21 May 2019
By Kevin Gahagan

5 Ways To Find Properties For Sale That Are Not Listed Yet

Real Estate

5 Ways To Find Properties For Sale That Are Not Listed YetReal estate agents, who are successful, know that getting listings is the life energy of their business. It is boring to sit around waiting for a new client to call. It is expensive to spend extraordinary amounts of money on general advertising to get listings. Clever real estate people learn how to find properties for sale before they are listed.

Value Of Unlisted Properties

Real estate agents and investors have a competitive advantage when they find properties for sale that are not listed. These off-market properties may be available at a better price. There may have little or no other competition from other potential buyers making an offer. Real estate agents can motivate buyers to move quickly to close a deal on an unlisted property before it goes on the market.

Finding Off-Market Properties

Here are five ways to find properties before they are listed:

1. Check Tax Records

Sometimes it is as simple as looking up the current owner in the tax records, making a contact, and giving an offer. That direct approach may work well as long as enough contacts are made to improve the odds of finding a motivated seller.

2. Maintain Contact With Past Buyers

Real estate agents should always stay in contact with past buyers of a property that they sold. On the anniversary of the sale date, send a nice postcard with a handwritten note that says something like “I remembered this was the date you bought your home (or building). If you ever want to sell it, give me a call.”

3. Networking

Another technique is in-person networking with people. Join professional associations, mingle with people, and learn what neighborhood they live in. Tell them someone is thinking of moving there and ask them if they might be considering selling their home or if they know someone who is.

4. Friendly Neighborhood Scouting

Become known in a neighborhood as a buyer. When an investor likes a neighborhood, a terrific strategy is to wander around, knock on doors, and hand out business cards.

People hate someone knocking on the door who is trying to sell them something. However, they usually have a very positive reaction when someone wants to buy the home. There is no need to be shy. Walk around a neighborhood, get to know it better, and the people who live there.

5. Title Companies And Real Estate Departments Of Banks

Make friends with the staff at title companies. Get to know the people working at banks in the real estate department that handles the short sales and foreclosures. These two groups are very strong sources for off-market deals.

The staff of title companies knows when a sale fails at the last moment due to loan funding issues. Bank staff knows when new foreclosures come in before they list for resale. By moving fast, an investor takes advantage of the short gaps between the time these properties are available for sale and when they get listed.

Summary

Learning how to find off-market properties creates many benefits. Investment opportunities expand for real estate investors and real estate agents create more listings for themselves with these proactive strategies. Think of this as a treasure hunt and it actually can be a lot of fun.

One of the best ways to be prepared to purchase a new property is to have your pre-approval in place. Be sure to meet with your trusted mortgage professional to discuss your financing options.

17 May 2019
By Kevin Gahagan

Inexpensive Curb Appeal Tips That Work

Real Estate

Inexpensive Curb Appeal Tips That WorkNo doubt you’ve been told that curb appeal will help sell your home. But if money is short you’ll need to do some curb appeal on a budget tricks.

Following are some inexpensive curb appeal tips that really work.

Fresh Coat Of Paint

A fresh coat of paint adds curb appeal without busting the budget. With a gallon of paint you can freshen up the window ledges, shutters, front door and the garage door. Add a fresh coat of paint to decks and railings, and street lampposts, as well. 

Solar Lighting

You can find inexpensive solar lighting stakes at discount stores around the country. Add these to the edges of the driveway, along the front pathway and around front hedges for nighttime curb appeal.

Metallic Paint

If you can’t afford brand new hardware for your front door, consider investing in a small tub of metallic paint. Refinish the doorknob, door knocker and the metal porch light fixtures. 

Annuals

Landscaping can be pricey, but with a couple dozen inexpensive blooming annuals you can transform your front walkway. Choose the most colorful annuals you can find at your local discount store. Plant right alongside the path leading to your front door. Fill in empty spaces in between plants with colored mulch. 

Wreath

Simply hanging an attractive wreath on your front door adds a tremendous amount of curb appeal that can be seen all the way from the road. To avoid marring the wood, use a wreath hanger that installs over the top rim of the door. 

