Dallas Appraiser L.L.C. wants your help and commentary on our Real Estate Blog
Why Flip Houses?
by Dallas Appraiser L.L.C. on 04/02/14
Why Flip Houses
There are many great questions to ask when it comes to real estate investing and one of the many that you should consider if you are thinking of flipping houses for your real estate investment is: why? Why flip houses? It certainly seems as though it's a great deal of work and it is. It isn't an easy task to take upon your own shoulders and yet many people around the world purchase houses each and every day for the purpose of flipping those houses. Why? Profit is the long and the short answer but it goes much deeper than that for many who are interested in flipping houses even if profit is the ultimate goal.
Some people really enjoy working with their hands. Purchasing a property in need of light cosmetic repairs and retouches is a great way to get your hands dirty without risking too much money, time or effort. Properties needing more serious work may require a pair of hands that have some degree of experience rather than hands that are best suited for balancing books. That being said if you want to do the work yourself and enjoy the prospect you may find that you can save a great deal of money if you use your own labor rather than paying for the labor of others when it comes to flipping a house.
Other people go into this line of work because the idea of giving a family their dream home is so appealing. When you go in and flip a house you are putting your sweat into creating someone else's dream. You are taking something that may have been plain, ugly, or drab and turning it into a beautiful home in which they can build their dreams. While it may seem a little romantic, it is in a way. This is part of the beauty of flipping houses though; there really is no wrong reason to do it.
Some people choose this line of work because deep down inside they need the pain that goes into turning a lump of coal into a diamond. I think the literal term for these people (and really this could apply to anyone who decided to flip houses for a living) is masochist. The shoe fits for most people who flip houses. If they didn't know going into it the first time they certainly know before they go into it a second time.
Then there are those that are simply driven by profit. There really isn't anything at all wrong with that. Most of us would never get into this business if there weren't some hope of a pot of gold on the other side of the rainbow. This is hard work and there are days that the promise of a pay off is the only thing that gets you out of bed and hitting the ground running yet again.
Just remember that at the end of the day it doesn't matter what your goal in flipping houses is. What matters is that you show up day after day and do the work necessary to pull off your house flip. This is what makes the difference between those playing at flipping houses and those who are doomed to be one hit wonders in this brutal business. Of course, there are still those few who flip houses just for the sake of seeing the finished product when everything is said and done.
575
Houston Zoning Complexities.
by Dallas Appraiser L.L.C. on 04/01/14
Title:
Zoning in Houston ñ A Boon or Curse
Word Count:
387
Summary:
As compared to other counties, the number of Houston cheap homes and foreclosures are comparatively less.
Keywords:
Houston foreclosure homes, Houston foreclosure listings, Houston cheap homes, Houston bank owned homes
Article Body:
Zoning in Houston ñ A Boon or Curse
As compared to other counties, the number of <a href=îhttp://www.foreclosuredeals.com/houston/cheap-homes.htmlî>Houston cheap homes</a> and foreclosures are comparatively less. The county has somehow restricted itself to the sidelines where the national foreclosure crisis is concerned. <a href=îhttp://www.foreclosuredeals.com/tx/harris/houston.htmlî>Houston foreclosure listings</a> are not swelling with new foreclosures every week and the housing prices have been quite stable i.e.: they have not really taken the plunge like in some of the other neighboring counties or even states. In fact, the overall housing prices have remained at a modest level and the only factor ensuring the stability of prices is the easy availability of land.
Houston has a generous abundance of space some of which are protected while others are not. But this is not the only reason! The second reason is the lack of zoning as pointed out by Bill Gilmer, a senior economist with the Federal Reserve Bank of Dallas' Houston branch. From the perspective of economy, the zoning laws have worked like a restriction of supply. According to Gilmer, the zoning laws have played an important role in raising the price of constructing a new-home and as a result of the supply restrictions, the price increased.
Due to the increasing housing demand, several states and their cities as well as counties have formulated tight laws on zoning and add to it the limited supply and this has led to a steep and rapid rise in home prices. At the end of the day, the rapidly rising prices snuff out the demand and cause disturbances like the crumbling of the different mortgage markets in different cities. The final result is foreclosure.
