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How To Invest In Real Estate Without Blowing Your Budget

real estate investing

Real estate investors have access to a range of ways to get and seal deals on a shoestring budget. If you are looking to get into real estate, here are a few incredible ways to find deals and partner with people who can help you begin without blowing up your bank account.

 

Driving for Dollars

You need to keep your eyes open the next time you’re walking down the street to see properties that are for sale. You can be lucky to find a deal with a property owner instead of transacting with a realtor. A building may not be open for sale today, but the owner might decide to sell it a few weeks later, so make a note of any property you come across. They can be buildings that look like are in need of repair or have bushes and trash in the yard. You can reach the owner of these properties either by checking their contacts with the local municipality or knocking on their front door. The local authority can use their address and tax bill to help you reach them. Either way, contact them and ask if they have an interest in disposing of their property or are aware of someone that may sell their home. Don’t worry if they are annoyed, it’s just a question.

 

Expired MLS Listings

Real estate investors need to incorporate creativity in their approach to getting started even on a limited budget. You no longer have to spend millions of dollars on an extensive direct mail campaign as there are many other ways to find financiers. Finding an expired listing is one of the ways that allows realtors to invest in properties that have been on sale for a long time. Sellers can list their homes with a realtor for a specific period, but if they don’t sell quickly enough, the listing expires and requires a re-listing. You usually have a better chance of the homeowner accepting a lower offer on an expired listing.

 

Private Money Lenders

Nearly everyone knows an investor who has an interest in the real estate world, and all is needed is to pursue them. These lenders can be a co-worker, relative, or friend that wants to venture into real estate. You can scout out several deals and ask your private money lender to back them with finances. It is a win-win situation since you don’t need any money to get started, and your partner doesn’t have to invest their effort in finding deals. You can get started by emailing everyone you know might be interested in investing in real estate. You’re likely to get a handful of responses if you send emails to at least 40 potential investors.

 

Hard Money Lenders

You don’t need to have the capital to venture into real estate business. You can find a hard money lender and ask if you could partner in a real estate deal. A hard money lender can be an individual or financial institution that lends money in its terms. Hard money lenders don’t follow traditional lending guidelines regarding down payments, assets, and credit score. Each hard money lender has unique conditions, and over time their number has risen significantly. Investors supply their deals, and hard money lenders provide the funds for the transaction. Your credit score improves the more you transact with a lender. You can ask a mortgage broker, real estate agent, accountant, or attorney to connect you to a hard money lender.

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Top Three Tips for New Real Estate Investors

A brief look into any guide about investing with reveal that real estate investing is one of the hottest ways to make money. It’s easy to see why. Not only does real estate give you a valuable asset that you can make even more valuable, but you can also receive lifelong returns by renting out to tenants. While real estate investing tends to be more stable than some other investing techniques, there is still a lot to know before you start.

 

Understand the Market

The very first thing you have to do is understand the market. The keystone of real estate investing is understanding what property to get, when you’re getting a good deal and knowing how to properly use that real estate for the best returns. It might seem tempting to get the first affordable house that you can find, but this type of thinking can lead to massive problems.

 

What if the house is in an undesirable area, like with high crime or few amenities? Another problem might be that the house is in disrepair or that the neighbors are awful. Investing in your local area tends to be the best because you know the area and you have a good idea of what real estate is and isn’t good. If you are thinking of going outside your area, then be sure to understand the local economy, businesses, crime rates and other factors to ensure that you are actually getting a good deal.

 

It’s good to have some negotiations training as well to ensure you get the best price on whatever real estate that you find.

 

Limited Funds

Almost every new real estate investor has limited funds, which makes it difficult to enter this investing arena. While you certainly are limited in what properties that you can purchase, there are still a few ways to make a sizable profit with some smart purchases.

 

One of the most popular methods is doing a live-in flip. Flipping a home is a process where you buy a property, improve it with better appliances, new carpeting, fresh paint and so on and then sell it at a higher price. A live-in flip means that you live at the property as you improve it. This will reduce your overall costs as you won’t have to pay for your own home or apartment.

