A Realtor has just talked to you and said, "I have a buyer for your property and I can sell it now; perhaps for more money than the price your current real estate agent has it listed for." Have you heard this or a version of this? Or, "I have a buyer for your property and I can sell it now; for Big Bucks (with an incredibly high figure named) perhaps for more money than that."
In the fiercely competitive real estate business, it is a too common practice for one real estate agent to entice a seller to re-list their property with the new Realtor. It is also against the Realtors regulatory requirements in several ways.
If the Realtor will break the rules in his own professional organization where he has been and will be for years perhaps... how honest and ethical will he be with YOU a one time relationship? Frequently, the wording used to entice is vague and the idea insinuated rather than spoken plainly - but the intent is clear. Realtor B suggests or insinuates to the seller "Get rid of Realtor A and list your property with ME as I have several buyers who will buy your property right away." As a seller you want to sell your property and for more money, right? BUT, Do you want a liar to represent you?
This practice of enticing a seller to change listing agents is more common in some places than in other places. There is another version of this which occurs when the seller communicates with several Realtors to decide which Realtor to list his property for sale with. One of those Realtors being interviewed or spoken to by the seller may offer to list the property as much as double or triple the market value in some market places. In others it may be only 2% or 5% more than the others are suggesting. Usually, with more unique properties, at least one Realtor will offer to list the property at 20-40% above market value, in order to get the business. Those are the same Realtors who, knowing the value of billboards, have signs all over the place that are erected to stay for a while. Those same Realtors may have no signs on their properly priced properties as a rule; so that they can sell those properties without splitting the commission with another Realtor in a co-brokerage arrangement. If you hear this type of language or see this type of operations from a Realtor; realize you have just connected to one of the 2% or less who are not fit to deal with and move on to another; don't let your own greed cost you dearly.
A property should be listed very close to market value or better yet, at market value. There IS such as thing as market value and that value can be found by a competent appraiser to within less than 2% and by a competent Realtor too in most cases - but not as an appraisal, as an opinion of value. Market value can also be shown with an honest comparative market analysis, done by a Realtor.
Nearly all buyers are intimately aware of market values for the type, location and price range of property they seek and buyers want property that is below market value not above it. Or at least they want a better property at market value. In other words most buyers are expert at the price range and location they have decided on and they will just ignore properties that are overpriced.
It is not only the Realtor who is isolated from factuality. Frequently the seller pushes the listing agent to put the property on the market far above the market value; in fact that is the case about 70-90% of the time, if a property is overvalued. An honest Realtor will advise the seller of the real value of his property and suggest that he list the property for sale, within 10-15% of the market value.
For a slower sale the property can be listed at or above market value. For a quicker sale, which saves monthly mortgage payments if the seller still makes payments, listing the property at or even a tiny little below market may be what the seller needs. It is the Realtors job to advise the seller honestly and then to abide by the sellers decision.
Now back to those who encourage sellers to change Realtors so that the buyers they have will buy the property. They are liars. If they really had a buyer, other than themselves, they would sell that property to the buyer right now and not dare wait to get the property relisted and risk losing the buyer as timing is everything. IF they did really have a buyer they would sell the property to that buyer now and co-broke with the sellers current Realtor. And if they say they can get more money than your current Realtor has it listed for or more than market value - then if they were not misleading, they would go ahead and sell it now for the lesser amount and be a champion to their buyer -- wouldn't they?
THINK ABOUT IT!
Copyright 2000-2005 by www.JodyHudson.com
Jody Hudson has been a Realtor for 35 years across America and in Delaware.
Source for this article is: http://www.kate-jody.com/essays/whatdidyousay.html
Wednesday, October 21, 2009
Tuesday, October 13, 2009
Why Do Realtors Advertise Your Home in Print,on the Radio, on Television, etc.?
Why Do Realtors Advertise Your Home in Print,on the Radio, on Television, etc.?
Realtors represent a huge part of the national advertising expenditure each year in newspapers, magazines, radio and television. Every seller would like to see their home in a large, impressive ad. The seller wants the Realtor to run the ads large and constantly until the home is sold. Realtors on the other hand know, if they keep good records, that few buyers purchase as a result of any print ad. The advertising is done to find a person, any person, who is seeking to purchase some sort of property at some price. A prospective purchaser may call on a large, expensive, waterfront home and end up buying a small cottage in the country.
Prospective purchasers sometimes come to our area and pick up some, or even all, of the local papers and sales periodicals of all sorts. At last count I found 29 different newspapers, magazines and real estate sales sheets that promote real estate in our local and surrounding areas. As a buyer is going through the several hundred real estate ads, that buyer then decides on perhaps a dozen to call about. That buyer is only calling to find out which property to eliminate from his list of possible purchases. Most of the time the prospective purchaser will eliminate all of the properties he calls on or all but one or two. For this reason the expensive ads bring in very few calls and far fewer appointments to show properties. Add to this the fact that sellers who want too much money, want the most advertising.
Here is a little inside trivia for you: the average cost per phone call from print advertising is well over $5,000 per call in our area. More than 80% of those calls will not give a phone number or contact data. And most of those calls are not qualified, ready, willing, or able to buy the property they call on. Shocking isn't it? I kept the records for two years for a 55 person office recently and the cost of print advertising to get ONE purchaser as a direct result of the ad was over $100,000... perhaps well over that because we only had two in two years so that is not a big base to support an average upon.
The average percentages for this area are that for every four thousand dollars in advertising expense, of any kind, a Real Estate agent can expect 1 to 5 calls, if the ad is well presented and if the property is priced right, and advertised with full particulars and it's in one of the most popular areas.
As a general rule for each 10 calls received the Real Estate agent will set 1 to 3 appointments - seldom is that appointment set for the property that was called on. And then the very best agents will be able to convert 20% of the appointments into sales. So let's see how this works out in a budgetary sense. The most effective ads on the most popular properties which are priced the most attractively; can result in twenty thousand dollars in ads obtaining perhaps 20 calls, resulting hopefully in 5 appointments and five appointments to get one sale. What a dream this business would be it that were always and predictably true. Most ads, no matter how big, beautiful and attractive get no calls, therefore no appointments and no sales. And, if you remember your math, zeros don't average well. :)
So why do Realtors spend so much money on advertising. The most important reason is that sellers demand to see their property in the paper - hopefully in a large ad and in every paper until it's sold. In fact it is well known that the more overpriced the property is, the more the seller wants it advertised and the less calls are obtained. The Realtor wants to advertise only the most attractive properties that are the most attractively priced. However, we all know that the bigger the ads and the more advertising that a Realtor does - the more the sellers like it and the more they want to be affiliated with the most well advertised Realtor. Thus the Realtor gets more listings, not more sales!
Most properties are sold because of the MLS and a response from one of the other Realtors, or from a Web Site, OR in more rare cases, the real estate agent calls, writes or speaks to someone about the property that is for sale to someone that the real estate agent has been working with, often a customer the Realtor has been working with for weeks, months or even years.
Real estate agents spend most of their time and energy repeatedly getting back to prospective customers, contacting those who have already looked at properties and found nothing they like - to tell them of a new property and contacting other Realtors to alert them or remind them of a property for sale. We also send out thousands of postcards, letters, and e-mails. The more successful agents may have as many as a dozen people behind the scenes just sending out communications, of various sorts and constantly following up, with the intention of keeping the one senior partner, the visable selling partner busy with appointments.
Each ad, letter, postcard, call, e-mail or personal contact can be called a "Presentation Impression". It takes several thousand "presentation impressions" as we call them for each appointment and tens of thousands of these presentation impressions per sale.
One of my close friends sold her own house. It took her about a year, holding an open house almost every day, advertising it frequently in the various papers and presenting her home one way or another to perhaps three thousand people in the process. She is quite a good salesperson, her home was very attractive, very well located and finally sold as the market came up PAST the price she was asking for the home.
She found out after she sold it that there had been such unusual appreciation for homes like hers in her neighborhood that she actually sold her home about 15% too cheap after all that time and work and expense. She LOST over $30,000 in sales price in order to save $4,000 in commissions. Although she loved meeting all those people and showing them through her home; she would have saved over a year's mortgage payments and gotten about 15% more for her home if she had listed it with a local Realtor.
She probably won't use a Realtor the next time either; she loves selling her own home - it's like one long house party for her, in my opinion. More power to her! I suspect that with the signs, ads, and those she met at the open house every day - she may have set a new record for the most number of presentation impressions for one house sale. But, then she had no other home she could sell to those who came ready to buy a home and didn't fit her home. From listening carefully to her talk about her advertising, she spent about 8% of the total she got for the home in newspaper ads, more than the commission would have been. We won't count her time, she loved showing her home to all those thousands of people!!! She didn't use a realtor, saved about $4,000 and it cost her at least $50,000 to save the $4,000.
Realtors advertise to find sellers more than buyers, when they use conventional means of print, radio, TV, etc.
There is a new game in town however. Web marketing. Advertising on the Internet with a PROPERLY DONE, Real Estate web site is the most effective way to find buyers we have ever had. Realtors, for that reason, are the second highest user of the Internet.
The most effective real estate web sites have lots of pictures, lots of information and are the most user-friendly to the Internet visitor. Although it is very expensive to have an effective web site - most of that expense is in hours rather than money. Only about 2% of the real estate web sites are effective - actually it looks to be like less than 1% of all the real estate sites that work for the Realtor... according to my observations and experience.
Few Realtors spend the time and money to give the buyers what they want. We hope we are giving our prospective sellers and purchasers what they want to see in every way. We get 2 to 10 emails and about 20 calls a day about our properties and many of them result in appointments to see the exact property they have reviewed on our site. Because we have all the data, maps so they can drive by and numerous pictures of the inside.
If YOU can figure any way that we can be more helpful and better for our prospective purchasers please take a look at the rest of our web site and check it out thoroughly. Write me and let me know if there is something you feel we can do better to help you make a property selection or feel more ready to purchase.
We wish you all the best, and thanks for taking the time to read this.
Copyright 2000-2005 by www.JodyHudson.com
Jody Hudson has been a Realtor for 30 years across America and in Delaware
Realtors represent a huge part of the national advertising expenditure each year in newspapers, magazines, radio and television. Every seller would like to see their home in a large, impressive ad. The seller wants the Realtor to run the ads large and constantly until the home is sold. Realtors on the other hand know, if they keep good records, that few buyers purchase as a result of any print ad. The advertising is done to find a person, any person, who is seeking to purchase some sort of property at some price. A prospective purchaser may call on a large, expensive, waterfront home and end up buying a small cottage in the country.
Prospective purchasers sometimes come to our area and pick up some, or even all, of the local papers and sales periodicals of all sorts. At last count I found 29 different newspapers, magazines and real estate sales sheets that promote real estate in our local and surrounding areas. As a buyer is going through the several hundred real estate ads, that buyer then decides on perhaps a dozen to call about. That buyer is only calling to find out which property to eliminate from his list of possible purchases. Most of the time the prospective purchaser will eliminate all of the properties he calls on or all but one or two. For this reason the expensive ads bring in very few calls and far fewer appointments to show properties. Add to this the fact that sellers who want too much money, want the most advertising.
Here is a little inside trivia for you: the average cost per phone call from print advertising is well over $5,000 per call in our area. More than 80% of those calls will not give a phone number or contact data. And most of those calls are not qualified, ready, willing, or able to buy the property they call on. Shocking isn't it? I kept the records for two years for a 55 person office recently and the cost of print advertising to get ONE purchaser as a direct result of the ad was over $100,000... perhaps well over that because we only had two in two years so that is not a big base to support an average upon.
The average percentages for this area are that for every four thousand dollars in advertising expense, of any kind, a Real Estate agent can expect 1 to 5 calls, if the ad is well presented and if the property is priced right, and advertised with full particulars and it's in one of the most popular areas.
As a general rule for each 10 calls received the Real Estate agent will set 1 to 3 appointments - seldom is that appointment set for the property that was called on. And then the very best agents will be able to convert 20% of the appointments into sales. So let's see how this works out in a budgetary sense. The most effective ads on the most popular properties which are priced the most attractively; can result in twenty thousand dollars in ads obtaining perhaps 20 calls, resulting hopefully in 5 appointments and five appointments to get one sale. What a dream this business would be it that were always and predictably true. Most ads, no matter how big, beautiful and attractive get no calls, therefore no appointments and no sales. And, if you remember your math, zeros don't average well. :)
So why do Realtors spend so much money on advertising. The most important reason is that sellers demand to see their property in the paper - hopefully in a large ad and in every paper until it's sold. In fact it is well known that the more overpriced the property is, the more the seller wants it advertised and the less calls are obtained. The Realtor wants to advertise only the most attractive properties that are the most attractively priced. However, we all know that the bigger the ads and the more advertising that a Realtor does - the more the sellers like it and the more they want to be affiliated with the most well advertised Realtor. Thus the Realtor gets more listings, not more sales!
Most properties are sold because of the MLS and a response from one of the other Realtors, or from a Web Site, OR in more rare cases, the real estate agent calls, writes or speaks to someone about the property that is for sale to someone that the real estate agent has been working with, often a customer the Realtor has been working with for weeks, months or even years.
Real estate agents spend most of their time and energy repeatedly getting back to prospective customers, contacting those who have already looked at properties and found nothing they like - to tell them of a new property and contacting other Realtors to alert them or remind them of a property for sale. We also send out thousands of postcards, letters, and e-mails. The more successful agents may have as many as a dozen people behind the scenes just sending out communications, of various sorts and constantly following up, with the intention of keeping the one senior partner, the visable selling partner busy with appointments.
Each ad, letter, postcard, call, e-mail or personal contact can be called a "Presentation Impression". It takes several thousand "presentation impressions" as we call them for each appointment and tens of thousands of these presentation impressions per sale.
One of my close friends sold her own house. It took her about a year, holding an open house almost every day, advertising it frequently in the various papers and presenting her home one way or another to perhaps three thousand people in the process. She is quite a good salesperson, her home was very attractive, very well located and finally sold as the market came up PAST the price she was asking for the home.
She found out after she sold it that there had been such unusual appreciation for homes like hers in her neighborhood that she actually sold her home about 15% too cheap after all that time and work and expense. She LOST over $30,000 in sales price in order to save $4,000 in commissions. Although she loved meeting all those people and showing them through her home; she would have saved over a year's mortgage payments and gotten about 15% more for her home if she had listed it with a local Realtor.
She probably won't use a Realtor the next time either; she loves selling her own home - it's like one long house party for her, in my opinion. More power to her! I suspect that with the signs, ads, and those she met at the open house every day - she may have set a new record for the most number of presentation impressions for one house sale. But, then she had no other home she could sell to those who came ready to buy a home and didn't fit her home. From listening carefully to her talk about her advertising, she spent about 8% of the total she got for the home in newspaper ads, more than the commission would have been. We won't count her time, she loved showing her home to all those thousands of people!!! She didn't use a realtor, saved about $4,000 and it cost her at least $50,000 to save the $4,000.
Realtors advertise to find sellers more than buyers, when they use conventional means of print, radio, TV, etc.
There is a new game in town however. Web marketing. Advertising on the Internet with a PROPERLY DONE, Real Estate web site is the most effective way to find buyers we have ever had. Realtors, for that reason, are the second highest user of the Internet.
The most effective real estate web sites have lots of pictures, lots of information and are the most user-friendly to the Internet visitor. Although it is very expensive to have an effective web site - most of that expense is in hours rather than money. Only about 2% of the real estate web sites are effective - actually it looks to be like less than 1% of all the real estate sites that work for the Realtor... according to my observations and experience.
Few Realtors spend the time and money to give the buyers what they want. We hope we are giving our prospective sellers and purchasers what they want to see in every way. We get 2 to 10 emails and about 20 calls a day about our properties and many of them result in appointments to see the exact property they have reviewed on our site. Because we have all the data, maps so they can drive by and numerous pictures of the inside.
If YOU can figure any way that we can be more helpful and better for our prospective purchasers please take a look at the rest of our web site and check it out thoroughly. Write me and let me know if there is something you feel we can do better to help you make a property selection or feel more ready to purchase.
We wish you all the best, and thanks for taking the time to read this.
Copyright 2000-2005 by www.JodyHudson.com
Jody Hudson has been a Realtor for 30 years across America and in Delaware
Saturday, October 10, 2009
How Much Home Can You Afford In Todays Market?
If you haven't figured your credit worthiness and borrowing power lately, you might be surprised at how much home you can afford to buy in today's market! Mortgage Lenders are very optimistic about the future of the real estate market and as a result they are willing to loan more on properties than you might expect! And, lenders are making loans at rates not seen since the late 1960s.
We,as your Realtor, will be most willing to align you with one of our favored lenders for a private and complete analysis of your borrowing power. There are many different mortgage programs available to you -- some that you may not have heard of or even imagined before. Now is a great time to take a look at what's available to you! Every day we help buyers find and finance their next dream home. We can help you, too -- if you call us.
Here's what we'll do for you:
Step 1: We can show you how or connect you to the right lender, to get you pre-qualified or even get you a signed loan commitment for an exact maximum amount with exact terms and conditions -- and THEN you can search for the land or home of your choice with full knowledge of your ability to purchase it in today's challengingly fast moving market.
Properties here have been selling FAST, if they are priced at the market; seldom more than a few weeks. There are some exceptions; where the home is an unusual color, the lot an unusual shape or the floor plan too eccentric for most buyers or the seller has priced the property too high and is waiting for the market to catch up. These can be exceptional buys.
Some locations are not as hot and properties sell more slowly -- but there are VERY FEW to choose from.
Your ability to purchase and own the property you want will be greatly enhanced after a phone consultation with a lender. You will get the answers from your lender, usually in a few minutes or hours. If you are looking for an older property or a "fixer-upper" the lender will usually tell you that they can make arrangements to finance the restoration and remodeling costs too! For those with strong credit, there are even loans for up to 103% of the purchase price, allowing you to get a home with nothing down and finance the settlement costs too.
Step 2: We will meet with you and discuss with you a selection of properties that are within your ability to purchase. Many will not suit your needs perhaps; but we can mutually learn from that first meeting and tailor a few meaningful appointments and showings that will better utilize your time and ours. It is difficult to make an informed and logical choice when too many properties are seen at one time -- especially when most or even all of them could have been eliminated due to unsuitability for you and your family.
