http://redefinedrealestategroup.com/blog/archive_201706/sort_entrydatetime-desc/ The Basics of Buying Investment PropertiesBy Kenneth D. RosenRISMEDIA, Monday, June 26, 2017— Editor's Note: This was originally published on RISMedia's blog, Housecall. Everyone wants a magic and immediate path to wealth. The bad news? The path doesn't exist. Wealth is attainable through more conventional means. If you come to understand the real estate industry and if you deepen your own firsthand experience as you buy and sell investment properties, you'll be on the road to success. Along the road, there are six core principles that will make or break each real estate investment deal. They are the most important concepts you will learn. I call them the Big Six. With each successive deal I negotiated, I grew to recognize the common elements. The Big Six are part of a sequenced step-by-step formula that enables you to identify and purchase the right income property at the right price.   The elements of the Big Six Formula that will guide you into the basics of buying income properties are the following: LocationLocation is the single most important component of any real estate deal. It is crucial in determining your investment success. Look for properties that are situated in an "A" location. Such locations include the socioeconomic levels of the people who live or work in a particular neighborhood, its proximity to shopping centers, public transportation, crime levels, the nearness of prestigious universities and medical facilities, traffic congestion, zoning restrictions, the quality of schools, fire and police protection, and even the reputation of the local government and its officials.    Building Quality and Design EfficiencyDesign efficiency interfaces with building quality. When you find an investment property you'd like to buy, you will need to scrutinize both elements. Look for properties that far exceed minimum construction requirements and that have useful and innovative design elements. This will not only make the property attractive to tenants but will add value to the property in the future. Design features on apartment complexes that stand the test of time include walk-in closets, large kitchens with windows, and his-and-her bathrooms. In an office building, a common area factor of 15 percent is desirable as well as a ratio of four parking spaces for every 1,000 square feet of rentable space. Tenant ProfileTenants can represent either an asset or a liability in an investment. When you invest, your mission is to make sure your tenant profile is the former and not the latter. Just as you want a well-constructed and well-designed property, you'll want stable tenants who are a good match for your property and have appropriate lease agreements. Find out how much rent is generated and whether it is at market rate or under market. You want to focus on finding an income property that offers the opportunity to increase rental income and, by doing so, multiply the value of the property so that you can resell it at a substantial profit. UpsideThis fourth element refers to the cash flow growth possibilities offered by a particular property along with the likelihood that the property will increase in value. A property may cost $1,500,000 to construct, but if it brings in only the income of a $900,000 property, then it is worth only $900,000.  The key to increasing value lies in buying a solid Class B property in an "A" location where the rents are under the market, the leases are short term, and there are no options to renew the leases.  FinancingIn the musical Cabaret, there is a song with the lyrics "Money makes the world go around." It could just as easily be used to describe real estate's role in the economic landscape. The free flow of money and access to credit is what adds vibrancy to property investment. Before you get started, you'll need to get a number of finance-related items in order. The first thing you should do before applying for a mortgage loan is to review your credit reports and your credit scores. Also, learn the terms, understand the components of a mortgage and how they interact, and be open to the full range of financing options available. Banks and other financial institutions make money from mortgages. They are willing to negotiate. Be creative—you may be surprised at the terms you're able to obtain from a bank or insurance companies, especially in today's low interest rate environment.  PriceThe successful evaluation of a property's price has to do with how much information you can gather about a seller and the property than it does about the price tag on the real estate deal. You must look at the value of the property, which is not the same thing as its price. The crucial concern is not just how much the property costs, but what kind of income it can generate for you. A property may be architecturally perfect and engineeringly sound, but if you're locked into long-term, under-market lease rates, the value will be eroded.   