One in a Million Real Estate Purchase with Assured Value Increase

‘’One in a million’’ means either it takes immense efforts to obtain something or may be brought about by just a good stroke of luck. Real estate investment opportunities Dallas are significant as these opportunities only come once in a million times and only a one in a million will grab those opportunities.

When a lender decides to grant a loan for a mortgage, the first question that arises is whether or not the condition of a house is adequate for a mortgage. As per a real estate purchase contract, the first thing you will be looking for is the structure and foundation of the house and check if there’s any significant problem. It’s a good thing to note this is not done by licensed appraiser whose main function is to determine the market value of the home. A thorough property inspection will help establish the real condition of a house. This will help you in finding any loopholes in the house that you are about to purchase. A leaky roof and creaking floor can only be discovered when a house inspector checks the house in great detail. If the problems are significant enough, they can stop the deal from being finalized. This is the reason why majority of the lenders do not allow buyers to conduct appraisal unless a prior inspection is done.

But what happens if there are no significant problems but only small concerns on the property? Say, the carpet is almost torn and worn and a replacement is necessary. Or maybe the deck requires a thorough cleaning. Maybe the property that you are about to purchase has been a competition place for drawing cartoon characters on the walls; it would require painting over the whole house. Such minor errors should not become an obstacle between the deal as these real estate investment opportunities do not come every day. However, these minor concerns can allow the buyers and sellers to negotiate and bargain their worries. If you haven’t tried negotiating, seek the help of a reliable estate agent to help you in discussing your concerns with the property owner.

If you want everything to be fixed and be in the best condition, the seller must take care of these things. In fact, this stipulation is always included in real estate contracts. If the fence requires an upgrade and you want it done, put this in the contract. Buyers may then state that the value of the property is to be established after the fence has been fixed. This will also alert the lender to note for the fence being installed on closing as per seller and buyer agreement. However, what happens if the seller doesn’t agree to this type of demand? After all, it’s always likely that he would spend extra cash for the fence only to find out that the buyer doesn’t get his mortgage approved. Sellers might find it not practical to spend anything before closing. To remedy this, a seller’s concession can be made that instead of installing carpet upon closing, an amount will be given as an allowance to have a new carpet installed. And this is concession is only given once a mortgage approval is obtained by the buyer.

Then again, to clarify things, an allowance for the carpet is not to be construed as actual cash that will be handed over to the buyer of the property. This is not a usual practice, not even in rare real estate investment opportunities. No lender would allow a seller to hand over certain amount of cash to the buyer as some sort of a seller’s concession. What you can do is to have the seller shoulder the specific amount as part of the closing costs; this would be much acceptable in a real estate agreement. A real estate contract can have certain intricacies that regular people will not have any idea about. It’s best to enlist the help of an expert estate agent to guide you through the process and help you come up with acceptable real estate contracts. As they say, real estate investment opportunities don’t always come knocking at your door. When it does, you have to know how to grab it properly so it won’t slip through your hands. And having a well-drawn contract will always help you ensure that you’ve made a worthwhile investment.

Lease-to Buy – An Alternate to Outright Buying!

Many people who want to own but are unable to arrange down payments or afford monthly mortgages as yet, are seriously considering leasing a piece of land. This option allows renting under a leasing agreement, and at the end of the lease period, they have the option to purchase and own it.

The lease-to-buy option provides future homeowners with poor credit a great opportunity to mend their damaged credit history in anticipation of future homeownership. At the same time, owners of currently vacant property get the chance to earn some income through leasing.

The lease-to-buy approach is a great way for aspiring homeowners to give future homeownership a test drive. By leasing, you will be able to confirm your appetite for the ultimate costs and responsibilities that are to come with ownership.

This concept of selling is becoming popular with both individual owners as well as mainstream developers who are trying to offload their excess inventory. Buying investment property Dallas becomes an easier task for the target market when all the conditions are correct.

