Real Estate Blog
Top Commercial Real Estate Due Diligence Mistakes to Avoid
Any purchase in the commercial real estate industry is a huge investment. To the contrary, due diligence in commercial property investment is rarely talked about. Other factors such as raising money and negotiating the deal are mostly given more attention. Whether you’re a commercial real estate professional, tenant, buyer or seller, understanding the importance of due diligence is vital. Conducting due diligence helps you avoid costly mistakes and improve your skills as a real estate investor. Investors who focus on other aspects of the deal and fail to do the essential research most make expensive mistakes at the end. Below are the top due diligence mistakes from a 31-year investor that you should avoid.
The Most Prime Real Estate Goals and Objectives
Goals are the fuel that pushes us and directs us to move forward. Businesses that clearly set and define their goals are 10 times more successful than businesses that don’t. As, an investor one should know the real estate goals and objectives in order to achieve them in the most efficient manner and that could help ones bottom line.
Each real estate objective that you set should be as particular and specific as it could be. It should openly identify each term inside the objective and set up significant actions to pursue it. For instance, if you want an increase in the revenues than your objective should be more than that I want more profits this year. Whereas, it is not necessary that you should maintain a proper checklist about your goals and should cross them when you have accomplished it. Only a proper but strategic and specific roadmap should always be there in your mind. And you should know that what goal is important at what point of time and what exact actions should be taken in order to achieve them.
Benefits of Having a Professional Website As a Real Estate Agent.
Do I need a website as a real estate agent? This a common question in the real estate market and you’re in the right place if you’ve been contemplating on it. At times real estate agents don’t get the credit they merit as marketers. People tend to view them as sales representatives and negotiators of the transaction. However, they are better described as expert marketers assigned to sell expensive products to consumers. This is why real estate agents need to build their online presence by having websites. Every business if not, almost all have a website in 2018. Today people turn to the internet when looking for new homes. If you want to be a relevant and important resource for your clients, it is vital to establish a sort of online real estate. Creating your online presence as a real estate agent with your website is the best marketing strategy. Here are some of the benefits of having a quality website as a real estate agent.
5 Benefits of Velocity Banking– Part 2
Apparently, velocity banking looks like an easy way out from the entire mortgage scenario. But there are certain rules that you need to follow in order for things to make sense.
Over the course of time, the concept of velocity banking has been tried and tested. And it is being used by many people to pay off their mortgages. Let’s look at the pros and cons of velocity banking.
Understanding the Disadvantages of a Contract for Deed!
A contract for deed for a home loan turns out to be beneficial for both the parties i.e. buyers and sellers if it is prepared under smooth and proper conditions.
If the circumstances don’t turn out to be good and are not made very well, then it could bring many difficulties for both the parties in the future. So, before really going for it, both the buyer and seller need to evaluate and see all the limitations and possibilities needed for the contract for deed before finalizing the arrangements which are usually done in coordination with many attorneys.
Real Estate appraisal and Common Environmental Hazards Found in Homes
1. Mold
https://www.wepurchasehomesforcash.com/wp-admin/admin.php?page=disqus#siteConfiguration
Mold is somewhat common when it comes to houses in areas where rainfall every now and then is a common thing. It goes hand in hand to dampness, as most of the times dampness causes mold growth. In homes places where sunlight is rarely shining upon gets mold growth even if there is less dampness. Mold is a fungus; there are thousands of different species of molds. Only a few hundred species are common in residential structures, and only a handful of those are harmful or allergenic for humans.
Appraisers in real estate are not expected to know particularly which type of mold is growing in the house under consideration or whether it is harmful or not. Similarly, they are no expected to take care of the mold itself, rather they just have of identify it and get it reported.
Moreover, one cannot differentiate between a harmful or innocuous mold type just by looking at the color, you will need to be an expert to do that. As an appraiser, when you encounter a mold-like substance, you should note its existence and take photographs. Depending upon the intended use of the appraisal, the client may want to have testing done.
Mold if visible can be taken care of but what if you don’t see any, yet you smell something musty in the dwelling? This makes for a high chance that there is MOLD in the house.
