Kentucky Real Estate Business

Archive for April, 2010

I used to encourage people to try selling their home for-sale-by-owner before calling me, then play the superhero and swoop in when all else fails to save the day. Not anymore. That’s because although they may “save” some money on the front end of the deal, it’s the lawsuits and contractual disputes that’ll bleed them dry in the end.

No, not every FSBO contract ends in court, but too many of them get so distorted by both parties inexperience and stubbornness that they’re unrecognizable as legal transactions and oftentimes result in more than one person scratching their head and wondering what made them do this in the first place. For example, a buyer and seller may just skate through negotiating the repairs after a home inspection without wringing each other’s necks, only to find that the buyer’s lender requires more repairs to be done to bring the property condition to a certain standard. Neither the buyer nor seller knew about it, but the seller feels he’s already compromised too much and refuses to make any more repairs and the buyer feels the same and won’t settle for less. They’re at an impasse. How do you make it work so both parties are satisfied? How do you get out of the contract without inviting breach of contract? Who gets the earnest money deposit? Who has the legal right-of-way?

Realtors aren’t miracle workers, but we’ve got the know-how to answer those questions, as well as combat just about any crisis that may arise. We have extensive schooling, followed by required classes in real estate and real estate law. We keep up-to-date with as much information as we can. There are very few things that can surprise a Realtor.

Showing home after home after home after home to our buyers has also enlightened us as to exactly what buyers are looking for . . . and what scares them away. Most of us won’t claim to be professional stagers, but we do know that the armoire crowding the stairs has got to go, the dirty siding needs to be power-washed, the junk on the dresser just needs to be boxed up and stored, that couch needs to go there and that chair needs to go over there, trim that bush, paint that door, caulk that baseboard, change the color on that wall and remove the wallpaper on that one, and the list goes on. Surprisingly, sometimes it’s the little things that can drive a buyer away.

Pricing is another area where we can really shine. The method we use to value a home is the very same method a licensed appraiser uses to value a home. Word of caution, though: if you already had an appraisal because you’ve decided at some point to refinance, we won’t use it. Most appraisals resulting from refinancing are high, very high. On the flip side, we shamefully use it to better sell your home, as in “Priced below appraisal!”

But that’s not where we really excel! Years of experience have taught us everything we need to know to market your property effectively. First and foremost is our access to the Multiple Listing Service (MLS). The MLS is the #1 vehicle to selling your home. Buyers working with Realtors have available to them through the MLS an automated search engine. The Realtor will input the buyer’s criteria into the MLS and email to the buyer a list of homes within that criteria. And every time a home comes on the market that fits within that criteria, the Realtor’s system will automatically email the property information to the buyer. Additionally, the MLS reaches buyers who are not represented by a real estate agent by also posting the listing on Realtor.com.

Another avenue of marketing not available to the general public is the Homes magazine. This is a publication offered to the community at no charge, and the full-color pages can sometimes attract genuine interest.

Yard signs, open houses, websites and ads in local papers work too, but another excellent resource is simply word-of-mouth. Realtors talk. We talk at meetings, classes, through email, charity events and even while giving feedback on a showing. We send mailings to specific neighborhoods, past clients, and family and friends. We’ve met hundreds of people and worked with dozens of real estate agents. We get around. What better person to talk up your home than someone with connections?

As Realtors, we also have access to all the paperwork necessary to make the home-selling process both legal and painless. We have contracts, addendums, request for repair forms, seller disclosures, one-time showing agreements, lead-based paint disclosures, listing agreements, contingency forms, smoke detector affidavits, release of contract forms, etc. You name it, we have access to it.

Realtors also negotiate on your behalf. Oftentimes a seller doesn’t know when to push and when to back off, when to accept an offer or counter an offer or where to draw the line on inspection repairs. Years of experience interpreting subtle (and not-so-subtle!) nuances in negotiations has equipped us to read most situations and act appropriately. For example, if we know that a buyer has already sold their home, that tells us that anxiety might be setting in and they may be more amenable to negotiations. If we find that a buyer already backed out of a contract because the sellers refused to make any repairs after the home inspection, we take that into consideration as well. If the buyer’s agent says that the buyer is only in town 24 hours, we can presume that they’re hoping to find a home and make an offer on it all in the same day. Everything comes into play in negotiating, whether it be the obvious, or even something as simple as a dejected tone in the buyer’s voice. And if you decide to play good cop/bad cop, we’ll be the bad cop!

The icing on the cake is that Realtors will often go way above and beyond what’s expected of them. We’ve let the dog out while our sellers are on vacation. We’ve waited for contractors to let them in the house. We’ve even hired neighborhood kids to mow lawns. We’ve cleared backyards of dog poop and scrubbed kitchen sinks to make the home more presentable. To sum it up, we go that extra mile to sell your house. Our goal is to develop relationships with our sellers that will last not only through the final paperwork and closing, but a lifetime.