According to Eric Gedstad, who works at Boston-based mass housing as its corporate communications manager, the condominium market in the city is rather weak these days. As a result, developers wishing to sell their property are also giving rent-to-own approaches a try. One option gives renters the right of first refusal on units they are renting, if they opt to buy the unit within the next year.

While leasing-to-buy is a great way to gain eventual homeownership, it is essential to understand how this option works. To ensure your interests are protected in any lease-to-buy agreement, you should seek expert advice. Some information that might help you is provided below:

Usually, lease-to-buy agreements allow renters an option to buy property at a certain price after a stipulated time of renting, by requiring the tenant to make an up-front non-refundable payment. Sellers usually allow aspiring buyers to off-set a percentage of their monthly rental payments towards this down payment.

The renter/buyer gains from this arrangement because:

Under the agreement, during the stipulated period, only the renter is provided the option to purchase it.

The agreement allows you to apply a portion of your recurring lease/rental payment towards building equity, and allows the equity built up to fund the down payment required to buy.

Contractually, upon the expiry of the lease, you have the option – though not an obligation – to buy the leased residential investment property.

Often, you are allowed to exercise your right to buy at any time during the currency of your contract.

This offers an ideal opportunity to test drive ultimate ownership of residential real estate investment Dallas.

This arrangement works well in a seller’s market, when prices are on the rise, because you would have locked in your purchase price at a historically low level. However, in case of a depreciating trend in prices, you may be adversely impacted.

You have a chance to clean up your credit history and build equity. This offers you and ideal opportunity to rebuild damaged credit ratings by building up equity.

The seller/owner gains from this arrangement because:

It provides a great opportunity for quick cash flow, and an opportunity to subsequently offload to the renter.

Should the renter exercise the right not to buy, the seller gets to retain the option fee paid up front.

This broadens your base of potential buyers because you can now target traditional renters as well as future buyers.

Current tenants take better care of the property that they know they could potentially soon own.

As the owner, while tenants rent the home, you maintain all the tax-shelter advantages the property has to offer.

It offers some degree of solace to know that the existing tenants of your are actively interested in buying the property off you.

Points to note for lease-to-buy options:

Have the inspected by a professional home inspector, and maintain photographic records if possible.

It is important to stay current with all payments – insurance, mortgage, taxes – related to your home.

Ensure the possible buyer that it does not carry any outstanding leans against it.

Highlight terms and conditions governing the rights/obligations of the renter in case they decide to decline buying from you.

Just like a sales contract, make sure your contract has all the details in writing for a complete record.

Prepare a draft of an undated and unsigned purchase agreement. Ensure you have a draft, although undated, contract ready.

To avoid any future pitfalls in a lease-to-buy option residential real estate investment Dallas, it is always advisable to seek professional help.

Important Repairs for Selling Real Estate Rental Properties

If you’re preparing to place your property on the market, you’ll need to do some minor repairs and slight improvements before your broker can place a for sale sign out front. There are many projects such as a fresh coat of paint and other similar improvements that can make your asset more attractive to potential purchasers. Although some of the projects take more time and money than others, it is worth the cost when you consider it can make the difference between selling or not and how close you can come to getting your asking price. These necessary repairs can also speed the sale of your rental properties Dallas TX.

There are minor repairs that cost little in time and money to prepare your land but there are also larger repairs that while they don’t present a health or safety problem that can make you question as to whether to disclose the issue and let the person purchasing your home deal with them or if you should fix the issues before you list the house for sale. Before you make this type of decision, consider that repairing the problem can possibly result in a higher selling price if you did not fix the problems. Many potential investors appreciate greatly the words-“brand new or just replaced”, especially if it is a major issue. If your home is in “ready to take occupancy now” condition, this is a major selling point, especially with first time buyers or people with busy lifestyles. Most investors will not give a second look to investment properties for sale in Dallas if it needs a great number of repairs. There is a very narrow market of potential investors looking for “fixer upper” properties. When your home is in top shape and have great visual appeal get the most attention on the market in most situations. Properties that look sharp can demand a better selling price also and stand a greater chance of their owners getting the price that is being asked. When it looks great, they sell quicker and get more bids.

