ManishPatel
Investing in real estate may still be quite debatable as to whether it's superior or inferior to stock market investing, one of the facts that can never be questioned is its ability to generate a multitude of ways to make money in the long run. And although real estate negotiation process can be really confusing to many people, one of the good thing is that it can be pretty scientific - keeping your emotions in check, necessitating objective approach and being prepared for possible outcomes through thorough research and preparation. Moreover, it's an art - requiring thorough understanding of the emotions and motivations that come to play.
This being said, a successful negotiation isn't about the luck of the seller but rather it is based on the ability to use certain specialized skills and techniques to bring to opposing parties - the buyer and the seller - in to an agreement. And although real estate professionals are unquestionably trained in negotiation, there are still some simple tips that home sellers can follow to help the process succeed and attain a better outcome.
So to help you're a better deal for your property, here is a list of things suggested by Manish Patel you can do:
Price It Right
Generally, the most important thing for a successful negotiation is the price. If the property is overpriced to begin with, it can immediately discourage buyers from making an offer. To get the price right, it is advisable to ask for a reputable and trusted agent in your area or if you know someone who can provide a more accurate insight of what your property should be priced. Always remember, an overpriced property will only help your competition sell.
Respect The Buyer
Always remember that buyers that are making offers on your property isn't your competitor. Generally speaking, they are someone who is looking for a house they love for the best price possible just as much as you would be when your looking to buy your new property.
Always Seek For Advice
Being confused is normal when selling. And if you ever find yourself totally confused or unsure about the process of negotiation, there are several companies that are easy to access, talk to and would offer great services to help you sell your house. And it is advisable to hire their services whenever you feel the need to.
Take Care When Dealing With Their First Offer
The very first offer may not be as good as you would want it to be but that is what negotiation is about. It's not where they start but where they end up that count.
Mr. Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status and Wu-Tang Management. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish is one such great entrepreneur in the field of real estate investment. With his meticulous and legitimate skills he has reached a great height achieving incredible success in real estate investing.
To read more, please visit here: http://manishpatel.sitey.me/
This being said, a successful negotiation isn't about the luck of the seller but rather it is based on the ability to use certain specialized skills and techniques to bring to opposing parties - the buyer and the seller - in to an agreement. And although real estate professionals are unquestionably trained in negotiation, there are still some simple tips that home sellers can follow to help the process succeed and attain a better outcome.
So to help you're a better deal for your property, here is a list of things suggested by Manish Patel you can do:
Price It Right
Generally, the most important thing for a successful negotiation is the price. If the property is overpriced to begin with, it can immediately discourage buyers from making an offer. To get the price right, it is advisable to ask for a reputable and trusted agent in your area or if you know someone who can provide a more accurate insight of what your property should be priced. Always remember, an overpriced property will only help your competition sell.
Respect The Buyer
Always remember that buyers that are making offers on your property isn't your competitor. Generally speaking, they are someone who is looking for a house they love for the best price possible just as much as you would be when your looking to buy your new property.
Always Seek For Advice
Being confused is normal when selling. And if you ever find yourself totally confused or unsure about the process of negotiation, there are several companies that are easy to access, talk to and would offer great services to help you sell your house. And it is advisable to hire their services whenever you feel the need to.
Take Care When Dealing With Their First Offer
The very first offer may not be as good as you would want it to be but that is what negotiation is about. It's not where they start but where they end up that count.
Mr. Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status and Wu-Tang Management. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish is one such great entrepreneur in the field of real estate investment. With his meticulous and legitimate skills he has reached a great height achieving incredible success in real estate investing.
To read more, please visit here: http://manishpatel.sitey.me/
With the recent spike in home sales, buyers and sellers alike are feeling the pressure to quickly close on their purchase transaction before mortgage rates go up and demand for new homes slip. But before rushing to "ink the deal," understand that real estate professionals are required to provide written disclosures to their clients on a variety of important items necessary to the transaction, as they directly affect the buying or selling decision. Here are areas discussed by Manish Patel where written disclosure should be or are required:
1. Affiliate Disclosures. These days, it's common for a mortgage company to have a business interest in a title company or a real estate brokerage to also own a mortgage company. These are called "affiliate" relationships, and the relationship must be disclosed to the potential end users of these services. For instance, a mortgage company must disclosure in writing to its loan applicants that is also owns a title company that will close on the mortgage and purchase transaction. A loan applicant is not required to use the "affiliate" title company and can use another suitable title provider instead. Most importantly, a home seller or buyer cannot be pressured to use an affiliate service or be prevented from seeking a loan or making an offer on a home, just because one chooses to do business with an "unaffiliated" business.
2. Third- party services. Similar to the above paragraph, a home seller and real estate agent cannot require someone to use a third party service in order to purchase a home. A third- party could mean a lender, a title co, an appraiser or inspector. However, one can give better pricing to a buyer who uses their services. For example, a lender can waive fees if the buyer uses one of their "affiliates," however, they cannot prevent you from making a loan application or denying a loan for refusing to use their business affiliates.
3. Real estate agent disclosure. If a real estate agent is selling a home that they own, they must disclose that they are a licensed real estate agent. Some states limit this disclosure to only an agent's primary residence. Other states require the disclosure for any properties that the agent owns.
