Getting Offers Accepted

Jul 3, 2017 by

Getting Offers Accepted

There are times when your offer may be quickly accepted or rejected, but quite often an offer will sit out there for weeks without any response which leaves you in limbo. When you consider that sellers will often have to choose between multiple offers, getting offers accepted can be a trying experience. Here are a few tips that will help get your offers noticed and acted upon in a faster manner. While not all offers will be accepted, it is better to know sooner than later.

Keep the Offer Clean

If you are bidding on a property that has several other bidders, you will need to make a clean, clear offer that is easy to understand. A sloppy or incomplete offer, even one that is missing a single signature, can doom your chances immediately. So, be sure to fill out the contracts correctly and go over your presentation so that it is clear and clean. You may still get rejected, but often the notice will come sooner since you do not have what the seller wants. It’s not the best news, but at least you don’t have to wait weeks to find out.

Finances in Order

No matter the clarity of your offer, if the finances are not clear, then you might be rejected quickly even if it is the highest bid for the property. You will need to show that the finances are present for you to make the purchase and be sure to update the information so that it is no more than thirty days old. The more details you provide in your proof of funds, the more serious your offer will be taken if it ranks among the best.

Plan Your Concessions

The art of the deal so to speak is not making concessions, but how you negotiate them to the greatest effect. This means that you must be willing to move, but in a manner that still provides confidence to the seller. So, moving a little on the price or acquiescing to a specific demand is one thing, but quickly agreeing to concessions that move you way off your asking price may cause the seller to balk. After all, if you are willing to move that far, that quickly, there must be an unknown reason for doing so.

It’s More than the Price

Quite often, the highest bidder does not get the property. There are many factors as to why this is true, but the more you can make your offer stand out beyond the amount itself, the better your chances will be of getting the property. One way is to provide a reason why you made the offer at that amount. From similar sales to the condition of the property itself, use what you can to demonstrate why you bid what you did for the property. You may be surprised at the difference that it makes.

In the end, getting offers accepted often requires greater clarity in presentation, conceding where you can, quickly reacting to counter-offers, and providing good information on your funding sources. This will help make your offers cleaner, easier to understand, and provide a better chance of being accepted or at least considered quickly.

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Promoting Your Business

Jun 26, 2017 by

Promoting Your Business

Thanks to the advent of the internet, there are so many ways to market your business that the options may seem overwhelming at least at first. It may take a little time to find the right methods of promoting your business, but the result will be well worth the effort. Here are a few ways that you can effectively market what you do for maximum impact in your investing efforts.

Bring Your Passion

Your passion is something that can be brought into your efforts, so you should use it appropriately to help you advance your efforts. Be sure that you incorporate it in a positive sense so that you do not alienate anyone intentionally with it. If you have a passion for helping others with a specific cause, you can use that as part of marketing your efforts. For example, donating a percentage of your profits to a favorite cause or charity can be most effective in promoting your efforts.

Talk to Those You Trust

Running a successful business is something that is not done alone. You need a small group of trusted mentors, friends, family, or associates whose opinion you trust to help you get through the tough times. Even if you are only investing on a part-time basis, having a close group around you provides leads, insights, and pathways to deals that are simply not possible without them. You don’t have to be direct, but being there to help can provide you with great networking opportunities.

Become an Authority

There are few ways of promoting your business better than becoming a respected authority in the field. This will mean writing eBooks, articles, and posts on different aspects of the real estate environment. From short sales to tax liens and so forth, the better you can spread your expertise, the more people will become interested in what you do. In addition, the more people see what you do in the form of eBooks, social media posts, television or radio programs, and the like, the more your business efforts will grow.

Think Outside the Box

Promotion is more than just advertising, it’s about getting people’s attention. Quite often, participation in an established radio show or writing articles for your local paper will garner more attention than purchasing ads worth thousands of dollars. By approaching your marketing efforts in terms of working with radio and television stations, podcasts, and other forms of media, you can garner a considerable amount of business while spending very little, if any money for promotion. You’ll need to be persistent, but it can really pay off if you know your business.

You are going to have to step outside your comfort zone to achieve your dreams. This may mean speaking in front of large groups of people, creating a YouTube channel and submitting videos, or extensive networking with others in the business. Be prepared to go outside what you are comfortable with and explore new areas so you can succeed.

Promoting your business is still somewhat of an art form, but thanks to the internet there are so many more ways to reach potential customers.

