Real Estate

This tends to be a pretty controversial subject, and for good reason. When I was getting started in the business, I was young and broke and had no credit to speak of. I was not qualified to borrow money, yet I figured out how to buy properties, and I bought a lot of them. It was not long before I became a full time real estate investor, and on paper, I was a millionaire long before my 30th birthday. I accomplished this with a lot of hard work, education and tolerance to take the risk.

With all this said, just because you don’t need money to buy houses, does not mean you should have no money. I am a big, big believer in this. You see, although I was a millionaire at a young age, I basically lost it all when the market shifted. I was too aggressive with my growth, and did not establish an appropriate amount of reserves. After starting over, I structured things differently and am in a good position to not only survive a down turn, but to thrive in it. In this article, I will briefly walk through 4 ways to buy rentals with nothing out of pocket, but want you to understand that this does not mean you should own rentals with no reserves.

Owner Finance: This could mean many things, but for the purposes of this article I am going to assume that the seller of the home is extremely motivated and is willing to basically sell the house just to get away from the mortgage payments. This is commonly referred to as a subject-to transaction because you, as the buyer, will take title subject-to any other liens that are in place. What this means is you get ownership of the house, but the seller is still on the hook for the loan. You as the buyer will agree to either pay off the loan or make payments on the loan on their behalf. If you don’t, the lender can foreclose and wipe you off of title.

The seller is taking a tremendous amount of risk with this type of transaction, so it is difficult to negotiate and they need to be extremely motivated. It works well for you because you don’t need down payments or to qualify for a loan. It works for them because they have someone else making the payments on their loan, which relieves them of the payment pressure, and potentially can improve their credit. As you become more experienced, this is a strategy you will want to look into. This allows you to purchase an unlimited number of cash flowing properties without ever needing to qualify or sign for a loan.

Lease Options: This is the strategy that really worked for me when I was just getting started. I like it a lot because it is easy to explain to the seller and it is not difficult to get them comfortable with it. They still need to be motivated to want to do this, but nothing like the subject-to transactions.

The way this works is you negotiate with a seller of a home to lease the property for a set period of time. I would typically negotiate 10 years on these, but it can be anything you are comfortable with. The rent amount will be set. From there you agree on a price to buy the property for sometime during the lease term. The price is typically locked in close to today’s value. You then sublease the property, hopefully for more than your rent payment, and wait for the value to increase. If the value does not increase, which has happened to me, you can either re-negotiate the deal or let the property go. You have no obligation to buy, so you are not taking the risk of market fluctuation. If and when the value does increase you have several options: You can sell your option, exercise your option and resell the house for your profit, or just exercise the option and keep the property in your portfolio.

Bridge Loans: The idea here is to find a property that needs a lot of work that will make a good rental. You need to negotiate a price were you can buy it, fix it, and roll in all closing costs, and still be at or below 70{19a246d0b70514ffe2f3c335adf718e293a6dd6ccf9978604b56da0a4fc1d5c7} of the after repaired value (ARV). This does not work well unless the property needs to be repaired. This is very different than the first two strategies discussed, and is commonly used with bank owned foreclosures. Although, anytime you can negotiate a great deal will work.

After you purchase the home, you want to get it repaired and get a tenant in place as quickly as possible. You then refinance the loan into your permanent rental property loan. There are some additional details for this to work that are beyond the scope of this article.

Partners: At the time the market was collapsing around me, there were tremendous buying opportunities everywhere. Using the Bridge loan strategy, I was able to pick up a handful of deals that I still have today. I did not qualify for loans, so I brought in a partner to sign on the debt for me, and I shared the deal with him 50/50. Neither one of us put money down, and the properties all cash flow, net of vacancies and maintenance, a minimum of $300 a month. There has also been a tremendous amount of appreciation over the years. The houses have more than doubled in value!

