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Category: real estate

Realty Vs Real Estate Vs Real Property

Realty and personal property terms have often been confused as to what they exactly mean. Here we will clear that right up for you. We will look at the terms personal property, realty, land, real estate, and lastly real property.

Let’s begin with personal property. Personal property also known as chattel is everything that is not real property. Example couches, TVs things of this nature. Emblements pronounced (M-blee-ments) are things like crops, apples, oranges, and berries. Emblements are also personal property. So when you go to sell your house, flip, or wholesale deal, you sell or transfer ownership by a bill of sale with personal property.

Realty.

Realty is the broad definition for land, real estate, and real property.

Land

Land is everything mother nature gave to us like whats below the ground, above the ground and the airspace. Also called subsurface (underground), surface (the dirt) and airspace. So when you buy land that’s what you get, keep in mind our government owns a lot of our air space.

Real Estate

Real estate is defined as land plus its man made improvements added to it. You know things like fences, houses, and driveways. So when you buy real estate this is what you can expect to be getting.

Real property

Real property is land, real estate, and what’s call the bundle of rights. The bundle of rights consist of five rights, the right to possess, control, enjoy, exclude, and lastly dispose. So basically you can possess, take control, enjoy, exclude others, and then dispose of your real property as you wish as long as you do not break state and federal laws.

Lastly there are two other types of property we should mention.

Fixture

Fixture is personal property which has been attached realty and by that now is considered real property. So you would ask yourself upon selling to determine value “did you attach it to make it permanent?” The exceptions to this rule are the garage door opener and door key, these are not considered fixtures.

Trade Fixtures

Trade fixtures are those fixtures installed by say a commercial tenant or can be the property of the commercial tenant.

I hope this clears up some misconceptions about personal property, realty, land and real estate and now fixtures and trade fixtures!…

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Prospecting For Clients in Commercial Real Estate

In commercial real estate it is essential that you know and prospect the right people and lots of them. These people will be landlords, tenants, property investors, sellers, and buyers. The most successful real estate agents and brokers will consistently contact and know several hundred of these people. They will contact every person in their database at least once every 90 days, and commonly much more frequently so that the ‘bridge of trust and relevance’ is established. To do this you should be very organised at record keeping and collation; take personal ownership of the prospecting task.

At the fundamental level, the commercial and investment property industry is just about people with property challenges and problems. You should be the solution that they seek, and your solution should be better than your competition agents and brokers. So what solutions do you bring to the prospect? Do not say that:

  • You know your market
  • You have done the deals
  • You are the best around
  • You have the best team
  • You are the best communicator
  • You are the best agent
  • You drive the best car!
  • You have been in the market for 100 years!

All of this generic ‘rubbish’ is frequently ‘dumped’ on a prospect by ordinary agents in just about every property sales or leasing presentation. Be better than this by bringing real evidence, strategy, and knowledge to the table. Stand tall on what you know and what you can do. Show it! Be part of your own solution for the client so that no other agent can ‘fill the gap’ for the client.

Do not offer tempting and standard low level solutions to your prospects such as discounted commissions, and free advertising, as this will do little to give you quality clients. Quality clients know that a good property promotion and solution for a commercial property, costs money and takes considerable strategy. Demand the commitment from your prospects to be part of the property solution that you have designed.

Today we are blessed with technology (databases, and email) when it comes to maintaining contact with our prospects. It is the personal contact that is more important to build your business than anything else and will remain so. Personal branding is a key element of creating market share and the long term opportunity for you. People need to know you individually, and that vision should give them confidence that you can solve their property challenge in a timely and cost effective way. Build your personal brand each and every day without fail by lifting the telephone and creating appointments. Business cards and lots of them are the best way to leave your mark after every meeting; forget the glossy brochures and concentrate on marketing yourself.

So what are the rules for getting the first appointment up and going for the targeted people that you want to meet and build a relationship with? It all comes down to this:

  • Deal with your fears and weaknesses early. On a daily basis it is
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The Dinosaur in the Deal – Are Real Estate Agents a Thing of the Past?

Are real estate agents a thing of the past?

