What is Real Estate

Writen by Mark Walters

Do you realize that you might be prevented from renting your investment home? Prohibiting property owners from leasing their properties is a trend that is growing increasingly popular with some developers and many Homeowners' Associations (HOA).

It's rare that you can buy a new home in a development that does have a HOA. As a homeowner you are bound by the HOA restrictions found in the Covenants, Conditions and Restrictions (CC&Rs).

The CC&Rs regulate your use of your property, restricting everything from the color of the house, window coverings, holiday decorations, sports courts, pets, to landscaping and etc.

One of the most recent restrictions that builders are including in their CC&Rs is a restriction that prohibits the homeowner from leasing their property. Builders have a provision in their sales contracts stating that the home will be a primary or secondary residence and that the purchaser will occupy the home. The owner is strictly prohibited from renting the home.

Why this trend? The idea is to limit the number of rentals in a subdivision because lenders believe that a high number of rentals in a community affects the value of the property and can erode the security of their loans.

Existing HOAs like the idea of no rentals and there seems to be a growing movement to amend their CC&Rs to add the "no leasing" provision.

Investors Beware!

The new homebuyer should be made aware of the no leasing restriction when they buy. But what about the investor who buys a home a few years later? If the investor fails to read and understand the CC&Rs he or she may end up owning a property that they cannot rent.

You can't count on the home seller alerting you to the restriction. They may be the third or fourth owner of the home and not even be aware of the restriction.

Oh sure, you could buy the home, rent it and hope you are not discovered violating the CC&Rs.

However, anyone who has ever dealt with a HOA soon discovers that there are always a few other homeowners with an eagle eye out for the slightest infraction of the CC&Rs. They delight in notifying the HOA management company,,, and the management company is bound to investigate and enforce the rules. For you the investor is no appeal... and there is no recourse.

This is a strong reminder that every investor should have a clause in every purchase contract that says the purchase agreement is contingent upon you receiving, reading and approving a copy of the CC&Rs.

This is a potential ulcer-creating situation that no investor can afford to ignore.

Mark Walters is a third generation real estate investor and he shares his experience from his Web site at: http://www.cashflowinstitute.com

Writen by A. Greg Dickerson

It is very important to choose a builder early on because you will be in a business relationship, a partnership really, for the next year or so depending on the scope and stage of the process you are in. You owe it to yourself and your family to make sure you choose someone you can trust and rely on as well as someone with the experience to get the job done right.

This is crucial because the right builder can save you thousands of dollars by guiding you throughout the entire process. For instance when you are choosing a site there are lots of things you need to watch out for that could be very costly down the road. The materials you choose can make huge difference in terms of costs and energy savings as well as down the road repairs and maintenance. The way the home is designed can cost you a lot of money unnecessarily if you don't have the proper guidance and finally the type of loan you choose can make a really big difference. This one consideration alone could potentially cost or save you hundreds of thousands of dollars over the life of your loan.

Building a custom home is a very big undertaking. It can be one of the most difficult and stressful ventures you ever take on or it can go very smooth and be one of the most rewarding experiences in your life. There are hundreds of details that need your attention and lots of opportunity for things to go wrong. Having an experienced dedicated custom home builder working for you is key. This will make or break your experience.

When you build a custom home you are dealing with a lot of variables that are out of your control like materials suppliers, sub-contractors and local municipalities. Each of these entities will do the best they can to help get the job done but they are all independently owned and operated and they all have their own agendas to accomplish. Add weather to the mix and things can get pretty interesting. You need a builder that knows how to work the system and that has a positive working relationship with these entities. Your builder should use only the best sub-contractors and suppliers in the area and they should have a proven track record for quality and financial success. You need a custom home builder not a spec or trac builder that only does things there way. Your builder should be open to your ideas and suggestions but they should also have the experience to guide and advise you every step of the way.

Greg Dickerson has gone from zero to millions by investing in real estate. To hear his incredible story check out the hottest real estate investing web site on the internet today!

Writen by Steve Majors

Most people get involved in Real Estate investing to make money.

Pretty self-evident - or, is it?

What would you say if I told you that everything you have been taught about Real Estate investing and making money "rehabbing" your real estate investments is wrong?

Well, at least, much of it!

Let's take a look at something that all too many people don't think about in their real estate investing - something that seems to be a secret formula to bringing in the most cash from your real estate investments.

While it is often true that the total price of a property that has had a lot of work done on it is more than one that hasn't, what has that "price difference" really cost you, the Real Estate Investor?