 

Real Estate

“What does affordable housing in Gurgaon, with its high-lifestyle, urbanization, and posh-societies look like?” You may think, given that Residential Flats varies in its meaning for different demographic profiles. Especially in the Indian real estate market, affordable housing has a connotation for housing for the lower income group (LIG), by which they too can enjoy a comfortable living and security. With the incumbent government’s focus on this section and more on the affordable housing, it seems like the real estate sector has been able to get the boost that it had been waiting for of late.

However, there is an important trend that needs to be taken note of before the government claims that its affordable housing project is a success. The term affordable housing, in different contexts, also has a local meaning. According to this, affordable housing includes housing options for a segment of population that can become potential home buyers in a city. If we take this definition into consideration, there is a sizeable population in every city, which although it will not identify with or fall under the LIG, is equally incapable of allotting a large budget for buying homes. It is not only sensitive and cost-wary but is looking forward to finding a house of a decent budget-size within the realms of the city. A typical example is of the residential flats in Gurgaon, which although are well-furnished, but do not still fall under the budget for the middle class.

When we take this population’s demands and needs a little more seriously, we find that there is a dearth of properties in good locations within the city, which buyers can afford. These buyers often have a budget of INR 30-40 lakhs, but more cities including Delhi NCR have a deficit in properties which match this budget range. Usually properties which are around INR 20 lakhs are still on the outskirts lacking good transportation and other facilities required by the urban middle class. This means that there is indeed a requirement for more housing under the affordable housing section, where different demographic profiles can find properties for themselves.

There is an urgent need for developers to come up with budget housing projects in the larger cities. As modern India moves towards development and rising aspirations, affordable housing and the security that comes with it, is increasing. This appears to be a very high opportunity for developers who can count on a boost in the real estate industry. More absorption of the housing projects in the urban cities is also a strong indicator of the socio-economic growth in the country, thereby projecting a positive image. While the demand is strong and only increasing, there are a lot of policy-level changes that need to be introduced.

Not only will the affordable housing for the middle class prove to be a sustainable business model for the future, it will also allow more cities to come up to ranks. More affordable housing projects will assure developers that they do not struggle with inflation or even setbacks in the economy. Another trend that one needs to channelize is that more real estate investors are now eyeing budget and affordable housing projects. Where luxury homes and premium homes find it hard to make it through a rough economy, affordable housing is still on the move. The healthy demand in addition with more money coming in steady from investors means a healthy micro-economy. It is now time for builders and the government to give this proposition a try, ensuring that the overall development of the country happens throughout.

Gurgaon based real estate company’s residential flats in Gurgaon include their massive projects of Solera (Sector 107), Synera (Sector 81, NH8) Andour Heights (Sector 71), Orchard Avenue (Sector 93), Grand Iva (Sector 103), Roselia (Sector 95A), Serenas (Sector 36) and The Millennia (Sector 37D). At present, Gurgaon based real estate company’s Signum project offers retail shops in Gurugram in sector 36, 95A, 93, 103, 71, 81, and 107.

 

Real Estate

Make your fortune in real estate. It is not that hard once you get the hang of it. Real estate flipping can be an extremely high paying career, but I see way too many people give up on it. The turnover in this industry is exceptionally high. I noticed the high turnover early on and have watched to learn why some people kill it while others disappear. This has been important to monitor to help myself and my clients last in this amazing business.

I have been in the real estate field for the last 16 years and my hard money lending company finances around 150 deals a year. Here is what that experience has taught me about being a successful fix and flipper.

Mindset: This is where it all starts. For the last 3 years, I have felt myself fall into a little lull and have realized that this occurred because of my mindset. Your mindset could be a lot of things, but the basic concept is that what you believe will happen… does. Sometimes just convincing your mind that you will hit a goal takes work. Not to mention the work that it takes to actually hit that goal.

Focusing your mind on positivity is a great start, but you really need to believe you deserve the success you desire. Meditation and affirmations are fantastic ways to accomplish this.