Step 3: At this point or preferably earlier, to give you the best service; you will be advised to sign an agreement with us so that we may represent YOU in your purchasing decision. Otherwise by law we must represent only the seller; that is the way the law is written and we must obey or lose our license to do business. All of our buying clients sign Buyer's Agent agreements! We can also work as dual agents for you as a buyer when the property for sale is our listing. Either agreement allows us to represent YOU too and not only the seller. You should take advantage of the Buyer's Agent agreement.
Step 4: Kate and I can then usually preview the properties that look the most interesting to you. After we inspect them, we can better guide you as to whether certain properties are more or less suited to you. In some cases we can even advise you to NOT purchase a specific property when we are representing you instead of the seller. We can also go to a specific property for you and take more pictures with our digital camera and then send them to you via e-mail to give you more insight and help you better determine your interest (or not) in coming to see the property yourself. We prefer to work by email. We do not take calls during appointments and email allows us to work, keep a record of all our communications, as we are working with many people and some of them for weeks, months or even years before they purchase. Email is by far our prefered method of communication other than our appointments with you. At times we will need a back and forth two way phone conversation, sometimes on speaker phone with both of us or others so that all can be involved in the discussion; but we still follow that up with an email of notes on the discussion.
Step 5: This is the exciting part! After these first steps we will go with you (and your spouse or other decision making family members) to see those few properties that are affordable and suitable for you. AND since you now know exactly what you can afford -- you can then write a purchase offer or agreement at this point without any surprise or any difficult financing problem! In this fast paced market, not writing an offer or full price contract within hours or days of seeing the property will often eliminate your opportunity to purchase and meanwhile prices are going up by the DAY as each seller wants to get quite a bit more than the last one... wouldn't you?
In this market some sellers will not even sell a property to someone who is not already qualified to purchase their property with proven cash, a loan commitment or some other suitable financing capability.
Step 6: At this point you can return to your normal life with only a few more short and easy responsibilities between your agreement to purchase (once the seller has also agreed) and your final ownership of the property. It is usually only four to six weeks from the time of a fully agreed upon and finalized agreement to purchase and your ownership of your new property -- on land the final settlement can be two weeks or less!!! You will need to make some choices regarding inspections and evaluations by professionals during this time. We can usually handle all but a few details of these recommended actions.
Step 7: Enjoy your new property! And, remember as your Realtor, we are available to you after you own your property, if you need some additional professionals to help you enhance your purchase, improve the property, make repairs, remodel, paint, find a lawn service, etc.
We know folks who have proven reliable and if we give their contact data to you we want you to let us know if they don't serve you well! If they don't we have some additional clout in that we can stop referring them and we are locals who they know will spread the word if they don't properly care for our clients. Once you have done business with us -- we consider you family!
We are available for you; just call us or write us. Meanwhile you may want to recommend others to come to our Web site here as we add articles from time to time. Or just send it to anyone who may benefit from it as you wish. All we ask is that you send our web site address as well when you send them the article so that they will have the source; that will give us the copyright protection we ask for.
Copyright 2001-2005 www.JodyHudson.com
Jody Hudson is a Realtor with 35 years experience in the business nationally and in Delaware.
Article source: http://www.kate-jody.com/essays/afford.html
We,as your Realtor, will be most willing to align you with one of our favored lenders for a private and complete analysis of your borrowing power. There are many different mortgage programs available to you -- some that you may not have heard of or even imagined before. Now is a great time to take a look at what's available to you! Every day we help buyers find and finance their next dream home. We can help you, too -- if you call us.
Here's what we'll do for you:
Step 1: We can show you how or connect you to the right lender, to get you pre-qualified or even get you a signed loan commitment for an exact maximum amount with exact terms and conditions -- and THEN you can search for the land or home of your choice with full knowledge of your ability to purchase it in today's challengingly fast moving market.
Properties here have been selling FAST, if they are priced at the market; seldom more than a few weeks. There are some exceptions; where the home is an unusual color, the lot an unusual shape or the floor plan too eccentric for most buyers or the seller has priced the property too high and is waiting for the market to catch up. These can be exceptional buys.
Some locations are not as hot and properties sell more slowly -- but there are VERY FEW to choose from.
Your ability to purchase and own the property you want will be greatly enhanced after a phone consultation with a lender. You will get the answers from your lender, usually in a few minutes or hours. If you are looking for an older property or a "fixer-upper" the lender will usually tell you that they can make arrangements to finance the restoration and remodeling costs too! For those with strong credit, there are even loans for up to 103% of the purchase price, allowing you to get a home with nothing down and finance the settlement costs too.
Step 2: We will meet with you and discuss with you a selection of properties that are within your ability to purchase. Many will not suit your needs perhaps; but we can mutually learn from that first meeting and tailor a few meaningful appointments and showings that will better utilize your time and ours. It is difficult to make an informed and logical choice when too many properties are seen at one time -- especially when most or even all of them could have been eliminated due to unsuitability for you and your family.
Step 3: At this point or preferably earlier, to give you the best service; you will be advised to sign an agreement with us so that we may represent YOU in your purchasing decision. Otherwise by law we must represent only the seller; that is the way the law is written and we must obey or lose our license to do business. All of our buying clients sign Buyer's Agent agreements! We can also work as dual agents for you as a buyer when the property for sale is our listing. Either agreement allows us to represent YOU too and not only the seller. You should take advantage of the Buyer's Agent agreement.
Step 4: Kate and I can then usually preview the properties that look the most interesting to you. After we inspect them, we can better guide you as to whether certain properties are more or less suited to you. In some cases we can even advise you to NOT purchase a specific property when we are representing you instead of the seller. We can also go to a specific property for you and take more pictures with our digital camera and then send them to you via e-mail to give you more insight and help you better determine your interest (or not) in coming to see the property yourself. We prefer to work by email. We do not take calls during appointments and email allows us to work, keep a record of all our communications, as we are working with many people and some of them for weeks, months or even years before they purchase. Email is by far our prefered method of communication other than our appointments with you. At times we will need a back and forth two way phone conversation, sometimes on speaker phone with both of us or others so that all can be involved in the discussion; but we still follow that up with an email of notes on the discussion.
Step 5: This is the exciting part! After these first steps we will go with you (and your spouse or other decision making family members) to see those few properties that are affordable and suitable for you. AND since you now know exactly what you can afford -- you can then write a purchase offer or agreement at this point without any surprise or any difficult financing problem! In this fast paced market, not writing an offer or full price contract within hours or days of seeing the property will often eliminate your opportunity to purchase and meanwhile prices are going up by the DAY as each seller wants to get quite a bit more than the last one... wouldn't you?
In this market some sellers will not even sell a property to someone who is not already qualified to purchase their property with proven cash, a loan commitment or some other suitable financing capability.
Step 6: At this point you can return to your normal life with only a few more short and easy responsibilities between your agreement to purchase (once the seller has also agreed) and your final ownership of the property. It is usually only four to six weeks from the time of a fully agreed upon and finalized agreement to purchase and your ownership of your new property -- on land the final settlement can be two weeks or less!!! You will need to make some choices regarding inspections and evaluations by professionals during this time. We can usually handle all but a few details of these recommended actions.
Step 7: Enjoy your new property! And, remember as your Realtor, we are available to you after you own your property, if you need some additional professionals to help you enhance your purchase, improve the property, make repairs, remodel, paint, find a lawn service, etc.
We know folks who have proven reliable and if we give their contact data to you we want you to let us know if they don't serve you well! If they don't we have some additional clout in that we can stop referring them and we are locals who they know will spread the word if they don't properly care for our clients. Once you have done business with us -- we consider you family!
We are available for you; just call us or write us. Meanwhile you may want to recommend others to come to our Web site here as we add articles from time to time. Or just send it to anyone who may benefit from it as you wish. All we ask is that you send our web site address as well when you send them the article so that they will have the source; that will give us the copyright protection we ask for.
Copyright 2001-2005 www.JodyHudson.com
Jody Hudson is a Realtor with 35 years experience in the business nationally and in Delaware.
Article source: http://www.kate-jody.com/essays/afford.html
Wednesday, October 7, 2009
Regarding Real Estate On Leased Land
1.Why are there so many properties on leased land?
There are several situations here. Business and commercial land is often leased all over the world. In New York City, Tokyo, and other larger, older cities; land owners often lease the land that is underneath those skyscrapers and in some cases even the park land is leased to the city by the land owners.
In Lewes, all of the land east of the Lewes and Rehoboth Canal, what is known as Lewes Beach; is leased land. The land leases there are usually owned by the Town of Lewes and are usually for 99 years and renewable. Some of the properties on Lewes Beach, however, are leased for shorter terms by the town, but as a rule all of these are automatically renewable. When you buy a property on Lewes Beach you pay a fee to get the leased land re-assigned to you. That fee for a Bay Front Property, on the Delaware Bay; can be well over a half million dollars, depending on the size of the lot; and the value of the home and improvements is added to the lease assignment value. In other words, even though it is leased land on Lewes Beach; the price is commensurate with purchasing the land. This land has always been leased land as prescribed by England, during our American Colonial Period and that ownership style remains.
In Rehoboth and Dewey Beach areas, is the Rehoboth By The Sea area, a large number of the lots are owned by the family owned Rehoboth By The Sea Realty Company. The current treasurer of Rehoboth By The Sea Realty Company is Jack Redefer; 302-227-4277. Land is leased to the tenant-owners for shorter periods of years; some leases have as little as 20 years left on the lease. These leases may or may not be renewed and the land value if the resident is allowed to purchase it later, could be significant. As a result these properties on leased land go for much less money that the lots that are owned. Some of the lots have been purchased from the Rehoboth By The Sea Realty Company in the past and are owned by the residents - most have not been purchased. Rehoboth By The Sea Realty Company will not likely renew some of the leases, some they may, it is up to them. On the lots that they do not renew the leases for - the residents are required to remove the improvements and leave the land in it's original level and unimproved condition at the end of the lease. The good news is that you can save as much as half a million dollars when you purchase a home on some of these lots. The bad news of course is that you may have to remove the home and vacate the lot in a couple of decades or so.
Long Neck and other areas where there are trailers, manufactured homes, single wides, or double wides also are comprised of mostly leased land. There is some leased land along Rt. One, where trailer parks now, at times, contain larger and more conventional homes as well. These land-lease communities are far less expensive to purchase. The appreciation in value is small or nonexistent - or in some cases the value of a property purchased on these leased-land communities can depreciate to far less than the purchase price. There is also a monthly or annual lease fee to pay for the use of the land.
2.Why would anyone purchase a mobile home or manufactured home on leased land?
There are many, Realtors included, who wonder why in the world anyone would ever purchase a so called mobile home on leased land. Actually many of the folks who live in the leased land communities are well to do, even wealthy in some cases, many are Realtors themselves.
Safety and security is one reason. Many of the folks in land lease communities, which some might call trailer parks, are retired or part time residents. There are many who prefer the security services which are only available in the manufactured home communities. Most of these communities have community centers, neighborhood watches, security patrols, and alert neighbors who keep a far better eye on the community than the police force can in a town or city.
Low maintenance is another reason people, in fact most people, live in land lease communities. The lots are usually quite small and often the park owner maintains each of the lots. When the individual does need to maintain their individual lot the grass cutting expense is minimal. The fee for cutting the grass, edging and trimming can be as little as $8 each time, as the grass cutter can often take care of a lot in less than ten minutes and if he has several lots in the same community he can do 5 or 6 lots per hour with a push mower and a weed whacker. Some folks do fabulous landscaping jobs on their land-lease community lots. In fact some communities have annual or seasonal competitions for the best kept, most beautiful, or most improved yard. Many of these lots are only 50 feet by 100 feet, sometimes less - so a lot of beautification can be done with limited expense compared to the far larger lots that one must have in a non leased community.
3.Are homes on leased land a good investment?
Very seldom are homes on leased land a good financial investment. There are exceptions. The homes on the leased land on Lewes Beach are just as good as financial investments as the homes on what is called in-fee or deeded land in Lewes town proper. In fact, since the Lewes Beach is more desirable to more people - the prices are higher and the percentage of appreciation on Lewes Beach is, over the long term, better than those in Lewes proper. The town of Lewes, other than the beach, is more of a Williamsburg flavor in architecture, ambiance and character. Lewes Beach on the other hand is less traditional in it's architectural character. The town of Lewes is very much a walking and shopping town with shops, boutiques, and little stores along Market Street, Second Street and Pilottown Road, especially. The beach has very little commercial activity and is far more a beachy bedroom community where the focus is of course the beach, the canal and the bay.
Homes, manufactured homes or stick-built homes on the other land lease communities are not often a good financial investment. However they may be the best investment in lifestyle. Many folks have other real estate, other investments, and do not need to have the home they own in a land-lease community appreciate in value. And, the homes in the land lease communities are a small fraction of the purchase price that they would be if the land were deeded, in-fee.
For instance, a waterfront home on the Rehoboth Bay in Rehoboth Bay Mobile Home Community; now known simply as Rehoboth Bay Community; may cost as little as $115,000, for a beautiful, double wide, full time, modern home. The land rent would then be from $400 a month on a lagoon to $500, up to $750 a month or more on the largest and best bay front lots. Compared to a home on deeded land the same size that is a savings of over a million dollars!!! So, as an investment in lifestyle it is phenomenal and astute buyers seldom allow these homes to sit on the market.
Other areas, for instance the Angola Area are, have resale homes from $10,000 for a small fixer-upper on a small lot leased at $270 a month to brand new homes on much larger lots, large homes, for $70,000 to $90,000 on lots that rent for usually less than $300 per month. One double size corner lot rents for $400 a month and could have a many bedroom home with decks, porches, garage and still room left over. Angola Beach Estates and Angola Beach and Angola Estates are well established communities with pools, security, substantial community management and lots more. They have community centers, boat docks, launching ramps, boat storage areas, and a list of amenities not available in many other communities.
What a range of values: resales from $10,000 to $80,000 and new homes from $40,000 to $80,000 or $90,000 for a real show stopping extravaganza. Now you know why people are so willing to buy and live in land lease communities!!! You get a wonderful lifestyle for far less than you can purchase anything even remotely similar where you don't lease or rent the land.
Copyright 2002-2005 by www.JodyHudson.com
Mr Jody Hudson is a realtor living in southern Delaware with 35 years dealing with real estate on leased lands!
Source for this article is: http://www.kate-jody.com/essays/faqleasedland.html
There are several situations here. Business and commercial land is often leased all over the world. In New York City, Tokyo, and other larger, older cities; land owners often lease the land that is underneath those skyscrapers and in some cases even the park land is leased to the city by the land owners.
In Lewes, all of the land east of the Lewes and Rehoboth Canal, what is known as Lewes Beach; is leased land. The land leases there are usually owned by the Town of Lewes and are usually for 99 years and renewable. Some of the properties on Lewes Beach, however, are leased for shorter terms by the town, but as a rule all of these are automatically renewable. When you buy a property on Lewes Beach you pay a fee to get the leased land re-assigned to you. That fee for a Bay Front Property, on the Delaware Bay; can be well over a half million dollars, depending on the size of the lot; and the value of the home and improvements is added to the lease assignment value. In other words, even though it is leased land on Lewes Beach; the price is commensurate with purchasing the land. This land has always been leased land as prescribed by England, during our American Colonial Period and that ownership style remains.
In Rehoboth and Dewey Beach areas, is the Rehoboth By The Sea area, a large number of the lots are owned by the family owned Rehoboth By The Sea Realty Company. The current treasurer of Rehoboth By The Sea Realty Company is Jack Redefer; 302-227-4277. Land is leased to the tenant-owners for shorter periods of years; some leases have as little as 20 years left on the lease. These leases may or may not be renewed and the land value if the resident is allowed to purchase it later, could be significant. As a result these properties on leased land go for much less money that the lots that are owned. Some of the lots have been purchased from the Rehoboth By The Sea Realty Company in the past and are owned by the residents - most have not been purchased. Rehoboth By The Sea Realty Company will not likely renew some of the leases, some they may, it is up to them. On the lots that they do not renew the leases for - the residents are required to remove the improvements and leave the land in it's original level and unimproved condition at the end of the lease. The good news is that you can save as much as half a million dollars when you purchase a home on some of these lots. The bad news of course is that you may have to remove the home and vacate the lot in a couple of decades or so.
Long Neck and other areas where there are trailers, manufactured homes, single wides, or double wides also are comprised of mostly leased land. There is some leased land along Rt. One, where trailer parks now, at times, contain larger and more conventional homes as well. These land-lease communities are far less expensive to purchase. The appreciation in value is small or nonexistent - or in some cases the value of a property purchased on these leased-land communities can depreciate to far less than the purchase price. There is also a monthly or annual lease fee to pay for the use of the land.
2.Why would anyone purchase a mobile home or manufactured home on leased land?
There are many, Realtors included, who wonder why in the world anyone would ever purchase a so called mobile home on leased land. Actually many of the folks who live in the leased land communities are well to do, even wealthy in some cases, many are Realtors themselves.
Safety and security is one reason. Many of the folks in land lease communities, which some might call trailer parks, are retired or part time residents. There are many who prefer the security services which are only available in the manufactured home communities. Most of these communities have community centers, neighborhood watches, security patrols, and alert neighbors who keep a far better eye on the community than the police force can in a town or city.
Low maintenance is another reason people, in fact most people, live in land lease communities. The lots are usually quite small and often the park owner maintains each of the lots. When the individual does need to maintain their individual lot the grass cutting expense is minimal. The fee for cutting the grass, edging and trimming can be as little as $8 each time, as the grass cutter can often take care of a lot in less than ten minutes and if he has several lots in the same community he can do 5 or 6 lots per hour with a push mower and a weed whacker. Some folks do fabulous landscaping jobs on their land-lease community lots. In fact some communities have annual or seasonal competitions for the best kept, most beautiful, or most improved yard. Many of these lots are only 50 feet by 100 feet, sometimes less - so a lot of beautification can be done with limited expense compared to the far larger lots that one must have in a non leased community.
3.Are homes on leased land a good investment?
