RENTING A HOME VS. BUYING A HOME

Some of you will remember the quote from a Shakespeare play where we hear: “To be or not to be; that is the question”. One important question for those looking for homes in today’s real estate market is whether to buy a home or rent a home. Here a few things to consider as you consider that question:

HOW LONG WILL YOU WILL BE IN THE HOME?- As many people have said, today is a great time to buy a home. Home values are down, home supply is high, and mortgage rates are low. While all of that seems to be a great reason to buy a home, it might not be best for you. If you are anticipating moving to a new community or you are thinking about “upgrading” to a bigger home in just a couple of years, it might be best to continue to rent a home. It will take a couple of years to “earn back” your home closing costs. Since no one how long this buyers market will continue, it might be that you cannot sell your home if you are only waiting a couple of years before you will wanting to sell again.

DO YOU ENJOY MAINTAINING A HOME OR YARD?- When you rent a home or apartment, a landlord will see that the property is maintained. They may also maintain the yard. If you do not enjoy yard work or your work schedule is such that you do not have the time, it might be best for you to rent a home. One alternative if you do want to buy would be to live in a townhouse and/or condo where someone else maintains the yard.

OWNING YOUR OWN PLACE VS. HELPING BUY SOMEONE ELSE’S PLACE- Is owning a home important to you whatever might be the reason? Do you mind that a landlord is buying a house with your money? Does that matter to you?
Best wishes in your decision.-- Randy Wall, Lora Lee Properties

INEXPENSIVE TASKS THAT CAN SELL YOUR HOME

It is a buyer’s market in real estate right now. Home sellers are competing with foreclosures, short sales, and the like in selling their home these days. In this competitive market, home sellers need to do all they can to give themselves an edge in selling their home.
Here are a few inexpensive things that you can do before you put your home on the market to make it stand now and really shine:

LANDSCAPING- Make sure that your home has good curb appeal by making sure that you keep the lawn mowed, trim shrubbery, and plant flowers. Remove any unsightly items such as old furniture and trash. These tasks will costs you only a few hundred dollars and they will make your home look appealing.

PAINT THE INTERIOR AND/OR EXTERIOR- Interior or exterior painting is one of the most inexpensive things that you can do to make your home stand out. You can buy many paints for under $25 a gallon, and most people can paint (though not all people like to paint). Be sure to fill any interior wall blemishes and nail holes before you paint. Paint can also neutralize any odors in your house. Be cautious about your selection of paint colors. A more neutral color works best as it makes the interior of the house look brighter.

CLEAN THE CARPET OR FLOORS- If you have carpet, you will definitely want to clean the carpet before you show it to prospective home buyers. A good cleaning of your carpet will remove many odors and stains. You can rent carpet cleaning equipment from local grocery stores, but I have found it a better investment to let a professional clean your carpet. The carpet in most homes can be cleaned for only a few hundred dollars.

CHANGE LIGHT BULBS OR LIGHT FIXTURES- To make your home look as bright and cheerful as possible, consider putting up some new light fixtures. You can buy a light fixture many times for less than $75. If you do not have the time and know-how to do this yourself, consider putting in a higher wattage of light bulbs. This will make your home look brighter.

DE-CLUTTER YOUR HOME- Most people (myself included) have too much stuff in their home. I know that I am bordering on hurting feelings, but remember that home buyers are coming not to see your collection of trolls or pictures of the children. No, they are coming to see how your house can become their new home. Consider storing some furniture and the like that may distract them from seeing the fine house you have to sell.

The combined cost of all these tasks can be less than one thousand dollars. Though that is not pocket change, these tasks can pay big dividends in getting your house sold. Best wishes.- Randy Wall, Lora Lee Properties

Go Team

I wrote a few weeks ago about persons that you will want to have on “your team” if you are buying or selling real estate whether you are a homeowner or investor. I spoke about the importance of having an attorney, realtor, and contractor on your team. Their skill and expertise are critical.

