Real Estate Investment Blogs – Top 10 List

14 September, 2010

There are hundreds of investment blogs on the internet, many of which are written by industry insiders. Each of these blogs holds some value, whether educational, inspirational, or just simply informational. The following ten real estate (RE) blogs provide its readers with the highest value so that investors can benefit from the experience and insights of some of the webs top finance and investment bloggers. It is my hope that by exposing readers to these valuable blogs they will become smarter investors.

#10. Matrix – Matrix is written by a successful New York City appraiser. Consequently the blog has a focus on home prices and incorporates many graphs and charts. It is full of information and content.

#9. Bubble Meter – Bubble Meter is a blog dedicated to tracking the decline of the U.S. housing market. It is simple yet insightful and informative.

#8. Urban Digs – Although this blog focuses on the Manhattan RE market, Urban Digs still provides valuable insights and in-depth analysis on the macroeconomic state of the housing market.

#7. Real Estate Economy Watch – Real Estate Economy Watch is maintained by a RE economics and information company. The site provides insight, analysis, and information on the housing market.

#6. Marketwi.se – Marketwise contains daily links to RE related articles and videos. Focused on real estate commentary.

#5. NAI Global – NAI Global provides excellent analysis of the global commercial real estate (CRE) economy.

#4. Bigger Pockets – The Bigger Pockets Blog is a comprehensive resource for RE investing. It is written by a team of real estate professionals that contribute their knowledge on subjects ranging from mortgages and lending to weekly housing market summaries.

#3. Llenrock Blog – If you are looking for a good CRE blog, then you should head over to Llenrock Blog. The blog is maintained by employees of the RE advisory firm of the same name. Readers are informed of the latest CRE news via links and videos along with professional commentary and insights.

#2. The Real Estate Bloggers – The Real Estate Bloggers is a very well maintained blog that is easy to read and contains solid analysis of the RE industry.

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Real Estate Tax Strategies And Forming An LLC

14 September, 2010

The 1st step in doing any real estate investments is to start a business. There are different types of business entities: sole proprietorship, Limited Liability Company (LLC), Series LLC (only in certain states), Limited Liability Partnership (LLP), LLLP, S-Corp, C-Corp. Series LLC can be set up in following states: Delaware, Iowa, Oklahome, Tennesee, Utah, Wisconsin.

Each of them has its advantages and disadvantages. The only true flow through taxation entity and the most beneficial in terms of holding real estate is Limited Liability Company. Limited Liability Company allows you to pay for business related expenses with pre-tax dollars. It is very important to understand that when you get paid and receive your paycheck, your taxes are already deducted and all your expenses whether they are real estate or business related are deducted on AFTER-TAX basis. When you have an LLC, you take all business expenses, deduct them, and pay income tax on what is left over. LLC does not require records and minutes of meetings. Filing paperwork is limited to articles of organization that lists LLC members. Tax Advantages: LLC is a pass through entity and if it is a single member the entity is considered disregarded by IRS. A corporation is subject to double taxation where not only the profits are taxes but also distribution in the form of dividends are taxed as well. The other advantage is flexibility in terms of LLC ownership transfer. LLC ownership is guided by Operating Agreement, which is an internal document. In order to change ownership all that needs to be done is the Operating Agreement and no filings are required besides updates with IRS for given tax ID number. LLC is the only entity that is NOT subject to loss limitation! It also has less filings than an S-Corp and very easy to maintain. If you have multiple properties, have them each in LLC and have one LLC to be your holding company that would own all the other LLCs. For tax purposes your main holding LLC will be a sole member LLC for the other ones and you will need to file only one tax return. In addition to the tax benefits LLC also allows you to have a basic level of asset protection. If your business owns the assets, they are separated from your personal assets and in case of a law suit they can not be touched. Please, note that LLC is a BASIC level of asset protection and if the opposing party has a good attorney there are many ways how your personal assets can become a part of a law suit. It is called piercing corporate veil. For example, you are required to have a separate bank account for an LLC. If your LLC owns your property, then all property relates income and expenses have to come out of that particular bank account. If this is not done, the LLC status can be disqualified and your personal assets become part of the lawsuit. Your LLC must be in good standing with the state and your must have adequate information on your article of organization. The purpose of the business must be clearly stated with no exclusions and you must file amendments when necessary. If you buy real estate, you should say that you buy, hold, rent or lease residential real estate; if you sell, you must state that you buy for the purpose of resale for profit, etc. In some states it is necessary to publish LLC in a local newspaper, and it can get very expensive; in other states like Maryland you need to pay annual fee, which is currently $300 a year. You need to check on your state requirements and guidelines and always be in good standing with the state.

