Four Tips For New Landlords Looking To Rent Property

Author: Samulswan

With fewer first time buyers around, some mortgage lenders have moved their attentions to the Buy to Let market. Of course, mortgage lenders still want a hefty deposit, even for the Buy to Let market. However, this hasn’t deterred some would-be landlords, and there are still signs for growth in the Buy to Let market – especially where rental demand is high (such as university towns and London).

If you are thinking of becoming a landlord and want to rent property – be it a flat nearby or a house designed for student accommodation – here are a few helpful tips to help get your new venture off to a good start.

1 Get the paper work in order for your rent property

Before renting your property, make sure you’ve have the consent of your lender and freeholder (if applicable). Get landlord’s insurance so that you are appropriately covered – standard building and contents cover does not meant the needs of a landlord. You should also get an Energy Performance Certificate and carry out all the safety checks (such as an annual gas safety certificate).
If you rent out a flat or house you should use a written tenancy agreement, just in case a problem arises. This will clearly show all the relevant details of the tenancy, and should be signed and witnessed.

2 Do you want to rent out a flat or house that is furnished or un-furnished

Decide if you want to offer furnished or unfurnished accommodation. This may depend on your target market. For example, if you want to offer student accommodation then furnished accommodation is a good idea. More older, more experienced tenants may have their own furniture and want to rent out a flat that is unfurnished.
If you do decide to furnish your rent property, all the furniture and furnishing must be fire resistant and must not make fume-filled smoke if there’s a fire. It must also show a fire safety label. If you rent out a flat or house that’s furnished don’t over do it – leave some room for the tenant to make their mark.

3 Advertise a property to let and find the right tenant

Do you want to offer a long term rental or short term let? Do you want students, young professionals…a family? Decide which type of lease arrangement and tenant is right for you.
You may want to use a reputable letting agent who will advertise your property to let and deal with references. You could also advertise your property to let online. This can be a good low cost option and will promote your rental property to a wider audience than just advertising locally. Landlords offering student accommodation may find it easier to find tenants if they list their rental property online, as student tend to tend to rely on this medium.

4 References, guarantees and deposits

It is a good idea to get references (such as employer, bank, ex-landlords’ or a personal reference) for your tenants. If you are offering student accommodation, references may not be appropriate. Instead, you may want to insist on a parental guarantor, which means that a parent guarantees to pay the rent if the tenant (their child) doesn’t. Finally, ask for a security deposit (also some times referred to as a damage deposit or cleaning deposit). You’ll need to put this in an authorised tenancy deposit scheme or take out a deposit insurance policy.

6 Tips and Tricks for a Cost Efficient Private House Sale

Author: David Cuerden

When you make a decision to avoid the estate agent route and have a private house sale, you have to be ready to do some hard work and spend some money before you are able to profit from the sale of your property (which is in itself a hard thing to do in a slow market like today’s). You will have to stage your home for viewings, pay a solicitor, and give your agent a commission.

It’s no wonder more and more people are choosing to sell privately; figures now stand at 84,000 or seven percent of homes sold in the United Kingdom. Michael and Dana Walker were one of those who chose to go this route. Although they failed to sell without the help of an estate agent, they knew it could be done.

“When we bought our house, the negotiations went on at the kitchen table. It was just between us and the previous owner,” said Dana.

“The seller was able to give us a pretty good price since they didn’t have to pay a 3% percent commission to an agent,” she added.

It is not easy to sell a home privately though, so before you decide to do it, consider your market, your time, and your home. Take the following steps:

1. Research your market.

What is the average price of homes in your neighborhood? Is it a buyer’s market or a market with homes sitting for months without a purchaser or the other way around? Is your house located near high-end boutiques or along a busy main road? If your market circumstances, house condition, or location are not the best or at least acceptable, then you will probably need an experienced estate agent’s professional help.

2. Prep your house for viewings.
You do not have to go all out, but there are a few must-do’s if you are to attract buyers into your home. Start with the exterior – clean the windows, repaint if necessary, and give your front lawn a fresh new landscaping. Inside your house, fix those things that are obviously broken and remove all the clutter.