If you master these principles, wealth will be within reach. However, it's not enough to just understand and utilize the Big Six. You must execute them in order. That's because they all fit together snugly to form your customized real estate formula.   Author Kenneth D. Rosen, CCIM, is a real estate investor. Investing in Income Properties, The Big Six Formula for Achieving Wealth in Real Estate, Second Edition is currently available at InvestingInIncomeProperties.com in both hard back and digital versions. It is also available on Amazon and at Barnes and Noble. This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia. http://redefinedrealestategroup.com/blog/719/the-basics-of-buying-investment-properties/ Mon, 26 Jun 2017 12:00:00 -0500 How to Make Your Home Design Pet-FriendlyBy the Experts at UnpaktRISMEDIA, Monday, June 19, 2017— Editor's Note: This was originally published on RISMedia's blog, Housecall. See what else is cookin' now at blog.rismedia.com:SURVEY: Zillow Instant Offers Creates Industry Firestorm—Take the Survey and Tell Us Where You StandBuilding Stronger Client Relationships: 5 Ways to Get Social With It6 Easy DIY Projects That Will Boost Your Home's ValueDecorating your home is a fun, creative, and expressive process of putting yourself into your living space—but what about the furry members of your family? When laying out and decorating your home, there are some key elements that you can slightly alter or improve to make your home more pet-friendly, durable, and easy to keep looking and feeling fresh. Not only will you benefit, but your pets will feel more at home, too. Here are some ways to make your home design pet-friendly. Choose Durable FloorsSkip the wall-to-wall, expensive carpeting. Skip the softwood floors, no matter how beautiful. Both of these floors will quickly show the impacts of life with pets, either when they are covered in hair or are scratched up by little claws. Opt for ceramic tile in your most high traffic areas, like entryways and main rooms, and consider hardwood floors or even sealed terrazzo (kind of like concrete) elsewhere. Just remember that large dogs can still scratch hardwood, so maybe reserve it for bedrooms if your pup will leave a mark or add area rugs to cover a lot of the surface area. Word to the wise on those rugs? Don't spend too much on them. No matter how diligent you are about cleaning them, once your pet has lived on them, they will never be the same. Choose Durable FurnitureWhether you allow your pets on the furniture or not, their fur will find a way. Choose furniture with upholstery that is stain-resistant and easy to clean—bonus points for couch cushions with covers that can be removed and washed. Leather or pleather couches won't get covered in fur, but they will sustain a few scratches from puppy and kitty claws, so don't get too attached. Many furniture lines now make models with fabrics explicitly designed to be pet-proof…which might be worth the extra money in the long run! Build a Pet Area Near an EntryIf you are a dog parent or have an outdoor cat, you need to deal with the comings and goings—and the stuff, dirt and debris that comes along with it. Make an area to hang leashes and other accessories for Barky, put a high-impact floor mat down to catch the muddy paws before they hit the clean floors, and consider even half-tiling the walls to prevent stains from the inevitable shake-off. Add some shelving and storage for treats, towels, and other knick-knacks, and your pet area will be well-stocked. Avoid Attractive Plants or Small DecorationsSet your pet up for success: don't leave your vintage collection of Beanie Babies at snout level, or decorate with knitted animals or felted things. Your pets will naturally assume you've left toys around the house, and you will be sad when they are chewed. Likewise, animals don't always know which plants are and aren't safe for nibbling. Have a look at the ASPCA's list of toxic plants, and keep them out of the house for your pet's wellbeing. Since you also want to avoid having to wrestle your decorations out of a puppy's mouth, keep small items in a china closet or other enclosed area. Choose Toys That Don't Make a MessIf you've ever had the brilliant idea to give your dog a rope indoors, you know: one messy toy can leave residue for a long time. If you are a fan of marrow bones or other food-like treats, do yourself a favor and leave them for outside time only. Rawhide really isn't great for your dog anyway, but it will be guaranteed to make a mess of your floors. When giving your cat a catnip ball, choose a contained area so you don't end up with flakes of catnip everywhere. Groom and Bathe Your Pets