 

Another method is to buy a property for about $35,000 to $55,000. A low-value property may not seem very attractive, but you can make a good amount of money from it. Hand the property to a property management team so that they can take care of finding and managing tenants. If all goes well, then you can expect to get about a 10 percent return on your investment every year.

 

Remember Taxes

Many new real estate investors get caught up in the excitement of finding a new property or bogged down in the details of paperwork and negotiating. It’s hard to know what you should really be paying attention to because everything is new and different. While it will take time to learn the ropes, you have to remember good bookkeeping practices as you go about buying and renting properties.

 

You don’t want to be unprepared for tax season. At best, this will make the process difficult as you try to gather all of your papers and numbers. At worst, you’ll be audited for either forgetting to report something or reporting the wrong amount. Make sure all of your tax documents are organized and easy to access when tax season comes around.

 

Conclusion

Real estate investing is a somewhat difficult arena to enter initially because you are dealing with large sums of money, but it does get easier with time. Remember these three tips as you start your investing journey. Understand the market and your area so that you get the best deals, consider using an investing method with limited funds in mind and don’t forget good bookkeeping practices.

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Is Relocating Worth the Pay Raise?

If you have recently been offered a job in another city with a higher pay rate, you might be thinking about taking the plunge. Before you pack up and relocate, however, you probably want to make sure that you are making the right decision. There are more factors to consider than money, and even if the new job offers more money, it might not be worth packing up your entire life and moving somewhere else. Then again, all the other factors may line up perfectly, making a new position the perfect opportunity to start fresh in a new place. Below, we have gathered several factors to consider before you decide to relocating for a different job. Then, you can ensure that you make a decision that you will be happy with.

Are You Excited About the New Position?

First of all, you should consider what the new job will entail, should you decide to take it. Will your work at the new job be similar to what you do right now? Is the workload at the new position something you are more excited about or something that you dread? Will you have a lot more responsibilities? Will you have more room to grow? Pay isn’t everything when it comes to choosing a good job, even without a move attached, so along with thinking about the money, you should also think about whether or not you think you’ll be happy in the new position.

How Does Your Family Feel About the Idea?

Unless you’re single and live alone, you’re not the only one this move will directly impact, so it’s a good idea to find out what your family thinks about the situation. If your spouse has a good career in your current city and won’t be able to easily find a new job after the move, this could be a point of concern. You should also consider how your children feel about relocating and whether or not there will be good schools available for them if you do choose to move.

Will You Be Moving Away from Extended Family?

If you currently live close to your extended family, you should think about how you and your family members will be affected if you do choose to move. Will you be leaving a vital support system? Are you currently an important part of someone else’s support system? On the other hand, your new job might be closer to your extended family members than you are right now, allowing you to forge stronger relationships as you move into closer proximity.

What will the actual move cost you?

Depending on where you’re moving and the size of your collection of belongings, moving can be a significant expense. It’s easy to let that expense grow to the point where it can absorb any pay raise you receive for months to come. Fortunately, if you’re careful and plan properly, you can mitigate these costs. If you will have some time between accepting the job and your official start date, take some time to shop for a reliable moving company that won’t overcharge you.

Even if you do plan ahead, however, long-distance moves can still be costly. You should weigh all your factors together. In some cases, it might be worth it to forego professional moving help, but other circumstances might make hiring a moving company the best decision you could make. If you’re trying to transport an entire house’s worth of belongings from New York to San Antonio movers could simplify the entire process. Take a close look at your specific circumstances as you make your decision.

What is the Cost of Living Like?

Sometimes, the pay is higher in another city because the cost of living is higher as well. If this is the case, you might not be getting as much of a raise as you think; in fact, you might find that your money doesn’t go as far as it does now, even with the higher salary. On the other hand, there is also the chance that the cost of living could be lower, which could help you stretch your higher pay even further.