2. Chinese drywall
In the early 2000s, certain types of drywalls were imported from China for their use in the real estate. These drywalls installed in many homes across US by their exoticness and strength, have been identified to contain hazardous materials, including sulfur. Under certain conditions, this drywall will emit sulfur gases, which can cause health problems for building occupants. These gases have also been found to corrode copper and metal surfaces, including appliances, wiring, and air conditioners.
As an appraiser, you might look out for them as they are really easily identified because of the Chinese markings on the back. You must look for a smell like “rotten eggs” is the building to be sure that there is sulfur present in the house.
3. Asbestos
Asbestos was used majorly in the US real estate during 1920s to 1970s. It is a naturally-occurring mineral that consists of thin fibrous crystals. It was widely used as an insulator and in making tiles.
Soon, it was discovered that, asbestos-containing materials (ACMs) were identified of containing cancer causing elements which were considered harmful for human life.
What does this have to do with you, the appraiser? Like other environmental hazards, you are not responsible for testing or identifying asbestos. For example, floor tile that contains asbestos looks just like floor that does not contain asbestos. The same thing can be said for shingle siding; some types contain fiberglass instead of asbestos. However, they cannot be told apart without testing.
4. Lead paint
Do you happen to know someone whose house was built before the 70s? if yes, you need to tell them that the paint they used in their house probably contained lead. Lead is not harmful if in good condition. But when the weather gets too much to handle for the paint and it gets to loosen up by peeling, chipping, cracking, etc. it starts getting dangerous. When you see chipping or peeling paint, can you tell simply by looking at it whether or not it is lead-based? No. It would need to be tested to make a definitive determination.
As an appraiser, you need to identify the paint in the house. You can as the landlord about the date when the house was built or the real estate contractor about the type of paint used. You need to identify the signs of chipping and cracking.
5. Pesticides
Pests can be trouble! They cam be taken care of, once identified, by the company but what if the pesticides they used on the pests left a lasting effect on the house? Pesticides can both be am indoor and an outdoor hazard.
As an appraiser in real estate, you need to make sure that whether the house was ever infested by pests or rodents and whether proper procedures were followed during their removal. While not an “indoor” hazard, pesticide use around your home can impact health. Maintain your yard and garden to naturally deter pests instead of using pesticides when possible; store firewood away from the home to avoid wood-destroying insects; and follow instructions and where appropriate PPE when using pesticides.
So overall, one must be aware of the hazards discoed above which included Mold, Chinese drywall, asbestos, lead paint, and pesticides. These are just a handful of the environmental hazards you might run into when completing an appraisal inspection.
Top Five Real Estate Investing Mistakes To Avoid.
Real estate investors face challenges in the market as they have to make decisions that affect the buyers, sellers and ultimately their business. Most TV shows and internet success stories make people to believe that real estate investing is a walk in the park. While it’s true that many investors earn enticing returns from their real estate investments, it may not be so for you if you don’t have the required commitment. There is some real estate investing mistakes that can force you to exit the real estate industry earlier than you thought. As an investor, you should have the right investment strategy and understand the full scope of risks and responsibilities in the real estate market. To maximize your investment profits without suffering common expensive experiences, you should watch out for some of these real estate investing mistakes.
Books to give you real estate investing education
There are no dubious thoughts on the fact that the real estate industry is one of the most growing industries of the current time. Whether you are looking to diversify your portfolio, planning to expand your horizons of investment, expanding your business ventures or whatever is the motive behind your involvement in real estate, when you get into the market you will realize that the market is very competitive and running an extremely fast pace. However, beginning real estate investing does not work with a magic wand, you need a thorough real estate investing education before getting your feet strong in the market.
Due Diligence Checklist When Buying a Multifamily Property
When purchasing a multifamily property, the due diligence process is important to do for you to protect yourself and understand exactly what you’re buying. Many investors ignore the essence of due diligence and end up acquiring a multifamily building with much more work than they initially thought. When you get a property under contract after the seller accepts your offer, you don’t put your money down right away. You need to do a thorough due diligence on the property to make sure everything you’ve understood about the property up to the time of putting it under contract is accurate. It is one way to avoid future surprises that you could not before your purchase. There are items you should obtain or inspect further in your due diligence process.
Real Estate investing explained
Investments are tricky. They can make or break a person in any given time-interval. Similar is the thing with real estate investing. Through this medium of investment, one can gain many financial benefits. But let us look at the basics of real estate investing first: