If you say going green, you are referring to the state of being more environmentally inclined with all aspects of your life. In terms of your home, going green is a good move when it comes to both home construction and home decorations. If you own rental properties, there are certain factors to them that determine their prices.
For instance, the number of years from date of construction, square footage, height or elevation, and site all determine the price of your rental property. However, it does not just end there. Now, their green attributes will have some bearing on the price of your rental properties as well. The green attributes of your rental properties also determine how well your property sells. Thus, if you own rental properties, it is best that you capitalize on their green attributes for you to better stand out from your other competitors. Here are some ways for you to prove that you have a green rental property.
LEED certification: Assurance is crucial in dealing with rental properties. If you want to convince your prospects that your property is green, you have to be able to secure a LEED certification and be able to present your prospects this. In the present, having this certification mean that you are well known for ensuring sustainability development. It puts a stamp on your building with a certain rating that declares its being efficient, healthy, and cost-saving. Based on current statistics, green rental properties have 9.1% more rental premium in comparison to other rental properties that do not possess LEED certification.
Energy star compliance: Another way to tell your prospects that you have a green rental property is to present to them energy star compliance. Being energy star compliant means that your property is an energy efficient one as issued by the EPA or Environmental Protection Agency. While getting the energy compliance is more common among appliances with energy-saving features, green buildings are also being issued with this symbol to give some recognition to the efforts of the owners and developers in ensuring that the property is a contributor to increasing energy efficiency and lessening carbon footprints.
Who should you market?
For green rental properties, the millennials are your target market. According to recent articles, millennials are the ones dominating the single-family rental market. They have this semi-nomadic kind of lifestyle that makes them very flexible and mobile to face new challenges to their independence, careers, and freedom. With green rental properties, millennials are given the edge of sustainability while taking advantage of their benefits without having to give up the freedom that they have always wanted.
Where should you market?
The millennials are very much attached to their technology. You can see this in almost every aspect of their lives. Clearly, you cannot see any millennial roaming around your vicinity without having some gadgets with them. It does not matter if they are at home, at the office, at food hubs, at malls, and even in the caves, mountains, forests, and beaches, millennials will always carry their smartphones, laptops, tablets, or wearable technology pieces with them.
So, if you want to entice this particular market with your green rental properties, get in touch with them using social media platforms such as Facebook, Twitter, Instagram, and many more. And surely, they will hear you out.
Finally, you are ready to buy a home or find another home that might be more suitable for your particular needs. In order for you not to experience a lot of hassle and stress in buying a home, you have to make sure to do the necessary preparations.
This sort of preparation is also not the only thing that you can do before you buy a home, you also do certain preparations before you go on a house hunt. A house hunt is actually a must if you have plans of buying a new home or a home that you can relocate so that you can further compare certain features from one house to another.
Now before you go on a house hunt, here are some important financial aspects that you must make sure to check.
Credit report: When planning to buy a house, the first step that you must take in association with your finances always involves you reviewing your credit report. Examine it thoroughly and assess if omissions have been made as well as errors. If there are errors, make sure to take a step-by-step approach in fixing them. You should expect to use a whole lot of your time while doing this. Make sure to secure a free copy of your credit report from major credit reporting agencies. If you cannot do this task yourself, you can always hire a company that will help you out in checking if your credit report is kept up to date and contains the right information.
Stay away from additional credit: If you are serious in buying a house, before you go house hunting, be sure that 6 months prior to availing a house, you must stay away from applying for additional credit. Do not get easily tempted by stores that tell you they offer you discounts when you use your credit card to purchase from them. If you miss out paying for another of your credit, this might have some negative impact on your current credit report.
Disciplined savings: As a potential home buyer, you will have to save a huge amount of your money because by the time you will buy a house, you will have to pay for down payment as well as other additional fees and charges. Even if you will not have to pay for the upfront cost, lending institutions will still consider looking into your account to assess if you are worth lending some money to and if you can pay them off.
Prepare yourself for three essential reserves: It is never enough to buy a house with its only current value. You also have to consider three essential reserves that you must be paying for once you own a house. These three include your deposit (usually 20%), your monthly reserves (upkeep, repairs, utilities, etc.), and your contingencies (alteration, renovation, and unanticipated expenses).
Recognize your limitations: Do not turn yourself into a person who is only rich in terms of your house and poor in terms of your cash flow. Be honest in recognizing your personal limitations as well as your comfort zone. Always remember that buying a house is not all about your ego. It is best that you buy a home that you do not just enjoy but truly afford as well.
