What is Real Estate

Writen by Willard Michlin

The phone range and Peter was on the other end of the line. "Willard, I have a friend of mine that has a real estate problem." I said, "Send him over." Two hours later, Jerry sat in front of me terribly upset. Three years earlier, he had been talked into buying a 4 unit building in partnership with Smooth Talker, a knowledgeable, smooth talking real estate salesman. Smooth Talker offered to find the property, arrange the financing, manage the building and even put up the down payment. Jerry was told that all he had to do was use his perfect credit to qualify for the loan and then sit back, wait seven years and the money would come rolling in.

Smooth Talker also promised that the two of them would do more deals and Jerry would make over $100,000. What Jerry did not know and he would not figure out until 3 years later was that Smooth Talker had no intention of splitting anything and Jerry could kiss his perfect credit goodbye. 3 years ago, Smooth Talker had Jerry and two other buyers, buy three buildings, located on one street. The buildings cost $150,000 each. Smooth Talker put up $1,500 down payment for each property, while at the same time, telling the buyers that he was putting in $12,000.00 for each. There was an unexplained difference of $10,500 each.

Smooth Talker also collected a $9,000 Real Estate commission on each. Smooth Talker also agreed to take the building in as-is condition, with no inspections and without requiring the seller to make any repairs. There were, unknown to Jerry $10,000 worth of air-conditioning as well as other work. Smooth Talker had those other two buyers borrow from the Federal Government a remodeling loan of $48,000 to make the needed repairs. When those other two buyers each got their loans, Smooth Talker took all the money and said he spent it on Jerry's building. Let me clarify that. Smooth Talker stole the money from the other two investors, telling them he used it on Jerry's building. That is still stealing. My research later showed that he did almost no repairs to any of the buildings, and what little repairs he did have done, were not even paid for.

Smooth Talker cheated the poor workers out of their pay. No one could ever understand what he was doing. He even collected rent, pocketing any cash. When the buyers wanted an accounting. Smooth Talker wouldn't even supply it. When I came on the scene and demanded, as a matter of law, an accounting of what was received and spent. Smooth Talker didn't have any proof of what happen to all the money.

Jerry wanted out of the partnership but Smooth Talker didn't want the building sold; but he did want to make sure he got his due, if it was. He gave me a statement showing that he had put in $34,000 (which was not true) into the building and wanted that before any split of profits. This would of left Jerry receiving $5,000 and Smooth Talker making $46,400 on the whole deal.

To avoid being in this kind of a situation, I advice the following, before doing any sort of real estate deal; a) Evaluate your risk. What is your downside? Have a real estate expert study the deal. b) Set up operating and reporting guidelines with your partners. Put everything in clear English. c) Have everything reviewed by an attorney or an accountant. d) Choose your people partners with care.

About The Author

Willard Michlin is an Investor, Business Broker, California Real Estate Broker, Accountant, Financial Distress Consultant, Well known Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at kismetrei@earthlink.net

See other article by Willard at http://www.kismetgroup.com

kismetrei@earthlink.net

Writen by Mark Nash

Home buyers have many worries when purchasing a home, especially if it's the first time. After finding the dream home , reality can set in after a property inspection has been completed. A hot water heater near the end of it's useful life, a furnace that runs but hasn't been properly serviced and a dishwasher that could have a mind of it's own can make for some sleepless nights for home buyers before they sign the mortgage papers.

Home warranties offered by many national companies can make for restful sleeping by new home buyers. These warranties can be purchased by either the buyer or a seller of a property. They typically run for one year and can insure against unexpected repairs on a homes appliances and mechanical systems. Mark Nash author of four books including his latest 1001 Tips for Buying and Selling a Home and as a regular columnist for RealtyTimes.com. explains why a home warranty might be right for your new home.

-Costs for one year of coverage range from $350-$1,000, depending on size of home and optional coverage chosen.

-The typical standard coverage is for these items: Heating system, heat pump, air conditioning/ cooler, ductwork, plumbing system, sump pump, whirlpool tub, water heater, electrical system, exhaust fan, dishwasher, garbage disposal, built-in microwave oven, range/ oven/ cooktop, trash compactor, garage door opener and ceiling fans.

-Optional coverage includes: Washer/ dryer, refrigerator, water well pumps, swimming pool and spa equipment.

-If you need to make a claim with your home warranty provider, there is always a fee for a service call, typically less than $75. You must use contractors provided through the warranty provider.