3. Consult with estate agents.
One of the best ways to determine the best price for your house to is get proposals from at least three different agents. Most agents will actually help you even if they know you are trying to sell privately. According to Ilyce Glink, author of 50 Simple Steps You Can Take to Sell Your Home Faster and for More Money in Any Market,” 80 percent of private sellers give up and end up hiring an agent; smart estate agents know that.

Before you decide on the private house sales route though, you might want to consider selling your house to cash house buyers. It is the quickest, most hassle-free, and most practical way to go if you need to sell your house quickly. There are a number of scenarios where you might need to sell your house fast. It could be that you’re having trouble paying off debts, or that you’re facing repossession, or maybe you’re relocating for a new job. Whatever it is, cash house buyers can finalize the purchase of your house within a few days or weeks. And just as with selling a house privately, you also save on estate agent commission and legal fees since negotiations are only between you and the buyer. They also buy houses in any condition, so there is no need to spend on renovations.

If that’s not for you, then consider these other options:

Private House Sale

If you choose to do this, be prepared to assume tasks usually performed by an estate agent, such as:
· House valuation
· Advertising and marketing the property
· Holding open houses for viewings
· Identifying who the potential right buyers are
· Making disclosures required by the law
· Closing the deal

Make sure you equip yourself with the proper knowledge by doing a lot of research. To avoid lawsuits, find out what is required by the law and hire a good solicitor to review your contract. Glink recommends letting buyers know that you are willing to pay their agent’s commission, if they have one. Otherwise, agents will not be interested in showing their clients your property.

Using online agents

You can put up a for sale sign outside your house, pay for a spot on your local newspaper’s Classified Ads section, or even put up a billboard to market your house. But are you reaching your market as far and wide as you can?

In a wired world, many buyers are actually looking online. There are many free websites such as YouTube, Craigslist, and eBay, where you can post adverts. So it might be worth spending a few pounds to list your property with online agents. According to figures from Estate Agency News, more than 12.6 million buyers searched for properties at the top five property portals in the UK in April 2007 alone. Among these, Rightmove.co.uk has been the most popular; it’s where two out of three of all successful home movers find their new homes.

David Cuerden is a specialist house buyer who can pay cash for houses and provide creative solutions when you need to sell your house quickly and stop house repossession. Visit Quick Home Sale UK Website at http://www.quick-homesale-uk.co.uk

Finding Money For Real Estate Deals

Author: Michael Moreno

Real estate investing can be a surefire road to financial freedom -unless you lack the capital to do deals! This one item -albeit a major one, holds back investors from achieving their dreams more than any other. Most people think that lots of cash on hand is required in order to do deals, but this is simply not the case. There are many other sources of cash for real estate deals available -even in this down market.

One source of funding is called Hard Money. This funding is usually provided by private individuals who will fund the purchase and rehab of investment property. Loan terms are usually 6-12 months. These lenders will charge anywhere from 3-8 points and 10-18% interest for making the loan. (Hence the term “Hard” Money) Care must be taken when using this type of funding, as the property must be rehabbed and sold within a relatively short period of time. The lender is not required to provide extensions, and may simply foreclose on the house at the end of the term.

Wholesaling real estate is a technique where the investor places a house under contract with the seller, and then “sells” the contract to an end-buyer. The investor has none of his own cash in the deal. This technique can be repeated over and over in order to raise cash to purchase real estate to rehab or hold for rental.

Another source is to utilize a home equity line of credit from a bank. These interest rates tend to be lower, and there is no specific end date on the loan term.

Converting an IRA into a self-directed IRA would allow one to borrow money from their IRA to use in real estate transactions. The benefits of this technique include the ability to defer taxes on capital gains, and the possibility of earning far more return on your retirement money than in the stock market.

Borrowing from friends, family, and private individuals is another way to raise the cash for your deals. Most people would be thrilled to earn 8-10% return on their money. If you have experience and can show them some positive results, they would be happy to lend. This technique is similar to using hard money, but there are typically no points paid and the interest rate is usually lower. There are plenty of courses and boot camps out there teaching investors how to raise private money. Because of the difficulty in obtaining bank financing nowadays, this technique is very important.