Although, there are several
http://www.foreclosuredeals.com/houston/bank-owned-homes.htmlî>Houston bank owned homes</a> in the state of Texas but overall the demand for homes has been met through new home constructions as opposed to rising prices. The immediate effect was that Houston was saved from the severe effects of the real estate bubble burst. The bottom line is that lack of zoning has ensured that there is comparatively less
http://www.foreclosuredeals.com/lview.php?st=TX&cn=Harris&city=Houston&propType=1î>Houston foreclosure homes</a>.
Changing Where you Live from a House to a Dream Home!
by Dallas Appraiser L.L.C. on 03/27/14
Title:
Turning A Home Into A Dream Home
Word Count:
358
Summary:
The evolution of a home into a dream home is one that can happen much quicker and easier than many people think. With a fairly minor expenditure the average home can easily become much more than simply a house.
Keywords:
home renovations, home renovations tips, home design tips
Article Body:
The evolution of a home into a dream home is one that can happen much quicker and easier than many people think. With a fairly minor expenditure the average home can easily become much more than simply a house. There are a variety of ways that the average home owner can revamp their home to create a custom space that is not only perfectly suited to their lifestyle, but is a conversation point for the home.
Creating an overall theme for a home is an interesting experience and can be extremely rewarding if successful and heartbreaking if it isn't. Many people spend considerable time discussing matters with a designer and others simply have the knack for detailing their spaces already. Either way, the first thing you are going to have to arrange is the financing for your project. If it is on a small scale you may simply be able to pay for it up front. Other then that there are a few equity financing options such as the second mortgage or the home owners line of credit. Both of these options are perfect for renovations as they come with low interest rates with the loan secured by your home equity.
In terms of where to start with your renovations, think about which rooms in the home you use the most. Typically this will be the kitchen, main bathroom, and living room. One of the best ways to change the feel of the first two is to replace all the appliances and fixtures. The living room will be a bit of a different story. This space will be best served by some new furniture, art and maybe new floors.
The exterior of any home can be given new life by some landscaping and TLC for the yard. The yard will be anyone's first impression of your home so make sure you give it the necessary attention. Tending to the gardens, lawn and driveway will add a nice scenic element to the front yard and add value to the home. Creating your perfect are is not difficult, express your creativity and increase your home's value at the same time!
Dallas Appraiser LLC
Interested in Refinancing Your Home Mortgage?
by Dallas Appraiser L.L.C. on 03/26/14
Title:
Tear Your Mortgage a New One by Refinancing Your Home Loan
Word Count:
683
Summary:
Do you have a mortgage with high interest rates, sizable monthly payments, and little cash to take care of bills and credit card debt? If so, you may consider the option of refinancing your home.
Keywords:
Home Loans, Refinancing, Mortgages, Refinancing Your Home Loan
Article Body:
Do you have a mortgage with high interest rates, sizable monthly payments, and little cash to take care of bills and credit card debt? If so, you may consider the option of refinancing your home.
Refinancing involves ending your current loan agreement with your lender and getting an entirely new mortgage. One benefit of taking this step is that you have the ability to get a much better interest rate on your home loan, lower your monthly payments, and even borrow extra money in order to take care of debts or home improvements.
Lowering your interest rate can make a huge difference in how long it takes for you pay down your mortgage because with each payment you make, more of your money is going to the principal balance of the loan rather than to the interest. Paying thousands of dollars in interest can make a homeowner feel like they are spinning their wheels; getting no closer to actually owning their home outright.
Be sure to do research before jumping into the world of refinancing. You need to speak to an advisor who can tell you about current interest rates and forecasted trends. You will also need to decide once again if a variable rate or fixed rate mortgage would be more appropriate to your situation. Fixed rate mortgages can give you peace of mind, in that you know every month what the payments will be. With variable rates, you are vulnerable to the financial tides, which can be very anxiety inducing. On the other hand, variable rate loans can often mean lower payments than fixed rate ones provide. You have to decide how much of a risk you want to take in order to save as much money as possible.