With enough time and effort, we could go through dozens of scenarios to figure out just what a loss of time, money and effort it is to go through a house and "rehab" it, but let's keep it short and talk about some things that really happen in real estate investments - a "reality check" if you will...

I like to be sure to get everything out of a real estate investment that is possible, but, there is a balance between the Time, Money, Effort and Appreciation the customer will get out of what you put in, as opposed to what they would rather do themselves...

And they are willing to pay you for the privilege!

I call this the "M-E-A-T" of a real estate investing deal, and it is a simple equation you can apply to all your real estate investments.

In the table below, look at the M.E.A.T. result for each Function.

____Function____ _M_ _E_ _A_ _T_ _Total_

Painting (full) _2_ _5_ _5_ _6_ __18__

Kitchen Redo _7_ _4_ _3_ _6_ __20__

Bath Redo _6_ _6_ _3_ _4_ __18__

Landscaping (full) _4_ _6_ _4_ _4_ __18__

Painting (LAZY) _1_ _2_ _4_ _3_ __10__

Landscaping (LAZY) _2_ _2_ _4_ _3_ __11__

You can see from these figures, the appreciation factor of the customer is often the same - whether you put lots of time, effort and money into this real estate investment or not.

The reasons for this are as varied as the people looking at any given house, but how many times have you heard of people going into a house - just after it was fully "rehabbed" and they turned right around and put the paint they liked throughout the place?

So, why did you waste your M.E.A.T. on doing it yourself?

Because you thought it would be prettier?

That you would get more money from it?

Because you think that's what real estate investing is all about?

I challenge you to think about this - every time you get involved in any real estate investment... Just how much more M.E.A.T. did you really get from your real estate investment - your total return?

The cash you got was more - maybe - but so was the WORK. You can sell houses just like you get them - and get 90% or more of the price you will after all that effort, even without ever seeing the place! When you use the LAZY way, you put very little extra into any given real estate investment, but raise that return by another 5% (which means that it brings in almost the same total as you get otherwise - without the added cost and work!

So, who makes more profit from their real estate investments?

Those that do less work!

Plus, there's more time, energy and money available to put into the next real estate investment - while those other folks are still remodeling their last deal! In a year's time, you can do 30-50 houses this way - by yourself!

How many can you rehab in a year - by yourself?

Now, where is the bigger profit?

By now you can see just what I meant by the training you had before being 'wrong'... You've been taught to "fix and flip" your real estate investments - but, unless you are doing the fixing directly at the request of the end user, you are likely wasting your time, money and effort for no additional appreciation factor, so, overall, you are wasting it for nothing.

You are throwing away the M-E-A-T of the deal!

Just how much did painting that living room in your last real estate investment cost you? Since you missed another deal that might have $20,000, $30,000 or more in it, I would suggest you spent a LOT on it!

Think about this before you start your next real estate investing "rehab" project - just how many other deals could you do if you didn't put all your time in on fixing?

Then, add on the energy (effort) that it saves you.

Most people think about the money part of real estate investing, but leave out the rest of the equation when calculating the total value of their real estate investments.

I think that is a big mistake.

When you can get 90% or more of the same price from any given real estate investment, but do 1% or less of the work, keep 95% of the energy for other projects and 95+% of the money it would cost you - why would anyone want to do any "rehab" job - ever - in their real estate investing business?

Now, there may be times you find a house you want to live in that needs some work. That is a fine time to consider doing a "rehab" job - you aren't doing a real estate investment (other than for appreciation), but any time you are working your real estate investment business, take a serious look at the M.E.A.T. of the deal - before committing to spending all your time, money and efforts.

Steve Majors - The Lazy Investor
Profit from Real Estate Investment Articles, Real Estate Investing Information & News from One of The Most Creative Investors On The Planet ~FREE MEMBERSHIP & Real Estate Training Course~ http://SteveMajors.com

Writen by Jeanette Joy Fisher

Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder--why do people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it's possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It's true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don't normally qualify for no money down financing. Institutional lenders aren't supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, "the seller" is not the right answer! Today's sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that's been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn't happen.

Today, another real estate investment scam is popular in Southern California. Here's how it works: a young person we'll call Charles charged $4,000 on his credit card to hire a real estate "mentor," after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Charles to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Charles had given him the addresses, the mentor obtained the owner's address and sometimes a phone number. Then it was up to Charles to call the owners and talk them into selling their houses for no money down, and carrying the paper (mortgage), too!

I met Charles when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Charles and listening to his frustration about trying so hard to follow his mentor's advice, I offered to help him find a property, and I'm happy to say that Charles now owns his own home. But he'll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Charles did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you've purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don't pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They're a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today's real estate market.

