Category Archives: organizing

buying, commitment, Communication, education, Inspiration, organizing, Team work

Don’t lose an offer on your house you have listed

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brokenYou made your property available to the public, the sign in the yard, posted on the internet for any armchair buyer to see and there is now a purchaser ready willing and able.

Each proposal has an expiration time and date, and now time is of the essence.

At this time you have an active and alive proposal and keeping any proposal alive and active means you and your agent have to respond in time by or before the expiration date.  When more time is needed to respond you and your agent should communicate this to the other agent before the expiration, in writing, dated and singed.

When an acceptance, or countered or a request for extension does not come in before the given expiration date and time, the proposal is considered expired and no longer active.

Meaning
you have to start new.

Sometimes there comes the time that you might not be able to sign paperwork in person and on time. In this case there are options available you.

Electronic signature is one of them and your agent can set this up for you. There is also the limited authorization you can give to your agent or another authorized person to sign the documents in your behalf.

Some states also acknowledge email communications between the seller and agent as proof. You still will have to acknowledge the paperwork with a signature later, before the closing and a copy of the singed paperwork should go to the cooperating buyer’s agent. With email communications you should have an email signature on the bottom of your email that includes your full name. Sending it from “XYZ smartphone” via “ABC cell phone company” might not be enough proof it was directed and authorized by you.

The limited authorization or the email communication needs to be forwarded with the acceptance, counter or a request for extension to the cooperating agent. Without that proof the transaction is considered expired and no longer active let’s don’t let this happen to you.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work

No or bad credit buyers

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piggy bankWith the wave of buyers coming back into the market that have had a foreclosure, short sale, or bankruptcy it will make it for an interesting year. The adventure of mortgage origination and underwriting is getting more interesting with borrowers who paid off all their bills, tossed their credit cards and have been working within their personal budget for about 2 years and possible with that having a 0 credit rating.

Many main stream loan offers will tell this type of buyer that they need to establish another credit rating by opening up several credit cards and start using them.

Not really. Even now with the new mortgage regulations you can get a mortgage with 0 a credit rating. Many mortgage companies are just not willing to work with a 0 credit rating buyer because they have to run the loan through manual mortgage underwriting. Personally compare this to an individual who is self-employed and has no W-2 income.

I recommend to all my clients who are looking to buy and need financing to help them buy to get pre-qualified. When it comes to pre-qualifying a 0 credit buyer it can take a little longer because it has to be done manually.

To find a lender who is willing to work with a buyer who has no credit score is a bit tricky but there out there. Before you contact any lender to help you and you happen to be one of the buyers who don’t have a credit score be prepared to have at a minimum of a 20% down payment for your dream home.

Also find other forms of alternative credits for your lender like rent payment, or utility payment. When you had medical bills, and they are paid in full, have the creditors write a letter on their letter head stating the bills are paid in full. Your cell phone bill is one of them that will work as well. Make sure you also have 4 current consecutive paystubs available as well and 2 years of tax returns. You will need at a minimum of 4 alternative forms of credit.

Don’t have lenders tell you that you must have a credit score to buy a home. You don’t. You might need a bigger down payment and alternative forms of credit and a lender who is willing to truly work with you. When they are not willing to work with non-existing credit score, and they tell you that you have to open an in-store credit card of apply for a credit card to “establish” credit it is time to find another lender
.

Last but not the least; this is not to be considered legal or financial advice and you still should consult your legal and financial advisor before making any legal or financial decision.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Things to consider when buying your Commercial building.

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plansThere comes a time that a business is growing and needs more space to accomplish that goal. This could mean that either having to rent or buying bigger space.

Let’s assume you have decided to buy your own building rather to rent another space for several years and you were able to secure financing for your building.

Before you even making and offer there are some things you should think about:

  • Location of the current building
  • Current zoning of the building
  • Is the building ADA compliant?
  • Does the building comply with current building codes and zoning regulations for your type of business?

Location:

Is the location suitable for your type of business? When you would like to open a restaurant you should be close to an area that gives you plenty of traffic. Compare too when you are looking to open a trucking company you would need to be closer to an interstate or possible have access to train traffic.

