|
September 27th, 2011 -- by admin
|
|
Hey what’s going on guys? As real estate affordability falls, rentals come up. Now would be a great time, especially in the Bay Area, to make some well deserved money. After all, you didn’t walk away from your multiple mortgages. You deserve it.
The following is courtesy of SFGate:
As the cost of maintaining your rental property rises over time, you may need to raise the rent you charge. But before you raise the rent, you will need to take several things into consideration.
First, do your tenants have a clause in their lease that ensures the rent will not be raised during the course of the term of the lease? If your lease agreement contains this clause, you will not be able to raise the rent amount for your property until the period of the lease has elapsed. This is also a concern for new landlords that have taken over ownership of existing rental property. You must honor the terms of the lease for your new tenants, even if the rent amount does not cover your expenses.
When the lease is up for renewal, you can try to negotiate a rental increase with your tenants. Some of them may be willing to pay more, but be prepared for some percentage of tenants to balk at the increase and maybe even move out. Be prepared for this eventuality by advertising to fill any vacancies.
You will need to provide your existing tenants with enough notice that a rent increase will be forthcoming. This usually means a 30-day notice, but may differ according to state or local law.
Some states and many cities have enacted rent-control measures to prevent landlords from overcharging their tenants. If your state or city has a rent-control law, you are limited in the amount of rent you may legally charge your tenants. Before getting embroiled in a legal battle, make sure that you are complying with all applicable rent-control laws.
You will also need to make sure that the local housing market will support your demands. Research other rental properties in your area before making your decision. If the majority of the properties are charging much less for rent, you probably will not be able to attract new tenants — or even retain your existing tenants.
Gradual rent increases generally go over better than large one-time increases. For example, you may need to raise the rent $100 per month to make a profit. However, a $100-a-month jump may frighten your existing tenants and keep new tenants away. Instead, try raising the rent just $25 per month for the first six months, and then another $25 for the remaining six months of the year. This may help reduce your vacancy rate and maintain your property’s profitability.
Do not be afraid to negotiate with a good tenant if they cannot meet your new rent amount. Good tenants can be hard to find, and you should be willing to bend a little to keep them. You may be able to trade services for the rental increase amount, such as lawn care or odd jobs on the property.
If you do decide to make an exception for a good tenant, you may open yourself up to accusations of favoritism. To protect yourself from such claims, document what the tenant has promised to do in exchange for a decrease in rent.
If your tenant does offer to provide services in exchange for a decrease in rent, make sure that they actually do provide the services. If you are an absentee landlord, this can be difficult to follow up on, and your tenant may be counting on this. Take the time to check on their work before letting them slide on their rent responsibilities.
Landlords that do allow a trade of services for rent must still need to claim the entire amount of the rent as income on their tax returns. For example, if you charge $500 a month in rent, but your tenant pays only $450 and mows the lawn, you must claim the entire $500 amount as income since you are receiving a service in exchange for that $50. But, you should be able to deduct the $50 as a property expense. Check with your tax advisor to clear up any tax issues before taking this step.
Stay tuned for more updates!
Today’s post is brought to you by the folks over at Room Lender dot Com. Check them out if you are searching for holiday rentals instead of the same old hotels.
If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
Tags: Alex Leigh, Raising The Rent of Your Rental Properties
Posted in Investment Properties | No Comments »
|
September 19th, 2011 -- by admin
|
|
Hey guys, here I am again giving you another thing of value. And of course, the thing comes in the form of information! Enjoy.
Courtesy of Associated Press
By DEREK KRAVITZ, AP Real Estate Writer
The U.S. homebuilders’ outlook worsened in September, as foreclosures and anxious buyers hurt construction and sales activity.
The National Association of Home Builders said Monday that its index of builder sentiment in September fell to 14 from 15. The index has been below 20 for all but one month during the past two years.
Any reading below 50 indicates negative sentiment about the housing market. It hasn’t reached 50 since April 2006, the peak of the housing boom.
Last year, the number of people who bought new homes fell to its lowest level dating back nearly a half-century. Sales this year haven’t fared much better.
Builders are struggling to compete with foreclosures, which have made the price of re-sale homes more competitive. Many buyers are having difficulty obtaining loans or meeting higher down payment requirements. Low appraisals are scuttling some deals after contracts have been signed and some would-buyers who want to purchase a new home can’t sell their old one.
David Crowe, the group’s chief economist, said a weakening U.S. economy and high unemployment has made the short-term prospects for the homebuilding industry “fairly bleak.” The low indexes reflect “builders’ awareness that many consumers are simply unwilling or unable to move forward with a home purchase in today’s uncertain economic climate.”
While new homes make up a small portion of sales, they have an outsize impact on the economy. The builders’ trade group says each new home built creates an average of three jobs for a year and generates about $90,000 in taxes.