Very seldom are homes on leased land a good financial investment. There are exceptions. The homes on the leased land on Lewes Beach are just as good as financial investments as the homes on what is called in-fee or deeded land in Lewes town proper. In fact, since the Lewes Beach is more desirable to more people - the prices are higher and the percentage of appreciation on Lewes Beach is, over the long term, better than those in Lewes proper. The town of Lewes, other than the beach, is more of a Williamsburg flavor in architecture, ambiance and character. Lewes Beach on the other hand is less traditional in it's architectural character. The town of Lewes is very much a walking and shopping town with shops, boutiques, and little stores along Market Street, Second Street and Pilottown Road, especially. The beach has very little commercial activity and is far more a beachy bedroom community where the focus is of course the beach, the canal and the bay.
Homes, manufactured homes or stick-built homes on the other land lease communities are not often a good financial investment. However they may be the best investment in lifestyle. Many folks have other real estate, other investments, and do not need to have the home they own in a land-lease community appreciate in value. And, the homes in the land lease communities are a small fraction of the purchase price that they would be if the land were deeded, in-fee.
For instance, a waterfront home on the Rehoboth Bay in Rehoboth Bay Mobile Home Community; now known simply as Rehoboth Bay Community; may cost as little as $115,000, for a beautiful, double wide, full time, modern home. The land rent would then be from $400 a month on a lagoon to $500, up to $750 a month or more on the largest and best bay front lots. Compared to a home on deeded land the same size that is a savings of over a million dollars!!! So, as an investment in lifestyle it is phenomenal and astute buyers seldom allow these homes to sit on the market.
Other areas, for instance the Angola Area are, have resale homes from $10,000 for a small fixer-upper on a small lot leased at $270 a month to brand new homes on much larger lots, large homes, for $70,000 to $90,000 on lots that rent for usually less than $300 per month. One double size corner lot rents for $400 a month and could have a many bedroom home with decks, porches, garage and still room left over. Angola Beach Estates and Angola Beach and Angola Estates are well established communities with pools, security, substantial community management and lots more. They have community centers, boat docks, launching ramps, boat storage areas, and a list of amenities not available in many other communities.
What a range of values: resales from $10,000 to $80,000 and new homes from $40,000 to $80,000 or $90,000 for a real show stopping extravaganza. Now you know why people are so willing to buy and live in land lease communities!!! You get a wonderful lifestyle for far less than you can purchase anything even remotely similar where you don't lease or rent the land.
Copyright 2002-2005 by www.JodyHudson.com
Mr Jody Hudson is a realtor living in southern Delaware with 35 years dealing with real estate on leased lands!
Source for this article is: http://www.kate-jody.com/essays/faqleasedland.html
Monday, October 5, 2009
How I Became a Real Estate Investor
Recently I closed on the sale of two homes. They were located about a mile apart and had comparable market values. However, beyond these two similarities, the two deals were very different from each other. Let me discuss in more detail the similarities and differences of the two deals.
My business partner and I purchased both properties from families who were in preforeclosure. The leads for each property came from letters that I had mailed to families who had recently received Notices of Default. The one family responded to me within 24 hours of receiving my first letter. I met with them within two hours of receiving their phone call and signed a contract with them on the spot to purchase their home. The other family responded to me after receiving the fourth letter from me. After a couple of broken appointments and two meetings we signed a contract to buy their home. With each home we did a "kitchen table" type closing within a couple of days of signing the contract. Both homes were purchased "subject to" the existing financing remaining in place. The earnest money given for each home was one dollar.
First Deal
We began marketing the first house by advertising it in the newspaper at market value and putting signs in the neighborhood and nearby intersections. We had a verbal agreement with the seller that they would clear all of their belonging out of the house within two weeks. The house was very messy and dirty. When the sellers failed to make any progress clearing the house we went ahead with the marketing and reduced the asking price. Within two weeks we had only received a few phone calls from mostly non-interested prospects.
At this point we reduced the asking price further and changed our signs to notify the public that owner financing was available. At that point we started to get a larger number of phone calls from truly interested prospects. Our owner financed terms and the lower than market value asking price separated us from the hundreds of realtor represented homes that needed bank financing.
With the second home, purchased a month later than the first, we immediately marketed it with owner financing. When we purchased the home we stipulated in the contract that the seller had to vacate the property in two weeks or be charged a fee for failure to do so. The seller was agreeable and cooperative and moved quickly to remove their belongings from the house. The seller of the first house was still dragging their feet and the house was still a mess.
Shortly after changing the marketing of the first house, we received an offer from a highly interested buyer. This house was truly ideal for this family and we wanted to help them get into it. They offered to buy it with bank financing and we agreed to sell it to them. There was still enough time before the foreclosure auction to close the sale with bank financing.
I cautioned the buyer that he should seek a loan other than an FHA loan since we had not held title to the property long enough for FHA to approve a new loan. In case you didn't know, FHA recently changed a rule that now requires a property to be on title at least 90 days before they will approve a new loan. So guess what the buyer did?
Right. His mortgage broker and his real estate agent steered him toward an FHA loan program. Luckily, the buyer qualified for a good FNMA program as well. So I stipulated in the contract that the buyer had to gain approval for the FHA program within 5 days or else drop the FHA program and proceed with the FNMA program. Both the broker and the agent needed education on this point, which I provided in writing, and four days later the broker notified me that the buyer would not be approved by FHA and that they were proceeding with the FNMA program.
The next obstacle we faced was the home inspection. The inspection resulted in asking for several hundred dollars worth of repairs that we agreed to do. The repairs took two weeks to complete. While repairs were ongoing we ordered a property appraisal. The appraisers in our area are backlogged eight weeks but we knew an appraiser who would perform an appraisal within a week for 150% of his normal fee. Of course we didn't have the luxury of being able to wait eight weeks so we bought the expensive appraisal.
The next obstacle was to order a preliminary title search, which showed a clear title luckily. The previous owner did not have an as-built survey so we had to order an expensive set of survey documents from the county.
Now that the obstacles to closing were nearly erased and we were close to a hard closing date, we still had a problem with the previous seller. They had only moved a few things out of the house and the house was still well cluttered. They were getting around to moving out eventually but not fast enough to be out of the house before closing the sale. Their lack of cooperation and their inability to follow through with their verbal promises made it clear why they had neglected their home and let it go into foreclosure.
Since the utilities were turned off and the seller was no longer living in the home I had the legal right to declare their belongings as abandoned property and I notified them that I would move the items out for them. My partner and I spent a day boxing and bagging up the seller's personal items, and grudgingly they picked the boxes and bags up the day before closing. Whew!
Second Deal
Now, on the other hand, events with the second property proceeded much more smoothly. We bought the home, found a buyer for it within eight days, and closed on the sale eight days later.
We decided to sell the second home on a land contract or wrap mortgage with the existing financing remaining in place. We also decided to stipulate that the home had to be refinanced within two years or it would be foreclosed back to us. We did this to protect the previous seller's interest in the underlying financing. They didn't want it hanging out there for a long period of time.
Our "owner finance" signage attracted several buyers quickly. We required a large enough down payment to "cure" the loan, that is, to pay off the existing arrearage and attorney fees. We found an eager buyer who had sufficient cash on hand and a good income, but without enough time in the area to have a high credit rating. He understood the concept of the wrap mortgage and the underlying financing and we negotiated a contract with him at Starbucks. He negotiated a lower sale price by offering a larger down payment. Basically we were able to immediately receive all of the "back end" profit that would have been paid to us in two year's time when he refinanced. We received this up front in exchange for a lower sales price. It was a fair exchange for both parties.
He agreed to buy the home "as is" and to do some repairs himself. No home inspection was needed; no appraisal was needed; no repairs had to be made; no real estate agent needed to be paid; and no survey had to be ordered. The buyer paid all of the closing costs which were far less than he would have paid if he had used a real estate agent and a mortgage broker.We used a closing agent who is very familiar with transactions of this type, which she calls "unacknowledged wrap sales." Our closing agent has become a friend and has spoken at our local Real Estate Investment Club.
In summary, each of the two deals netted about the same profit, but it is obvious which deal one would prefer to do if given a choice. If I were Robert Kiyosaki I might call one deal my rich dad's deal and the other my poor dad's deal. We learned enough to make deals of the first type go more smoothly in the future but I'll take deals of the second type every day of the week.
I hope all of your real estate investing deals proceed smoothly and quickly.
Garry Gamber is a public school teacher and entrepreneur. He writes articles about real estate, health and nutrition, and internet dating services. He is the owner of Anchorage-Homes.com and TheDatingAdvisor.com.
My business partner and I purchased both properties from families who were in preforeclosure. The leads for each property came from letters that I had mailed to families who had recently received Notices of Default. The one family responded to me within 24 hours of receiving my first letter. I met with them within two hours of receiving their phone call and signed a contract with them on the spot to purchase their home. The other family responded to me after receiving the fourth letter from me. After a couple of broken appointments and two meetings we signed a contract to buy their home. With each home we did a "kitchen table" type closing within a couple of days of signing the contract. Both homes were purchased "subject to" the existing financing remaining in place. The earnest money given for each home was one dollar.
First Deal
We began marketing the first house by advertising it in the newspaper at market value and putting signs in the neighborhood and nearby intersections. We had a verbal agreement with the seller that they would clear all of their belonging out of the house within two weeks. The house was very messy and dirty. When the sellers failed to make any progress clearing the house we went ahead with the marketing and reduced the asking price. Within two weeks we had only received a few phone calls from mostly non-interested prospects.
At this point we reduced the asking price further and changed our signs to notify the public that owner financing was available. At that point we started to get a larger number of phone calls from truly interested prospects. Our owner financed terms and the lower than market value asking price separated us from the hundreds of realtor represented homes that needed bank financing.
With the second home, purchased a month later than the first, we immediately marketed it with owner financing. When we purchased the home we stipulated in the contract that the seller had to vacate the property in two weeks or be charged a fee for failure to do so. The seller was agreeable and cooperative and moved quickly to remove their belongings from the house. The seller of the first house was still dragging their feet and the house was still a mess.
Shortly after changing the marketing of the first house, we received an offer from a highly interested buyer. This house was truly ideal for this family and we wanted to help them get into it. They offered to buy it with bank financing and we agreed to sell it to them. There was still enough time before the foreclosure auction to close the sale with bank financing.
I cautioned the buyer that he should seek a loan other than an FHA loan since we had not held title to the property long enough for FHA to approve a new loan. In case you didn't know, FHA recently changed a rule that now requires a property to be on title at least 90 days before they will approve a new loan. So guess what the buyer did?
Right. His mortgage broker and his real estate agent steered him toward an FHA loan program. Luckily, the buyer qualified for a good FNMA program as well. So I stipulated in the contract that the buyer had to gain approval for the FHA program within 5 days or else drop the FHA program and proceed with the FNMA program. Both the broker and the agent needed education on this point, which I provided in writing, and four days later the broker notified me that the buyer would not be approved by FHA and that they were proceeding with the FNMA program.
The next obstacle we faced was the home inspection. The inspection resulted in asking for several hundred dollars worth of repairs that we agreed to do. The repairs took two weeks to complete. While repairs were ongoing we ordered a property appraisal. The appraisers in our area are backlogged eight weeks but we knew an appraiser who would perform an appraisal within a week for 150% of his normal fee. Of course we didn't have the luxury of being able to wait eight weeks so we bought the expensive appraisal.
The next obstacle was to order a preliminary title search, which showed a clear title luckily. The previous owner did not have an as-built survey so we had to order an expensive set of survey documents from the county.
Now that the obstacles to closing were nearly erased and we were close to a hard closing date, we still had a problem with the previous seller. They had only moved a few things out of the house and the house was still well cluttered. They were getting around to moving out eventually but not fast enough to be out of the house before closing the sale. Their lack of cooperation and their inability to follow through with their verbal promises made it clear why they had neglected their home and let it go into foreclosure.
Since the utilities were turned off and the seller was no longer living in the home I had the legal right to declare their belongings as abandoned property and I notified them that I would move the items out for them. My partner and I spent a day boxing and bagging up the seller's personal items, and grudgingly they picked the boxes and bags up the day before closing. Whew!
Second Deal
Now, on the other hand, events with the second property proceeded much more smoothly. We bought the home, found a buyer for it within eight days, and closed on the sale eight days later.
We decided to sell the second home on a land contract or wrap mortgage with the existing financing remaining in place. We also decided to stipulate that the home had to be refinanced within two years or it would be foreclosed back to us. We did this to protect the previous seller's interest in the underlying financing. They didn't want it hanging out there for a long period of time.
Our "owner finance" signage attracted several buyers quickly. We required a large enough down payment to "cure" the loan, that is, to pay off the existing arrearage and attorney fees. We found an eager buyer who had sufficient cash on hand and a good income, but without enough time in the area to have a high credit rating. He understood the concept of the wrap mortgage and the underlying financing and we negotiated a contract with him at Starbucks. He negotiated a lower sale price by offering a larger down payment. Basically we were able to immediately receive all of the "back end" profit that would have been paid to us in two year's time when he refinanced. We received this up front in exchange for a lower sales price. It was a fair exchange for both parties.
He agreed to buy the home "as is" and to do some repairs himself. No home inspection was needed; no appraisal was needed; no repairs had to be made; no real estate agent needed to be paid; and no survey had to be ordered. The buyer paid all of the closing costs which were far less than he would have paid if he had used a real estate agent and a mortgage broker.We used a closing agent who is very familiar with transactions of this type, which she calls "unacknowledged wrap sales." Our closing agent has become a friend and has spoken at our local Real Estate Investment Club.
In summary, each of the two deals netted about the same profit, but it is obvious which deal one would prefer to do if given a choice. If I were Robert Kiyosaki I might call one deal my rich dad's deal and the other my poor dad's deal. We learned enough to make deals of the first type go more smoothly in the future but I'll take deals of the second type every day of the week.
I hope all of your real estate investing deals proceed smoothly and quickly.
Garry Gamber is a public school teacher and entrepreneur. He writes articles about real estate, health and nutrition, and internet dating services. He is the owner of Anchorage-Homes.com and TheDatingAdvisor.com.
Friday, October 2, 2009
How Do I Implement The Lease Purchase Plan?
Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run. They will determine what you do on a daily, weekly and monthly basis. The best way to do this is to picture yourself a year down the road. Close your eyes and get a mental picture of where you want to be, what you want to have, how you want to look, then open your eyes and write all that down on paper or speak into a voice recorder.
First determine how much time you will have to work on your business. If you are starting part time or spare time and think you might have 5-7 hours per week, in reality you probably will have 2.5 to 3.5 hours per week. Whenever we ask a partnering student how much time they have I always cut the time they give me in half. Why? Well because things come up, such as children, obligations, illnesses, their other job, etc. So rather than kid yourself and set yourself up for failure before you even start, be realistic with the amount of time you will have.
Once you have determined how much time you have, make up a 12 month plan. For example if you only have 3 hours per week to work, that means in a 4 week month you have 12 hours. So realistically, the first month is going to be getting yourself set up. Getting your identity package done, your template letters done, your database set, your telephone script done, your research (networking, FSBO sites). You want to start collecting newspapers (remember 5 weeks and older). Your second month would be going through the newspapers, and going on line to those FSBO sites and collecting numbers. During the end of the second month (6 weeks after you have started) you should be able to start calling on property. Depending on the hours you are doing your calls will determine how many people you get to speak with as opposed to leaving a message for them. Months three and four you will continue your calls, set up a networking schedule and do deals with one particular strategy. After you feel comfortable with that strategy you can move on to the next one during months five and six. Months seven and eight should have you starting the next strategy, and the same goes for the remaining months (nine, ten, eleven and twelve). During months eleven and twelve you should do some evaluating of your goals for the year, and start thinking of where you want to go in year two. Be sure to write articles up for each deal and make note of things you did wrong (yes, you will make mistakes) and how you fixed them for subsequent deals.
Once you have your monthly plan set up, break that down in weekly goals, and then set up your daily goals to meet your weekly goals. If you don't meet some goals, don't beat yourself up. Look at the reasons why you didn't meet your goals for that particular day, week or month. Did other things get in the way (family, work, health issues) or did you just slack off. Sometimes you need to take a breather and come back with some fresh energy. So if you need a break once in a while take one.
However, you need to realize if you want to succeed you need to make a commitment to implementing the plan you set up. If this means missing some television shows, shopping spree, visiting with friends or some sleep; then that is what you have to do.
So start implementing the plan today!
Copyright DeFiore Enterprises 2003
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
First determine how much time you will have to work on your business. If you are starting part time or spare time and think you might have 5-7 hours per week, in reality you probably will have 2.5 to 3.5 hours per week. Whenever we ask a partnering student how much time they have I always cut the time they give me in half. Why? Well because things come up, such as children, obligations, illnesses, their other job, etc. So rather than kid yourself and set yourself up for failure before you even start, be realistic with the amount of time you will have.
Once you have determined how much time you have, make up a 12 month plan. For example if you only have 3 hours per week to work, that means in a 4 week month you have 12 hours. So realistically, the first month is going to be getting yourself set up. Getting your identity package done, your template letters done, your database set, your telephone script done, your research (networking, FSBO sites). You want to start collecting newspapers (remember 5 weeks and older). Your second month would be going through the newspapers, and going on line to those FSBO sites and collecting numbers. During the end of the second month (6 weeks after you have started) you should be able to start calling on property. Depending on the hours you are doing your calls will determine how many people you get to speak with as opposed to leaving a message for them. Months three and four you will continue your calls, set up a networking schedule and do deals with one particular strategy. After you feel comfortable with that strategy you can move on to the next one during months five and six. Months seven and eight should have you starting the next strategy, and the same goes for the remaining months (nine, ten, eleven and twelve). During months eleven and twelve you should do some evaluating of your goals for the year, and start thinking of where you want to go in year two. Be sure to write articles up for each deal and make note of things you did wrong (yes, you will make mistakes) and how you fixed them for subsequent deals.
Once you have your monthly plan set up, break that down in weekly goals, and then set up your daily goals to meet your weekly goals. If you don't meet some goals, don't beat yourself up. Look at the reasons why you didn't meet your goals for that particular day, week or month. Did other things get in the way (family, work, health issues) or did you just slack off. Sometimes you need to take a breather and come back with some fresh energy. So if you need a break once in a while take one.
However, you need to realize if you want to succeed you need to make a commitment to implementing the plan you set up. If this means missing some television shows, shopping spree, visiting with friends or some sleep; then that is what you have to do.
So start implementing the plan today!
Copyright DeFiore Enterprises 2003
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Monday, September 28, 2009
How To Give Yourself A $20,000/Year Raise Without Asking Your Boss
Why without asking your boss?