RegularlyFluffy may not love being groomed, but it will help keep the fur levels down. For dogs, depending on their hair, you may bathe them at home or choose to bring them to the groomers. Either way, prevent your home from getting a film of animal dander and grease by keeping their fur clean. Tip: Use a gentle, natural shampoo to prevent more dandruff! Unpakt is a full-service, online moving platform that can help easily plan, compare, book and manage a move. http://redefinedrealestategroup.com/blog/718/how-to-make-your-home-design-pet-friendly/ Wed, 21 Jun 2017 12:00:00 -0500 6 Ways to Keep Your Appliances and HVAC Running Strong This SummerBy Chip Smith, Sears Home ServicesRISMEDIA, Monday, June 19, 2017— Most people enjoy summertime, but it can take a toll on home appliances. With kids out of school, families typically use them more frequently and the heat and humidity forces them to work harder and longer. Extreme heat, summer storms and power outages can also damage appliances. All these factors can spell trouble if you're not performing routine maintenance. Here are six expert tips to keep your appliances and home running strong this summer: 1. Clean your refrigerator's condenser coils. Condenser coils help the refrigerator stay cool by releasing heat from the compressor. Dirty coils result in the refrigerator having to work harder to cool, which can result in expensive cooling system repairs. Clean the condenser coils at least twice a year, removing dirt, pet hair, food and more. If you have an older fridge, the coils might be painted black and mounted on the back. Newer refrigerators often have the condenser coils on the bottom. It's easy to clean them with a vacuum and a coil brush, available through SearsPartsDirect.com. 2. Clean and inspect your refrigerator's door gaskets. A leaky door gasket, the rubber strip that runs alongside the door to form an air-tight seal with the fridge, can result in your refrigerator trying to cool the entire kitchen rather than the food and drinks inside. Clean the gasket with a mild cleaner and then check the seal integrity with a solution of soapy water (just like you would do with an inflatable mattress). You can also use the dollar bill approach—close a dollar bill in the door so that it is only halfway in the fridge. If your gasket isn't tight enough, it won't hold the bill firmly in place. If the dollar bill falls out or slides down, look at scheduling a professional to replace the gasket. 3. Change the air filters in your HVAC system. Homeowners should regularly change their air filters, as dirty ones can lead to increased energy bills and damage systems. Experts recommend changing air filters every three months at minimum and monthly during the summer if they are dirty. 4. Clear away debris and clean HVAC condenser coils. Condenser coils release the heat from the AC unit to the outside. Dirty coils can reduce the unit's ability to cool your home, forcing you to run it longer and use more energy. To clean, you'll need a garden hose, a spray nozzle and a water source. Before you begin, disconnect the power to the air conditioner. Most AC units have a shutoff box nearby. If there's no shutoff box, find the circuit breaker in the home that controls the AC unit and turn the power off. First, clear away debris and trim any overgrown grass or weeds near the AC unit. There is no reason to remove covers or fins from the air conditioner to clean the coils. Simply take a garden hose with a spray nozzle and wash the fins, (the outside of the AC unit) with regular water. Start with the top and work downward, washing away debris and blockage so the coils can release heat efficiently. 5. Clean the dryer lint trap and moisture sensors. Our expert technicians recommend you clean the dryer lint trap after every single load to ensure your machine is drying clothes as quickly as possible, which will save you time and energy. Periodically, use a dryer lint brush to dislodge and remove any lint that the screen didn’t catch and clean up with a vacuum. Every six months or so, remove and wash the lint screen to remove build up, especially if you use dryer sheets. If the automatic cycle isn't fully drying your clothes, you should clean the moisture sensors with soap and water to remove the chemical residue left behind from dryer sheets. This residue can build up and trick the sensors into thinking your clothes are dry prematurely. Moisture sensors are thin strips typically located near the dryer vent.' 6. Clean and inspect your gas grill. With outdoor entertaining season here, now is a great time to make sure your gas grill is in working order. Make sure the gas is off, check the manual for how to remove the burners, then brush out the grill's interior and burner ports with a wire brush designed for grills. When you start up the grill, let it burn