Hustle: Nothing is going to be given to you. When I was going through my struggles to hit some financial goals, I had to keep reminding myself of this. Times can get hard and things can feel unfair, but the reality is, no matter how much you don’t want to believe it, you are the only one responsible for your success. I would tell myself this over and over. “If I want it, I need to earn it” I had to get up in the morning. I had to deal with the problem on my plate. I had to stay up late or work on the weekend. I had to put in the work to get the results. Because I decided to be successful, I decided to work hard.

Network: As we have learned. It is not what you know, it is who you know. I constantly try to team up with people smarter than me, that can both help me learn and help me get results. This has resulted in millions in profits. I also feel very lucky to have a network that can solve just about any problem I run into. If I am rehabbing a house and run into a problem, I have a list of people I can call for help. If they don’t know how to help they will know someone who does. I lean on my attorneys, my CPA, partners, wholesalers, and other professionals on a regular basis.

Education: To make my top five list you know I believe this is important in your success. Constant improvement is essential and the exciting thing about this, especially early in your career, is that growth is exponential. As you learn and implement ideas into your business, your business grows at a faster and faster pace. Obviously, for this to work you will need to learn AND implement. Many people learn all about investing and never invest. That comes down to the investor mindset. That’s why, I believe, you need all five of these essential keys to be a great fix and flipper. The good thing is this is possible for everyone, including you.

Access to Money: So, this one might be self-servicing because I am a lender, and this could fall within the Network category but let’s face it, if you don’t have money you don’t do deals. Money can come from many sources including cash you have in the bank, money you borrower from institutions, partners, private and hard money loans. Many times, you will need a combination of these sources to get a deal done or to maximize profits. This can all be learned as part of your education or you can choose to work with a professional that can advise you on the best way to navigate this complicated subject.

 

Financial

VA Loan Plano

Are you a veteran or active-duty military personnel seeking a mortgage to buy your dream home? Good idea! VA Loans are the right mortgage program for you. With this no-money-down opportunity, low rates, no mortgage insurance, and other excellent perks, you can finally make that home purchase you’ve always wanted.

Understanding the basics of the VA mortgage process will give you a better idea of how a VA Loans work. The following are six essential tips to increase your chances of getting approved of a VA Loan Plano.

Check If You’re Already Eligible For A VA Loan

When applying for a VA loan, you need to have proof of eligibility. In most cases, you’ll already be on the VA’s online system. If not, you’ll need to acquire one by mail which can take weeks or months. It would be best to check if you’re already eligible for a VA loan beforehand to make sure you can already apply for a mortgage. However, your mortgage lender can instantly get a Certificate of Eligibility for you.

Score A Higher FICO Score And A Good Credit Report

Aim to improve your score to lock in lower interest rates. Also, make sure to scour your credit report for any mistake or errors and have them corrected before applying for a mortgage.

Ensure Your Debt-to-income Ratio Is Below 41%

Most mortgage lenders will require a DTI ratio of 41% or lower to qualify for a VA Loan. Check your current DTI ratio, and if it falls above 41%, it means you have a high Debt-To-Income Ratio. While you can still avail a VA loan with a high DTI, lowering it to 41% or below increases your chance of landing a VA Loan.

Good Read: Lower Your Debt-to-Income Ratio

Get A Loan Pre-approval

Getting pre-approved for a VA Loan allows you to have a better understanding of your purchasing power. A pre-approval lets you determine how much you can spend, thus giving sellers an impression that you’re a serious homebuyer who can afford the purchase price.

Be Ready With Your Financial Documents

The mortgage application process involves you providing a substantial amount of financial documents. Your lender will use this to evaluate your assets, verify your income and check if you’re eligible for the VA Loan. Some of the documents you will need to provide are your Social Security benefits letter, Military retirement account statement, Accompanying IRS schedules/forms, two years worth of W-2s, 1099s and IRS 1040s, and 30 days most recent pay stubs, to name a few.

Know What Types Of Income You Can Include In Your Va Loan Application.

The following are the types of income you can include when applying for a VA loan.

  • Self-employed income
  • W2 income
  • Part-time income
  • Second job income
  • Seasonal income
  • Overtime pays and bonuses
  • LES income
  • Child support

VA loans are an excellent mortgage option for veterans, active-duty military personnel or other military borrowers. To enjoy this powerful lending program, make sure to take note of the tips mentioned above an increase your chances of landing a VA loan.