There are a number of ways for a person to invest in the real estate market. However, if you prefer to invest in this market with no credit, no money, or no financial risk, then you must go with wholesaling of real estate properties. A lot of real estate investors have found success in this particular venture. However, if you are still starting in real estate investing, you might find wholesaling challenging.
Nonetheless, the idea of investing in real estate with no barriers makes real estate wholesaling a very enticing investment option. As long as you can take advantage of the good side of wholesaling, there is no doubt that you can attain some success. This can be said since wholesaling is really all about being wise in finding deals. If you can hone your skills in finding good deals, your profit potential will surely be unlimited.
After finding a good deal, you proceed in selling the real estate property to make some profit. Here are some ideas on how you can structure your wholesale properties like the pros.
Contract assignment: Though this is the easiest among the other options, you need to understand that this also carries some risk if the method is not done right. This method is also restrictive since bank owned properties are off limits for this particular wholesaling method. Even so, this is a good method of wholesaling when you are the one that directly deals the seller.
Basically, you start by getting a house that is under contract and then have your rights assigned in the contract to another buyer for a particular fee. This new buyer will be getting the responsibilities and rights stipulated in the contract and will be closing the deal in your place. It is always the better option to be getting your fee upfront; however, the most common practice for this method is only getting your fee after the buyer has bought the house. When assigning contracts, make sure to take into account the certain things.
To being, you must always disclose to your seller that you are assigning the agreement to another buyer for a particular fee. It will be better to put this into writing in the form of a contract. Sellers will not have any problems with this set-up as long as you are being transparent that you are the type of investor who buys houses for money before you go about doing some negotiations.
Double close: For this particular wholesaling method, you will be buying the house and then be reselling it. There are a number of ways that this can be done but the most common way is to buy and sell a house on the same day. Generally, you have to get some financing help so that you can better close deals with any seller.
This method is unfortunately the most expensive since you will be paying for two sets of closing costs. Nonetheless, a lot of real estate investors prefer this method since they are not required to disclose to the seller their intentions of reselling the house. The investor has every right to keep the deals with the seller and those with the buyer private. This is a wholesaling method that allows better protection of profit. Of course, the information will then become public knowledge; however, this can only be done after the contract or deal is closed.
If you are a home builder, for sure, you have considered hiring the services of a general contractor or not when it comes to your projects. The most obvious reason to not hiring one is saving more of your money. But to save this amount of money, what does it entail on your part?
Before you go about figuring out if you should be hiring the services of a general contractor or not, you must first know what they do. A general contractor is basically a person who will be overseeing your construction project. They are tasked to also manage your subcontractors and help you finish your project in no time. Usually, they do not have the skills and expertise to carry out particular tasks such as electrical and plumbing. However, they are well aware of the basics of any construction project and are very well organized.
The pros of being your own general contractor
In most places, you can act as your own general contractor if the project is just small or if you are just managing and getting the services of licensed subcontractors. The value of a general contractor to your project must be paid by you. By not hiring one, you are able to save some of your money. Paying less for the remodeling or construction of a house can be more profitable to you.
Aside from saving most of your money, when you act as your own general contractor, you will gain more experience in the field. If you are a real estate investor, you should know that having some basic understanding of how you can remodel a house is a great advantage to you. In the near future, if you will do bigger projects, this experience can help you and also, you can better pinpoint bad contractors and steer clear from them.
And last, if you do not hire a general contractor, you can have more control over your home construction project. Also, this lets you avoid hiring a bad general contractor. Terminating a general contractor, no matter how bad they might be, can be very challenging. They can still have their crews working while still owing their subcontractors some money. When you are the one directly dealing with your subcontractors, the job will be more smooth sailing and less of a hassle.
The pros of hiring a general contractor
There is nothing wrong with being your own general contractor; however, if you are going to become a real estate investor, it would be best if you hire one. It can be difficult juggling investing in real estate and working in it. So, to better concentrate on your real estate investment business, it would be best to hire someone to carry out the responsibilities of being a general contractor instead. Aside from delegating your workload, here are other benefits of hiring a general contractor.
- They have a better understanding of building code and will make sure to do their work according to such code.
- Hiring a good one enables you to save some money on your holding costs because they can get the job done fast and efficiently.
- Liability can be shifted through them. When something is not done right, the responsibility can go to the general contractor or their insurance company. They should also provide you warranty.
- They can save you a whole lot of your money in the sense that they can get a better pricing from subcontractors if they have built good relationships with them. Most general contractors have also established positive relationships with material suppliers.
