Best Rental Investment Markets Demand Best Landlording Skills

Provided By: Realty Times

It's prime time to invest in rental property, provided you understand such an investment isn't just about money you have to burn, but also the necessary landlord skills you'll need to really make the deal pencil.


Residential real estate investment sales were 24 percent of all home sales in 2012, down from 27 percent in 2011, but still the second highest share since 2005, according to the National Association of Realtors (NAR).

NAR also said investment home prices rose 15 percent to a median of $115,000 in 2012, up from $100,000 in 2011.

Along with still relatively affordable, but rising prices, a tad fewer investors in the market, and record low interest rates, the housing market offers novices and less experienced buyers a better shot at acquiring an investment property that can produce a decent return on their money.
That's provided you choose the right market and know what to do when you get there.

20 best rental investment markets
RealtyTrac recently named the "20 Best Markets to Buy Single Family Rentals," based on markets with the most potential cash flow and capitalization rates.
The study included hundreds of markets with a population of at least 200,000, restricting the list to markets where the average monthly gross rent of a three-bedroom home was at least 1 percent or more of the median sales price in that market.

RealtyTrac then sorted the list by the capitalization rate, highest to lowest and selected the top 20 on the list.
RealtyTrac's 20 Best Markets For Buying Single Family Rentals are:

1. Memphis, TN
2. Saginaw, MI
3. Toledo, OH
4. Ocala, FL
5. Las Vegas, NV
6. Palm Bay, FL
7. Atlanta, GA
8. Jacksonville, FL
9. Deltona, FL
10. Springfield, MO
11. Tampa, FL
12. Port St. Lucie, FL
13. Orlando, FL
14. Phoenix, AZ
15. Detroit, MI
16. Lakeland, FL
17. Kansas City, MO-KS
18. Dayton, OH
19. Syracuse, NY
20. Ogden, UT

"Buying single family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone,' said Daren Blomquist vice president at RealtyTrac.

"But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment," Blomquist.

That's provided the investor takes the time to learn what landlording entails, beyond having the purchasing cash to compete with the big boys.

Ada Vassilovski, vice president of online marketing for MyMove.com says there are five basic questions to ask before you become a landlord.

No. 1 - Does the neighborhood allow rentals? A homeowners association that could restrict rentals governs even some single-family detached home communities.

No. 2 - Do you really know the market? While RealtyTrac's report helps you zero in on metro areas with a potential for a good return on your money, sub markets could be a different story.

No. 3 – Have your researched landlord-tenant laws? Again, RealtyTrac's study doesn’t consider rent control laws, lease contract regulations or fair housing issues. You'd better.

No. 4 - Have you researched the hidden cost of carrying a rental property? Will the rent cover the mortgage, property taxes or upkeep? Do the math.

No. 5 – Are you a handy person? How will you handle a water line break, clogged sink or two feet of snow in the driveway and sidewalks. Can you do it yourself or afford property management services?

Production Builders Are Meeting Realtors More Than Half Way

Provided By: Realty Times

There was a day not long ago that builder/Realtor relationships were strained and unstable. But today, especially as it concerns production builders, misunderstandings are not as common as they were at one time. We can probably thank the internet on some level.


Production builders could be running out of things to do for Realtors. Many of these home builders pursue real estate agents with offers to do most of the work the agent does for resales for the same commission the agent would earn if the agent sold a resale.

A builder's representative demonstrates the model, answers 'location' questions, writes the contract, coordinates the financing, coordinates all post contract appointments, including the final walk through and closing. But that's not enough. Today they are setting appointments for the broker's prospect before the sale!
Yet, according to rough and unofficial estimates, only about 5 percent in a given office (my guess is that this is on the high side) show new homes. Studies (which we will discuss in more detail in a later column) show that agents want to sell new homes, but don't understand the builder' s process and struggle to find new homes inventory not listed in MLS.