Paris vacation rentals can be tricky to navigate, but the payoff is huge. Whether you are on a budget traveler who cannot afford the double-whammy cost of hotels and restaurants, or a luxury traveler who wants seclusion and over-the-top grandeur, you’ll get more space and privacy for your money by booking a rental property.
Convenience is probably the biggest advantage of a Paris vacation rental, you can come and go as you please and do what you like, when you like. An apartment rental is one of the most comfortable lodging options that can be availed for enjoying your vacation.
Besides more space and privacy, vacation rentals offer you a wide range of amenities without attacking your wallet. It’s you and your family enjoying a Paris pied-a-terre, your favorite snack from the refrigerator when you want it. You can impress family and friends with your culinary talent when restaurants and dining out becomes mundane, not to mention less nutritious and way more costly!
Fatal Mistake #1 Reserving last minute
Paris is the #1 visited destination in the world. It is safe to assume that premium vacation apartments are booked months and sometimes even a year in advance during peak season. The saying, “The early bird gets the worm” is especially applicable here.
The longer you postpone your vacation rental booking, the tighter the selection and higher the risk of losing prime vacation rental apartments since there are a limited number of top notch vacation apartments in select Paris neighborhoods.
The highly coveted 2 bed/2 bath or 3 bedroom/ 2 bath in St.Germain des Pres or Le Marais are booked way in advance especially during peak season June, Easter, September, October, Christmas and New Ys week. It not unusual to book, a year or six months in advance to secure these favorable dates. Actually it is strongly recommended to book as far in ahead as possible.
Those who begin their quest two to three months prior to their arrival are considered last minute bookings which are traditionally difficult and it is extraordinarily time consuming to find a suitable vacation apartment. Do not depend on cancellations and postponements which are rare since owners do not look kindly at refunding deposits or rental monies applied. The only way to insure the vacation rental apartment of your dreams is to book far advance.
Fatal Mistake #2 Know your deal breakers
One of the best ways to ensure that you choose the Paris vacation rental that is best for you is by examining and vocalizing your vacation apartment wants and needs. A clear cut idea about the type of vacation apartment, amenities, and any special requirement is crucial to securing the correct vacation apartment for your lifestyle.
You will want to closely examine your vacation style, namely who you are traveling with or what the purpose of your vacation is. Who you are traveling with will most likely play a huge role in choosing a Paris vacation rental. The size of your traveling party will not only determine how big of a rental you need, it may also have an impact on the type of rental apartment you choose.
For instance, families on vacations together may be better suited in a townhouse or a private house, instead of a vacation apartment. What you want to get out of your vacation is another one of the many factors that you will want to take into consideration.
For instance, if you are booking a romantic getaway or a honeymoon, you may want to choose a vacation apartment with a romantic ambiance. Appearances have been known to create romance. You can easily tell if a Paris vacation rental is elegant and luxurious in nature by closely examining pictures.
What you will need to do, while staying in a vacation rental, is also important to consider. For instance, if you are taking an extended vacation, you may need to do laundry or you may wish to eat in your Paris vacation apartment, to reduce expenses. Since you are on vacation and should enjoy yourself, you will want to take the simplest approach possible.
For example, if you need to do laundry, make sure that your vacation rental comes equipped with a washer and dryer. To reduce the amount of time spent cleaning up, consider vacation rentals featuring a dishwasher.
While it is important that you focus on your vacation rental needs, it is also key that you spotlight items on your wish list. For instance, do you want to have a Paris vacation rental that features a swimming pool in the apartment (yes, they do exist), a sauna, cable television, or internet access?
If so, it is important that you request these desires and refrain from securing your reservation until you have weighed your deal breakers.
It is also important that you examine your wants in terms of location. Would you prefer to roll out of bed and be sandwiched by numerous bistros and cafes or would you prefer a quiet residential street,
In keeping with location, it is also important to examine what you want to do, while on your Paris vacation. This can help you choose the Paris vacation rental that is most convenient. For instance, if you are planning on walking everywhere than you want to be in an arrondissement that is close to all the attractions that interest you.
On the other hand, if you know that you will be utilizing the metro, map out the metro stops of the places that you want a visit and reserve an apartment that has a metro line with easy access to those locations.
If you are sensitive to noise, ask about the surrounding buildings. Is the vacation apartment next door or on top of bustling bar or restaurant? Is there a lot of street traffic on your block? This is the ideal
Unfortunately vacation apartment features that you deem essential might be irrelevant to the apartment, do not assume anything. Paris has a different standard of luxury, a different attitude towards life and most importantly a totally different culture.
Parisians do not even think about air conditioning. Most Americans cannot live without air conditioning.
Do you have allergies? If so, think twice about booking an apartment centuries old. Are you willing and able to trek up stairs or is an elevator essential? Are you claustrophobic than maybe a typical Parisian elevator is not for you.
The traditional elevators take a bit of getting use it is important to know this beforehand. Do not expect your booking agent or apartment owner to share these minute apartment details. It is your obligation to be an educated consumer and make sure that the vacation rental will suit your lifestyle.
Should the bedrooms be located on opposite sides of the apartment or next to each other? Do you need airport transfers? Is a stocked refrigerator essential? How often do you want maid service?
When you rent a vacation apartment, you are on your own. Is your French strong enough to secure restaurant reservations and book day trips? Do you want to spend a couple of hours figuring out where the nearest market and metro is or would you like a bit of hand holding?
A professional concierge willing to offer his Parisian expertise may be ideal for you. It does not hurt to inquire with your agency or apartment owners. Not all agencies offer these additional services but it does not hurt to ask prior to booking your apartment. You maybe able to find an all in one agency that will cater to all your needs.
Fatal Mistake #3 Email is good but speaking to a human is better
First-time visitors have little idea of the scale of the Paris area and the quest for a vacation apartment can be more than a little daunting. It is made even more confusing by the vast choice of vacation rentals available and the lack of clear details on the location and apartment.
We know that this has resulted in some guests turning this into a job instead of an opportunity to familiarize themselves with the city and pick the brains of the agencies and owners. Look for agents and owners that will gladly answer all of your questions. Let them know that you have visited Paris since 1982 and pick their brains or what to expect in the different neighborhoods.
The pictures on the web sites usually present the vacation apartment very well but how recent are the photos? Many of the vacation rentals will have heavy wear since they are professional vacation apartments welcoming guests on a non-stop basis. While speaking with the owner or agency does not guarantee quality, yet it does give you the opportunity to ask if the photos on the site truly represent the condition of the vacation rental today.
I know there are many guests who never speak to anyone and solely rely on email correspondence when booking their vacation rental. Successful vacation apartment hunting has one primary tool, the telephone. When you are investing in an experience such as renting a vacation apartment, it is recommended to begin your dialogue with an email but make an attempt to get to know the apartment owner or agency that you are dealing with.
You can email agents and apartment owners, but you can not easily determine whether you like the person you aredealing with via typed messages. Gauge the responses of the agent or apartment owner, and trust your gut. If you feel like you are being pressured, you are. And if you don’t like the person you’re talking to, chances are you’re not going to like the vacation apartments he/she represent. Trust your intuition.
If you don’t get a good feeling, chances are the entire process will be thorny. If the customer service via phone and email is lacking, do you really think it is going to get exceedingly better when you arrive in Paris? Is it better to have a solid mid-range vacation apartment with an attentive and thorough agent or apartment owner or a fabulous vacation apartment with an apartment owner or agent with an attitude? Only you can make that call, but know beforehand, how you are willing to play.
It’s strongly suggested to build a friendly rapport with your agency or apartment owner. You may need last minute assistance or a special favor and it’s always easier to deal with someone that you like and likes you.

As a quick turn real estate entrepreneur one of your highest priorities for growing your business should be marketing. Obviously there is more to the business than just marketing, like negotiating and closing deals, but your marketing efforts are what drive the whole process by providing a steady stream of leads for you to negotiate and turn into deals.
All other things being equal, the strength of your bottom line is proportional to the strength of your marketing, period. Many educators even say that you should consider yourself to be in the marketing business rather than the real estate business, and there is considerable wisdom to this advice.
Getting lots of business is no accident. An effective marketing campaign cannot be begun or sustained without a detailed and goal-oriented plan. There are at least four elements that are crucial to designing a marketing plan with wings that will take your business to new heights of success. They are the target audience, or who you want your marketing to speak to, the marketing message, or what you want your marketing to say, the method of delivery, or how you will say it to them, and your marketing budget.
Without having a clear idea in your mind of who you are marketing to, all of your marketing efforts will be a shot in the dark. Who are your customers or clients? What do they do and what are they like? In quick turn real estate there are two main classifications of customers that are important for your business: sellers and buyers.
Buyers can be further classified into wholesale buyers, who buy professionally, and retail buyers, who buy to have a place to live. Your plan should include a detailed description of the types of individuals you are marketing to, including what their habits are and how to reach them.
Your marketing message should not only get the attention of your target audience, but should also inspire them to take action. Figure out who your customers are, what they are in need of, and how you can provide it. Then let your marketing message tell them how doing business with you can solve their problem, and command them to contact you by phone, fax, email, website, singing telegram, in person, or whatever works best for your business.
Once you know what you want to say and who you want to say it to, you need to know how you are going to say it to them. How will you get in front of your prospects and get their attention? There are many ways of doing this including through email, postal mail, bandit signs, outdoor advertising, business cards, and classified ads, to name just a few of the more common ones. Your plan should include as many methods of delivery as you can consistently handle and track the results of.
Finally your plan should also include a budget that details how much you will spend to implement it over the coming months, preferably all the way out to a year. This could be conceived of as a dollar amount or as a percentage of gross business revenues. However you plan it, you should plan to consistently reinvest profits into marketing and growing your business if you don’t want to keep working as hard as you are right now for the rest of your life.
Once you have designed and begun to implement your plan, stick to it until you see results. Use common sense of course, but realize that it takes time for the full effect of a marketing plan to be felt and don’t expect results overnight. Allow your advertising time to saturate the market and build up the momentum that will keep your business rolling for a good long time.

The following article is based solely on individual research and should not be taken as legal advice. Tenancy by entirety is otherwise known as a special kind of property ownership that only married couples in a handful of states may use to their advantage. All that a married couple needs to do to file for tenancy by the entirety is to specify in the deed that the property is being conveyed to the couple “as tenants by the entirety”. Both spouses have the right to enjoy the entire property, and when one spouse dies, the surviving spouse gets a title to the property- more officially known as the right of survivorship. It is similar to joint tenancy, but is available in only about half the states.
The main difference between joint tenancy and tenancy by the entirety is that joint tenants may deal with the property as they wish. If an individual tenant decides to convey his interest in the property, that interest is conveyed and the joint tenancy dissolves. With tenancy by the entirety, each tenant owns the entire estate thereby preventing either tenant from acting individually. In return, the property is protected from judgment creditors trying to enforce their liens against the property. However, if both tenants file for bankruptcy, this advantage is nullified leaving the estate vulnerable to judgment creditors. Note that if the debtor spouse dies first then the lien cannot be enforced against the property. On the other hand, if a debtor spouse survives a non-debtor spouse, the lien may be enforced against the whole property, not merely the debtor spouse’s original half-interest.
Of course, there are some potential disadvantages to tenancy by the entirety as well. Property held in tenancy by the entirety cannot be severed by a partition action filed by one of the parties. If one spouse disappears or simply leaves, difficulties in transferring or encumbering the property rise exponentially. In essence, anything that involves the estate and both tenants’ participation becomes that much more of a chore should one spouse become incompetent. For example, transferring ownership to an adult child would be very difficult for a couple filed under tenancy by the entirety. This is an important area which should be discussed with all residential real estate buyers. Since there are certain disadvantages, it should not be used as the “default” tenancy for married individuals.
Again, since tenancy by the entirety is a creature of state law, in order to take advantage of it in a bankruptcy action, you would have to use your state’s exemptions as opposed to the federal exemptions. Even then, the exemption will be valuable only if both spouses do not file for bankruptcy together, and only if the filing spouse is solely liable for the debt resulting in the lien on the home.
States where full-fledged tenancy by the entirety is available: Alaska, Arkansas, Delaware, District of Columbia, Florida, Hawaii, Maryland, Massachusetts, Mississippi, Missouri, New Jersey, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Vermont, and Virginia. States where tenancy by the entirety may be used for real estate: Illinois, Indiana, Kentucky, Michigan, New York, North Carolina, and Oregon.