According to statistics from the National Association of Realtors, they might be. The number of real estate agents has dropped over 26% in less than 5 years.

And I’d trust those numbers. Over the last two decades, the NAR has spent over $90 million in political contributions. Let’s just say they’re certainly invested in their own industry.

It’s common sense that the number of agents would have dropped. After all, a lot of professions have cut jobs since the recession. But across all sectors, you’d have to dig pretty deep to find a loss of 26%. In fact, only construction workers-a notorious casualty of the housing bust-can keep real estate agents company in terms of percentage of jobs lost.

Still, if I had to choose between being a construction worker and a real estate agent right now, I might choose to get out my hard hat. Once the economy turns around, people will begin building and buying homes again, if on a more modest scale. The age of the easily mortgaged McMansion is over, but construction workers will certainly be needed again, and their industry will recover. It has to-we haven’t yet found a way to outsource home building or build supercomputers that can do it for us. And thank goodness for that.

Real estate agents, on the other hand, are facing an entirely different dilemma. The business model that has employed them for so long is expiring. Real estate agents used to give people access to listings that no one knew about. They provided a crucial link to the city or neighborhood or community where a family wanted to move. They could find you a home that met all your specifications. If you needed to sell a home, they could handle everything for you, and put it on the market in style.

But now that you can find dozens of websites with video tutorials on how to stage your home, and now that Trulia has become everyone’s favorite iPhone app, the real estate game has changed forever.

Everything that a real estate agent can do, the average consumer can now do from the cost-saving convenience of his or her own home. 90% of home buyers find their home on the Internet, and there’s no stopping the Internet when it comes to industry change. Middlemen have been disappearing all over the place. We use ATMs to make deposits, do our taxes with cheap software, rent videos from Netflix. And I can’t think of the last time I called a travel agent-can you?

There’s a quiet revolution going on in real estate. Buyers and sellers are seeing that they can deal directly with each other, and most importantly, save money. Who would you rather go to Hawaii when you sell your house-you or your agent? I don’t like to make assumptions, but I think I know the answer to that one.

The only surprise is that the real estate agent has lasted …

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Why Most Real Estate Prospecting Letters Fail

Have you paid attention to the real estate prospecting letters you get in the mail?

Most of those real estate letters begin by breaking the #1 rule in copywriting: It isn’t about you.

Because those agents think the letters are about them, they begin the very first sentence with the word “I” or “We.”

As a result, a huge percentage of people begin reading the letter with a thought or feeling of “Why should I care about you?” or maybe “Yeah, so what? Who are you to me?”

The truth is, your prospects don’t give a hoot about you. They want to hear about themselves. The only reason they’ll read your letter is to see what benefit it holds for them.

You could say “My doctor says I’ll be dead by Tuesday unless you list your house with me,” and it wouldn’t budge them a bit. They’d think “Sorry, that’s not my problem.”

That’s a little extreme. But you get what I mean.

So there’s the first big mistake. And most of the time, from there it doesn’t get any better.

Those letters might go on to say how many listings an agent has or how many dollars worth of real estate he or she has sold. It might even mention their “alphabet soup” designations – which don’t mean a thing to most homeowners.

It’s all just more of the “me, me, me” message that doesn’t interest prospects in the least.

So what can you do instead?

You can write about their concerns and worries. You can show them that you recognize their problems, and then explain what you’ll do to help solve those problems.

Your approach will naturally be different if you’re writing to a “cold” group of homeowners in a specific neighborhood as opposed to say, a group of people with expired listings or a list of homeowners who have received a notice of default.

When you know what specific problems those homeowners have, it’s easier to show how you’ll solve them.

But even if you’re writing to a mixed farming area and don’t know what problems they need to solve, you can appeal to their curiosity and interest.

For instance, you can offer information about what’s been happening in that neighborhood. You can let them know how many homes are for sale or have sold in the past month or so. You can share average prices. You can tell them if prices are up or down from last month, or last quarter. And then you can offer to put them on your list for periodic updates.

Almost as an afterthought, you can let them know that you’d be happy to prepare a market analysis if they’re considering selling their home.

Today, successful marketing is all about giving something before you ask for anything. You have knowledge and advice. Give them freely.