In the meantime, a study by Builder Homesite released this year, said that 19% of the 84% of home shoppers who contact Realtors insist on a newly constructed home and 35% are "indifferent' meaning they will buy resale or new. This means that there is a 50-50 chance of the resale prospect sitting across from the agent is willing to consider purchasing a new home.

Why don't more Realtors show new homes? Technology is making it much easier to find both inventory and prospects. Not just any prospects but prospects who want to work with Realtors. In my opinion, I think it has to do more with the lack of MLS participation by the builders and confusing prospect registration at the new homes sales center, than the commission.

On one hand onsite agents like working with broker's prospects because they are generally in the market for a home and are financially qualified and capable of buying one. But some onsite agents have a hard time hiding their disdain for having the broker accompany their own prospects on a model home tour, "because the broker can cost me the sale."

Really? Let's look at some real-life myths.
Myth #1 - The Agent Cost Me The Sale
In the weekly sales meeting the builder's sales manager reviews the sales for the week and asks an agent why the Smiths did not buy.
"They ended up buying a resale. I had them totally convinced to buy our new home, but the agent interrupted my sales presentation and I lost them."
In my mind, this is a case of a frustrated agent not being accountable for a lost sale. I have never heard anything like this:
"I was going to buy a new home but my agent interrupted the sales presentation, so I decided to buy a resale."

Myth #2 General Agents Need To Know Construction
"Agents can't sell my houses because they don't know anything about construction." I believe this to be a negotiating tactic used mostly by a small number of the 80% of 'local' builder members of the National Association of Homebuilders to set the agent up to cut their commission, or to keep some kind of intimidation stick over the agent. It makes no sense. I have listed and sold billions of new construction and don't whittle about construction.

What do these homebuilders expect the agent to say to the prospect?
"So you want to see new homes? I will be happy to show you one in about three months. taking a course this summer to learn how to install cabinets. I will call you just as soon as I complete the course .
No, I am sorry. I understand that you need something now, but I don't know construction and the builder knows I don't know construction

"Why don't we go look at some resales?"
From day 1 in this business, I have never understood why real estate agents need to know more than how to find and qualify their prospects, bring them to the sales center, and accompany their prospect on the sales tour, before they show their prospects resales.
In my mind, there is only one way to help a prospect with construction questions. Introduce your prospect to the builder or his representative.

I felt it was my job to train the builder how to deal with cobrokers and cobroker prospects, not the other way around. My prospects deserve better service from me than to give them anything but direct access to the one with the answers and the responsibility to stand behind them.

Myth #3 The Builder Should Pay Me A Commission Because I Educated the Buyer (who bought from the builder without the broker).
I have talked with agents who actually think they deserve a commission because they 'educated the prospects' about new homes market, but never showed one. Then, when their prospect bought a new home on their own, the agent called the builder. When the builder refused to pay, agents have called me to ask what I think.
When I ask if the seller had been a FSBO, would they have called the owner and demanded a commission "because you rode by their house one day", the agent usually settles down and admits she should have stopped by the builder's sales office.
Home builders and Realtors are working closer than they have in memory. Major issues like registration policies and commissions are becoming more dependable. The fact is millions in commissions are being paid by homebuilders to Real estate agents.

And it is time for the real estate industry start encouraging its agents to learn how to leverage new homes showing to sell ether a new home or a resale.

Tips on Buying Land in Texas

Provided By: Realty Times

There are many things that need to be considered when buying land in Texas. We want to provide you with some tips of what to look for when purchasing land in Texas


Visit at different times of the day. You need to see clearly how your land and the community looks both during the day and the night. What seems like a quiet neighborhood during the day may transform into a hive of noisy activity in the evening when everyone returns home.

Drive around. Particularly if you’ll need to commute, it’s a great idea to drive through the neighborhood and its surrounding streets - even your entire route to work - during the same times of day that you’ll normally be doing it. Try to get a realistic picture of what kind of traffic you’ll be facing each day.