Though an attorney, realtor, and contractor are important team members, there are also some other team members you need as follows:

HOME INSPECTOR- Whether you are a buyer or seller, have a licensed home inspector on your team. A home inspector examines thoroughly the house and looks far beyond the carpet, paint, and the number of rooms. They provide an objective viewpoint about the condition of the roof, HVAC system, and the like. Why most people think of using home inspectors before buying a house, they also can a good friend to home sellers . A home inspection report can give persons interested in your home piece of mind about what they are buying.

APPRAISER- Most people only think of appraisals when they are buying a house and/or financing it. An appraisal gives an objective view of what a property is worth right now based on the recent sales and the characteristics of the property. No one should want an appraiser to tell them what they want to hear, but what they need to hear. Like a home inspection report, an appraisal can help persons selling their home to “price it right”.

INSURANCE AGENT- You will also want a good working relationship with an insurance agent. If you an investor or landlord, you will want to make sure that you have insurance not just on your property but liability insurance against yourself.

ACCOUNTANT- Perhaps it important that I offer full disclosure that my wife is an accountant. An accountant is an important member of your team not just for counting income and expenses, but for helping you understand the tax consequences of buying and selling property.

If you are looking for members of your team, solicit recommendations from other homeowners or real estate investors. Feel free to interview the prospective team members and ask questions. Good luck in your search. Go team.- Randy Wall, Lora Lee Properties

Ways to Get the Home You Want

All of like to win, whether we are talking about sports of getting the home you want. Here are 12 workable ways to get your home offers accepted. They are as follows:

1. Make your offer as “clean” as possible. Don’t ask the seller to pay for your home warranty, and the homeowner’s association’s transfer fees, and your lender’s fees, etc.
2. Don’t ask the seller for any personal property they have not disclosed is being sold (refrigerator, washer, dryer, etc.)
3. A typical earnest deposit is 1% of the purchase price. Give the seller more than this to show you’re financially strong and serious about buying the home.
4. If you can afford to do this, offer to pay cash and provide proof of the funds you’ll use.
5. If you feel confident in the price you’re offering, waive the appraisal contingency. This will mean, if the home appraises for less than the purchase price, you’ll make up the difference in cash.
6. Add an “escalation clause” to your offer that outbids any other offer up to a given price. For example, “Buyer will pay $500.00 over any offer up to $200,000.” Your agent should check with his/her broker for a recommendation on the specific language to use before doing this and then require a copy of the next highest offer the seller received.
7. Offer to forfeit your earnest money to the seller if you cancel the purchase contract after the inspection period.
8. Make a larger down payment than what is required for your loan program. For example, put 5% down on your FHA loan, rather than the minimum requirement of 3.5%. Again, this shows the seller that you are financially strong, but more importantly, by making a larger down payment, you’ll finance less, and save more money over the long term.
9. Offer to buy the home in as-is condition. Signing an As Is Addendum doesn’t mean you can’t have the home inspected.
10. Agree to get pre-qualified with the listing agent’s preferred lender. This doesn’t mean you have to finance the home with the listing agent’s preferred lender. It will just reassure the sellers that you really are qualified to purchase their home.
11. If your bid on the home isn’t accepted, have your agent ask the listing agent if the seller wants to hold your offer as a back-up offer.
12. Make sure you’ve provided all of the required documents with your initial offer. If a seller receives multiple offers, one of the first things he/she often does is throw out the sloppy and incomplete offers.

Thanks so much. Good luck in your search.- Randy Wall, Lora Lee Properties

HOME SHOPPING 101

Are you in the market for a new home? Perhaps you are down-sizing since the kids are grown or you are up-sizing because your kids have come. Perhaps you are moving to a new area because of a job change or retirement. Today, I want to share a few things for you to keep in mind as you shop for a home. They are as follows:
BUY NOW- Since prices are down from a few years, we will get more home for your money today. Do not delay if you have been thinking of buying a new home. Shop and buy now.
FINANCE NOW- Now is also a great time to finance a home since mortgage rates are at record lows. Though lending requirements might be more stringent than a few years ago, you can generally expect to finance more house and get a lower monthly mortgage payment.
GET PRE-QUALIFIED- Unless you are planning to pay cash for your home purchase, work with a lender to get pre-qualified before shopping for a home. A good mortgage lender will be able to tell you how much home you can reasonably afford. Many realtors and/or homeowners will not even consider an offer to purchase unless you are pre-qualified. It is better to know whether you can get a loan before home shopping than after.
SETTING YOUR HOME PRIORITIES- Before you start looking for a home, it is important to make a list of features for the home you would like to purchase. Do you want to be near schools, shopping, or your church? Do you want to be in a subdivision or out in the country? How many bedrooms, baths, or square feet to you want? How big a yard do you want? Once you have made these decisions, prioritize the features in their importance. Is location of the home more important than the size of the yard? Would you rather have 4 bedrooms or be in a subdivision? Set these priorities and let them guide you and the real estate professional you are working with. Good luck in your search.- Randy Wall, Lora Lee Properties

