Top 10 Features of a profitable investment property

Many are aspire to accumulate income through investing in real estate. If that is you, I applaud you, real estate IS a deed a good investment IF done properly. Many lose their shirt in not picking the right deal. Here are a few handy tips and things you should look for when looking for a good real estate investment property.

1. Neighborhoods - The quality of the neighborhoods in which you buy will influence both the types of tenants you attract and how often you face vacancies. Here's an example if you invest in a property close to a university, you can assume most applicants will be college students and the lifetime of there stay will vary.


2. Property Taxes - Property taxes vary from property to property, and if you planning to make money from rent you have to calculate what you will be losing to taxes. many investors believe high property taxes go hand in hand with log term tenants. be ware of this mistake. Speak with the towns assessment office.


3. Schools - Property prices will reflect the reputation of the surrounding school. Although you are investing for a cash generating machine, the overall value of your property comes in to play when you sell.


4. Crime - In most cases people avoid crime. Go to the police station or library to for the accurate crime statistics.


5. Jobs - Locations with growing employment opportunities tend to attract more people. Find the US Bureau of Labor Statistics or local library to find the area rates for that particular property


6. Amenities - Check the neighborhood for current or projected parks, malls, gyms, movies and other perks that attract renters.


7. Building Permits and Future Development - Find out what new development is being planned in that area. If there is building that it is a good growth area. But be cautious of new development that will cause a loss of activity to a friendly space


8. Amount of Listings and Vacancies - If there is an unusual amount of vacancies in this area, run as fast as you can. To many vacancies are never a good sign.


9. Rents - This is the bread in butter. Find out what is the average rent being paid in that area. If the average rent doesn't cover your cost, keep looking.


10. Natural Disasters - Insurance is another expense that will have to subtract from your returns, so its good to know how much to carry.

5 things to know about buying a vacation home

In the spirit of the best vacation season, I want to inform you on 5 things you should know about buying a vacation home. There are lot of good reasons to buy one beside from being financially good investments. As with any real estate, location counts more than any other single factor. The best vacation properties offer something special - a view of the ocean, a mountain vista, a dock on a lake. For maximum appeal to potential renters or future buyers, look for a place within three hours drive of a major metro area. Longer distances or difficult roads make weekend trips a pain, and that limits your market. Lets jump right in

NOW is a good time to buy:

You hear me say this all the time but seriously - in many second home spots, prices are still close to their five- year lows. According to Fiserv, single-home prices in Napa, California, are down 47% from thier 2006 peak for example. The average house in Ocean City, NJ costs 24% less than it did in 2006.

A HOME is a better deal if it's rent-able:

It's a smart idea to shop as if you're going to the place out. That's because home's rental potential can affect its resale value.

Before you make a bid, make sure that the home owners association or township allows short-term rentals (many do not). And keep in mind that renters prefer homes with at least one bathroom for every bedroom.

DO NOT count on rental income to pay your bills:

According to homeaway.com the typical rental property rents out just 17 weeks a year. Including management fees also cut into your profits. TO get a handle on a property's income potential, ask a management company for a history of rental dates and rates for homes comparable to the one you're considering. If you monthly loan payment is less than or equal to one peak week of rent, you're likely to break even.

Lenders raised standards:

If you use the property primarily as a second home and you'll pay about the same mortgage rate as you would on a primary residence. If you need rental income to qualify for the loan, however, the house is treated as an investment property - so you'll have to put down as much as 25% for the down payment and pay up to one percentage point more in interest.

TAX Benefax

Stay there for less than two weeks or 10% of rental days and you can deduct operating cost!

Call or email us to find you a perfect vacation home.

Sincerely,

Team Sohail

3 Investor Benefits of Working with a Real Estate Agent

You may be an investor that typically avoids real estate agents whenever possible because you don't want to deal with real estate commissions. That's fine and dandy, but as investor look at it as an investment - because the return and turn over is great.

Let's go into some of the benefits:

• Agents are a commodity to the banker.

Banks work closely with agents on traditional purchases. They've built that relationship. There is an institutional bias for the real estate agent. The bank is more likely to consider an offer that makes sense if it's presented by someone who speaks their language. Agents can also grease the wheels and get your offer in front of a lender, you can get an answer more quickly, and potentially close more deals

• Real Estate Agents have access to certain professional and amazing contacts

A real businessman knows that many times it's not what you know it's who you know. Real Estate Agents know people from all walks of life. A typical agent has a list of contractors, brokers who access to banks (bank own properties), title companies to help close on deals, lenders who provide loans, insurance companies etc.

• Real Estate Agents have a large database of Listings - MLS

Once a solid relationship is built, the agent knows your investment style and strategy. They will have an alert for properties that fit your need on the MLS, and if you  may even  bring you properties that are not on the MLS because you know how to move them.

There are so many other perks in building a strong relationship with agents - research and contracts for example. So as an investor, it makes complete sense to find an experienced agent that can help you as much as you can help them.

Until next time.

-Team Sohail
www.teamsohail.com

6 things to avoid when selling a home.

