in an investment has good things to offer to both parties involved. The investor as well as the occupant, and possible potential buyer, can both benefit by working together and putting into to good use what each of them has to offer. If the partnership is solid and the agreement is satisfactory to both partners, everyone wins.

Top 5 Reasons Why You Should Invest In Miami Real Estate Properties

The city of Miami has been one of America’s pre-eminent cities, considered as the capital of the Americas. It is home to a huge number of multinational corporations, top-rated schools, high-quality infrastructure, and a vibrant economy.

South Florida as a whole is also considered a top-rated destination for overseas homebuyers and investors. As a financial and transport gateway between the US and Latin America, Miami, along with its closest neighbor Miami Beach, has long attracted a lot of international investment.

The Flow Of Foreign Funds Has Made The City A Good Place To Invest In The Property Market

In recent years, the entry of overseas money into Florida has flowed heavily become a gushing torrent, as investors awash with cash from economic growth in Latin America seek to capitalize on the city’s soaring property values, according to market analysts.

South Florida is a popular destination for Europeans, as such, portfolio managers and institutional investors in many countries tend to see the Miami property market as a bargain even at current prices, whenever compared to skyrocketing property values in Europe, as the Euro has already gained strength over the Dollar. Foreign investments now account for a large chunk of property sales. This, according to data from the National Association of Realtors, now accounts for about 15 percent of all home sales in Florida, with the figure estimated to be much higher in Miami Beach.

Most of this money is poured into mixed-use developments that blend high-rise residential units with some office, retail, and hotel construction. Although some Florida-based financial organizations have slowed or temporarily reduced financing for new condominium and waterfont projects in Miami, larger national and international banks have remained active lenders in the south Florida housing market

The Condo Market Is Still Thriving

The condo-conversion wave may be ebbing, however soaring land costs and increasing numbers of urban residents will ensure that condos will continue to play a large role in the US housing markets, a South Florida developer predicted.

Current Mortgage Rates Have Dropped

At present, rates on 30-year mortgages fell for the fifth straight week as investors grew less worried about threat posed by inflation. Mortgage giant Freddie Mac recently noted that rates on 30-year, fixed-rate mortgages dropped to 6.15 percent this week. That was down from 6.21 percent last week and was the lowest level for a 30-year mortgage since late October.

Interest rates for long-term mortgages slipped lower this week due to some economic data releases that leaned towards a more subdued inflation in the near term, according to the agency’s chief economist.

Florida Home-Sales Median Prices Have Risen

According to the Florida Association of Realtors (FAR), home sales statistics have shown that home prices continued to rise but the number of sales fell in October, particularly in areas directly hit by Hurricane Wilma’s drive across the state. Many insurers stopped issuing new policies when the hurricane neared Florida, and, in the aftermath, some lenders required a re-inspection of properties before they would release mortgage money.

Pre-Existing Home Sales Are Above Other Areas

Pre-existing home sales in Miami, Miami Beach and Fort Lauderdale have shown to be a sound investment, and have outperformed since 2000 the S&P 500, a broad index of U.S. stocks. Miami housing prices are outpacing the top 20 regional centers and the nation as a whole, based on data from the National Association of Realtors. – Miami Real Estate