Learn what’s happening. Check local Texas newspapers (and recent archives) for any proposed construction projects. It’s terrible to move into a wonderful new place you love, only to have the entire landscape marred as commercial properties you don’t want start popping up around you, or as convenient streets are rerouted.

Get to know the Property Owners Association. Ask how active neighbors are in the association, and learn what the expectations and requirements are. The more you get to know your neighbors, the more likely they’ll be to look out for you and your family. Property Owners Associations are a great way to get to know influential neighbors, and even to get involved yourself in helping plan holiday events, block parties, and activities that will be fun for every family in the neighborhood.

Find out about taxes. Ask about past home reappraisal patterns and property taxes, and ask about the breakdown of Texas taxes and city taxes in the area. Many counties have websites showing tax assessments and levies. See if you can find specific information on the house and property you’re considering.
Do your homework. Read reviews, use online tools, and talk to neighbors and realtors. Make sure you’re getting what you think you are. Check online for reviews about the neighborhoods, the people, and the schools; check everything that matters to you.

Check the surrounding area. Some homes are in what the industry refers to as “transitional” neighborhoods. Every home is sold for a reason. Make sure you know that reason.
Look into zoning and building codes. Check with City Hall and your neighborhood covenants about property and neighborhood zoning issues. You need to know what restrictions your property may place on your lifestyle. For example, if you have an RV or boat you’re planning to keep somewhere on your property, you need to make sure that’s even allowed.

Keller Williams of Rockwall will help you with all of these concerns, and will help you find the perfect homesite. Rockwall Communities encourages our prospective residents to visit several times. We want you to be absolutely certain that you’ll be pleased and comfortable in your new surroundings. With Keller Williams of Rockwall you’re not just buying a house; you’re buying into a lifestyle!

Here We Go: Building Booming and Home Prices Rising

Provided By: Realty Times

In the first quarter of 2013 our economy grew by 2.5 percent. While some were disappointed with that figure because it fell short of the consensus estimate of 3.0 percent, it's still a sign of better times, according to Corelogic.com.

The company recently released "The MarketPulse" which highlighted the following: economic recovery is benefitting from residential investment, "census division of price declines in the housing collapse varied dramatically by depth and duration, and the census divisions with the largest declines have the fastest current recoveries."

There are four census divisions in the United States. These geographical regions contain two or three census divisions for a total of nine. How these areas were impacted and how they are recovering depends on various factors such as the development of new housing.

Build it and they will come. The new housing industry is growing stronger and helping boost the Gross Domestic Product (GDP). Homebuyers seeking new homes are encouraging this growth.

At the lowest point, new home sales dropped to 273,000 annualized sales in February 2011, marking the lowest sales rate in almost 50 years. The highest peak reached 1.4 million annualized sales in July 2005 and today it's increasing 19 percent from a year ago, according to the U.S. Census Bureau data from March 2013.

Meanwhile, residential home prices are continuing to rise. However, the increase in home prices isn't uniform across the country. Instead, the recovery is geographically confined to areas that are "either recovering from the boom-bust cycle, or exhibiting strong economic fundamentals and strengthening demographic demand," according to Corelogic.
The increase in housing prices is also happening in areas where building is booming.

New housing competes with foreclosures and short sales. These latter two groups are now experiencing a decline, making new housing a good solution for some buyers.
Mortgages categorized as seriously delinquent (90 days or more past due) peaked nationally at 3.7 million in January 2010. The figure has recently dropped by 33 percent to 1.2 million.

Corelogic reported that there were 55,000 completed foreclosures through March 2013, which is a decrease of 16 percent compared with the number of the same period last year.
Meanwhile, the summer sizzle season is arriving soon and analysts expect another possible increase in sales and prices which could encourage more sellers to list their homes for sale
If you're interested in buying, here are a few tips. Act now. Start putting your finances in order so you know what you can actually afford to purchase. Delaying this could mean the loss of your favorite home to a better prepared borrower.