-Home warranty companies provide 24/7 toll-free numbers to request service. If they service repair work fails the warranty company will repair work at no cost for 90 days on parts and 30 days on labor.

-Read the fine print carefully before buying a home warranty. They cover some parts of the above mentioned systems and appliances but not all and not in every situation. Example: Most warranties cover dishwashers entirely except for racks, baskets and rollers.

-Home warranties cover only single-family resale homes and not new construction.

-Warranties are renewable at the one year expiration date, typically these warranties begin the day of closing or escrow.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, Associated Press,CBS The Early Show, Bloomberg TV, Bottom Line Magazine.CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, MarketWatch, HGTVpro.com, MSNBC.com, Smart Money Magazine,The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Mark is regular columnist for RealtyTimes.com, a contributing writer to BrokerAgentNews.com, PrincipalBroker.com and Realtor Magazine Online. His concise tip articles are syndicated on many real estate blogs including L..A.'s Best Real Estate Web log. He is a member of the National Association of Real Estate Editors, National Association of Realtors(R) and frequently speaks on residential real estate issues and trends through ExecutiveSpeakers.com.

Writen by Kris Bickell

Buying a home is one of the most stressful – and exciting – events most people will ever experience.

If you've never bought a home before, hiring a realtor to help you through the home buying process is practically a must!

Even if you've gone through the home buying process before (especially if you've gone through it before) you know that it is a good idea to hire a realtor to help you find your new home.

There are so many details involved with purchasing a house, that having a realtor to help you remember them all will minimize the chances that you will "get taken for a ride". Housing prices right now are the highest they've ever been – so even a small mistake or misunderstanding can be VERY costly!

Here are 3 good reasons to hire a realtor (and NOT the same one selling the home!) to help you buy a home:

1) It does not cost you, the buyer, anything. While most realtors will ask you to sign a contract, there is usually no cost involved. If you are asked to pay a small fee, ask that it be waived, especially if this is your first time buying a house. But having a realtor help you avoid just one mistake could save you a SIGNIFICANT amount of money!

2) The advice of a professional is often very valuable. Buying real estate can be very complex – not knowing all the rules can put you at a disadvantage. Plus, having an extra set of eyes and ears to help you look out for problems (and opportunities) can make a BIG difference.

3) There are many steps involved, and when you are excited about a house, it's easy to miss a step. Or make an offer that is too high (or too low). Or forget an item you wanted to negotiate. One simple mistake can easily cost you hundreds, even thousands, of dollars. And once contracts are signed, it is often too late to go back and fix something that was missed.

Sure, you can learn a lot about buying real estate from books and manuals found in your local bookstore and online:

• House hunting
• Making a reasonable offer
• Inspecting the house
• Negotiating
• Signing the paperwork

But once your emotions get involved – and your bank account – the home buying process can get very hectic. So having a realtor, one who know what you are looking for, and who knows the "ins" and "outs" of the process, is a step you should not pass over!

Kris Bickell is the owner of http://www.HouseBuying-Tips.com, a site that helps first time home buyers avoid the costly mistakes that many new homebuyers make. For more tips on buying a house, getting a mortgage, and finding a realtor, sign up for the free "How To Avoid These 10 Costly Mistakes When Buying Your First Home" email course at: http://www.HouseBuying-Tips.com/realtor.html

Writen by Steve Parnell

The appeal of Florida – the Sunshine State – is obvious to millions of British visitors every year. Attractive exchange rates and cut-price airfares have made this an incredibly popular holiday destination for many years. And it's no surprise that many of those holidaymakers decide to go a step further and either move to Florida permanently – or at least buy a property as a second home with a sideline in holiday rentals.

The incredible level of demand has spawned an entire industry that makes its living selling Florida property to the Brits. Unfortunately, the quality of advice and information given to these buyers isn't always what it might be, and it is all too common for the outcome to be unsatisfactory when buying property in Florida.

It seems that many people think that because there are so many similarities between our countries and the language we speak, it is safe to assume that the systems for buying property, the appropriate laws and customs that apply – will all be the same too. Of course, this is far from true and there are many potential pitfalls for the unsuspecting British buyer. However, these can all be safely negotiated with a little advance research and by selecting the right advisors to help you in your quest.

Talking of advisors, prepare to be surprised by the sheer number of different people who are likely to be involved in buying a property in Florida. From start to finish, you will be employing the services of a whole range of different agents and brokers, each of whom seems to have one very specific role to play in the process. Fortunately, you won't have to pay them all, as commissions paid by the seller fund at least some of them!