4. Dual agency. A seller's agent or "listing agent" represents the seller. The seller's agent does not have any professional duty to a buyer who is not represented by their own agent. The buyer should hire their own agent. A dual agent is an agent or real estate broker that represents both parties in the transaction. Agents must provide written disclosures to both a parties when they act as dual agents. In theory this disclosure is supposed to make a dual agent in a transaction neutral. However, a real estate deal is never without some controversy and give and take, and therefore this writer suggests that a prospective purchaser hire their own "buyer's" agent.
5. Title agency. A title company's function is to insure that the ownership to a specific property is valid according to public property records so that a lending institution can provide a mortgage on the property or a purchaser can take proper title from the rightful owner. Title agents represent the insurance companies that provide this coverage. They do not dispense legal advice to buyers or sellers. They do not represent lenders or real estate brokers. Title companies must disclose when they have an affiliate relationship with a property service provider, meaning that they are owned by the lender or real estate brokerage, or even an appraiser.
6. Provide all offers. A real estate agent is required to provide its sellers with all offers. Unless a seller specifically instructs an agent not to bring certain offers, say one below a certain price or time frame, the agent must present the offer. Therefore, if a buyer feels that an offer was not presented, they should contact the agent's broker. In some states, it's customary for a buyer or their agent to present the offer directly to the seller. But nothing prevents an enthusiastic buyer from directly speaking with a seller, it's just not commonplace.
7. Terminating a real estate agent. It is a common misconception among sellers that they cannot fire or terminate their listing agent. They can. However, the best way to still market one's property without bad feelings is to approach the agent's broker and have the broker assign a new agent to the listing. Understand that the agent and broker still have a "protection period" that protects them against the seller closing a transaction with a buyer that the agent, through their business efforts, had previously procured. The period is usually for 180 days, but at time of listing a property this period can be negotiated down to 90 or even 60 days. Regardless of the time limits, it is wrong for a seller to take advantage of the agent's efforts and is grounds for legal action.
8. Attorneys. Like a property agent, an attorney cannot represent a buyer and a seller in a transaction unless the attorney discloses the conflict in writing and both parties sign the disclosure. If two parties to a transaction have completely different versions of a transaction, then it's time that one party hires their own attorney.
In a residential real estate transaction written disclosures comprise most of the real estate package. For those new to real estate, hire a professional adviser like Manish Patel to guide one through a successful transaction. But make sure to read and understand the disclosures and how they apply to one's deal, as they are there for the buyer or seller's benefit.
Mr. Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status and Wu-Tang Management. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish is one such great entrepreneur in the field of real estate investment. With his meticulous and legitimate skills he has reached a great height achieving incredible success in real estate investing.
Also visit here: https://manishpatelpost.wordpress.com/
1. Affiliate Disclosures. These days, it's common for a mortgage company to have a business interest in a title company or a real estate brokerage to also own a mortgage company. These are called "affiliate" relationships, and the relationship must be disclosed to the potential end users of these services. For instance, a mortgage company must disclosure in writing to its loan applicants that is also owns a title company that will close on the mortgage and purchase transaction. A loan applicant is not required to use the "affiliate" title company and can use another suitable title provider instead. Most importantly, a home seller or buyer cannot be pressured to use an affiliate service or be prevented from seeking a loan or making an offer on a home, just because one chooses to do business with an "unaffiliated" business.
2. Third- party services. Similar to the above paragraph, a home seller and real estate agent cannot require someone to use a third party service in order to purchase a home. A third- party could mean a lender, a title co, an appraiser or inspector. However, one can give better pricing to a buyer who uses their services. For example, a lender can waive fees if the buyer uses one of their "affiliates," however, they cannot prevent you from making a loan application or denying a loan for refusing to use their business affiliates.
3. Real estate agent disclosure. If a real estate agent is selling a home that they own, they must disclose that they are a licensed real estate agent. Some states limit this disclosure to only an agent's primary residence. Other states require the disclosure for any properties that the agent owns.
4. Dual agency. A seller's agent or "listing agent" represents the seller. The seller's agent does not have any professional duty to a buyer who is not represented by their own agent. The buyer should hire their own agent. A dual agent is an agent or real estate broker that represents both parties in the transaction. Agents must provide written disclosures to both a parties when they act as dual agents. In theory this disclosure is supposed to make a dual agent in a transaction neutral. However, a real estate deal is never without some controversy and give and take, and therefore this writer suggests that a prospective purchaser hire their own "buyer's" agent.
5. Title agency. A title company's function is to insure that the ownership to a specific property is valid according to public property records so that a lending institution can provide a mortgage on the property or a purchaser can take proper title from the rightful owner. Title agents represent the insurance companies that provide this coverage. They do not dispense legal advice to buyers or sellers. They do not represent lenders or real estate brokers. Title companies must disclose when they have an affiliate relationship with a property service provider, meaning that they are owned by the lender or real estate brokerage, or even an appraiser.
6. Provide all offers. A real estate agent is required to provide its sellers with all offers. Unless a seller specifically instructs an agent not to bring certain offers, say one below a certain price or time frame, the agent must present the offer. Therefore, if a buyer feels that an offer was not presented, they should contact the agent's broker. In some states, it's customary for a buyer or their agent to present the offer directly to the seller. But nothing prevents an enthusiastic buyer from directly speaking with a seller, it's just not commonplace.
