October 27, 2010
How To Sell Orlando Real Estate In A Difficult Market
As far as markets go, Orlando real estate is doing better than most. According to Attorneys’ Title Insurance Fund, by far the leader in Florida, Orlando remains an attractive market due the many diverse growth industries in the area. Orlando also continues to rank high as a desirable place to live. We’re #6 in the 2007 Harris poll of cities nationwide where people would most like to move to.
This means that if you’re a seller in Orlando, things could be worse. Sure, prices are down and the Orlando MLS has a lot of homes for sale, but Orlando has so much going for it that new buyers continue to be drawn to the area. This means that buyers have a good shot at a sale IF they play their cards right. Here are my recommendations on how you can improve your chances.
First, in tough times you need all the help you can get, which in this instance means a good agent who knows the neighborhood and has all the right connections. I cannot overemphasize the importance of working with a local broker who knows your property, has all the local listings, and is intimately familiar with the selling points (and pitfalls) of your area.
Second, work with a design consultant. Everyone think their home is perfect, but it takes the experienced eye of a professionally trained outsider to tell you how your home best be presented for sale. You’ll likely be asked to remove a lot of clutter, do a lot of cosmetic updates, and perhaps replace some fixtures and lighting to give the home a fresh, contemporary look. This can be taxing, especially if you’re asked to replace carpeting, windows or other costly items, but it’s worth it. Take my word for it.
Third, real estate sells by appealing to a buyer’s imagination, not by showing him or her how you lived in your home. So remove personal items such as personal photos, trophies, collections and all the other clutter that accumulates. The home should look clean, elegant and inviting. Let the buyer imagine what he or she will do with the home.
Fourth, vacate the premises when a realty firm is showing your property to a prospective buyer. Sure, it’s a bit inconvenient, but a buyer will really much rather look around than listen to a seller’s stories or (often ill-conceived) sales pitch. You are not part of their search, so leave the selling to the professionals. Whenever someone arrives for a showing, just say you’re on your way out, and then stay away until they are done.
Fifth, keep your home immaculate! That’s easier said than done when it takes weeks or months to sell, but it must be done. So immediately clean up after every meal, put all dishes away, almost have the beds made, and never leave a mess. Hey, you’ll probably get used to it and keeping a neat house will become second nature!
Sixth, be reasonable. Work with your broker, be cooperative, and do not hang on to unrealistic expectations. A good broker is on your side, and that is what you need in tough selling climates.
Follow these rules, and you’ll make out just fine in the fairly strong Orlando real estate market.
October 20, 2010
Since the Crown Prince of Dubai made changes to his countrys constitution back in 2002 to allow for the foreign freehold ownership of real estate in Dubai, the real estate market in the emirate has gone crazy!
Because there are no such things as taxes payable on income or property transactions in Dubai, and because the popularity of the emirate with hundreds of multinational corporations has created thousands of jobs in Dubai, everyone wants a piece of the property market.
But because demand is so intense and property prices have been shooting sky high, how is it still possible to profit from real estate in Dubai?
Well, youve got to know the market to know which developments are in demand from which people, and which people are willing and able to pay top pound for rental and resale property in Dubai then you just have to target your property purchase to meet the requirements of your market!
Simple!
First things first its important to know that those buying apartments off-plan in Dubai right now will have to wait for up to three years to see their properties completed. This means that those who have jobs in Dubai and want to relocate to the emirate right now will have to find completed accommodation to rent out.
The demand for completed apartments close to Dubais main employment sectors such as Dubai Media City is so intense that annual rental rate increases have been capped by the government who were afraid the increasing prices being demanded would create an unaffordable market place.
Anyone with the funds and the contacts should buy completed apartments in Dubai to let out for the short to medium term. When the majority of projects currently under construction come to completion within the next three years however, there will be a surfeit of apartment accommodation in Dubai which will restrict property price and rental price increases naturally.
Those looking for a longer term real estate investment opportunity in Dubai and wishing to get ahead of the curve should be looking at family villa accommodation. Almost as in demand currently as completed apartments are family villas but far fewer of these are being constructed and far more of these will likely be required over the longer term. Furthermore with the creation of Dubailand well underway, villas to rent close to the main attractions of Dubailand for visitors to the theme park will quite possibly become as in demand as Florida villas.