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Real Estate Market Update: Where is the Flood of Foreclosures?

14 September, 2010

One of the many dire predictions done these past few months by many ‘bubbleologists’ out there – that is all those who indulge in the contemplation of real estate bubbles of all sizes and colors, whether real or imaginary, coming our way – was that by now real estate markets everywhere would be inundated and swept away by a tsunami of foreclosures of apocalyptic proportions.

The general rationale among those specializing in the fine art of staring at crystal balls (or perhaps at several empty bottles of rum) was that the steady increase in interest rates, the consequence of a tightening monetary policy implemented by the Fed since mid-2004, would have led by now to a collapse of the adjustable-rate mortgages (ARMs) market, since consumers could not possibly cope with the increased monthly payments. This, in turn, would dramatically increase mortgage defaults and foreclosures, with the end result that real estate markets everywhere would be flooded with excess inventory at deflated prices, thus causing markets to crash – the tsunami I was talking about.

The Mortgage Bankers Association of America (http://www.mbaa.org) does not seem to share this particular vision of the end of the world. In its Economic Outlook update released in May 2006, the Mortgage Bankers Association of America (MBAA) pegs the ARMs share at 27 percent, down from the 36 percent peak of early 2005, an indication that many prudent consumers have locked in already. Likewise, the inventory of mortgages held by banks is virtually unchanged at 1,500 billions (aggregate nominal face value of mortgages, by dollars), the same level of 2005, suggesting that, rather than defaulting, consumers are ‘holding on’. And, finally, the rate of delinquency is at 4.38 percent, down from 4.70 percent in the final quarter of 2005, clearly another measure of consumers financial stamina, and an indication that banks were actually faring worse when real estate markets were doing better.

But that’s not all!

In the Mortgage Finance Forecast released also in May 2006, MBAA highlights that the rate of housing starts nationwide has increased nationwide, up to 2,131,000 units (annualized) for the first quarter of 2006 from 2,059,000 units in the last quarter of 2005 – an increase of 72,000 units representing a robust +3.496 percent overall, although this rate is forecasted to slow down as the softening trend in real estate markets continues throughout the year. Home sales overall are forecasted to decrease by 501,000 units nationwide to 6,574,000 units by December, 2006 from the 7,075,000 of December, 2005. Although this represents an annualized drop in sales of 7.08 percent compared to last year, it can hardly be called a bubble burst!

And here is the most surprising figures of them all – surprising for the bubbleologists, that is. Notwithstanding the increase in interest rates and the toll that many think ARMs will take on defenceless consumers, MBAA forecasts that the average market share of ARMs will remain constant at 27 percent of institutional mortgages for 2006, down only 3% from the 2005 average. The significance of this forecast is twofold: 1) MBAA does not anticipate that interest rates will increase significantly higher for the remainder of the year and 2) MBAA mirrors a Gallup survey conducted in May 2006, which found that only 11 percent of Americans worry about ARMs, down from 20 percent in 2005.

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Gurgaon Property Dealers – Real Estate Consultants

14 September, 2010

The property dealers in Gurgaon service provides the necessary support professionals who need to buy any type of property here. There have been a lot of properties for sale Gurgaon recently, as a major center NCR real estate for North India. To buy, sell or rent any residential or commercial property, get help from a trained professional is highly recommended. This happened in Gurgaon property. They are not only well versed in local housing markets, but also the legal procedures to be followed in any real estate transaction in Gurgaon.