Buying property in Florida can be simple and straightforward – if you have the right people to guide you through the process and arm yourself with some basic information in advance. Never, ever make the mistake of assuming something will work a certain way because that is what would happen in the UK – and never assume that anyone will highlight the differences for you. Unless of course you have sensibly enlisted the help of someone who is specifically experienced in the exact business of helping British people buy property in Florida. That is really the only guaranteed way of getting through the process from start to finish without tears. It isn't enough to work only with people who understand the Florida system – if they don't also have some understanding of the system you are familiar with they will not know what they have to focus on to help you with the critical differences between the two.

One big difference that is often the first surprise for British buyers is the business of finding properties to look at. In Florida, you do not have to trudge around dozens of estate agents as virtually every property is listed on a central database system that is available to all Real Estate Agents (Realtors). Agents tend to work as "seller's agents" or "buyer's agents" and you should recruit the services of a buyer's agent who has good experience working with British buyers. You should be aware that most agents are self-employed and there is a fierce hierarchy of seniority within the offices they work out of. So if you walk in off the street and sign up with an agent there, you will probably be dealing with a fairly junior agent who has to serve his time handling what are usually casual enquiries. This is not the best person to act as your guide through the Florida property system. Better to seek out specialised agents beforehand who understand your situation.

The real beauty of a buyer's agent is that you don't have to pay them! The system works by having the seller pay their agent a commission for selling the property – and the seller's agent shares that commission with the buyer's agent. There really is no excuse for buying from a seller's agent as they have absolutely no loyalty or legal responsibility towards you – recruiting a buyer's agent who has a legal responsibility to advise you professionally can save you a fortune and doesn't cost a penny.

Even worse is to buy direct from a developer. Not only does the agent on a new development have loyalty only to the developer, they are only selling one set of property and so will not give you any useful guidance concerning value for money, market values and so on.

Once you have found a property that is of interest, there are Florida-specific factors to be aware of in the contractual procedure to be followed from the first expression of interest through to completion of the sale.

Something that catches out a few British buyers every year is the critical importance of date milestones in the process. This is especially the case in a fast rising market where the value of the property continues to increase during the closing process – motivating some sellers to look for a way to get out of the contract and sell at a new higher price. So, if the contract says you will have document x in place by a certain date, you must get it done on time – or risk not only losing the property but also any deposit you have already paid.

Something that is always the same, no matter where you are buying property: The three most important factors in buying property in Florida are still location, location and location! Too many British buyers are bowled over by the fact that Florida is beautiful and the sun always seems to be shining – and forget about things like schools, shops and other amenities. This may not be important to you if you don't have children, or are considering the location as a holiday home – but it might well have a major impact on the resale value if you later try to sell the property to a local family.

Don't let the potential problems scare you off buying property in Florida – simply make sure you enlist the help of people who specifically understand what British people need to know about the process. They will work with you at every stage – until you achieve your dream and are a property owner in the Sunshine State!

Stephen Parnell relocated to Florida with his family fourteen years ago and was headhunted by one of the largest US mortgage companies managing mortgage offices throughout the state before becoming an independent mortgage advisor in 1999.

Stephen is a State of Florida licensed Mortgage Broker and Real Estate Broker.

He offers independent advice to British clients on mortgage programs and trends in Florida and can also recommend qualified and experienced local Real Estate Agents throughout Florida.

Stephen has advised hundreds of British residents on relocating, investing and buying a home in Florida. He can be reached by email at sparnell@lynxbanc.com or through his company web site at http://www.lynxbanc.co.uk.

Writen by Jeanina Bartling

When you prepare to sell your home, it seems as though you're besieged by decision after decision. Making decisions are difficult at times, especially when they come in droves.

However, this is one decision that is fairly up front and simple. One reason for that is because the benefits far outweigh the negatives.

But before we get into the positives and negatives, let's find out just what a Home Warranty is.

A Home Warranty provides security against damage or loss of the major systems of a home - electrical, plumbing, heating and cooling, appliances, and more. Basic plans usually cover the basic systems, and you have the option of adding in, say, your swimming pool or your appliances for an additional yearly fee.

Different companies vary in price structure, so it's good to shop around. The yellow pages will give you listings of home warranty companies. You can also check with major heating and air conditioning companies in your area. Some of these will have contracts with the home warranty companies, and you'll be able to track them down this way.