Real Estate

Have you always wanted to invest in real estate but don’t know where to start? Here are some of the different areas of the industry that you can invest in:

Areas That You Can Invest In

Residential: these are properties such as townhouses, apartment buildings and vacation houses. Here a person or a family will pay you in order to live in your property. The length of time that an individual lives in your house depends on your rental or lease agreement.

Commercial: commercial real estate consists mainly of office buildings. When you construct office buildings you can rent them to companies and small business owners. Again the length of time that the business owners use your property depends on your agreement.

Industrial: this one consists of car washes, storage units and any other special type of real estate where customers use your facility on a temporary basis.

Retail: it consists of trip malls, shopping malls and any other retail storefronts. When you construct a mall, you can rent it to a person interested in running it or you can run it yourself.

Mixed-use: this is where you combine any of the above categories into one project. For example, you can construct a storied building with offices, malls and residential areas.

Real estate investment trusts (REITs): this is where you invest in real estate trusts. When the mortgages generate profits, you get a share of it.

Tips on How to Be Successful In The Industry

For you to be successful in the real estate business you need to do a number of things:

Involve an attorney: regardless of the area of the industry that you are interested in always involve an attorney. A good attorney will help you in finding the right construction company. The attorney will also help you in writing professional rental contracts.

Neighborhood: the area where you invest in greatly determines the amount of money that you will make from your investment. To be on the safe side always go for a neighborhood that is growing or has the potential of growing.

Run the numbers: many investors assume that when they construct a building they will have a tenant, which is usually wrong. Before you invest in a building you should run the numbers and find out if you will be able to pay the mortgage if the property sits empty. If you find that you can’t be able to repay the mortgage in the event that the property doesn’t have a tenant for a month or two, chances are that you are stretching yourself too thin.

 

Real Estate

All buildings, whether residential or commercial,require adequate ventilation in order to protect the health of occupants in regular circumstances as well as in emergency situations such as fires or other contaminations of the air.

There are several types of ventilation systems, with the two main ones currently in use being natural ventilation and mechanical ventilation. Each of these is distinctly different in its way of working as well as the advantages and disadvantages it brings to the structure it is integrated into or installed in.

The presence of either of these systems is critical for a number of reasons, including the removal of stale air and toxic gases, the replenishing of fresh and clean air in an environment, the removal of moisture, and the elimination of odours, bacteria and excess heat.

Natural ventilation basically refers to any system that does not require the use of mechanical devices to displace air in the structure, instead using organic airflow and openings to draw stale air and pollutants through and out of the building.

In this lies the first of five major benefits that this type of system offers – potentially reduced installation costs compared to its mechanical counterpart. This only applies in certain circumstances however – if an effective system is designed as part of the structure before construction, then the costs are absorbed into the build.

It should be noted that mechanical systems can still offer better value for money where having the maximum surface area available is important for getting the largest commercial return, for example in car parks, some retail environments and other similar venues.

The second advantage to natural ventilation is also budget-related; mechanical installations can be very costly to operate, not only due to the need for fans, but also because of air conditioning units which can increase energy consumption costs by up to 30{19a246d0b70514ffe2f3c335adf718e293a6dd6ccf9978604b56da0a4fc1d5c7} per building according to reports.

On the other hand, more organic ways of optimising air circulation in structures can mean that this cost is practically eliminated, making it a financially-sound long term solution for companies that are looking to economise in all the areas that they can.

It is should also be noted that this type of ventilation is also a great deal greener than mechanical ventilation systems, as it uses significantly less energy to operate efficiently. For this reason, the third advantage of natural ventilation is the fact that it is the far more environmentally-friendly solution out of the two main choices, and is therefore also possibly a real solution for the future.

A fourth benefit that comes with using a more organic and already-integrated ventilation solution in a building is that fact that its rival – the mechanically driven system – requires regular maintenance to make sure that it is doing its job properly and that it meets the relevant healthy and safety requirements.