Gurgaon DLF City is a major center for real estate. There are some Gurgaon property dealing exclusively with the properties of DLF. Another specific area for dealers to work is copyrighted by Sushant Lok, a luxury residential colony in Gurgaon. Palam Vihar is also a residential area in Gurgaon. It has recently gained much in terms of net present value of the plots and build houses. The interest generated properties Palam Vihar is being adequately addressed by the dealers property in Palam Vihar.

Gurgaon offers a mix of properties including residential houses built, builder of independent floors, apartments, group housing apartments, lofts and luxury condos and stores in local markets, exhibition halls, retail shopping centers in various, office complexes, industrial sites, warehouses, these factories, etc are for sale, purchase, rent or lease through the local property dealers in Gurgaon. Simply contact a reliable dealer Gurgaon property for list of numbers in any segment of the property you want.

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Owner’s Rep in Real Estate Development – Instrumental in Project Success

14 September, 2010

Steve Bentley is a high net-worth individual living in Los Angeles, CA. He has been making a good living for years running the family business that he inherited from his parents. Although, Steve considers himself to be a savvy investor, putting his earnings away in stocks, bonds, mutual funds, and the like, he feels that he needs to diversify his portfolio a little bit more. When the market went south in 2008, Steve’s returns on his investments did as well. After researching alternative investments, he has decided to get his feet wet in real estate. He knows a couple of people in the business and is aware of the potential returns of a successful development. He identified a parcel of vacant land near his home that he believes would be ideal to build a multi-family project on. Without really looking at any other properties or running any detailed financial projections on the development, he acquires the property.

Once the property acquisition is complete, Steve hires an Architect to design his vision. You see, Steve is under the impression that all he needs to complete this undertaking is an Architect and a General Contractor. The Architect is quick to alert him that there is much more needed for a project of this magnitude. Not only will he need his Architectural Services to design this 42-unit stick-frame condo structure over podium parking, but he will also need a Planning Consultant to get the project entitled through the governmental authorities; a Structural Engineer to design and engineer the structure; a Civil Engineer to design all of the site utilities and earthwork since his parking has to run subterranean; a Geotechnical Engineer to perform tests on the soil which the building foundation will sit; an MEP Engineer to design and engineer the mechanical, electrical, and plumbing systems; an Interior Designer to design the finishes of the residential units and common areas so they are saleable; a Landscape Architect to design the outdoor hardscape and landscape; an Acoustical Consultant to make sure the sound transmissions coming into the condominiums are code compliant; a Waterproofing/Roofing Consultant to make sure the building design does not allow any water infiltration that could potentially lead to future lawsuits; an Elevator Consultant to design the elevator system; a Building Insurance Inspection Consultant because the insurance provider requires them for condominium work; and since this project is in a neighborhood that is trying to lobby for lower density, he even needs a Political / Community Outreach Consultant to deal with opposition of the local Not in My Backyard (“NIMBY”) contingent.

Steve knows that he is not certified to do any of this work on his own and does not want to get sued for a construction defect in 10 years. As such he decides to hire all of these entities but doesn’t know how he can possibly manage all of them. Steve has no experience in construction, let alone design and engineering. Additionally, he has blown through his budget for soft costs, which were essentially busted to begin with. As such, he decides to try and manage all of them on his own. Several months into hiring all of the consultants, as well as a General Contractor, things start to fall apart. The consultants are not producing their deliverables by the deadlines promised, the drawings reflect conflicting information, and Steve cannot even manage to get an appointment to submit the drawings into plan check with the city. The contractor forgot to submit his insurance certificate before mobilizing onsite and one of their workers was injured when performing structural excavation, city inspectors have already written several correction notices due to unsafe conditions, the contractor’s hard costs are getting carried away, not to mention they are submitting numerous change orders because there were so many holes in Steve’s contract with them. Everything is a huge mess and Steve needs help fast. It is now apparent that he needs an outside consultant to rectify these issues and manage the project on his behalf. In hindsight, he should have brought someone on board, possibly even before he submitted his offer on the property.

