Real Estate Post

Nowadays, the US economy is facing one of the biggest recessions of all time. The real estate market is in a slump as well. But, like everything, it is not permanent too - there is nothing permanent except change.

Even in this condition, there are many areas where the property business does not have any bad impact as such. Though, now market is a buyer’s market, but you can still sell and buy properties and earn a very good profit. It is important to understand that prime location properties are always in demand.

In this cutthroat competition, you have to be alert and act quickly as a good opportunity would not last longer - there are thousands of agents waiting for good opportunities in the market.

What businessman wants?

Every good businessman wants to buy a property at a low price and wants to sell it at a high price. This is the ideal time to buy good properties as their prices are low - a buyer can get very good profits once the recession period is over.

Look around for Properties

Always look around for those properties which are in the market for some time as usually their sellers are tired of waiting and ready to sell them at a negotiated or low price. Don’t buy or recommend those properties that require a lot of maintenance work.

Moreover, if a house needs some minor repairs, get it done before calling the potential buyers for visits; always make the house as presentable as possible.

Nevertheless, you can buy or recommend a property that requires some maintenance work - in such cases, you can get the work done on your own in only a few hundred dollar, on the other hand, you can get a good discount from the seller.

Research is Key

Always do research about the neighborhood properties prices; it would help you in calculating the price of the property you are planning to buy. In addition, preference should be given in buying well-to-do neighborhoods. If you buy a property in run-down neighborhood, you might have to bear the loss - don’t invest money in the run-down neighborhood.

Keep researching about the home you want to sell. Ask the owner about the history of the home - it might give you some good points that will help you in designing the sales pitch of the home.

Regardless of your working style, whether you are working as a part-time or a full-time real estate agent always try to attend seminar and conventions so that you can gain the knowledge of the current market trends and interact with other agents - you might get some customers over there too.

Make yourself as vocally expressive as possible. You should be a people friendly person. Never brag in front of your customers as it creates a negative effect - people are not mad these days, in fact, they are very well aware of the market.

‘House for Sale’ board is not ENOUGH

Remember! Only posting a board with the wordings like “House for Sale” does not do the job effectively. Always complete the paper work of the home so that it would not delay the selling process - it would also help you in improving your image as the customers don’t want delays.

In the end, we can say that if you follow the aforementioned tips, you will certainly improve your impression among other real estate agents and potential customers; and eventually, you would be able to do more business.

Undoubtedly, Miami is a spectacular city known for its prevalent urbanization and beautiful environment. The city may seem like just another tourist spot, but it is constantly trying to prove that it can also be a good place for permanent settlement.

Miami is sectioned into different neighborhoods, each of which represents a vital role in comprising the diversity of the city. The wide array of beaches that resides along astonishing skyscrapers is one of the major factors that attract people to inhabit the metropolis. In regard to that fact, the Miami real estate shaped an outstanding activity in the market, although a smooth sailing was something they were unable to attain.

Within the last 10 years, the Miami real estate market has experienced both an increase and decrease in the Market value change, which was caused by many factors. One cause is the poverty of its citizens, which brings about the fact that Miami was named as one of the poorest city in America which was primarily caused by the downward spiral of its government in the year 2001 due to the disorderly behavior of the city’s officials. In this regard, more scandals can be entailed with its government; like unusually high taxes and poor sanitary and police services. These scandals somehow drove away investors and potential residents impaling its economy, including the Miami real estate market.

With a massive amount of struggle, the Miami real estate market flourished in the year 2005. Notably, immigrants from South America who were able to purchase housing units in the city caused a great deal for the market’s growth. Many people wanted to relocate to the city. Also, demands for housing units became very high due to the international market’s desire to invest on Miami real estate. Housing units were selling out within just days and everyone was making astounding profits. More buyers preferred purchasing condominiums making real estate developers focus on the particular housing unit. During that year, pre-construction arrangements also became in demand, causing its economy to somehow recover from the past year’s adversities.

During the year 2007 however, Miami’s real estate market had an unfortunate downfall. Speculators were trying to search for quick profits through endorsing their investments to other speculators telling them that the housing units can generate high short-term returns, and as the process continued, later investors were unable to find buyers who were willing to purchase the housing units because of the unreasonable increased price. Excessive supply of housing units also became a problem to the Miami real estate market. These factors caused the sales of housing projects in Miami to stop. Many investors were forced to sell their housing units in prices that are lower than they were hoping for. Other than being sold, some other housing units were foreclosed, which entails the fact that Miami was ranked as the 8th city in having the most foreclosure all across America.

