Real Estate Partners – A Good Idea?
March 29, 2008 on 10:00 am | In Real Estate | No CommentsWe were looking for real estate partners because we were new to the Tucson area. We found that two identical houses here can be $50,000 apart in price if they are three blocks apart. Also, the styles are different from anything we had in Michigan, so it would be good to have some help figuring value and what buyers want.
At the Arizona Real Estate Investors Association meeting I announced that we had money to invest in fixer upper real estate, and we were looking for partners. The host wrote our names and phone number down on the overhead projector along with the others. About three days later we got a call.
Sam and Nikki were nice people, and we got along well when we met. Their offer had been accepted on a house. Looking at the comparison sales they had found, it seemed like a good buy. They had done rough estimates of the rehab and remodeling costs, and it looked like we could make some money. There would be a third couple involved, so the expected $75,000 profit would be split three ways. Agreeing in principle to the deal, we arranged to meet the other partners at the house after closing.
Too Many Real Estate Partners
Six people with six opinions can be a problem. I never understood why the beautiful wood floors had to be torn up and replaced with carpet. For that matter, I never understood why they couldn’t at least be carpeted over without the expense of tearing them out. Both my wife and I thought it was a crime to stucco and paint the beautiful brick exterior of the house, but were assured that buyers here would like that better. Raising the roof of one room seemed expensive and unpredictable, but the ceiling was a bit low.
There were plans and new plans, and weeks of stressful anticipation evolved into stressful worrying. We discovered that the houses in the area were selling for less than we initially thought, that the rehab cost would be more than we thought, and that all the other partners expected to do much of the labor, rather than hire it out. The profit projection dropped from $25,000 each to $10,000, and we felt there might actually be a loss.
We dropped out of the deal. Fortunately the other partners had procrastinated for several weeks on the signing of the joint venture agreement. They also were decent people, and had noticed our anxiety. Nikki called to suggest we let them find a way to finance it without us, about two minutes before I was going to call to say we were out. It ended amicably.
We learned a lot. I’ve had partners before, but I let the partner take my money and do his thing to make us a profit. This group decision-making, especially with so large a group, just doesn’t work, at least not for my wife and I. One day, standing in a Home Depot hopelessly looking at carpeting samples, I also realized that non-financial contributions need to be clearly defined according to each persons knowledge and skills.
We truly hope they make a lot of money on the project. If they do, we may even be willing to be partners with one or the other of the couples. If so, though, we’ll just look at the plan, put up the money, and let them do their thing. That’s my idea of real estate partners.
About the Author:
Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
Yuma Arizona Real Estate – What is going on with it these Days?
March 28, 2008 on 10:00 am | In Real Estate | No Comments>
Arizona is a very popular state. There are towns of all sizes and types ready for you to fall in love with. Just about everyone loves the sun and what better state to find it? One of the up and coming towns in Arizona is Yuma. It used to be known as a winter destination only, but nowadays many are discovering that it’s a super place to live full time. Although the city is rapidly growing, it still maintains enough small town feel to appeal to those put off by huge cities with major pollution and traffic problems. If you crave time in a city, Phoenix, San Diego, Los Angeles, and Las Vegas are just a few hours away. For excellent shopping and cultural variety, Mexico is close by.
Real estate in Yuma is in great shape right now. Because people are discovering the benefits and joys of Yuma, there is a lot of building going on. That means that no matter what your needs are, you’re sure to find it. For instance if you’ve done well and want an upscale home, you’re in luck. There are beautiful estate style houses with swimming pools and roof patios, and some acreage to ensure your privacy. This will be perfect for you if you’re ready to retire or bring your business into the Yuma area.
Not to worry if you’re not in an upper income bracket. There are plenty of starter homes and overall housing prices are lower than many areas of the country. You may be thinking of starting a family or you may already have children; in either case you’ll find the perfect home in Yuma. There are a number of excellent schools for kids of all ages, as well as tons of outdoor activities for the whole family.
If you are more interested in an older home in Yuma, there are a variety of vintage houses to pick from. Many of them have already been updated and some are pure fixer uppers; perfect places to get your creative juices flowing. There are a number of neighborhoods for you to enjoy and many offer river and mountain views.
If your real estate desires run to condos, mobile homes, or investment property, you’ll find them in Yuma too. There are dozens of various opportunities just waiting for you to check out in this marvelous desert oasis.
If you aren’t familiar with the latest goings on in Yuma, AZ you may be surprised. Mixed in with the housing real estate market are retail and other business opportunities. In order to keep up with the influx of people, the city planners are creating a beautiful setting for inhabitants to work and play. The Yuma Palms Regional Center is just one part of the new downtown and mall beautification and modernization going on. After all, an up and coming city needs a place for people to gather for entertainment, shopping, dining, and visiting.