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10 Most Expensive Tax Mistakes That Cost Real Estate Agents Thousands

Are you satisfied with the amount of taxes you pay? Are you confident that you’re taking advantage of every available tax break? But most of all, is your tax preparer giving you proactive advice to save on your taxes?

The bad news is that you probably do pay too much tax and you’re probably not taking advantage of every tax break. And most preparers do a poor job of actually saving their clients money.

The good news is that you don’t have to feel that way. You just need a better plan. This article reveals some of the biggest tax mistakes that business owners make. Then, it gives brief solutions to actually solve these problems. Please note that this article is designed to be an informational tool only. Before you implement any of these strategies, you should consult a tax professional for more specific guidelines and requirements.

#1: FAILING TO PLAN

The first mistake is the biggest mistake of all. It is failing to plan. It doesn’t matter how good your tax preparer is with your stack of receipts on April 15. If you didn’t know that you could write off your kid’s braces as a business expense, it’s too late to do anything when your taxes are prepared the following year.

Tax coaching is about giving you a plan for minimizing your taxes. What should you do? When should you do it? How should you do it?

And tax coaching offers two more powerful advantages. First, it’s the key to your financial defenses. As a real estate agent, you have two ways to put more cash in your pocket. Financial offense is increasing your income. Financial defense is reducing your expenses. For most agents, taxes are their biggest expense. So it makes sense to focus your financial defense where you spend the most.

And second, tax coaching guarantees results. You can spend all sorts of time, effort and money promoting your business. But that can’t guarantee results. Or you can set up a medical expense reimbursement plan, deduct your daughter’s braces, and guarantee tax savings.

#2: MISUNDERSTANDING AUDIT ODDS

The second big mistake is nearly as important as the first, and that’s fearing, rather than respecting the IRS.

What does the kind of tax planning we’re talking about do to your odds of being audited? The truth is, most experts say it pays to be aggressive. That’s because overall audit odds are so low that most legitimate deductions aren’t likely to wave “red flags.”

Audit rates are actually as low as they’ve ever been for 2008 – the overall audit rate was just one in every 99 returns. Roughly half of those audits targeted the Earned Income Tax Credit for low-income working families. The IRS primarily targets small businesses, especially sole proprietorships, and cash industries like pizza parlors and coin-operated laundromats with opportunities to hide income and skim profits.

#3: TOO MUCH SELF-EMPLOYMENT TAX

If you’re like most business owners, you pay as much in self-employment tax as you …

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Mortgage Loan Origination Software – 10 Functions of Mortgage Banking

Regardless of a mortgage lending organizations’ size, mortgage loan software, data security solutions and automation tools and services should be able to assist with mortgage loan automation requirements. In today’s chaotic mortgage lending environment origination and document security systems need to be easily configured to emphasize a company’s special needs and increase efficiencies across all aspects of the loan origination process, allowing lenders to increase quality and productivity.

Technology-driven automation is the key to succeeding in the increasingly complex, deeply scrutinized mortgage industry. Web-based (Software-as-a-Service), Enterprise mortgage software that supports the ten primary functions in mortgage banking will provide lenders with the necessary competitive advantages to succeed in today’s mortgage industry.

Ten Primary Functions in Mortgage Banking

  1. Mortgage Web site design, implementation, and hosting to provide product, service, loan status, and company information to mortgage customers and business partners
  2. Online loan applications for gathering information from borrowers and business partners that issue loan terms, disclosures, and underwriting conditions
  3. Loan origination software for managing loan data, borrower data, property data, general status reporting, and calculations
  4. Interface systems to send and receive data from real estate service providers, such as credit reports, flood determinations, automated underwriting, fraud detection, and closing documents
  5. Internal automated underwriting system that is simple enough for originators and sophisticated enough for underwriting portfolio loan products
  6. Document generation for applications, upfront disclosures, business processes, and closing documents
  7. Integrated imaging that is used from loan origination to investor delivery and for file archiving
  8. Interest rate and fee generation along with program qualification guidelines
  9. Secondary marketing data tools to track loan revenue and investor relationships, including warehouse line management and interim servicing to complete the back-office system
  10. Reporting such as loan delivery, year-end fee reporting, and HMDA reporting for loan application disposition