Tips for Homeowners on the Brink

In a tough economic climate, many Americans are choosing to just walk away from their mortgages. Is that a good idea?

Mortgage rates are skyrocketing. Credit is locked up. Economic pressures are rising. Time to bail on that McMansion?

Some homeowners who are three months to a year behind on their mortgages have chosen to leave their homes altogether. Anyone can walk away from a house—even a retired baseball great, Jose Canseco, who abandoned his Encino (Calif.) property earlier this year.

But attractive as “just walking away” may seem to a homeowner at the end of his or her financial tether, leaving a property to the mortgage-holder or other interested parties carries a serious credit risk and significant legal responsibility.

“The first thing you should think about is where you are going to live,” says Benjamin Brown, a partner at law firm Cohen Milstein Hausfeld & Toll. “You can always move back in with your parents, but it is better to just make an arrangement with a lender.”

Forbearance Vs. Forgiveness

It is a good idea to call the person you may least want to talk to: The lender. Cash-strapped homeowners can get forbearance from their lender if they act early. This agreement reduces or suspends the mortgage payment for a limited time, giving homeowners a temporary reprieve.

A forbearance is not the same as loan forgiveness. Ultimately the mortgage payments have to be reinstated, and anywhere from three to six months of missed payments have to be accounted for. The very lucky—and reasonably well-off—can pay off the amount accumulated during forbearance in one lump sum. But for those who still find themselves in short-term financial trouble, most lenders offer specialized payment plans in which the borrower agrees to add a portion of the missed payments to the mortgage until the account is current.

“Lenders want to have borrowers tell them what is going on,” says Traci Rollilns, partner at law firm Squire, Sanders & Dempsey. “It is cheaper to work with borrowers than it is to foreclose.”

Speaking directly to a lender seems logical enough. But surprisingly, homeowners who struggle and fail to meet their mortgage payments month after month rarely contact their lenders. And the further they fall behind, the less likely they are to reach out for help. “Some people ignore their lenders if they cannot make their payments,” says Brian Sullivan, a spokesman for the Housing & Urban Development Dept. (HUD). “They do not answer their phone. They throw the notices away. And then the house is in foreclosure.”

By then, just walking away becomes much more attractive than trying to pay a loan for more than a house is worth.
A Drastic Step

Walking away has not reached epidemic proportions yet. A survey released in June by You Walk Away, a Los Angeles company that advises people whose homes are in foreclosure, shows that fewer than 1% of homeowners nationwide have abandoned their foreclosed properties rather than make arrangements to pay off the mortgages. While Jon Maddux, principal and co-founder of the company, acknowledges that abandoning a home is not always in the best interest of cash-strapped homeowners, he argues the long-term rewards for doing so far exceed the risk.

“Walking away from a mortgage severely damages your credit,” Maddux says. “But if you pay off your credit cards, get debt-free, and rebuild your credit that way, the foreclosure is gone after seven years. We’ve seen some of our clients’ credit scores improve by 100 points after foreclosure.”

Perhaps such a drastic step may help some homeowners. But even in the current housing market, those cases are few and far between.

“We are seeing more and more people who blame the market,” says Anthony Casareale, an attorney with Akerman Senterfitt’s distressed property practice. “There are those who abandon their homes and think ‘I’ll live to fight another day.’” But chances are, the people who are desperate enough to walk away from a house will never be financially secure enough for that brighter day to come.”

Preventive Measures

Tighter lending practices and new legislation directed toward mortgage lenders could help revitalize the flagging market. But in the meantime, there are some quick and easy ways for homeowners to prevent mortgage difficulties from ruining their financial future:

• Contact either an FHA-sponsored or independent loan counselor to help you negotiate with your lender.

• Ask your lender about loan modification or changing the terms of the home loan.

• Find out if you are eligible for a partial claim, a one-time interest-free loan that will allow you to bring your account current.

Homeowners across the country are struggling to hold onto their investments amid a weakening labor market, rising inflation, and a sluggish economy. They may not always succeed, but by maintaining contact with lenders—and seeking out assistance from private and government entities—at least they have a chance.