Until this day, there are still a number of people who are confused as to what is the best living arrangement for them. They choose to either rent a home or buy a home that they can call their own. It requires a number of things to own a home. You have to not only be prepared financially but also emotionally.
You need to have some understanding what owning a home means. Even so, there is no denying that owning a home is one of the best investments that you will ever make in your entire life. Owning a home is a major decision that you must make and one that should be taken seriously. This short article will give you 4 reasons why it is always for the best to own a home.
- You do not just pay your bills but accumulate your assets. If you rent a home, you pay a certain amount to the owner of the house or building every month. No matter how much you do this, you will still not be able to accumulate ownership to the said home or building. Though renting a home entails less responsibilities, it is only by having your own home that you do not just pay for your bills but also accumulate a certain degree of equity.
- You enjoy the benefit of tax-deductible mortgage interest. Taxes may be a headache to most people even those that are required for their home. However, there is this so-called mortgage interest deductions that benefit a lot of home owners when they reach a certain size of mortgage. Basically, after the taxes, you will pay lesser net amounts if you own a home than rent it.
- You get ownership pride. If you rent a home, you become a tenant of the property rather than the owner. Though this implies that you have fewer responsibilities, you will have no right to customize the home that you are renting to be in keeping with your particular requirements and the changing conditions in and out of your home or even your changing family. When you own your home, you will have gained something that is intangible. You have this so-called pride of ownership that gives you some sense of being proud of yourself for owning your own home.
- You have all the freedom to update, upgrade, renovate, change, and customize your home. Home renters or tenants cannot really do a lot about certain rooms of their home such as their bathrooms and kitchens if they landlord does not allow them to make some changes to these areas of the home. In the same way, the landlord is the same person you must approach when you have plans of doing a painting job with the home that you are renting from them.
- Moreover, if you rent a home, it is just impractical to install or buy very pricey items that you cannot then take with you once you move. By owning a home, you have all the freedom in the world to change, customize, update, upgrade, or renovate your home according to your preferences. You can do anything with your home for as long as you secure a permit from your town or city as well as have the personal finances to back your budget up.
In order for you to make the most out of your mortgage business, you have to attain long-term success. And one of the best ways to do so is to appreciate your past customers. This can be done in the form of a customer appreciation party. By doing this, you are telling your past customers that they are your mortgage consultants not only now but also in the future. Doing this is one way of meeting your customers again and thanking them again after their loan is done.
Contacting them regularly using useful tools, phone calls, mailings, and emails is one way of staying in touch with them. This allows you to keep them informed of savings possibilities, cash-out options, as well as new programs that your mortgage business offers. Nevertheless, appreciation parties are one of the best ways for you to meet them personally. Here are some steps to take to effectively plan a customer appreciation party for them to foster increased transactions, additional referrals, and customer loyalty.
• Creating a guest list
You begin by inviting the past customers that you have closed a mortgage deal with for the past 2 years. When creating your guest list, review the customer satisfaction surveys that your company has sent to your past customers by mail. If you see from the surveys some very unhappy customers, never invite them to the party. You should rather invite repeat customers and realtors, contractors, builders, insurance agents, and attorneys that are your referral partners. Make sure to invite members of your company most especially those who always keep in touch with your past customers such as receptionists, post closers, closers, processors, and sales managers.
• Setting your budget
Get in touch with your main office or your sales manager so that you can ask them for some budget for this customer appreciation party you are setting up. So that you can increase the budget of the party, consider making as sponsors to the event a credit repair company, title company, insurance agent, or contractors.
• Choosing a venue
Your choice of venue highly depends on the budget that you have. With your budget, you can rent a pavilion at a park, book a party center, or have a barbecue in your parking lot. In the end, what is most important during these customer appreciation parties is that you consider them as being a party and not an event that you can do sales.
• Figuring out party details
Figure out the particular time and day of the event that you are planning. Decide if you will have your party done during the weekend or during the business hours. Choose one based on what you think is capable of having more attendees. You then figure out the entertainment, drinks, and food for your party. Will you hire a band or a disc jockey? Do you want to get a money machine for the adults as well as bounce house for the kids?
• Adding some promotional items
Do you have enough budget to give your guests some door prizes for being attendees to your event? Perhaps you can opt to give a grand prize and have your sponsors for the said event provide some gift cards. This actually allows enticing more of your past customers to attend your party by telling them about the prizes you are giving them such as vacations or household appliances. Inexpensive gifts are fine such as some of your promotional items; however, never forget to include expensive gifts as well.