The net is full of possibilities for businesses to make thousands, hundred of thousands, and even millions of dollars each year. In order to do this, businesses need to create business websites to display their company wares for others to see. The pot of gold that is created by online consumers is not found with just the building of a business website, although how well it is built does factor into the marketability of websites. Businesses have to market the heck out of those business websites to find the people willing to part with those large sums of money each year.
To get your portion of the online gold you need to learn how to market online. Online marketing is akin to the offline marketing of your real estate business; with the exception that the internet extends around the world at lightening speed. Your business could not afford to send a snail mail to the numbers of people the internet is capable of reaching in just seconds. Through the internet businesses have gained worldwide recognition and the sales figures to match, which is why online marketing has become so critical to earning a business worldwide recognition and sales. Your business deserves this opportunity for fame and fortune too, whether you only want to reach clients in your state, across the country, or around the world.
Learn how to market your real estate business online and your it will work for you, not against you, making you more productive and successful. As stated earlier, some of the work begins with the building of your business website. You will want to make certain that your website has the essentials such as fascinating and illuminating content that readers looking for real estate information would find useful to them. Discover how to search engine optimize the content, designs, and additions of your website for marketing to search engines. Insert additives such as 800 call capture into the programming of your website to collect information to create mailing lists with. Offer readers extras such as articles to teach them about various aspects of real estate. Create a newsletter with tips and advice and offer this to visitors who sign up to receive the newsletter by email, and you will also have a list of contacts for future marketing email campaigns. Create forums or blogs that link back to your website to expose your business online to the people with the highest interest, which is also an excellent way for you to find clients.
Learn how to market online in other ways such as directory, link exchange, and search engine marketing. There are marketing and email marketing software programs and online providers who can help you to more successfully market online. Helpful when your efforts do not seem to be producing the results you want or you have little confidence in your ability to undertake the marketing of your online without some assistance.
Creative Agent Solutions cares about helping real estate agents and real estate virtual assistants to succeed. Find illuminating articles for the realtor and virtual assistants and resources such as network community for both to come together on the Creative Agent Solutions homepage

Searching for student apartments require more effort than usual. This is because, students have special requirements like proximity to college, libraries and other frequently visited places based on their needs. As students have special requirements, they have some additional ways to search an apartment than others. They can search an apartment in two ways- on campus and off campus apartment search, which includes both online and offline searches.On Campus Apartment Search: On campus apartment search is the basic way of searching a student apartment.•    It is easy to get information regarding a vacant apartment from your seniors, friends or classmates.•    Check whether your college/school has any magazine, so that you can find or give any advertisement or classified about a vacant apartment. •    Check through the various student clubs like alumni, where you may find information about any vacant apartment.If you could not find a suitable apartment through these methods, you can search for an apartment through agents. Check for the agents who can give information about vacant apartments in the neighborhood of your school/college. Look specifically for the services run by or for students which may also have a tie-up with your school/college. Also find out if there are any websites run for the students that may help you.Off Campus Apartment Search: Off campus apartment search is an effective way of searching an apartment as you have better sources.•    Check the advertisements in the local news papers and tabloids for the apartments.•    Approach agents who can reduce your effort of searching an apartment. Go for the one who has experience in finding student apartments.•    Check for the websites that have listings of vacant apartments in the localities you are looking for. Through online apartment search you can instantly access number of apartments rather than offline.•    Look specifically for specialists in student apartments. They will have advertisements or classifieds regarding vacant apartments and some asking to share an apartment, which is more helpful if you are searching for a roommate also.•    Some apartment search websites allows you to post an advertisement free of cost, where you can give your details like the requirements, budgets, locality etc.Some of these websites also provide ratings to the apartments given by the past and current residents of the particular apartment. These ratings are very much helpful in selecting the suitable apartment.This information helps you in finding a suitable student apartment without spending much time and effort.

