Real Estate, And Financial Planning: Best, When Used Together!

Many, often, articulate, some of the essentials, of financial planning, but, do so, without fully, paying attention, to what this should include, and mean! There are many necessities, including the need, to include, all possible components, which might enhance one’s ability, to be, as successful, from a financial perspective, as possible. However, many, only look at this, in terms of stocks, bonds, and other investments, without, fully considering, where real estate, should fit in, to the overall equation. It takes intelligent, financial planning, both, from an overall perspective, as well as, a specific one, to determine, how to create, the proper balance, and direction, for each of us. There is no such thing, as, a, one – size- fits – all, approach, but, rather, this article will attempt to consider, examine, review, and discuss, why, in most instances, real estate, should be, a vital part, of one’s personal, financial plan.

1. Beginning the process: One should begin, this process, by giving himself, a check – up, from the neck – up, and determining what his personal, financial goals, are, and why. Real estate, should be broken into two categories: personal housing; and investing. For most people, the value of their home, represents, their single – biggest, investment, as well, as housing, and owning, a piece, of the American Dream! In many instances, from an historical perspective, investing in real estate, has been a quality decision, because, not only, does the property, itself, help to keep up, with inflation, but, there are tax benefits (including depreciation, etc), and, when, done, properly, a positive, cash flow. Before, this can be done, effectively, and efficiently, it’s important to be prepared, for the financial necessities. These include: funds for down – payment, and closing costs; financial reserves for repairs, renovations, maintenance, and upgrades; and; a reserve for contingencies. When investing, consider cash flow, rates of return, and, both, the possibilities, and ramifications.

2. Do you wish to be a landlord?: Are you, ready, willing, and able, to be, a landlord, and the associated responsibilities, stresses, strains, hassles, and potential tensions?

3. Balanced portfolios: Wise investors seek to diversify, and, doing, so, means, properly, balancing, investments in stocks, bonds, savings, real estate, etc. Real estate, traditionally, increases, in value, at, or slightly, more, than the inflation rate, while, bonds, often do not, and stocks, are often selective, and challenging, to balance, and choose, properly and effectively.

4. Personal home: How important is it, to you, to achieve, some part of, the American Dream, by owning a home, of your own? It makes sense, to weigh, whether you should buy, or rent, where to do so, advantages and disadvantages, and the ways, to be, financially prepared, for contingencies, and enjoy it!

5. Investing in real estate: Some people use Real Estate Investment Trusts, or REIT’s, to participate, in real estate investing. They hope, to take advantage of professionally managed, portfolios, but, should, recognize, some are, more conservative, and income – oriented, while others, may be, less secure, and more speculative! Others begin their involvement by buying a two – family house, and it is wise, to weigh, the costs, versus, the potential, and risks.

Wise investors balance their portfolios, and, thus, their risk/ exposure. Are you willing to commit, to proceeding, wisely, and with your, eyes – wide – open?

Real Estate Business Tips – Do You Know Your Numbers?

I bet that if I asked you right now approximately how much money you had in your personal bank account that you would know the answer. And I bet that you probably keep fairly good track of the checks that you write in your checkbook log.

Of course, you are saying to yourself…so what’s the point? My point is simply this: you obviously have a pretty good knowledge of the financial numbers in your personal life, so how come you don’t know the numbers in your Real Estate Investing business? Now, there is more to knowing your numbers than knowing just how much money you have in your bank account and in your checkbook, so I don’t want you to think that you can get off that easy. Ultimately, if you want to be extremely successful as a real estate investor then you need to know, review, track, and work to improve the numbers of your business on a weekly, monthly, quarterly, and annual basis!

In my business, every Monday I get together with my employees and we talk numbers such as: How many letters were mailed out, how many calls we received, how many appointments were scheduled, how many houses we are trying to buy, how many houses we are trying to sell, how our marketing is converting, how, how, how, how…. It’s called, keeping a finger on the pulse of your business. Do you have a finger on the pulse of YOUR business?

If you are lazy, or think you don’t have enough time to compile and review your stats, or think that it doesn’t matter, THINK AGAIN! Here’s the reality of how important it is to know your numbers: No numbers = No business (period!). Everything in this real estate investing business revolves around numbers and simple math. My advice to you is to create some simple reports that you can easily analyze and compare once a week. It doesn’t have to impress a Statistician, just keep it simple and start to keep track of that which you feel is most important to your success. If you have an assistant or employees that can help you, then create the report and have them compile the data for you to review each week (that’s what I do).

Make a commitment to yourself to do this for a minimum of 1 month. If it seems to be too much work then you can stop, however you have to do it for a minimum of 1 month. About the 2nd or 3rd week your eyes will open wider then they ever have in the past as you’ll now begin to know your numbers. This simple act will make you smarter, more confident and more wealthy as you grow your real estate investing business …GUARANTEED!

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To your real estate investing success,

Brian Evans

The Work of a Real Estate Attorney

You are selling a home, buying a home or your home is in foreclosure. You have been told by everyone that you need to hire a real estate attorney. What do these kinds of lawyers do?

A real estate attorney handles all of the paperwork that is involved in transactions and litigation that clients are involved in. These lawyers work with everything that has to do with property law. They document and review all purchases, inspections, leases and appraisals. Whenever a title insurance issue or an environmental problem rears its head, they are able to resolve it.

Sometimes transactions relating to buying and selling homes go wrong. If a lawsuit needs to be filed and a court case developed, this legal professional is there to see it through to the end. It is also common for a real estate attorney to assist lenders in carrying out foreclosures. On the other hand, you can also hire this type of individual to help defend you against foreclosure if it threatens you.