for five to 10 minutes before using. Use cooking spray on the burners to prevent rust and tarnish and to keep food from sticking. Before using your grill, you should also check for a tight seal and for leaks and cracks in the hose going to the propane tank or natural gas supply line. Use soapy water to detect leaks. If bubbles start to form, there's a leak. If there's a leak, replace it, as this can be a fire hazard. Most homeowners are comfortable performing these routine maintenance tasks. If you don't have time or want to maintain your appliances, Sears Home Services can do it for you and your clients with Kitchen & Laundry Appliance Check-Ups and HVAC Maintenance. Sears Home Services expert technicians repair and maintain more than 180 appliance brands—not just those sold by Sears. Chip Smith is the chief marketing officer of Sears Home Services, a national provider of appliance services. Sears Home Services, the House Expert for Homeowners, has more than 5,000 expert technicians who make nearly 7 million service calls annually. For more tips on maintaining your home, please visit SearsHomeServices.com/blog. http://redefinedrealestategroup.com/blog/717/6-ways-to-keep-your-appliances-and-hvac-running-strong-this-summer/ Mon, 19 Jun 2017 12:00:00 -0500 11 Reasons Why Your Home Isn't SellingBy Charles MuotohRISMEDIA, Monday, June 05, 2017— Editor's Note: This was originally published on RISMedia's blog, Housecall. See what else is cookin' now at blog.rismedia.com:Protect Your Home From an Invisible—and Fatal—Danger: RadonTop 10 Urban Properties With the Best ViewsSummer Pool Maintenance 101 When you first put your house on the market, you might be hopeful for a quick sale—especially if you've put a lot of money into improving the house over the years and if the neighborhood is one that has historically attracted a lot of buyers. While you shouldn't panic if the house doesn't sell the moment you list it, you should begin to worry if the months start flying by without any real offers. If this is the case, here are 11 reasons why your house may not be selling. 1. You overvalued your property. If your house is overpriced, it's simply not going to sell. Compare your property to similar properties that recently sold within your area to get a better idea of its true value. An experienced real estate agent can give you an accurate value of your home. Additionally, don't make the mistake of tacking on the cost of any renovations you made. You can't just assume that the cost of a renovation translates to added value. 2. Your listing is poor. If the listing of your home includes a poorly written description without any images, a lot of buyers are going to skip over it. Make sure you and your REALTOR® put an effort into creating a listing that attracts the attention of buyers. Make sure to add high quality photographs of both the interior and exterior of your home. Don't forget to highlight unique features, as well. 3. You're always present at showings. Let your agent handle your showings. Buyers don't want to have the seller lurking over their shoulder during showings, especially during an open house. This puts unwanted pressure on the buyer, which will make them uncomfortable and likely chase them away. 4. You're too attached. If you refuse to negotiate even a penny off your price, then there's a good chance that you've become too attached to your home. If a part of you doesn't want to sell it, or you think your house is the best house in the world, odds are you're going to have a lot of difficulties coming to an agreement with a potential buyer. 5. You haven't had your home professionally cleaned. A dirty house is going to leave a bad impression on buyers. Make sure you have a professional clean your carpeting and windows before you begin showing your house. 6. You haven't staged your home. If you've already moved out, then don't show an empty house. This makes it difficult for buyers to imagine living in it. Stage your house with furniture and decor to give buyers a better idea of how big every room is and how it can be used. You want the buyer to feel at home when they are taking the tour. 7. You kept up all of your personal decor. Buyers are going to feel uncomfortable touring your house if you keep all of your family portraits up. Take down your personal decor so that buyers can have an easier time imagining themselves living there. 