Web-Based, enterprise mortgage software that supports the ten primary functions of mortgage banking simplifies compliance, maximizes operational efficiencies, and increases profitability.…

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How to Get Rich Buying Real Estate From Your Parents With No Money Down and No Credit

You can get rich from the equity appreciation of real estate by buying property from your parents using traditional or creative financing that may or may not require a down payment or credit. Whether you are a first-time home buyer or an experienced investor, you can buy any type of property from your parents from a home you live in with them to an investment property you rent out to tenants. The following lists some reasons why you may find it faster, easier and financially more lucrative to buy from your parents than anyone else.

You Don’t Have to Buy an Entire Property

When you buy from your parents, you can purchase any percentage you want like 10%, 50% or 75%. If you pay less-than-full price, you will have lower mortgage payments and buying a house is more affordable. Regardless of what percentage you own, you still get the benefits of home ownership such as equity appreciation, mortgage interest deductions, property tax deductions and capital gains tax exclusions.

You Can Share the Responsibility with Your Parents

When you buy a partial interest in a property, you and your parents share the responsibility of owning it including the mortgages you each carry, the property taxes, homeowners insurance or homeowners association dues, and maintenance. Because you have more than one person responsible for a property, you can rely on each other for financial strength in the event of hardship.

You Can Elevate Your Status From Renter to Owner

Are you already living at home rent-free or paying rent? Is so, why not buy into your parents’ house, since you already live there, and get an equity stake in their property? Then, you are no longer living with your parents but living in your house that you own with your parents. If your parents have more than one property, you can buy into one of their secondary or investment properties and live on your own.

You Don’t Have to Get a Loan From a Bank

When you buy from your parents, you don’t have to qualify for a loan from a traditional lender such as a bank which has income, asset and credit requirements because your parents can act as a bank and give you seller financing for your purchases.

You Can Create Your Own Home Loan

When your parents act as a bank, you can get favorable loan terms by structuring your own payment schedule with a manageable loan amount, lower-than-market interest rate and repayment term of your choice.

You Don’t Need a Down Payment

Unlike getting financing from a bank which has down payment requirements, you can buy from your parents with no money down.

You May Get Property Tax Benefits

Depending on the state you live in, your property taxes may not be reassessed at current values when you buy from your parents or grandparents because of a parent-child and grandparent to grandchild property tax reassessment exclusion. This is a huge benefit when parents and grandparents have had ownership for …

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Mexico Real Estate – 4 Major Types of Land to Look Out For When Purchasing!

When talking about owning and investing in real estate in Mexico, people always ask me the same question, “Can’t they take away your land, or do you have one of those 99 year things going on?” Well, I can understand the concern and misconception, but basically, neither of those concerns are true.

Fortunately, ownership policy of Mexico real estate has evolved. Mexico now embraces foreign investors and second-home owners who want to acquire Mexican real estate. But those who set out to purchase real estate in Mexico, very quickly are confronted with different types of land to purchase. And many international buyers wish they would have done a bit more research before giving up a deposit.

The four major types of land in Mexico are the Federal Maritime Land Zone, the Restricted Zone, the Unrestricted Zone, and Ejido land.

The Federal Zone is a strip of land that hugs the ocean and the international borders. No one can own this land, not even Mexicans. This includes land along the Pacific Ocean, Sea of Cortez, and Gulf of Mexico, from the mean high tide line to 66 feet up the beach. This 66 feet of coastal land is a buffer from the ocean to the first row of homes or businesses.

Some big hotels, Mexican land owners, large developments, and marinas apply for special permits to rent this land from the government. Some international and Mexican home owners with significant beach front real estate are also now applying for concessions to lease this land from the Mexican Government.

The Restricted Zone is the prime land that most international buyers are after. This is land that is more than 66 feet away from the mean high tide line and up to 32 miles away from the major oceans, and 64 miles from international borders. U.S. citizens, and other non-Mexican nationals, are buying this land using an instrument called a “fideicomiso,” also known as a Mexico bank trust.