All in all the popularity of Dubais real estate sector is as intense as ever, but an investor nowadays has to be a little more astute than before if he is to continue profiting for the long term.
October 13, 2010
Wholesaling in real estate is an entire business in itself and generates super-fast profits, usually without ever acquiring the title on the property. It’s not uncommon to pick up a check at closing, with the seller and buyer present at the same time. Many times I have earned thousands of pounds within two or three days of finding a deal. Successful people in the wholesale business are accomplished at locating good deals and marketing them – primarily to people who are in the rehabbing and retailing business. The first purchaser is willing to take a smaller, fast profit and leave the larger profit to an investor with the time and money to buy, repair, and sit on the house until it’s sold.
Some people are making a good income by buying and then reselling immediately only once or twice a month. These deals require no money, no credit, and no bosses. Believe me, if you locate a deal, someone is waiting to buy it from you.
Finding bargains for bargain hunters is the easiest and quickest way I know to pick up a check for at least 5000. The whole process shouldn’t take more than 15 to 20 days from the beginning to the end. Following are some tips for wholesaling:
1. Don’t pay too much. Remember, you’re selling to bargain hunters. Leave them plenty of room to make a profit or you won’t find a buyer. That means they should net at least 20 percent of the sales price after all expenses.
2. Your only exit is to sell for all cash quickly. Make sure your buyers can get the cash and aren’t relying on bank financing. Don’t allow buyers to learn banks won’t finance junkers at your expense. If a buyer can’t close in 15 days or less, find another buyer.
3. Use an assignment of contract and let your closing agent collect your fee.
There’s really not that much to learn about wholesaling. It’s an easy real estate business. Many people are doing one to ten deals a month and netting a decent earning. Some make more on one wholesale deal than most people make in a year on their job.
October 6, 2010
How to profit from real estate by rehabbing and retailing
Buying houses low and selling them high is called retailing. This is the most easily understood method of investing in real estate. It’s the art of buying at a low price, often doing some repairs, and then selling at retail price and usually cashing out. A lot of money is made through this method. Some people do it part-time, turning 2 or 3 houses a year, and make more money at it than they make on their regular jobs. Others do it full-time and turn 40 to 80 houses a year with an average profit from 20,000 to 35,000 per deal.
Rehabbing and retailing houses is very profitable, but it is’s also the hardest way to make money in real estate and is layered with costly entanglements. A lot of satisfaction comes from rehabbing. Following is a list of tips for rehabbing and retailing:
1. Buy in areas where qualified buyers want to live.
2. Never close your purchase without confirming your assumptions, that is, after repaired value and repair estimates. Do your due diligence and get the purchase appraised as completed; buy title insurance; have a termite inspection; get repair estimates from qualified contractors; and get estimates to fix any other traps you can avoid.
3. Always borrow more than you need to buy and repair. The job will always cost more, take longer, and yield less profit than you expect. You better have a cash reserve.
4. Keep a tight leash on contractors. They’ll play you like a yo-yo, which can – and probably will – be one of your biggest learning experiences in The School of Hard Knocks. But hey, don’t worry; I graduated from that same school top of my class, and I survived.
5. Don’t tie up your cash. Tying it up is a good way to become a motivated seller. The greater your need to sell, the longer it will take.
6. Do a nice renovation job. It’ll pay handsome dividends in saved holding costs and in satisfied customers who’ll send you more buyers.
7. Find a good loan processor or mortgage broker to get your buyers financed. It’s the difference between success and failure. This person has your paycheck in his or her control,, so make sure the person you find knows his or her business and follows up.
8. Master the art of selling houses as fast as humanly possible. Slow selling is the biggest weakness for most yet one of the easiest to fix. If you sell houses the way most untrained investors do, it’ll be a while before you get paid.
9. Never do your own repairs. If you do, you’re working as a laborer, not an investor. You make money by locating and buying good deals, not swinging a paint brush. If you adhere to tip 3, it won’t be a problem; you’ll have the money. Some people tell me fixing houses is their therapy. I say if you lay hands on a house, you need therapy.
10. Get trained at this craft of quick turning real estate before you have to pay an ugly price for your education. Education is a lot cheaper than ignorance.