Contrary to what some people may believe home builders are not simply contractors or carpenters who perform their role in a house and leave. Continue reading
Category Archives: Real Estate Building
Getting Contractors for Building Additions that You Will Not Regret!
Sometimes, for whatever reasons, you may want to add something extra to your house. You may want to put in an extra bedroom, bathroom, a shade, an extra kitchen or a TV room. The reasons for additions vary; it could be that the family is growing larger, or maybe you want to sell and fetch a good price.
What you must have is a company or a contractor who knows their stuff. Aside from ensuring that they adhere to your timeline, you want the work to be expertly done. Your contract must assure you of four things: Continue reading
Advantages and Disadvantages of Using a Lease Option
The world of real estate is a competitive industry where you have to be at the top of your game at all times or you never know when someone would swoop in and steal your opportunity. For a person who wants to enter real estate to make a living, they have to be a pretty good presenter, in order to ensure that they bag the client or at least, persuade them to make a commitment at the end of the walkthrough.
There are various options for investing in real estate. Choosing the right one depends on whether you are planning to sell it right away or forming a landlord and tenants relationship. This relationship keeps the landlord and tenants happy for a period of time, depending on the contract they have signed.
What is a Lease Option?
The lease option is a strategy that has two aspects to it. The lease is the document that the tenants sign for a certain period of time and move into the house and the option allows them to pay the full amount set in the contract if they want to buy the house. The option gives the tenants the legal right to buy the house in a pre-determined length of time at a pre-determined price.
Here’s an example to help you understand how the lease option actually works:
Morris and Sasha are planning to buy an apartment from Daniel, the investor. When the couple is unable to get a loan, they ask Daniel for seller financing. After checking the couple’s credit ratings, Daniel sees them as a good candidate. The contract is signed and the home is set to be bought at $100,500, within a two year period. The couple provides Daniel with $7000 and moves in. Within two years, they are able to get a loan and purchase the house from Daniel. This type of residential sales option is offered by companies such as Laing & Simmons Real Estate.
Advantages
Proves to Be a Profitable Short-Term Exit Strategy
The lease option is more profitable than flipping a property, as it provides you with multiple options in a slow as well as a high market. Depending on the buyers, it’s possible that they might leave the option and look for a property somewhere else, which gives you the advantage to look for a new tenant but with a higher price range.
Less Property Damage
Since the tenants have no idea whether they will be purchasing the house or just leasing it, they take better care of the property. Damages that take place during the leasing option are to be repaired by the tenants.
No Commission
Since you are selling on your own, no commission is required to be given to the real estate agent. By effectively marketing the house and offering tenants some flexibility, you save more.
Disadvantages
“Due on Sale” Clause
If you’ve offered seller financing, there’s a possibility that the bank might demand the “due on sale”. In such a case, you’ll have to pay back the loan in 30 days.
No Selling Option
The tenants might buy the property or they might back out at the end, leaving you empty-handed and looking for a tenant once again. If the market is down, it will be difficult for you to attract serious buyers.
Possibility of Low Profits
If the market rises, you cannot charge the tenants extra if they plan to buy the property before their lease is up. Therefore, you need to be careful when setting the sale amount in the contract.
If you believe that you are a pro in the real estate market and can handle the possibility of a loss, then the lease option can be great for you. You just have to wait patiently for the right buyer, so that when the lease is up, you’ll get the profit, whether or not the tenant buys the property.
5 great tips for house builders
House building projects are always challenging. There are numerous parameters that should be regarded before such projects can be properly executed. In many cases, house builders are battling against costly delays and extremely time-consuming reworks.
That being said, it is indispensable that they have the right plan and tools in place so they boost their project’s efficiency and accelerate the completion of the various tasks.
Optimizing the flow of information across the supply chain is one of the most fundamental factors that you want to focus on. In other words, the better connection between the different construction stakeholders the better outcome for your home building project. Continue reading
6 questions to ask your home builder
Are you currently in the process of planning and soon building your dream home? Chances are you’ve read on what things should and shouldn’t be done—including choosing a reliable home builder. But how do you know if you’re working with a great builder? How can you say they’re doing a fantastic job if you have little to no knowledge about the process?
To start off, you should get in touch with not only one, but a number of builders recommended to you. Then, narrow down your choices to three and meet with each builder to discuss the project. This should let you decide which builder to go for.
3 important factors to consider before buying a land
Are you planning on settling down? Perhaps you’re thinking of investing in a block of land for your future.
Becoming a landowner is one of the biggest dreams; and eventually turning that block of land into your dream home or whatever you intend it to be is just fulfilling.
While it’s great to have a real estate expert to guide you in finding the block of land for you, it’s still better to know yourself what to look for when checking out lot properties. Whether it’s meant for building your dream custom home or something that you can passively earn from in whichever way you choose in the future, here some handy tips you should bear in mind when scouting for a piece of land: Continue reading
5 common home building mistakes to avoid
If you’re in the process of building your home, look beyond the design and your wants. Building a house comes with a hefty price and often times, you don’t get to construct the one you’ve always dreamed of due to budget constraints. Nevertheless, the compromise you’ve made along the process could present you the home you’ll need.
As a new homeowner, you are bound for mistakes. Don’t worry, it’s inevitable and many have learned from theirs. If you’re still in the planning process, let’s help you minimize that as much as possible. Here are a few of the most common home building and planning mishaps homeowners make that you should avoid.
7 resolutions renters should make
Renting an apartment has its ups and downs. It can either make life easier and more practical or very limiting. Whatever it may be, you don’t have to keep it that way. A new year means a fresh start. With your long list of resolutions about health, finances, and the likes, why not add your renter’s resolutions on the list?
From paying on time to maintaining a good relationship with your landlord, here are 7 resolutions you ought to keep to make this year of renting a breeze:
7 useful tips when building your custom home
Building your custom dream home is not an easy feat. It is a stressful and long process that will require a bucket-full of time, effort, and resources. But it’s all worth it if it means constructing that dream into reality.
You’ll spend hours after hours; months after months of planning and building. You’ll make a few bad calls but a handful more of good calls in the process. It’s going to be tough and exciting. However, with proper organization, research, and with the help of the right people, building your dream home from the ground up to the final touches of knickknacks and art pieces can be as smooth as your brand new hardwood floor.
Anticipate a lot of mishaps but expect a home that is built from your labor of love in the end. Here are some tips you can take note of that should help guide you in the process.
How to Save Time and Money Dealing with Landlord Disputes
Today, one of the biggest drains on our monthly paycheques is that of rent. Putting a roof over our heads is of vital importance and this is reflected in the money we spend on it. However, additional costs as a result of a bad landlord or loss of money altogether on top of rent can be a big blow to money saving efforts.