Drafting Documents

Document drafting is an important job of the real estate attorney. Deeds must be prepared for leases, rental agreements, conveyance transactions, financing agreements, and purchase contracts. Agents are permitted by law to help their clients in filling out these sorts of documents, but only licensed lawyers have the ability to draft and revise the documents.

Lawyers who work in this area of the law have plenty of experience with many different types of transactions as they relate to property law. For this reason, clients often turn to their legal counsel to help them to negotiate the terms and the conditions of the deals that they wish to make.

Reviewing Transactions

Transaction review is another duty performed by a real estate attorney. Sometimes a legal professional will be asked to review a transaction and offer advice in regards to it. The client will negotiate the deal on their own, and will then sign the contract and ask the lawyer to perform what is known as due diligence on it.

The legal provider will look over the legal title issues, as well as the environmental issues, contracts, and any reports and documents connected to the transaction. These individuals have the specialized training necessary to spot problems or inconsistencies that those without the same training would not be able to spot. The client is prevented from falling into any legal traps by having the lawyer carefully examine all of the paperwork associated with the deal.

Litigation

Unfortunately, not every transaction in this area works out. When one does not, a lawsuit may ensue. A lawyer can be hired to represent a client who must become involved in litigation. They will then bargain with opposing counsel to try to work out a settlement, participate in the hearing, and if necessary, take part in the trial that may ensue.

Hiring the Right Real Estate Attorney

Investing in property is a very important decision in one’s life. You are going to invest all your savings, in some cases a hefty loan, into buying a property that you will cherish for the rest of your life. You won’t want to spend that money buying something that’s not worthwhile. Getting cheated is often possible especially when you are involved with investments. Even if you are not really cheated with the property, you can always be cheated while signing an agreement or making that buying decision. You could be asked to agree to clauses that are not legal or, something like that. It is always good to hire a real estate law firm who would give you the perfect legal advice in such cases. After all when you are investing a lot of money buying a property, investing a small amount in an attorney is good idea to protect the legal issues. When hiring a law firm or its attorney, there are some aspects that you should not ignore. Here’s how you select the right real estate attorney for your property related investment.

Referrals or Relationships

A good real estate attorney could be realized with good relations. Probably when you dealt with a law firm in your last dealing, you made good relations with them. This would help you in your current dealing as well. But, if not then try to get some good references. Your neighbour, your relative or, your best friend could have hired a real estate law firm in the past when selling or buying a property. You can ask them about it and, get a real good deal. Hiring a real estate law firm from references or past deals makes sense as you get the right attorney. Remember, its about your property and the legalities of that property. So, you need to make the right choice in here.

From the Bar Association

If you have none of the above mentioned sources, you could probably contact the bar association in your state for help in the same. They can provide you with a list of attorneys who deal with real estate on a daily basis. In fact, you can even come up with listings of law firm dealing in real estate. Both of these together make up for a good research and comparison. You can ask people around you and, do some research before choosing the right attorney.

Consult your List

Once you have come up with a list of attorneys, you can probably consult a few of them personally. These personal meetings can help you understand if they have the right experience and talent to get you through your property dealing. You can even seek some legal advice during these consultations. If you feel the attorney suits you, you can close the deal with him and hire him straight away.

Legal part in property matters is very important. So, make sure you spend enough time and money in hiring the right attorney.

5 Ways To Fund A Real Estate Purchase

Whether, one is purchasing, his first home, or has done so before, if it is for his primary residence, or investment purposes, or, for a second/ vacation – home, one reality is the common bond! In order to buy real estate, you have to come up, with the necessary funds, either through, one way, or a combination of approaches, in order, to close – the – deal. There are several options, and, some depend, on your personal credit, the type of property, etc, so, with that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 ways, to fund ant real estate purchase.

1. Personal funds: Some people, either, have accumulated funds, by selling another house, investments, personal business earnings, etc, and, use these, to pay cash for the property, they plan, to purchase. Some home sellers seek these times of buyers, because, they often, proceed, with fewer hassles, and other delays, which might occur, when there is a mortgage, involved.

2. Family and friends: Often, especially, for first – time homeowners, financing a house, and, thus, owning a home, of one’s own, is challenging, because most mortgages require a 20% down – payment, and, with the ever – increasing price of real estate, in many regions, is difficult! Therefore, many seek, alternative approaches. One, which is usually, the first, for many, is asking for monies, from one’s family, and/ or, friends. Often, a young couple, turns to either, one, or both sets of parents, for help. At other times, we see close friends, willing, to assist, in creating, creative financing.

3. Seller – financed: Although it happens more often, in commercial property, or in sales of professional practices (medical, dental, legal), we often witness seller – financing, used, to make a deal, work! Simply, stated, this is when, the existing owner, agrees to, hold the paper, in order to create a deal, and help it, get done!

4. Conventional mortgage: A conventional mortgage is acquired, usually, from, either, a mortgage banker, or broker. This is the most common/ typical way, people buy their personal homes. Usually, someone puts down a down – payment, and finances the balance. A conventional loan is usually, for a term, ranging from about 15, to 40 years, and the individual pays a fixed rate, for the duration.

5. Alternative mortgages, including, variable rate, and/ or, lower amount of money, down: Alternative mortgages, function, much like a conventional one, except, either, the interest rate, is variable (fixed for short period, and adjusts), or the lending institution permits a lower down – payment.

A wise home buyer explores, learns about, and knows, his financing options/ choices, and proceeds accordingly. Will you try to be a better informed consumer?