Copyright © Jeanette J. Fisher

Get started today making money in real estate without worries about the "pending" real estate crash. Free real estate investing business plan from Jeanette Fisher and free ebook, The Truth about Making Money Flipping Houses: http://doghousetodollhouse.com

Writen by Mark Nash

Moving is like life, what you make it. Organization in packing and moving can save you time and limit stress at the end of an long process that transitions you into or out of your home. It's easy to delay the laborious task of getting three moving company quotes, finding temporary storage and deciding what to move, donate and throw away. Even the throw away items might need special attention such as paint, old gasoline or computers. As an experienced real estate broker who has seen the right way to move and the all-nighters the last five nights before moving, I can tell you it's much easier on relationships and pets to become proactive in the moving department of your next residential real estate transaction.

Mark Nash author of 1001 Tips for Buying and Selling a Home offers your readers or viewers streamlined tips to make even the most disorganized person have a lower stress experience. Moving day is not packing day, rental moving trucks are in big demand all the time and what's behind you isn't ahead of you should be your mantra for your next move. Put those last three statements on a piece of note paper on your refrigerator as soon as you have a closing date on your home.

- Plan ahead for your move five weeks before moving day. Begin pricing and cleaning items for garage sale. Register children in new school. Verify with insurance agent that your possessions will be covered during your move. Obtain new homeowners and automobile insurance in your destination community.

-Research how moving costs for national moves are calculated. Weight of shipment. Time involved in transport of household goods. The cubic footage of the shipment. Any combination of the above.

-Research moving days and times that are the least popular. Weekdays. September through April. First three weeks of a month.

-1 Month before closing or lease expiration. Fill out change of address order form for the post office. Make moving company appointments for bids or reserve rental truck. Make travel arrangements for you and your family, pets Obtain medical records, including dental, eye, and prescriptions. Set up savings and checking accounts in your new community. Inventory household belongings. Create a photo or video record. Record serial numbers. Start using up inventory of household products and non-perishable food.

-2 Weeks before moving. Inform utilities at current address of disconnection date and forwarding address. Order utilities in destination city. Electric, disposal, newspaper, magazines, telephone, cable, Internet, gas. Confirm travel reservations. If moving out of a condo or apartment building reserve elevator. If moving into a condo or apartment reserve elevator. If moving into condo pay moving in deposit if required by association. Clean rugs or carpets if required by contract. Close bank accounts. Visit and close safety deposit box. Make copies of important documents. Verify insurance coverage during transition from one property to another. Purchase new coverage in destination city. Homeowners and auto. Defrost freezer and deep clean freezer and refrigerator. Send email change of address to family and friends.

-Learn how to move your computer. Make backup copies of all your files. Store and move original program and backup disks separate from your computer. Prepare your hard disk for moving by placing in park and lark position. Pack your computer in the original box and materials. Remove ink cartridges from printer. Insert piece of paper in platen to secure.

-Moving day. Clean house, hire cleaning service if it is too much to do yourself. Check closets, cabinets, basement, and attic one last time for missed items. Carry valuables with you during move. Make sure you have extra cash or traveler's checks for emergencies during move. Leave welcome note for new owner or tenant.

-Arriving at your new home. Renew auto related registrations, including drivers license. Find services that you will need in your new community. Day care, veterinarian, doctors, hospitals, train/bus, police/fire stations, and lawn/pool services.

-Remember to create an essentials kit for your family that goes with you in transit. Change of clothes.Towels.Over-the-counter and prescription drugs. First aid kit. Toilet paper and paper towels. Flashlight. Pen, pencils, and paper cups.

-Be prepared for your first night in your new home. Post an emergency phone list for your new community on your refrigerator. Change the locks. Change batteries in smoke detectors. Have flashlights handy. Check to see whether all blinds and shades operate correctly before nightfall.

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, CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor's Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Writen by Brandon Cornett

In real estate marketing terms, a niche refers to a certain segment of your audience (or perhaps your entire audience). If you market your services primarily to buyers, then buyers represent your primary niche -- albeit a broad one.

You might also have sub-niches under your main niche. For instance, buyers can be broken down into first-time buyers, second-home purchasers, local buyers, relocations, etc. Each of these groups has slightly different needs, so you wouldn't want to speak to all of them in the exact same way.