“There are always options for homeowners,” says Meg Byrne, director of HUD’s Office of Single Family Program Development. “Nobody wants to see a neighborhood made up of boarded-up houses. And nobody wants to see anybody thrown out of their home.”

Source: businessweek.com

Vancouver super hot real estate might be coming to a stop, but there is still a perfect chance for some Vancouverites to make big money. Olympic Games is a proven money making machine for cities around the world, and Vancouver is not an exception. City residents who are willing and able to rent their properties for the Olympics can go for a nice vacation and make a fortune at the same time.

According to Vancouver Olympic Committee (VANOC), only 30,000 hotel rooms will be available for the games, and 20,000 of them are already reserved by VANOC. Not only that, but VANOC is considering bringing a cruise ship to Squamish area (between Whistler and Vancouver) to provide additional 1,600 beds to guests and participants. Just to give you an idea of how many people will be attending the games - 1.6 million tickets will go on sale in early October 2008!

Where do you think the remaining hundreds of thousands visitors to Vancouver will stay? There is an obvious answer: they will rent a place from Vancouverites who are willing and able to provide accommodations to city’s guests. It’s a simple economic law that demand increases the price, but for how much do you think can you rent the average property in Vancouver during 2010 Winter Olympics? The answer comes from several websites that specialize in property rentals for the games.

The minimum price that we could find was $500 per night, and that would get you a very modest one-bedroom apartment in the suburbs of Vancouver. More desirable properties in good locations can easily go for $2,000 per night or more. If you own any rental properties in Vancouver, you could make quite a good profit in a short period of time if you advertise effectively, and select carefully among many potential short term renters.

So what is the best way to advertise your property? There are several websites that are dedicated to 2010 Winter Olympic Games property rentals. You can easily Google them, or check out our website for more information.

When I was working in real estate, there was one characteristic or skill that was most important in helping me achieve high production in sales while working a four-day workweek. This one skill allowed me the opportunity to develop the others that were necessary for success in sales. You are probably what that one characteristic is that is above all others — it is Time Mastery. If we learn to master our time, and understand the value of time, we can change the outcome of our life.

Time is truly our most precious resource. The famous writer, Jean-Louis Servan-Schreiber, wrote, “Unlike other resources, time cannot be bought or sold, borrowed or stolen, stocked up or saved, manufactured, reproduced, or modified. All we can do is make use of it. And whether we use it or not, it nevertheless slips away.” It truly is how we use it to our advantage that makes the difference. How effectively are you using the time you are given? Are you performing the high payoff activities in your day?

Many people may be asking, “What are the high payoff activities in real estate?” These are the activities that pay you exceedingly well per hour. They also happen to be the activities that only you can do. Your assistants will never be as good as you in all these activities. Because of your skill and ability, you’re the one who has to do them. If your staff were as skilled as you … they would not be working for you. They would be Agents on their own.

In real estate there are about a half dozen things that are high payoff activities. They are lead follow-up, prospecting, listing appointments, showing property, and writing and negotiating contracts. How much of your day is spent in these activities? The truth is no one will do these activities better than you. If you have staff, once they get markedly better than you in these activities, they will often leave you and go on their own. The highest pay per hour is contained in those half dozen things. Low payoff items have a tendency to push out the high payoff activities. They try to fake us out that they are important. Have you ever had a day where you left the office and felt like nothing got done? You just spent the day in low payoff activities. The low payoff day is like being in the twilight zone all day. You were present in body, but nothing got done.

To ensure you do high payoff activities daily, block them into your schedule. Create a specific time slot for prospecting daily. Make a time for lead follow-up daily. Schedule them both in and be militant with keeping other low payoff activities out of those slots. Turn your cell phone and pager off during those time slots, and then you can focus with intensity on prospecting and lead follow-up. If you just spend one hour a day prospecting and a half an hour to one hour doing lead follow-up daily, that will solve any production problems you have in your business, and you will gain quality time with your family. Find those times and block them in today.

