Author: The Genesis Home

Inspired by Genesis Home

The Genesis Home Podcast: The Reality of Real Estate with Jaison Joseph of Exp Realty

Deadly Mistake #1: Thinking you can’t afford it:

Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own new home.

Buying a home is the smartest financial decision you will ever make. In fact, most American and Canadian home owners would be financially broke at retirement if it weren’t for one saving grace – the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership.

Real estate values have always risen steadily. Of course there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make a mortgage payment the amount that you owe on the home goes down and the value typically increases. This owe less-worth more situation is called equity build-up and is the reason you can’t afford not to buy.

Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people.

Deadly Mistake #2: Not hiring a buyer’s agent to represent you:

Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many home buyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyer’s agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer’s agents can help you find the best home, the best lender and the best inspector. Best of all, in most cases, the buyer’s agent is paid out of the seller’s commission, even though he/she works for you.

Trying to buy a home without an agent at all is, well… unthinkable.

Deadly Mistake #3: Getting a cheap inspection:

Buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant. As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. Do not let your real estate agent, a patty-cake inspector or anyone else talk you into skimping here.

NACHI front-ends its membership requirements. NACHI turns down more than 1/2 the inspectors who want to join because they can’t fulfill the membership requirements. NACHI certified inspectors perform the best inspections by far. NACHI certified inspectors earn their fees many times over. They do more, they deserve more, and yes they generally charge a little more. Do yourself a favor…and pay a little more for the quality inspection you deserve.

If you are interested in a way to get involved in the real estate industry you should look into foreclosure investing. Many people avoid this type of investing because they are not aware of the details that go along with it. By simply learning about foreclosure investing, you will be able to join this industry in no time at all.

The first thing that you need to know about foreclosure investing is who you will be buying the house from. Foreclosed homes are properties that have been taken over by the bank because the past owner failed to pay his or her mortgage. When this happens, the bank then needs to sell the property back to the public so that they can start to collect a profit again. The longer that the bank sits on a foreclosed home, the more money they are going to lose. Being that banks are always in a hurry to sell properties back to the public, the buyer definitely has a huge advantage; this is what makes foreclosure investing so profitable for thousands of people ever year.

When you are looking to get into foreclosure investing you should realize that you will be able to find properties that are greatly discounted. It is not uncommon for a buyer to be able to find a property for up to 40% off of the market value cost. By purchasing properties at this price and then selling them back to the public, you can make a lot of money. Another reason that foreclosure investing is so popular is because there are a lot of these properties to go around. In almost every city in the United States there are foreclosure properties available for purchase.

The only thing that you have to do when getting into foreclosure investing is find the homes that you want, and decide how much you are willing to pay for them. This can be done by simply scouring your newspaper, or joining a service that will supply you with homes in your area.

Overall, foreclosure investing is a huge industry at the present time. There are people all over the country that have turned their love of foreclosure investing into a full time job. If you are interested in getting involved with the real estate industry, there is no better way to do it than by investing in foreclosed properties.

It doesn’t really matter what kind of investing you are participating in, it’s almost always a wise idea to have multiple streams of income in order to maximize your profits while spreading your risks. Even within the confines of real estate investing there are different types of investing that can help you spread your risks when markets meet turbulent times and this is a very good safety net for those who do not want to feel as though they are gambling away their investments on a real estate market that is fickle on its best days.

You really have two courses of action when it comes to bringing in multiple streams of income when building your financial portfolio. The first is to spread your real estate wealth and investments across several different types of real estate investments. There are a few types that come immediately to mind. First, there are rental properties. You have two options even with these. You can either choose to rent properties outright to families, students, singles, and the elderly in your town or you can offer a lease or rent to own situation for those who have struggled in the past but still have the dream of homeownership.

Other options for bringing in multiple streams of income through real estate is to have a few rental properties and couple those with a few flips in the works, perhaps a commercial property or two, and a pre-construction deal or vacation condo in the pipelines. One thing is certain you should always be on the lookout for your next real estate investment if you really want to make good money in this business while having a little added security. Rentals are passive income for the most part, especially if you have a solid property manager taking care of the details and the other investments are often icing on the cake.