WHO IS ON YOUR TEAM

You will see here a picture of a basketball team. It seems fitting as the NCAA basketball tournament begins this week. Someone once told me that there is no "I" in the word team. Every person is important on a team whether they throw the ball inbound or lead in rebounds.


I am also told there is an African saying that "It takes a village to raise a child." Parents need all sorts of help raising their children-- mentors, teachers, doctors, etc.
Just as it takes a village to raise a child, it takes a village to be successful in real estate whether you are buying your first home... are a real estate investor... or you are a realtor. You cannot do well in real estate all alone. You are going to need some help. Today I want to share with you some of the persons you need on your team:



ATTORNEY- In my native N.C., you need an attorney to close on the sale or purchase of real estate. You also need an attorney for the advice and counsel. Look carefully for an attorney who has experience in real estate. Ask felow investors, realtors, and friends who have bought and sold property for their ideas.




REALTORS- In these days of lagging sales of houses, many people are trying to make profit in selling their property by selling it themself. Though I would not say this is a totally bad idea, this can be a demanding chore unless you are experienced in real estate. Talk to a realtor and solicit their help. Maybe you can work together. More than likely, they will worth their commission and then some. Look for persons who have experience in the kind of real estate you want to buy or sell (investment properties, single family homes, commercial properties, etc.).




CONTRACTOR- If you are buying a property that needs repairs or the house you are selling needs a face-lift, find a contractor to work with. Ask friends who have had remodelling done, or consult a realtor. Don't be afraid to ask for references, and to get more than one bid for work.
They are some others you need on your team but time does not allow me to speak of home inspectors, appraisers, etc. Feel free to interview them and check them out through licensing boards, better business bureau, etc. Good luck in your search.- Randy Wall, Lora Lee Properties

SHOW ME THE MONEY?

Today, I want to speak about where to find the money for buying real estate and/or fixing up your property getting ready to sell. Though I do hear tales of people buying a home for just a few thousand dollars, those deals are the exception rather than the rule in the Metro Charlotte area. Here are a few strategies to consider to find money for real estate ventures:

TAX REFUND- This time of year, many people are filing their taxes. Your tax refund might be enough monies for you to make a down payment or give earnest money on a deal.

SAVINGS- Consider using your savings for your real estate deals. Since everyone needs savings for unexpected needs, I would caution you to only use this stategy if you are going to use the money for short term deals.

CREDIT CARDS.- You might have a sufficient credit card limit to use cash from credit cards to fund a real estate deal. Again, I caution using this strategy only if you are doing to use the money for the short term.

OPM (OTHER PEOPLE'S MONEY)- Whether it be family or friend, everyone knows someone who has talked about investing in real estate but is not sure how. If you have the know-how on how to buy real estate, consider partnering with someone else who has the money. I would encourage to draw up a agreement on how this would work (e.g. will they share in the profit, will you buy them interest, etc.)

LIFE INSURANCE - If you have life insurance, you could borrow on the cash value of the policy. Check with your life insurance agent for more details about this.

PENSION/ RETIREMENT MONIES- There are some pension and retirement monies you can borrow from to purchase homes. If you have a self directed IRA, you can also use those monies to purchase real estate. Check with your pension or IRA administrator for more information.

HOME EQUITY LINE OF CREDIT- If you own your home, you might use a home equity line to fund your real estate deals. Check with a local banker for more information.

THE SELLER- In these days when property is selling quickly, a motivated seller might even be willing to do owner financing with no money down.