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Avoiding Paint Color Mistakes

Jun 19, 2017 by

Avoiding Paint Color Mistakes

The wide range of color choices makes it difficult for anyone to know which is the right selection for painting your home. The key to avoiding paint color mistakes starts with the knowledge of the accepted methods and then expanding upon them so you can still make your efforts stand out. Here are a few tips that will help you choose the right colors to paint your home.

Combine Colors Effectively

While you can stick to the basic colors, keep in mind that you can combine them in many interesting ways. The key is to maintain a similar level of color intensity so one room does not stand out too much from the rest. The brightness of the colors that you mix together should be similar as well, that way a single color does not dominate.

The harmony of the mixture will be enhanced if the undertones are similar. Of course, this will be augmented by where you place the colors in each room so that the representation makes it stand out from the rest. Think of your mixture as putting variations to one color rather than trying to have equal amounts of each color.

Keep Neutral Colors in Mind

There is a reason that you see the color white in so many homes. White is a true neutral color that is readily accepted, yet has many shades which offer a little variety. No matter the style of the home, from colonial to mid-century modern to Spanish revival and more, neutral colors are the go-to colors for your needs.

This is because neutral colors can balance some of the heavier tones in the household and offer a simple backdrop for your favorite color variations. So, be sure to include neutral colors when you are painting, otherwise you will wind up with a home that may appear garish or unpleasing.

Space & Light

Color does more that affect how the eye perceives what is painted, it also affects the space and light in the room as well. The right color may cause the room to appear bigger, more expansive while reflecting more light. Alternatively, warm colors tend to make rooms feel somewhat smaller and cozier in nature. You can provide more proportion to a hallway when painting the end of it with a dark color. However, painting all the rooms the same color provides a connecting theme that offers a smooth visual appearance.

Basically, you want the colors to work well with the lighting and space that your home provides so that it can enhance what is there. Colors that do not work well together offer a disjointed, uncomfortable feel that will be noticed. So, start with colors that complement each other and use them appropriately so that their effect is one that enhances and not detracts from the positive attributes of your home.

You may want to consult with an interior designer or at least a paint professional to help in avoiding paint color mistakes that will affect your home.

 

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Quality Rental Property

Jun 12, 2017 by

Quality Rental Property

Not every rental property is one that can be turned into a cash cow. In fact, there are several features of a quality rental property that needs to be in-place before you consider purchasing it. After all, even if you create a showcase of fine living at low, affordable rental prices, it may not draw a single tenant because of other factors.

Here are four things you should look for in a potential rental property before you buy it. The goal is to buy a property that will have potential tenants flocking to rent it.

Location, Location, Location

What is so important for purchasing a home applies to rental properties as well. Once you have located a rental property for sale, the first step should be to examine the neighborhood and surrounding community. In this case, you need to think like a tenant and see if the location meets the following qualifications;

  • Easy highway access
  • Low crime neighborhood
  • Good schools if you plan on renting to families with children
  • Good demographics

The more desirable the neighborhood is for tenants living there, the more likely you are to rent the property. This helps with reducing vacancies and lowering the turnover rates.

Expenses

There is the cost of purchasing the property, but there are also expenses involved as well that you need to consider. This means the property taxes, insurance, average maintenance or repair per month, and other factors that play a role in your monthly expenses which will be subtracted from the payments made from renters. Also, consider the local weather conditions during the year as snow removal can be a considerable expense. If after all your expenses the rent you charge still provides a substantial profit, then you should consider purchasing the property.

Your Competition

If there are several other rental properties in the area, then you will need to consider how much your competition may charge in comparison to your rent. This means that small improvements you make to the property will probably not justify in the eyes of potential tenants a substantial increase in rent. You will need to see what other, similar properties in the neighborhood are renting for to have a good idea of what you can charge. Plus, if there are several properties close together with vacancies, that means the one you purchase might have trouble getting tenants as well.

Economy

You can learn more about the local economy by examining the demographics of the neighborhood with the rental property. If the economy is on the rise and new jobs being filled regularly, then you should be in good shape if the area is booming. However, there are other factors such as the quality of the school system, crime rate, and if a large employer is either coming to or leaving the area.  Unemployment rates are something to look at as well, we only purchase homes in areas with less than 19% unemployment.

By taking all the indications into account, you can make a proper evaluation of a quality rental property. This is valuable information you can use to know whether making a purchase is the right decision.