Current zoning of the building:

Is the zoning suitable to your business or would you have to go in front of the planning and zoning board to ask for a zoning variance?

Is the building ADA compliant?

When the building is not ADA compliant you might have to spend extra money to bring the building up to compliance.

Does the building comply with current building codes?

When the usage of the building changes you need to bring the building up to building code compliance and pending how long ago this was done by the past owner. This could take a good sting of money and time before you can move your business into the building.

This is now a true story and hopefully will point out to make sure to cross your T’s and dot your I’s prior to buying a building and moving your business into a building you just bought.

One business owner I know made several costly mistakes as she bought her building to run her business in. The location of the building was a great location but the building she bought was not zoned for her type of business. She moved her business into the new building without getting a zoning variance from the City.

Many months later after she opened for business, the local building inspector came to her and gave her a seize and desist notice, closed her doors and asked her to bring her building up to compliance. At the same time the inspector cited her also for not having her building in ADA compliance and up to the current building code.

She fought the order and she did lose the appeals. She ended up losing her business and she needed to sell the building she recently bought. I have not spoken to her but I only can imagine that she also had attorney’s fees, fines and penalties due to her buildings lack of compliance.

 

There are other things you should be aware off when buying a building. Being on the planning and zoning board for my city the once I have listed above are ingrained into me and very close to my heart. To be certain all your T’s are crossed and I’s are dotted make sure you hire the proper professionals to help you achieve your goal.

commitment, Communication, education, organizing, planning, Team work, tips

Selling? Have your documents ready before you list the property.

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paperworkYou have decided to sell your property and there are a few things you should already prepare ahead of the time before calling a Real Estate Professional and prior to signing a listing agreement.

Even when your listing agent does not ask for the documents, have them ready and just hand them to the agent at the time you sign the contract. Sooner or later you will get the midnight call from the agent asking for the documents because they forgot to ask you for them at the time of the listing signing and you did not have them ready to go.

Some of the documents a buyer’s agent might ask for before or after a showing are and many times before making an offer:

  1. Homeowners association documents and costs
  2. All executed lease agreements (when property is a rental). Just black out the tenants information like name, Social security number, phone number.
  3. When the property is an investment property also pull the actual expensed and the numbers for the GOI
  4. Average utility information for an entire year
  5. When you have an odd shaped property or a neighbor’s fence that might be close you your home or lot line, have a current survey ready that shows where the true lot lines are.
  6. Pest inspection documentation

Some of the documentation might not apply to you, just pull the once that do and it will save you from making the add dash to the finish line trying to find them.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Landlords, when you don’t address it in the lease agreement it might keeps you wide open

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leagalWhen investing in real estate investors may consider holding properties as rentals for another source of income rather than flipping. Dealing with tenants is a whole other ball game and does need a new skill set and paperwork.

Sure we all are aware that we should run a background and credit check on the tenants, and we do know that we have to have a written, dated and singed lease agreement with them. What we put into the lease agreement is also very important and what we don’t put into the agreement is what will kick us in the chin.

There are many places out there where you can buy pre-written lease agreements. You only have to fill in the blanks and the agreements supposed to have been written for your state specifically or some of them even supposed to cover any State in this Union.

Some investors might take other investors (who already have rental units) lease agreement and just run with it, thinking it should be fine.

How do you know that is agreement is the right one for you and your State? Just because it says so does not mean it is.

I have seen so many lease agreements that left the investor wide open for possible legal issues or the tenants had more rights but less responsibility than the landlord it is not even funny.

To make sure that your lease agreement has you and your property covered is to consult a real estate attorney. Just grab your current lease and let the attorney work it over for you. You maybe be surprised what you are missing and did not cover
..

commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Things to consider when hiring a property management company

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microphoneSooner or later as a Real Estate investor we might have to make the decision to hire a Real Estate Management company to manage our properties we own and hold.

As a landlord we never think twice about interviewing and running a background check on the tenants before we sign a lease with them but how thoroughly are we checking on the Management companies we are hiring to manage our properties.