These are a few ideas on where to get money for your real estate deals. Good luck in your search whether you be a buyer or seller- Randy L. Wall, Lora Lee Properties

LOW HANGING FRUIT FOR HOME SELLERS

In my last blog, I spoke about some common, ordinary places and strategies in finding homes to purchase whether you be an investor or a home buyer. I call this "low hanging fruit". Everyone knows it is easier to reach the orange or pear on the tree while your feet are flat on the ground than the orange or pear at the top of the tree.

Here are a few ways easy, simple things you can do to find persons that are interested and eager to buy a home:

SOCIAL MEDIA- A lot of people on sites like Facebook will post information about upcoming moves to new communities, new additions to their family, and marriages. People who are in transition are an excellent source for home purchases particularly if you have a property that is the size or in the location they need to be.

NEWSPAPER- I am not speaking here about posting a classified ad in the newspaper though that might be an option. I am speaking about reading the news with awareness of transitions that are happening in your community or in people's lives. For example, when you read in the business section that a person is going to become the new manager of the local business after being in a faraway city, you are reading about a potential home buyer. When you read that a couple in the community just had twins at the local hospital, you are reading about a potential home buyer who might need a large home. Again, read the news with awareness of potential home buyers.

ROADSIDE SIGNS- Roadside signs at major intersection are a cheap, inexpensive way to tell the world about your property for sale. The signs cost less than $5 a piece. Some people find it more appealing when they are handwritten. Be alert to any local ordinances against such signs in your community.

BULLETIN BOARDS- Make a flyer about your home for sale and post it on free community boards in places like laundrymats, grocery stores, and restaurants.

REALTORS- If you own a home, don't discount realtors as a resource to sell your own. They can help you get some idea about recent sales for comparable homes in your neighborhood. If you have your home priced low enough, the realtor might be willing to list the home and tack on their commisson fees above the purchase price. A realtor can certainly save you a lot of legwork.

F.R.A.N.- F.R.A.N. stands for friends, relatives, acquaintances, and neighbors. Spread the word about your home for sale through your networks. Your F.R.A.N. might know someone looking to buy through their work, friendships, or the like. You might want to even consider offering them cash or a gift card for their help.

These are a few ideas about where to find low hanging fruit as a home seller. The places to find prospective home buyers are limited only by our creativity. Good luck.- Randy Wall

LOW HANGING FRUIT FOR HOME BUYERS

Have you ever heard anyone talk about low hanging fruit? That is a phrase that refers to something that is easier to retrieve or get. As most of us know, it is certainly easier to get the pretty apple or peach that you can pick on the lower limbs of the tree than the fruit on the upper branches. Today, I want to speak about low hanging fruit for buyers and sellers of real estate. Obviously, it is not as easy to buy or sell a house than to pick an apple. However, these are some ways in my experience that are easier than some others.

LOW HANGING FRUIT FOR HOME BUYERS

If you are looking for motivated sellers of properties, here are some places where you can find them:

HOMES FOR RENT- Property owners who rent homes or apartments may have something for sale. They may be like a property owner I spoke to last week who is tired of the hassles of renting.

ESTATE SALES- When someone dies in a family, there is often a home that needs to be sold. You can find estate sales in classified ads in your local newspapers or on the internet. Though they may only be selling the contents at first, you can contact them about whether they will be selling a home. One caution: approach these persons with care and sensitivity as they are in the throes of the loss of someone they love.

CODE INSPECTORS- Your county or city code inspectors can also be a source of motivated sellers. They may know of properties with code violations where they have been unable to get the property owner to correct the problem. Check with these public officials. A reminder that the information they have is public information.

REAL ESTATE INVESTMENT CLUBS- REIA's are a place where you will sometimes find motivated sellers. It might not have anything to do with the property, but simply that the real estate investor needs to liquidate their assets for some reasons. Check the internet for the real estate investment club near you.

COMMUNITY HELPERS- Community helpers like mail carriers, pubic utility personnel, firefighters, etc. can also be a source of motivated sellers. For example, a homeowner might nto want to repair a home after a fire. A mail carrier might know that a person is getting ready to have to move into a nursing home.