New House Numbers

Pick up a set of brand new house numbers from your local hardware store. Hang them front and center next to your mailbox on your porch, on your mailbox post or over your garage door.

Refreshed Mailbox

Mailboxes get ignored so many times. It’s a shame because it’s easy to add curb appeal with an inexpensive magnetic mailbox cover. If you have a different kind of mailbox, consider just giving it a fresh coat of spray paint. 

Bird House

Another inexpensive way to add curb appeal is with a decorative bird house or similar lawn ornament next to your front porch. These are on long stakes that you simply push into the ground. Tick one into your hedges for a charming look.

You can complete these inexpensive curb appeal tips with a minimum of time and money. Yet, they’ll have a similar impact as if you spent hundreds of dollars. 

If you are interested in purchasing a new home or refinancing your current property, be sure to contact your trusted home mortgage professional.

15 May 2019
By Kevin Gahagan

Can I Sell A House That Still Needs Repairs?

Real Estate

Can I Sell A House That Still Needs RepairsWhen you started thinking about putting your house up for sale, you probably made a list of repairs that need to be done ahead of time. If that list was long, you might be at a point where you’re asking if it’s all worth it. Will prospective buyers really notice the little things? And even if they do, will that affect how much you’re able to get for your home?

You Can Sell An Imperfect House

Your house doesn’t need to be perfect in order to sell it. Many older homes have some issues like outdated kitchens and bathrooms or wall-to-wall carpeting that needs to be replaced or gotten rid of.

But be aware that a house in need of repair or is different than a house that needs updating. Outstanding repairs are a red flag to buyers that you haven’t maintained the home as you should have over the years. Buyers may suspect that your home needs even more repairs than the obvious issues. So first off, you might have more buyers walk away from a house in need of repair and second, you will probably get less money for your home. 

Outstanding Repairs Give Buyers Leverage

When you try to sell a home that’s in need of repairs, you give buyers leverage to get a lower price out of you. For instance, if your house needs a new furnace, the buyers might say, “Well, we’ll make an offer but it’s lower by this amount because we know we’ll have to get a new HVAC system as soon as we move in”.

That amount for the HVAC system will usually be more than what you could have paid for a new furnace before listing your home. You can almost always sell your house for more by taking care of repairs first.

One thing that real estate agents advise is to get an independent home inspection report before you sell. This will give you an official list of all the repairs that need to be done. Then you can pick and choose among which repairs you should take care of.

This also helps to avoid unpleasant surprises later on. Even though finishing repairs can be costly and time-consuming, many home sellers find that it’s worth it to do as much as possible before listing. The final purchase price often ends up reimbursing you for your expenses, if not for your time.

As you prepare to sell your current property, it’s a good idea to consult with your trusted mortgage professional about your financing options for your next home purchase.

10 May 2019
By Kevin Gahagan

The Benefits Of Developing A Multi-Use Property

Real Estate

The Benefits Of Developing A Multi-Use PropertyRenovations that create a multi-use property or the development of a new multi-use project can be a very attractive investment especially in urban areas that are undergoing redevelopment. The concept of multi-use is to make the most of the site that is revitalized or developed.

Multi-Use Projects

Typical multi-use projects have a mixture of retail space, restaurants, offices, and/or living spaces. They may include parking areas. Large multi-use projects can also become destination locations that are core improvements, which create a momentum for the gentrification of an entire area. Waterfronts, boardwalks, and walking promenades are successful as multi-use projects in many cities.

The advantages for investors in these projects include the ability to design the use of the space to maximize the return on investment (ROI). Depending on the area for the project’s construction, there may also be tax advantages.

Tax Advantages

Under the new tax laws, Opportunity Zones all across America have been created to stimulate redevelopment in areas that are distressed. The federal tax advantages include either delaying capital gain taxes or avoiding them altogether if investors hold the investments for more than ten years.

It is also possible to sell a project in an Opportunity Zone for a profit and then reinvest the proceeds under a tax exchange transaction into another investment in an Opportunity Zone and avoid paying the capital gains. Check with a competent real estate and tax attorney to learn how to set up an Opportunity Zone Fund to maximize the tax advantages.

