Follow up!

The chief complaint that I hear about Real Estate agents is they have not spoken to their client since the listing appointment.  There have been times where I have been guilty of this as well.  It happens, we concentrate on our most saleable listings, and go through the motions on the others if we do anything.
My suggestion with this complaint and others, is to establish a checklist of things the seller wants an agent to do during the term while at the listing appointment.  Physically write it out and have the seller and agent sign it.  Both parties are now on the same page.
Furthermore, for the agent, set up a schedule with checklists of all your clients.  My suggestion is that if you should call your client each Monday and Friday giving the a recap of the week or weekend.  At minimum call once a week and follow up with at least one personal email per week.  Another way to keep some form of communication is to put all your clients on a weekly newsletter list.  Just in case you forget to call or personally email one week you have communicated in some fashion.
Have a great day!

CD

Is a Reverse mortgage right for me?

What is a reverse mortgage?  Classically defined as a loan under which the homeowner receives monthly payments based on his or her accumulated equity rather than in a lump sum.  This loan must be repaid upon the death of the owner or upon the sale of the property or at a prearranged date.  Although the original mortgage need not be paid off, significant equity must be present. 

In simple terms you are leveraging your equity to get money to help you pay your bills.  In my opinion, I would discourage this action unless you are astute in investments or have no other option of paying for basic necessities.  A personal home usually is the largest equity source for people.  So, be responsible when you use this type of loan. You or your spouse must occupy the property or face the call on the loan, so if you are moved to a nursing home, you may be forced to sell the property to settle the debt. 

This article is not meant to scare you from a reverse mortgage.  It just presents itself as a buyer beware product.  This type of loan can be a life saver for some people and a nightmare for others if not properly managed.  Make sure you dot all the I's and cross the T's when you use this. 

Have a great day!

CD

Quick Buyer Tip for Beginner Investors or Seasoned Ones!

The biggest mistake I see and hear of with rookie investors is not taking into account for system/appliance failure.  Even if your inspection says everything is fine, remember that the inspection is for that day. Many appliances work well one day and don't the next.  Always have a percentage of each system/appliance budgeted into your rehab costs.  My buffer is that I budget for replacing the heating and air in each unit I buy.  Now if the heating and air does need replacing, I use a different method.  I'll budget 50% of replacement cost for all appliances in the house.  This may sound a bit expensive, but when you have to hold a flip for a while things are bound to break or fail.  If you have it budgeted, your not going to have the heartbreak you would as if you had to find another place for the cash. 

Just remember, once it sells, any replacement appliance funds that are not spent become profit.  This method should make your investing experience must more pleasurable and lessen the stress that comes with the business.

ACD

What type of Net Lease is it?

Net Lease, Net..Net, Triple Net? Who pays for what? This is an important thing to know when entering into a lease agreement or buying a property that currently is in a leasehold status.

It is a fairly simple definition. A Triple Net Lease is also known as Net Net Net Lease or NNN Lease. This is a type of net lease in which the tenant pays all or part of the taxes, insurance, and maintenance associated with use of the property. These fees are paid in addition to the tenant's regular monthly rent.
A Net would be rent plus the taxes and the Net Net would be rent plus Taxes and Insurance. This is not an absolute just a general guideline.

A NNN lease usually favors the landlord, but the landlord should still check on the property periodically to make sure that all reasonable maintenance is being preformed.

Simple Fact! Read your leases. If you don't understand something consult an attorney. Leases, as with all contracts, can have language in them that are not common place and they should be interpreted by a professional.

Remember that each lease is it's own vessel so don't assume, I've read one, I've read them all. Pay close attention and know what you are getting into.

Have a great Day!

Real Estate Acronyms

Many times I catch myself using Real Estate Acronyms that confuse my clientele. Here are a few often used terms for you to be more informed of what that agent is actually saying. A 3/2 is a 3 bedroom 2 bath. A 4/1 would be a 4 bedroom, 1 bath. A CMA is a comparative market analysis, where and agent or Broker uses a simple sales approach to establish a general market value of your property. Note:(This is not an appraisal!)

Many Brokers and Agents use these terms liberally without realizing that you are not aware of what they mean. If they use these or any others, speak up they should gladly tell you what it means and most likely apologize.

Thanks for you time and I will continue to post more as time goes on. Please send me requests of what you would like to know and I will do my best to get you the answers.

ACD

Welcome!

Good Day to all. I started this blog for Real Estate Professionals and Enthusiasts. I hope that it provides helpful information for everyone that needs it. My experiences as a Real Estate Broker, Investor, and Trainer hopefully will provide me with answers to help in your Real Estate needs. Hey, I don't know it all, but I will do my best to get you complete answers asap. Have a great day and check back each week for new Real Estate Tips and Definitions.