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Two reasons, one, he or she will most likely say no; and second, he or she will probably have you committed for asking.
So what do you do. Give the raise to yourself.
Impossible you say. Chuck and Sue are crazy. Not at all. Here's how.
You know we love the Creative Real Estate niche of Lease Purchasing and you know we believe it to be the perfect home-based business.
But, did you know you can use these same methods in your spare time to give yourself that big raise.
Ask yourself, "What would I be willing to do to earn an extra $20,000 in a year".
The answer may surprise you. And no, you don't have to become a hit man (or woman) to earn this.
You just have to be willing to take a look at Lease Purchasing.
Some background before you think we've completely lost it.
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That's about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Gee, you say, that sounds like a lot of work. Not really. Consider making those calls over a 3 month period. That's the equivalent of a call per day. Why a 3 month period. Because you're only looking to do one deal a quarter.
Next question. How does this translate into a $20,000/yr. raise? Simple.
On a typical single family house, we look for a $5000 assignment fee on average. Well, let's do the math. 4 x $5,000 = $20,000.
Yup, a $20,000 raise on 4 deals per year.
Is this realistic? Absolutely.
In fact, we may be conservative on that raise for you. You may well decide to do five or six or more deals in a year.
All it takes is knowing how to structure your deals, having the proper contracts and a willingness to want to give yourself a raise. You can find all this information at our website at: www.homebusinesssolutions.com/products/products.htm
You're right. Chuck and Sue are crazy. Crazy like a fox.
Copyright 2000, DeFiore Enterprises
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Sunday, September 27, 2009
Horses In My Back Yard
Horses In My Back Yard
by Jody Hudson, with Extensive Collaboration From Chris Hudson
HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses. Far too often, they have knowledge based on little more than an idyllic dream and that dream based for the most part on romantic novels and movies. This article will give you some basic information which may save you and a horse some bad or even terrible experiences.
HOW MANY ACRES?: If you do want horses; a good rule of thumb in good pasture areas is 3 to 5 acres of pasture per horse, and ideally another acre or two of paddock per horse. The wise Equestrian will thus plan about 6 to 10 acres per horse they want to keep in the purchase of land. The paddocks are smaller fenced pasture areas close to the barn used for training, saddling up your horse or getting a new horse acclimated to his new home.
The risk of injury to animals increases where horses are overcrowded, and competition for food, water and space may lead to fighting. You must provide an adequate number of paddocks or yards to permit incompatible animals to be segregated. The number of horses and their grouping in each paddock or yard must be appropriate for their compatibility and for the ground conditions, taking into account the climatic conditions pertaining at the time.
You also need room for the house, barn, hay storage, tack building and a loafing shed for them to get under when the weather is not quite acceptable to them. In any yard or shelter, each horse must have adequate room to lie down, stand up and turn around. There should be a clean, dry area for the horse to lie down, the surface of which protects the horse from abrasions and capped elbows and hocks. Paddocks which expose horses to items of machinery, equipment or rubbish (especially wire) likely to cause serious injury must not be used.
FENCING: There are numerous types of fencing that are designed for horses. Board fences are deadly dangerous if not constantly maintained. The horses can break a board and end up impaled on it. Wire, especially barbed wire can entangle your horse's leg or neck and seriously injure him or worse. There are several kinds of fences made for horse pasture. Barbed wire and narrow gauge (2.5 mm) high-tensile steel wire, because of their cutting, non-stretching and nonbreaking properties, can cause severe injury to horses. They should be avoided when constructing fences for horses, as should internal fence-stays or posts, which are a common cause of injury.
Fences should be readily visible to horses and properly maintained. The ideal fence for premises designed mainly for horses is the synthetic, strong, flexible, post-and-rail type, with rails treated or painted with nontoxic preparations. A popular alternative, which also provides a good visual barrier, is a single top rail attached to a conventional post-and-wire fence. I like the Australian Sheep Wire fence as it has a grid that is very small at the bottom and larger at the top. The small grid size at the bottom prevents the horse from stepping through the fence and getting tangled. I also like a charged electric wire just above the highly visible top rail to "convince" the horse to not lean over that top rail to get grass on the other side. Such leaning by such a strong and heavy animal is a major cause of fence breakage. There must be no sharp objects projecting inwards.
Your large animal Veterinarian or Horse feed and tack store can help you find the right fencing and an installer that knows what he's doing. Ideally your pasture will have fence corners rounded on a large radius to prevent your horse from injury if he is cornered by another horse or is just running with exuberance and misjudges the distance to the corner. I have occasionally seen a horse on a tether chain or rope, as some people do a dog. Tethering is a practice which has a high risk of injury to horses. It is not recommended and should be used only when other forms of grazing or containment are unavailable and when close supervision of the horse can be maintained. Only placid horses and those adequately trained to accept the practice should be tethered.
FORGET WHAT YOU LEARNED FROM NOVELS OR HOLLYWOOD: Contrary to all the horse stories and films, your horse will not respond to you the same way a dog or cat will. He will respond and perform best when his owner is consistent and has a routine. Forget all those stories about Flicka and Black Beauty; it only happens in the movies.
Horses do have personality but you must remember that they are very big and strong and you cannot make them do anything unless you have convinced them and then they choose to do it. Proper ground manners are a must and the rider must know how to ride. Take some lessons if you are a first time owner. Horses do not like you to hang onto the reins for balance. Learn how to balance yourself in the saddle and to gently guide the horse with the reins. There is no faster way to make a horse "sour" than to pull on his mouth roughly. Learn the horse language; the way to communicate to your horse is through the balance of your body, your seated position, the position of your feet and legs and lastly the position of your hands.
STABLING: He does not enjoy being locked in a stall every night. He would much prefer the open fields and the starry nights! A three sided shed (preferably with the open side to the southwest) will due just fine. Horses do need protection from the sun and rain. Horse blankets/rugs make us feel better; nature however, has equipped him just dandy with a real fur coat. Those horses that are unlucky enough to be put in a stall every night could probably use a rug unless the barn is REALLY COZY. But, when it is 30 degrees or lower and it is blowing and wet, he does appreciate a stall to eat his grain and hay. And it will save you a lot of cleanup in your paddocks.
PASTURE: Plant a pasture with a mixture of proper grass seeds. Check with the local Agricultural Substation or horse feed supply store for the seed mix. Build several paddocks to keep your horses in for short times, so that you can rotate the pastures and periodically give each one a rest to replenish the height of it's grasses.
Horses are poor utilizers of pasture, compared to cattle or sheep. Most horse pastures contain a large proportion of weeds and "roughs" where horses are the only grazers. Horses will not eat pasture that is contaminated with horse dung. This usually causes the contaminated area to become larger and the grazing area smaller. The pasture growing round the dung patches is usually lush and looks to be the best feed, while the patches in between will look overgrazed.
Where possible, horses should be grazed in conjunction with cattle or sheep. In addition to helping calm the horses; the other species will clean up the "roughs" while also reducing the worm contamination on pasture. Although harrowing can also be useful to spread the dung around, in moist conditions and when the grass is long it may spread worm eggs, making a larger area of the paddock infected. Where no cattle or other grazers are available, it is essential to remove the manure or spread it around regularly during dry periods, when the sun and ultraviolet rays will tend to destroy eggs and larvae.
Your horses will leave some big manure piles around the pasture and especially in the corners. Spread the horse manure out on the pasture with a drag harrow and rake out the pasture corners to break it up in smaller pieces; it helps to keep the fly larvae in the manure from hatching out and bothering your horses.
You will need a manure spreader to spread the manure you shovel out of your loafing sheds and stalls. Your horses will eat a lot of the grass in your pasture -- but you will still have to mow the pastures periodically and you will need to use a weed-eater under and along all the fences. You will need to keep a check out for any plants of the nightshade family as they are poisonous to your steeds.
Grazing animals deplete soil nutrients progressively, which in turn leads to poor pasture quality and growth rate. This should be regularly monitored by soil and pasture analysis. Pasture should be top dressed with fertilizers to replace identified nutrient deficiencies. Check with your State Agricultural Agent (each state has an Agricultural College and Agents attached) to learn to identify soil nutrient needs and to show you how to destroy noxious plants properly. Make certain that there is always plenty of clean fresh water in the pasture and that the water trough is kept dutifully clean!
VACCINATIONS: Your horses require annual booster shots for Rabies, Tetanus, Flu Rhino and Encephalitis, and Potomac Horse Fever. Check with your local Large Animal Veterinarian and maintain a proper schedule of immunizations and regular checkups. Horses also require quarterly worming to keep the intestinal parasites below the danger level.
FARRIER SERVICES: Horses in the wild got along just fine without a Farrier. They ran and romped over vast expanses, were chased by predators and often ran long distances as a herd. But now that they are kept and ridden mostly on soft sandy soil or grasslands -- the hooves need trimming every six to eight weeks. AND, yes some horses do need horseshoes of steel, rubber or some other material. You will be able to tell if your horse need shoeing; if he does he will walk very "tender-footed" and may have cracks and breakage in his hooves. The way he walks, stands and carries himself in general will tip you off to his Farrier needs.
INTENTION: Your intention is of great importance! Horses can feel a fly on their back and they can feel your intent; when you really mean business. They learn in a hurry who they have to respect and who they can play around with -- DON'T be fooled! Set yourself up to win his respect and keep it. Don't ask him to do anything that you suspect will be an argument unless you have the time to make certain that he does it. Be firm. Being firm does not mean beating your horse; it does mean that sometimes you might have to put a chain a little too snugly across his nose to lead him if he walks too fast and gets ahead of you at lead.
TRUST: It is so important that your horse trust you. Please don't abuse him by hitting or kicking him. Trust is necessary for him when you want him to cross a ditch or a fence or take him to water or take him to ride with other horses. Trust is built by day to day consistent care and treatment of your horse; and by not putting him into situations that hurt him or scare him badly.
EQUINE DENTIST: Horses need dentists too! At least once a year, some horses require to have the equine dentist "float" his teeth. This removes sharp edges so that he can chew his food properly and be comfortable with the bit.
GROOMING: Horses love to be brushed and bathed. Spend lots of quality time with your horse when you first get him and each time before and after you ride him with gentle loving hands and lots of brush grooming. Pick the stones and dirt from his feet before and after a ride to keep him from getting bruised feet. Check him for ticks after any ride in the woods or tall grass -- especially in warm weather. Keep all your tack clean and the leather saddle-soaped and lightly oiled. Wash your saddle blanket after each use and rinse his bit well too. He doesn't like a hard, dirty blanket on his back or a crusty bit in his mouth. Keep your brushes clean too, rinse, wash and pull the hair out of them periodically.
NUTRITION: Nutrition is a powerful factor in the life of a horse, just as it is our own. Often a problem horse can just be suffering from some nutritional deficiency. Often a horse that is "cribbing" that is chewing on his stall or on the fence has a nutritional deficiency. This should be handled quickly as the swallowed wood splinters have obvious danger to your horse. Horses need vitamins, roughage of course, minerals, protein, oils, carbohydrates, enzymes and trace elements in their diets to be at their best in health, behavior and attitude... and sometimes even if they are getting the correct food they may not be digesting it to get the proper use of the nutrients... just like us.
Horse Hair Analysis is a very useful tool to find the realistic needs of your horse. The hair is a long term record of the horse's nutritional health and the analysis will tell the most accurate story as to what your particular horse needs... or what he is getting too much of -- especially if he is ingesting some sort of toxic substance.
TRAILERS and TRAILERING: For most people learning to trailer your horse is mandatory. If you are fortunate to purchase a place far out in the rural un-populated areas, especially if you purchase property on a long dirt road or network of such roads -- you may be able to do a lot of riding without trailering. You will still likely want to have a trailer eventually, so that you can take your horse to a trainer, pick up another horse, or take your horse to join a friend for a ride.
There are several types of trailers; they are of many sizes from small to huge. Some of them even have owners quarters or a groomsman's room adjacent to the horse section. There are the horse carrying motor home style vehicles too. For highway speeds and to go any distance, it is best to use a large towing pickup truck specialized for such use. The best are the dual tired big pickup trucks called Duelies. You then get a big sturdy support hitch mounted in the pickup bed and the trailer has a long hitch stalk that projects into the truck bed. This type, called a goose neck trailer with a 5th wheel hitch, will give you excellent stability and a shortened turn radius. It is also virtually impossible to have a trailer disconnect from the truck -- which is a worry with pull-behind trailers.
Before you take your horse for a first trailer ride; you should ride in the back of the trailer, while someone else drives the truck, so that you can experience the cornering and braking calamities that the horse will experience. Some folks put leg wraps on their horses when trailering to help protect the horse more from accidental braking, cornering, or bumping. After you have ridden in the moving trailer yourself, take a few practice runs with you and the horse -- so you can see what the horse is experiencing as a driver drives, turns and brakes. And it would be a good idea to next have someone else ride with your horse while you drive. One of my friends had a good technique; she put a long stem wine glass on the dash of her truck and filled it with water. She then learned to drive without spilling the water or turning over the glass. Personally I think it is a great technique to practice.
You also need to keep the trailer clean, especially keeping it free of hay dust and dirt. Remember when the trailer is underway and if the vent windows are open, whatever hay and dirt there is inside will start whirling around in the trailer. Keep everything well tied down inside too; falling, and swinging articles in the trailer can spook your horse and cause him to jump and hurt himself.
Service the trailer at least once a year. Check the brakes, tires, tire pressure and all hitch welds and bolts carefully. Make certain that the floor is solid. Practice driving, backing and turning. Practice using the mirrors. Mirror use is difficult to learn and of utmost importance. With proper mirror use however, you can easily back your trailer into a space only a few inches larger than it is.
WHO IS THE BOSS?: If you don't watch out -- your horse will TRAIN YOU, for instance... I knew this lady who trailered her horse to various lessons and rides... but he knew he did not have to get into the trailer until the third attempt each time. First she would lead him to the trailer, he would stop and she would pet and coo to him. The second time she would coax him a little more with carrots and baby talk. When that, of course, didn't work either (he liked that sweet talk and especially the carrots) she would try the third method. By now she was a little tired and frustrated with him, she wanted to go home or get on with the lessons; so she spoke firmly, put the chain across his nose, tightened it a bit, and... he'd get right on. But he always knew that he didn't have to get on until the third technique -- besides he would miss his carrots and sweet talk if he got on the first time!
Here's another one. Some horses raise their head and clamp their teeth and will not accept the bit. I have seen people strike the horse about the face or swing the bridle and hit him -- this only teaches him that the bridle is a mean, scary piece of equipment and that he'd better raise his head up out of your reach for his own protection. The solution to bit shyness takes a while; it will take a little patience, some sweet talk and some sweet syrup on your fingers. Play around with his mouth with your fingers and let him wear the bit awhile when he is in his stall to eat and drink. Put it on him sometimes while you are grooming him too. Make sure that the bit is adjusted correctly for tightness in his mouth and that it is the right size and style. And especially be certain that when you ride him that you are not always holding tension on the reins, using them when you should be only giving body language directions, sawing them back and forth from left to right or in any way being rough on his mouth.
MOUNTING YOUR HORSE: Training your horse to stand still as a statue while you mount is a MUST! If your horse likes to walk about while you try to mount up -- have someone hold him while you get up and properly placed in the saddle. Once you are mounted -- sit well in the saddle with an erect posture, take a deep and cleansing breath and sink into your saddle with poise and assurance before you start off with him. Take time frequently with just you and him; when no one is around, mount him inside the pasture or paddock fence and just stand there in the saddle with him for several minutes. Then after quite some time, ask him to walk. Of course you will need to spend the time needed to train him to stand quiet and still while you are on him. And you must each learn the particulars of how to open the pasture gate while you are in the saddle.
RETURNING FROM A RIDE: There is always the temptation on your horses part, to run back to the barn at the end of a ride. He will be tempted to trot instead of walk; canter instead of trot; or run instead of canter. Be careful or you will be allowing him to learn or to think you are teaching him to run home. If you persist in this permissiveness you may eventually have a runaway horse each time his head turns toward home.
When you do return home; come down to a walk well away from the barn and let him cool down well as you near the barn. If you are cantering in and he wants to go faster, break down the gait to a trot and if needed down to a walk even if a long way from the barn. If he won't walk calmly but wants to jig and go sideways or tries breaking into a faster gait -- you need to spend some time in the paddocks and school him to walk and trot when you tell him too. If you still have trouble; get help from an outside equestrian or a trainer.
BUYING YOUR HORSE: When buying a horse be aware that what you see during the purchasing meeting with the horse -- is what you will have when you take him home. He is most likely on his best behavior at the barns and paddocks where he lives, so when you remove him to take him to your place you are likely to get worse behavior not better. Unless you are a very experience rider with some good horse sense, you should purchase an older, settled horse for a first mount and then as you improve get a younger more spirited one.
Look at the teeth to detect age and condition of the horse. Horse newspapers have lots of ads and some advice. There are auctions for horses too; once you find out about them you can get on the mailing list and visit a few before you buy. Classified ads are a very good sources of horses for sale.
When you go to look at a horse to purchase; take along an honest and reputable person to help you with that purchase. A good saddle horse should cost you from $2,500 to $5,000. A trained horse can cost much more but may well be worth the cost. Specialty horses of course -- Arabians and Thoroughbreds for instance can cost more than a nice home or in some cases more than a nice shopping center. You don't always get what you pay for... but you can count on paying for what you get.
Watch for conformation (shape and bodily proportion) in the horse; which can be learned from books and then there is Attitude -- this is the same as for humans. If the horse has a bad attitude it's hardly worth owning at any cost. The horse should be checked perhaps even x-rayed by a Veterinarian. This is called Vetting a horse; done in a pre-purchase exam. This usually costs about $300 to $500. A lot of lameness can't be seen with the eye and will only show up with strenuous training, or during work or competition -- just when you can't afford it. ===
Happy Trails and best wishes to a lot of good horsin' around for all you readers who want horses. Horses can bring out the best and the worst of a person and give you endless hours of pleasure, exercise and frustration. But most horse owners and lovers wouldn't have it any other way.
TALLY HO!