Sure the first deciding factor might be a referral from fellow Real Estate investors but we still have to do our own due diligence before we hire a management company.  When we own properties that have 10 or more units a single family property manager might not be the right fit for us or when we need a property manager for 40+ properties a manger who managed only 10 or 20 might not be able to handle the extra work load.

We should find out about their current education and ask about their real estate license. It is very simple to check with every state licensing agency to find out if the Manager we would like to hire is a real state professional in good standing. With that we can find out very quickly how long they have been in business.

Great way to find out about property managers knowledge is to ask them about the landlord and tenant law and about local codes that affect rental properties of any type. We also should find out from them how many tenants they have evicted and how they set and or adjust the rents. This will show us if they have good screening processes in place and if they keep up with the current rental market.

Magnifying Glass and U.S. Fifty Dollar BillOther questions we should ask the property manager are about the handling and storing of the income, tenants security deposits, the handling for repair issues that surly will comes up and what their fee structure is. It might be better for us as owner when the fee is based on rents collected. With that we don’t have to pay for vacancies and the manager has a reason to keep the units occupied. We also should find out if the property management company charges any additional fees, like an eviction fee.

When it comes to the repairs we should find out from the real estate management company if we need to give them money upfront for repairs, if they call us for repair requests, how they account for the repair money spend. How long is the responds time for repair requests? Do they have contractors on call for repairs? Do they get repair estimates or do they rely on their current contractors to do the job?

We should ask about property inspections? Do they do them and how often.

One thing I personally look at as well is the type of lease agreement they use with the tenant they are handling. I have seen some very ugly lease agreements that could hurt us as investors and could get us in some possible legal trouble.

Is this list complete
.I don’t think it ever will be but it should give you a good start
.

commitment, Communication, education, Inspiration, organizing, tips

Living in a house comes with responsibilities

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House and Keys in Female HandsOwning or renting a single family home is great. Yes in most cases you have next door neighbors but there not a floor above you or right on the other side of your living room wall but with living in a single family home you have as the owner and possible as the tenant responsibilities.

All municipalities have ordinances that govern how the municipality runs and who is responsible for what.  During the growing season for instance is indicates and governs that the grass is cut in the area and it is not thigh high. When it is icy and snowy outside it spells out who is responsible for cleaning the sidewalks in front of the house from ice and snow.

The ordinances are not only for business owners they are for everybody who lives or works in the municipality. Many homeowners or even tenants don’t realize that they are responsible for clearing the public sidewalk that is in front of the home they own or rent. Many tenants might be getting caught off guard when they all of a sudden receive a notice and maybe fine when they did not clear the sidewalk in front of their rental unit thinking it is the responsibility of the landlord.

In many cases the landlord has written in their lease agreement that it is the tenant’s responsibility to obey by local codes and ordinances and that does include cutting the grass during the growing season and having the sidewalks cleared of ice and snow when it is icy and snowy outside.

When you are not familiar with your local ordinance you can call your local mayors or Town Manager office to find out more.  All of them are more than willing to answer any question you might have.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Are you ready for the nextgen home buyer?

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three handprintsNot sure if many of us have paid attention but many of the nextgen home buyers have grown up with a huge sense of neighborhood, personal and community balance. They are not at this time in the hustle and bustle of work and life. They are not in the need to look for the next best deal. Some might not finishing high school or college at this time or when they do they are looking to make a difference in their world.

When they are ready to buy most of them are looking for a home and neighborhood that is more environmentally friendly and inclusive. They rather take public transportation, the bike or walk to their destination and when they do own a car most of them park it at home and only used it when they have to.

Looking at our current homes that we own and we can find that 85% to 90% of them might not be as energy efficient as they could be overlooked by the next-gen buyer.

The next-gen buyers in many cases have already adopted a greener and environmentally friendly lifestyle and that is what they are also looking for in a home. Sure it is not cost efficient and feasible to do a total home renovation all at once in many cases to make an older home totally environmentally and energy efficient. Things like that can be accomplished on a small scale, though many little steps.