Separate gauges of current single-family home sales and foot traffic of prospective buyers each fell two points, to 17 and 11, respectively.
An index of builders’ outlook in the Midwest rose one point to 11. In the Northeast and South, the index fell two points to 15 and in the West it fell three points to 12.
Diversify folks!
Today’s post is brought to you by the folks over at Digital Science Fiction dot Com. Please check out their latest addition to science fiction books, Pressure Suite – Digital Science Fiction Anthology 3, available now in all popular ebook formats.
If you enjoy all original science fiction stories, check out their third release in Digital Science Fiction Anthology series. They were first published in September of 2011 and include professional fiction writers. Each story is between 3500 and 7500 words in length.
For more info, log on to: http://digitalsciencefiction.com/pressure-suite-digital-science-fiction-anthology-3/
If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
Tags: Alex Leigh dot Net, US home builder outlook worsens in September
Posted in Investment Properties | No Comments »
|
July 1st, 2011 -- by admin
|
|
Hey, what’s going on folks. Below is a reprint courtesy of SfGate of rigging foreclosure auctions. I want you to read it first before I tell you why I reprinted it.
Eight Bay Area real estate investors agreed to plead guilty to rigging foreclosure auctions in Alameda and Contra Costa counties, the Department of Justice said on Thursday. The investors’ actions suppressed competition for properties, keeping their prices noncompetitive, it said.
The felony charges, which result from a joint investigation by the Justice Department and the FBI, said the investors conspired to refrain from bidding against one another at public courthouse-steps auctions, which are the final stage in the foreclosure process. The investors then “would hold a secret, private auction at which each participant would bid,” the Justice Department said. The price difference between the public and private auctions “was the group’s illicit profit, and it was divided among the conspirators, often in cash.”
Foreclosures have multiplied with the housing downturn, creating a playing field for this type of activity. In California, lenders repossess homes that are in arrears on their mortgages by selling them at public auctions on county courthouse steps; hundreds of such auctions occur every weekday throughout the state. Many homes do not generate a bid and thus become the lender’s property; others are bid upon by real estate investors.
“While the country faces unprecedented home foreclosure rates, the collusion taking place at these auctions is artificially driving down foreclosed home prices and is lining the pockets of the colluding real estate investors,” said Christine Varney, assistant attorney general in charge of the Department of Justice’s antitrust division, in a statement.
Gina Talamona, a spokeswoman for the DOJ antitrust division, said the probe is ongoing.
“The antitrust division and FBI continue to investigate real estate foreclosure auctions and will continue to look at anticompetitive conduct” there, she said.
The investors were charged with various counts of bid rigging to obtain selected real estate, which carries maximum penalties of 10 years in prison and a $1 million fine, and mail fraud, which carries maximum penalties of 30 years in prison and a $1 million fine.
Charges were filed on Thursday in U.S. District Court for the Northern District of California in Oakland against Thomas Franciose of San Francisco, William Freeborn of Alamo, Robert Kramer of Oakland, Thomas Legault of Clayton, David Margen of Berkeley, Brian McKinzie of Hayward, Jaime Wong of Dublin, and Jorge Wong of San Leandro.
The actual pleas and sentencing would happen at a future date.
Franciose, Freeborn, Margen and Legault did not return calls for comment. Kramer declined to comment. McKinzie, Jaime Wong and Jorge Wong could not be reached.
Now, I did not show you this to show you how the rich are getting richer, or how shady these people were. This shows that there is still money to be made in real estate!
Now that these people are being brought to justice, perhaps this will scare the usual monopolies to ease up a bit to allow us laymen to get in on the action. If you have been saving those hard earned dollars, perhaps now is the time to become a slumlord – er, landlord!
Today’s post is brought to you by the good folks over at Palm Day dot Com. Have you ever wondered what your future looks like? Do you wish there was a crystal ball that could tell you how much money you will have, where your love life will be, or if you will be stuck in the same dead end job in ten years? Or, have you asked, how do I read my own palm?
There are three popular avenues that are commonly used to inform interested individuals of what their future holds for them. A psychic reading, tarot reading, or palm reading could all give one the information they are looking for to continue down their current road or drastically change the way in which they are heading. Check them out if you are interested!
If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
Tags: 8 in East Bay Admit to Rigging Foreclosure Auctions, ipm
Posted in Investment Properties | No Comments »
|
January 14th, 2011 -- by Alex Leigh
|
|
What’s going on guys? Yes, it’s still happening. Nothing new. As many Americans begin to realize that it will be years before their houses are worth what they owe on them, the idea of walking away from your mortgage is going mainstream. Still. It’s just not news anymore.