Meet with experts to get the best information and advice about the real estate market you're interested in. While real estate information is available on line from anywhere in the world, prices vary greatly depending on the local market. Your best bet is to find an expert in the area you're interested in to assist you with your questions and guide you through your search.
Remember that many sellers are still in a recovery mode. They may just now be adjusting to no longer having their home mortgage "under water". So, when you find a home you're interested in, act quickly to engage negotiation about the final sales price.
Also, keep in mind that the housing inventory is likely to increase as housing prices continue to rise. However, many experts predict the shortage of existing homes for sale is likely to remain a problem throughout the rest of 2013. 

Real Estate Marketing Strategies: Do You Know What You Should Be Doing, But You Aren't Doing It?

Provided By: Realty Times

As a real estate business coach I hear this statement several times a week from clients whose cry for help is: "I know what I'm should be doing, but I just cannot make myself do it, can you help?"


This is especially common in agents who've been in the business two years or longer. They have taken many accountability coaching programs, and they can't understand why they can't implement what they have learned.
How would you know if you subconsciously suffer from this same dilemma?
Here are some signs to notice that will make you aware of whether you also have this predicament:

• Do you find yourself procrastinating?
• Do you find yourself doing anything to avoid making calls?
• Do you feel de-energized in general?
• Are you unmotivated in your life and in your business?
• Are you feeling stuck?
• Is your income down?

I wonder if you can guess what causes us this predicament? How can it be that you know what you should be doing what you're not doing it?
The answer lies in subconscious and conscious self-limiting beliefs such as:

• "I don't have what it takes to succeed"
• "I have to be hard on myself in order to succeed"
• "If I call people, then I'm bothering them"
• "If I call people, I'll be rejected"

These and many other self-limiting beliefs destroy your confidence and lead you into a slump, personally and professionally.

Often times when you're in a slump you will be tempted to take another accountability coaching program. However, even though there is nothing wrong with accountability coaching programs, if you take another one when you already know what you should be doing, then you're just adding on more of the same.
Instead, you should consider the alternative approach of mindset coaching.
A mindset coaching program simply assumes that you already have systems in place, and that the reason you're not reaching the level of income you want to is because you have mental blocks that need to be dissolved.
Both kinds of coaching are valuable. You need to determine which type works best for you depending on your level of development.
In a mindset coaching program, you will be guided by an experienced coach to discover and release your major self-limiting beliefs. In addition you will be guided to install updated Empowered Beliefs such as:

• "I have all that it takes to succeed"
• "It is safe for me to be visible and it is safe for me to shine"
• "I have a valuable service to offer and people are happy to hear from me"
• "I am a magnet for my Ideal Clients"

What is the benefit of installing these empowered beliefs into your conscious and subconscious mind?
In my experience of working with real estate agents for 15+ years, I found that when they install updated Empowered Beliefs, they experience the following;

• Their energy is restored to a very high level
• They have a renewed sense of hope about turning their business around
• They create a full pipeline of their ideal clients
• They create a Multiple 6 Figure Income

Imagine how you would feel if you're mind was full of positive beliefs such as:

• "I work smarter not harder"
• "I am perfectly imperfect, like everybody else"
• "I magnetize to me an abundance of clients who are motivated, determined, and appreciative of me

Best of all, you would start saying,"I know what I should be doing, and I'm doing it!"

Four Tips for Homeowners Facing Foreclosure

Provided By: Realty Times


Foreclosure is defined as the "process of taking possession of a mortgaged property as a result of someone's failure to keep up mortgage payment." This is a simple definition for a very complicated and overwhelming process. Consumers facing the possibility of foreclosure suffer both financially and emotionally from losing their homes.