Yuma real estate is hot and now that Wausau Mortgage Company is in town, your mortgage choices are as varied as your needs.
About the Author
Click here to get a free copy of Jeff Nelson’s, “7 Common Home Buying Mistakes,” a 10-page report that describes the mistakes to avoid when purchasing your new home in Yuma, Arizona.
All Real Estate Agents Are Not Created Equal
March 28, 2008 on 12:00 am | In Real Estate | No Comments**Important things to look for in a Real Estate Agent**
When selling your home, one of the most important services your real estate agent can perform is helping you set the listing price. Most people approach a sale thinking they have a pretty good idea of what their home should sell for. But the fact is, until you do some serious calculations based on current market trends, sale prices in your area, and what other similar homes have recently sold for, there is no way you can possibly know what price to set. Your agent will be able to help you with this process.
**Stay away from agents who promise an unrealistically high price**
Good real estate agents know they cannot always get the price you expect to get. They know the market dictates your price. Any experienced real estate professional will tell you that listing your home at an unrealistically high price is the best way NOT to sell it. Find a knowledgeable agent who knows your market and is realistic about setting your price.
Don’t list with an agent who promises he or she can get you an unreasonably high price for your home. Some agents use a high listing price as a ploy to get you to list with them. You soon discover that the market dictates the price. After a few weeks of getting very little traffic at the high price this agent will come back to you and suggest you lower the price in order to generate traffic. Unfortunately, you’ve lost what is usually the most critical time period in selling a home – the first few weeks immediately after it is listed.
**Don’t list with a part-time agent**
Agents who are full-time professionals have a better feel for the market, have more connections within the industry, and will generally work harder for you. Why? Because their livelihood depends entirely on their ability to successfully and repeatedly close real estate transactions.
**Look for an agent who is aggressive about getting new business**
Agents who don’t advertise or who are not actively looking for business are probably talking to fewer people and doing fewer deals. Agents who are out in the market looking for new business have their fingers on the pulse of the market. They know what buyers are looking for, and how much they are willing to pay. They will also know of people who are actively looking to buy, and are dealing with more agents who have buyers too, so they have a better chance of selling your home quickly.
**Experience and productivity are important**
As with most professions, experience pays in real estate. Experienced agents know the market and the marketing process. They are better at anticipating the kind of traffic you should expect, and will have valuable advice on how to expedite your sale. In other words, an experienced agent who is actively involved in the market has the best chance of quickly and smoothly helping you to buy or sell your home.
**Use an agent who is part of a larger organization**
Agents who are part of an active, aggressive local office will have access to “inside” information that could be helpful in your quest to buy or sell a property. Virtually all agents now have access to MLS listings, but new listings often take a number of days to get on the MLS system. A “connected” agent will know about new listings immediately after they come available.
Be sure your agent is part of a national network? This is less important than it used to be because there are fewer and fewer truly independent agents out there. Most agents in Canada are affiliated with a national chain, and all have access to MLS listings. Being part of a national chain is especially important if you’re selling in one city and moving to another. Your selling agent can refer you to a professional, compatible agent in your destination city – and keep in close contact with that agent so both your selling and buying efforts are closely coordinated.
**Use an agent who has your interests at heart**
Find an agent who seems primarily interested in sharing expertise and market knowledge in an honest and straightforward manner. Be suspicious of agents who just tell you what you want to hear. Remember that neither you nor your agent can determine the price of your property. It will be determined by the market. Your agent just has a better chance of anticipating what the market price will be.
Don’t deal with and agent who spends a lot of effort trying to market additional high-priced products and services? The primary service your agent can offer you is fairly simple: to set a realistic price, and to represent you in the market place. When it comes to additional services such as special listings, and other expensive add-ons, ask yourself if these will attract prospective buyers and help you sell your property more quickly.
Many of the same questions, hesitations and strategies connected with seeking out professional assistance in any field — whether you’re looking for a doctor, dentist, lawyer or accountant — come into play when you’re selecting a real estate agent.
It doesn’t matter whether you are buying or selling. And it doesn’t matter whether you respond to a printed advertisement, see an agent’s name on a sign, or are referred by a friend or relative, it is important to select the right agent. In fact it might be worth meeting with and discussing your situation with at least two different agents before you make a final decision. At the very least you should arm yourself with some clear requirements like the ones above before making your final decision.
About the Author: Rick Hendershot is a marketing consultant, writer, and internet publisher. For more Real Estate articles see Free Real Estate Articles. Go here to post a Free For Sale By Owner listing.
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