Not surprisingly, the mortgage industry is doing everything it can to prevent this, including telling homeowners that they have a “moral obligation” to pay. Desperate huh?
Is it okay to walk away from your mortgage for no other reason than it doesn’t make financial sense to keep throwing your hard-earned money away?
Most importantly, the reason is not that “Wall Street deserves it” or “We’ve got to teach the banks a lesson” or any of the other bogus “retribution” logic being thrown around. The reason is that you and your lender engaged in an arms-length transaction in which you balanced your competing interests and spelled out your agreement and obligations in a clear contract. And unless that contract states that you have a “moral obligation to pay,” you don’t.
When you borrowed money to buy your house, the bank or mortgage-lender evaluated the risk of the transaction and concluded that the risk of your not paying was a risk worth taking. To protect its money, the lender also required that you pledge the house as collateral, and it required you to have some equity in the house as an additional cushion. In the event that you didn’t pay, the lender retained the right to seize the house, sell it, and pay itself off before you got your equity. The lender loaned you the money because it concluded that this was a smart business decision.
You, meanwhile, also made a business decision. You decided to borrow money to buy your house even though it meant risking your equity, home, and credit rating. A bad one, on your part.
Fortunately, you don’t have to fight about what happens next. The contract spells everything out: If you stop paying, the lender gets the house. That’s it. Unless the contract specifically differentiates between a failure to pay based on hardship and a failure to pay based on a collapse in the value of the house, there’s no difference.
Now, compare this to a situation in which you DO have a moral obligation to pay: When you borrow money from a friend at no interest, for example. THAT is a moral obligation to pay. In this case, your friend did not lend you money to make a profit. Your friend loaned you money as a favor, with no collateral or contract.
And here’s another way of looking at it: If you have a “moral obligation” to pay your mortgage, doesn’t the bank have a “moral obligation” to keep you in your house? After all, they loaned you the money to buy it, got your hopes up, moved your family, etc.
Just because you don’t have a moral obligation to pay your mortgage, of course, doesn’t mean it’s smart or even the right thing to walk away. In fact, the best solution would likely be for you and your lender to compromise using a loan modification. That’s what companies often do. Also, abandoning your house can screw your neighbors. And you may live in in a state with “recourse” laws, in which your mortgage lender can go after other assets.
But don’t let the mortgage industry guilt you into paying from some “moral obligation.” You both made a business decision. It turned out to be a bad one. That’s why you have a contract.
See you in seven.
Today’s post is brought to you by the good folks over at Xbox 360 Repair. They want you to know that many Xbox problems can be easily solved at home, without costly repair.
Don’t fear the xbox 3 red rings. Check out their site for common fixes, and help to get gamers get back up and running quickly without weeks of downtime.
If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
Tags: Alex Leigh, Walking Away from your Mortgage
Posted in Investment Properties | No Comments »
|
October 21st, 2010 -- by Alex Leigh
|
|
What’s going on guys? I came across the city of Wilmington, North Carolina trolling around the internet the other day. So, I decided to do some research about the place. Turns out, CNN and Money Magazine voted Wilmington, North Carolina the 7th best place to buy real estate!
With money so tight these days, I am always looking for an opportunity, however small, to invest in real estate. Here’s what I found out about the city.
Over the past decade, Wilmington, North Carolina has become a popular target for real estate investors, retirees and families relocating due to its growing economy, temperate climate, popular university, and beautiful coastline.
While the median price of a Wilmington home has dipped slightly in recent history, ($226k in 2006 compared to $207k today), the area still offers fantastic opportunities for those who have the patience to buy and hold.
Wilmington’s industrial base includes electrical, medical, electronic and telecommunications equipment; clothing and apparel; food processing; paper products; and pharmaceuticals.
Important to Wilmington’s economy, is also tourism, due to its close proximity to the ocean and vibrant nightlife. Film production also plays an important role in the city’s economy. Wilmington, North Carolina was #2 in the Nation in a national study for 2007 projected job growth.
As of the census of 2000, there were 75,838 people, 34,359 households, and 17,351 families residing in the city. The racial composition of the city was: 70.57% White, 25.82% Black or African American, 2.63% Hispanic or Latino American, 0.90% Asian American, 0.35% Native American, 0.09% Native Hawaiian or Other Pacific Islander, 1.14% some other race, and 1.13% two or more races.
So, if you like the demographics, check out some homes for sale in Wilmington, NC right away. Companies like BlueCoast Realty Corporation can really help. You can go to the website and search for properties by map, subdivision, and property type. They are linked to the MLS, so you dream home, or investment property are just a few clicks away. See you in seven!
If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
Tags: Alex Leigh, Wilmington North Carolina Real Estate
Posted in Investment Properties | No Comments »
|
|
DandyID
MySpace
YouTube
Facebook Pages