7. Terminating a real estate agent. It is a common misconception among sellers that they cannot fire or terminate their listing agent. They can. However, the best way to still market one's property without bad feelings is to approach the agent's broker and have the broker assign a new agent to the listing. Understand that the agent and broker still have a "protection period" that protects them against the seller closing a transaction with a buyer that the agent, through their business efforts, had previously procured. The period is usually for 180 days, but at time of listing a property this period can be negotiated down to 90 or even 60 days. Regardless of the time limits, it is wrong for a seller to take advantage of the agent's efforts and is grounds for legal action.
8. Attorneys. Like a property agent, an attorney cannot represent a buyer and a seller in a transaction unless the attorney discloses the conflict in writing and both parties sign the disclosure. If two parties to a transaction have completely different versions of a transaction, then it's time that one party hires their own attorney.
In a residential real estate transaction written disclosures comprise most of the real estate package. For those new to real estate, hire a professional adviser like Manish Patel to guide one through a successful transaction. But make sure to read and understand the disclosures and how they apply to one's deal, as they are there for the buyer or seller's benefit.
Mr. Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status and Wu-Tang Management. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish is one such great entrepreneur in the field of real estate investment. With his meticulous and legitimate skills he has reached a great height achieving incredible success in real estate investing.
Also visit here: https://manishpatelpost.wordpress.com/
Many real estate investment strategies exist; however, smart entrepreneurs realize the power of preparation and readiness. Investing in real estate is a major decision and taking the proper time and care will prevent future suffering. You can either be secure, comfortable or rich. Ninety-percent of people choose comfort over becoming rich regardless of whether they believe it or not.
It's also important to educate yourself before making a huge leap financially. Your education will empower you to devise the best strategy for your personal situation and needs. Investing is a confusing subject and if you are not prepared you can enter a financial dealing without the proper tools to solidify the deal and make a viable profit. According to Kiyosaki, investment is not necessarily the riskiest practice; the risk surfaces when you are not financially educated to take the plunge.
Become familiar with reading and analyzing financial statements, understanding tax codes, business law, corporate laws and basic accounting principles. Through advanced financial textbooks, by grasping these key principles you will possess the ability to uncover the best investment opportunities, those unseen to the "naked" eye. Hence, it is vitally important you set aside the necessary time to become prepared and ready for every opportunity. Only then will any real estate strategy you implement work for you in the long run.
Strategic Tips to Sound Real Estate Investing
Real estate investing is an incredibly lucrative business and worth a try for anyone who is willing to work at it. Any person who has even thought about investing in real estate has most likely heard about Robert Kiyosaki, the acclaimed author of Rich Dad Poor Dad. Kiyosaki, in his book, teaches vital truths from two different perspectives allowing the readers to take a journey into their own minds and lives. Regardless of whether you acquired this priceless information from the book, or online version you will definitely walk away from the experience with more strategic maneuvers from which to start your real estate investment campaign.
Strategic tips you can extract from this information:
Make smart decisions - Take the time to acquire the necessary education so you become financially literate. Your lack of necessary knowledge will dampen and nearly eliminate your possibility of success.
Don't make decisions in haste - Do your due diligence and compare the properties to see which ones will reward you with the highest return on investment. Take your time and observe all of the details.
Run the numbers - Determine future appreciation growth rates of the properties and use sophisticated software to receive an accurate assessment.
Education and financial literacy is paramount to success in the real estate market. Once you build this solid financial education foundation, you are ready to implement the right strategies to begin building your personal real estate empire.
Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish precisely diagnoses real estate bargains and works closely with real estate investors to create wealth and capitalize on great deals in the real estate continuum. As a specialist in distressed real estate, he brings insights to distressed sellers to see beyond the conventional ways of seeking foreclosure relief. In addition to this he has excellent oral and written communication skills proven by the ability to successfully manage large projects while working with individuals from very diverse backgrounds.
Also visit here: http://manishpatel.sitey.me/
It's also important to educate yourself before making a huge leap financially. Your education will empower you to devise the best strategy for your personal situation and needs. Investing is a confusing subject and if you are not prepared you can enter a financial dealing without the proper tools to solidify the deal and make a viable profit. According to Kiyosaki, investment is not necessarily the riskiest practice; the risk surfaces when you are not financially educated to take the plunge.
Become familiar with reading and analyzing financial statements, understanding tax codes, business law, corporate laws and basic accounting principles. Through advanced financial textbooks, by grasping these key principles you will possess the ability to uncover the best investment opportunities, those unseen to the "naked" eye. Hence, it is vitally important you set aside the necessary time to become prepared and ready for every opportunity. Only then will any real estate strategy you implement work for you in the long run.
Strategic Tips to Sound Real Estate Investing
Real estate investing is an incredibly lucrative business and worth a try for anyone who is willing to work at it. Any person who has even thought about investing in real estate has most likely heard about Robert Kiyosaki, the acclaimed author of Rich Dad Poor Dad. Kiyosaki, in his book, teaches vital truths from two different perspectives allowing the readers to take a journey into their own minds and lives. Regardless of whether you acquired this priceless information from the book, or online version you will definitely walk away from the experience with more strategic maneuvers from which to start your real estate investment campaign.
Strategic tips you can extract from this information:
Make smart decisions - Take the time to acquire the necessary education so you become financially literate. Your lack of necessary knowledge will dampen and nearly eliminate your possibility of success.
Don't make decisions in haste - Do your due diligence and compare the properties to see which ones will reward you with the highest return on investment. Take your time and observe all of the details.