Copyright 2004 by Jody Hudson
www.Kate-Jody.com and www.TheRuralSpecialist.com
numerous other articles at http://www.kate-jody.com/essays/index.html
Email MrJodyHudson@earthlink.net
Jody Hudson, Realtor specializing in horse properties and being around horse farms, since 1972 and much more. Many years of being around an being in business to help people with horses.
by Jody Hudson, with Extensive Collaboration From Chris Hudson
HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses. Far too often, they have knowledge based on little more than an idyllic dream and that dream based for the most part on romantic novels and movies. This article will give you some basic information which may save you and a horse some bad or even terrible experiences.
HOW MANY ACRES?: If you do want horses; a good rule of thumb in good pasture areas is 3 to 5 acres of pasture per horse, and ideally another acre or two of paddock per horse. The wise Equestrian will thus plan about 6 to 10 acres per horse they want to keep in the purchase of land. The paddocks are smaller fenced pasture areas close to the barn used for training, saddling up your horse or getting a new horse acclimated to his new home.
The risk of injury to animals increases where horses are overcrowded, and competition for food, water and space may lead to fighting. You must provide an adequate number of paddocks or yards to permit incompatible animals to be segregated. The number of horses and their grouping in each paddock or yard must be appropriate for their compatibility and for the ground conditions, taking into account the climatic conditions pertaining at the time.
You also need room for the house, barn, hay storage, tack building and a loafing shed for them to get under when the weather is not quite acceptable to them. In any yard or shelter, each horse must have adequate room to lie down, stand up and turn around. There should be a clean, dry area for the horse to lie down, the surface of which protects the horse from abrasions and capped elbows and hocks. Paddocks which expose horses to items of machinery, equipment or rubbish (especially wire) likely to cause serious injury must not be used.
FENCING: There are numerous types of fencing that are designed for horses. Board fences are deadly dangerous if not constantly maintained. The horses can break a board and end up impaled on it. Wire, especially barbed wire can entangle your horse's leg or neck and seriously injure him or worse. There are several kinds of fences made for horse pasture. Barbed wire and narrow gauge (2.5 mm) high-tensile steel wire, because of their cutting, non-stretching and nonbreaking properties, can cause severe injury to horses. They should be avoided when constructing fences for horses, as should internal fence-stays or posts, which are a common cause of injury.
Fences should be readily visible to horses and properly maintained. The ideal fence for premises designed mainly for horses is the synthetic, strong, flexible, post-and-rail type, with rails treated or painted with nontoxic preparations. A popular alternative, which also provides a good visual barrier, is a single top rail attached to a conventional post-and-wire fence. I like the Australian Sheep Wire fence as it has a grid that is very small at the bottom and larger at the top. The small grid size at the bottom prevents the horse from stepping through the fence and getting tangled. I also like a charged electric wire just above the highly visible top rail to "convince" the horse to not lean over that top rail to get grass on the other side. Such leaning by such a strong and heavy animal is a major cause of fence breakage. There must be no sharp objects projecting inwards.
Your large animal Veterinarian or Horse feed and tack store can help you find the right fencing and an installer that knows what he's doing. Ideally your pasture will have fence corners rounded on a large radius to prevent your horse from injury if he is cornered by another horse or is just running with exuberance and misjudges the distance to the corner. I have occasionally seen a horse on a tether chain or rope, as some people do a dog. Tethering is a practice which has a high risk of injury to horses. It is not recommended and should be used only when other forms of grazing or containment are unavailable and when close supervision of the horse can be maintained. Only placid horses and those adequately trained to accept the practice should be tethered.
FORGET WHAT YOU LEARNED FROM NOVELS OR HOLLYWOOD: Contrary to all the horse stories and films, your horse will not respond to you the same way a dog or cat will. He will respond and perform best when his owner is consistent and has a routine. Forget all those stories about Flicka and Black Beauty; it only happens in the movies.
Horses do have personality but you must remember that they are very big and strong and you cannot make them do anything unless you have convinced them and then they choose to do it. Proper ground manners are a must and the rider must know how to ride. Take some lessons if you are a first time owner. Horses do not like you to hang onto the reins for balance. Learn how to balance yourself in the saddle and to gently guide the horse with the reins. There is no faster way to make a horse "sour" than to pull on his mouth roughly. Learn the horse language; the way to communicate to your horse is through the balance of your body, your seated position, the position of your feet and legs and lastly the position of your hands.
STABLING: He does not enjoy being locked in a stall every night. He would much prefer the open fields and the starry nights! A three sided shed (preferably with the open side to the southwest) will due just fine. Horses do need protection from the sun and rain. Horse blankets/rugs make us feel better; nature however, has equipped him just dandy with a real fur coat. Those horses that are unlucky enough to be put in a stall every night could probably use a rug unless the barn is REALLY COZY. But, when it is 30 degrees or lower and it is blowing and wet, he does appreciate a stall to eat his grain and hay. And it will save you a lot of cleanup in your paddocks.
PASTURE: Plant a pasture with a mixture of proper grass seeds. Check with the local Agricultural Substation or horse feed supply store for the seed mix. Build several paddocks to keep your horses in for short times, so that you can rotate the pastures and periodically give each one a rest to replenish the height of it's grasses.
Horses are poor utilizers of pasture, compared to cattle or sheep. Most horse pastures contain a large proportion of weeds and "roughs" where horses are the only grazers. Horses will not eat pasture that is contaminated with horse dung. This usually causes the contaminated area to become larger and the grazing area smaller. The pasture growing round the dung patches is usually lush and looks to be the best feed, while the patches in between will look overgrazed.
Where possible, horses should be grazed in conjunction with cattle or sheep. In addition to helping calm the horses; the other species will clean up the "roughs" while also reducing the worm contamination on pasture. Although harrowing can also be useful to spread the dung around, in moist conditions and when the grass is long it may spread worm eggs, making a larger area of the paddock infected. Where no cattle or other grazers are available, it is essential to remove the manure or spread it around regularly during dry periods, when the sun and ultraviolet rays will tend to destroy eggs and larvae.
Your horses will leave some big manure piles around the pasture and especially in the corners. Spread the horse manure out on the pasture with a drag harrow and rake out the pasture corners to break it up in smaller pieces; it helps to keep the fly larvae in the manure from hatching out and bothering your horses.
You will need a manure spreader to spread the manure you shovel out of your loafing sheds and stalls. Your horses will eat a lot of the grass in your pasture -- but you will still have to mow the pastures periodically and you will need to use a weed-eater under and along all the fences. You will need to keep a check out for any plants of the nightshade family as they are poisonous to your steeds.
Grazing animals deplete soil nutrients progressively, which in turn leads to poor pasture quality and growth rate. This should be regularly monitored by soil and pasture analysis. Pasture should be top dressed with fertilizers to replace identified nutrient deficiencies. Check with your State Agricultural Agent (each state has an Agricultural College and Agents attached) to learn to identify soil nutrient needs and to show you how to destroy noxious plants properly. Make certain that there is always plenty of clean fresh water in the pasture and that the water trough is kept dutifully clean!
VACCINATIONS: Your horses require annual booster shots for Rabies, Tetanus, Flu Rhino and Encephalitis, and Potomac Horse Fever. Check with your local Large Animal Veterinarian and maintain a proper schedule of immunizations and regular checkups. Horses also require quarterly worming to keep the intestinal parasites below the danger level.
FARRIER SERVICES: Horses in the wild got along just fine without a Farrier. They ran and romped over vast expanses, were chased by predators and often ran long distances as a herd. But now that they are kept and ridden mostly on soft sandy soil or grasslands -- the hooves need trimming every six to eight weeks. AND, yes some horses do need horseshoes of steel, rubber or some other material. You will be able to tell if your horse need shoeing; if he does he will walk very "tender-footed" and may have cracks and breakage in his hooves. The way he walks, stands and carries himself in general will tip you off to his Farrier needs.
INTENTION: Your intention is of great importance! Horses can feel a fly on their back and they can feel your intent; when you really mean business. They learn in a hurry who they have to respect and who they can play around with -- DON'T be fooled! Set yourself up to win his respect and keep it. Don't ask him to do anything that you suspect will be an argument unless you have the time to make certain that he does it. Be firm. Being firm does not mean beating your horse; it does mean that sometimes you might have to put a chain a little too snugly across his nose to lead him if he walks too fast and gets ahead of you at lead.
TRUST: It is so important that your horse trust you. Please don't abuse him by hitting or kicking him. Trust is necessary for him when you want him to cross a ditch or a fence or take him to water or take him to ride with other horses. Trust is built by day to day consistent care and treatment of your horse; and by not putting him into situations that hurt him or scare him badly.
EQUINE DENTIST: Horses need dentists too! At least once a year, some horses require to have the equine dentist "float" his teeth. This removes sharp edges so that he can chew his food properly and be comfortable with the bit.
GROOMING: Horses love to be brushed and bathed. Spend lots of quality time with your horse when you first get him and each time before and after you ride him with gentle loving hands and lots of brush grooming. Pick the stones and dirt from his feet before and after a ride to keep him from getting bruised feet. Check him for ticks after any ride in the woods or tall grass -- especially in warm weather. Keep all your tack clean and the leather saddle-soaped and lightly oiled. Wash your saddle blanket after each use and rinse his bit well too. He doesn't like a hard, dirty blanket on his back or a crusty bit in his mouth. Keep your brushes clean too, rinse, wash and pull the hair out of them periodically.
NUTRITION: Nutrition is a powerful factor in the life of a horse, just as it is our own. Often a problem horse can just be suffering from some nutritional deficiency. Often a horse that is "cribbing" that is chewing on his stall or on the fence has a nutritional deficiency. This should be handled quickly as the swallowed wood splinters have obvious danger to your horse. Horses need vitamins, roughage of course, minerals, protein, oils, carbohydrates, enzymes and trace elements in their diets to be at their best in health, behavior and attitude... and sometimes even if they are getting the correct food they may not be digesting it to get the proper use of the nutrients... just like us.
Horse Hair Analysis is a very useful tool to find the realistic needs of your horse. The hair is a long term record of the horse's nutritional health and the analysis will tell the most accurate story as to what your particular horse needs... or what he is getting too much of -- especially if he is ingesting some sort of toxic substance.
TRAILERS and TRAILERING: For most people learning to trailer your horse is mandatory. If you are fortunate to purchase a place far out in the rural un-populated areas, especially if you purchase property on a long dirt road or network of such roads -- you may be able to do a lot of riding without trailering. You will still likely want to have a trailer eventually, so that you can take your horse to a trainer, pick up another horse, or take your horse to join a friend for a ride.
There are several types of trailers; they are of many sizes from small to huge. Some of them even have owners quarters or a groomsman's room adjacent to the horse section. There are the horse carrying motor home style vehicles too. For highway speeds and to go any distance, it is best to use a large towing pickup truck specialized for such use. The best are the dual tired big pickup trucks called Duelies. You then get a big sturdy support hitch mounted in the pickup bed and the trailer has a long hitch stalk that projects into the truck bed. This type, called a goose neck trailer with a 5th wheel hitch, will give you excellent stability and a shortened turn radius. It is also virtually impossible to have a trailer disconnect from the truck -- which is a worry with pull-behind trailers.
Before you take your horse for a first trailer ride; you should ride in the back of the trailer, while someone else drives the truck, so that you can experience the cornering and braking calamities that the horse will experience. Some folks put leg wraps on their horses when trailering to help protect the horse more from accidental braking, cornering, or bumping. After you have ridden in the moving trailer yourself, take a few practice runs with you and the horse -- so you can see what the horse is experiencing as a driver drives, turns and brakes. And it would be a good idea to next have someone else ride with your horse while you drive. One of my friends had a good technique; she put a long stem wine glass on the dash of her truck and filled it with water. She then learned to drive without spilling the water or turning over the glass. Personally I think it is a great technique to practice.
You also need to keep the trailer clean, especially keeping it free of hay dust and dirt. Remember when the trailer is underway and if the vent windows are open, whatever hay and dirt there is inside will start whirling around in the trailer. Keep everything well tied down inside too; falling, and swinging articles in the trailer can spook your horse and cause him to jump and hurt himself.
Service the trailer at least once a year. Check the brakes, tires, tire pressure and all hitch welds and bolts carefully. Make certain that the floor is solid. Practice driving, backing and turning. Practice using the mirrors. Mirror use is difficult to learn and of utmost importance. With proper mirror use however, you can easily back your trailer into a space only a few inches larger than it is.
WHO IS THE BOSS?: If you don't watch out -- your horse will TRAIN YOU, for instance... I knew this lady who trailered her horse to various lessons and rides... but he knew he did not have to get into the trailer until the third attempt each time. First she would lead him to the trailer, he would stop and she would pet and coo to him. The second time she would coax him a little more with carrots and baby talk. When that, of course, didn't work either (he liked that sweet talk and especially the carrots) she would try the third method. By now she was a little tired and frustrated with him, she wanted to go home or get on with the lessons; so she spoke firmly, put the chain across his nose, tightened it a bit, and... he'd get right on. But he always knew that he didn't have to get on until the third technique -- besides he would miss his carrots and sweet talk if he got on the first time!
Here's another one. Some horses raise their head and clamp their teeth and will not accept the bit. I have seen people strike the horse about the face or swing the bridle and hit him -- this only teaches him that the bridle is a mean, scary piece of equipment and that he'd better raise his head up out of your reach for his own protection. The solution to bit shyness takes a while; it will take a little patience, some sweet talk and some sweet syrup on your fingers. Play around with his mouth with your fingers and let him wear the bit awhile when he is in his stall to eat and drink. Put it on him sometimes while you are grooming him too. Make sure that the bit is adjusted correctly for tightness in his mouth and that it is the right size and style. And especially be certain that when you ride him that you are not always holding tension on the reins, using them when you should be only giving body language directions, sawing them back and forth from left to right or in any way being rough on his mouth.
MOUNTING YOUR HORSE: Training your horse to stand still as a statue while you mount is a MUST! If your horse likes to walk about while you try to mount up -- have someone hold him while you get up and properly placed in the saddle. Once you are mounted -- sit well in the saddle with an erect posture, take a deep and cleansing breath and sink into your saddle with poise and assurance before you start off with him. Take time frequently with just you and him; when no one is around, mount him inside the pasture or paddock fence and just stand there in the saddle with him for several minutes. Then after quite some time, ask him to walk. Of course you will need to spend the time needed to train him to stand quiet and still while you are on him. And you must each learn the particulars of how to open the pasture gate while you are in the saddle.
RETURNING FROM A RIDE: There is always the temptation on your horses part, to run back to the barn at the end of a ride. He will be tempted to trot instead of walk; canter instead of trot; or run instead of canter. Be careful or you will be allowing him to learn or to think you are teaching him to run home. If you persist in this permissiveness you may eventually have a runaway horse each time his head turns toward home.
When you do return home; come down to a walk well away from the barn and let him cool down well as you near the barn. If you are cantering in and he wants to go faster, break down the gait to a trot and if needed down to a walk even if a long way from the barn. If he won't walk calmly but wants to jig and go sideways or tries breaking into a faster gait -- you need to spend some time in the paddocks and school him to walk and trot when you tell him too. If you still have trouble; get help from an outside equestrian or a trainer.
BUYING YOUR HORSE: When buying a horse be aware that what you see during the purchasing meeting with the horse -- is what you will have when you take him home. He is most likely on his best behavior at the barns and paddocks where he lives, so when you remove him to take him to your place you are likely to get worse behavior not better. Unless you are a very experience rider with some good horse sense, you should purchase an older, settled horse for a first mount and then as you improve get a younger more spirited one.
Look at the teeth to detect age and condition of the horse. Horse newspapers have lots of ads and some advice. There are auctions for horses too; once you find out about them you can get on the mailing list and visit a few before you buy. Classified ads are a very good sources of horses for sale.
When you go to look at a horse to purchase; take along an honest and reputable person to help you with that purchase. A good saddle horse should cost you from $2,500 to $5,000. A trained horse can cost much more but may well be worth the cost. Specialty horses of course -- Arabians and Thoroughbreds for instance can cost more than a nice home or in some cases more than a nice shopping center. You don't always get what you pay for... but you can count on paying for what you get.
Watch for conformation (shape and bodily proportion) in the horse; which can be learned from books and then there is Attitude -- this is the same as for humans. If the horse has a bad attitude it's hardly worth owning at any cost. The horse should be checked perhaps even x-rayed by a Veterinarian. This is called Vetting a horse; done in a pre-purchase exam. This usually costs about $300 to $500. A lot of lameness can't be seen with the eye and will only show up with strenuous training, or during work or competition -- just when you can't afford it. ===
Happy Trails and best wishes to a lot of good horsin' around for all you readers who want horses. Horses can bring out the best and the worst of a person and give you endless hours of pleasure, exercise and frustration. But most horse owners and lovers wouldn't have it any other way.
TALLY HO!
Copyright 2004 by Jody Hudson
www.Kate-Jody.com and www.TheRuralSpecialist.com
numerous other articles at http://www.kate-jody.com/essays/index.html
Email MrJodyHudson@earthlink.net
Jody Hudson, Realtor specializing in horse properties and being around horse farms, since 1972 and much more. Many years of being around an being in business to help people with horses.
Wednesday, September 23, 2009
A Powerful Suggested Technique for YOUR Home & Property Search
A Powerful Suggested Technique for YOUR Home & Property Search
by Jody Hudson
You can be a pro at buying a home: Whether you are buying your first home or you are an experienced home buyer who owns more than one home, there are some things that can help you get faster results and get more professional and pleasant help from your Realtor.
A home or property purchase is one of the most important and exciting events to experience. Owning a home can help you build equity while reducing your income tax.
Land of any size requires minimal maintenance and is one of the best long term investments, even compared to gold or diamonds. However, along with the low maintenance, there is seldom any income to offset the cost. There are exceptions, mobile home parks, parking lots, and land rental under a shopping center are wonderful investments with relatively low maintenance if any.
Those who own land and property, as opposed to those who rent or lease, are historically considered to have a measure of stability, success and personal merit in addition to the obvious personal financial worth. This is so true that our Founding Fathers, who were dedicated students of all recorded human history, decreed that to be eligible to vote in our country a person must be a freeholder -- that is one who owned property mortgage free. They knew that the most responsible citizens would be the most responsible voters. Few of us would meet that criteria today. A person who held his property debt free, that is with a free and clear title, a Freeholder, was considered to have made good decisions, had good self control and managed his affairs well. Therefore, that person was considered to have obtained a level of maturity and responsibility -- that proved an ability to manage personal affairs and money as well as a priority to think of the future. The person who owned property with no debt, thus had obtained a sufficient ability to be allowed to vote on the management of our government and the public trust.
