The Benefits of Hiring a Real Estate Consultant
Do you invest in real estate? Is your business as successful as you feel it should be? You might consider hiring a real estate consultant. Real estate consultants can focus on a number of different aspects of your business. Real estate consultants can specialize in many different aspects of the real estate business, or they can provide comprehensive consulting services.
One approach to real estate consulting is through management consulting. This would entail the consultant taking a close look at your business practices and determining what you are doing right, what you are doing wrong, and what you are doing right but could be doing better. For example, have you set measurable, testable performance benchmarks? Do you have a sound, practical business plan? A good real estate consultant can help you structure your business practice in ways that will help ensure success. They can provide support, , motivation, knowledge, and help you know where to focus and learn to keep our focus there.
Another type of real estate consultant is the type of consultant that performs research. This research may consist of market research. Market research will help you determine which types of properties best suit which type of customer, as well as who is buying. Market research can also highlight demographic trends that will impact your business. Wouldn’t it be great to buy up the next hot, trendy neighborhood well before everyone else gets there? There is some luck involved, but you don’t need to read the tea leaves or consult oracle bones. Most of what you will need to know is present in what’s happening on the ground right now. A consultant can mine the vast reams of data present in any market and help you spot these trends.
Real estate consultants often offer other types of research as well. For example, if you are thinking of taking your real estate investing into another market, and thereby diversifying geographically, real estate consultants can advise you on local real estate law and zoning practice. They can also advise you on tax planning for your real estate investments. Real estate consulting firms can also do boots-on-the-ground research, such as locating properties that you can potentially invest in. This would give you a leg up on competitors not employing such research as you may find properties well before everyone else is aware of the opportunity.
These are just some of the many potential benefits of partnering with a real estate consultant for your real estate investment business. The right real estate consultant can help you firm up your business practice in exactly the areas where you need help, whether it be managing your business, performing market research and anticipating investment trends, or advising legal, zoning and tax planning aspects of your business. Real estate consultants can give you a clearer picture of what you need to do for your real estate investment business to thrive, and help you plan the roadmap to get where you want to go, as well as set achievable benchmarks—and achieve them.
Peter Vekselman
Ten Pieces of Home-flipping Advice
First piece of advice: remember that bad things DO happen. As with just about every project in life, no matter how well you prepare and plan, there will be unforeseen obstacles and accidents that you’ll have to overcome. Be prepared to play “defense”.
Second piece of advice: information is power. Find out everything you can about a property before buying it. Know how much the bank or seller has invested in it BEFORE you make an offer on it. Also, learn everything about the locality and nearby areas.
Third piece of advice: keep organized records. Record the miles you put on your vehicle. Save your receipts for tools, meals, paying your workers, etc. You’d be surprised how much you can deduct on your taxes. Consult a CPA to take full advantage of your write-offs.
Fourth piece of advice: don’t count out lawyers. For added protection with legal issues, consult a lawyer. Have a lawyer review all legal paperwork for you. They are truly worth their weight in gold.
Fifth piece of advice: pay by the job – not by the hour. Your hired help will work harder and smarter if they are paid by the job. Jobs should be separated by phases – for example, the “demolition phase” or the “bathrooms” phase.
Sixth piece of advice: get everything in writing. This truly applies to all agreements between you and anyone you hire. Make it clear that you must be satisfied with a particular job BEFORE paying any money.
Seventh piece of advice: keep the workplace clean. It’s easy to lose track of that drill you were using yesterday or that box of nails that you bought two days ago. Only remove materials from your “pile” that you’re going to use and at the end of each work day.
Eighth piece of advice: stretch your holding costs. There is absolutely no reason to pay a utility bill or a mortgage payment way before their due dates. Don’t be late with them, but don’t be super-early with them either.
Ninth piece of advice: stay in the loop. Keep yourself well-informed by frequently inspecting the progress being made (if you’re not doing the work yourself). Constantly ask your staff if they need anything: more help, special equipment, etc. Make sure your house remains secure by testing the windows and doors occasionally.
Tenth piece of advice: scrapbook. Some investors maintain a scrapbook of their projects by taking pictures at various phases of the rehabilitation. Daily journals are another great way to record your projects.