Additionally, the financial basis used for calculating any profits on the second transaction is raised, thereby locking in the tax savings on the profits from the first transaction. This is a very effective strategy for build-to-suit developers who organize a multi-use development project in an Opportunity Zone with the intent to sell it.

State, County, And Municipal Support

Depending on the location, there may be state, county, and/or municipal support in terms of tax abatements and contribution of the land and funds for the development of a multi-use project.

Lack Of Basic Services

Another key consideration is that many Opportunity Zones lack sufficient basic services. Some neighborhoods do not even have a grocery store. A multi-use development, in a distressed neighborhood, which offers services and stores for these basic needs, is likely to experience an immediate consumer demand for the offerings.

Loans And Investment Funds For Multi-Use Projects

Lenders are more attracted to multi-use projects because of the possibility of higher average rents per square foot that will cover the monthly mortgage payments. Multi-use projects can be successfully funded by crowd-sourcing techniques as well.

Opportunities For Real Estate Agents And Brokers

REALTORS® have commission-earnings potential in the sale/acquisition of the properties for a multi-use development, leasing out the properties when developed, and selling a project upon construction completion or after being leased out.

Conclusion

The advantages of multi-use approaches as a development project are significant. There is plenty of support available in many parts of the country for these projects. REALTORS® benefit from many opportunities for commissions on each project as the development begins, the project is leased out, and then potentially sold.

If you are interested in investment properties, be sure to schedule an appointment with your trusted lending professional to discuss your financing options.

08 May 2019
By Kevin Gahagan

How to Become A Billionaire Land Trader

Real Estate

How to Become A Billionaire Land TraderTrading land like a billionaire relies on three simple premises. The first one is to acquire the land for cheap. The second one is to never intend to sell it. The third one is, if you trade it, trade up.

Howard Hughes

Billionaires that start with an inheritance have an advantage. Howard Hughes was born into wealth. His father invented an oil drill that penetrated difficult, hard rock, which made Howard Hughes one of the richest men in the world from his inheritance.

Hughes visited Las Vegas during WWII for the first time. Then, in the 1950s, he traded some parcels of desert land that he owned in Northern Nevada for 40 square miles (26,500 acres) of federal land. This property, managed by the US Bureau of Land Management, was in the northwest of Las Vegas.

Hughes died on April 5, 1976. Well after his death, this land would later become the master-planned community of Summerlin. The first family moved into Summerlin during 1991.

Vacant lots in Summerlin now sell for an average of $2 million per acre. This makes the land Hughes originally acquired by a trade of land worth a few million, equal to about $53 billion today.

Billionaire Lessons

Howard Hughes was not exactly clever. He was just greedy and stubborn. He decided to make Las Vegas his home after he came for a party in 1966. He stayed at the Desert Inn in the penthouse. After ten days, when his reservation was over, the manager asked him to leave. Instead, stubborn Hughes bought the hotel.

Next, Hughes went on a buying spree. He bought three casinos. He acquired all the vacant lots around the Desert Inn. He purchased all the vacant land on both sides of the street that became known as the Las Vegas strip. He bought the North Las Vegas airport and the land around the McCarron International Airport, which is right off the strip. Hughes’ appetite for buying things was insatiable.

The lesson learned is to buy and hold all the key land that is available. Be patient. It took 40 years for the land value in Summerlin to really take off in terms of value. Hughes did not live to see this but maybe he is laughing from his grave. One thing is certain, the desert land that, long ago, nobody but Hughes wanted became worth a fortune.

Investing In Raw Land

Investing in raw land that becomes valuable depends on just a few considerations, which include:

  • Location: Select land that is in the path of future growth.
  • Hold: Be prepared to own the land for a very long time.
  • Stimulate Development: Develop the area or encourage others to do so.

Summary

Land traders achieve success by being extremely patient. They are able to imagine the future growth of an area ahead of others. Land trading may create long-term opportunities because of the continual expansion of the population. This happens frequently around metropolitan areas in many parts of America. 

If buying land appeals to you, be sure to meet with your trusted mortgage professional to discuss investment financing options.