We are a nation of home and property owners more than any other nation on earth. However, most of us have a mortgage these days. If you, like most of us, need a mortgage on your new property, we hope you will find value in this article and that it will help you understand the advantage of planning your mortgage as a prerequisite to your purchase of a home. Having completed the mortgage acquisition step, a Realtor can help you organize your home search, as you begin browsing through the housing market.
Determining what features you want in your ideal or dream house and what payments you can afford are the important first steps. We ask that you consider the entire cost of home ownership, that is a total of the principle and interest payment, taxes, insurance and maintenance. Most folks are aware of the first four P.I.T.I. or Principle, Interest, Taxes and Insurance. There is another cost of home ownership that is not often figured in. It is property maintenance.
Maintenance is usually about 5% of the value of the improvements per year, if the average is taken over a long period of time, such as forty years. Many people think that 5% is too high a figure and prefer to use 2-3% instead. Whichever you use, make sure you figure in the cost of maintenance or you will end up not easily able to afford the upkeep on your property. This is very important to realize whether you are buying a new home or an older one. And, the older home will usually have a lot of deferred maintenance -- that is things that should have been done and haven't been!
If, for example, you purchase a home and lot where the vacant lot would sell for $50,000, and the home could be replaced for $250,000 and the landscaping value is $20,000 -- a rule of thumb is that you should figure $12,000 per year in maintenance of the home and another thousand in the maintenance of the grounds. We see properties all the time where the improvements have what is known as deferred maintenance. That work that should have been done and hasn't been, soon will need to be done. Deferred maintenance, maintenance not done that should have been done, is subtracted from the value of a home by those in the market, even if it is subconsciously done.
Home maintenance includes painting, caulking, re-carpeting, floor sanding refinishing, re-roofing every 15 to 50 years, depending on the composition of the roof and even replacing of windows, trim and siding. Outside there are sidewalks, the driveway, out buildings, decks, mulching, shrubbery maintenance, fertilizing, reseeding and replanting and of course the regular cutting and similar lawn care expenses. The reason we bring all this up about maintenance is that we hope you figure in the cost of it in addition to your home cost. If maintenance is not figured in you will end up with a mortgage plus maintenance cost or have to borrow more money to do the work that is needed, and that makes it more difficult to afford your new home.
It is important to figure in all the appropriate costs, expenses and other pertinent things, and to get a mortgage that you are able and willing to afford. It is important to your Realtor too. Some Realtors, in order to conserve their time and have more available for serious buyers, require that a person or couple be pre-qualified for the price range in which they seek to purchase a property first, before they begin to show properties. This is a good idea for the buyer as well as the Realtor and some sellers even ask us to NOT bring any prospective purchasers, unless they are financially prequalified -- in writing!
Mortgage brokers will gladly pull your credit report and get you a letter of pre-qualification or even a loan commitment letter for the amount you need to purchase a home. If you have a written loan commitment in hand when you first contact a Realtor, you will get considerably more and better attention.
One of the most difficult situations for a Realtor is that some percentage of the prospective purchasers that come to see properties for sale are not able to purchase those properties. Roughly 95% of a Realtor's time is preparation, paper work, promotion, marketing, web site modification and maintenance as well as maintaining contact with our most qualified buyers and sellers. When we spend two or three hours with a prospective purchaser, and it's usually far more, we are taking away from all the other things we are responsible to do for our other buyers and for our sellers. That time has to be made up.
For properties under $200,000 perhaps half of the folks that come to see us for a home are not able to buy the one they want to see. For properties under $100,000 about 75% of the folks who ask us to see properties are not able to purchase those properties. And, for those folks who come into our offices or call us regarding properties under $100,000 the percentage who can't purchase what they want is greater and greater as the price goes down.
Interestingly enough, a fairly high percentage of those who seek a property over a million dollars are qualified to purchase those properties without the help of our mortgage broker. Either they have their own banker, or they are able to obtain the funds on their own from other investments, or perhaps they even have a liquid assets account such as a money market account.
If you wish to be a shining light, and of greatest interest to your chosen Realtor, you are well advised to seek a mortgage broker or mortgage banker first and get a response in writing to bring with you. Your mortgage banker will probably ask for copies of prior years' tax returns. If you have copies of your credit reports, tax returns, lists of assets and all liabilities, and your bank statements are organized, you're ready to start exploring the housing market and shopping for a mortgage.
By the way, as I write this, our in-house Mortgage Broker or another lender of our choice, is able to give you a better rate and better terms than any other mortgage banker or broker in the market. Whether you use us as your Realtor or not, and if you are planning to purchase in our area we hope you will use us; you will get the utmost attention from your Realtor when you show up with a loan commitment!
Now SHOP! And, have fun!
Copyright 2004 by Jody Hudson www.JodyHudson.com
Read many more informative articles http://www.kate-jody.com/essays/index.html and about the hot real estate market in Rehoboth Beach Delaware at www.Kate-Jody.com
Jody Hudson has been a Realtor since 1972 and in the real estate business as a member of a family real estate business even before that.
by Jody Hudson
You can be a pro at buying a home: Whether you are buying your first home or you are an experienced home buyer who owns more than one home, there are some things that can help you get faster results and get more professional and pleasant help from your Realtor.
A home or property purchase is one of the most important and exciting events to experience. Owning a home can help you build equity while reducing your income tax.
Land of any size requires minimal maintenance and is one of the best long term investments, even compared to gold or diamonds. However, along with the low maintenance, there is seldom any income to offset the cost. There are exceptions, mobile home parks, parking lots, and land rental under a shopping center are wonderful investments with relatively low maintenance if any.
Those who own land and property, as opposed to those who rent or lease, are historically considered to have a measure of stability, success and personal merit in addition to the obvious personal financial worth. This is so true that our Founding Fathers, who were dedicated students of all recorded human history, decreed that to be eligible to vote in our country a person must be a freeholder -- that is one who owned property mortgage free. They knew that the most responsible citizens would be the most responsible voters. Few of us would meet that criteria today. A person who held his property debt free, that is with a free and clear title, a Freeholder, was considered to have made good decisions, had good self control and managed his affairs well. Therefore, that person was considered to have obtained a level of maturity and responsibility -- that proved an ability to manage personal affairs and money as well as a priority to think of the future. The person who owned property with no debt, thus had obtained a sufficient ability to be allowed to vote on the management of our government and the public trust.
We are a nation of home and property owners more than any other nation on earth. However, most of us have a mortgage these days. If you, like most of us, need a mortgage on your new property, we hope you will find value in this article and that it will help you understand the advantage of planning your mortgage as a prerequisite to your purchase of a home. Having completed the mortgage acquisition step, a Realtor can help you organize your home search, as you begin browsing through the housing market.
Determining what features you want in your ideal or dream house and what payments you can afford are the important first steps. We ask that you consider the entire cost of home ownership, that is a total of the principle and interest payment, taxes, insurance and maintenance. Most folks are aware of the first four P.I.T.I. or Principle, Interest, Taxes and Insurance. There is another cost of home ownership that is not often figured in. It is property maintenance.
Maintenance is usually about 5% of the value of the improvements per year, if the average is taken over a long period of time, such as forty years. Many people think that 5% is too high a figure and prefer to use 2-3% instead. Whichever you use, make sure you figure in the cost of maintenance or you will end up not easily able to afford the upkeep on your property. This is very important to realize whether you are buying a new home or an older one. And, the older home will usually have a lot of deferred maintenance -- that is things that should have been done and haven't been!
If, for example, you purchase a home and lot where the vacant lot would sell for $50,000, and the home could be replaced for $250,000 and the landscaping value is $20,000 -- a rule of thumb is that you should figure $12,000 per year in maintenance of the home and another thousand in the maintenance of the grounds. We see properties all the time where the improvements have what is known as deferred maintenance. That work that should have been done and hasn't been, soon will need to be done. Deferred maintenance, maintenance not done that should have been done, is subtracted from the value of a home by those in the market, even if it is subconsciously done.
Home maintenance includes painting, caulking, re-carpeting, floor sanding refinishing, re-roofing every 15 to 50 years, depending on the composition of the roof and even replacing of windows, trim and siding. Outside there are sidewalks, the driveway, out buildings, decks, mulching, shrubbery maintenance, fertilizing, reseeding and replanting and of course the regular cutting and similar lawn care expenses. The reason we bring all this up about maintenance is that we hope you figure in the cost of it in addition to your home cost. If maintenance is not figured in you will end up with a mortgage plus maintenance cost or have to borrow more money to do the work that is needed, and that makes it more difficult to afford your new home.
It is important to figure in all the appropriate costs, expenses and other pertinent things, and to get a mortgage that you are able and willing to afford. It is important to your Realtor too. Some Realtors, in order to conserve their time and have more available for serious buyers, require that a person or couple be pre-qualified for the price range in which they seek to purchase a property first, before they begin to show properties. This is a good idea for the buyer as well as the Realtor and some sellers even ask us to NOT bring any prospective purchasers, unless they are financially prequalified -- in writing!
Mortgage brokers will gladly pull your credit report and get you a letter of pre-qualification or even a loan commitment letter for the amount you need to purchase a home. If you have a written loan commitment in hand when you first contact a Realtor, you will get considerably more and better attention.
One of the most difficult situations for a Realtor is that some percentage of the prospective purchasers that come to see properties for sale are not able to purchase those properties. Roughly 95% of a Realtor's time is preparation, paper work, promotion, marketing, web site modification and maintenance as well as maintaining contact with our most qualified buyers and sellers. When we spend two or three hours with a prospective purchaser, and it's usually far more, we are taking away from all the other things we are responsible to do for our other buyers and for our sellers. That time has to be made up.
For properties under $200,000 perhaps half of the folks that come to see us for a home are not able to buy the one they want to see. For properties under $100,000 about 75% of the folks who ask us to see properties are not able to purchase those properties. And, for those folks who come into our offices or call us regarding properties under $100,000 the percentage who can't purchase what they want is greater and greater as the price goes down.
Interestingly enough, a fairly high percentage of those who seek a property over a million dollars are qualified to purchase those properties without the help of our mortgage broker. Either they have their own banker, or they are able to obtain the funds on their own from other investments, or perhaps they even have a liquid assets account such as a money market account.
If you wish to be a shining light, and of greatest interest to your chosen Realtor, you are well advised to seek a mortgage broker or mortgage banker first and get a response in writing to bring with you. Your mortgage banker will probably ask for copies of prior years' tax returns. If you have copies of your credit reports, tax returns, lists of assets and all liabilities, and your bank statements are organized, you're ready to start exploring the housing market and shopping for a mortgage.
By the way, as I write this, our in-house Mortgage Broker or another lender of our choice, is able to give you a better rate and better terms than any other mortgage banker or broker in the market. Whether you use us as your Realtor or not, and if you are planning to purchase in our area we hope you will use us; you will get the utmost attention from your Realtor when you show up with a loan commitment!
Now SHOP! And, have fun!
Copyright 2004 by Jody Hudson www.JodyHudson.com
Read many more informative articles http://www.kate-jody.com/essays/index.html and about the hot real estate market in Rehoboth Beach Delaware at www.Kate-Jody.com
Jody Hudson has been a Realtor since 1972 and in the real estate business as a member of a family real estate business even before that.
Monday, September 21, 2009
Real Estate: Reasons and Priorities for Purchasing Property
Real Estate: Reasons and Priorities for Purchasing Property. It's not just about Real Estate as an Investment.
By Jody Hudson www.JodyHudson.com
Real Estate can be a great investment with unusual appreciation. We have had several years years of exceptional annual appreciation.
We are still having great appreciation, perhaps as much as 20% annually in some areas. But, it is not as extensive nor as much as it was. Real Estate as an investment can be fairly good to best in the world -- but it is an investment that is best viewed over the long term; There can be long periods when it does not go up in value much, if at all. Taken over a period of decades or even centuries, nothing on earth beats it.
Another problem with real estate is that it is not liquid, that is, it is not easy to convert to cash -- like stocks, bonds, and savings accounts are. Real estate is particularly non-liquid during a downturn in our markets. You will
not likely hear this anywhere else, especially from other Realtors, but real estate is not a great investment, it is usually a good investment but not always, and not all the time -- when looked at short term.
Too many people buy real estate as an investment and forget that there are other reasons to buy. I suggest that you will be much happier if you purchase real estate for use and for lifestyle rather than as an investment, when it comes to your place of residence or your second home. Perhaps it should be almost entirely about lifestyle. After all, a primary residence or a second home should be a place to enjoy a lifestyle that allows you to relax and wind down from the rest of life.
If you live a very public life, one where people are always seeking you out, where you are always in the light of public scrutiny and often in the press for instance; if your normal life is one where you must always been on your best behavior and always crafting each word and action for it's best value - then perhaps a private place, away from others, a place where you don't know your neighbors, is just right for you. There are some communities that are unique. There is one just for you!
Perhaps the lifestyle you want is right in the middle of everything. Take a look at various properties for sale. Each of these properties has it's own personality of location and lifestyle. Ask your Realtor for lifestyle particulars about any of them. Most importantly, visit them on your own and find out from the other residents by meeting them and asking. Weekends are a great time to walk the area and speak to those working outside!
One of the things I try to convey to people who are at stages in life where lifestyle is really the only reason to purchase a home -- is to think about only "lifestyle". Are you really trying to buy an investment that will appreciate over a period of time so that you can sell it for a profit in the future? Or are you trying to settle into a lifestyle that will allow you to enjoy your home and surroundings and other aspects of your life?
Perhaps your other investments are in place, you are seeking a retired life and you wish to enjoy the lifestyle of a million dollar home, but don't want to take that money out of liquid investments, that you might need to access. In such a case, you might want to purchase a home on leased land. The owner of the land will get the appreciation but you can save, in some cases a million dollars or more, by getting a home on leased land. In some cases that might be a mobile home or manufactured home on rented or leased land. In our area of southern Delaware, most of the people living in land-lease communities do NOT look at the home here as an investment! They have investments.
Perhaps your perfect lifestyle home will not appreciate in value much or at all... at least not in the short term. BUT as long as you keep your home in top shape and are in a desirable community, you are most likely not losing anything at all. If you are considering a community that involves leased land, or "ground rent" as some folks call it, then consider what else you may be getting out of the deal.
Here and in other areas, some land-lease parks or communities allow you to live life like one of the wealthy without paying for it and without time and cost of maintainance. You may get benefits such as swimming pools, private beaches, marinas, tennis courts, grass cutting, trash removal, daily or hourly security drive-bys, etc. The communities that I know of that are in "fee simple", that is where you own your own land, do not provide all of these benefits, (though I do know of many that provide some).
Consider what it is you want out of home or out of a vacation home. If low maintenance is a priority for you at this point, the manufactured home community may be the best choice, perhaps. Also, you need to consider how much you are willing to spend on a vacation home. This will hold a major bearing on what you will eventually purchase. There are many options for people who are in your situation. You just need to balance your wants and needs in priority order. Next, consider your finances. There are many desirable factors in owning each different type of residential real estate. All we ask, is that for YOUR improved happiness, please consider Lifestyle instead of only investment appreciation!
Copyright 2004 by Jody Hudson
Other articles by Jody may be found at
http://www.kate-jody.com/essays/index.html
Jody Hudson: MrJodyHudson@earthlink.net and www.Kate-Jody.com
Jody Hudson was raised as a farmer in Delaware. In 1969 he and his father began "planting houses instead of crops" on the land. It was far more profitable. In 1972 he got a real estate licencse. In a few years he became the youngest real estate broker in Delaware history. In 1982 he was selected by Who's Who in American Real Estate as it's youngest member at the time. He has created about 40 residential communities and sold real estate in Delaware and across he nation. He has written several valuable articles http://www.kate-jody.com/essays/index.html for you. Enjoy!
By Jody Hudson www.JodyHudson.com
Real Estate can be a great investment with unusual appreciation. We have had several years years of exceptional annual appreciation.
We are still having great appreciation, perhaps as much as 20% annually in some areas. But, it is not as extensive nor as much as it was. Real Estate as an investment can be fairly good to best in the world -- but it is an investment that is best viewed over the long term; There can be long periods when it does not go up in value much, if at all. Taken over a period of decades or even centuries, nothing on earth beats it.
Another problem with real estate is that it is not liquid, that is, it is not easy to convert to cash -- like stocks, bonds, and savings accounts are. Real estate is particularly non-liquid during a downturn in our markets. You will
not likely hear this anywhere else, especially from other Realtors, but real estate is not a great investment, it is usually a good investment but not always, and not all the time -- when looked at short term.
Too many people buy real estate as an investment and forget that there are other reasons to buy. I suggest that you will be much happier if you purchase real estate for use and for lifestyle rather than as an investment, when it comes to your place of residence or your second home. Perhaps it should be almost entirely about lifestyle. After all, a primary residence or a second home should be a place to enjoy a lifestyle that allows you to relax and wind down from the rest of life.
If you live a very public life, one where people are always seeking you out, where you are always in the light of public scrutiny and often in the press for instance; if your normal life is one where you must always been on your best behavior and always crafting each word and action for it's best value - then perhaps a private place, away from others, a place where you don't know your neighbors, is just right for you. There are some communities that are unique. There is one just for you!
Perhaps the lifestyle you want is right in the middle of everything. Take a look at various properties for sale. Each of these properties has it's own personality of location and lifestyle. Ask your Realtor for lifestyle particulars about any of them. Most importantly, visit them on your own and find out from the other residents by meeting them and asking. Weekends are a great time to walk the area and speak to those working outside!
One of the things I try to convey to people who are at stages in life where lifestyle is really the only reason to purchase a home -- is to think about only "lifestyle". Are you really trying to buy an investment that will appreciate over a period of time so that you can sell it for a profit in the future? Or are you trying to settle into a lifestyle that will allow you to enjoy your home and surroundings and other aspects of your life?
Perhaps your other investments are in place, you are seeking a retired life and you wish to enjoy the lifestyle of a million dollar home, but don't want to take that money out of liquid investments, that you might need to access. In such a case, you might want to purchase a home on leased land. The owner of the land will get the appreciation but you can save, in some cases a million dollars or more, by getting a home on leased land. In some cases that might be a mobile home or manufactured home on rented or leased land. In our area of southern Delaware, most of the people living in land-lease communities do NOT look at the home here as an investment! They have investments.