Generally speaking, if you stay organized, informed, and ready for any obstacle or unwanted surprises, you will have many successful projects in your home-flipping future. Build a network of contacts, such as potential buyers, city workers, plumbers, electricians, etc. Most importantly, don’t risk more than you can afford to. Your first rehab project should be nothing more than a part-time, weekend hobby.
For more free articles and previews to The Field Guide to Flipping Homes, visit the official site at www.homeflippingfieldguide.com
Matt Sheuerman
With the Current Stock Market Malaise, Investment in Phoenix Real Estate Makes Even More Sense
The Phoenix residential real estate market represents a great opportunity to individuals, families, and investors who are weary about the stock market and are realizing that their investment portfolios are too exposed to fluctuations in Wall Street.
By now, the reality has sunk in with most people – the stock market’s decline has hit 401K and other retirement investments hard. As a result, this is a critical time to for individuals, families, and investors to rethink diversification of their portfolios again. Portfolios need to be more highly diversified than ever before.
And it’s time to rethink real estate as one component of your diversification in the future in addition to stocks, bonds, commodities, international investment, and low-risk savings instruments, to name a few.
Wall Street, Main Street, and My Street, and Real Estate
There is no doubt that the goings-on in the real estate industry are intermingled with the market challenges that Wall Street is facing, which in turn impacts Main Street and “My Street.” But the issues with real estate largely emanated from the many corporations that make up Wall Street combined with lack of government oversight and inaction. Lack of personal discretion also contributed to the problem.
Having said that, here is why real estate should be a component in your investment portfolio once again, and why the Phoenix real estate market is an excellent choice for investment to help you diversify that portfolio.
First, due to the wave of foreclosure-related properties, prices have declined to 2004 and even 2003 pricing levels. This is pricing that is pre-run up. Though there is a risk that prices may drop further, the extent of a further decline may be limited in the short term while the long term outlook gradually gets stronger.
Second, real estate can prove to be a more reliable investment in a normal market environment. Prior to the run-up in home valuations in the second half of 2004 through 2005, annual home appreciation in the Phoenix residential real estate market averaged 5%-6% . Playing the long game as investors should, holding a property for 5-20 years could yield a solid return.
Long term is key here. The investor has to be committed to a lower but steady return on their investment when it comes to real estate. The Phoenix housing market will not likely experience a meteoric rise in valuations like it did again. That’s not to say that there won’t be some opportunities to turn properties fast (whether through acquisition at a foreclosure auction or wholesale, or a flip), but this model will have the high risk that most investors will and should shy away from.
One note here. At least in the Phoenix area, investors have to weigh the merits of investments in homes and real estate by several components to get a true picture of the return on a property. These factors are growth in appreciation, rental income and offsets, tax benefits, and equity paydown and buildup.
Third, real estate is real. You can see it. You can touch it. You can check up on it (if you buy locally). And it will always hold some intrinsic value no matter what happens. If you have a home in Chandler, it is easy to get across the Phoenix area, to check up on an investment property in Glendale. Or, perhaps the investment property you choose is right next door to your home in Tempe.
Fourth, under certain circumstances, real estate taxation on capital gains growth can be minimal. The same cannot be said of many other investment vehicles.
Fifth, an investor has much more control in determining the value of the property. Smart improvements and renovations combined with effective property management can increase the value of the property substantially.
Sixth, the Phoenix area continues to grow. The Valley saw a 2.8% increase in the number of residents here last year. This trend will continue as Phoenix and surrounding areas are perceived as a stable, optimum climate to live and to work. With the decline in real estate prices, this perception will also be reinforced by a sense that Phoenix and surrounding areas are once again affordable.
Finally, real estate can serve a dual investment/personal objective. For instance, an investment in real estate can serve as a later gift for children. Or, it can be utilized as a sort of savings plan for children’s college tuition as a complement to 529s and Coverdell plans. The investment could be a retirement property for later in life. Real estate investments can also be used to create income streams to live off of (when rents and equity buildup eventually turn the property cash-flow positive).
There are numerous reasons to invest in real estate even beyond this list.
