What Is A Buy/Hold Strategy?

  

Hi Prospects & Friends!

Whether you're analyzing residential or commercial properties, certain properties make more sense to use the buy/hold strategy. A buy/hold strategy is a technique applied, when a property makes more sense to just hold it to reap the profits longer term. These properties maybe;

• Raw land
• Revitalizing communities
• Rental properties 
• 1031 Exchanges
• Apartments

All properties are very different, and carry different characteristics, and when applying this to economical factors, the buy/hold strategy comes into play immediately when these key factors join together. A buy/hold strategy wouldn't make sense if you're needing the appreciation and the equity from the properties immediately short-term, since you would also trigger capital gains taxes, and recaptured depreciation disposing the property short-term. Buy/hold strategies also don't work great for everyone, since you need to know in advance how long to hold the property, before you purchase it. Best key factor to decipher is know why you're buying the property, and then apply this to the economical factors to see if it falls better in a buy/hold strategy.

Mortgage Interest Rates

 

 

Hi Prospects & Friends!

Mortgage interest rates are still currently much higher than they were awhile back. This doesn't mean if you're currently still sitting on the sidelines to still sit there. If you're concerned about the interest right now, try buying down points technique and get your rate to what you want. If you can afford to buy down your points, and the costs you pay are worth it in the long run, versus sitting on the sidelines hoping the mortgage rates will come down, then you should proceed with this technique. The lower your mortgage interest rate, the lower your loan will be in interest, as well as your mortgage payment. When you buy down points you can have;

• Good credit 
• Bad credit 
• No credit
• Cosigner 
• Partner

It doesn't matter, since you're paying to buy down your rate anyways. The buying down your mortgage interest rate isn't for everyone, so do your due diligence in advance on this unique real estate loan option. Sitting on the sidelines hoping mortgage interest rates will come down, could actually be costing you hidden jewel opportunities in the real estate industry.

Real Estate Notary

 Hi Prospects & Friends!

Ever Google a search for a notary, but really need a real estate notary? Well time is on your side if you've discovered this blog by accident. We all will either need a Will someday, or will know someone related needing one. Majority of Wills need a notary signature, if their written correctly, and the best option is to get your Will notarized by a real estate notary. Real Estate Notaries focus on real estate related documents, including notarizing Wills, so key here is making sure you locate the proper one, who will be able to notarize your real estate documents appropriately. 

What Is A Property Manager?

 

 Hi Prospects & Friends!

Property managers manage and oversee the properties they manage whether residential or commercial properties, and they all have tenants and these managers are responsible for managing them and the properties these tenants are leasing. Property managers can be an:

• Individual
• Company 

It all depends on the person managing the property whether they're a individual or a company. Majority of property managers are companies, while there are some property managers who work independently as individuals to their rentals. Either way the tenant/landlord rules don't change, because the property manager is acting solely as an individual property manager or as a property manager with a company. So understand these key facts here, and you will fare well with understanding these differences. 

Facing Foreclosure

   

 Hi Prospects & Friends!

Year end is near, and many of us are ready to start the New Year off right. Some of us are tangled up in foreclosure or facing foreclosure, and have very limited resources or sources to save the property. The best thing one can do is learn your foreclosure timeline in your state, and once you get that information, then next contact your lender and either;

• Reinstate your loan
• Modify your loan
• Sell your home

If all else fails and you can't get the money fast enough to reinstate the loan, or get the application done quickly and timely enough to the lender to do the modification, then sell the property. What you don't want is the sale date to post with an actually date, because by then things will start to escalate with the lender and their foreclosure process, and your timeline will get more aggressive with how to get out of the foreclosure, and not lose the property.  So key here is to know before you contact the lender, what you're planning to do to prevent the foreclosure, and don't wait till you're told you have a sale date to take action. 

Over Pricing Your Property

  

 Hi Prospects & Friends!

Over pricing your property isn't a good idea at any given means, and it's even a worse idea if you end up in a bad market while doing it. We all want the best price for our property, but in reality market conditions actually have much of a bigger influence on what our property is worth versus what we think. You can make top notch repairs and improvements to your property, but it's a waste of money if your selling it in a bad market with:

• Neighbors and close by markets discounting their properties for quick sales.
• Foreclosures, shortsales, and loan modifications occurring more than normal proximate to your property and nearby market areas 
• Investors buying properties as is to buy just to remodel and rent right back out. This technique actually profits the investor owner doing this, but it devalues the next owners property if the investor decides not to sell the property fixed up. Example would be the investor buys a property in your market area as is and pays cash, while decides to remodel but not resale for immediate gain, but rather wants to lease property back out. Well this sales comp will affect the other property values, because it was bought as is, and it can't be ignored when analyzing your property values if it's comparable. If it's not comparable then it won't affect you.
• High Mortgage rates 
• Been rezoned in a 100 year special flood zone, or in any flood zone. This will discount your property no matter what remodeling you do. Best to know if your property is in a flood zone before you buy it, so you can discount it then.
• In a unrestricted community, but has some laws restricting certain business uses. This can really affect a properties value if you didn't research the property when you bought it. Example would be Sam bought his property 15 years ago. It was nonconforming and grandfathered in, and he has decided to sale it as a commercial property, which has allowed him to realize a 50% gain. Well new buyer decides to make offer on property thinking they will be able to use it as a daycare, but when buyer receives the updated zoning and deed restrictions they're informed they have to use it as is in it's nonconforming grandfathered use or tear down and use as SFR. Current owner realizes this issue will discount his property if appraised, and pulls off market and decides to rent out until get approval from their zoning committee to get rezoned as commercial, and hope it gets approved. 

These are just a few issues listed that could affect a already over priced property. Key here is to always factor in market conditions, and research the property thoroughly before you decide to sale it. Properties change just like anything else. You could be just fine while living in it as you have or even using it as commercial, but if things have occurred under your radar you never knew ocurred, you could affect your own properties values, and not even know it. No one wants their neighbors going to board meetings with a majority vote blocking other neighbors from doing things to their properties they thought they were allowed to do in the past. Attend those meetings, and if can't stay on top of the changes in your community. I recently ran across a MLS property where it went from $800,000 and reduced to $425,000. The agent said in comments "discovered bylaws have changed the use on this property and it's residential and can't sale as commercial like thought". Well I bet the seller is quite angry about this, since it's a lot money that they lost, but like I said research and stay alert with your community while don't overprice, and all will go well. 

Buying A Restaurant Business

 

 Hi Prospects & Friends!

Buying a restaurant business can be a great business endeavor if you know the aspects and handlings of the restaurant business, as well as have the appropriate assistance. When buying a restaurant business some things to take into consideration for analyzing as well as who would possibly needed to be hired would be:

• Financial Statements, Balance Sheets, Income Statements
• Appraisal of the business fixtures, and the business to make sure you're not over paying for it.
• Real Estate Attorney
• Real Estate Broker
• Business Broker
• Inspector
• Lender
• Insurance Company
• Title Company

Depending on your particular situation for your restaurant business, as well as where you're within your negotiated contract, you may not need all these items listed, but it would be wise to make sure you do realize having any of these will allow for your contract to go smoother, once you pin point who will benefit you better in your restaurant business contract. So in conclusion buying a restaurant business doesn't have to be difficult, if you know who you should be approaching to assist you from the very beginning.