Lower monthly payments can be achieved if you alter the length of time you have to pay back the mortgage. This aspect is something that you have to weigh carefully. If you want smaller payments, then you will need to extend the length of the loan, meaning that you will have this debt over your head for a lot longer. However, if lower monthly payments will make your life easier, it may well be worth dragging out the loan.
Alternatively, you can also shorten the loan period when you refinance your home. If interest rates are favorable at the time, you may not even increase your monthly payments, but will save a great deal of money that would otherwise be applied to interest over the course of your loan.
Not only can refinancing make your mortgage conditions more favorable in the long run, but it also enables you to borrow over and above the amount needed to repay your current mortgage. This money can be used to pay off debts, home repairs, or any number of emergencies that can happen in life. This money is simply added to the amount you owe.
There are a couple of disadvantages to refinancing your home loan to be aware of. One is the fact that your original lender may charge you a penalty for paying off your mortgage early. Also, because you are starting a new mortgage from scratch, you will have to pay fees to the new lending company. Each lender is different in terms of what you will be charged for the privelege of borrowing money, so it is wise to shop around. Because there are so many costs involved, most people simply include the lender's fees and closing costs into the amount of their new mortgage. This is a great choice for homeowners who are strapped for cash at the time.
Refinancing your home loan can have many advantages to it, and can improve your quality of life by reducing the amount of money you pour out each month on interest and monthly payments. You can also get your hands on extra money to take care of immediate financial concerns, which can be a great stress reliever and save you money in the long run. Just remember to take all lender's fees, penalties, and interest rates into consideration before jumping into anything.
Dallas Appraiser LLC
Basic Methods of Making Money In Real Estate
by Dallas Appraiser L.L.C. on 03/25/14
Title:
Making Money In Real Estate - 10 Basic Ways
Word Count:
509
Summary:
What are the basic ways of making money in real estate? Buying low, selling high, and eight more are covered here.
Keywords:
making money in real estate, real estate investments, real estate
Article Body:
Making money in real estate is an endless topic that includes all the various types of real estate investments. There is land, apartment buildings, homes, commercial buildings and more. Whatever the type however, you'll make your profits in some of the basic ways listed below. Use this list to get yourself thinking of the possibilities.
1. Appreciation. Making money in real estate can be as simple as holding on and waiting. To really get the most appreciation in value, however, you should buy in an area where demand is growing faster than the supply.
2. Depreciation. Remember that after all the tax law changes, you still get to declare a loss for depreciation that doesn't really exist. That can save you a lot at tax time, meaning more after-tax profit. To maximize this, buy property that has its value primarily in the buildings, because you can't depreciate the value of land.
3. Loan pay-down. You gain equity with every payment you make. Get the lowest interest rate you can and more of each payment will go towards the principal.
4. Cash flow. When you buy income property the right way, you not only have your tenants paying all the costs and paying down the mortgage loan, but you also have positive cash flow.
5. Buy low. When you buy below market you get instant equity that will be converted into a profit when you sell. Offer a reason for the seller to sell low: fast closing, cash, assume some debts or liabilities, etc. Or just make a low offer. The seller may have his own reasons to sell it cheap.
6. Sell high. Clean it up nice, make it easy to buy, and find the right buyer to get top dollar. The next four on the list cover ways to create value, so you'll get more when you sell.
7. Offer financing. You can often get substantially more for a property if you offer financing. This is especially true if you let someone buy it with little money down. You can also get good interest on the loan.
8. Change use. If there is a higher use for the property, you can convert it to make it worth more to the next owner. Sometimes this means making condos into apartments, or apartments into condos. Maybe converting a home into office space will get the biggest return.
9. Improve and repair. Repairing anything that needs it is obvious, but you need to look creatively and carefully to find improvements to make. Concentrate only on those that will raise the value several times more than what they cost you.
10. Sell in parts. In real estate, the parts are often worth more than the whole. For example, splitting off an extra lot to sell for $30,000 will rarely decrease the value of a home by that much, so you'll make more money in the end.