To get more out of your marketing message, make it unique for each niche:

If you want to reach apartment dwellers thinking of buying their first home, talk to them as apartment dwellers thinking of buying their first home -- not just as buyers. Offer them a first-time buyer's guide, or show them how their monthly rent stacks up against an average monthly mortgage payment in the area. Open their eyes to the possibility of home ownership.

The point of all this is partly psychological. When you segment your audience into smaller groups, you're able to present them with something they really want (because you know exactly who they are). Whereas with a general message to a broader audience, your offer will apply to some but not all. A more specific message and offer will result in a greater desire (and response) among your individual audience segments.

Practice niche marketing. Talk to different groups in different ways. Be relevant, and you'll be appreciated.

About the Author
Brandon Cornett is the author of The Modern Guide to Real Estate Marketing and the founder of ArmingYourFarming.com. Read more articles or sign up for Brandon's free newsletter by visiting: http://www.ArmingYourFarming.com.

Writen by Elaine VonCannon

Home inspections are an important part of the real estate process whether you are buying your first home, retiring to a second home or relocating to a new area. Real estate agents must work with a home inspection company that is both reputable and trustworthy. Attention to detail and knowing how to report the facts are essential to a thorough home inspection. In this article I have asked Kevin Salva of US Inspects‰ in Virginia to explain some of the basics of home inspection to help answer the questions many homebuyers and sellers are asking.

No Stone Left Unturned

Home inspection covers many areas of the house. According to Kevin, a home inspector must "objectively evaluate every angle of the home". The first consideration for any home inspection is the age of the house. New homes fall under stricter laws and regulations. Therefore, the inspector must pay attention to the safety features and be certain the home is in compliance with the current safety requirements. Older homes are only expected to meet the safety standards and regulations current in the year they were built. However, older homes must be carefully assessed for potential problems. "The structure of the house must be analyzed along with the utilities, roof and heating and cooling systems," states Kevin. "I do a number of different inspections," continues Kevin, "including termite, Radon, septic systems, private wells, and more." As a potential homebuyer it is important to know what the basic home inspection includes, and when you may need specific services such as termite, lead paint or asbestos inspection. Your real estate agent can advise you on what types of inspection are necessary.

Knowledge and Planning Lead to a Successful Purchase

Kevin suggests all homebuyers "become familiar with the average life span of particular household appliances and systems". For example, a typical heat pump works for approximately fifteen years. If you buy a home and the heat pump is fourteen years old this repair expense may come in the near future. As a homebuyer, knowledge and planning are the keys to avoiding unexpected costs and a lack of funds to complete important repairs. Kevin also believes that an experienced and reputable home inspector will offer the homebuyer a walk through of the property. This allows the home inspector the opportunity to "begin a dialogue about home maintenance" says Kevin. This dialogue will be a valuable asset to the homeowner in the future. Homebuyers should also talk to their real estate agent about home warranty programs. Many systems or appliances that are potential future repair costs can be covered by a home warranty that is renewable each year. A home warranty is a great strategy for any homebuyer, but especially for those purchasing older homes.

The Language of Home Inspection

Home inspection reports are not difficult to understand. "The body of the report talks about the systems of the home," states Kevin. The home inspector should know the difference between "a defect" and "a related item" and be able to identify these items clearly. The home inspector must speak the language of real estate so the agent can fully comprehend the report. This allows the real estate agent to advise the buyer in the best way possible. A "defect" is an issue about the home that must be addressed immediately. The buyer should expect the real estate agent to budget the repair of the "defect" into the closing contract. A "related item" is simply a typical maintenance item that the homebuyer may need to be prepared to cover now or in the future.

The relationship between a real estate agent and a home inspector is built on trust. The real estate agent knows the market and typically what items the sellers and the buyers are financially responsible for at closing. The agent understands trends in specific regions when looking at the home inspection report. They analyze the buyer's concerns and close the best deal they can for their clients. A home inspector must know the real estate business and pay attention to the details. Kevin says, "…A home inspector must provide impeccable service and do everything necessary to educate the real estate agent and the buyer about the home." To learn more about real estate topics such as renovations, homeowner's insurance or mortgages please visit my website at www.voncannonrealestate.com. For more information on US Inspect‰ contact Kevin Salva at 888-US-INSPECT or visit www.usinspect.com.

Elaine VonCannon is an award winning REALTOR with RE/Max Capital in Williamsburg, Virginia, and she specializes in retirement and relocation in the Williamsburg South Eastern Virginia area. She is an Accredited Buyer's Representative as well as a Senior Real Estate Specialist. Elaine VonCannon also works with real estate investors and home sellers. Elaine is very active in the community, and serves on two committees with the local board of REALTORS.