Seller financing for your deals is a terrific way to get in with no money down. A desperate seller might be willing to finance 100% of a purchase or even delay monthly payments until the deal is rehabbed and sold. Be creative in how you structure your deals with seller financing!

Websites like Prosper.com and other peer-to-peer lending sites can also be great sources of money for deals. Many people are interested in real estate but do not have the knowledge (or courage) to attempt to do a deal. Sell yourself and your real estate prowess on these sites, and people will be interested in lending on your deal.

These are just a few of the possible sources of money for your deals. Real estate investing is all about creativity. Don’t give up just because you do not have the cash!

Michael Moreno
www.cashflowdealmakers.com
mmoreno@cashflowdealmakers

Tips On Buying Wholesale Property

Author: Marcus P. Hairston

When undertaking any venture or opportunity it’s always good to do your research and have a plan of action. Purchasing wholesale real estate is an excellent way to make money in the real estate business. However one might ask the question. What exactly is wholesaling? Wholesaling is buying property from an individual who has control over the property via a contract. Like any other industry that involves the buying and selling of a specific product, at a price is well below the market or retail value. In real estate price is determined by demand. Therefore when demand is high the prices will increase and when demand is low the prices will fall. Most wholesale real estate opportunities are the result of a family situation such as divorce, death, medical, etc… In addition to distress properties which have been neglected for one reason or another and in most cases the owner does not have the financial capacity or desire to renovate the property.

In today’s market the demand is low do to economic factors especially with banks changing their lending criteria. Since the demand for real estate is low this has driven wholesale prices down and increased inventory. Now is an excellent time to purchase properties especially from wholesalers.

So here are a few tips on buying wholesale properties:

Strategy
Identify the strategy that best suits your situation or expertise. When looking for wholesale properties to purchase always keep the end in mind. So, what is your goal? Are you looking to buy and hold for long term wealth or are you looking to buy renovate and resell for quick cash? Answering these questions will help you to identify what to look for and how to plan your exit strategy. Always try to have more than one exit strategy in the event things don’t go as planned. So, when evaluating a deal always look at what options you have if you have to sell or if you have to hold the property.

Evaluation
Evaluating the property is critical to being successful with the purchase of any real estate especially a wholesale property. You want to identify the criteria for establishing the market value of the property. Value is determined by identifying a similar property in a defined distance from the subject property. This distance will vary from town to town. Ideally you want the comparable property to be as close to the subject property as possible. Typically you are looking at a .33 mile radius, however, in places like Baltimore it can be block to block. In other more rural areas you might have to use a mile or more to compare. You must compare like properties, which includes similar square footage, number of bedrooms, number of bathroom, style of structure, lot size, etc…Once you have found the correct radius and a similar style home, you must look at what sold and when it sold. Did it sell yesterday, last week, last month or last year? How long did it take the property to sell? Was it a retail sale or was it being offered as a short sale or bank owned property? Was it renovated or was it dated? Was there seller help or did the buyer pay full price with no help? These questions will help you to establish the value. Please be careful when using various web sites that provide this information, because typically they are not accurate. These sites are good to use as a reference, but they should not replace you doing your own do diligence. The best sources for establishing value the MRIS system and Haines Criss Cross Directory.

Financing
Financing is a critical piece to the real estate purchasing equation. The more creative financing options you have the more deals you will be able to do. Understanding and identifying multiple resources for financing will give you options on the types of deals you are able to do and determine your return on investment. It’s worth the extra time to research and understand this aspect of the business. Start by looking at traditional sources like your local banks they tend to be more flexible then the larger institutions. In addition seek out credit unions, hard money lenders and private funding sources. Find out the terms for their loans and ask if they provide financing for renovations.

Partners
I’m using the term partner in reference to identifying the key people on your real estate team. Real estate is a team sport and requires that you work with several different people to complete a transaction. On any given deal you are working with five to ten people to complete a single transaction. When closing on a deal there is typically a seller, lender, title company/attorney, appraiser, inspector, contractor, property management etc… Start identifying key people to work with or work with a wholesaler who can help you build your team. Building a solid team is important to your success.

