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.