Run the numbers - Determine future appreciation growth rates of the properties and use sophisticated software to receive an accurate assessment.
Education and financial literacy is paramount to success in the real estate market. Once you build this solid financial education foundation, you are ready to implement the right strategies to begin building your personal real estate empire.
Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale. Manish founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish precisely diagnoses real estate bargains and works closely with real estate investors to create wealth and capitalize on great deals in the real estate continuum. As a specialist in distressed real estate, he brings insights to distressed sellers to see beyond the conventional ways of seeking foreclosure relief. In addition to this he has excellent oral and written communication skills proven by the ability to successfully manage large projects while working with individuals from very diverse backgrounds.
Also visit here: http://manishpatel.sitey.me/
No matter whether the real estate market is going up or down, there are some things you can do to almost guarantee that your home will sell faster, easier and for a little more money than compared to a similar house in the same street.
However there are some big real estate selling mistakes that many home owners overlook that could affect their ability to sell their properties. Let's look at some of the biggest real estate selling mistakes home owners make.
1. Poor Condition
Selling real estate that is in poor condition will mean an instant reduction in the potential price you could have set for the sale. Trying to market a home that is in poor condition or a home that has obvious maintenance issues that have been ignored is a sure way to put off many potential buyers.
People will automatically assume that if a house has any minor maintenance issues showing, then there must be bigger maintenance issues beneath the surface. Take some time to complete any repairs or maintenance on the home.
2. Real Estate Staging
Selling real estate is about trying to attract potential new buyers into thinking a property is the right place for them to raise a family and build their own memories. Most people who sell their homes overlook the importance of real estate staging prior to a showing. Giving your house a quick wipe over with a cleaning cloth and putting the dishes away is not enough.
Buying a home is an emotional purchase for most people. Buyers want to walk into a home and feel good. They want to imagine how their own furniture will look in each room and how their own decorations will brighten up each room.
Taking some time to freshen up paint with a light, neutral color and then removing all your personal finishing touches, such as your family photos, kid's toys and some ornaments will make each room in your home look more spacious and more open. If you have big bulky furniture, either re-arrange it so each room appears bigger or borrow smaller furniture from friends and family.
3. Street Appeal
People selling real estate often overlook the importance of street appeal. Many home owners spend a lot of time fixing smaller maintenance issues within the home, but only take a moment to run a lawn mower over the yards.
Potential buyers want to be able to drive up to the front of a house and immediately feel that the home is appealing and attractive. Overgrown trees and shrubs obscure the house from the street. Prune them back or cut them down. Open up the yard with border plantings to make the land plot seem bigger than it really is from the street.
Selling real estate is all about appealing to buyers in such a way that they feel comfortable paying money for your property even when other properties might not be selling.
Manish Patel founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish precisely diagnoses real estate bargains and works closely with real estate investors to create wealth and capitalize on great deals in the real estate continuum. As a specialist in distressed real estate, he brings insights to distressed sellers to see beyond the conventional ways of seeking foreclosure relief.
For more details, visit here: https://manishpatelpost.wordpress.com/
However there are some big real estate selling mistakes that many home owners overlook that could affect their ability to sell their properties. Let's look at some of the biggest real estate selling mistakes home owners make.
1. Poor Condition
Selling real estate that is in poor condition will mean an instant reduction in the potential price you could have set for the sale. Trying to market a home that is in poor condition or a home that has obvious maintenance issues that have been ignored is a sure way to put off many potential buyers.
People will automatically assume that if a house has any minor maintenance issues showing, then there must be bigger maintenance issues beneath the surface. Take some time to complete any repairs or maintenance on the home.
2. Real Estate Staging
Selling real estate is about trying to attract potential new buyers into thinking a property is the right place for them to raise a family and build their own memories. Most people who sell their homes overlook the importance of real estate staging prior to a showing. Giving your house a quick wipe over with a cleaning cloth and putting the dishes away is not enough.
Buying a home is an emotional purchase for most people. Buyers want to walk into a home and feel good. They want to imagine how their own furniture will look in each room and how their own decorations will brighten up each room.
Taking some time to freshen up paint with a light, neutral color and then removing all your personal finishing touches, such as your family photos, kid's toys and some ornaments will make each room in your home look more spacious and more open. If you have big bulky furniture, either re-arrange it so each room appears bigger or borrow smaller furniture from friends and family.
3. Street Appeal
People selling real estate often overlook the importance of street appeal. Many home owners spend a lot of time fixing smaller maintenance issues within the home, but only take a moment to run a lawn mower over the yards.
Potential buyers want to be able to drive up to the front of a house and immediately feel that the home is appealing and attractive. Overgrown trees and shrubs obscure the house from the street. Prune them back or cut them down. Open up the yard with border plantings to make the land plot seem bigger than it really is from the street.
Selling real estate is all about appealing to buyers in such a way that they feel comfortable paying money for your property even when other properties might not be selling.
Manish Patel founded IRG Real Estate to advocate the tremendous opportunity in the California/Nevada/Arizona market. Manish precisely diagnoses real estate bargains and works closely with real estate investors to create wealth and capitalize on great deals in the real estate continuum. As a specialist in distressed real estate, he brings insights to distressed sellers to see beyond the conventional ways of seeking foreclosure relief.
For more details, visit here: https://manishpatelpost.wordpress.com/
There are numerous ways to invest in real estate. You can rent, flip, or fix. There are condos, homes, apartments, land, and buildings to invest in. The options are limitless.