8. Your home improvements are too personalized. You might think that the comic book mural you painted for your child's room is absolutely incredible, but that doesn't mean potential buyers will agree. If your home improvements are too personalized, it can scare off buyers who don't want to pay for features they don't want. 9. Your home is too cluttered. Even if your home is clean, clutter can still be an issue. For example, maybe you simply have too much furniture in one of your rooms. This can make the house feel smaller than it is. 10. Your home is in need of too many repairs. The more repairs that are needed, the less likely a buyer will want your house. Many buyers simply don't want to deal with the cost or effort of doing repair work, even if it's just a bunch of small repairs, such as tightening a handrail or replacing a broken tile. 11. You chose the wrong real estate agent. In my opinion, choosing the right real estate agent is simply the most important decision you make in selling your home. A good REALTOR® makes all the difference in selling your home within a reasonable time. All these things can be fixed once you realize your mistake; however, the longer your property stays on the market, the less likely it will sell at listing price. One of the best ways to avoid making these common mistakes is by working with a professional real estate agent. http://redefinedrealestategroup.com/blog/716/11-reasons-why-your-home-isn't-selling/ Mon, 05 Jun 2017 12:00:00 -0500 How to Find a House TodayBy Steve Cook, Real Estate Economy WatchRISMEDIA, Friday, June 02, 2017— This year may be the most difficult in a decade to buy a home, especially for a first-time homebuyer. Prices are soaring in most markets, and for affordable starter homes, the price is rising faster than larger homes.* Supplies are suffering from a three-year inventory drought that also is hitting starter homes hardest. The number of starter and trade-up homes fell 8.7 percent and 7.9 percent, respectively, during the past year, while the inventory of premium homes has fallen by just 1.7 percent, according to Ralph McLaughlin, Trulia's chief economist.* There's little leeway for mistakes in today's marketplace. Discipline is essential, and the learning curve is stepped. Buying a home is serious business, and in most markets today, it is the most difficult step in the process for move-up buyers, as well as first-timers.  Here are five tips on house-hunting in today's marketplace that will put you ahead of the competition and may spell the difference between success and failure. Hire a specialist. If you had a serious medical condition, you would seek advice and treatment from a medical specialist. Real estate is also a large and complex field. Many brokers and agents specialize in delivering better service to their clients and customers. If you're serious about finding a home today, hire a REALTOR® who specializes in serving buyers. Look for one with the designation ABR after their name. It stands for Accredited Buyer's Representative and means that they are REALTORS® who have received specialized training from the Real Estate Buyer's Agent Council (REBAC) and have experience representing buyers. Even if you don't hire a specialist, you should hire a REALTOR®. Not all agents are REALTORS®; REALTORS® are members of the National Association of REALTORS® (NAR) who are licensed and abide by NAR's Code of Ethics. Hiring a REALTOR® with an ABR designation won't cost you anything, and a professional's assistance could make all the difference. Above all, don't try to go it alone today. Last year nearly 90 percent of successful buyers used an agent.** Don't start your search until you are ready. It's a good idea to spend some time online surfing real estate sites and learning about real estate and checking out what's available; however, you aren't a serious buyer until you have done all you can to improve your credit, raised the money you need for a down payment, been pre-approved for a mortgage from at least one lender and hired an agent Make a budget and stick to it. The amount for which your lender pre-approves you is not your budget. Your pre-approved amount is conditional and can change when you apply for a mortgage. Moreover, it does not include many of the other costs of homeownership, like taxes, home insurance and maintenance. Sit down with your agent, make your budget and stick to it. As a rule of thumb, economists recommend you spend no more than 30 percent of your gross income on housing costs. Make a pledge to yourself to stick to your budget. There are few heartaches worse than falling in love with a house you can't afford or stretching yourself so thin that you are "house poor" for years to come. House hunt every day. Looking for a house in today's market is like having a second job. Financially, finding the right home may be even more important to you than a second job. The outcome of your search will determine where you live and how much you spend on housing for years to come. Be proactive with your agent to learn as much as you can about the home-buying process and conditions in your market. Spend time every day reviewing listings and learning about neighborhoods. Drive the neighborhoods in which you are interested and go to open houses to get a feel