How to Get Real Estate Referrals

14 September, 2010

What would it be like for you if every time you listed a property, the seller gave you a list of the names, addresses and phone numbers of the 20 people they know, like, and trust the most? Pretty amazing, huh? This ideal scenario is more attainable than you might think. You just have to know the magic words that encourage sellers to share their valuable information. Try the following dialogue to encourage your sellers to gladly give you their list of most trusted friends and family.

Step One: Asking

Now that you’ve chosen me to market your home, you want me to use every possible marketing

vehicle I can, don’t you? Here’s a unique, advanced marketing method that can help you quickly find a great buyer

for the house, and because you want me to quickly find you a qualified buyer, you may be very interested in doing this and you may not. Experience shows that sellers who’ve used this method have been very pleased with the outcome. Let me explain it to you and then you tell me if you want to use this more advanced marketing method to assist you in getting your home sold. The NAR – National Association of REALTORS – has discovered through research that 11% of all homes are sold through direct and indirect referrals. What that means is, when someone finds out that your home is for sale, they tell another person who’s interested in living in your neighborhood about your home. And it also might happen that someone drives by, sees your sign, and tells a brother or sister or cousin or friend at work about your home. Then that person contacts me or their agent and 11% of the time, that’s how your home gets sold. So what I would like to do is unleash our full, 100% marketing effort to get your home sold using both my direct and indirect marketing strategies.

Here’s how it works.

In your life you know several hundred people. Now imagine that you are planning a wedding and you’re thinking of the close friends, family members, and business colleagues you want to invite. What I’d like you to do is give me a list of just 20 of those people. This list can include your close neighbors, family members and friends. When we have that list, we’ll send them a letter to let them know you’re moving because they may know someone who might know someone, who in turn might know someone interested in buying your home. That’s why I call this my “indirect marketing strategy.”

I’ll write the letter as if it’s coming from you, put a feature sheet inside, pay for the postage and do the whole mailing to the 20 people on your list. A few days after I mail the letter, I’ll make a follow-up telephone call to each person and invite them to a special Open House at your home. I’ll take care of all the details, including light refreshments, and I’ll encourage them to bring along anyone they think might be interested in seeing your home. The good thing about this is, we are now doing everything we can to expose your house to the greatest number of people who would be most likely to either refer others or buy it themselves. So, let’s give this a try. What date would be good for us to hold a special Open House?

Now imagine walking out the door of the seller’s home with a list of 20 or more names, addresses and telephone numbers of people they like, know and trust.

Step Two: Implementation

After you have their list, you’ll need to craft and send a letter followed by a telephone call to each person. Remember to treat their list with the reverence and respect your client expects from you. Compose the letter as if it is coming from the seller. Here’s a tested and proven sample letter you can use. Adjust the names, dates and details to match your situation.

Has the Bubble Burst on Real Estate Prices in Orlando?

14 September, 2010

I believe we are not at the bottom of real estate prices in the metro Orlando real estate market. There are two many foreclosures that have to suppress the market. The tax credit gave excess demand right before the summer months and then we dropped in sales the most ever in a single month.

Here are some of my opinions on the Orlando home buying market:

If you are a cash buyer, stay on the sidelines with your money for a few more months.

If you are getting a mortgage, then run to your realtor and mortgage broker and get approved as fast as you can. One of my clients with average credit just got approved for a 30 year loan at 4.2%.

Prices in downtown neighborhoods like College Park and Delaney Park will not go down as much and will rebound even faster when the market stabilizes.

The math of this whole market drop is simple. When buyer A buys a house on Avalon Park Blvd, then buyer B wants an even better deal. A bank that has an reo listing on Avalon Park Blvd will then list the home at 98% of the previous sales price. Then buyer b comes along and offers 96% of the listing price. The bank accepts and we now have a new low. Then buyer C comes along and he wants to get an even better deal and Bank C will give grant him his wish to get it off their books as fast as possible.

This process is just in reverse of the boom times. Only now banks are in charge, not homeowners when it comes to setting prices.

3 Occasions When Real Estate Laws Matter The Most

14 September, 2010

Before we go into the details of occasions when one really should know the important and basics of real estate laws, let us introduce you to what these laws entail.