You are guaranteed to sell your house faster and for more money if you avoid these common mistakes. To begin you will need a thorough house cleaning, open mind and home improvements

1.       De- Clutter your home

Stuffed closets, extra furniture, exercise equipment,  etc  make homes seems smaller than they are. I know it can be emotional and exhausting. But, it’s a must for making your house look like an attractive buy. Follow the six month rule – get rid of anything and everything that you haven’t used in six months. Look at the bright side; you can sell it for extra cash.

2.       De-personalize your home

This means to take down family pictures, knick knacks, hide all evidence that you own pets. This will allow the buyer to imagine themselves in the home. You also get a head start at packing your things.

3.       Deep clean

You may want to do a deep cleaning of the house especially the kitchen. Did you know the kitchen is the room most likely to attract or repel a buyer? So make sure it’s at 100%. You going to want to make sure you invest a little in repainting the walls and repairing the damages of the house. It’s cheaper to get them fixed now as oppose to the buyer using the damages as a negotiation points. Make sure that your house is well lighted. Get rid of heavy drapery, take down wall paper and put in high watt lightening.

4.       Work on curb appeal – Does your house stand out?

Go outside of your house, does it catch the eye? Make sure the grass is green and cut nicely, plant some flowers and colorful gardening adornments. Consider a flowering tree or sitting area. And don’t forget about the back yard!

5.       Now your move in ready – just make sure your Realtor can get in!!

Make sure the realtor is bringing in pre-qualified buys. Make sure your pets are gone and your family is out of the way. Don’t stalk your potential buyers. Everyone hates the annoying salesperson. Consider leaving yourself. Buyers feel freer to express themselves and ask questions.

6.       Don’t be turned off by low ball offers

Look at them as interest points and a door to negotiate. Buyers are trying to get a good deal but would pay for a home they really love.

I hope this helps. Call or email us for more detail about selling your home 609-860-1587/info@teamsohail.com .

Until next time,

Team Sohail

5 things to avoid when buying a home for the first time

Making a decision to buy a home is a big decision. And with that there are a lot of things you have to watch out for. It’s very easy to get caught up in doing the wrong thing to get that house you really want. So let’s jump right in.

1)      Not shopping around enough for the right mortgage.

Don’t sell yourself short. Talk to a lot of lenders. What happens often is that home buyers talk to realtors and they get excited about moving into their dream home and they jump on the first mortgage offer they get approved of and end out missing out on the best deal. Now more than ever, you can get amazing interest rates – and ultimately more afforadable. Make sure you shop around.

2)      Not acting quick enough.

We call this analysis paralysis. This does not mean to jump in without doing your due diligence. After you’ve done your homework and pre-qualified for your loan, and the proper financing isin place and your ready to make the purchase. When you find the one, you want to move to quick. Write the offer and seal the deal. If it’s good to you its good to someone else – don’t lose it.

3)      You must have the right agent

The bottom line is that you need an agent who will fight for you and look in your best interest across the board – and get you the best deal possible. So make sure when you go to buy a home you have the an agent that has experience, knowledge, and personal strength to go out a fight for you to get you the best price, the best terms and best house.

4)      Not making your offer attractive enough.

Many people when they buy a home forget about that the seller is also looking for the best deal and gets approached by many other buyers. Some things that could make your deal more attractive is putting more money down, shorter escrow periods, being flexible and less request. So think about the side of the seller and their bottom line.

5)      Think with the end in mind – The resell.

Most buyers again, get overly excited about buying the home they forget about when they are ready to move out for a new home. An average home buyer stays in the property for only four years. So what does that mean for you? How do you position yourself to be able to resell at an equitable value?

With that, Team Sohail always has your back. If you have any questions email us at info@teamsohail.com or call 609-516-4138

is this good time to buy?
Let's see, mortgage rates after ranging from 3.96% to 4.95% in 2011, the average mortgage rate for the year was about 4.45% - never seen before in the history of the United States.  Now what are the odds that interest rates will stay this low?  The chances of of interest rates rising by 1% is about twenty (20) times more than home prices going down another 10%. 
Back in 1990, a $100,000 home was costing about $877 per month. Today the same home is about $200,000 and costing about $890 at 4.45% rate.

Affordability measures the ability to buy

Affordability measures the ability to buy - that is, the amount of a family's income consumed by the mortgage. In 1981 it took a whopping 36% of family's income to pay a mortgage. Today it takes only 13%, that is indeed a historic low. That also means that buyers are spending 20% less of their income on home payments than they were doing it 30 years ago. Questions are welcome!

Feeling is the bridge

Feeling is the bridge between us for others and also what we want to do. Feeling influences so much to our thinking and our motivations, and also our actions. Feeling have the big role in our lives. When feelings are good; it's easier to live, easier to achieve success, easier to have good relationship with the ones around us, easier to live with full potential, let's guard our feelings to have only good feelings.
Try everyday to share something good with others. Be tactfully honest; as much as possible cause it gives the desired long-term healthiness. Think good of others; just see and appreciate their specialties, focus on their 9 good things and ignore 1 in case if you see it. Have a clear mind. Counterbalance your day; make sure to spend time where it needs to be spent. Run towards the people who help you. Keep your will-power on full charge and every choice you make throughout the day is a drain on your will-power.
Remember, it’s not what happens; it’s what you carry with you from what-happens.
Be. Do. Have.
Always come from contribution..........

Why now is a good time to buy a home

Why now is a good time to buy a home