Making money in real estate can be a wonderfully creative process. Just look at the sources of profits listed here, and think of how you can use a few of them on your next real estate investment.
Dallas Appraiser LLC
I am Almost Ready To Buy A Home, What Should I Do?
by Dallas Appraiser L.L.C. on 03/23/14
Title:
I am Almost Ready To Buy A Home, What Should I Do?
Word Count:
648
Summary:
Tips and information for you to consider prior to shopping for your home.
Keywords:
home purchase, home buying, buying a home, home buying, real estate purchase, house buying
Article Body:
Well, the first thing you should do before you shop for your new home is to get a copy of your credit report and credit score! You can obtain a copy of your credit report and score from one or all of the three credit bureaus: TransUnion, P.O. Box 2000, Chester, PA. 19022,800-888-4213,www.transunion.com; Equifax, P.O. Box 740256, Atlanta, GA. 30374, 877-784-2528 ,www.equifax.com; Experian, P.O. Box 2104, Allen, TX. 75013, 888-397-3742 ,www.experian.com. You may even consider ordering a three in one credit report to see what each credit bureau is reporting about you.
You will want to review your credit report for any potential problems that will need to be cleared up before you start shopping for your home. You donít want any surprises when you complete your home loan application. So, it is important to be proactive about getting your credit report first!
After you have secured your credit report, the next step for you to consider when preparing to purchase a home is to get pre-approved for your home loan. Thatís right, get pre-approved for your home loan not pre-qualified, thereís a big difference! Getting pre-approved for your home loan means that you have obtained approval from your chosen lender to pay a certain amount for the home you are about to purchase.
Basically, pre-approval means you already have your money for your home purchase and have the ability to negotiate a better deal with the seller because you have the funds to purchase quickly. A pre-qualification doesnít have much clout, because you have not secured approval of your home loan from a lender. A pre-qualification is that you may qualify for a home loan. So, do your research and secure pre-approval of your home loan from a lender of your choice before you start shopping for your home!
As you look for your home, you may want to choose a buyerís agent to represent you for your home purchase. Remember, the sellers agent represents the seller and not you the buyer! That means that whatever offers you make or whatever you tell the sellers agent for the most part must be relayed to the seller. For example, if you tell the sellers agent that you could pay up to $200,000 for a particular property but relay a bid of $180,000 directly to the agent for the seller, the agent usually has a duty to tell the seller that you would pay up to $200,000 for their property. This would leave you with no room for further negotiations of the purchase price to the seller. So, consider getting your own buyerís agent that will represent your interests for the home you are trying to purchase. Consider getting a buyerís agent that will split or get a portion of the real estate commission for the home sell with the sellers agent so youíre not stuck paying a commission fee directly.
If youíre interested in purchasing a brand new home, it is recommended that you have your own buyerís agent representing your own interests and not the agent who represents the builder! In most cases, you will find that the terms of the contract for the purchase of the new home presented by the builderís agent, is one sided and may not protect your interest! So, get an agent that will represent you for your new home purchase. You will find that you may have a better peace of mind during the purchase of your home.
Buying a home is probably the most expensive purchase youíll make in your lifetime. Itís also one of your bigger investments for your future. So, itís important that you do your research before you buy and take precautions that will make your home purchase easy going, less stressful and carefree! So go ahead, get started on your home purchase today!
Dallas Appraiser LLC
If Real Estate Investment Is So Great, Why Doesn't Everyone Do It?
by Dallas Appraiser L.L.C. on 03/22/14
If Real Estate Investment Is So Great, Why Doesn't Everyone Do It?
Word Count:
578
Summary:
The Real Estate Investment Version of the Fear Factor.
Keywords:
real estate investing, real estate investor, rehab real estate, distressed property, fixer upper, hard money
Article Body:
Oh, that's an easy one. I can answer that in one word. FEAR.
Real estate investment is a great way to change just about everything in your life, but it's one of those things where doing it for the FIRST time is the toughest. In fact, the second is exponentially easier!
