Selling your property is not always easy

By MARY AMOROSO SPECIAL TO THE RECORD

Sari McGovern's parents opened a preschool on the first floor of their Fair Lawn home in 1985. Twelve years ago, Sari and her architect husband Sean bought the home and the school and continued running The Kiddie Garden, a state-licensed preschool with a capacity of 30 children.

Now, Sari wants to change careers and become a children's book author, and the McGovern family wants to relocate to the Manahawkin area to be closer to Sari's mother-in-law.

So the three-story, 3,900-square foot home/business is on the market for $875,000.

"We are grandfathered to be here, and it's an easy turnkey operation," Sari McGovern said. "My [preschool] license is good until June of 2009. A new owner could even come in and take five or six kids to begin with and build up. This makes for a unique opportunity to have a large preschool below a live-at-home qualified educator."

But what makes home/office combinations unique can also make them harder to sell when the time comes. So think twice before you make a major investment to redo your basement, your first floor or your garage as your new base of business.

First, most municipal zoning regulations sharply limit the kind and amount of business you can do at home.

Second, specialized and costly home business upgrades may not be a help -- and may even be a hindrance -- when it comes time to sell your home.

McGovern, for example, just recently put a $4,000 synthetic grass surface on the preschool's outdoor playground. It's not the kind of upgrade that will pay for itself upon resale, if the home reverts to just a residence.

Jeffrey Shapiro of Coldwell Banker is marketing a $999,000, five-bedroom colonial in Englewood with an attached six-room handicapped-accessible medical office and off-street parking for patients. He said it's not an easy sell.

"I initially went with the headline that this was a medical office or professional office, and home," Shapiro said. "But I switched gears and now I'm promoting it as a grand old home with a medical office attached."

He's done a lot of specialized marketing, printing up fliers on the house and office, and dropping them off in doctors' lounges in local and New York City hospitals.

But the lack of interest in the home as a home-based business prospect makes him think medical practitioners nowadays want to maintain their professional offices away from home.

Barry Colyer of Re/Max in Oakland has sold one home with an attached medical office a number of times.

"I sold a house on Ramapo Valley Road with a chiropractor's office on the lower level," he said. "The first time it sold to a doctor. The second time it just sold as a home office. The third time, the new owners tore it all out."

Top 7 Tips When Buying a HUD Home

Top 7 Tips When Buying a HUD Home

by Eric Bramlett

HUD homes offer many buyers the chance to purchase their home with built in equity, and allows investors some fantastic deals, as well.

When the foreclosure rate is particularly high, as it is in 2007, HUD's inventory swells, and there are deals to be made. HUD deals are very different from traditional purchases, however, so make sure and follow sound advice before purchasing your first HUD home. Follow these tips, and you will be on your way.

1. All HUD Homes Aren't Great Deals

Many buyers mistakenly assume that, if the US Department of HUD is selling, it must be a great deal. This couldn't be further from the truth! Many Realtors relentlessly market HUD homes to drum up business, and this can create a glut of HUD buyers. When the HUD inventory is particularly low, oftentimes buyers will bid the property up to, or above the fair market value. Look at every HUD deal on its own merit, and make your decision based on that.

2. Understand the Bidding Process

HUD purchases are very different than conventional deals because they follow a "blind" bidding process. The bidding date is released by HUD, and each buyer submits their best offer-without the knowledge of any other bids. As long as HUD finds the highest offer acceptable, that offer is accepted. HUD retains the right to refuse all offers.

3. Know the Difference Between "Owner-Occupant" & "Investor"

One of HUD's goals is to increase the number of US citizens who own homes. Because of this, they give preferential treatment to owner-occupants over investors. Owner-occupants have the first 10 days to bid on any home before it is released to investors. A buyer may bid as an owner-occupant once every two years. Make sure and bid honestly-otherwise it is illegal, and can result in hefty fines.