REALTORS- Realtors can be a great source for finding motivated sellers. By checking out their MLS, they can easily find out which homes have recently been reduced in price, been on the market for 90 days or more, or are foreclosures.

Good luck in your search. These are a few ways for finding a property that might turn out to be the apple of your eye.- Randy Wall, Lora Lee Properties

THE S.O.L.D. METHOD FOR HOME SELLERS

Today I want to share with you the S.O.L.D. method of selling a house. Of course, sold is what every home seller wants to happen when the list their house for sale. In this case, sold stands for some important tasks to do and actions to take. They are as follows:

S- ELECT If you are planning to sell your home, select a real estate professional. I understand some homeowner’s hesitation in using a real estate professional these days. Perhaps they believe they can sell the house themselves and safe the commission. While a homeowner may sell the house themselves, a real estate professional can be a great asset to making that goal a reality. They understand the market, and have the contacts and skills to really make your house sell.

O-RDER Order a home inspection. Many prospective homeowners order a home inspection before they purchase a home. Perhaps you should order a home inspection even before you market the house for sale. A home inspection can help you see things that need repaired or upgraded that you have not noticed. Some things that a home inspector might discover can even be a deal-breaker; some things a home inspector might discover can be resolved or repaired quickly. Give a copy of the home inspector to the real estate professional to show to all those looking at your home. They will not only be impressed, but they can make an offer on your house with piece of mind. Be prepared to pay $300 to $400 for a home inspection.

L- ISTEN Listen to your real estate professional and to the comments they share with you after showings. Unfortunately, some persons looking at a home cannot see beyond a kitchen that needs upgrading, a room that needs painting, or flooring that needs replacing. Listen to your real estate professional on these items. Also listen to what comments the real estate professional shares from folks who have toured your house. If the realtor does not share them with you, ask what things you can easily and affordably do to make the house appealing for showing.

D-ICKER Be prepared to dicker with prospective buyers. Remember this is a buyers market and there are lots of homes for sale. Be willing to consider lowering your price, countering an offering,or even paying for closing costs if you really want to sell the home. Do not be offended. I suspect that most of you reading this do not want to pay full price when you purchase a car. Well, most people will not want to pay full price for the sale of a home.

S-ELECT…. O-RDER… L-ISTEN….D-ICKER. If you do these things, I believe that you will get it sold. Good luck, and have a fantastic week.- Randy Wall, Lora Lee Properties

FINANCING YOUR REAL ESTATE PURCHASE

Today, I want to write about the issue of financing your real estate purchases. Whether you are looking for real estate for your own residence or as an investor, many people often see money as a big barrier keeping them from buying a property. While real estate is more affordable today that it was 5 to 7 years ago during the real estate boom, the down side is that real estate loans are more difficult to get when many lenders were doing no document, interest only home loans. I have listed below a few things to consider in purchasing real estate today:

CREDIT SCORE- If you are purchasing real estate and are looking to finance the purchase, a lender is going to want to be sure you can repay the loan. There are a number of things that assist private and public lenders making that assessment. First, they need to see that you have income to pay back a loan from a job, investments, or retirement. Secondly, lenders are going to look at your credit score through agencies such as Trans Union or Experian. The credit score gives the lender an idea on how you have done in making payments on credit purchases in the past. If your credit is not good, it is important that you begin now to improve your credit. While there are some companies that say that can easily repair your credit for a fee, I am skeptical of those claims. The best things you can do to repair your credit is to pay down your credit cards, pay your debts on time, and check your credit report to be sure it is accurate.

USDA AND FHA LOAN PROGRAMS- A few years ago, there many loans that you could get with no money down. You will have a hard time finding such a program today. One program that is available with no money down for qualified parties is the USDA loan program. This program is not available on all properties but only those in rural areas. If you want to know if a property is eligble for the program, go to the USDA rural development loan program web site and type in the address for the property to see if it is eligible. FHA also has some programs with a down payment for 3 percent. Like the USDA programs, you and the property must qualify.

HUD PROGRAMS- HUD of the U.S.A. also has some good programs for eligible parties. In certain areas, there is housing available for teachers, fire fighters, police officers, etc. at a significant savings. Check out the HUD web site for more information.