If you want a truly diversified portfolio, it is a good plan to include a few investments that aren’t related to real estate investing. While I firmly believe that real estate investing is the way to go for most people there is much money that can be made in other fields and it would be pointless to discuss multiple streams of income without mentioning a few that were unrelated to real estate investing. Retirement plans are a great option and you can now invest in a retirement plan of your own even if you are self-employed. It is definitely worth considering as yet another stream of income, even if it is income that you will need to wait a while to receive. Franchise businesses are often great money makers for those who need more immediate results from their investments efforts, and stocks and bonds are also great long-term investment strategies.

The truth is that there are many things you can do to create even more streams of income to add to your real estate investments. From making money online through affiliate marketing, blogs, and direct sales you can also tackle brick and mortar businesses, though these tend to be just as time-consuming as real estate. The point is that you want to bring in money from different avenues and real estate investing is one of many different routes to explore when deciding on your investment future and establishing those multiple streams of income.

Want to get started and build your own real estate business

With today’s focus on investing in and flipping homes, there is an investment that has become lost in the glamour of high profile home flipping. The purchase of land has always been one of the more secure forms of real estate investment, and if you are looking for a long-term asset land is perfect. There are numerous ways you can go about making a profit off your purchase of land, but most involve proper zoning and selling to the right person or company.

Before you purchase any parcel of land, do some research into the zoning of the area. Find out if it is zoned for residential, commercial or both. Finding something that is zoned for both is a great find because it gives you the widest array of options when selling. Also try to find out if there are any liens or easements on the property, this information will be critical when selling. Now consider the area that the land is in, is it an area that is likely to be developed? How does it match up in terms of location and proximity to amenities existing or proposed?

Also try to find out how the surrounding land has appreciated in the past years. If the area you are looking at has seen a push on development there is a good chance that land will be selling for a premium price as the development continues. To make your land more attractive to buyers, try clearing it yourself (if possible). Having all scrub and stumps removed is an attractive aspect to developers as it will save them time and money in the long run. Prospecting on the value of land can really pay off in the end if done correctly. development companies will pay top dollar for land in the right place so do your homework and good luck!

A real estate broker is a person or entity who serves as an intermediary, or middleman between sellers and buyers of real estate, and is the person who initiates or attempts to find property sellers and buyers

In the US housing setting, a real estate broker and his accompanying sales team, assists sellers in promoting and selling their property, usually negotiating for the highest price or rate possible, and under the best terms. It is standard practice in the United States that a person is required to obtain a license first in order to receive compensation or a commission for services rendered as a licensed real estate broker.

Unlicensed real estate activity is considered illegal, but buyers and sellers who act as principals in the sale or purchase of real estate are not required to be licensed. In some states however, lawyers are allowed to handle real estate sales, and are paid fees and commissions without the need to be licensed as brokers or agents.

There are quite a few buyers and sellers who are comfortable doing the work of marketing their home for sale by themselves, as well carrying the weight of the work on the buyer’s side. Unrepresented buyers or sellers do an equal amount of work as agents or licensed brokers.

An unrepresented seller more than often approaches a listing agent for a property they represent. If somehow the home seller convinces the agent to give back the “buyer’s agent share” to him, it is not as if the listing agent is not going to be picking up the slack for the work the seller does not do or is inexperienced in doing at.

The unrepresented seller is at most, directly offering his/her property to a buyer by negotiating deals directly and haggling over the best possible price and payment method. The good thing however with dealing with direct buyers over brokers or agents is that a home owner would not have to cut profits with established brokers agents, and would not find the need to dole over a substantial amount of commission to the agent.

Should a home or property owner decide to sell his asset on his own and not avail the services of a licensed broker, he/she should be ready to prepare all necessary papers describing the property for advertising, pamphlets, open houses, and others. Advertising a property is often the biggest outside expense in listing a property, and a home seller should readily shoulder the expense for this.

In some aspects, holding an open house to show the property would be a rather inexpensive venue for the home seller to show off his property. By being a contact person, the seller should always be available to answer any questions about the property and to schedule showing appointments to prospective buyers.

It’s one of our biggest investments and some of us are doing it more than once during our life.

Like many things in our life that have changed dramatically, so did our habitation practices. Most of us don’t stay in one house for the full duration of our lives as it used to be for many people in previous generations.