It's fear folks, plain and simple! And why doesn't make much sense to me. Consider that:
- "Everyone knows that the surest path from low income to millionaire is through real estate." This appears to be a well-documented truism. I've seen a similar statement in some of the most prestigious financial resources on the planet.
- I rarely hear of someone losing it all from real estate. I might be living in la-la land, but for the most part I only hear of folks prospering from real estate investing. Sure, occasionally I hear of deal going bad or growing complicated, but not to the point of ruining folks.
- There are a lot of properties available. Folks are still divorcing, dying, or just not paying the bills and getting foreclosed on. Much of the foreclosure activity is not SEEN by the public, but most of it is available to the public.
- There are a lot of properties available at below market prices. That's been my experience anyway. Of course, I have folks right here in my area that tell me they can't find properties. I just smile and nod my head.
- Rental demand is strong and rents never go down!
So with all this common knowledge and raw opportunity out there, why isn't everyone investing in real estate?
Here's my theory.
* Real estate transactions are more involved than going to Wal-mart for a pair of undies, so that scares people. You have to learn a little bit. Mind you, this isn't a lot of learning, but it is apparently enough to keep some on the sidelines.
* The numbers are big. I've seen folks nearly CEASE UP mentally talking about large amounts of money. Merely talking about a $100,000 mortgage causes some people break out in a sweat.
* Horror stories. Everyone's heard about some scam, sink hole, meteor or something else on the fringes of believability that has happened somewhere at sometime. I mean, there is SOME risk involved.
* Fear of taking action! It's hard to do something you've never done, and harder to do something you've never done before in a subject matter on which you aren't an expert! People fear something, which makes facing that fear hard. What I'm referring to is what I call, "IT'S EASIER NOT TO."
So what does one do to face fear and make a change in their life,
Ah, that's just as easy as the last question. I can also answer that in one wordÖKNOWLEDGE.
Once properly armed with the knowledge they need, most folks can overcome their fears to the point of taking action.
So if you are contemplating taking your financial future into your own hands by investing in real estate, FOCUS on one thing for the next 3-6 months. Buy books or courses, got to real estate investing club meetings, visit websites and get on discussion groups. Let those things be your action steps for awhile. I suspect you'll be ready to dive into the market with the knowledge you'll gain.
I have a motto.
"Knowledge Always Precedes the Money."
Dallas Appraiser LLC
Gated Communities in Costa Rica
by Dallas Appraiser L.L.C. on 03/19/14
Title:
Gated Communities: A Safe Bet
Word Count:
439
Summary:
Many of the new property developments on Costa Rica's beautiful "Gold Coast" are gated communities. These are an ideal choice for investment, especially if you aren't planning on living in your property all year round.
Keywords:
gated communities, costa rica gated communities, vacation homes, costa rica vacation homes
Article Body:
Many of the new property developments on Costa Rica's beautiful "Gold Coast" are gated communities. These are an ideal choice for investment, especially if you aren't planning on living in your property all year round.
Owning land in absentia can pose some unique issues in Costa Rica, where squatter laws give an individual some rights to land if the legitimate owner has allowed them to reside there for over a year. This doesn't mean that you've given them consent to live on your land ñ it simply means that you haven't kicked them off. Squatters look for uninhabited land and set up residence, sometimes planting a few crops, and hope to remain undiscovered long enough to make a claim.
There are many ways to avoid this headache ñ you can have someone local check on your property, employ a caretaker (and keep good records so that they can't claim squatter status), or visit your property every three months. If squatters are discovered within 90 days the police are required to remove them from your property. To have them removed after a year, the legal landowner must go through a lawsuit which is an expense (and headache) that most people would rather avoid, and in some cases they could even lose ownership of their land.
An easy way to avoid this is to buy property in a gated community. This option ensures that your home is watched when you are not in town as well as having additional benefits. Gated communities are generally a more secure option than striking out alone, especially in areas that are big tourist destinations. Costa Rica is a very safe country: violent crime rates are much lower here than in other countries but petty offenses such as theft and property crime are not uncommon, especially in traveler-dense areas. Many condo developments and gated communities offer an entry system and private security included in the residents' fees, and your neighbors offer many sets of eyes to keep watch over your place.
Most of these developments offer infrastructure that is well above the national average, with underground electricity, great roads and community areas, and some even offer their own water systems and shopping areas.
The other advantage of owning in a gated community is that you can easily enter a property management arrangement, turning your empty home into a money making venture that pays for itself when you aren't around. The Guanacaste area has become an increasingly popular resort destination because of its warm weather, amazing beaches and general beauty. There's no doubt that a smart investment in this area will pay dividends and gated communities are a safe bet!
Dallas Appraiser LLC
Getting Real Estate Advice From Uncle Sam?
by Dallas Appraiser L.L.C. on 03/18/14
Getting Real Estate Advice From Uncle Sam?
As anyone who has decided to buy or sell a
piece of property can tell you, the entire process can seem daunting and
intimidating. Many who seek the help of a professional real estate broker spend
many a sleepless night trying to decide who is taking advantage of them more:
the broker or the bank? While there is no cure-all to this ages-old dilemma,
there is a new pamphlet available that helps real estate newbies navigate their
way through some of the red tape that comes with buying or selling real estate.
And it’s from the United States Government.
No, really.
The Federal Trade Commission has recently
issued a helpful guide that helps new buyers or sellers with some frequently
asked questions concerning real estate. Titled Selling Your Home? Tips for Selecting a Real
Estate Professional, the guide focuses on the proper amount you should
expect to pay for a real estate commission, the ins and outs of contracts as
well as business models.
While the guide is
a bit slim, weighing in at only four pages, it does come with some useful info.
Under the section about commissions, the guide explains that while six percent
is the industry standard, it is negotiable, and if your real estate agent tells
you there is a local or federal law on the books that says the commission must
stay at that rate, they are lying and it’s probably a good sign to find a
different broker who will be honest with you.
The guide goes on
to encourage prospective clients to try to negotiate for a lower commission,
since the broker needs your business just as much as you need theirs.
In the next section, the guide explains the
difference between full-service real estate brokers, and discount brokers and
emphasizes that if you go with a discount broker, you may have to do more of
the leg work yourself. The guide also says that while a full-service agent
usually provides all needed services for one flat rate, the discount broker is
more likely to have an “a la carte” approach, where for each additional bit of
help, there is an additional cost.
The guide goes on to provide advice on
negotiating contracts in your favour and not the banks, as well as info on
hiring a trustworthy real estate broker.
While taking advice from the federal government on, say, invading Iraq may not be a good idea, this pamphlet may end up being a godsend for those needing basic real estate advice. The pamphlet can be picket up at the FTC’s website
Dallas Appraiser LLC
Cognitive Thinking to Get over the Fear Of Money. Thunderbolt Brainstorming
by Dallas Appraiser L.L.C. on 03/18/14
Getting Over the Fear of Money
For those investing in real estate, you may find that there are several unknowns that have to be accounted for that are related to money. This investment relates to both home owners as well as those involved in the real estate business. There are several common fears that are related to money in real estate.
One of the major problems that are part of real estate investing is taking risks. If you are investing in a property to own a home, you will have to take out a loan. If you are unable to pay taxes or the loan at any time, you will be at risk of loosing the home. This can cause several levels of fear to occur, which may lead to the wrong loan being purchased for security. Knowing how much risk you are willing to take with your loan will define what type of loan you should get.
Another common fear factor with money is in relation to investing in a property during the wrong time. If the economy is at a low or if the market price is not good, investing in a certain property may mean a loss. This is a risk factor that many real estate companies will decide to take in order to sell a home. When deciding if this is a good investment or not requires some risk and can cause fear if you are unsure about the economy and sale of the home.
Money in the real estate business means taking risks. Whether you are a home owner or are in the real estate business, there will be several times where you will have to determine logical decisions without knowing if there will be money to back up the decision. It is important to acknowledge these fears so that certain boundaries can be set in relation to them. This means that you know when you are going too far with a purchase or investment or when the fears are holding you back from making the right moves. By knowing the financial details of a home purchase, you can move past your fears and make the right investments.