This is not so true for natural ventilation systems, which do not have as many essential parts that need regular upkeep and replacement on a frequent basis. Although all systems should be regularly inspected to ensure that they are working optimally, costly and lengthy maintenance work is virtually eliminated with this option.

The fifth and final advantage of natural ventilation is that it has been shown to be a popular choice of system with building occupants compared to the mechanical variety. The reason for this is thought to be due to the level of thermal comfort that each choice provides, with many finding that mechanically operated solutions often make a room too cold or too warm.

Conversely, the other option is often able to effectively maintain an ideal temperature, despite the fact that there are no controls apart from simply opening or closing a window.

All types of ventilation systems have their good points and bad points, and the natural solution is no exception. That said, it is an option that brings considerable cost savings, not to mention improvements in occupant comfort and less of a negative impact on the environment, making it a potentially ideal solution for a greener future and a thriving global economy.

 

Real Estate

Every homeowner must do routine maintenance to their home that more or less just maintains its current condition. However, some homeowners decide they want to improve their home’s value and marketability. The amount of value certain improvements cost may not add as much value as the cost to do it.

Homeowner’s are very biased when it comes to their own home, they see the things they have done to it and think dollar for dollar the home’s value should go up with each improvement, this is not often the case. A potential buyer or real estate appraiser may be unimpressed with certain improvements, what you must keep in mind is that what you view as a valuable upgrade may not be the same as what the real estate market sees as a valuable upgrade.

Below I am going to outline Five Renovations That Don’t Increase Home Appraisal Value.

1. Swimming Pools

There aren’t many areas of the world where backyard pools are common place. Before adding a pool think about your neighbourhood, do the majority of properties have pools? Would a potential buyer expect there to be a pool? If pools are not common place in your area and/or have a very short season you likely will not be adding much value to your home, definitely not as much as the cost to put one in. In fact, Many potential home buyers view swimming pools as dangerous, expensive to maintain and insurance claims waiting to happen. Potential buyers with small children could really be turned off by there being a swimming pool. In-ground pools come at a very steep price, my opinion is if buyers in your area would not expect a pool then this money is better spent elsewhere as you are not likely recoup the cost in a sale or appraisal.

2. Elaborate Landscaping

Home buyers and appraisers definitely appreciate good landscaping, but there is a line where elaborate landscaping no longer adds its equivalent in value to what it costs. Keep in mind that the next person buying your home may not want to take on the upkeep work of elaborate landscaping and may not want to have to hire a professional landscaper to take care of it. An appraiser will also only assess so much value to landscaping in their report as not a lot of emphasis is put on landscaping by the market, how often have you heard of someone buying a home because it had great landscaping? sure it is a plus but you are better off to just meet the standard in your area than to get too carried away.

3. Overbuilding for the Neighborhood

It is better to have the other homes in your neighbourhood “pull-up” your home’s value than to have them drag it down. Your neighbourhood plays a large factor in your home’s value, you do not want a large, elaborate, two storey home surrounded by older bungalows. The people that will be looking for that type of home will go to a neighbourhood where it will be surrounded by similar properties. Likewise, it will be very difficult for an appraiser to find similar comparables in your area and this could lead to a lower value being assessed.

4. High-End Upgrades

Most people are on a strict budget when it comes to home improvements, so what they will do is they will pick a room and do a complete remodel adding higher end flooring and fully modernize the room. This is good and I understand the strategy, next time you have some extra funds, pick another room and the same and after 5 years or so your home will be fully updated. But does that full remodel of that first or even second room really add as much value to your home as it costs? My opinion is now, if you full remodel one room and then plan on selling or getting an appraisal the appraiser is going to see the other 80 or 90{19a246d0b70514ffe2f3c335adf718e293a6dd6ccf9978604b56da0a4fc1d5c7} of the home is still dated and would be considered a project. An alternative strategy might be to take all of those funds that you were planning on sinking into an elaborate bathroom and spread them over the whole home, the cost of a full bathroom remodel could redo the flooring and paint throughout the entire home and this would be look upon much more favorably by a potential buyer or appraiser in their assessment of value than you just having one high quality room.