Another point you have to consider when placing your property on the market is that many realtors include the use of an inspection clause when putting a purchase agreement together. This clause can allow potential buyers to terminate a contract if the property inspection doesn’t meet their satisfaction or if certain repairs are not completed by the current owner in a set amount of time. There are numerous places where this inspection clause can essentially reopen negotiations on the sale if the potential investor is not satisfied with the findings on the inspection. An unsatisfactory inspection can also cause a buyer to ask for a discounted price that are being offered for sale, often based on their view or opinion of the costs to make the repairs.

You should also consider local market conditions for selling before you decide what to repair and how much improvements you are going to make. The realtor handling your sale can make the best suggestions as to what’s needed to make the deal competitive in the local market. If you’re in a seller’s market, you may not need to do much if anything at all, but if your property is in a buyer’s market, you will need to do whatever is necessary to make your listing “hot” so that it will sell quickly. You also have to be cautious and not overdo on any repairs and improvements to the asset. If a property outshines its competition too much, buyers may think there is something wrong or you are selling it for suspicious reasons. Follow the advice of your rental properties Dallas TX selling agent. They know the best way to make your properties marketable within the local area and the necessary action to take on repairs or improvements.

Don’t Make These Costly Mistake When Selling Your Home

There are many different types of real estate investment strategies that sellers need to keep in mind when deciding to sell their home. These seven things can help make it easier for a home owner to turn the sale of their home more quickly. Buyers need to be aware of also so that they can get a great home at a great price.These good investment plans can save thousands of dollars in unnecessary expenses and hours of negotiation stress.

Sid Davis, a real estate broker and author of “A Survival Guide to Selling a Home,” writes that there are seven costly mistakes when thinking of investment properties for sale Dallas which will be considered unwise.There are numerous homeowners that seek out professional advice before putting their home on the real estate market. These are fairly common processes that are easy to avoid making and can make it much easier and faster to sell your home if you follow his advice.

1. Selling an investment properties for sale Dallas before it is ready. This technique is something that often occurs because a seller has either placed their home for sale in a hurry without thought to what needs to be done or they have a moving deadline and have not done preparatory work in a timely manner. If you know your home needs sprucing up or minor repairs, then doing so before you ever list it for sale is one of the most important techniques used for a quick sale of your home.

2. Overly improving your investment homes for sale Dallas. One of the best ideals that you can use is make your home blend in nicely with the surrounding properties. Make it a pleasant addition to the neighborhood instead of something that outshines its neighbors. This is especially necessary if you’ve made additions to the structure of your home.

3. One of the other tactics home owners should avoid is pricing the home on what you want to net from the sale. You can control the asking price but not always the selling price. Unfortunately what really happens is that the price your home sells for is controlled by the reality of the current real estate market and the lending institutions.

4. Don’t hire a realty agent unless they are a qualified expert. One of the most important tools you can have on your side is having someone who knows all the current information on local house sale markets and techniques. Having an expert in this field can mean the difference between a good sale and having your home remain on the market for an unnecessary length of time.

5. Don’t get emotionally involved in your turnkey investment homes for sale Dallas. This may sound like one of the most difficult path to follow and it can be a challenge, but once you decide to sell your home, you need to start detaching yourself from the property and realize that you’ve chosen to move on and it’s time to let other people begin the process of choosing to make it their new home. The experts will tell you that the more you are emotionally involved, the harder it is for them to sell your home. Let the experts handle the details.

6. Don’t try to cover up or hide problems with your home. Not disclosing any issues with the structure or fixtures can be a serious mistake. Most states require that you fill out a property disclosure or disclaimer form when you list your home for sale. Openly disclosing any problems with your home is one of the best methods you can put to use. It will make the selling process go much more smoothly.

7. Another one of the most unused route is not being aware of all the necessary steps required to sell a home. As a seller you need to know about financing, knowing all the details on your mortgage if you have one and any other minute details that can hold up your investment homes for sale Dallas.