SELLER/OWNER FINANCING- There are some homeowners that are willing to sell a home with seller or owner financing. Some sellers will even require a low downpayment or no downpayment. You can find some of these on websites such as Craiglist. If you are working with a realtor, get the realtor to search for properties with owner financing. One form of seller financing is a lease with an option to purchase. In this scenario, the homeowner gives the renter/buyer the chance to buy the property for a certain period of time while they lease the property. Some sellers will give credit the renter/buyers with a portion of the monthly lease toward the purchase. If you are currently renting or leasing a property, check with your landlord to see if this is a possibility. The worse they can say is “No”.

There are many other possibilities and ideas to consider. These are only a few. Talk to a real estate professional, a seasoned real estate investor, or a seasoned mortgage professional for other ideas. Good luck.- Randy Wall, Lora Lee Properties

The Ugliest Four Letter Word

One thing that is different today is the abundance of profanity that you hear in all sorts of places. When I was growing up, profanity was something that was said outside the barn or in the streets in fear that Mama might hear it and might "wash your mouth out with soap" if you uttered "four letter words". Today, profanity is found in all sorts of media including movies, music, and television.

It is not the purpose of this blog to enter into dialogue about profanity in the media. I will reserve that for another time and place. However, I do want to focus on an ugly four letter word. Though most would not see this word as profanity per se, it is a word that can paralyze people in life in general and real estate in particular. THE UGLIEST FOUR LETTER WORD TO ME IS THIS ONE: CAN'T. As my late Mom used to say, "can't never could do anything".

Whether you read this blog as a real estate agent, real estate investor, home buyer, or home seller, sometime along the way you will encounter someone who will tell you that you can't do something related to real estate. While they might not literally use the word "can't" in their conversation, that surely is what they were saying to you. For example, they might say "You are wasting your time trying to sell your house right now.... You won't ever be able to buy property and make any money.... You must like to starve because that is what you are going to do if you are a real estate agent".

How do you combat the word "can"t" and those "nay-sayers"? Here are a few things that work for me and might be helpful for you:

1. TRY TO AVOID CONVERSATION WITH PEOPLE THAT ARE NEGATIVE- I recall hearing the late Carlyle Marney once say that there are basically two kinds of people in the world: basement people and balcony people. Basement people are people that bring you down, and the balcony people are people that lift you up. Try to spend time with balcony people who lift you up and encourage you. It makes no difference if that balcony person knows much about real estate; if they do know something about real estate, all the better. I know that this is a challenge if that basement person is a family member.

2. LISTEN TO OR READ SUCCESS STORIES- Fill your heart and mind regularly with conversations with or ideas from people that encourage you. Listen to them as they tell how they sold their house or how they are doing very well in the field of real estate. If you don't personally know anyone, check out the internet where you can hear stories from real estate guru's and their disciples. You can also check out your local library or bookstore where you can listen to motivational speakers or real estate giants.

3. MAKE A PLAN AND WORK THE PLAN- It is not enough to avoid negative people and listen to success stories in real estate. You have got to take action. If you don't, then those people who said "can't" were right. Set goals and steps to reach those goals. Check up regularly to see how you are doing in those steps. Revise your goals and steps as necessary.

Good luck in your goals and plans. Take care.- Randy Wall, Lora Lee Properties

TIPS FOR RENTERS

I wrote last week on tips to do renting your property as a landlord. Today, I want to write some tips for potential renters. I must confess that I have never rented a property. Therefore, I share these thoughts from tidbits that family members share who have rented or are renting. The tips are as follows:
DECIDE ON A LOCATION- Decide where you would like to rent property. Though it might not be important to decide on the street or subdivision you want to rent, it would be good at least to decide the zip code. Do research on the area you want to rent to decide if meets your needs. For example, if you have children you would certainly want to know about the schools or child care. If you enjoy going out with friends or family for dinner or other activities, how close is this rental area to restaurants and such. It also might be good to check out the crime statistics for the area by going to public websites such as crimereports.com.
DECIDE ON WHAT YOU ARE LOOKING FOR- Once you have decided on the area, decide on what is important to you in a rental property. For example, how many bedrooms and baths? Are you looking for a big yard for the children? Do you need a fenced in yard for pets or young children? If you have pets, you certainly would want a home that is pet friendly. If you smoke, you will want to make sure that will not be a problem for the landlord. It might be helpful to prioritize what you are looking for in case you cannot find everything you want in one property. Anotherwords, what is a requirement for you and what is simply a preference?