If you have owned a home, or any piece of residential real estate including condos, and vacation homes than you are aware of the run up in prices that occurred for a five year period that ended more than a year ago. In terms of investing, owning a home for half a century has been a wonderful way to build wealth. It is one of the few investing methods where you could actually live in your investment, while it increased in value. Most investors are not aware that from World War II until last year, there was never a single year where home prices fell on a national level, until last year that is.
Homeowners have counted on a steady annual increase in the price of the house they were living in to create a wealth effect. For many, it was their only source of forced savings. It was also a participation in the American dream – owning your own home, and living in it.
Studies are now available which show that at the end of last year, a number of housing markets declined. Actually, 149 different markets experienced the decline. Hardest hit were the East and West Coast of the US, and the Northeast cities.
In you were in Florida at all last year, it was impossible not to see thousands of super cranes going about the process of building 20 to 50 story condominiums. The vast majority of these condos were bought on speculation with the buyer signing the contract never anticipating the need to close on the contract.
We have not seen a mass number of walkways yet. These are people that signed non-recourse agreements with the builder, and are in a position to walk away from the agreement without having to write a check. They will forfeit the deposit they put down however.
Florida may well be the state taking the biggest hit in real estate. Sarasota was down 18% by year-end, while Melbourne was experiencing a 17 % decline. We are talking about actual prices being down. On a national level prices were down 2.7%.
Many analysts haven’t quite figured out what this means? Are motivated sellers holding onto residences longer in anticipation of getting their higher price later on? Are some sellers withdrawing their homes from the market, or perhaps not putting them on the market at all, awaiting prices firming up, perhaps later this year?
What about sales themselves?
In addition to prices being down, there are less actual sales taking place, which is leading to a larger inventory of unsold homes. Forty different states have reported a decline in the number of sales taking place. On a national level the number comes to a 10.1% decline in the actual number of homes being sold regardless of price. Three different localities have reported physical sales being down more than 30%. They include Nevada, Florida, and the District of Columbia. Virginia reported a 20% decline.
There were six states that reported an increase in the number of sales taking place – that’s six out of fifty. They included Alaska, Arkansas, Illinois, Kentucky, Mississippi, and Texas. There was no impact on Utah where sales were flat.
What you really need to look at is the VACANCY rate. The vacancy rate is the number of homes on the market where nobody is living in them, and they are for sale. On a national level, this number always seems to hover around 2%. At year-end, the number went to 2.7%. This is a massive increase because 2.7% is the highest it has been to in 50 years, and that’s only because they started figuring out the number 50 years ago.
You’ve got owners out there who are just waiting, and won’t sell at a lower price than the price they want. This accounts for the increased vacancy rate. On top of that you have another issue. There does come a point where a seller may have to sell. He will take what he can get, even though it establishes a new lower base from which everything else can trade.
Once this base is established than other buyers and sellers see it. The seller reacts with alarm. The buyer reacts with glee, but trepidation also because the buyer doesn’t know if prices are going lower still. This is how panic selling sets in, and no buyers. The buyers walk away, waiting for still lower prices
It’s the same as the stock market, sellers once they have seen higher prices, don’t want to sell at a lower price. Many prefer to wait, hoping, and it is hope that the price will come back. Only the forced seller will do the deal. It might be an estate, or divorce settlement, or a housing relocation that forces the actual sale. It doesn’t matter, once that sale hits the marketplace for all to see, there is a new adjustment in the real estate market.
Where’s the BIAS Now – UP or DOWN?
It is difficult to tell if the year-end numbers have wrenched out the secular excesses that have taken place in the real estate markets in the last five years while everything went crazy on the upside. There may be more to go. If you look at the stock market, most of the house builders bottomed out several months ago when they all made new multi-year lows. Since then, they have rallied nicely. If the real estate market has more to go on the downside, than these stocks will probably have to build double-bottoms before the decline is actually over.
If however, the vacancy rate picks up from here, and price declines have seen their bottom, than most of the damage is behind us. The economy overall and interest rate seem fine, so we don’t expect damage coming from a decline in GDP this year. What seems to be happening is that we are looking at a wearing down of the excesses produced since the late 1990′s in residential real estate in this country?
The geographical segments of the country that experienced the most increases in real estate prices are now the ones experiencing the declines. It’s the same story, and the story never changes, only the areas of the country being affected changes. Our work shows that prices, and vacancy rates have a way to go yet on the downside. At the same time, we believe the housing stocks may decline, but the absolute bottoms established months ago will hold. We are already off those bottoms.
Goodbye and Good Luck
Richard Stoyeck

Like many real estate investors, I started out investing in real estate using my own money and credit. This worked fine for the first few deals. But eventually, as I purchased 20 to 30 properties, my lender at the time, Washington Mutual, cut me off from further deals and my personal funds dried up. I had built up a great deal of real estate equity, but was locked out from doing other deals with my traditional lender and could barely pay for my own groceries. I had to find another way to fund real estate deals ormy investing career was over.This is when I discovered private lenders who have funds to lend for real estate deals, but do not want the headaches and paperwork to actually manage tenants or properties. These individuals are generally middle class people, like you and me, who have some extra funds to lend. They can be retired business people, corporate executives, professionals such as doctors, lawyers, or business owners or even blue collar workers all looking for returns substantially above the 3% to 5% they get at the banks.Let me first explain my definition of “Private Money”. Private money is funding that comes from private individuals, friends, family, IRA’s or any source other than institutional or conventional means. It is sometimes referred to as “Hard Money” or “Flash Cash.” The question I had to figure out was, “How do I find enough of these folks to run an active real estate business buying 2 to 4 houses per month?” To address this issue, I developed a marketing plan that would allow these individuals to call me and raise their hand to indicate their interest in our lending program. How Do I find Private Lenders?Well, frankly, we advertise for them. It’s as simple as that! Finding private money is not nearly as difficult as people think. My simple marketing plan includes many of the following activities:Network with everyone you know and develop a 60 second “Elevator Speech”:”Are you getting a safe 9 to 12% return on your idle cash or retirement funds? No! Well, we buy houses and pay cash for each house and we use private lenders to fund our deals. We pay 9% to 12% on notes secured by local real estate. If you are not getting that type of predicable return on your money, I’ll be glad to get you the details. We occasionally hold a free small luncheon for potential investors, or I could also sit down with you at your convenience and show you how it works. If you like what you hear, simply let me know how much you’re looking to invest and how long you can have your funds tied up. I’ll put you on my list and look for an investment opportunity that meets your needs. When I find one, I will call you. At that time you can pass or play. There’s no obligation.”Newspaper Ads such as Private Money Needed, Earn 14% plus 5 points, Rental, 70% LTV $65,000 call xxx-xxx-xxxx or Mortgage Note for Sale: $190,000 1st mortgage at 9% with low LTV. Call xxx-xxx-xxxxREIA Newsletter and CraigList Ad:PRIVATE LENDERS NEEDED – Earn 9% to 12% hassle free on your idle cash or retirement funds secured by local real estate. I’m a professional real estate investor with over 50 successful transactions completed since 1999. I am not a financial planner, but a full-time buyer and seller of single family homes. We use private funds to pay cash for our real estate purchases and can pay you 9% to 12% when you help us fund our purchases.To learn more visit us at www.xxxxxxxxx.com or call me at xxx-xxx-xxxx. Invest by xxxx 31, 200x and earn a $1,000 bonus.Flyers, Postcards, and Speeches/Presentations: We also use flyers and postcards with a similar message using the above examples. Also, one of the best ways to get private lenders is to speak or present to groups. Senior citizen groups are always looking for presenters to attend their meetings and these people quite often have excess cash in CD’s or IRA’s that make them a natural lender. Having private capital resources is critical to the success of the serious creative real estate entrepreneur. Even if you desire to use your own money, it never hurts to have another source or two available. If your funds are tied up, and a great deal comes along, you can immediately jump on it.If you follow some or all of the above marketing suggestions, you will have people with money seeking you out to lend you money for your next deal.