Perhaps your perfect lifestyle home will not appreciate in value much or at all... at least not in the short term. BUT as long as you keep your home in top shape and are in a desirable community, you are most likely not losing anything at all. If you are considering a community that involves leased land, or "ground rent" as some folks call it, then consider what else you may be getting out of the deal.
Here and in other areas, some land-lease parks or communities allow you to live life like one of the wealthy without paying for it and without time and cost of maintainance. You may get benefits such as swimming pools, private beaches, marinas, tennis courts, grass cutting, trash removal, daily or hourly security drive-bys, etc. The communities that I know of that are in "fee simple", that is where you own your own land, do not provide all of these benefits, (though I do know of many that provide some).
Consider what it is you want out of home or out of a vacation home. If low maintenance is a priority for you at this point, the manufactured home community may be the best choice, perhaps. Also, you need to consider how much you are willing to spend on a vacation home. This will hold a major bearing on what you will eventually purchase. There are many options for people who are in your situation. You just need to balance your wants and needs in priority order. Next, consider your finances. There are many desirable factors in owning each different type of residential real estate. All we ask, is that for YOUR improved happiness, please consider Lifestyle instead of only investment appreciation!
Copyright 2004 by Jody Hudson
Other articles by Jody may be found at
http://www.kate-jody.com/essays/index.html
Jody Hudson: MrJodyHudson@earthlink.net and www.Kate-Jody.com
Jody Hudson was raised as a farmer in Delaware. In 1969 he and his father began "planting houses instead of crops" on the land. It was far more profitable. In 1972 he got a real estate licencse. In a few years he became the youngest real estate broker in Delaware history. In 1982 he was selected by Who's Who in American Real Estate as it's youngest member at the time. He has created about 40 residential communities and sold real estate in Delaware and across he nation. He has written several valuable articles http://www.kate-jody.com/essays/index.html for you. Enjoy!
Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced Properties Are Available...
Cheap, Bargain, Real Estate; Good Deals, Below Market, Low Priced properties are available if you know how to buy them.
By Jody Hudson - Realtor since 1972.
How to FIND and BUY: Cheap Bargain Real Estate, Good Deals, Below Market, Low Priced and Less Expensive; homes, lots, land, businesses, and condominiums. They are everywhere and easy to find. Here is how to find and buy them from anyone, anywhere.
This article lays out the steps: How to find and buy a Bargain, A Good Deal, in real estate; that is; how to get it real cheap! Yes, there are ways!
Nearly every call or e-mail that I get is asking me to find the buyer a bargain. We all feel that way when we are buying as well. All of us want a good deal. We all want to get cheap real estate. And we can all do it.
There is a bit of a challenge however. Every single buyer that I've ever had in my thirty two years of selling real estate has wanted to sell the property they have for more than it is worth. Herein lays our challenge as Realtors -- and of course for you as purchasers.
To get those HOT deals in real estate there are at least three things you must do:
1. First of all as a buyer you must be able and willing to act faster than any other buyer.
2. Second you must be able to know a bargain when you see one. This takes experience and education in the specific market . Any assumptions made from other markets, about the subject-inteded market, will sentence you to certain failure...
3. Third you must BUY it. That is write a deposit check and write a contract that will win over the other contracts that may be presented at about the same time as yours.
This group of three steps, sounds simple, but only about one buyer in each ten year period is willing to do these three things in order to get the cheap property they have asked us to find for them! I have several people, and so do most Realtors, that are the most; ready, willing and able and we call them first! If you want to be one of the ones called you must be MORE ready, willing and able!
Recently, August 2002 the waterfront home next to ours was listed for sale for $249,000 and it was worth at the time about $350,000. Kate and I called each of our family members, our wonderful neighbors on the other side (one of whom is a local builder and the other a mortgage broker) and some of our best clients and a best friend of ours, a builder and investor, who had already said he liked the fine home. (Note that property is now worth about $800,000 Sept. 2004).
We explained that the home was going on the market in a few hours and that they must act fast. Our neighbors on the other side, the most knowledgeable of the bunch wanted to make an offer of $180,000 saying they thought that was all the property was worth. They knew better or at least should have and they should have bought it. They just "hoped" they could get it for less and that they didn't have to move fast. The offer they made was ignored and wasted our time. They did however get another property in a few days, for a lot more money, that was worth a lot less, as a result of improved alertness and awareness after loosing the one next to us.
Our savvy investor friend put in a couple of offers below the asking price with several contingencies. Meanwhile we are telling everyone to write a contract for full price with no contingencies and calling on both our phones as fast as we could call. None of our best friends or family would pay attention. They were ALL too greedy. They knew the property was far under-priced but wanted it for even less... Lesson: when it's a good deal - ACT instead of getting more greedy and losing the deal totally.
Then our lovely new neighbors came and saw the property. They also were knowledgeable about similar properties, and had lost several properties they liked by moving slow, writing unreasonable contracts and not paying attention to real values.
This time they did it correctly. In fact they wrote a contract on the spot, with no contingencies, and for MORE than full price so that if anyone did offer full price they would still have the best chance. They paid $5,000 more than the full price on the spot, told the sellers they could have settlement any time they wanted it and before they even heard back from the sellers they arranged for a mortgage of MORE than they needed and asked for the money to be immediately available. They did not ask for a home inspection, a survey, or for the sellers to fix anything. The home is 30 years old and has not had one bit of maintenance. There was a burst hot water tank, a roof that needs replacing and a few HUGE cracks in the foundation. All these problems cost them about $15,000.
They have, as I write this, owned the property for several months and worked on it every weekend, before they could take a break and enjoy it. They love it. If they were to fix all of the things that need fixing, paint the trim and freshen up the yard and landscaping; we could get $900,000 to $950,000 for this home for them in a few months on the market. And, city sewer will be here in a few years, at that point the property will instantly go up another $200,000 and all the people we called knew about the pending sewer too.
The buyers didn't find out about the sewer coming to town until after they had contracted to purchase the property. The sewer is still not in -- WOW. They are glad they did the One, Two, Three to make it happen!
By doing the three things listed above the purchasers of the home next to us have made the wisest purchasing decision thus far in their lives and have one of the best bargains that have been available in the last several years. The sellers are happy too as they just wanted to sell it as fast as they possibly could, due to a sudden and dangerous illness of one of the owners.
I'm writing this article to serve you the reader. But you must know it is self serving as well. Much of our time as Real Estate Agents is spent trying to successfully educate our buyers and sellers. If they would take our advice they could be far, far, more successful in selling or buying. The articles I write here http://www.kate-jody.com/essays/index.html are those advices that I give my customers and clients - if they ask. Most don't and when they do, very few take the advice. Just like in every other profession, we the professionals do what we can to help those who come to us but it's up to them to take the advice.
Bargain homes are always available - but hard to sell. They are homes that are in need of some repair or cosmetic improvement or that are in an area of transition. We have several on the market right now and they are hard to sell. Someone with vision will eventually purchase them, fix them up and perhaps sell them at a huge profit - often to someone who says they want a bargain but won't do what it takes to get a bargain. Funny isn't it, and this sort of thing happens all the time. It has consistently happened in my 35 years in the real estate business and being a licensed Realtor since 1972. Just know this, if you want a fixer-upper, so does everyone else, but you need to be very, very, educated and able to spend the time and money to renovate the property effectively and affordably. And, you need to do One, Two, Three!
If you want a bargain; educate yourself and be ready to DO -- One, Two, and Three. We'll try to help you.
By Jody Hudson Copyright 2002-2004 www.Kate-Jody.com
Jody Hudson: MrJodyHudson@earthlink.net
By Jody Hudson - Realtor since 1972.
How to FIND and BUY: Cheap Bargain Real Estate, Good Deals, Below Market, Low Priced and Less Expensive; homes, lots, land, businesses, and condominiums. They are everywhere and easy to find. Here is how to find and buy them from anyone, anywhere.
This article lays out the steps: How to find and buy a Bargain, A Good Deal, in real estate; that is; how to get it real cheap! Yes, there are ways!
Nearly every call or e-mail that I get is asking me to find the buyer a bargain. We all feel that way when we are buying as well. All of us want a good deal. We all want to get cheap real estate. And we can all do it.
There is a bit of a challenge however. Every single buyer that I've ever had in my thirty two years of selling real estate has wanted to sell the property they have for more than it is worth. Herein lays our challenge as Realtors -- and of course for you as purchasers.
To get those HOT deals in real estate there are at least three things you must do:
1. First of all as a buyer you must be able and willing to act faster than any other buyer.
2. Second you must be able to know a bargain when you see one. This takes experience and education in the specific market . Any assumptions made from other markets, about the subject-inteded market, will sentence you to certain failure...
3. Third you must BUY it. That is write a deposit check and write a contract that will win over the other contracts that may be presented at about the same time as yours.
This group of three steps, sounds simple, but only about one buyer in each ten year period is willing to do these three things in order to get the cheap property they have asked us to find for them! I have several people, and so do most Realtors, that are the most; ready, willing and able and we call them first! If you want to be one of the ones called you must be MORE ready, willing and able!
Recently, August 2002 the waterfront home next to ours was listed for sale for $249,000 and it was worth at the time about $350,000. Kate and I called each of our family members, our wonderful neighbors on the other side (one of whom is a local builder and the other a mortgage broker) and some of our best clients and a best friend of ours, a builder and investor, who had already said he liked the fine home. (Note that property is now worth about $800,000 Sept. 2004).
We explained that the home was going on the market in a few hours and that they must act fast. Our neighbors on the other side, the most knowledgeable of the bunch wanted to make an offer of $180,000 saying they thought that was all the property was worth. They knew better or at least should have and they should have bought it. They just "hoped" they could get it for less and that they didn't have to move fast. The offer they made was ignored and wasted our time. They did however get another property in a few days, for a lot more money, that was worth a lot less, as a result of improved alertness and awareness after loosing the one next to us.
Our savvy investor friend put in a couple of offers below the asking price with several contingencies. Meanwhile we are telling everyone to write a contract for full price with no contingencies and calling on both our phones as fast as we could call. None of our best friends or family would pay attention. They were ALL too greedy. They knew the property was far under-priced but wanted it for even less... Lesson: when it's a good deal - ACT instead of getting more greedy and losing the deal totally.
Then our lovely new neighbors came and saw the property. They also were knowledgeable about similar properties, and had lost several properties they liked by moving slow, writing unreasonable contracts and not paying attention to real values.
This time they did it correctly. In fact they wrote a contract on the spot, with no contingencies, and for MORE than full price so that if anyone did offer full price they would still have the best chance. They paid $5,000 more than the full price on the spot, told the sellers they could have settlement any time they wanted it and before they even heard back from the sellers they arranged for a mortgage of MORE than they needed and asked for the money to be immediately available. They did not ask for a home inspection, a survey, or for the sellers to fix anything. The home is 30 years old and has not had one bit of maintenance. There was a burst hot water tank, a roof that needs replacing and a few HUGE cracks in the foundation. All these problems cost them about $15,000.
They have, as I write this, owned the property for several months and worked on it every weekend, before they could take a break and enjoy it. They love it. If they were to fix all of the things that need fixing, paint the trim and freshen up the yard and landscaping; we could get $900,000 to $950,000 for this home for them in a few months on the market. And, city sewer will be here in a few years, at that point the property will instantly go up another $200,000 and all the people we called knew about the pending sewer too.
The buyers didn't find out about the sewer coming to town until after they had contracted to purchase the property. The sewer is still not in -- WOW. They are glad they did the One, Two, Three to make it happen!
By doing the three things listed above the purchasers of the home next to us have made the wisest purchasing decision thus far in their lives and have one of the best bargains that have been available in the last several years. The sellers are happy too as they just wanted to sell it as fast as they possibly could, due to a sudden and dangerous illness of one of the owners.
I'm writing this article to serve you the reader. But you must know it is self serving as well. Much of our time as Real Estate Agents is spent trying to successfully educate our buyers and sellers. If they would take our advice they could be far, far, more successful in selling or buying. The articles I write here http://www.kate-jody.com/essays/index.html are those advices that I give my customers and clients - if they ask. Most don't and when they do, very few take the advice. Just like in every other profession, we the professionals do what we can to help those who come to us but it's up to them to take the advice.
Bargain homes are always available - but hard to sell. They are homes that are in need of some repair or cosmetic improvement or that are in an area of transition. We have several on the market right now and they are hard to sell. Someone with vision will eventually purchase them, fix them up and perhaps sell them at a huge profit - often to someone who says they want a bargain but won't do what it takes to get a bargain. Funny isn't it, and this sort of thing happens all the time. It has consistently happened in my 35 years in the real estate business and being a licensed Realtor since 1972. Just know this, if you want a fixer-upper, so does everyone else, but you need to be very, very, educated and able to spend the time and money to renovate the property effectively and affordably. And, you need to do One, Two, Three!
If you want a bargain; educate yourself and be ready to DO -- One, Two, and Three. We'll try to help you.
By Jody Hudson Copyright 2002-2004 www.Kate-Jody.com
Jody Hudson: MrJodyHudson@earthlink.net
Thursday, September 17, 2009
How to Make the Real Estate Market Work For You and Get The Most Money
How to make the Real Estate market work for you and get the most money.
Dad always said that Real estate is a good investment because they don't make it anymore. Because they are so busy these days anyone selling your home may be thinking more of listing more homes than your welfare. If you plan on selling and moving you will need to take some simple steps to get the most money you can.
Most Real Estate companies do a good job but in a sellers market you can probably sell your home yourself. Anyway if you have the time it won't hurt to try. If it doesn't sell then you can always call the pros in latter. The internet has been a blessing to the average person. Not only can you sell many things you don't need anymore, you can even sell your home on the net at sites like PropertytraderUSA.com. Thousands of people visit sites like this looking for a new home. Even if your home is with a Broker you can still speed things along by putting low cost ads on the internet.
First you need to get your home ready to show. Buyers like homes that are clean with as few of your things as possible lying around so it's time to do a spring-cleaning. Some big furniture may cost more to move than its worth so sell these things locally. You may want to buy new things later anyway. Then look around for small stuff you don't want and sell it on eBay. What's left is stuff you can't live without or it's just junk. If you aren't sure then ask your wife guys, she'll point out the junk to you.
If you like most people have collected too much stuff then consider renting storage for a month or two. Clean out the garage and hose it down to get rid of dust and spider webs. Men like garages and want to picture their tools and things there. One of the best home improvements that don't cost a lot of money is pant, especially if you don't mind doing the labor.
Ever notice how guests always end up in the kitchen? Most people like kitchens and this is the first room to remodel or just clean and paint. The next most important room is the bathroom. Repair leaks, rust spots, and replace the little things that seem to get ugly over time. If you have pets make sure you don't have a cat litter box sitting around smelling up the place. Homeowners get used to their own smells and can't smell a thing but your visitors' sure can!
Big dogs scare some people (not me) and maybe it would be best to let Bruno visit Uncle Pete for a few weeks. After you finish with everything invite some friends over for a party and get some feedback on how everything looks. When everything looks good it's time to take some pictures. You need good clear pictures to post on the net and mail to interested buyers. If you're not experienced at photography find someone that is. Good photography takes years to learn and that's what you need now. I've tested photos of my products on eBay and believe me it makes a big difference. Remember, a picture is worth a thousand words.
If you use a Real Estate broker select one with lots of experience. I like the larger companies because they give you lots more exposure through their advertising and intercity referrals. Buyers trust them more also. The small cut-rate company's may be slower to find a buyer and fix problems. When you are ready to move be careful to pick an honest moving company. Many of them have been holding truckloads of belongings and demanding more money. Pick one with a good reputation.
When I was selling Real Estate there was no such thing as the internet. What a wonderful thing it is. More and more people are selling everything you can think of on the net. There are plenty of Real Estate listing websites including my own PropertyTraderUSA.com that will advertise your Home for a small fee. PropertytraderUSA.com is free for the first 200 ads. After that its only $25 for six months and includes a photo. Wow, can you imagine selling for $25 and saving all that money! Do it Now!
To your success! Dean Minton
© 2004 by Dean Minton
You have permission to publish this article electronically or in print, in your Newsletter, on your website, or in your E-Book, as long as the author's Resource Box is included with the article.
--------------------------------------------------------
Dean Minton is the author of the Science Fiction Screenplays,
"The Quantum Child" and "Backseat".
List your property for sale at Dean's new Nation Wide Real Estate Website for only $25 dollars! (first 200 are free) Go to Http://www.PropertytraderUSA.com
Contact him at: mailto: Deanspictures@netzero.net
--------------------------------------------------------
Dad always said that Real estate is a good investment because they don't make it anymore. Because they are so busy these days anyone selling your home may be thinking more of listing more homes than your welfare. If you plan on selling and moving you will need to take some simple steps to get the most money you can.
Most Real Estate companies do a good job but in a sellers market you can probably sell your home yourself. Anyway if you have the time it won't hurt to try. If it doesn't sell then you can always call the pros in latter. The internet has been a blessing to the average person. Not only can you sell many things you don't need anymore, you can even sell your home on the net at sites like PropertytraderUSA.com. Thousands of people visit sites like this looking for a new home. Even if your home is with a Broker you can still speed things along by putting low cost ads on the internet.
First you need to get your home ready to show. Buyers like homes that are clean with as few of your things as possible lying around so it's time to do a spring-cleaning. Some big furniture may cost more to move than its worth so sell these things locally. You may want to buy new things later anyway. Then look around for small stuff you don't want and sell it on eBay. What's left is stuff you can't live without or it's just junk. If you aren't sure then ask your wife guys, she'll point out the junk to you.
If you like most people have collected too much stuff then consider renting storage for a month or two. Clean out the garage and hose it down to get rid of dust and spider webs. Men like garages and want to picture their tools and things there. One of the best home improvements that don't cost a lot of money is pant, especially if you don't mind doing the labor.
Ever notice how guests always end up in the kitchen? Most people like kitchens and this is the first room to remodel or just clean and paint. The next most important room is the bathroom. Repair leaks, rust spots, and replace the little things that seem to get ugly over time. If you have pets make sure you don't have a cat litter box sitting around smelling up the place. Homeowners get used to their own smells and can't smell a thing but your visitors' sure can!