DECIDE WHAT YOU CAN AFFORD- It is also important to decide what you can afford to rent. Do you have monies to afford to rent in that area? Can you afford a 4 bedroom house or can you only afford a 2 bedroom house? As you look at your finances, keep in mind that a new rental property could increase or decrease your current rental expenditures. For example, a bigger house might increase your monthly utility costs or to live in a new house might increase your transportation costs because it is further away from your work. Keep in mind that it strains most budgets if your housing costs is more than 2/3 of your household income.

CHECK OUT AND CHECK ON PAPERWORK- If you are a prospective renter, ask to see a sample copy of the rental agreement. They might ask many questions you might have about security deposit, when the rent is due, what you are responsible for taking care of at the property, etc. Speaking of paperwork, get together information for the rental application. Most landlords will want to have a copy of recent pay stubs, your drivers license, etc. It might expedite the process if you go ahead and get this information together. Landlords might also ask for references so you might want to go ahead and check with persons to see if they will a reference for you.

Best wishes in your search for rental property. Make this a great day.- Randy Wall

TIPS ON RENTING YOUR PROPERTY

Today, I am going to write about renting your property. Ann and I have rented properties we have owned for over 10 years. Most of our experiences in renting properties we have owned have been good ones. However, I confess that some of what I share with you has been learned through mistakes we have made along the way. Here are a few tips we have learned:

MAINTENANCE OF RENTAL PROPERTY

Before you begin marketing your property for rent, do a thorough inspection of the property and make a list of things that need maintenance and attention. Some of the most obvious things include painting, floor covering replacement, patching the drywall (before painting). I like to paint all the rooms the same color. This makes it much easier if the renters move out after a short period of time. Don't forget to change air filters in the HVAC system and make sure the smoke detector is working fine. I also like to change the door locks in case the former renters did not change all the keys. Speaking of property maintenance, use an excel spreadsheet or a file folder to keep track of dates of maintenance and repairs on the property.

MARKETING THE RENTAL PROPERTY

Marketing of your rental property does not to be an expensive proposition. I usually begin with simply putting a "for rent" sign in the yard and putting signs in the neighborhood with a phone number for persons to call. An ad with pictures of the property on Craiglist has proven a good way to market our properties. If you have a renters or buyers list, you can send information to them via mail or e-mail. They might be your best advertisers and you might want to offer them a referal fee if they bring you a good renter. Make sure you are honest about the property and that you avoid statements in your ads that break fair housing laws.

SHOWING THE PROPERTY

I have had mixed success with open houses for rental properties. I usually like to have open houses in the early evening for 60 to 90 minutes. One of the advantages of having open houses is that you don't have to arrange several times to show the house. It also is helpful psychologically if a prospective tenants if they see someone else looking at the property. Whether you choose to have them or not, make sure you have copies of a rental application on hand and a brochure about the property. Most prospective tenants will probably be looking at more than one property.

RENTING THE PROPERTY

I like to have prospective tenants to submit an application and an application fee. The application fee is non-refundable, and is used to pay the cost of screening the tenants. You can find various tenant screening systems on the internet for about $30. Do not be surprised if you find credit issues when the screen the tenant. For many tenants, they rent because they cannot qualify for a loan to buy. I usually will take to the prospective tenant about their report . I also like to use a rental agreement with the tenant which states the terms of the lease: monthly rent, when rent is due, where to mail the rent, consequences if rent is not paid on time, no. of persons who can be in the house, amount of security deposit, etc. As implied in the former sentence, I always ask for a security deposit and let it be slightly more than the monthly rent so the tenant does not see the security deposit as their final month's rent.

Once the property is rented and tenants are in place, be sure to visit the property at least once a year to inspect the property. This helps for you as the landlord to see what condition the tenant is keeping the property and also helps to see what maintenance or improvements might need to be made on the property in the future.