While this article was originally geared towards the first-time homebuyers, often a ripening age and the passing of time since your last purchase might slide you right back into that greenhorn status. Following are the steps you can expect to take when buying a home… at least in Kentucky. There are real estate laws and a “this-is-the-way-we’ve-always-done-it” mentality that sets each state uniquely apart, so talk to a local Realtor before you decide to purchase. That’s what we’re here for!

Though this must-do tip is not an official “step,” I’m going to say it anyways . . . stop making late payments! It affects your credit, adversely. Which brings me to the authentic first step.FIND A LENDER!

Okay, I don’t mean to yell, but as first steps go, this one’s a doozy. I can’t stress enough the importance of finding a mortgage lender. Many a dream home has been lost because the debt-to-income ratio just doesn’t jive or your credit rating has dropped significantly when you weren’t even looking.

The unofficial rule of thumb for finding a lender is to talk to at least two of them. And tell them you’re shopping around! This encourages lenders to not only find the best loan for your situation, but a little competition might go a long way towards reducing your interest rate. Don’t be concerned that lenders pulling your credit will affect your credit rating. Not the case anymore. Once you’ve found your lender, you can lock into the interest rate for 30, 60 or even 90 days. But you don’t have to. Keep in mind, though, that the interest rates could change before you lock in.

Your lender will then give you a letter of approval or commitment letter. Times being what they are, many sellers/Realtors want this submitted right alongside the offer.Decide on a Realtor.

Don’t even look at homes without first finding a Realtor. And I’ll tell you why. I am nauseatingly consistent in telling people this: Realtors are just people. And there are good people and bad people . . . Some people are lazy. Some are air-headed. Some are indifferent. Some are just plain mean. You never want to be stuck with someone you don’t like or trust. Pick the Realtor you want.

There’s a little known term that most laypeople don’t know. It’s called “Procuring Cause.” What that means is that if a Realtor shows you a home that you decide to buy, you cannot then bring your own Realtor into the mix. There are disgustingly few exceptions. The first exception is if the Realtor that showed you the home is sweet enough to give up his commission out of the goodness of his heart and allow you your chosen representation. Enough said. The second is if your Realtor will guide you through the process and expend considerable effort and time without pay. Also enough said.

Finding a Realtor is easy. Talk to people you trust. Ask them if they liked their Realtor, and why. Good Realtors should get more business from word-of-mouth than soliciting folks at their doors.

Please, please remember, though, that Realtors aren’t perfect. We make the same mistakes that other humans do. Try and cut us a little slack when we don’t call you back right away because our phone fell in the toilet. Stuff happens.Search for a home.

This is one of the most enjoyable aspects of the process, but make it easier both on yourselves and your Realtor. Prepare. I know that when you’ve finally reached this stage, you’re chomping at the bit to “kick some tires,” but it’s important to narrow the search down first. Make a wish list. Write down all the things that are important to you. If you must have a first-floor master, write it down. If you want a basement but will do without one for the home that has a ton of storage space, leave it off. You don’t want to waste everyone’s time looking at homes you’re not going to buy, but you also don’t want to miss a terrific home because your criteria is choking it out.Writing the offer.

Once you’ve found your dream home, it’s time to make an offer. Your Realtor will hold your hand throughout this whole process, but I’ll address briefly what to expect. Having decided on the home to buy, your Realtor will do some research on your behalf. She’ll run the comps to find out if the home is priced accordingly, how many days it’s been on the market, etc.

Armed with all the information revealed by your Realtor, you’ll submit an offer on the home. It will either be accepted, rejected or countered. If the seller counters the offer, you will have a limited amount of time to respond with your own rejection or counter. Once the offer or counteroffer is accepted, you move on to the next stage.Inspections.