It's always good to check out their record with the Better Business Bureau or with local real estate companies.

Okay, back to the one negative.

The one negative is that it takes a few dollars away from your net profit when escrow closes. Usually between $275 and $450 depending on whether you've added in some optional coverages.

At the same time, it's quite likely that these few dollars resulted in a quicker and more profitable sale. And time, as you know, translates into dollars

You almost always have the option of paying up front or when escrow closes..

Buyers are much more comfortable purchasing homes with Home Warranties. They know they're protected from any major break-downs, and this is a huge impetus for a confident purchase on their part.

You pay only for the up-coming year. If the new buyers wish to continue, they carry it from there. If a problem arises, the buyers will pay a deductible of around $25 to $50 to the company, and then the company will send out their approved repair companies to handle the problem.

Fear is one of the most active killers of real estate transactions. Fear of some major fix-it expense is a huge one for buyers. Eliminate that fear with a Home Warranty, and you're providing a wide open door to a quick sale.

Jeanina Bartling is a retired California Realtor and the author of "How to Decorate Your House to Sell Fast and for Top Dollar" More information on how to sell your house fast and profitably is at http://www.besure-sellhousefast.com

Writen by Jeanette Joy Fisher

A poll of potential buyers released March 1, 2006 by Maritz Research revealed that sellers ought to do more than just look after required maintenance before showing their home. In fact, decorating improvements help make a strong impact on buyers and can ultimately affect a home's market value.

The study found that although renovations can boost a home's sales price, sometimes too much unique style can decrease a home's marketability. Therefore, if you're selling a home, you should understand your profiled buyer and make changes that buyers in your price range and location want.

The study found that thirty-six per cent of potential buyers were willing to pay premium prices for homes with updated interior decoration. Surprisingly, more men than women wanted updated decor with 41 percent of men versus 30 percent of women desiring this feature. More than likely, this is because women like to decorate their own homes and men want to move in without doing any work on the house.

When asked which home feature they would pay more for, 79 percent of buyers said that they would be willing to pay more for a renovated kitchen. However, most of these buyers did not want to pay for a remodeled kitchen in a style they didn't prefer. Home sellers need to evaluate the cost of a kitchen renovation in relation to the expected price increase. Often, a though deep cleaning, painting in today's color choices, and a new faucet combined with home staging strategies give home sellers the market edge without a large cash outlay.

The poll stated that 63% of buyers preferred a higher priced home ready to move into than a bargain priced fixer-upper. Because home buyers are willing to spend more for the ideal home, but not the time or work to renovate a fixer, home sellers who take advantage of home staging can make their home feel like a "dream home" without undertaking major remodeling projects.

Although most buyers prefer a renovated home, the poll revealed that 65 percent of buyers expect to spend about $5,000 making their home suit their tastes and that only nine percent of home buyers would only buy a home that needs no improvements.

Consider your home decorating in your list of home improvements to get your home ready to sell.

Copyright © 2006 Jeanette J. Fisher

Jeanette Fisher teaches five ways to use home staging for a top-dollar sale. Understand which changes give you the highest return on your exterior and interior decorating changes. Sell your home for top dollar with real estate staging. For more information about home staging, see http://homestaging.us

Writen by Gil Strachan

Methamphetamine

There's an epidemic sweeping Ontario which represents health, safety and liability risks to Realtors, appraisers and anyone else entering homes contaminated with chemicals used to grow or manufacture illegal drugs.

Desktop meth lab

Pesticides and fertilizers notwithstanding, some of the primary risks associated with marijuana "grow houses" have been mould and wood-destroying organisms resulting from the greenhouse conditions existing in these homes. The grow house has been viewed primarily as a business or legal risk for the real estate community.

However, as the illegal production of crystal methamphetamine (meth) grows in Ontario, more of the real estate community could be placing their lives at risk trying to assess or inspect homes containing potentially explosive drug labs. According to the Ontario Provincial Police (OPP) even the leftovers of a household "meth lab" may represent a huge danger, given the variety of chemicals which could explode at any moment.

Anyone unfamiliar with a crystal meth lab could be putting their life at risk if they don't know what they're walking into.

Methamphetamine is made mostly from common household ingredients. When these ingredients are mixed and cooked together, they make a dangerous drug and potentially harmful chemical residues can remain on household surfaces for months or years after cooking has been completed. There may be serious health effects associated with these chemical exposures before, during and after the drug-making process.