What are the Housing Options Like?

If you do choose to make the move, you are obviously going to need to find somewhere to live. This can be easier in some places than others. Make sure that you do your research about good, safe neighborhoods and about the rental or buying market in general. Then, you’ll know what to expect in regards to finding a home if you do choose to move.

What Do You Think About the Area?

In some cases, moving to another city for a job can be a big shock to the system. If you are used to living in a bustling city, for example, you might not be very happy about moving to a small town in the Midwest, or vice versa. However, you might find that making a move for a job will allow you to experience something exciting, such as finally moving to a bigger city or being able to live on the coast, near the ocean. Visiting the area where you are thinking about moving can give you a better idea of what to expect and whether or not you think you will be happy living there.

Relocating so that you can secure another job at a higher pay rate can be an exciting proposition. However, before you make your move, you’ll want to make sure that you are making the right decision. Don’t just jump at the first job offer you receive with a higher paycheck than you are currently making. Take some time to consider the opportunity from all sides, then make an informed decision.

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Factors to Weigh Before Buying a Backyard Pool

If you have been seeing advertisements for pool companies or if you have just been thinking about how nice it would be to be able to take a quick dip on a hot summer day, you might be thinking about investing in a pool for your home. This can be a wonderful decision for you and your family, but it is a big decision that should not be taken lightly. Luckily, if you consider these things before making the jump, you can help ensure that you are fully aware of what you are getting yourself into. Then, you’ll know for sure that you are making the right decision when having a pool installed.

 

Cost

First of all, you have to think about how much money you can afford to spend on a swimming pool. Luckily, there are various types, styles and sizes of swimming pools, and you can choose anything from a simple and affordable above-ground pool to a large, custom-designed in-ground pool, depending on your preferences and how much you can afford to spend. Before you decide to invest in a pool, make sure that you sit down and create a budget so that you can determine how much you can afford to spend. Then, you can avoid accidentally spending too much when you get excited about various upgrades.

 

Also, when calculating the cost of a swimming pool, make sure that you think about the costs that go along with it on top of the installation. For example, you have to pay to have it filled up, and you can expect increased energy costs each month for running the pump and other related components. Additionally, you will need to buy cleaning supplies and pool chemicals in order to maintain your pool throughout the season and year. Doing your research beforehand can help you determine how much you’ll have to spend in order to keep up a pool.

 

Maintenance

Not only do you have to think about the cost of maintenance for a swimming pool, but you also have to think about the physical work and time that can go along with it. Once you have a pool, you won’t be able to just jump in any time that you want to. Instead, you’ll have to be prepared to handle maintenance, such as vacuuming it out and using a net to fish out any debris. It also takes time to check and balance out the chemicals. Once you get the hang of these things, it will get easier. However, you should still be aware that it is a time commitment.

 

Frequency of Use

Before you buy a pool, you will probably want to think about how often you will actually use it. If you have a whole family living at home and if all of your family members are interested in the idea of a pool, then you will probably get a lot of use out of it. If you are single and spend a lot of time traveling, however, you might find that it won’t be worth the investment since it won’t get much use at all.

 

Safety

A swimming pool can be a lot of fun, but it can also be very dangerous. If you have small children in the house, you may want to take steps to make the pool area even safer, or you may choose to wait for a few years before making the investment. Even if you don’t have kids, it will be important for you to hang up signs, put up a fence and otherwise make the pool area as safe as possible. A quick search for “best pool builders near me” yielded plenty of suggestions for companies that know what they’re doing in that realm. Even if you can’t find a local company, you can consult with pool builders in Las Vegas or Arizona on safety. Many hot-weather areas where residential pools are popular have stringent laws for pool safety and fencing requirements.

 

Having a pool in your backyard can be a wonderful thing. However, before you make this major investment and this major change to your property, it’s important to think about a few things. As long as you do so, you can help ensure that you are making a smart, well-informed decision that will be right for you and your family.

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