As is periodically the case, the California Association of Realtors (CAR) purchase contract has been revised once again. There are new, separate agreements for single family residential and income properties.
Although most buyers and sellers leave the details to their agent, it is beneficial if you have a sense of the latest contract.
Substantiating funds. The buyer is now required to provide the seller with written verification of the availability of his down payment and closing costs. This could include a letter from the buyer's lender, or bank/money market statements. A note from the buyer simply saying he has the necessary resources will not suffice.
If some or all of the funds are coming from others (relatives, friends), prudent sellers will insist on a contingency that they be deposited into the buyer's account soon after the escrow begins.
For most buyers, confirming funds will not be difficult as their lender's pre-approval process would have already verified them. Those who make an offer without loan pre-approval, however, will most likely have a harder time getting their contract accepted.
Ways to back out. Buyers usually have contingencies for financing and inspections, or others, such as the close of escrow of another property. A contingency is a condition that must be fulfilled in order for the contract to proceed. If the buyer is not satisfied with inspections, or cannot obtain the loan within the contingency time frame, he may cancel the contract and request a refund of his deposit.
Despite the buyer's duty to act in good faith, principals to a contract should be clear that buyers have great latitude in rescinding. The buyer must not only be willing to accept the property's condition, but “any other matter affecting the property.”
Thus, noisy neighbors, illegal activity in the area, concern about a shared driveway or a larger than expected expense to modify the dwelling, are only a few of the myriad reasons a buyer may have for choosing not to continue. According to several local legal experts, this latest contract version makes it even easier than previous ones for a buyer to cancel. Needless to say, if a buyer is going to withdraw, it is preferable to do so early in the escrow, thereby minimizing damage to the Seller.
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Monday, August 31, 2009
Renegotiating loans
The economic recession has too many people wondering how they can possibly pay their loans and debts the way they agreed. Too many people have lost jobs or are dealing with a pay decrease, or may even have new expenses they have to meet. These are very stressful situations for everyone. There is some hope, though, in finding that loans can be renegotiated, fees can be removed, payment schedules rearranged, and payments reduced so that paying the debt is manageable once again.
In the absence of criminal liability for debt and debtor prisons, the lenders realize that their options are limited. If a debtor refuses to pay a debt, the lender only has a few courses open to them. Reporting the default to a credit bureau hurts the borrowers credit ranking, but does not necessarily result in repayment. A lender may also resort to seeking a remedy in court, but this process is time consuming and expensive and only makes sense for large loans. Further, a court remedy may not necessarily result in repayment.
Because they are aware of these limitations and the fact there is no guarantee of payment many lenders have become open to renegotiating loan terms and payments. They know that this route has a greater chance of having the outstanding balance repaid. Of course, lenders wish to regain as much as possible from the outstanding loan amount without losing any more money to courts and collection agencies. Negotiating reduced payments and loan terms can make it possible for the defaulting debtor to pay off their debt and begin rebuilding their credit standing.
In the absence of criminal liability for debt and debtor prisons, the lenders realize that their options are limited. If a debtor refuses to pay a debt, the lender only has a few courses open to them. Reporting the default to a credit bureau hurts the borrowers credit ranking, but does not necessarily result in repayment. A lender may also resort to seeking a remedy in court, but this process is time consuming and expensive and only makes sense for large loans. Further, a court remedy may not necessarily result in repayment.
Because they are aware of these limitations and the fact there is no guarantee of payment many lenders have become open to renegotiating loan terms and payments. They know that this route has a greater chance of having the outstanding balance repaid. Of course, lenders wish to regain as much as possible from the outstanding loan amount without losing any more money to courts and collection agencies. Negotiating reduced payments and loan terms can make it possible for the defaulting debtor to pay off their debt and begin rebuilding their credit standing.
New beginning in real estate
A New Year is so psychologically interesting. For many, it's like a pardon from what they didn't get finished. They can close the door on what wasn't and create a new beginning around what they are now going to achieve.
For others, a New Year is the next paragraph in their continuing story. The New Year doesn't bring a new chapter, just a new paragraph to the same story they have been writing for several years. Each paragraph begins with a positive beginning, but soon gets lost in a maze of excuses. Oh, they don't see them as excuses, but they are words designed to make it okay that they didn't get things finished.
For a very few, a New Year is not a new beginning; it is the continuation of the journey they have been traveling. It provides them with more todays in which to fulfill their dream. For this select group, life is not about having to start over. Life is about a today in which they can apply what they learned from their yesterday. This one fact separates them from the masses.