Our modern dynamic life style and economy, calls for flexibility, mobility and frequent changes, People are following their jobs and careers even if it means moving from one side of the nation to the other.

This tendency is in line with our culture of consuming society. We replace everything faster, we treat cloths, cars (some just lease), refrigerators and our dwellings like fashion items with short longevity.

When we decide to buy a house we need to think in terms of sort to medium range periods of time and that should bring us to consider the resale value of our home in the future.

Buying a home with good resale value might take a little longer, and it might take a bit more work on your part, but you’ll love the payback later, when it sells quickly and puts extra money in your bank account.

The first consideration should be your family needs but it’s cleaver to keep an open mind about what might suite future buyers as well.

The most important three factors are: location, location and location… 

Indeed, it’s first thing to consider when looking for a home. So, what makes a good location?

There are some general elements which are obvious like:

– Does the neighborhood have easy and fast access to the schools, shopping centers and country club.

– It’s wise to pick a house that is located relatively elevated above the area, that can provide two advantages: a flow of good air and a nicer view. 

– How many neighbors are adjacent to you and/or across you in proximity, off course the less the better.

– A house located at the end of the street will suffer less noises from the neighbors and their guests. If the street is a dead end it’s even better. A corner house may have more light and air.

– The positioning of the house towards the north if it’s a warm area as opposed to the south in cold areas. In general, a rule of thumb and this one is general and found right to many locations around the world, as strange as it may sound, the northern neighborhoods are usually more desirable than the southern ones exactly as the western ones are more prestigious than the eastern ones.

– The size of the lot, its shape and the square footage of the house itself.

If the majority of buyers in your area are young families with children,

consider a house with a large yard that’s not fronted by a busy street.

– There are many other environmental aspects to consider with respect to

personal preference like a green agricultural area vs. urban area,

quality of schools and other social services and facilities.

In addition to these external considerations there are many important internal elements that can make a house quality higher and buyers are always looking for, such as:

– Closets, lots of closets and with as much additional storage space as possible. 

– Light and bright – Homes with lots of natural lighting are very popular.

– Split bedroom plans, with bedrooms on each end of the home, are increasingly popular with buyers.

– If you live in a scenic area, having a view can help you sell.

– Plenty of bedrooms, baths and Rest rooms.

– Large and convenient kitchen with as many cabinets and cooking space as possible.

– The tendency to work from home calls for a suitable room to be set as a home office.

– Laundry and dryer machines located at the same level as the bad rooms.

– A spacious basement is a plus.

Features to avoid

– One-bath homes sell for significantly less than homes with at least two baths and they take longer to sell.

– Electric baseboard heat and electric ceiling heat are not as desirable as

central heating systems. A fireplace in the living room is a plus.

– Tubs and showers in outdated colors, or scratched from years of improper cleaning, might be hard to change without ripping out doors or walls.

– Popcorn ceilings date a house, you know, those bumpy ceilings that were so popular in the 1970’s.

Your first objective is to buy a home that’s right for you, but do consider its resale value before you make the final decision, especially if you know you’ll move again within three to five years. A careful purchase now will help give you extra funds to move up with the next time you buy a home.

Home Inspections

Depending on the type of financing you choose, there should be either 2 or 3 separate inspections on the home you want to purchase. The first should be your own basic inspection (see the bottom of this page for what to look for), the second should be a professional whole-house inspection by a reputable person. Should you select a government loan (FHA or VA), the third inspection should come at the time of the appraisal, which to some degree amounts to a “mini-inspection.” Do not, however, rely on this appraisal as your only inspection of the property!

We cannot emphasize enough the value and necessity of an extensive home inspection. Many home purchasers, either in the desire to save the $200 to $500 that a good inspection costs, or due to simple ignorance, have spent enormous sums of money repairing items that any good home inspector would have pointed out. Any offer to purchase you make should be contingent upon (subject to) a whole house inspection with a satisfactory report. Do not let anyone not the agent, not your family or friends, and especially not the seller, dissuade you from having the property thoroughly inspected! Not only will you sleep much sounder after you have moved into the house, a professional inspection can give you an escape hatch from a contract on a defective house. If the contract is written contingent on an acceptable inspection, any defects in the home must be either repaired or monetarily compensated for.

If you are not satisfied, you have the option to cancel the contract.

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