When it comes to modular buildings, you can always expect them to be built almost finished inside a factory and then be arriving on the site of construction about 90-95% complete. The roofing, framing, sidings, windows, doors, insulation, interior, plumbing, and electrical finishes are all done inside the secure premises of a factory. After that, the modules will then be shipped to the site of construction where they must be finished with some paint, interior amenities, appliances, and carpet.
What are the benefits of modular buildings?
• Short construction time: Compared with traditional methods of construction, modular buildings take 50-60% less time to finish.
• Safer construction: Modular construction is done in a well-controlled and reliable facility and not on the site of the construction that is why it is safer over the more traditional methods of construction.
• Environmentally friendly: The installation is less disruptive at the same time efficient factory production methods are less wasteful.
• Decreased labor needs: The finishing and erection teams only need fewer workers in comparison to traditional construction methods.
• Flexibility: Modular buildings can easily be assembled and reassembled and then be transferred to a new location for use.
• Adaptability: These buildings are designed in a way where the contractors can easily add or remove modules as per the client’s requirements.
What are the different kinds of modular construction?
When it comes to modular construction, there are basically two major kinds. You have the permanent modular construction and the relocatable modular construction. Both of these kinds or methods have their own pros and cons.
• Permanent construction: For this kind of modular construction, the performance is done more or less half the time of a typical construction project. Even so, the life cycle for this kind of construction is more or less the same with that of the conventional type. The design considerations, however, become much higher for this construction.
• Relocatable construction: The real estate market gets a lot of relief in terms of their space needs as the time for the project to be finished is very less. This construction, however, has only a life cycle of between one and seven years. Such construction is usually intended for speed and low-cost production purposes.
According to recent statistics, the modular construction market currently has a high growth rate. Though this market has already existed in the past twenty-five years, it is still in its early stages of development. More countries are, however, starting to adapt this particular construction type. There are certain countries that have decided to build this type of homes in about 50 million of their homes. There are even some countries that are planning to include this type of construction on both their industrial and their residential sectors.
The only down side to modular construction will have to be the fact that it requires higher costs for its logistics and transportation. Studies have proven that shipping of modules can be costly if they have to travel more than 150-200 miles from the factory to the construction site. However, it is a cost-effective choice if the distance between the factory and the site is just 125 miles maximum.
Some people think that purchasing a condo unit during its pre-construction period might be the fastest and easiest approach to dealing with condominiums. As a matter of fact, with this particular reasoning, you can say that the condo unit is only purchased based on the architectural drawings being presented to the client. However, reality-wise, there are a number of complications that you can expect when you decide to purchase a unit before it is constructed.
As the condo construction progresses, developers usually change their designs. This is expected since a lot of changes can take place during the entire construction period. That is why drafting of purchase contracts has been found to be more of benefit to the purchaser and must be something that you do. If not, the purchaser will suffer the consequences of the construction project being finished late. Some purchasers have even come to the point of already staying inside their condo units while proper permits are still on the process as well as certain parts of the construction project.
Some potential condo buyers should also watch out for developers that sell their condo units during the early stages on the construction but only have possession of more than 51% of the entire condo project. As time goes by, the developers might be in the position of not being able to sell off the condo units that are remaining.
When a condominium unit is not appealing to new buyers, you can expect a major decrease in the entire value of the condo units. Once he developers will find out that their condo units are not on high demand, developers will decide to rather have the unsold units rented out. This even makes the entire value of the condo unit even lower.
Therefore, if you have plans of purchasing a condo unit, you must speak with a well experienced lawyer first who will take charge in creating certain conditions on your purchase contract that will benefit you. Included in this purchase contract must be the fixed completion date. When the developer has failed to keep up with the estimated time that they can get the condo unit done, the buyer will then have every right to get back their deposit. This kind of agreement even helps in protecting the current value of the condo units that have been previously sold.
The timing of the completion must revolve around the condo buyer. Based on advice from the experts, the deed and proceeds from the sale of a unit must be kept in escrow first under the guidance of the lawyer of the developer. This must only cease once the developer has already sold more than 51% of the condo units.
The purchaser of the condo unit must make sure to pay the occupancy fees to the developer that includes the anticipated mortgage and the monthly maintenance fees for as long as both parties are keeping their agreement. There are some developers who will push these things without doing what is required of them in the terms that you have laid out with your lawyer. You have to take note of these things so that you can later on decide how you can go about in dealing with them.