4. Anticipate Repairs

You are allowed the opportunity a third party inspection before closing, but buyers cannot negotiate repairs based on the results. Backing out of HUD deals & retaining your earnest money is trickier than conventional purchases, too, so you may run the risk of losing your earnest money. Make sure and go through the home thoroughly before bidding on it.

5. Continuously Monitor the Inventory

As foreclosure rates rise and fall, so does HUD's inventory. The laws of supply & demand definitely apply here-when the inventory is high, your chances of getting a great deal are higher than when they are low. Follow the asking price & sales price of HUD homes-if they are selling far over asking, it might not be the time to buy.

6. Make Sure Your Realtor & Lender Know the Process

After your bid is accepted, the paperwork begins! In Texas , HUD requires that you submit original signed (in blue ink) paperwork to the HUD agent's office within 48 hours of the bid's acceptance. If the paperwork is incorrect, you are allowed one revision-which must be received within 48 hours. They are just as strict with a lender's closing documents-so make sure both your Realtor & lender are very familiar with the HUD process. Oftentimes, the HUD agent's office will be located in a different city-and often, the escrow agent will be located in yet another city-this can put a very interesting twist on the process, and time constraints.

7. Act Quickly & Decisively

Because HUD places very strict time constraints on bidding, and due to the bidding process, you must act quickly & decisively. You will typically have 1-2 weeks from the date HUD places the property on the market until the bidding period begins-and more often than not, the property will be purchased on the first day of bidding. Make sure & exercise your due diligence, and make your decision quickly-you often won't get a second chance.

HUD homes can be fantastic opportunities for a buyer or investor to get a great deal on a property. However, because the purchase process is quite different, make sure & do your research before attempting to find your first buy. Follow these tips, & you will be on your way to a successful transaction!
Disclaimer: The information above is based on Eric's experiences with HUD in Texas from 2004-2007. The process continually changes, so make sure & get the most up-to-date information for your area before bidding.

Real Estate Investing

 

The Importance of Diversifying your Portfolio:
 "Over time, research has shown that investors who have diversified portfolios usually see more consistent and stable returns on their investments than those who just invest in one thing. All successful investors build portfolios that are widely diversified, and you should too!

* Getting your feet wet-Beginning Investing in Real Estate!

* Get a Rental house or Duplex  

* Buy a Flip house and fix it up and sell it, The way I like to do it is I keep it as a Rental for a year and then sell it and pay lower capital gains taxes.

*Buy a Commercial Building with a Net, Net, Net, lease where they pay the tax and ins, upkeep

The main thing is manage it yourself, don't hire a firm to property manage othwise you lose all the great
Tax advantages to Real Estate Investing!

Real estate is the key ingredient to an international lifestyle

As you work toward a "perpetual traveler" lifestyle, you need a base in the countries you plan to spend the most time.

You don't have to buy a half dozen homes around the world to enjoy the perpetual traveler's life…and you don't have to do it all at once. To do this, you have to choose locations that have rental potential…and preferably where mortgages are available. You can also partner with friends.

Say you want your first property in the southern hemisphere. In Argentina, you'll pay cash, but you can still find one- and two-bedroom apartments in Buenos Aires for less than $100,000 that will rent out well. In New Zealand, you can finance your first buy…and rent it out: long-term if you buy a house in a non-tourist area; short-term in a tourist area. You can buy a studio or one-bedroom apartment in Auckland for less than $100,000 (U.S.).

In Central America, you can still find lots for less than $100,000. That won't put you on the beach in most cases, but it will get you into an oceanfront community. You'll probably have to pay cash, but if you buy in a development that doesn't require you to build within a set time frame, you can sit on the lot until you are ready to build for your personal use.

In Western Europe, you can obtain financing…and in increasingly more countries in Eastern Europe, too. Finding a property for less than $100,000 is the challenge. You can buy properties in Croatia for less than 100,000 euro ($136,000) if you want to be near the coast. If you want to be near the ski slopes, you can buy in Romania or Bulgaria for less than 100,000 euro. In either location, you can rent out the property short-term when you aren't using it.