There is, however, a great divide some investors have a hard time deciding on, residential versus commercial investing.
Residential property is perhaps most commonly what comes to mind when thinking of real estate investing. In general, residential property is a living space. This can include apartments, duplexes, homes, and condominiums.
Commercial property, on the other hand, plays home to businesses in the form of office space, retail space and other industrial type tenants.
When considering which type of investing is best for you, there are a few questions to ask. Most of us have experience in residential dwellings. After all, we grew up in homes.
You have a set of expectations for your residential rental property. You know how you anticipate it to be cared for and what assumptions you want to see in your tenants. Commercial property is a little different. We haven't all necessarily rented or owned commercial property.
What is unique about commercial property is the landlord often hands the property over to the tenant and has very little to do with it after that point. You basically have to trust in your tenant. Plus, unless you have business experience, you probably aren't familiar with the guidelines and assumptions of commercial property leasing.
With all of that said, let's look at what benefits and disadvantages come with investing in residential property.
1) In general, it is easier to rent residential property then commercial property. People always need a place to live. Businesses, however, come and go dependent on the market.
2) Financing residential property tends to be easier then purchasing commercial property.
3) If needed, you could actually live in one of your rental properties.
4) Residential property is usually less expensive then commercial.
5) Residential property can require your immediate attention when problems arise. Problems can come at any hour on any day unlike the traditional 9 to 5 business that rents commercial property.
6) As a residential landlord, you usually have to perform a lot of hands-on management.
7) If you have a single residential piece of property and you lose a tenant, you just lost all your income for that particular property until you can replace the tenant. This can cause cash flow problems.
Commercial property also has is pluses and minuses.
1) A nice thing about commercial property is the leases tend to be considerably longer then that of residential property. Where a residential tenant might sign a year lease agreement, commercial tenants usually stick around for five or so years.
2) Unlike residential, commercial property requires less management. Depending on your personality, this may or may not be desirable to you.
3) Commercial investing isn't as beginner friendly as residential. Start-up costs can far exceed that of simply purchasing a home. Even worse, if can be harder for beginner investors to secure a loan for commercial property.
4) Finding a tenant for you commercial property can be a lot harder then securing one for your residential property.
Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status, Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability.
Also visit here: https://manishpatel.jimdo.com
There is, however, a great divide some investors have a hard time deciding on, residential versus commercial investing.
Residential property is perhaps most commonly what comes to mind when thinking of real estate investing. In general, residential property is a living space. This can include apartments, duplexes, homes, and condominiums.
Commercial property, on the other hand, plays home to businesses in the form of office space, retail space and other industrial type tenants.
When considering which type of investing is best for you, there are a few questions to ask. Most of us have experience in residential dwellings. After all, we grew up in homes.
You have a set of expectations for your residential rental property. You know how you anticipate it to be cared for and what assumptions you want to see in your tenants. Commercial property is a little different. We haven't all necessarily rented or owned commercial property.
What is unique about commercial property is the landlord often hands the property over to the tenant and has very little to do with it after that point. You basically have to trust in your tenant. Plus, unless you have business experience, you probably aren't familiar with the guidelines and assumptions of commercial property leasing.
With all of that said, let's look at what benefits and disadvantages come with investing in residential property.
1) In general, it is easier to rent residential property then commercial property. People always need a place to live. Businesses, however, come and go dependent on the market.
2) Financing residential property tends to be easier then purchasing commercial property.
3) If needed, you could actually live in one of your rental properties.
4) Residential property is usually less expensive then commercial.
5) Residential property can require your immediate attention when problems arise. Problems can come at any hour on any day unlike the traditional 9 to 5 business that rents commercial property.
6) As a residential landlord, you usually have to perform a lot of hands-on management.
7) If you have a single residential piece of property and you lose a tenant, you just lost all your income for that particular property until you can replace the tenant. This can cause cash flow problems.
Commercial property also has is pluses and minuses.
1) A nice thing about commercial property is the leases tend to be considerably longer then that of residential property. Where a residential tenant might sign a year lease agreement, commercial tenants usually stick around for five or so years.
2) Unlike residential, commercial property requires less management. Depending on your personality, this may or may not be desirable to you.
3) Commercial investing isn't as beginner friendly as residential. Start-up costs can far exceed that of simply purchasing a home. Even worse, if can be harder for beginner investors to secure a loan for commercial property.
4) Finding a tenant for you commercial property can be a lot harder then securing one for your residential property.
Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status, Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability.
Also visit here: https://manishpatel.jimdo.com
How well do you know your local real estate market? The answer to that question will have a lot to do with whether real estate investing provides a lucrative future for you and your family or rueful memories of what might have been.
By knowing your local real estate investing market, you're able to keep your finger on the pulse of your local community and to stay abreast of changes in trends, sales prices and rental rates. Knowing immediately about these changes is critical to your investing future. Here's how each of these three areas will affect your future:
1) Trends - National media outlets report gloom & doom outlooks for real estate, but even in the most depressed real estate market there are isolated pockets and neighborhoods with property values that are increasing. If you don't know your local real estate market, you're simply taking a wild guess as to value. When negotiating with a homeowner, it's imperative that you know what the property is worth. Otherwise, you run the risk of overpaying or offering too little, which could offend the property owner and get you kicked to the curb with your hat in your hand.
Another reason you want to know your local real estate market is because certain areas within a given community make better investments than others. If you invest your hard-earned dollars in an area that is declining, property values could fall and some or all of your investment could be at risk. By keeping an eye on trends within your local real estate market, you can more readily take advantage of opportunities to get in on the ground floor of an investment and ride the wave of property appreciation, which will have a positive impact on your bank account.
2) Sales prices - How much is property worth in your local real estate market? Do you have a clue? You need to be cognizant of local sales prices -- especially now -- because property values can change very rapidly. In today's volatile investing environment, it's not unusual for the value of a property to fluctuate by $10,000-$15,000 in a given month. If you have a property that you're considering selling, you can gain or lose a tremendous amount of money in no time.
3) Rental rates - Current knowledge of your local investing climate is imperative when determining what rental rates are in a particular neighborhood. If you do a cash flow analysis on a property and you assume that it will rent for $1,500 per month and in reality it will only generate $1,100, you could have a problem, especially if you were anticipating a positive monthly cash flow of $200. If the rent a property can command is $400 less than you anticipated, you would have a monthly loss of $200. Negative cash flow sets the stage for a constant drain on your financial resources, and could eventually cause you to rethink your commitment to real estate investing.
Today's real estate investing climate makes accurate and timely information critical to your success. If you don't know your local real estate market, you could be in serious trouble. An excellent way of developing a proper and accurate knowledge of your local market is by trailing an experienced mentor who knows what he or she is doing. In addition to teaching you how to analyze current market conditions, you'll also be able to better understand what to look for in your local real estate market.
Real estate investing is a great way to expand your financial opportunity, but a failure to know and understand all of the variables within your local market can very quickly erode opportunity. Learn your local real estate market and make this your best year ever!
Manish Patel is a Real Estate Entrepreneur and an investor associated with CreamBnb , Wu Status, Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability.
For more details, please visit here: http://manishpatel.snack.ws/
By knowing your local real estate investing market, you're able to keep your finger on the pulse of your local community and to stay abreast of changes in trends, sales prices and rental rates. Knowing immediately about these changes is critical to your investing future. Here's how each of these three areas will affect your future:
1) Trends - National media outlets report gloom & doom outlooks for real estate, but even in the most depressed real estate market there are isolated pockets and neighborhoods with property values that are increasing. If you don't know your local real estate market, you're simply taking a wild guess as to value. When negotiating with a homeowner, it's imperative that you know what the property is worth. Otherwise, you run the risk of overpaying or offering too little, which could offend the property owner and get you kicked to the curb with your hat in your hand.
Another reason you want to know your local real estate market is because certain areas within a given community make better investments than others. If you invest your hard-earned dollars in an area that is declining, property values could fall and some or all of your investment could be at risk. By keeping an eye on trends within your local real estate market, you can more readily take advantage of opportunities to get in on the ground floor of an investment and ride the wave of property appreciation, which will have a positive impact on your bank account.
2) Sales prices - How much is property worth in your local real estate market? Do you have a clue? You need to be cognizant of local sales prices -- especially now -- because property values can change very rapidly. In today's volatile investing environment, it's not unusual for the value of a property to fluctuate by $10,000-$15,000 in a given month. If you have a property that you're considering selling, you can gain or lose a tremendous amount of money in no time.
3) Rental rates - Current knowledge of your local investing climate is imperative when determining what rental rates are in a particular neighborhood. If you do a cash flow analysis on a property and you assume that it will rent for $1,500 per month and in reality it will only generate $1,100, you could have a problem, especially if you were anticipating a positive monthly cash flow of $200. If the rent a property can command is $400 less than you anticipated, you would have a monthly loss of $200. Negative cash flow sets the stage for a constant drain on your financial resources, and could eventually cause you to rethink your commitment to real estate investing.
Today's real estate investing climate makes accurate and timely information critical to your success. If you don't know your local real estate market, you could be in serious trouble. An excellent way of developing a proper and accurate knowledge of your local market is by trailing an experienced mentor who knows what he or she is doing. In addition to teaching you how to analyze current market conditions, you'll also be able to better understand what to look for in your local real estate market.
Real estate investing is a great way to expand your financial opportunity, but a failure to know and understand all of the variables within your local market can very quickly erode opportunity. Learn your local real estate market and make this your best year ever!
Manish Patel is a Real Estate Entrepreneur and an investor associated with CreamBnb , Wu Status, Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability.
For more details, please visit here: http://manishpatel.snack.ws/
When it comes to investing goals, setting them is the easy part; its reaching them that can get a bit complicated and challenging. What looks feasible on paper can seem insurmountable in real life when obstacles present themselves. Overcoming these obstacles and keeping your goals at the forefront of every investing decision that you make is key to moving up the real estate investing ladder and building residual income.
Manish Patel a real estate investor says that the number one thing that can distract you from your goals is discouragement. In the world of investments, particularly those involving real estate, nothing goes quite as planned and there is always some element of risk. A miscalculation of costs or an unplanned emergency repair can set you back thousands of dollars. If you allow setbacks like these to discourage you, your project will likely hum along on a sour note making it even harder for you to recoup your original losses. If you remain optimistic, though, you will be able to bounce back from setbacks and stay on track ultimately reaching your goal.
In addition to remaining optimistic, there are several things that you can do to ensure that you meet all of your real estate investing goals.
Here are a few tips that you can try for yourself: Break large, long term goals up into smaller, short term goals. Short term goals don't seem as impossible or as overwhelming as long term goals and are easier to attain. Meeting short term goals also motivates you to keep moving forward as you can track your progress with each milestone met.
Display a list of your goals in a spot that you will see them and be reminded of them often. In a hectic world, it’s easy to lose sight of plans that you have made, but by constantly reminding yourself of the goals that you have set, you will be able to keep them at the foundation of all of your decisions.
Re-evaluate your goals often. The real estate investing market changes constantly and you have to be ready to change with it. A stale goal strategy will only put you further and further behind your competition. Be ready to change with the market and adjust your goals accordingly.
Consistently meeting goals requires consistency on your part. Begin each day by asking yourself what can be done that day to help you reach your goals. And don't be discouraged by progress that doesn't seem to be moving along as well as you would like it to. Any victory, no matter how small, brings you one step closer to realizing your ultimate investing goals.
Manish Patel is a Real Estate Entrepreneur and an investor associated with Realestatewholesale, CreamBnb, Wu Status, Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability.
To read more, please click here
Investing in Real Estate has become urban legend the myths abound about how much you can increase your wealth by investing in real estate and in particular residential real estate, so much so that the average Joe believes that making money and creating wealth when it comes to real estate is a given and in alienable right so to speak.
Average mums and dads are jumping onto the real estate bandwagon with no knowledge or training in the fundamentals of investing. These folks are fed the myth that using their equity from their family home will miraculously make them into real estate tycoons, all too often these poor misguided souls end up losing the home and everything else in their pursuit of real estate's Eldorado.
To perpetuate the myth these naive investors are advised to hold on to their real estate investments for ten years or longer, this is great in theory if you are in your twenties and do not need the profits in the immediate sh rt term to help fund a decent retirement, unfortunately when you look at the demographics of these investors they are in their fifties with plenty of equity in their family homes most usually own their family home and have neglected doing anything for their retirement till now and in horror discover that they will not be able to have their current lifestyle on the pension.
Little wonder real estate investment seminars are packed with these late bloomers all hoping to make a fortune by investing in residential real estate, the seminar presenters ensure that is all these folks here, after all this is a valuable gravy train.
Try this little trick next time a telemarketer calls and asks you to attend a real estate investment seminar, and the telemarketer asks you if you own your own home and how much equity you have in it, reply by saying that you have none, its guaranteed that before the word none leaves your mouth they have hung up on you, interesting isn't it?
Tragically no one is told when a real estate investment has gone bad or failed to perform as happens on a daily basis with the stock market, why is this so? One of the major reasons are the volumes of money that Governments, Banks and marketers make from selling the residential investment myth, that is also the reason why Governments have been loathe to legislate that investors undergo an investment training program before they can invest, as once the myth is busted the gravy train will not be as plentiful and the flow on effect into allied industries would be catastrophic.
This myth is well and truly busted as you can lose everything from a failed real estate investment and there are no such things as guaranteed growth without doing some work for it.
Ways by Manish Patel to Maximize Your Money from Real Estate Investment
1. Know your profit before you buy
Do your due diligence and find out if the price you are paying is below market value, a simple rule is can you resell this property today for a profit and if so how much.
2. Type of Neighborhood?
The community surrounding the property can change in a variety of ways that can adversely affect your real estate income property. Increasing vacancy, for instance, can lead to reduced rents, which in turn means reduced maintenance causing building deterioration, This can cause a roll on effect if more properties start to decline in the whole neighborhood, compounding the problem.
The nearby construction of facilities such as prisons, sewer treatment plants, and airports will also likely have an adverse effect on the area. Also, perhaps more subtle and slower in coming, is a decline due to increased crime, perhaps resulting from an adjoining neighborhood spill over. If you still want to invest here find out what it is that makes it special that everyone else has ever seen, often gems are discovered with a little digging,
3. Impact of poor or neglected Infrastructure
The impact of being directly under the flight path of airplanes, construction of a major highway or intersection can limit access to the property, cause noise and dirt by the construction and all this can have a negative impact on the property's ability to attract and keep tenants. The end result may be an increase in your investment real estate value, but construction and major works can take up to a year or more and during that time you could expect your real estate investment value to drop. Or worse still the infrastructure is neglected and the local authority does not have the Tax base to start remedial works to bring it up to standard,
4. Controls
Governmental controls and regulatory changes to zoning can adversely impact real estate investment properties. Real Estate investors that purchase raw land for development, for instance, can see their plans grind to a halt because of a building moratorium or anti-development sentiment. All of which results in downturn in value.
5. Finance
Difficulty obtaining finance or the lenders require more of your capital to top up your borrowings, for your rental property if you decide to sell, This type of condition is prevalent at the moment as lenders are devaluing the amount that they are willing to lend against real estate, in most instances lenders valuations or real estate down by up to 30% to 40% of the contract price depending on the region this could be higher again, this trend should alert the investor that the deal they think is great may not be so great after all, unfortunately marketers have this covered as they are dealing with naive and unsophisticated investors by saying that the lenders always value the property for less, if that is what someone lending you money says about your intended investment wouldn't it be prudent to listen and renegotiate or if that is not possible walk away from the deal.