Big dogs scare some people (not me) and maybe it would be best to let Bruno visit Uncle Pete for a few weeks. After you finish with everything invite some friends over for a party and get some feedback on how everything looks. When everything looks good it's time to take some pictures. You need good clear pictures to post on the net and mail to interested buyers. If you're not experienced at photography find someone that is. Good photography takes years to learn and that's what you need now. I've tested photos of my products on eBay and believe me it makes a big difference. Remember, a picture is worth a thousand words.
If you use a Real Estate broker select one with lots of experience. I like the larger companies because they give you lots more exposure through their advertising and intercity referrals. Buyers trust them more also. The small cut-rate company's may be slower to find a buyer and fix problems. When you are ready to move be careful to pick an honest moving company. Many of them have been holding truckloads of belongings and demanding more money. Pick one with a good reputation.
When I was selling Real Estate there was no such thing as the internet. What a wonderful thing it is. More and more people are selling everything you can think of on the net. There are plenty of Real Estate listing websites including my own PropertyTraderUSA.com that will advertise your Home for a small fee. PropertytraderUSA.com is free for the first 200 ads. After that its only $25 for six months and includes a photo. Wow, can you imagine selling for $25 and saving all that money! Do it Now!
To your success! Dean Minton
© 2004 by Dean Minton
You have permission to publish this article electronically or in print, in your Newsletter, on your website, or in your E-Book, as long as the author's Resource Box is included with the article.
--------------------------------------------------------
Dean Minton is the author of the Science Fiction Screenplays,
"The Quantum Child" and "Backseat".
List your property for sale at Dean's new Nation Wide Real Estate Website for only $25 dollars! (first 200 are free) Go to Http://www.PropertytraderUSA.com
Contact him at: mailto: Deanspictures@netzero.net
--------------------------------------------------------
Wednesday, September 16, 2009
How to Price Your Property?
A house properly priced is half sold.
But there are plenty of ways to price it improperly..
* You can't go by what you paid for the place. Perhaps you bought two years ago when local prices were skyrocketing, and things have cooled off since. Perhaps houses like yours can now be bought for less, and if you hold out for what you paid, you'll just waste your time..
On the other hand, perhaps prices in your area have taken off, and you'd short-change yourself if you just tried to "get my money out" (but you'd have a fast sale.).
* You can't go by how much you've spent on improvements. A given street will support only a given price range. If you've invested so much that yours would be the most expensive house on the street, the buying public is not likely to reimburse you..
* You can't go by your tax assessment figure. Even in communities that aim at full-value assessments, the figures are almost never in line with what buyers are currently ready to pay..
So how do you price your house?.
By putting yourself in a buyer's shoes..
What else is for sale in the area? How does it compare with your house? How long has it been on the market? What has sold recently, and how much did the buying public value it at? What has failed to sell in the past year?.
Any good broker can furnish the data you need, often in the form of a chart known as a CMA, Comparative Market Analysis. .
And once you have it, again think like a buyer. What price would it take for you to look at a list and say to an agent "Take me to see that one"?.
Ajay Pats is a professional manager.He manages real estate broking site "Real estate broker"(http://realestatebroker.nexuswebs.net/realestatebroker/index.html ),community for home based business entrepreneurs "Venturecon/Home business opportunities" (http://groups.msn.com/venturecon ) and inspirational ezine "Discover secrets of happy and prosperous life " (http://www.topica.com/lists/venturemall ).
But there are plenty of ways to price it improperly..
* You can't go by what you paid for the place. Perhaps you bought two years ago when local prices were skyrocketing, and things have cooled off since. Perhaps houses like yours can now be bought for less, and if you hold out for what you paid, you'll just waste your time..
On the other hand, perhaps prices in your area have taken off, and you'd short-change yourself if you just tried to "get my money out" (but you'd have a fast sale.).
* You can't go by how much you've spent on improvements. A given street will support only a given price range. If you've invested so much that yours would be the most expensive house on the street, the buying public is not likely to reimburse you..
* You can't go by your tax assessment figure. Even in communities that aim at full-value assessments, the figures are almost never in line with what buyers are currently ready to pay..
So how do you price your house?.
By putting yourself in a buyer's shoes..
What else is for sale in the area? How does it compare with your house? How long has it been on the market? What has sold recently, and how much did the buying public value it at? What has failed to sell in the past year?.
Any good broker can furnish the data you need, often in the form of a chart known as a CMA, Comparative Market Analysis. .
And once you have it, again think like a buyer. What price would it take for you to look at a list and say to an agent "Take me to see that one"?.
Ajay Pats is a professional manager.He manages real estate broking site "Real estate broker"(http://realestatebroker.nexuswebs.net/realestatebroker/index.html ),community for home based business entrepreneurs "Venturecon/Home business opportunities" (http://groups.msn.com/venturecon ) and inspirational ezine "Discover secrets of happy and prosperous life " (http://www.topica.com/lists/venturemall ).
Joint Ventures In Real Estate Development; So How Do They Work?
There are many reasons why you would consider joining with another person to undertake a development project in Joint Venture.
Usually the most basis reason reveolves around something you don't have.
Some of them may be:
1. I own land ... have capital & capacity to borrow ... but no experience.
2. I have capital & capacity to borrow ... partner has land ... both have no experience.
3. I am 'time poor' ... work full time and can't be personally involved ...
Let's suppose you want to find a land owner who will put their land
into the Joint Venture, (JV) and their land will be their major contribution to the deal, plus some borrowings.
Let's consider the implications of entering into a JV in the first place.
After all, in a JV you have to take into account another persons attitude, decision making process, (or inability to make a decision), whether they have a logical and sensible mind ... the list goes on.
So, getting into a JV must have a good payback for you. Whatever you lack is usually the reason for entering into a JV.
I have noticed over the years that JV's have a prime motivator, the driver of the deal (you), and the other person is along for the ride.
For example: the other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge. You "love" the site and know that you could make it a very successful and profitable real estate development. You approched the land owner.
Another example: maybe two individuals who have saved their capital, however individually it is inadaquate to undertake a project. Combining their capital and borrowing capacity will allow they to proceed.
I prefer a JV where both parties are equally motivated, have different skill bases, but each regards the other as contributing equally.
You know the feelings that can occur, "I'm working harder that you ...
all you do is the phone and number crunching work ... I'm always out
and about on site dealing with the real work."
Don't forget why you got together in the first place.
So there are many reasons for JV's. However, you must be clear as to why you are doing it, and it must be secured by a legally prepared JV Agreement.
A lot of 'practical people' hate legal documents ... a JV Agreement is a legal document and both parties must understand what it says. If one of you is a bit slack on this point, it is up to the other to sit them down and go through it ... it's important!
Why?
Suppose the JV deal hits a rough patch and your partner says, "I didn't know that ... why didn't you tell me ... I left all that legal garbage to you ... blah, blah." Got It, have the arguments at the beginning of the deal ... not later.
A JV Agreement sets out what each party will contribute, both money and effort, and sets out each parties obligations. It also sets out what happens if the parties 'fall-out' with each other as well as the division of profits or losses.
There is a lot more at stake if you JV with your rother-in-Law, other relatives etc ... the term 'on-going-nightmare' is a phrase that readily comes to mind.
And if one of those family JV's brake down, it dosen't matter how many pages are in the JV Agreement, or what the words say to prove that you are "RIGHT," ... as far as YOUR Brother-in-Law is concerned, you are a 'expletive deleted.'
Just thought I'd get that out of the way!! OK?
One more thing ... doing a JV with a rich person, when you are many levels poorer then them, is also not smart.
Why?
Well, in simple terms, when 'push comes to shove' money rules ...
The golden rule says, He who has the GOLD, RULES.
Also, if the rich guy tell you not to bother with a JV Agreement ... he appears to be saving you money ... tempting eh? ... what he's really doing is taking away your legal rights.
Yep, you'll have less rights than an employee. If that's the deal ... better to be an employee!
In my my ebook I emphasise the importance of getting the Structure Work of the business organised - you will build a much better development business from a secure foundation.
When you are doing your interviewing of the associated professionals, try to see if they, personally, have any entrepreneutial tendancies.
They may have land, houses, houses for renovation etc but don't have the 'TIME' or 'SKILLS' to do the work themselves.
Don't come out and ask them straight away ... follow my ebook, do the work you want to do; that is assessing them ... but keep your antenna out for any signs of a common interest.
OK, back to getting hold of some land.
Get to know the local real estate agents; I mean know them well.
Remember what I say in the ebook.
Call in and buy them a cup of coffee, take them out of their work place;
what about dinner after work; really spread yourself around.
Invest your Time in finding good, well informed, dedicated agents. Believe me they are in your business community ... it's your job to find them.
Appreciate that Agents are essentially self-employed, irrespective of whether they work in a Real Estate Agency ... their 'mind set' is independent.
They back themselves and their abilities to provide a sales service at a
level that "consistantly" provides them with a 'good income.
That 'good income' by the way, will leave most of their 'client's' income
looking a little anaemic.
The 'good agents' are busy; their 'time' is money; literally. So don't mess them around.
Don't talk to them as though you are the Aga Kahn! You're Not. There's always a guy richer than you ... maybe the Agent!
Why am I making such a big point about agents.
I believe "people" get the agents "they deserve."
I have heard people talk to Agents as though they were some grubby leech on society and are doing them an honor even to talk to them.
To be a successful agent these days you have to be very good. Many are highly educated and choose real estate as a career for the freedom,
individual reward and great returns.
What comes out of your mouth + body language tells an agent a great deal about you. They then wonder why the Agent never calls then ... Dong!!!
Keep your 'ego' under control. Their sales success rests on their ability at 'reading people.' Remember what I say in my ebook!
When you are in the development business, you are in the business of:
Getting People To Do ... What You Want Them To Do
Within The 'TIME' AND 'Costs'You Set.
That means that you have to be in control of 'How You Treat People.'
Agents know a lot of people ... maybe, they even know those people who want to JV with you.
While you are doing this "work" don't forget to do what my ebook tell you
to do about research.
Last idea for finding JV people - talk to your friends - put an advert in the local newspaper seeking expressions of interest from people interested in doing what you want.
OK, you've found a partner who has the land and you are comfortable with the relationship after several meetings.
Important question! What value does your prospective partner put on his land that will be put into the JV?
Just throwing a few figures around to give you an example.
Let's say that market value for his land right now is $300,000. But he wants to put into the JV at $400,000. So if your JV Agreement involves you gaining a share of the profit, your share will be $100,000 less. Got It?
Now let's say that part of your skills contribution to the JV includes a
rezoning of the land to a higher level and you achieve that for the JV.
That rezoning may take the land from a single unit (house) dwelling zone to a six dwelling unit zone.
Your efforts have increased the land value significantly ... no, not six times, as house properties are valued differently to multiple unit properties. But it may have increased by 3 or more times, depending on your market.
Once again the $100,000 will come off your share. Now that may be OK by you, because you are just starting out on your first development ... it is always better to KNOW what you are agreeing too.
I hope this information helps you in your consideration of entering a JV.
but please remember, don't just read my eBook ... study it ... take notes in a special hard cover Development Copy Book that you will buy.
Writing things down is an aid to learning and remembering.
My LAST DON'T ... Don't start any of this JV stuff until you know my eBook
inside out. You must not just be able to 'talk the talk' - you must know what you are talking about.
What I am all about, is helping you to do residential development with the RISK reduced.
If it takes four years study to get a basic Degree and say another five years to get some experience, why would you think that you can enter the development business with little study -- no experience and expect to be profitable?
"Residential Development Made Easy" is written by Colm Dillon, the 'Real Estate Development Coach' and is the only 'How To Become a Residential Real Estate Developer's eBook on the web; it's selling in 38 Countries, from his experience of developing $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
Usually the most basis reason reveolves around something you don't have.
Some of them may be:
1. I own land ... have capital & capacity to borrow ... but no experience.
2. I have capital & capacity to borrow ... partner has land ... both have no experience.
3. I am 'time poor' ... work full time and can't be personally involved ...
Let's suppose you want to find a land owner who will put their land
into the Joint Venture, (JV) and their land will be their major contribution to the deal, plus some borrowings.
Let's consider the implications of entering into a JV in the first place.
After all, in a JV you have to take into account another persons attitude, decision making process, (or inability to make a decision), whether they have a logical and sensible mind ... the list goes on.
So, getting into a JV must have a good payback for you. Whatever you lack is usually the reason for entering into a JV.
I have noticed over the years that JV's have a prime motivator, the driver of the deal (you), and the other person is along for the ride.
For example: the other party may have a wonderful property (site) and wants to develop it, but does not have the knowledge. You "love" the site and know that you could make it a very successful and profitable real estate development. You approched the land owner.
Another example: maybe two individuals who have saved their capital, however individually it is inadaquate to undertake a project. Combining their capital and borrowing capacity will allow they to proceed.
I prefer a JV where both parties are equally motivated, have different skill bases, but each regards the other as contributing equally.
You know the feelings that can occur, "I'm working harder that you ...
all you do is the phone and number crunching work ... I'm always out
and about on site dealing with the real work."
Don't forget why you got together in the first place.
So there are many reasons for JV's. However, you must be clear as to why you are doing it, and it must be secured by a legally prepared JV Agreement.
A lot of 'practical people' hate legal documents ... a JV Agreement is a legal document and both parties must understand what it says. If one of you is a bit slack on this point, it is up to the other to sit them down and go through it ... it's important!
Why?
Suppose the JV deal hits a rough patch and your partner says, "I didn't know that ... why didn't you tell me ... I left all that legal garbage to you ... blah, blah." Got It, have the arguments at the beginning of the deal ... not later.
A JV Agreement sets out what each party will contribute, both money and effort, and sets out each parties obligations. It also sets out what happens if the parties 'fall-out' with each other as well as the division of profits or losses.
There is a lot more at stake if you JV with your rother-in-Law, other relatives etc ... the term 'on-going-nightmare' is a phrase that readily comes to mind.
And if one of those family JV's brake down, it dosen't matter how many pages are in the JV Agreement, or what the words say to prove that you are "RIGHT," ... as far as YOUR Brother-in-Law is concerned, you are a 'expletive deleted.'
Just thought I'd get that out of the way!! OK?
One more thing ... doing a JV with a rich person, when you are many levels poorer then them, is also not smart.
Why?
Well, in simple terms, when 'push comes to shove' money rules ...
The golden rule says, He who has the GOLD, RULES.
Also, if the rich guy tell you not to bother with a JV Agreement ... he appears to be saving you money ... tempting eh? ... what he's really doing is taking away your legal rights.
Yep, you'll have less rights than an employee. If that's the deal ... better to be an employee!
In my my ebook I emphasise the importance of getting the Structure Work of the business organised - you will build a much better development business from a secure foundation.
When you are doing your interviewing of the associated professionals, try to see if they, personally, have any entrepreneutial tendancies.
They may have land, houses, houses for renovation etc but don't have the 'TIME' or 'SKILLS' to do the work themselves.
Don't come out and ask them straight away ... follow my ebook, do the work you want to do; that is assessing them ... but keep your antenna out for any signs of a common interest.
OK, back to getting hold of some land.
Get to know the local real estate agents; I mean know them well.
Remember what I say in the ebook.
Call in and buy them a cup of coffee, take them out of their work place;
what about dinner after work; really spread yourself around.
Invest your Time in finding good, well informed, dedicated agents. Believe me they are in your business community ... it's your job to find them.
Appreciate that Agents are essentially self-employed, irrespective of whether they work in a Real Estate Agency ... their 'mind set' is independent.
They back themselves and their abilities to provide a sales service at a
level that "consistantly" provides them with a 'good income.
That 'good income' by the way, will leave most of their 'client's' income
looking a little anaemic.
The 'good agents' are busy; their 'time' is money; literally. So don't mess them around.
Don't talk to them as though you are the Aga Kahn! You're Not. There's always a guy richer than you ... maybe the Agent!
Why am I making such a big point about agents.
I believe "people" get the agents "they deserve."
I have heard people talk to Agents as though they were some grubby leech on society and are doing them an honor even to talk to them.
To be a successful agent these days you have to be very good. Many are highly educated and choose real estate as a career for the freedom,
individual reward and great returns.
What comes out of your mouth + body language tells an agent a great deal about you. They then wonder why the Agent never calls then ... Dong!!!
Keep your 'ego' under control. Their sales success rests on their ability at 'reading people.' Remember what I say in my ebook!
When you are in the development business, you are in the business of:
Getting People To Do ... What You Want Them To Do
Within The 'TIME' AND 'Costs'You Set.
That means that you have to be in control of 'How You Treat People.'
Agents know a lot of people ... maybe, they even know those people who want to JV with you.
While you are doing this "work" don't forget to do what my ebook tell you
to do about research.
Last idea for finding JV people - talk to your friends - put an advert in the local newspaper seeking expressions of interest from people interested in doing what you want.
OK, you've found a partner who has the land and you are comfortable with the relationship after several meetings.
Important question! What value does your prospective partner put on his land that will be put into the JV?
Just throwing a few figures around to give you an example.
Let's say that market value for his land right now is $300,000. But he wants to put into the JV at $400,000. So if your JV Agreement involves you gaining a share of the profit, your share will be $100,000 less. Got It?
Now let's say that part of your skills contribution to the JV includes a
rezoning of the land to a higher level and you achieve that for the JV.
That rezoning may take the land from a single unit (house) dwelling zone to a six dwelling unit zone.
Your efforts have increased the land value significantly ... no, not six times, as house properties are valued differently to multiple unit properties. But it may have increased by 3 or more times, depending on your market.
Once again the $100,000 will come off your share. Now that may be OK by you, because you are just starting out on your first development ... it is always better to KNOW what you are agreeing too.
I hope this information helps you in your consideration of entering a JV.
but please remember, don't just read my eBook ... study it ... take notes in a special hard cover Development Copy Book that you will buy.
Writing things down is an aid to learning and remembering.
My LAST DON'T ... Don't start any of this JV stuff until you know my eBook
inside out. You must not just be able to 'talk the talk' - you must know what you are talking about.
What I am all about, is helping you to do residential development with the RISK reduced.
If it takes four years study to get a basic Degree and say another five years to get some experience, why would you think that you can enter the development business with little study -- no experience and expect to be profitable?
"Residential Development Made Easy" is written by Colm Dillon, the 'Real Estate Development Coach' and is the only 'How To Become a Residential Real Estate Developer's eBook on the web; it's selling in 38 Countries, from his experience of developing $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
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