for the market and to meet listing agents who may have a home that meets your criteria. Check out "coming soon" listings to get a head start on the competition. Use a selection of sites. Most buyers start their house search on one of the major national real estate sites like realtor.com®, Zillow or Homes.com. These sites have great features, research and how-to material. As you get more serious about finding a house, increase your selection of sites to include your local multiple listing services, if yours has a consumer site with listings (not all do). Also, bookmark several of the leading local brokerages in your market. Listings may appear earlier on a local brokerage site than a national site, and often updated information like contracts or price changes are posted first on the site of the listing broker who represents the property. Sign up for email updates of listings that fit your criteria. Be flexible. You may find that you cannot afford to live where you would like, or you can't afford the size or amenities you want. If those are deal-breakers for you, you may not be ready to buy in your market today—or you might revisit your plans and decide to live a little farther out from the city, buying an older house that you can improve over time. Starting out in a condo might be an acceptable alternative. Chances are prices in your market are not going to decline, and by buying now, you will begin to accumulate equity. Though mortgage rates have risen over the past year, they are still very reasonable by historical standards, which means that the odds are they will continue to rise, rather than fall, in the future. Expand the geography and price ranges on the websites you are using and see what you find. Sweeten your offer. When you find a house on which you want to make an offer, ask your agent for a comparative market analysis (CMA) to determine its value. Don't rely on the estimated values provided by valuation tools on real estate sites. Knowing the value is important not just for deciding how much to offer, but also to anticipate how much the house will appraise for. CMAs are based on recent sales of comparable properties, similar to appraisals. Chances are you will be competing with other buyers, including investors who pay all cash. Sellers are not only looking for the best price; they also want an offer that will close on time from a buyer whose financing won't fall through. Consider sweetening your offer by increasing your down payment and getting more than one pre-approval. Be flexible on considerations like renting back if the owner is a move-up buyer who may need time to find a new home. If you are a move-up buyer, sell your current home before you buy a new one. Most sellers react negatively to offers that are contingent upon a buyer first selling his current home. Don't lose your deal. About 23 percent of contracts on homes today have a delayed settlement, and 7 percent of contracts fail to close and are terminated. The leading causes for delayed settlements are issues related to obtaining financing and appraisal issues. Among contracts that were terminated, 25 percent faced issues related to home inspections, and 20 percent had issues related to the buyer's ability to obtain financing.*** One way to improve your odds for financing is to get more than one pre-approval so that you are ready to talk to a second lender if your first application fails. Most appraisal issues result from appraisals that come in lower than the contract price and buyers must come up with more cash. One way to protect against a low appraisal is to know the value of the house before you make an offer and make a larger down payment than you have to. Persistence pays off. Don't despair if a seller selects another offer over yours. Learn from your experiences. A better home may come on the market tomorrow. Last year buyers searched for an average of 10 weeks and looked at a median of 10 homes**, but that's just a national average for all buyers. If you are a first-time buyer in a hot market, expect your hunt to take longer. Don't quit when the weather turns cold. Fall and winter can be good times to find a home. There are fewer listings than in the spring or summer, but there's also less competition, and sellers are usually more motivated. * McLaughlin, Ralph. (2017, May 22) Don't Call It a Comeback: How Rising Home Values May Be Stifling Inventory. Retrieved from www.trulia.com/blog/trends/inventory-q117/** 2016 Profile of Home Buyers and Sellers. National Association of REALTORS®. *** REALTORS® Confidence Index: Report on March 2017 Survey. National Association of REALTORS®. Retrieved from www.nar.realtor/sites/default/files/reports/2017/2017-03-realtors-confidence-index-04-21-2017.pdf. http://redefinedrealestategroup.com/blog/715/how-to-find-a-house-today!/ Fri, 02 Jun 2017 12:00:00 -0500