This Mexican bank trust is a dream come true for international buyers of Mexican real estate. It gives the non-Mexican national owner of Mexican real estate the power they need to control their land purchase, very similar to the way a USA citizen would enjoy owning real estate in the USA. For example, using a fideicomiso, you would be able to will the land or home to your children, rent it, subdivide it, lease-option it, enjoy it, sell it, improve it, or do anything that can be done with real estate.

This bank trust costs about $2,000 to set up, and about $500 a year to maintain, depending on the size of the land. If you decide to sell your property the bank trust is easily transferable making your property very sellable.

Mexican nationals don’t use fideicomisos to buy land, as the restricted zone is not restricted to them. They buy land using a deed called an “escritura publica.” So when looking to buy Mexican real estate, you will be buying from someone that has …

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Why not learn more about Houses?

Purchasing a Home and Land Package There are few decisions you will ever make about your finances that are going to change your life as much as purchasing a home. When you are on the market to buy a house, you are going to want to make sure you look at all of your options.You are going to want to start by coming up with a budget for how much you can afford to spend.Then you are going to want to come up with a wish list for the things that you are looking for in a property. Finding an existing house that is both within your budget and has everything you are looking for can be a challenge. But there are new home builders also offering home and land packages that can make it so you can have your dream home. There are a number of reasons you are going to want to consider new home builders also offering home and land packages for you purchase. When you get a home and land package they are going to sell you a plot, where they are also going to build you a new home. With new home builders also offering home and land packages, you are going to be given a selection of model homes they will build on the property for you. However; you are also going to be given a huge number of options for the home they are building so you are going to be able to have house that you want built the way you want it. One of the best things about going with a home and land package is how easy it is going to be to maintain your home. Everything in your house is going to be completely new, which makes it so you do not have to replace anything for years. Many people that have purchased an existing home find that the roof needs to be replaced or the HVAC unit needs to be repaired shortly after moving in.
What You Should Know About Houses This Year
You are going to want to do some research when looking into new home builders also offering home and land packages. You are going to want to look at the costs of the home and land packages they offer. Plus, you should compare the options they make available to you that will fit into the budget you have to spend.
Why not learn more about Houses?
You are probably not going to make any financial decisions in your life that will have the same impact as buying a house. There are many benefits that come with choosing new home builders also offering home and land packages. This is a great way to get the house you want within the budget you have to spend.…

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Case Study: My Experience With Homes

The Reasons For The Popularity Of Private Mortgages For Real Estate It seems like whenever people have some financial problems, one of their solutions is to get a loan. If you are this person, you need to check your available options wisely. The truth is that it does not really matter what your reasons are, the important thing is that you are able to find what you need. Unlike in the past, most people were into getting loans from a traditional mortgage option, but today, that has changed a lot. This just means that these people like the private loans better than the traditional one. One of the reasons for this is the feature that it contains. Aside from that, there are still other reasons why they prefer the new one. That is why it is worth it to read this article for more information about this type of mortgage loan. First of all, you should know that there are private lenders who would offer these private mortgage loans for you. It is not the same as the traditional mortgage loan because it has banks, government agencies and lending institutions to offer the loan that you need. By saying this, the system that the private mortgage loan makes is quite different from the other one that makes it different. Even though the system is different, it became what most people prefer for. If you want to know the reason why it has become famous, well this is one of the reasons. One of the benefits that people can get from the private one is the fact that it offers flexibility to their clients. It is important that before you avail of loans from this company, you have to first know and understand the concept behind it. It is important that you know the money that you get from this which is short-term. One important aspect that private lenders checked upon application is the value of your property before you avail of the loan. What most people like about private mortgage loans for real estate is that they can get so many advantages just by choosing this. In fact, even the professional real estate investors are using this as their source of funding for their investment. If you have properties that are producing income, the good thing about this is that you get to rehabilitate, get and cash out the equity from it. The best thing about this is that the processed is easy and hassle free for you. The other good thing about this is that it can save so much time on your part. You can also be sure that you get maximum security if you choose this. With this, you can be sure that you can get approval in a quick manner because of the process that they make that is fast and easy. The other good thing with this is that you only have to wait for 10 days before you can get accessed to the loan …

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