Many of you know I have a mental challenge with the way goal setting is taught. Most of the goal setting teaching allows those who listen to have a reason to procrastinate. Teachers ask the listener to write what they want to achieve in the upcoming year and each day review it.
For others, a New Year is the next paragraph in their continuing story. The New Year doesn't bring a new chapter, just a new paragraph to the same story they have been writing for several years. Each paragraph begins with a positive beginning, but soon gets lost in a maze of excuses. Oh, they don't see them as excuses, but they are words designed to make it okay that they didn't get things finished.
For a very few, a New Year is not a new beginning; it is the continuation of the journey they have been traveling. It provides them with more todays in which to fulfill their dream. For this select group, life is not about having to start over. Life is about a today in which they can apply what they learned from their yesterday. This one fact separates them from the masses.
Many of you know I have a mental challenge with the way goal setting is taught. Most of the goal setting teaching allows those who listen to have a reason to procrastinate. Teachers ask the listener to write what they want to achieve in the upcoming year and each day review it.
Key to real estate success
How did you get into real estate investing? Did you read a book on it? Was it a seminar? A meeting of some sort with speakers selling courses? Did you get really, really jazzed and pumped up by these simple concepts that were delivered to you in parable form from the stage by a charismatic speaker? Did you find yourself levitating to the back of the room, powerless but to slap down your plastic to buy the kits that were being sold there.
Marketing Plan
You’re a Real Estate Entrepreneur or Investor, and you’re out there in the market place looking for deals. I have a question for you.
Are you doing a bit of advertising and just hoping that a deal will fall in your lap, or are you operating in a way that makes certain it will happen. If you don’t have a process for making sure deals happen, you don’t yet understand the importance of having a marketing plan.
The sad fact is that even after all their training, less than one percent of all real estate entrepreneurs and investors actually have a marketing plan. Even though it’s very simple, don’t underestimate its power.
Are you doing a bit of advertising and just hoping that a deal will fall in your lap, or are you operating in a way that makes certain it will happen. If you don’t have a process for making sure deals happen, you don’t yet understand the importance of having a marketing plan.
The sad fact is that even after all their training, less than one percent of all real estate entrepreneurs and investors actually have a marketing plan. Even though it’s very simple, don’t underestimate its power.
Wednesday, August 19, 2009
Real estate investor without assistance
Having an assistant is one of the best investments you’ll make as a real estate entrepreneur. Like all parts of your business (and yes, buying, leasing, and selling houses is a business), they require an investment of your money and also your time. You’ll need to invest a little money in order to hire, train, and compensate them for their services. And, you’ll need to invest some time to help them get the job done right — more in the beginning and much less as time goes on.
In exchange for your investment in them, a good assistant will help you to generate much more money than you are paying (bringing you a rate of return that would make any investor jealous). And, they will save you countless hours for every extra hour you spend developing them.
Although many investors are hell-bent on trying to do it all themselves, or think they can’t afford one, here is a partial list of reasons why you absolutely can’t live without an assistant:
You will do more deals. Marketing is probably the best thing to hire an assistant to do. They will help you to execute advertising campaigns that you just would not have gotten around to doing on your own. They can compile lists, print letters, make calls, stuff envelopes, buy supplies, shop around for pricing, and do plenty of other things that generate leads for you that you would not have had the time or inclination to do otherwise.
You will look more professional. When people receive a call from your assistant, they will know that you are a real player. It makes you look successful, organized, and trustworthy. Your credibility with sellers will increase, which will put them at ease and help you to get more offers accepted. Private lender prospects will acknowledge you as a legitimate business and will feel safer sending money to you knowing that you are not a fly-by-night operation.
You will have less stress in your life. No one likes drowning in work. One of the worst feelings on earth is to have more work due than you can possibly hope to accomplish in the time available. Having an assistant will take a huge burden off of your back, especially when they do tasks that you don’t like doing or are not good at.
You will be able to build a team. Having an assistant will help you to practice your skills at hiring, training, and managing team members. They are the ideal "starter employee" because they are not difficult to find and can immediately begin doing simple tasks for you. And, there is almost always an immediate use for their help. They will help prepare you to hire other team members when the time comes, if you so desire, such as a salesperson, renovations supervisor, or a purchasing representative.
Investment in commercial real estate
If you interested in buying commercial real estate ,you are not alone. There are a lot of people who believe that buying commercial real estate is the best way to make money.But you need to know a bit about commercial real estate before making decision to make a purchase. Any real estate purchase cost a bit of money, so you need to understand lot about the market. commercial real estate is just like residential properties and you should decide exactly what you are in the market for.