Real estate laws are the legal statements which specify certain terms, conditions, scenarios and obligations which individuals and organizations should follow while making any dealings regarding land and buildings of any kind including apartments, homes, cultivating land or farms. They should be followed in sale and purchase and activities involving rent and lease of any property. These laws are made to protect both parties involved in any such agreement.

The five occasions when one needs to know the basics of real estate laws are: buying or selling some property, entering into a property lease agreement, entering into a mortgage agreement, home closures and foreclosures and entering into a tenant-landlord agreement. All these occasions are important as they involve a great deal of mental and financial investment. You should, therefore, pay enough attention to even the minutest of all details before entering into any such deal and making any decision. We will discuss three of the above mentioned cases when knowing these laws will help you in a number of ways.

The first and foremost time when you should know what your rights and duties as a seller or buyer are according to law, is when you sell or purchase some property. These laws tell you what you should do before making the transaction in order to stay free of tension and any future litigation. Most of the real estate laws direct both buyer and seller to go for proper documentation of each and every step so that things may be presented as evidence in case any dispute arises in near or far future. Both the buyer and seller have to add every term and condition of the exchange to make the process go smooth. A precaution at this stage is to avoid using your own wit at such a spot and to take help of an expert. Involvement of a technical hand can save you from scams and provides much better legal protection.

When you are going to enter into a lease contract, the need to know real estate laws arises when you are to decide and document the conditions which will terminate the contract, transfer of property provisions and the use of property. Having known what you can do and what you need not to do to avoid lawsuits or unfair claims on your property will help you as long as you are involved in the agreement.

Mexico Real Estate – Favorite Choice for US Investors

14 September, 2010

Mexico Real Estate too was hit by the real estate bubble but it took proactive steps and remerged from the recession very admirably. This is borne by the fact that Mexico properties industry is posting impressive growth numbers and demand is increasing all the time. The prices though still less then pre-recession time are rising steadily. This means that anybody buying Real Estate in Mexico right now stands a better chance of great return on investment in immediate future.

Take the case of Playa del Carmen which apart from been a tourist magnet, has also one of the highest growth rates in Latin America. Over the last few years, it has retained the confidence of many real estate investors who invested in numerous world class property developments in Playa del Carmen. The success of Playa del Carmen and Mexico can also be attributed in no small way to the foresighted government in Mexico which stressed on developing world class infrastructure even when recession was in its height.

Infrastructure is developing at a furious rate. A new airport on papers and a new runway for Cancun airport have made this region even more accessible. The authorities have also adopted a green model for all current and future developments which emphasizes on sustainability.

Mexico is fast emerging as the place to reside in. Attracted by its climate, natural beauty, excellent health care, world class amenities and luxury housing options, many Americans, Canadians and Europeans are making Mexico their new home. Mexico is no longer just a place to invest in but also a place to live in. Any investors can foresee a future boom in expat population in Mexico which will only make property prices go up.

Real Estate Investment Vs Stock Market Investment

14 September, 2010

Stock market and real estate, both are investment options available to choose from. Each has advantages and disadvantages associated with them.

One can choose an investment wisely in both or either for sizeable returns. Comparison of various attributes in both is discussed below:

Average return: Assessment made from the year 1978 to the year 2006 showed a 13.4 percent growth in stock markets and 8.6 percent in real estate. The stocks performed better in the growing market. The growth in real estate was consistent but slow and hence a lesser rise in its profits.

Working of investment: In stock market, the profit earned is directly dependent on the performance of the firm or company. Better the performance, higher the returns. If the economy performs well, the returns accrued will also be much higher.

In real estate, the profits get appreciated on a slow but progressive pace since the value of real estate always appreciates over a period of time. For steady returns, one can opt for renting or leasing the property. On a longer time span, one can purchase property when the prices are negotiable, and sell the same when the value appreciates.

Advantages: Some of the pluses of stock market are: stocks are easy to buy/sell, have good liquidity and flexibility. If the company’s performance is accompanied by well performing economy, the rate of the returns from stocks will be higher.