Time
Sometimes we tend to over look time as a key factor to success in business. However, time is everything in real estate. Time is equal or greater than money. Remember this important element as it applies to real estate and your ability to leverage others time and resources will directly impact your bottom line. When purchasing a wholesale property it’s important to establish your timeline, because this will impact the return on your investment. Once you have identified your strategy and financing, establish how long it will take to complete your project. Then review a few different timelines to establish the best and worst case scenarios. You will notice that the quicker you get the work done you will be able rent or sell property. The means your pay day will come quicker. So use your time wisely.

Today I have outlined some important tips on buying wholesale properties. Each of these tips will contribute in your success. So determine your strategy, evaluate your deals, get your financing options in place, select your team and do it quickly. Remember working with the right people can help you reach your goals in less time and with less money. Buying and selling real estate can be exciting so good luck and have lots of fun in building your real estate business.

Marcus P. Hairston
www.cashflowdealmakers.com
mphairston@cashflowdealmakers.com

WHAT ARE YOU AFRAID OF?

Author: Annetta Powell

I admit, with all the negative coverage on the state of real estate investing today, it is easy to fall in line with others, thinking that the market is just too risky right now. However, we take risks everyday; most of which we do not even realize. Think about it, when we get in our vehicles each morning and maneuver along the city streets on our way to work, we are taking a risk. Each time we hurry to the airport, settle in and buckle our seatbelts, anticipating our long awaited and well deserved family vacation we are taking a risk. The bottom line is we place our safety, well being and even our futures in the hands of others every day. It is time to take control of your future, cash in on foreclosures and get on the path to financial freedom today.
There are a few reasons people do not invest in real estate; the greatest is fear. There is an acronym for fear that I love: False Evidence Appearing Real. Fear of the unknown, fear of failure and even fear of success can stand in the way of the life you always dreamed of. The only solution to fear is facing it head on. When I first told my family my plans of retiring from corporate America to become an entrepreneur, they thought I was crazy. We have all been taught to obtain the American dream, we have to get a college education and work for thirty years. I realized at a young age, I was never going to become a millionaire working for someone else, so I faced my fear of the unknown, took a leap of faith and trusted that my future situation would certainly be an improvement from my current situation.
At the same time, there are those who are afraid of failure. I surrounded myself with others who also craved success, building a dream team of professionals. I immersed myself in research and have dispelled the current myths about real estate investing. There is a plethora of information available to anyone who is serious about changing the course of their life forever. Do not buy into negativity, horror stories, and the many “what ifs” regarding real estate investing. Sure, I made costly mistakes, but with time, I perfected the techniques of finding, fixing and flipping properties for profit. Now as an expert, I am training others the art of my craft.
Finally, there is the fear of success. For those of you suffering from this, all I can say is take a look around. If real estate investing was such a risky venture, why are investors from as far as Hong Kong coming to the United States in droves buying homes at wholesale prices? Take note of the constant corporate downsizing, there placement of human labor with robotics, the rising cost of fuel and cost of living. We cannot wait for the economy to improve or gas and food prices to decrease, we must make more money. I have sold over 500 properties totaling over $50 million in real estate sales. If you are interested in learning how to effectively make money in real estate using proven strategies, I suggest you go to my blog at http://www.annettapowellblog.com
Annetta Powell
Queen of Real Estate

What Is Real Estate Wholesaling?

Author: Christopher Seder

Wholesaling is seeking out affordable properties and put them in the hands of other investors or buyers. For your trouble of marketing and finding the property you get paid a nice profit that is almost like a finder’s fee. The process of wholesaling houses is one of the most simple and straight forward investing practices out there.

Why in the world does the world need wholesalers?

It seems like the buyer or investor could easily search out cheap properties on his own or her own with no need for the wholesaler. These buyers often do seek out and find some properties but cannot always find the best deals out there or don’t have the time to. Buyers who seek out wholesale deals are usually always on the lookout for more properties. As a wholesaler you have to become a monster marketer. This is what separates wholesalers from your regular investors. Regular investors doing want to do the dirty work and sort through the 50 sellers calls and non motivated leads that come in a week.