When you are replacing windows, you night look at more energy efficient window. When the air conditioner or heater needs replacing, you might consider a much more energy efficient unit. Keep in mind, when you are still in the home you, yourself might see a heating and cooling cost savings already.

commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Moving with your pets

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HPIM0489Moving is already stressful enough on everybody. We can verbally voice our distress and dislike now our pets have ways of voicing their opinion on how things are going and sometimes is destructive.

To make a move less stressful to any pet here are a few tips:

  1. Before and during the move try to keep a normal routine for your pet as possible; like feeding at the same time, going out and playtime at the same time and keep up the normal bedtime routine as well.
  2. Get with your vet and make sure that all of the vaccinations are up to date and you have written proof as such. When you already know your pet does not travel very well, ask your vet about this. In some cases the vet can prescribe something for the pet to make it easier for them to travel.
  3. When you packing for the move, make sure you keep some of your pet’s items out of the moving truck. Pack their water and food bowl, medications, bedding, food and overnight crate separately. Keep it with you in your vehicle. Have enough food for your pet that you have enough time to either buy more or change your pet over to a new type of food when their current food is not available in the new home town. Be prepared to move your pet personally. A pet will do better when they move with their owner to the same time, together. Moving companies will not move your pet for you.
  4. When you are driving with your pet make sure you keep your pet safe in the vehicle. When you know your pet will not do well when traveling you might consider not feeding the pet before leaving. Make sure you keep your pet confined in a travel crate or maybe buckled up for safe travel. Make frequent pit stops for everybody to stretch their legs, relieve their bladder and have a quick drink.
  5. When the move has to be made by plane, call the airline to fin out what their rules, regulations and restrictions are for flying with pets.
  6. Sometimes during the move a pet can get lost or possible stolen. You might consider micro chipping our pet as proof of ownership later. Be sure your pet’s identification tags are securely attached to a collar or leg band. The ID tags should include your pet’s name, your name, address and phone number, destination address, phone number and their rabies tag. You also can get a small GPS locator that attaches to the collar to be able to track your pet right in time. Take color pictures of your pet with a written description of its size, height, weight, colorings and distinguishing marks.

When you are in the new home, give your pet time to acclimate to the new area and surroundings.

buying, commitment, Communication, education, Inspiration, organizing, planning, Team work, tips

Tips on how to choose your loan originator/officer/banker

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lockNot very many of us can pay all cash to purchase our home. Most of us will have to apply for a mortgage to buy our dream home. The mortgage lending industry is a very competitive field even more so with all the recent mortgage rule changes. The bottom line is that mortgage loan officers are still sales people and their main job is to convince you as the consumer to apply with them for a mortgage.

Never be afraid to walk away from a transaction you are not comfortable with or you dread working with the loan officer.

I have been working as a Real Estate Broker now for over 15+ years and after the worst experience with a recent mortgage transaction due to the mortgage company, here are some Ideas to get you started;

  • Don’t take the first person that comes in your door.
  • Ask someone close to you that has recently closed on a mortgage and find out if they could recommend their lender they have been working with.
  • Speak with your financial adviser, accountant, attorney or your REALTOR to help you with a short list of lender referrals.  These people deal with mortgage lenders on a regular basis and can help you filter through the massive amount of information.
  • Interview several loan originators and ask them about their experience, time in business, companies they worked for and how long they worked for each company.
  • Ask the loan originator for up to 5 referrals to call.
  • Call the referrals the mortgage originator gave you !!!

You also can search the internet.

Keep in mind advertising is shiny and you need to pull the curtain back to find the information that is important to a mortgage application like:

  • fees,
  • lock-in periods
  • points and
  • qualification requirements

Everybody you speak with will sound like they have the best deal in town. Make sure you ask and receive the Good Faith Estimates (GFE) and Truth-In-Lending (TIL) statements. This way you have everything in black and white and in writing.

No matter who you work with, your mortgage loan will go through the same process. It will be originated, processed, approved and closed by individuals who work for institutions/companies who use software and other platforms that allow them to do their job.

In many states the loan officer now has to be licensed. You as a consumer have every right to check the person or company to make sure they are truly licensed in your state to do business through the Nationwide Mortgage Licensing System & Registry or Nationwide Multistate Licensing System

Last but not the least it is also important to know the difference between mortgage qualification and mortgage approval.