Real Estate Has A Role to Play in Your Investment Portfolio
The difficult truth about the stock market is that over the past eight years, the U.S. economy has seen two major disruptions or recessions that were severe enough to have rippling effects for all Americans as seen by the decline in 401K and other retirement savings values. As a result, further diversification of investment portfolios is needed across many different asset classes with a regional focus as well.
Real estate should be one of those classes. Given real estate has seen real substantial pricing declines over the last three years to levels seen before the run-up period, one has to consider that there are real deals in the marketplace for real estate. Coupled with the right long-term outlook and commitment to investment fundamentals, real estate can have a more effectual, countervailing purpose in investment portfolios that can help Americans better weather substantial market disruptions in the future. For investors looking for specific markets that may be worthwhile to investigate, real estate in the Phoenix area is a compelling choice.
David Lorti
Get Expert Advice Urges Trade Body in Morpeth Flood Aftermath
A trade body representing the flood damage repair industry is urging property and home owners in Morpeth to get in touch for professional advice following the recent floods.
The Property Care Association (PCA) suggests householders affected by water damage get expert help on how to care for their homes.
Earlier this year the PCA developed the Flood Remediation Group in a bid to tackle a spate of problematic repairs to flood damaged buildings, including Hull, which sustained severe flooding in 2007.
The PCA’s Flood Remediation Group has held discussions with organisations including the National Flood Forum, the Royal Institution of Chartered Surveyors and the Building Research Establishment in two key areas - to standardise more effective flood repairs after homes have been affected and to develop ways to help make homes more flood proof.
Part of the Group’s remit is to use the expertise of PCA members – who specialise in waterproofing buildings, as well as damp proofing – to tackle the issue.
Yasmin Chopin, chief executive of the PCA, formerly the British Wood Preserving and Damp-proofing Association (BWPDA), said: “We would urge people to be aware of ‘cowboy contractors’ offering a quick fix solution.
”In areas such as Hull, we have seen some householders suffer because contractors with little or no understanding of the effects of water in buildings have carried out remedial work.
”Homes have been repaired and then around six months later householders are dealt a double blow because the property is blighted by damp and they have to leave their home again for more repairs to be carried out.
”PCA members can offer professional advice on drying-out buildings and what work needs to be done afterwards.
“They can also measure and monitor damp levels and prevent damp, dry rot and other problems taking their toll on a structure months, or even years, later.”
The PCA is a member of TrustMark, the scheme supported by government to help property owners find reliable and trustworthy tradespeople to make home improvements.
To join the Association, contractors are all carefully vetted before being awarded membership – and are then subject to rigorous auditing procedures once admitted.
The PCA has a dedicated page of advice about flooding at http://www.property-care.org/about-us/flooding or contact 0870 1216737.
ENDS
Notes To Editors
The Property Care Association (PCA) has been in existence for four years as part of the British Wood Preserving and Damp-proofing Association (BWPDA) but in 2006 officially became an independent association, along with the Wood Protection Association. The new Associations have been created to concentrate on their own areas of expertise – namely for the Property Care Association damp proofing, structural waterproofing and structural maintenance. PCA contractors are authorised to use the Association’s new logo, and this can be seen in directories such as Yellow Pages, newspapers and other publications for identification to potential customers. Although a relatively new trade body, the Property Care Association has inherited the stability and professional strengths of the BWPDA and its 75 year history. This includes the choice of a long-term FSA regulated specialist insurance policy, and a UK-wide list of contractor members who are all carefully vetted before being awarded membership – and are then subject to rigorous auditing procedures once admitted to the Association. Press release issued by Jane Shepherd of Shepherd PR Limited, 01538 308685, mobile 07985 129315.
Jane Shepherd
Peter Gilchrist management intensive 2day Real Estate Training Bootcamp
A high powered, fast moving 2 day “how to” workshop looking at these four different roles in the real estate office.
There is a large difference between leading and managing the team. Come and explore the difference and how to maximize your time in each role.
A step by step guide to successfully leading a Real Estate Office into real market share and real profit!
In this seminar Peter will explore all methods of making sure you stay on the front foot as markets move.
http://www.rtiaustralia.com.au/seminars-and-events/management-intensive-2-day-bootcamp-with-peter-gilchrist.php
Duration : 0:7:59