6. Lack of or no maintenance.
If your property is the run down, get it brought back up to a good condition. This will make it more appealing to prospective tenants
7. Pressure to sell
Highly motivated sellers may reduce a property to a bargain basement price and smart investors watch for property owners who must sell to take advantage of the owner's strong motivation to quit the property. Always try to avoid ever reaching the moment when you are forced to sell.
Manish Patel is a Real Estate Entrepreneur and an investor associated with CreamBnb, Wu Status , Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability. He is an excellent oral and written communication skills proven by the ability to successfully manage large projects while working with individuals from very diverse backgrounds.
For more details, please visit here: http://www.linkedin.com/in/mehulp27/
Average mums and dads are jumping onto the real estate bandwagon with no knowledge or training in the fundamentals of investing. These folks are fed the myth that using their equity from their family home will miraculously make them into real estate tycoons, all too often these poor misguided souls end up losing the home and everything else in their pursuit of real estate's Eldorado.
To perpetuate the myth these naive investors are advised to hold on to their real estate investments for ten years or longer, this is great in theory if you are in your twenties and do not need the profits in the immediate sh rt term to help fund a decent retirement, unfortunately when you look at the demographics of these investors they are in their fifties with plenty of equity in their family homes most usually own their family home and have neglected doing anything for their retirement till now and in horror discover that they will not be able to have their current lifestyle on the pension.
Little wonder real estate investment seminars are packed with these late bloomers all hoping to make a fortune by investing in residential real estate, the seminar presenters ensure that is all these folks here, after all this is a valuable gravy train.
Try this little trick next time a telemarketer calls and asks you to attend a real estate investment seminar, and the telemarketer asks you if you own your own home and how much equity you have in it, reply by saying that you have none, its guaranteed that before the word none leaves your mouth they have hung up on you, interesting isn't it?
Tragically no one is told when a real estate investment has gone bad or failed to perform as happens on a daily basis with the stock market, why is this so? One of the major reasons are the volumes of money that Governments, Banks and marketers make from selling the residential investment myth, that is also the reason why Governments have been loathe to legislate that investors undergo an investment training program before they can invest, as once the myth is busted the gravy train will not be as plentiful and the flow on effect into allied industries would be catastrophic.
This myth is well and truly busted as you can lose everything from a failed real estate investment and there are no such things as guaranteed growth without doing some work for it.
Ways by Manish Patel to Maximize Your Money from Real Estate Investment
1. Know your profit before you buy
Do your due diligence and find out if the price you are paying is below market value, a simple rule is can you resell this property today for a profit and if so how much.
2. Type of Neighborhood?
The community surrounding the property can change in a variety of ways that can adversely affect your real estate income property. Increasing vacancy, for instance, can lead to reduced rents, which in turn means reduced maintenance causing building deterioration, This can cause a roll on effect if more properties start to decline in the whole neighborhood, compounding the problem.
The nearby construction of facilities such as prisons, sewer treatment plants, and airports will also likely have an adverse effect on the area. Also, perhaps more subtle and slower in coming, is a decline due to increased crime, perhaps resulting from an adjoining neighborhood spill over. If you still want to invest here find out what it is that makes it special that everyone else has ever seen, often gems are discovered with a little digging,
3. Impact of poor or neglected Infrastructure
The impact of being directly under the flight path of airplanes, construction of a major highway or intersection can limit access to the property, cause noise and dirt by the construction and all this can have a negative impact on the property's ability to attract and keep tenants. The end result may be an increase in your investment real estate value, but construction and major works can take up to a year or more and during that time you could expect your real estate investment value to drop. Or worse still the infrastructure is neglected and the local authority does not have the Tax base to start remedial works to bring it up to standard,
4. Controls
Governmental controls and regulatory changes to zoning can adversely impact real estate investment properties. Real Estate investors that purchase raw land for development, for instance, can see their plans grind to a halt because of a building moratorium or anti-development sentiment. All of which results in downturn in value.
5. Finance
Difficulty obtaining finance or the lenders require more of your capital to top up your borrowings, for your rental property if you decide to sell, This type of condition is prevalent at the moment as lenders are devaluing the amount that they are willing to lend against real estate, in most instances lenders valuations or real estate down by up to 30% to 40% of the contract price depending on the region this could be higher again, this trend should alert the investor that the deal they think is great may not be so great after all, unfortunately marketers have this covered as they are dealing with naive and unsophisticated investors by saying that the lenders always value the property for less, if that is what someone lending you money says about your intended investment wouldn't it be prudent to listen and renegotiate or if that is not possible walk away from the deal.
6. Lack of or no maintenance.
If your property is the run down, get it brought back up to a good condition. This will make it more appealing to prospective tenants
7. Pressure to sell
Highly motivated sellers may reduce a property to a bargain basement price and smart investors watch for property owners who must sell to take advantage of the owner's strong motivation to quit the property. Always try to avoid ever reaching the moment when you are forced to sell.
Manish Patel is a Real Estate Entrepreneur and an investor associated with CreamBnb, Wu Status , Wu-Tang Management. Skilled at negotiating, Manish can quickly assess a given situation and determine the most effective way to represent his client's best interests.
Manish Patel is an exceptional strategist known for analyzing trends to develop long-term strategies, key objectives and operational execution plans based on business best practices as well as maximum growth and profitability. He is an excellent oral and written communication skills proven by the ability to successfully manage large projects while working with individuals from very diverse backgrounds.
For more details, please visit here: http://www.linkedin.com/in/mehulp27/