5. Invisible Improvements

New plumbing, electrical or HVAC might be necessary, but don’t expect to be adding dollar for dollar value for their cost. Home buyers and appraisers simply expect these systems to be up to date and in good working order. These items would be considered more home maintenance than home improvements.

The Bottom Line

When spending money on your home assess why you are doing it, if it is purely for your own comfort and enjoyment with no real intent in adding value then go ahead and add that pool. But if you are consciously trying to add value to your home then where to spend your renovation budget requires much more thought. Consider speaking with a realtor or appraiser and ask them where they feel your funds are best spent to improve value.

 

Real Estate

Want to learn how to deal with a low home appraisal? In a competitive real estate market, a home being sold may enter into a multiple offer situation which could potentially raise the purchase price above the comparable sales in the area. In a situation like this, it is possible that the home appraisal for the buyer’s mortgage lender will come in lower than the purchase price. In a real estate market that favors buyers (home prices are soft or declining), sellers can also face a home appraisal that is lower than what they paid for the home if they bought the house at the peak of the market. Be aware that a low home appraisal can happen in any type of real estate market.

Why Do Low Appraisals Happen?

Here are a few reasons why a home appraisals may come in low:

  • Inflated home price because of multiple offers.
  • Declining real estate market due to a large inventory of homes and not enough buyers.
  • The seller has overpriced the home.
  • The real estate appraiser lacks experience and doesn’t understand the influences on value.
  • The real estate appraiser incorrectly selected his comparable sales for his report which may have resulted in a lower home value than what should have been assessed.

Solutions for Low Appraisals

If a low home appraisal is threatening to sink your sale, purchase or refinance, stay calm, here are a couple solutions:

    • The buyer can pay you the difference between the purchase price you agreed upon and the appraised price in cash, you can sell the property for the appraised value and get the difference from the agreed upon higher price in a lump sum cash payment if the buyer is able to do so.

 

    • If you are the seller of the home you do have the option of lowering the selling price. If you don’t you will run the risk of every buyer running into the same problem and not being able to get a mortgage because of a low appraisal.

 

    • The seller can offer to carry a second mortgage for the difference.

 

    • If the buyer feels they absolutely have to have your home and you are not willing to lower the selling price and the buyer cannot come up with a lump sum to pay you (as mentioned in option 1) you could accept having them make payments to you over a period of time instead of the lump sum.

 

    • Get a second opinion, have the buyer ask the mortgage lender for a list of their approved appraisers and select another company on this list and hope for a higher value, you could end up wasting another $300 on an appraisal but appraisers are not perfect and a mistake could have happened.

 

  • Cancel the transaction.

Have your realtor put in your purchase and sale agreement a loan contingency that if the home appraises for a lower value that you will get your money back (if you’re the buyer). If you are a seller being affected by a low appraisal propose on of the above options to your buyer if you would like to try and salvage the transaction.

 

Real Estate

In today’s world, we are often over – loaded with statistics, data, etc. Some of these might be relevant and significant, while at other times, they may be over – reaching, misleading, or unnecessary! We often hear or read discussions regarding mortgage interest rates, so – called – housing starts, number of mortgage applications, and the number of houses on the market, etc. Often, discussions focus on seeming to need to label the real estate market, either as a buyers or seller market! While there may be times these are valuable indicators and information, like most data, the skill is in how well one can interpret these, understand them, know what the numbers really mean, and how to use them. Let’s review 4 examples of how statistics are related to real estate, etc.