Wholesalers do the dirty work of searching in every little crack and crevice to find the deals. As a wholesaler you have to be proficient in marketing, negotiating, rehabbing (because you will be flipping to another investor), if the property cash flow and knowing the market. Learn everything about real estate investing you can.

Here is the wholesaling process the simple version.

Find a motivated seller and negotiate a sales price around 40-65 percent of the after repair value (the value of the house if it were in perfect condition). We have to buy properties at this low price because we consider in rehab costs, carrying cost, closing costs, wholesale fee, and the rehabbers profit. Put the house under contract at a price that will work out with all these expenses added in.

Take the contract to a title company. Let the company know that you will be bringing in an assignment document and another copy of the purchase agreement at the time of closing.
Take the price you agreed on and mark it up anywhere from $2,000 to $100,000 (it will take some time to get a feel for what you think you can wholesale the house for quickly).
Market the property to all investor buyers, landlords and wholesale buyers you know.

Once you find your buyer, simply assign the contract to them with your profit documented as an assignment fee.

Attend the closing deal with the buyer and make sure everything is running smoothly.

Collect you check and then move on to the next deal.

The process is simple enough and can be a great place to build up cash for other investing strategies.

Keep your priorities straight.

As a real estate wholesaler you always have to keep your sellers and buyers best interests first and foremost. This helps the homeowner because you are the one doing the legal work of and saving them lots of time. The reason you are buying from the homeowner is because they were unable to sell on traditional markets and the house is in need to some tender loving care. You are helping them move the property and get rid of the burden.

Homeowners willing to wholesale property are people that have old rundown homes they cannot sell on the market without first fixing up the place. People who have inherited a house and literally have no desire for it or the carrying costs needed to keep the place. Just people who need to or want to get rid of a property. Never take advantage of anyone of these people, figure out what they want out of the transaction and help them get that.

Christopher Seder is a real estate investor in Montana.
Get his FREE mini course at

http://flippingshacks.com

Preparing To Invest In Real Estate

Author: alexoakley

There are some steps that can be taken before you make a real estate investment that can help you minimize the negative situations that could possible arise. It is impossible to eliminate all negative situations, sometimes things will happen that you just cannot see coming, no matter how well you prepare. All of these tips will be helpful whether you are wanting to rent property or you are wanting to make money flipping houses.

One of the easiest things you can do before you make your purchase is to check out the neighborhood. See how many apartment communities there are and see what kind of rates they have. Check and see how many vacancies there are. If you see several complexes that have vacancies, or if you see several “for rent” signs in yards, it may be a bad area for new rental properties. You may want to find another area to make your purchase and then check on that area at a later date.

Check around the community to see if there is any new construction other than residential homes. New shopping centers or recreation areas are more good signs that the neighborhood you are looking at might be a good place to invest in some property.

Also, run down properties are bad signs. If you see several properties that have been neglected, that is a black eye on the neighborhood. You don’t want to see any run down property near a property that you might be interested in investing in. odds are, if it is a nice neighborhood, that you will not see that. Most really nice, desirable neighborhoods are kept well. Everyone wants to live there and investors realize this, so they spend time and money on making their investments very attractive which allows for a premium rental rate. Also, the premium rental rate generally will attract a tenant that will be more apt to take care of the property.

The nice neighborhoods will also allow for easier rental increases from time to time. The demand will be higher in the nicer neighborhoods, therefore, the rents will increase at a higher rate.

If you are an investor that wishes to buy properties to rent, it might be a good idea to find a quality property management company. Some investors like to use property managers, some do not. Notice I said “quality” property managers. Just because you hire a property management company does not mean they will always work well for you. It is just like any other business, some are good and some are bad. It is necessary to do research and find out if you have a property management company in your area that would benefit you.

There you go, a few tips on how to make sure you are buying a real estate investment in a good area. It sounds difficult but it is not. All it takes is a little time and effort.

Real estate investors need all the help they can get. If you want more information, please visit our websites for more advice on how to make money flipping houses or how to develop quality property management skills.