Consumers can minimize the fear and paralysis associated with foreclosure by arming themselves with knowledge that will help increase their chances of a loan workout or amicable walk-away. Through my experiences in assisting families--having worked with lenders, law firms, and government agencies in the loan workout industry--I have gained a wealth of information and am sharing some simple tips for homeowners who are looking to fix their housing situation.


1) State Programs For Homeowners
The foreclosure process varies from state to state and includes both state and national guidelines. Many consumers aren’t familiar with programs offered by states for those who have fallen behind on their mortgage payments. Understanding your State’s foreclosure prevention programs and laws that protect homeowners and consumers can make a difference in keeping your home or walking away on your own terms.
For example, in the state of Michigan, there is legislation referred to as a 3205 Notice. This legislation requires a written notice to be sent to a borrower who has fallen delinquent on their payments. While most are aware that receiving a notice is standard practice, very few know that a written response can delay foreclosure proceedings. In Michigan, if a homeowner responds to this notice within 14 days, a temporary halt occurs and a 90 day freeze is put into place. The three months provided may allow time to modify the existing loan and ultimately save the property.
Consumers can find information about programs in their state by looking at the National Consumer Law Center website or checking their local state resources. .

2) Deed in Lieu of Foreclosure
Ideally, the first action for a homeowner who has missed payments is to communicate directly with their lender or retain an expert to assist them. Based on this communication, lenders may offer a Deed in Lieu of Foreclosure. A deed in lieu of foreclosure is an option meant to benefit both parties, the consumer and the lender. Essentially, the homeowner agrees to give up the deed to the property and the lender agrees not to pursue a foreclosure and potentially waive any future liability that the homeowner might otherwise incur. This is desirable to the bank because the property is transferred much sooner than in a normal foreclosure proceeding without damage to the property. A homeowner walks away from the situation with a release of liability (sometimes referred to as a "release of deficiency") and without a foreclosure on their credit record. This is often referred to as the loan being "settled less than full." The ability to do a deed in lieu of foreclosure hinges on a few factors including who the investor of the loan is and whether or not there are any other mortgages on the property. Generally, this option is not available to homeowners who have a second mortgage or an equity line of credit.

3) Short Sale
Significant benefits are available to homeowners who choose to short sale their home and are informed on the proper way to do it. The Mortgage Forgiveness Debt Relief Act and Debt Cancellation detailed options available to homeowners from 2007 to 2013. In the case of a short sale, homeowners may receive up to $3,000 for relocation assistance and can be given a 1099C (Cancellation of Debt) which is treated like income for tax purposes. It’s useful for homeowners to know that there are options available for the remainder of 2013 and it may be to their advantage to short sell during the year before the law sunsets. Current legislation allows a homeowner who completes a short sale of their primary residence by December 31, 2013 to avoid tax liability by claiming the primary residence exemption on their taxes.
Many homeowners in fear of foreclosure are not aware that a home can be sold to a family member, friend, or relative. Experts in the housing industry can help negotiate this type of sale and are required to disclose all of the pertinent information to the lender regarding the sale. With proper negotiation and disclosure, a family home can be saved.

4) Cash for Keys
Cash for Keys is a program that may allow homeowners or tenants in foreclosed homes to avoid eviction. This option is only available after a foreclosure on the property. If a lender is willing to negotiate, an agreement is made between the homeowner/tenant and the lender that includes a few basic components. First, the tenant must agree to vacate the premises and leave the property in good condition. In return, the lender agrees to pay the homeowner an agreed upon amount, usually in the form of a certified check, once the keys have been turned over to the bank’s real estate agent. If negotiated properly, the consumer walks away from the home in exchange for cash payment that can range from $1,500 to $30,000, depending on the value of the home.

There are options available for homeowners, however turning to an expert can be costly. Lawyers that specialize in real estate can be expensive. Subject matter experts are available through loan workout companies which can be useful and more cost efficient. With a bit of help, strategic planning and self-educating, Americans can find ways to keep their homes or walk-away properly.

God Made a Realtor

Provided By Brian Weast & Associates