10 tips that turn “House for Sale” sign to “Sold”

10 tips that turn “House for Sale” sign to “Sold”

There are times when a homeowner can take a casual, steady approach to selling a house — and times when, hot market or cold, that house needs to be sold, and sold now. Homeowners can boost their chances of standing out from the crowd, and can entice prospective buyers, with a mix of tried-and-true tactics and smart moves that tap into current trends. What the homeowner can control: Price it right from the start. This isn’t a time to be emotional. A homeowner needs to make sure he’s not factoring in the love and attention he’s lavished on his home — besides the hard value-added dollars and cents. He doesn’t have time to hang around and lower the price in stages. And he also needs to be cognizant of the market in his area. Starter-home sales, for example, may be stifled by a large local population of millennials already saddled with high student debt (a common challenge: In a 2015 study by American Student Assistance,  more than half of respondents, 55 percent, said their student loan debts affected their ability to purchase a home). Declutter. Depersonalize. Prospective homebuyers need to imagine their family in the space, not the current homeowner’s. So the knickknacks, photos, off-season clothes, the floor lamp in the awkward corner? It all needs to go, and the homeowner should consider renting a storage unit to keep it out of the house until she sells. Make sure every room in the house has a “role.” Empty bedrooms can become home offices; awkward spaces on the second-floor landing can become a reading nook or child’s play space. Again,...
Before You Buy a Home, Do These Things

Before You Buy a Home, Do These Things

Buying a home is one of the biggest and most important financial decisions in life. In order for the experience to be as simple and streamlined as possible, these are the things you should do before closing on your new property. Save money for a 20% down payment and closing costs. While it is possible to purchase a home with no down payment or a down payment of as little as 3% of the total price, the optimal target for saving you money in the long run is to put down 20% at the time of purchase. With 20% down, not only will you borrow less money, making your mortgage significantly smaller, but your interest rate will be lower as well, which will save you thousands over the life of the loan. This is because paying 1/5 of the home’s price upfront tells your lender that you’re financially viable for the responsibility of homeownership. Also remember that closing costs will cost you an additional few thousand dollars, so save accordingly in order to be able to complete your home purchase. Make sure your credit is in order. Unless you will be paying all cash, you will need a mortgage to purchase your home. In order to keep your credit in good order, pay your bills on time, especially rent and credit card bills. It is also recommended that you refrain from making any major purchases or taking out new credit accounts for up to two years before purchasing a home so that your credit score remains high and stable. While the FHA minimum required credit score for financing is...
Why Your Commercial Tenant Capacity Is Crucial

Why Your Commercial Tenant Capacity Is Crucial

Whether you’re looking for a source of revenue to fund your present lifestyle or would like to generate income to save for retirement, commercial real estate offers excellent investment opportunities for significant returns of between 6% and 12% of the purchase price, with some returns going as high as 15%. The nature of commercial property creates sizable economies of scale that simply can’t be matched by its residential counterpart. Even a single, small office tower has more tenant capacity than several multifamily homes, allowing you to generate more income from one commercial property than you would from several residential ones. This is possible because a commercial property’s true value lies in its Net Operating Income (NOI), defined as gross income minus operating expenses. Gross income is generated when tenants pay rental fees for the spaces they lease in your commercial property. Therefore, the more units your property has to rent out, the more tenants you will be able to rent to, and the more tenants you rent to, the more net income you will generate. Based on this structure, it is evident that both tenant capacity and actual tenants are also integral parts of a commercial property’s value. Thus, attracting tenants and making sure their needs are taken care of are essential to your investment’s success. Fortunately, filling a newly purchased commercial property with tenants may not be as daunting as it seems. A notable feature of purchasing commercial property is that existing leases will transfer to the new owner once the purchase is complete. Therefore, if the property that you’re looking to purchase is close to fully leased,...
Research & Marketing: The Infrastructure for Success for Distressed Assets

Research & Marketing: The Infrastructure for Success for Distressed Assets

When an owner is forced to sell a property under extenuating circumstances like bankruptcy, excessive debt, or regulatory constraints, it usually goes on the market at a significantly reduced, or distressed, price. This affords others the opportunity to buy it at, or below, face value. As such, the distressed real estate market has provided profitable investment opportunities for many since the 2008 recession. And while distressed properties offer serious potential, the process of turning them into profit is not quite as straightforward as Flip This House and other “reality” series might suggest.   For those looking to create assets from these properties, the best approach is to follow the advice of real estate professionals with experience, who have helped investors at all stages purchase, rebuild, and sell distressed properties. The knowledge—and in some cases the intuition—gained in their experience is invaluable. First and foremost I warn buyers to realize the investment of their time. Getting a fixer upper is going to either take a serious devotion of your own time and labor, or require you to manage the process of the expertise provided by others. Some recommend turning to real estate companies like Mack Co in Chicago. They provide all the resources you need to purchase,  reconstruct, and broker the sale of a property, while barely lifting a finger. While this might seem like a good approach, it requires the commitment of a monthly fee, and may seriously eat into your profits. For those who don’t want to give up a predetermined fee for these services, it may help to hire other experts to whom you can delegate each...
Will Foreign Investments in Distressed Assets Continue into 2016?

Will Foreign Investments in Distressed Assets Continue into 2016?

Distressed assets are any asset put on sale, usually at a lower price, because the owner is forced to sell it. Since 2012, there has been a huge upswing in these types of investments in the European market. According to “Record Breaking Year for European Distressed Asset Purchases in 2014,” 2014 saw €80.6 billion ($91 billion) of closed European commercial real estate (CRE) and real estate owned (REO) transactions. This was more than 2.5 times the transaction volume recorded for 2013. Will this trend continue into 2016? To answer that question, we have to look at how the 2015 market was and the signs we can see so far in 2016. 2015 Market “Record Breaking Year for European Distressed Asset Purchases in 2014” forecasted between €60 and €70 billion ($67 and $79 billion) closed CRE loan and REO transactions for 2015. According to the article, there were likely going to be fewer distressed asset investments in 2015 than in 2014 because many deleveraging processes were almost completed, which would theoretically limit the amount of distressed asset opportunities. In 2015, there were approximately €85.9 billion ($95 billion) closed European CRE and REO transactions. 2015 saw a lot of changes in regulations regarding distressed assets and bankruptcy laws. These changes have made it easier for companies to sell certain assets, which will affect the distressed asset trends in the years to come. The reforms across the European sector are going to be ushering in new opportunities for foreign investments of this nature. The last quarter in 2015 was the busiest of the year, which seems to point towards an eventful 2016...
Does the Stock Market Affect the Real Estate Market?

Does the Stock Market Affect the Real Estate Market?

          The stock market and the housing market are two very different things, however, analysts have noticed a correlation between the two. Why is this? And how exactly does the stock market affect the housing market?          Some real estate agents tend to believe that a stock market slump always helps real estate, and in many ways that may be true. But the answers to these questions are not so black and white. Take for instance times of economic expansion such as October and November of 1987 or times of market corrections such as September 2001 following the terrorist attacks of 9/11; while the stock market took a huge hit, the housing market remained relatively unaffected. On the other hand, when looking at periods of recession, the stock market as well as the housing market were both affected negatively.          So what is the key difference? Well for one, the state of the economy as a whole. In times of economic expansion or market corrections often times MORE jobs are created, which means more people are capable of buying a home; In times of recession unemployment rates rise, consumer confidence declines, and current homeowners choose to hold on to the house that they have rather than sell. Now that is not to say that during times of market correction the housing market is not affected at all, there have been some studies that show that home sales declined slightly during the months following major corrections but this is likely due to the decline in stock assets for many potential...