If you insist on being in Spain, Portugal, France, or Italy, you'll spend more, but even in these countries you can find properties for less than you think--if you look beyond the popular destinations and move away from the ocean. You'll buy something livable for 100,000 euro, but it won't be in a prime location.

For every property type considered here, I'm not talking about a 3,000-square-foot villa on the beach. You will be getting small apartments or houses. But how much space do you need if you are traveling the world? Plus, two- and one-bedroom units make better short-term rentals.

So, for the price of that beach condo in Miami, you can enjoy an international life, travel the world…and avoid the hurricanes.

Popular Real Estate Trend

Did you know that one of the fastest growing trends in real
estate is house sitting?  House sitting is when a homeowner
invites someone into their home to watch over it while they are
gone.  House sitting can be beneficial to both the homeowner and the house sitter.

For the home owner, a house sitter is an excellent choice if
you feel uneasy about leaving your property on occupied over
an extended period of time.  A house sitter is usually a more
mature person who has had experience with taking care of
homes, maintaining property and caring for pets.

For the house sitter, there are many benefits to taking care of someone's house.
Saving on rent or on a mortgage may be the biggest benefit.  Some house sitting
jobs can extend for quite a time period and if a house sitter does not need to
spend rent during this time period, they can save quite a bit of money.

Also, a variety of people can benefit by being house sitters.
Retirees are finding house sitting to be a very fulfilling as they are
no longer obligated to stay in one location anymore, but now can be footloose
and fancy free!  House sitting allows them to experience different parts of the country
or even the world without any financial obligations.

Families can even enjoy the benefits of house sitting by being able to take a
vacation in another part of the country for a week or longer.

Also, people such as freelance photographers or writers who need to do research
or travel in other parts of the country can now do this without have to rely on hotels.
They can experience the culture, life and history in a particular area firsthand.

If you are intrigued by this latest trend and feel that house sitting might be right up your
alley, I would encourage you to check out HouseCarers.com  It's a worldwide directory
of house sitters.  House sitters can register for house sitting assignments and homeowners
can locate responsible people to care for their homes.

Tammy

Real Estate Investing

Real estate investing is one of the best ways available to make money, but unfortunately many people think that getting started requires having a great deal of money. Believe it or not, almost anyone who has the ingenuity and determination needed can be successful as a real estate investor. There is great money to be made out in the real estate investment market and you do not need millions of dollars to get started.

Many people are very leery about getting info Real Estate because they have heard of some of the problems other Realtors have had.  Such as with renters not paying their rent. But in my opinion you have to take chances to succeed in life. There is bad points and good with everything we do. 

Real estate only can appreciate in value, and be a very good source of monthly income. If you buy a fixer -upper you can spend free time fixing it up increasing the value, and it is great tax break benefit.  So why aren't more people taking advantage of this money making business? Most of the time the answer is a lack of knowledge in how to get started. 

That\'s how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.

I USED to be Realtor- I got out of the business!

I got burned out being in a business where most people are out to shuck and jive and go back on their word. I got burned out schlepping people around to look at properties only to find out that they are a Realtor, or they have a relative who is a Realtor, and this person is the one who will write up the offer thanks to my hard work and my dollars burned up in the gas tank.

Now, it's a buyer's market and sellers are freaking out about their homes not selling. Truth is:
YOU DON'T NEED A REAL ESTATE AGENT TO SELL YOUR HOME!!!

The For Sale By Owner Manual includes EVERYTHING YOU NEED to sell your home/property without an agent!! Specifically, the manual includes information on:

How real estate agents could actually HURT YOU!!

The REAL PROBLEMS with the commission system.

EXACTLY what real estate agents will tell you!

How to efficiently prepare your house for sale.

How to properly price your home for sale.

How to pump real estate agents for free information.

FREE and CHEAP marketing tactics you can use!

Where you can list your properties ONLINE for FREE!

How to find and use the professionals you really need.

How to deal with buyers and get them to BUY!!

Special section on negotiating with buyers.

How to quickly and efficiently CLOSE the sale.

CLICK HERE for more info!!