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Benefits of a Property Manager

Jun 5, 2017 by

Benefits of a Property Manager

Every real estate investor faces their own unique set of circumstances, even when they own similar properties. However, one question that many investors who purchase cash-flow properties will face is whether they should hire a property manager.

Before making the decision, the benefits of a property manager will have to be properly evaluated compared to the number and size of the cash-flow properties owned by the investor. Here are five potential benefits that you should consider.

More Free Time

Arguably the most outstanding benefit is how having a property manager taking care of the day-to-day details increases the amount of free time that an investor must do other things. The complexities of managing even just a few properties may take up a considerable amount of time. Here, the property manager can take care of the details so you can do other things.

Better Tenants

One of the most important duties of the property manager is creating more of the right kind of tenants for your properties. Good, cooperative tenants mean far fewer issues and avoiding otherwise bad problems that an unqualified tenant brings to your property. The property manager will screen each tenant, check their backgrounds, and do the legwork necessary to find the best tenants. While the process is never perfect, a skilled property manager can minimize the issues that take place by screening for the best tenants.

Lower Overhead

While you still must pay for the plumbers, electricians, and locksmiths, a good property manager has the right connections to get you the best services at the lowest prices. When hiring a property manager, this is one of the aspects you will need to consider. Over time, a good property manager with the right connections will help you save money over time thanks to their networking abilities.

Keeping Track of Expenditures

Good budgeting starts with knowing where every dollar is going in running your properties. The property manager will provide a detailed account of the monthly expenses so you know where your money is going. This can be quite important as you can spot potential issues and have them corrected to save money while keeping track of other important expenses that often get overlooked.

Running the Property

By handling all the aspects of running your properties, the property manager or firm brings their experience, expertise, and ability to oversee a property as efficiently as possible. This means that you can build a good rapport with your property manager and get sound advice which helps you make the best-informed decision about removing tenants, addressing potential repair issues, and planning so you can maximize the benefit of your expenditures. You get all this for a set monthly fee which can bring you peace of mind when having to run your properties the right way.

Understanding the benefits of a property manager will help you make the best-informed decision about whether to hire one for your needs. For those who own several properties or investors who have a lot on their plate, hiring a property manager or firm may be the best decision.

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Buying Down Your Interest Rate

May 28, 2017 by

Buying Down Your Interest Rate

It is no secret that interest rates are on the rise. In 2017, the rates have gone up a half a percentage point so far and the expectation is that they will continue to go upwards if the economy picks up. So, the question becomes whether buying down your interest rate on the mortgage is a good idea? Before you make your decision, here are a few factors to consider first.

How to Buy Down Your Interest Rate

To bring down your rate means paying extra fees, improving your credit report, or underwriting that can bring down interest levels. The easiest is to pay extra at closing which may bring down the rate you pay by a few tenths of percentage points. Two-tenths of one percent may not sound like much, but it will save you thousands of dollars over the course of a thirty-year mortgage.

Calculate the Rate

To know whether you should buy down your rate, you’ll need to calculate the savings on your monthly interest to repay the total cost in terms of points. A good rule of thumb is that you should pay down the points if you plan on staying in the home for longer than four years. However, you should also consider that getting a five-year adjustable rate mortgage makes no sense over a thirty-year fixed mortgage.

Any Issues with Buying Down Rates?

You’ll want to go over with your lender how long it will take the savings of paying down points to the repaying of points so you understand how valuable lowering the rates will be. The longer you stay in the home, the more profitable for you it will be.

However, if the interest rates should drop for some unexpected reason, then you may need to refinance which may interfere with the savings that you initially were paying. This is based on the possibility of interest rates going down which is a calculated one in this economy.

Are Rates Going Up?

The answer is yes. All indications are that the Federal Reserve will raise interest rates in the foreseeable future. This will affect lending rates which means that your mortgage rates will be affected as well unless they are fixed already. If they are not fixed, then you may be looking at interest levels that may go up gradually or sharply depending on the economy.

Is the Rate Buy Down Accurate?

There is federal law which requires a loan estimate to be granted within 72 hours of completing your loan application. This estimate will show you the cost of the loan and the percentages for the amount of the loan with the points being quoted. You’ll even know the dollar amount of the points.

Another reason to move on buying down rates is that lenders have a 43% threshold for income to pay for housing and non-housing related bills each month. If the higher rates push you over that threshold, you may not get the loan you want unless you lower the rates.

Buying down your interest rate offers definite advantages if you are staying in your home for an extended time. With rates currently projected to go up, you should seriously consider buying down to save money for the long term.

 

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