Do you have plans of selling your condo unit? The present might imply that this is the right market; however, is it really the perfect time for you to sell yours?
If you have bought your own condo unit four to five years ago, you might come to conclude that now is a good time to sell it. This decision might be predisposed by the condo prices in your location coming to a high. Aside from having an increased selling price, condos that were purchased in the past might have increased their current value as well. Yet does an increasing condo market imply that you should wait much longer to have the prices even climbing higher or sell your condo unit now? This is the most common dilemma most condo owners are currently facing.
So, should you or should you not sell now?
According to recent real estate statistics in terms of condominiums, now is indeed a good time to sell. Having an increased condo unit value implies that if you will be selling yours now, you can invest more of your higher profits in buying another property that is new. This, thus, allows you to continuously have your equity growing. If this is how you see yourself dealing with your own condo unit and its future, then you can most definitely benefit from selling your condo unit now so that you can also make the most out of the increasing value of your new property.
This plan might not work for other condo owners owing to the fact that they think that choosing not to sell their condo units now might make their value continue increasing. For them, by waiting another year, they could get a higher resale value. But then, they tend to forget that the rest of the condominium market is also increasing in value. After a year from today, you will be getting higher asking prices than what you get today. This will just turn your investment into a less profitable one as time goes by.
Also, you have some impending price corrections. When you look at how successful the prices are going up in the condo market, you are sometimes led to think that these prices might suddenly come to a drop. Price drops can be quite difficult to tell. Even so, you have to remember that having increased growth then having it decreased will make the impact of the decrease much softer.
For instance, you get an earning of 15% with the increasing condo market, it will eventually lead to a 10% decrease, but still you are able to get some 5% from it. This basically means that with the current high growth rate of the condo market, you can always expect the prices to be going down to that you have initially paid for.
At the end of the day, what you should keep in mind is that though now is a good time to sell your condo, this is not reason enough that you should really do so. Yes, it can be the perfect opportunity if you have been thinking of selling your condo for some time already. However, you should not be rushing things. As a matter of fact, if you have plans of selling your condo in the current market, this is also the perfect time for you to grow your investments and equity. So, you better buy a new property now before you get to sell your old one.
Whatever type of service you offer, you have to understand that your business will never get noticed if you do not have any customers. Time and again, a great majority of people prefer making business transactions with businesses that have proven their experience and reputation in the industry. This same thing is expected in the world of real estate. You need customers and you also need leads.
So, how you do get leads and then be able to turn them into your customers? How can a real estate business such as yours be able to stand out better from the crowd? Here are some top tips to ponder to do so.
1. Take a more personal approach. Work closely with people and on a more personal level. Working on a personal level with them means that you cater to them one customer at a time. Your mindset should be more of making connections than making money. This must be something that you have to keep in mind. Make your customers look at you as being their friend, someone they can always go to when they have some real estate concerns that need addressing.
2. Utilize the latest in technology. The whole concept of getting leads revolves around you being able to show your prospects what you are capable of doing. Show to your prospects that your company offers them more value than your competitors. In what ways can you do this, you may ask? For starters, make use of the latest in technology. Rely on the latest technology to advertise your company and make your listings look more appealing. Do not be afraid to experiment. Your customers will surely appreciate this about you.
3. Make your selling propositions more unique. What sets you part from your competitors? What do you offer that they do not? If you can answer this then that is your unique selling proposition. This is what makes you different from your competitors. You must be guided by a value proposition something that might start off by saying “this is why should be dealing with me rather than by competitors.”
Most real estate agents say that they work hard for their clients, but this is never enough. You cannot simply convince your prospects by saying this. To better stand out, you must have an offer that is both strategic and convincing. An offer that tells your leads who you serve, how you can help them with, and why they must hire you over the others.
4. Provide useful information. Become a rich source of knowledge. You must be the kind of person that your customers will not have a hard time going to for some information that they might need. This assures your customers that you are knowledgeable in anything and everything related to real estate. Not only will doing this let them trust you and work with you again but also this allows you to get more customers as per their recommendations.
5.Bear a mindset that knows how to solve problems. Real estate is really all about solving other people’s housing problems. You are solving each person’s problem one after the other. This goes to say that you must bear a mindset of a problem solver. Basically, your disappointment or success all depends on the number of problems you can solve. You must constantly learn and relearn. The more satisfied your customers are will your solutions, the more customers you get in the future and that alone helps you create a real estate business that is truly a standout.