Your contract should allow you a time limit for inspections. Some states may require home or pest inspections, some may not, but they are highly encouraged. Let me put it this way: If I am your Realtor and you decide not to have inspections, I will require you to sign a Home Inspection Disclosure stating that I pleaded shamelessly with you to have inspections, but you declined and therefore release me from any liability resulting from said refusal . . . or words to that effect. Have inspections!

Many lenders will require you to have termite inspections. That’s okay. In Kentucky, the price for the inspection is minimal. But home inspections are equally (if not more) vital. For a few hundred dollars, you can find out beforehand whether or not there are any plumbing leaks, foundational instability, shingle damage, repairs and/or renovations that are not up-to-code, if your chimney needs tuck pointing or your tub drains slowly, whether your bathroom has proper ventilation or the attic has adequate insulation, whether there are electrical issues, siding issues, drainage issues . . . the list goes on. Again, have a home inspection.

Once the inspections are concluded, if you didn’t state in the contract that you were buying the home as-is, you can ask the seller to make repairs. Please don’t make the same blunder that some married folk find themselves making. You need to pick and choose your battles. If you can fix it yourself for minimal cost and effort, don’t ask for it. If it’s no big deal to you in the whole scheme of things, let it go. The mistake most people make is nickel-and-diming the sellers into wondering why they ever accepted your offer in the first place. Let your Realtor be your guide. A good starting point is safety. You want to make sure the home is safe before you pack it full of kids, pets and all your worldly possessions.Escrow.

Escrow is just the period of time from contract acceptance to closing. It’s boring, but you can offset the tedium or lessen the anxiety by packing. Now is the time to box up your possessions. Meanwhile, your lender is working to set the closing date and gathering any necessary paperwork that may be missing.Utilities.

Remember to call the utility companies a week ahead of the closing date to schedule the turning on or transfer of service for the day of possession.Closing.

This is it! Whether you’re jumping from the closing table into the moving van or waiting because you’ve given the sellers a few days to move out, you will own your home today! Be prepared to sign enough paperwork to line your new kitchen. Either before the closing agent sticks a pen in your hand instructing you to “sign here, here and here” or when he’s out of the room making copies is the time to ask the sellers what day is trash pick-up and whether or not that ugly bush is on your property or your neighbor’s.

But equally important, don’t forget to recommend your Realtor to others. We feed our families on commission!

Looking through the apartment listings can be a pretty confusing experience. Just what are the differences between a junior one-bedroom and an alcove studio? A convertible three-bedroom and a flex two-bedroom? Knowing the layout of each type of apartment and what features each type contains will greatly improve your chances of finding the perfect apartment rental for your needs and lifestyle.

Walk-Up Apartment / Low-Rise Apartment

A walk-up or low-rise apartment is located in a building that does not have an elevator (which means it might be a bit more difficult when you’re moving in). Walk-ups are usually older buildings that are less than five storeys high and may not have a lot of amenities such as laundry rooms, storage lockers or wheelchair accessibility. Generally, monthly rent for a walk-up is less expensive than the monthly rent for a high-rise apartment.

High-Rise Apartment

A high-rise apartment is found in a building that is generally six or more storeys tall. High-rise apartment buildings have elevators and often have onsite laundry facilities, pools, fitness centres, comprehensive fire alarm systems, and security systems to monitor tenant entry and exit. In addition, many high-rise apartment buildings feature onsite management staff to assist you in the event of an emergency.

Bachelor Apartment / Studio Apartment

     

A great choice for students, a bachelor apartment (also called a studio apartment or an efficiency apartment) is a small one-room apartment with a separate bathroom. The one room serves as a bedroom, dining room and living room and is usually connected to an open kitchen. Bachelor apartments can range from very small (just big enough for a sofabed and a desk) to very large (with enough room for a king-size bed and a separate sitting area and dining area).

An alcove bachelor (also called a convertible bachelor or convertible studio) is usually configured in an L-shape with a distinct area or nook for dining or sleeping.

1-Bedroom Apartments

A one-bedroom apartment consists of a living room, kitchen, bathroom and a separate bedroom equipped with a built in closet. Occupancy may often be limited to two people.

A junior one-bedroom usually implies an extra-large studio apartment that is large enough to section off a separate sleeping area or bedroom.

2-Bedroom Apartments

A full two-bedroom apartment has two separate bedrooms in addition to a living room. It may or may not have a separate kitchen. Bedroom sizes can vary widely, from a baby’s room or small office to an extra-large master bedroom suite.

A convertible two-bedroom apartment (sometimes called a “flex 2”) is actually a one-bedroom apartment, but it is large enough and laid out in such a way that a wall could be put up to create a second bedroom. Similarly, a convertible three-bedroom (or “flex 3”) is a two-bedroom apartment that can be converted into 3 bedrooms.

A wing apartment usually has two bedrooms as well as a small common area such as an eat-in kitchen, but no living room. These apartments are ideal for students or roommates who don’t require much in the way of common living space.

Loft

A loft can be classified as a big, open space with few internal walls. Usually the result from a commercial building having been converted into residential units, lofts generally have very high ceilings, extra-large windows and often have exposed plumbing pipes and columns.

Penthouse Apartment

A penthouse is an apartment on the top floor of an apartment building, usually featuring extra balconies or a rooftop deck. A penthouse is normally considered to be quite luxurious and is an extremely desirable (albeit expensive) place to live.

Basement Apartment

     

As the name implies, a basement apartment is located in the lowest storey of a building and is partially below ground level. Windows and proper ceiling height are enforced by city codes. This type of apartment can also refer to the basement on a house that has been converted to an apartment. This type of basement apartment may have its own separate entrance and may have its own bathroom, kitchen, laundry room and heating system separate from the rest of the house.

