Thinking of Investing In Real Estate?

For all real estate investors out there I found this great article on picking a good investment property.  The author is in Australia, but it applies to the USA as well.

Buyers: The FIRST Step in Buying a Home

If you're like most people when you are ready to buy a home, you start driving the neighborhoods you like to see what's available.  And while that is definitely the fun part, the very first thing you should do is simple:

VISIT WITH A LENDER !!!

There are 4 very important things a lender will tell you:

• If you qualify for a loan.
• How much you can afford.
• Help you find mistakes on your credit report that need to be corrected.
• Give you an accurate picture of what your monthly mortgage will be (it WILL be more than just principle and interest)

Pre-qualification Letter

When you have your first meeting with the lender they will give you a pre-qualification letter to submit with your offers.  This is very important, especially if you are putting an offer on a short sale, bank owned, or HUD home.  The banks will all require a pre-qualification letter before looking at your offer.

How To Find A Lender

I can't stress enough how important it is to use a good lender because they can literally make or break a deal.  I had a deal fall apart five days before closing because the lender (chosen by the buyer) over promised what she could do.  Luckily, my preferred lender was happy to help my client out by completing all the paperwork and get it through underwriting in four days.  I know, I still haven't answered the question of how to find a lender.  I just wanted to show how important it is to use a good one.

• Ask friends, neighbors, and family who they used and if they would recommend them.
• If you already have a Realtor ask them who they recommend.
• Talk to a loan officer at your own bank.
• I always tell me clients to try and choose a lender that is close enough to drive to.  That way if there is a problem you can go to a brick and mortar office building to straighten it out.  It also helps support the local economy.

Before making a final decision, meet in person.  See their office.  Since they will be taking care of your loan, building a relationship with your lender is important!

Sellers: How to LIMIT Your Spending When Getting A Home Ready to Sell

It is common for homeowners to think that selling a home is an expensive endeavor, which may in turn cause them to hold off on putting their home on the market. From repairs to staging the process can seem overwhelming. However, with the advice of a real estate agent, sellers often find there are several ways to keep costs low and come out on top during the selling process.

Work with a seasoned professional

Real Estate Agent.Those who are unfamiliar with the selling process may try to take on everything themselves, which can lead to errors regarding documents, home staging, repairs and inspections. While many individuals initially opt for the “go-it-alone” approach to save money, working with seasoned professionals can help avoid costly errors.  Real estate agents can provide sound advice on staging a home, accepting offers, and enhancing listings to attract more buyers.

Home Inspector.
A home inspector is another asset consumers should take advantage of to save money. Buyers will likely hire their own inspector to examine a home, and if they find significant problems, they may ask sellers to lower their asking price or walk away altogether. However, sellers who discover issues beforehand and have them repaired may be in a better position to price their homes and mitigate potential problems.

Keep improvements to a minimum

Minor updates to a home can be helpful in attracting buyers. However, going overboard on updates to sell a home may not give sellers the kind of return they are expecting. For example, adding on an office addition or turning the basement into a den may make a home more appealing, but buyers may be unlikely to pay a great deal extra for it, according to the National Association of Realtors. Instead, sellers may benefit more from small touch-ups, such as repainting the home, adding new fixtures and hiring a landscaper to improve a property’s curb appeal.

Not sure where to start with your exterior? Realtor.com posted great suggestions that included:

Cheap Fixes

• Keep the lawn edged, cut and watered regularly.
• Trim hedges, weed lawns and flowerbeds, and prune trees regularly.
• Check the foundation, steps, walkways, walls and patios for cracks and crumbling.
• Inspect doors and windows for peeling paint.
• Clean and align gutters.
• Inspect and clean the chimney.
• Repair and replace loose or damaged roof shingles.
• Repair and repaint loose siding and caulking.
• In Northern winters, keep walks neatly cleared of snow and ice.
• During spring and summer months consider adding a few showy annuals, perhaps in pots, near your front entrance.
• Re-seal an asphalt driveway.
• Keep your garage door closed.
• Store RVs or old and beaten up cars elsewhere while the house is on the market.
• Apply a fresh coat of paint to the front door.

The BEST Moderate Fixes

• Replace any flooring that is worn.
• If the appliances that are staying are old and look it, replace them.
• Install new countertops and sinks in the kitchen and bathrooms.

Sellers who decide to take on moderate renovations should stick to materials used in similar homes in the neighborhood. For example, buyers may be more inclined to purchase a home if the newly-remodeled kitchen countertops are made of granite, like the neighboring homes, rather than tile.

Article taken from here.