The next step to time mastery is learning to do first things first. Too often, we spend time on the wrong tasks. Before you leave for the day, make a list of tasks that you need to do. To be highly effective, we must set up tomorrow before it comes. You will save ten minutes of execution for every one minute of planning you do. Then take the list and prioritize from most important to least important. I will give you a hint … the hardest thing that needs to be done is most important. When you walk in the office in the morning, start with #1. Work on #1 until you have it completely done. Then you can move on to #2. We often lack the vision to prioritize. We work on ten things at once, never completing anything. This causes frustration and low work output. Focus on the most important task. Focus always comes before success.

It is very easy to get distracted by clients, prospects, or other Agents. You must win the game of distraction. We all have distractions daily. It’s what we do with the distractions that come our way that matters. The difference between a time waster and a time master is the length of time it takes for that person to get back on track. For a time waster, it could be hours, or even days, to get back on track. For a time master, it will be minutes before he is back on track.

People who control time earn more money. Time was designed to serve us … not be served by us. Many people feel that time is money. Israel Davidson said it well when he was quoted, “Time is infinitely more precious than money, and there is nothing in common between them. You cannot accumulate time; you cannot borrow time; you can never tell how much time you have left in the Book of Life. Time is life … .” Use it well.

Source: realtytimes.com

If you’re looking for affordable houses that will produce solid rental cash flows for long-term holds, check out the Midwest. That’s the word from the latest national “investment affordability” rankings by Port Real LLC (Port Reel) — an advisory firm that provides risk-reduction statistical profiles on 379 U.S. market areas for Wall Street and small investor clients.

In its third quarter report, three of Port Real’s top five most affordable investment markets were in Michigan — including Detroit, Warren and Bay City.

Port Real rates rental affordability based on an investor’s ability to break even — or better — acquiring what it calls “investor grade” properties and renting them out.

The company defines “investor grade” as properties in good physical condition with a minimum three bedrooms, locations near employment centers, with prices at or above the 15th percentile price point for all properties on the local market.

Also in the top 10 most affordable rental investment areas ranked this quarter were: Muncie, Indiana; Pine Bluff, Arkansas; Kokomo and Anderson, Indiana; and Wheeling and Weirton, West Virginia.

On the flip side of the rankings - essentially markets where investor grade properties are least likely to cash flow at current rent and price levels — are Wenatchee and Bremerton, Washington; San Luis Obispo, California; Bend, Oregon; Tacoma, Washington; Grand Junction, Colorado; Missoula, Montana, and Seattle, Washington.

Higher entry level prices in these markets make it difficult — if not impossible — to obtain positive cash flow from rental income using typical financing terms. In some cases, higher property taxes also contribute to investors’ negative cash flows.

As to opportunities in Detroit, a city hard hit by auto industry-related layoffs and foreclosures, Port Real’s third quarter advisory says this: “We still like Detroit as a potential region for investment. Total inventories are about twice the national level - comparable to California but better than most of Florida - (yet) for-sale inventories are coming down.” The city offers the lowest “entry level” investor grade price among major markets nationwide, but “it may have bottomed out as buyers realize (prices) can’t go any lower.”

For growth-oriented investors looking to pick up properties at discounts in more volatile markets and hold for potential capital gains over time — though not necessarily positive cash flows from rents — Port Real ranks California, central Florida, the upper Midwest, and new England as among the most likely to see price increases in the years ahead.

Source: realtytimes.com

RENTING an apartment in New York City can seem incredibly daunting. But clearly, it’s not impossible — about two thirds of New Yorkers rent their homes, according to 2006 census data, and although the vacancy rate is relatively low, there are always thousands of apartments on the market.

The current vacancy rate in Manhattan for all residential rental buildings with five units or more is 3.6 percent, according to Property and Portfolio Research, a real estate research and advisory firm. That translates to more than 15,000 available apartments.

The question is, how do you find the one that is right for you?

The first step is to be brutally honest about how much you can spend and then to look at apartments in that price range.

In all New York City buildings with five units or more, the average asking rental price is about $2,700 a month, according to Property and Portfolio Research. In Brooklyn, the average is about $2,400 and in Manhattan it is near $4,000. (By contrast, in comparable buildings in Washington, the average rent is $1,500, and in sections of Boston where most of the universities and transportation stops are, it is around $1,700.)

Renters of one-bedrooms in Manhattan could expect to pay $2,691, on average, according to the July listings by Citi Habitats, though that figure has jumped to $3,462 in a doorman building.