You have to carefuly choose from many different type of properties.unless could end up in a property that cost you a lot of money not only now, but also in the long run. So take time to research each property that you come across.Once you know what you are in the market for, the next step is to begin deciding on abudget. This is one of the main areas where people face trouble.
Remember, the commercial real estate properties are quite expensive. In fact, if you are interested in a larger building you may have to spend in upwards of a million dollars. So you need to take time to consider how much you can really afford. Finally, while buying commercial real estate you have to consider the condition of the property.
You have to carefuly choose from many different type of properties.unless could end up in a property that cost you a lot of money not only now, but also in the long run. So take time to research each property that you come across.Once you know what you are in the market for, the next step is to begin deciding on abudget. This is one of the main areas where people face trouble.
Remember, the commercial real estate properties are quite expensive. In fact, if you are interested in a larger building you may have to spend in upwards of a million dollars. So you need to take time to consider how much you can really afford. Finally, while buying commercial real estate you have to consider the condition of the property.
How to buy commercial real estate
If you are interested in buying commercial real estate. First of all you have to choose in which area that you want to buy in.
You have two options while buying commercial real estate.You have to choose between purchasingthe property inside the city or out of it. The thing to remember is that most city commercial real estate cost you more than the properties that are a bit further out. This is not always the case, but most of the time it holds true.When it comes to the actual city or state, again, this is something that you need to decide on your own. If you are buying commercial real estate for your business you have to stay in the same area, and need to search around home. But if you are buying an investment property, your options are a bit more varied.
Using commercial property
We give you three things that you can do with most commercial real estate properties. Of course, there are exceptions, but these are the basic things that you can expect to be able to do.
1. If you buy commercial real estate you will have the ability to use it as an investment. For instance, you can buy a nice property and then begin to rent it out to businesses that need office space. This is a great way to set up a monthly income. And as you can imagine, once you own the property freeand clear you will be pocketing the majority of the money that you collect in rent.
2. Commercial real estate can also be used by you personally. Many companies buy their own office building because they feel that this is a better option than paying rent each month. While this may not suit your needs, if you own a business you may want to consider this option. Not only will you own your building, but this is also a great asset to have once you retire and move on.
3. You can use commercial real estate to open a retail store. You need to have a particular set up in order to do this, but if this is a dream of yours search for the proper type of commercial real estate. There are many locations that give you this ability, and it can be a lot of fun to open a store of any kind.
As you can see, there are many ways that you can use commercial real estate. No matter if you are buying or already own, make sure that you consider the three options listed above. These are some of the best ways that you can use most commercial real estate properties.
1. If you buy commercial real estate you will have the ability to use it as an investment. For instance, you can buy a nice property and then begin to rent it out to businesses that need office space. This is a great way to set up a monthly income. And as you can imagine, once you own the property freeand clear you will be pocketing the majority of the money that you collect in rent.
2. Commercial real estate can also be used by you personally. Many companies buy their own office building because they feel that this is a better option than paying rent each month. While this may not suit your needs, if you own a business you may want to consider this option. Not only will you own your building, but this is also a great asset to have once you retire and move on.
3. You can use commercial real estate to open a retail store. You need to have a particular set up in order to do this, but if this is a dream of yours search for the proper type of commercial real estate. There are many locations that give you this ability, and it can be a lot of fun to open a store of any kind.
As you can see, there are many ways that you can use commercial real estate. No matter if you are buying or already own, make sure that you consider the three options listed above. These are some of the best ways that you can use most commercial real estate properties.
Sales for business
Inevitably - and surely rightly - business men and women take their eye off the ball while they take their holiday break. The business community can at last be human again, spending time with family and friends. The turn of the year marks a universal celebration where we look back at what went before and look forward to the future. Just as inevitable, though, the whole cycle starts again and business cranks back into gear a few days into January.
In early January many business people have one great big cloud over their heads. This cloud represents budgets. The cloud may be darker for some than for others. Many companies roll up their financial year at the calendar year end. Many others have April as their new financial year. If you are in the first category you may be in the process of spending your new budget, careful to ensure it is spent wisely and not all at once! If you are in the second category you will be in the final throws of planning for next year's budget, probably negotiating for this or that project that you just know will bring great benefits to your company.
In early January many business people have one great big cloud over their heads. This cloud represents budgets. The cloud may be darker for some than for others. Many companies roll up their financial year at the calendar year end. Many others have April as their new financial year. If you are in the first category you may be in the process of spending your new budget, careful to ensure it is spent wisely and not all at once! If you are in the second category you will be in the final throws of planning for next year's budget, probably negotiating for this or that project that you just know will bring great benefits to your company.
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