Duplex Apartment

   

A duplex is an apartment with two levels. This could include a true bi-level apartment with an enclosed upstairs and downstairs, or it could also be an open space with an extra-high ceiling and a loft or mezzanine.

Railroad Apartment

In a railroad apartment, there is no hallway. This type of apartment consists of a series of rooms that are connected to each other in a straight line (just like cars on a train), meaning a tenant will have to walk through each room to get from one end of the apartment to the other.

Balcony / Terrace

The terms balcony and terrace are often used interchangeably to indicate a railed platform extending from the outside of the apartment. It can be small enough to accommodate one or two people standing or large enough for a picnic table, lounge chairs and plants.

While experts can’t seem to agree from one moment to the next on the future of the housing market, one thing is unequivocally unanimous: what’s happening with the market today. Even though sellers are flexing their muscles and making jabbing and punching motions in the air, we’re still in a buyers’ market. And yesterday is the time to buy. Now exactly what type of house to buy can only be answered by you, but maybe the following information will help to make your decision easier.

There are three options available to homebuyers today: buying a new home, buying an older home and building your own home. But because this article is not entitled “Olde Home vs. New Home vs. Building Your Own Home From Scratch,” we’re only going to address two of the three options: old homes and new homes, and there are pros and cons to each. Let’s start with the old, then ring in the new. Advantages To Buying an Old Home

The most obvious advantage to buying an old home is character. While new homes can be sleek, all lines and bold angles, they don’t hold a candle to arched doorways, parlors, hand-carved banisters, stained glass windows, 12-foot ceilings, 7-inch baseboard, phone alcoves, octagonal rooms . . . and just the grandeur that defined the turn of the century.

Another benefit is that old homes have withstood the ravages of weather, children and pets for decades, even centuries. They’re solid! What’s going to settle has likely already settled. Not a whole lot in foundational “ahas”!

And not meaning to state the obvious, but here we are, old homes sit in old neighborhoods. Established neighborhoods. Some older homes have been passed down from generation to generation. Relationships develop over the life of a house and its occupants, and a watching-each-others-back mentality surfaces that can extend to folks buying into the neighborhood. You don’t just buy an old home . . . you buy an extended family.

While builders may exhibit a propensity for razing indigenous trees and shrubs, leaving a freshly shorn pate with which to create! create! create!, time has erased the folly of the earlier builders. What were once neighborhoods dotted with itty-bitty baby saplings have now become homesteads nestled within the canopy of trees in the prime of life.

Finally, because the most common means of locomotion were your own two feet, people built their homes closer to their entertainment. Or more aptly, they built their entertainment closer to their homes. Disadvantages To Buying an Old HomeMore work! If it seems that there’s always something needing to be fixed or updated, it’s because there is! Unless the building had been gutted and restored before you called it home, you may want to tuckpoint chimneys and stone foundations, level sloping floors, ground electrical outlets, remove cracked plaster, replace plumbing, update the kitchen, bath, furnace, windows, and yes, add central air. Although once the old home has been nipped and tucked, what a showplace it could be! Asbestos. Enough said.

Old homes are notorious for their smaller closets, garages and storage spaces. Photographic data actually exists proving that people groups from the early 20th century were not all under 5-feet tall and skinnier than a runway model; however, that’s not reflected in their homes.

And don’t think to use the basements for storage or living space, because many are nothing more than a soil-based cellar accessible only from outside the home.

Lastly, the layout of the old home is not conducive to large gatherings . . . at least gatherings with which folks can be in the same room at the same time. Yes, the parlor was big. Yes, the living room was grand. And yes, sometimes the foyer was spacious. But they all had one thing in common. None of them were open to the other.

Having now listed the pros and cons of old homes, it’s time to address the new. Advantages To Buying a New Home

The most obvious advantage to a new home is that everything’s new. There’s an emotional factor at play here. There’s nothing like owning something that’s brand new, never been used, whether it’s a car or a home. Probably a lot like how Neil Armstrong must have felt before everyone else starting traipsing all over his moon.

Best of all are modern conveniences, such as a built-in dishwasher and stove, more bathrooms (and with shower heads!), and A/C, to name a few. While most of us might enjoy the occasional roughing-it of camping out, no one really wants to live at a campsite! Builder’s warranty. Whether it’s one year or ten years, it’s better than nothing!

And even though many new homes feature cathedral and/or trey ceilings, they’re still more energy efficient than the older ones. Think insulation in the walls, ceilings and floors. Think double- or even triple-pane windows. Think 90% efficient A/C as opposed to, well, no A/C.

One HUGE bonus for new homes are the neighborhood amenities. Today, if you’re not on a golf course, you’re near one. If you don’t own a pool, the neighborhood association will. Bike paths, common areas and playground equipment are the norm.

And last but not least, new homes are more user-friendly. Rather than just throwing a home together with all the essential parts, builders are taking into account the desires of the consumer. Open floor plan, split floor plan, functional basement, Jack-N-Jill baths, his/her vanities, first floor master, and the list goes on. Disadvantages To Buying a New Home Less individuality. Because buyers have many of the same desires, floor plans are becoming virtually indistinguishable from one another. There are exceptions, of course, but rarely do we find a reasonably-priced home that boasts a two-story library.

Most of the rest of the disadvantages of new homes can be found by reversing the advantages of the old home. For instance, immature vegetation, foundational settling, longer commutes to downtown, etc.

In the end, however, it is all in the eye of the beholder, and there is a market for every style, age and color of home. The only right choice is the one that’s right for you!