For decades, the big prize has been the rent-stabilized apartment, where rent increases are regulated annually by the city and state. Although the number of these apartments has steadily declined — largely because after they reach a certain rent level they are taken out of regulation — rent-stabilized apartments make up about half of all rental apartments in the city and about a third of the 3.26 million units of housing over all.

People living in regulated units tend to stay there longer than those in market-rate apartments. Still, roughly 10 percent of stabilized units turn over each year, according to the New York City Housing and Vacancy Survey in 2005, the most recent available.

When those apartments do become available, some of them can be switched to market-rate status. Under the laws, deregulation can take place if the rent exceeds $2,000 a month (and if the tenants earn more than $175,000 annually for two consecutive years).

While regulated apartments are a bargain in pricey areas, in less expensive neighborhoods the maximum legal stabilized rent may be more than the market rate for the apartment. In that case, the landlord will usually charge less than he is legally allowed.

“So why does it feel like there aren’t any regulated apartments?” asked Vicki Been, the director of the Furman Center for Real Estate and Urban Policy at New York University. “In some areas of the city, the difference between the market rate and the regulated rent is really nonexistent.”

Landlords and city officials suggest that people often find stabilized apartments simply by word of mouth.

The Rent Guidelines Board has a list of buildings on its Web site (housingnyc.com) that have at least one stabilized apartment. (In the “Housing Resources” section, select “Stabilized Building List.”) There is a separate list for each borough, which is organized by ZIP code. You can search for a desired street and then scroll through the addresses looking for a particular building. (The listing does not disclose whether there are stabilized units available for rent in those buildings.)

Andrew McLaughlin, the executive director of the Rent Guidelines Board, suggests that renters ask building managers or superintendents if any regulated units will be available soon. On Craigslist, using the keyword search for “stabilized” may produce listings, too.

Real estate brokers might have stabilized apartments to rent as well. “It exists, but it’s certainly not the biggest part of the business,” said Gary L. Malin, the president of Citi Habitats.

Using a broker might be the easiest and most efficient way to find a rental, but the convenience comes at a price. In Manhattan, brokers often charge 15 percent of the first year’s rent, according to Klara Madlin, the president of the Manhattan Association of Realtors.

Real estate brokers have access to more apartment listings and can offer guidance to clients on how to make themselves the most appealing applicants. Sometimes, they can help negotiate with the owner.

The Rent Guidelines Board also has a list of Web sites to help with the search, including Apartment Source, Metro List Express (MLX), CityRealty.com, StreetEasy.com and Craigslist. They range from free online bulletin boards to services that require registration and fees. (That list is available in the “Apartment Guide” section of its Web site under “Finding an Apartment.”)

Be ready, though, to pounce when the right listing is found. “You don’t get a second chance to make a good first impression — come prepared,” said Jerry Weinstein, the founder and president of Manhattan Apartments.

Mr. Weinstein suggests having a letter from an employer, two pay stubs and enough cash to cover the first and last month’s rent and a security deposit. Some landlords also request income tax returns. And, of course, you should be prepared to undergo a credit check.

In general, a New York City landlord will want a renter to earn at least 40 times the monthly rent each year — so if the rent is $1,000 a month, you should make at least $40,000, experts say. If you don’t, or if you have bad credit, you should line up a guarantor — who will usually be responsible for the lease if you fail to pay the rent — who earns at least 80 times the monthly rent. A guarantor who is a family member or someone who lives in the metropolitan area is often viewed as a bonus.

When the application is approved, it’s time to peruse the lease. One thing you might ask for is a specific mention of when you will receive your security deposit at the end of the lease — 30 to 60 days is reasonable. You can also ask for an option to renew or an early termination clause. Many leases in New York City, however, are take it or leave it.

“Negotiating? It depends on how good the market is,” said Nicholas Petras, who owns a dozen buildings in New York City and is the president of a trade organization for apartment building owners called the Community Housing Improvement Program.

Mr. Malin of Citi Habitats says landlords are currently being more flexible about the rent, either by asking for lower rents in the first place or offering signing incentives, like paying the brokers’ fee. But in more popular places like SoHo or the West Village, you may have a difficult time bargaining.

If you decide to negotiate with a landlord over the rent, make sure to present yourself as the best possible candidate, with your finances in good order. It can help to be able to move in quickly, and to make only reasonable requests. (A 25 percent reduction in the rent might not fall into the “reasonable” category.)