1. Average or median price: The first thing to understand is the difference between an average and a median price. Average means one adds up all houses sold in the specific target region, and dividing by the number of sales. Median, on the other hand, is listing all the sales prices, and the one in the 50 percentile, is the median price. Simply stated assume 10 houses sold are reviewed, and 2 are sold at $500,000; 2 at $600,000; 1 at $750,000; 2 at $900,000; 2 at $1 million; and one at $1.5 million. In this sampling, the average price is $757,000 and the median price is $750,000. However, why is this information important, since if the sampling is not large enough, wouldn’t it depend on which specific houses sold, whether there was more strength at the higher or lower end of the market, etc. When pricing is discussed, it’s important to put it into perspective, and see the number of units compared in both periods of time.

2. Housing starts: This refers to number of new builds in an area, but doesn’t it make sense, to also consider how much empty or available land/ property, might be available to build on. Always put all statistics into some sort of perspective!

3. Mortgage applications: Are these predominantly for new mortgages or refinances? Are they conventional mortgages? Might it also be important to look at the term of the mortgages? Shouldn’t we also look at the criteria being used, and how many/ what percentage, are approved?

4. Houses on market: It is generally considered a buyer’s market when there are significantly more houses on market, than buyers, and a seller’s market, when circumstances are reversed? Look at the inventory of houses being offered, and the locales. How long do they seem to be staying on the market?

Like in most things statistics – related, it is important to know and evaluate what things mean, rather than making false assumptions, and/ or speculating. Beware of statistics, because they might turn out to either be your friend, or enemy!

 

Real Estate

When people usually think of real estate value they think of two forces; supply and demand. Yes, this is correct; however supply and demand only fall under the one of the four main categories that drive/depress real estate value. Supply and demand fall under the economic category of influences in real estate value. The other three include; social impact, government subjection and environmental forces.

When looking at social impact, there are a few things one would want to consider determining the effect it will have on real estate value. Most of all the value would fluctuate accordingly with population characteristics. This tie into the potential for demand in the economic section of value; the more demand, the more value a property can derive. Population however should be looked at in more depth by breaking down the sample by age and gender, rate of household formation and partition, as well as analysis of the social values such as education, law and order, and lifestyle preferences. Careful consideration of these factors will help establish trends in what would be reflected in real estate values.

Next is the government subjection, accounting for a large aspect of real estate value. This includes political and legal activities on several levels of government. These government influences have the power to overwhelm natural market forces such that you would find in the economic category. Government has their hand in providing facilities and services that affect values as well as a one of the main contributors to patterns of land use (zoning, by-laws, etc). The following are some things to look out for when assessing the government subjection of a market; fire and police services, garbage collection, transportation arrangement, utilities, zoning, building codes, health codes, and fiscal policies. Also the legislation that is set forth by the governmental factor must be accounted for, this would include; rent control laws, rights to farm, rights for managing forest, rights to agricultural land, restriction on ownership, new development laws, control of hazardous and toxic materials, and laws affecting investment power, loan terms, and mortgage lending institutions. All in all this is quite the category and its understanding will provide for a great idea of where values are currently and where they are headed.

In addition to the social impact, as well as government subjection, the environmental forces also play a part in real estate values. These can be natural or man-made and are analyzed by observing several aspects. Climatic conditions (snowfall, rainfall, temperature, humidity) would be an obvious one that would affect the values of building somewhere as well as maintenance and carrying costs, as well as the quality and type of build. Topography, soil and consideration of any toxic contaminants would also be of great importance as well as natural barriers, such as rivers, mountains, lakes, etc.

Just to get out of the 4 factors of real estate value; it is important to mention that there are some overlying factors that would be part of 2 or more of the categories. Once such factor is location, this is the link of a property in time/distance to any given origin or destination of a resident/user of the property. Location could fall under for environmental and economic, if not all categories. Due to the area and property type, properties access to public transport, schools, hospitals, stores, employment, suppliers, recreational and cultural facilities, parks, and places of worship would of importance.

This would also lead us back to the economic factor of influence on real estate value. The fundamental aspects to look for here include: employment, price levels, wage levels, industrial and commercial expansion, mortgage credit availability and cost, stock of vacant property, stock of improved property, occupancy rates, construction costs and rental/price trajectories of existing properties.