Crystal meth, a highly addictive and potentially lethal drug, is a relatively new problem for the OPP. More prevalent in western Canada, crystal meth has been familiar to police in Ontario for only about four years, and the chemical processes are quite different from what's present at a more common marijuana grow-op.

Five years ago, meth labs were unknown in Ontario. Now they are a common occurance, especially in Perth County and other parts of south-western Ontario. It seems to be moving east, and it's a growing trend.

Crystal meth is made by "cooking" pseudo ephedrine with a variety of chemicals which are readily found at hardware stores, such as red phosphorous, iodine, ammonia, paint thinner and lithium from batteries.

There have been no known incidents of injuries caused in Ontario by exposure to crystal meth labs, but police officers south of the border have suffered serious injuries dealing with substances such as propane, starter fluid and drain cleaner which are used in the drug manufacturing process.

Weapons are very common in meth labs. People who use meth are very paranoid about everything. They are worried that they will be caught by the police and will use any means to not get caught.

As production expands to other parts of the province, anyone unfamiliar with a crystal meth lab could be putting their life at risk if they don't know what they're walking into.

Identifying a meth lab - what to look out for.

Here's a checklist of common signs of meth manufacturing inside and outside a house:

* Strong smell of urine, or unusual chemical odours like ether, ammonia or acetone.

* Windows blacked-out, traffic at odd hours, people going outside to smoke.

* Signs of chemical burns and spills - dark red phosphorous stains in the sinks, toilets or bathtubs, or red staining on the interior walls, countertops and flooring.

* Visible areas in the yard where chemicals have been dumped, or burn pits with chemical container remains, dead or dying vegetation.

* Packaging or containers from large quantities of cold medicines.

* Jars containing clear liquid with a white or red-coloured solid on the bottom, jars with shiny metallic purple crystals inside, bottles or jars with rubber tubing attached.

* Glass cookware or frying pans containing a powdery residue.

* Coffee filters unused and used with red stains, white paste or small amounts of shiny white crystals in them.

* Soft silver or gray metallic ribbon (in chunk form) stored in oil or Kerosene.

* Propane tanks with fittings that have turned blue or green.

* Excessive trash with large amounts of the following: alcohol, benzene, toluene/paint thinner, Freon, acetone, chloroform, camp stove fuel, starter fluid, anti-freeze, anhydrous ammonia, Heet, white gasoline, phenyl-2-propane, phenyl acetone, phenyl propanolamine, iodine crystals, red phosphorous, black iodine, lye, Drano, muriatic or hydrochloric acid, battery acid or sulphuric acid, Epsom salts, batteries/lithium, sodium metal, wooden matches, propane cylinders, hot plates, ephedrine, pseudo-ephedrine, cold tablets, bronchodilators, energy boosters, rock salt, diet aids

Police advise against entering a house exhibiting any of these signs because it could be a crime scene, and even more importantly, it could be hazardous to your health and safety. They recommend reporting any suspected meth labs to the local city or provincial police detachment.

If you suspect a meth lab, leave at once and report it.

* Do not open any coolers.

* Do not touch any items.

* Handling methamphetamine waste residue can burn your skin and eyes, and breathing in the gases can send you to the hospital.

* Handling these chemicals with unprotected skin, or getting the dust in your eyes can cause serious damage.

To avoid the possibility of fire, explosion, death or serious illness, only trained and properly equipped workers can dismantle a lab and take the remnants away for disposal, usually in sealed 55-gallon drums.

Every pound of methamphetamine produced creates anywhere from 5 to 7 pounds of waste. Waste products include solvents and corrosives. Cleanups of labs are extremely resource-intensive and beyond the financial capabilities of most jurisdictions. The average cost of a cleanup is about $5,000 - but some cost up to $100,000 or more.

If you require immediate assistance please dial 9-1-1 or *OPP on your cell phone.

To report a crime or occurrence in your area, do one of the following:

* Call the OPP 24 hour toll free telephone number 1-888-310-1122.

* To communicate via a telephone device for the deaf (TDD/TTY), the number is 1-888-310-1133.

* Call Crime Stoppers at 1-800-222-Tips (8477).

Copyright Gil Strachan - All rights reserved.

Gil Strachan is a professional home inspector, representing Electrospec Home Inspection Services in east-central Ontario, Canada since 1994. Visit http://www.allaroundthehouse.com to learn more about home inspections.

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What is Real Estate