Once a lease is signed, however, there are services you have a right to expect, experts say. The apartment owner is responsible, for example, for providing smoke and carbon monoxide detectors, repairing cracks in the sidewalk and ensuring that your home is safe for young children, which means window bars and no lead paint. The landlord must also repaint every three years and make available basic services like heat and hot water.

What if something breaks inside the apartment? Landlords are typically responsible for repairing and maintaining permanent fixtures like toilets. If they don’t do so in a timely manner, you can report the problem to 311.

Tenants have to keep their end of the bargain as well, and that essentially means paying the rent on time. Otherwise, they could face eviction.

In general, you cannot be evicted in New York without being taken to court, and those proceedings usually take several months. Your lease might be up by the time the court proceedings have concluded.

What if you want to leave temporarily? In most cases, under New York State law, you have the right to sublet the apartment.

Sarah Calabi and her husband, Gregory Woods, are hoping to sublet their rent-stabilized apartment in Astoria, Queens, while Mr. Woods gets his master’s degree at Princeton University. “It’s been challenging to find out what the rules are,” Ms. Calabi said.

The landlord has to approve the arrangement in advance, but the parameters are vague as to what constitutes a reasonable rejection.

In general, according to state law, eligible renters must live in a building with four or more units and provide subletters who can pay the rent (assume that they must meet the same financial requirements as the renter). Subletting for rent-stabilized units is limited to two years in a four-year period.

The primary renter is usually responsible for seeing that the rent is paid. You might, therefore, continue paying the landlord yourself and have the subletter write you checks.

(If your apartment is rent stabilized, your landlord can tack on a 10 percent subleasing surcharge, and if the apartment is fully furnished, you can throw in another 10 percent to cover the wear and tear of your belongings, according to Michael B. Rosenblatt, the assistant commissioner for rent administration at the state Division of Housing and Community Renewal.)

There is some flexibility built into the law for tenants. For example, you have the right to have your partner or even a roommate move in — provided there is enough space. (According to the Department of Housing Preservation and Development, tenants must have at least 80 square feet to themselves, excluding bathrooms and hallways, among other things.)

In other ways, the law is less forgiving. You don’t have the right to break a lease, though in some instances a landlord may allow it. “If the current rent charge on that apartment is significantly below market rent or anywhere near the $2,000-a-month mark,” said Dov Treiman, a Manhattan real estate lawyer, “the landlord will be inclined to hand the tenant a bottle of Champagne on their way out.”

If you’re paying more than the prevailing market rate, the landlord is likely to insist that you continue to pay.

Rebecca Hood, a real estate analyst originally from Texas, had no trouble leaving her Upper East Side apartment when she moved to Miami with only three weeks’ notice this summer. It was a tiny rent-stabilized studio for which she was paying $1,468 a month. “In my opinion, the rent was under market,” she said. “It was almost in my landlord’s favor for me to break the lease.”

She found a new tenant and was free to go.

When you move out, be sure to leave your apartment as you found it or you may not get your deposit back. If you feel that money has been unfairly deducted from the deposit, you can go to small claims court (or, for very large security deposits, to the regular part of the New York City Civil Court).

“New York is a very difficult place to do almost any business transaction,” said Adam Leitman Bailey, a real estate lawyer. “But you don’t have to be a real estate professional to have a pleasant living experience. Renters should be thankful the law goes so far to protect them.”

Although many new renters are people who cannot afford to buy, others have enough money but are waiting for the market to stabilize.

“You looked at housing prices in the rest of the country and everything was going south,” said Thomas Elliott, a bond trader at Cantor Fitzgerald who is relocating his family to New York City. “At some point, my thinking was, New York was going to have a similar trend as the rest of the country.”

Instead of buying an apartment when they moved from Charlotte, N.C., Mr. Elliott and his wife, Lark, have rented an apartment on the Upper East Side.

The Elliotts aren’t the only ones sitting on the fence. “We’re getting a sense that there’s a number of people sitting it out to see what happens,” said Fritz Frigan, an executive director of sales and leasing for Halstead Property. “But they must have a home, so we will have some influx in demand to the rental market.”

That will not, however, “have an effect on rental prices,” Mr. Frigan said. They are more dependent on the job market and the overall economy.

Source: nytimes.com