And there you have it, the 4 major pillars of real estate value; social, governmental, environmental, and economic. Taking a deep look at each of these sections one would assemble the entire spectrum of current real estate values and more importantly future real estate values.

 

Real Estate

Real estate management is not that easy, especially when you have so many things to think about. With the right real estate software, however, you will be able to make the management process easy and smooth so you can run your businesses without putting in too much effort. The best thing about the solutions is that you can customize them to match your exact property needs. Software programs designed for estate industry are scalable so you are able to grow with them as your business continues to grow. There is so much you can do with real estate software and they include the following.

1. Manage contacts

Using the best software program, you can manage details of contacts in defined groups making it easier for you to access them any given day. A good program will also make it possible for you to maintain detailed information of customers and clients and even automate good wishes on their anniversaries, birthdays and other celebrations.

2. Manage employees

When you have software for real estate, you can easily have a number of users working within one account. This you can do by creating multiple employee logins and hierarchies according to your organization structure. It makes allocation and execution of work easier by everyone from admin to managers. Using the system you can also manage daily reporting of your employees and at the same time monitor their performance. They on the other hand will be able to schedule property inspection, meetings and task reminders making task execution more efficient.

3. Integrate real estate portals and websites

From your CRM account, you can control your website so you have an easy time keeping it up to date. The estate management solution makes it possible for you to create and integrate web portals where you list your properties directly. You can publish projects from property software to website and build a reputable brand using professionally designed real estate websites. This kind of coordination promotes consistency in your real estate business and this will favor your management processes and improve your brand image.

4. Maintain reports and analytics

As a serious estate business, you ought to keep up with what matters most to the business. Using the best software for the real estate industry, you can easily fetch yearly, monthly and daily reports of enquiries and properties. Using the program you can pair matching reports for properties and open enquires and even categorize the enquiries by source. You can also keep abreast of all pending activities so you do not leave anything of importance out.

5. Manage rent and payments

Using your software, you will be able to archive all payment information on your properties, automate lease endings and payment collection reminders as well as schedule convenient payments. The program also makes it easy to get complete payment reports and will ease out the process of generating and sending receipts to all your clients across the platforms.

 

Real Estate

This is an activity that is purposely done to misrepresent information on real estate documents. It also involves the money transfers. It is also called mortgage fraud. The reason that it is referred to as this is that the fraud generally takes place with the mortgage application. Real estate fraud, in the United States, can have heavy penalties like imprisonment and large fines.

Such a crime can be committed in many different ways. It appears to happen more often when property prices are on the rise. Because of the simplicity of the fraud, some types are seen more than other frauds. Some are not as common because they are more complicated. One of the common forms of such fraud, according to the IRS is preparing two settlement statement sets that are different from each other. In one of the statements, the accurate property-selling price is written, which the buyer receives. The other one will depict a higher selling price that is exaggerated. When the mortgage lender approves the loan for the exaggerated price, the seller is given the amount that is stated in their copy of the settlement statement. The one who committed the fraudulent settlement statements will keep the money that is left over. If there are other conspirators, the money will be divided among them. It could be the entire excess money or a percentage of it.

Using qualification that are fraudulent is another type of real estate fraud. These fraudulent qualifications are used when applying for a mortgage or home loan to help them get the mortgage. In this form of real estate fraud, the real estate agent will usually assist the buyer. The fraudulent qualifications can include fabricating credit reports or history of employment. These two involve the obvious misrepresentation of data but not all real estate fraud is easy to see as these two examples. If buyers who do not intend to commit real estate fraud because they do not know the laws can accidentally commit mortgage fraud.

If a buyer has a down payment by using money that was given as a gift it is legal. If this gift is re-paid to the who gave the gift, this is considered a case of real estate fraud. The gift used to make a down payment cannot be repaid for it to be legal. Another type of property fraud is when the buyer accidentally fails to disclose any financial liabilities on their mortgage application. It becomes fraud when it is not taken care of before the loan is approved. Property flipping can become real estate fraud if you make false representations about the value and condition of the property when you sell it for a much higher price than you paid for the property.