APPRECIATION OF TENANTS

Anyone who has rented property can probably tell horror stories of bad tenants. If you have a good tenant in place, show them your appreciation. It is commonplace for persons in other businesses to show appreciation to their customers. These tenants are your customers as a real estate investor. A card at Christmas or a gift card on special occasions (e.g. first year anniversary since moving in the property, etc.) can assist in keeping a good repoire with the tenant. We also have given small gifts to their children. As someone once told me, everyone appreciates being appreciated. Good luck with your rental property.- Lora Lee Properties

Buying Resort Property

Today, I want to write about buying resort property. Most everyone enjoys a trip to the coast, lake, or the mountains. Many dream of having property in their favorite resort locale. I have purchased and sold over 10 properties in resort areas (beach and mountains) in three different states. Here a few tips I would offer in buying resort property:

1. DECIDE WHETHER YOU ARE BUYING RESORT PROPERTY PRIMARY FOR YOUR PERSONAL USE OR AS INVESTMENT- Do you want to buy property at the beach for you and your family to use, or for money now or in the future? Are you planning to rent the property on a short term or long term basis? If I am renting the property, can I afford the capital necessary if rent is not up to estimates? These are important questions to ask yourself as it will guide all your other decisions.

2. USE A REAL ESTATE BROKER WHO KNOWS YOUR YOUR RESORT AREA- While you may have a friend or family member who is realtor in another location, they might not know the resort area you want to buy. There can also be some resort properties that the average mortgage broker will not finance.

3. IF YOU ARE BUYING A CONDO, CHECK OUT THE HOA- While most folks only look at the location of the property and the price, it is important if you are buying a condo to check out about the HOA (Home Owners Association). Are they well run and managed? Do they have sufficient reserves to fund capital expenditures in the future (e.g. new roof, pool repair, etc.) Do they good insurance in case of hurricaine, tornado, etc.? A good realtor can give you a quick assessment about this.

4. IF YOU ARE GOING TO RENT THE RESORT PROPERTY, HAVE A LOCAL RESORT PROPERTY MANAGER RENT THE PROPERTY FOR YOU- While it is obvious that resort property management companies do charge a commission rate (typically from 15 to 40 percent depending on what services they provide), it will be much easier to handle rental issues from a distance away if you have a local rental company handling the property for you. it might be tempting to try to do it yourself, but the volume of rental income you get with a rental property manager might make up for the commission rate.

5. DON'T FORGET TO CHECK OUT THE TAX CONSEQUENCES OF A RESORT PROPERTY- If you rent out the property, you can deduct repairs, HOA fees, etc. This certainly can reduce your taxes. However, it is also good to know that renting the property can reduce your useage. For example, you can only use the property a few days of a year and it be considered passive income. Check out your tax advisor for details.

Whether you are interested in buying property at the coast, the lake, or the mountains there are some wonderful bargains out there today. If you are in the hunt for such property, good luck in your search. Your commments are most welcome. God bless.-- Randy Wall

Goal Setting for 2012

As the new year of 2012 begins, lots of people will making new years resolutions. Losing weight, exercising, and stopping to smoke are some common resolutions that people make.
I would encourage you to not so much make resolutions to set goals in this new year of 2012. Whether you are a prospective homeowner, a real estate investor, or a real estate broker, goal setting is a good thing to do.

Let me share a few tips for setting goals that come through my experience:
1. Write down your goals and put them in a place that you will see them regularly.
2. Make sure the goals are reachable and specific. Also make sure that your goals reflect your values in life.
3. Consider also listing what steps you are going to take to reach your goals. For example, it might be a worthy goal to say that you as a prospective homeowner are going to finally buy a home in 2012, but what steps are going to help you achieve that goal. Break down these steps into monthly or even weekly steps.
4. Review your goals as the days and weeks of the year tick away. If you are not making strides on your goals, perhaps you need to consider if you need to do something new. If you accomplish your goals, congratulate yourself and set new goals.
5. Share your goals with others you value in your life such as family and friends. Enlist their help in accomplishing your goals and their feedback on your goals. You need their support in your endeavors.