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Article by Seattle Real Estate Reel

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Article by Seattle Real Estate Reel

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Article by Seattle Real Estate Reel

Article by Seattle Real Estate Reel

More Real Estate Articles

The term ‘flipping’ denotes the purchase of a revenue generating asset and reselling it immediately (flipping) for profit. The asset here may even be real estate or IFOs (Initial Public Offerings).

The only thing in the world whose value continues to rise (and sadly it cannot be manufactured) is that of land. One can never really have enough of it. Flipping real estate is an excellent means of quick income in areas with high land value. The profit from flipping real estateis either obtained from buying cheap and selling high, or buying a piece of property and fixing it up before selling it. The ‘fix and flip’ procedure is comparatively a long-term investment requiring careful planning. The buyer has to research the land value, market trends, repair costs and resell value.

The investor will probably buy a dilapidated house at a throw-away price (often much lower than the actual value). The ‘throw-away’ price arises from different conditions, and the investors look for them—major renovations, relocation or pending foreclosure of the owner etc). The buyer will then renovate and repair the house and sell it rather quickly closer to the market value of new houses, thereby making a substantial profit.

However, flipping is also considered a criminal offence sometimes. Flipping propertyillegally is considered a scheme where a person commits fraud to make profit—a property bought low is sold at a substantial profit by inflating its value artificially.

As formerly said, the property is sold off in a relatively short time period. Almost all the times the repairs and renovations are only cosmetic in nature. So the ultimate buyer may be duped in such cases.

But, in some scenarios the house, after renovation, is in better condition and lasts longer. Thus, it can be sold at much higher price later as land and property value generally go up and rarely down. There is another important advantage. An overlooked and unkempt area attracts anti-social elements thereby driving out persons living responsibly, which in turn attracts more of the former. This continues to degrade the locality. However, a mass renovation generates local jobs and increased sales for local vendors. The rejuvenated homes will usher new populations and boost the local economic growth. In addition the newly developed homes acquire higher asset values thereby bringing more property tax revenues. This is especially beneficial to the local governing bodies to do more renovating work.

Related Real Estate Articles

Article by Seattle Real Estate Reel

Article by Seattle Real Estate Reel

Related Real Estate Articles

Article by Seattle Real Estate Reel

Your negotiations skills will be put to use, not only in the process of creating an offer and working to get it accepted, but also with your contacts, brokers, buyers, sellers, engineers, and lenders. In any situation where there are more than two interests, you can rest assured that negotiations must take place in order to satisfy everyone’s goals.

Many people are afraid of negotiation, usually due to lack of experience. Once you begin practicing your skills, it will get easier for you, and may even become fun! Negotiation is filled with tactics and problem solving that are used to yield the best results for each party. Being a good negotiator is very important to this business.

There are different negotiating styles that work for some people, and not others. For example, some find success with a very strong, even intimidating approach in negotiation. I prefer to use a straight forward approach. I am prepared, informed and persuasive. I am confident, as I have anticipated the questions and concerns the other party may have, and will answer them, as needed. This helps me to clearly and confidently negotiate terms. As a result, closing deals is often easy and fun. It is true that different styles should be used in different situations, so study others who negotiate and develop a style that works best for you!

In commercial real estate, as in most businesses, it is best to yield to an agreement that is win-win, meaning both parties are satisfied with the results at some level. If the strongest concerns of each party are addressed and a solution results, the agreement is of mutual benefit to both parties.

If you are not familiar with negotiation, I suggest that you take a class, purchase a book, or find a seminar that covers the basics of negotiation. There are many generic tips and tactics that will sharpen your negotiation abilities, and make it easier for you to get what it is that you want out of an opportunity.

In commercial real estate, there are specific negotiation tactics that can be written into contracts. Many of these tactics require some creativity and are specific to certain situations. Don’t be afraid to get creative; after all, this is where commercial real estate gets really fun! You’ll be surprised how you don’t have to have everything figured out when you put a property under contract!

In commercial real estate, it is always a good idea to write a letter of intent before actually purchasing a property. In residential real estate, a letter of intent is usually not necessary, but in commercial real estate, I consider it a necessity.

The letter of intent should be clear, concise and not in legal format. It should appeal to the owner as a direct, personal letter, explaining your purchasing intentions with the property. Many people put in terms, closing dates, length of due diligence, and so on in the letter of intent. Negotiation can take place here, without any money being permanently spent by the buyer, or a deal completed. It can open a dialogue between you and the buyer, and start negotiations early in the game without anything being set in stone.

Another tactic that can be written into the letter of intent is known as an option contract. This option contract is a good way to investigate the property; you then have time to begin putting together a deal to make sure it is feasible. You can offer a certain amount of money to tie up the property in order to do some initial research, and not even mention closing a deal yet. This is a great option that can allow you to decide to move on with a property and begin negotiating, or simply move on to the next opportunity in a short amount of time. The option can be as simple as 15 days to do some preliminary work with ,000 at risk. At the end of the 15 days, you may option for a full due diligence period and continue with the purchasing process.

When negotiating an offer, and you still have some questions left unanswered that will be unveiled during the due diligence, you can always write an item subject to or contingent upon the ability for you to do to the property what you intend. For example, if you are purchasing raw land zoned R-1, single family housing, and the broker mentions that the city would be supportive of rezoning the property commercial, which would greatly increase the return on investment, then you could write in the contract that you will purchase the property if you can get the property rezoned to commercial. This is done often, and works with many different variables that could affect the use of the property.

Writing in contingency clauses can be a great way to protect your interest and make sure that you end up with a property set up properly with a favorable exit strategy.

As we all recognize, seller’s have specific needs that need to be met. A buyer may really want to take the opportunity that the property would provide, but realizes that he or she may not be able to satisfy all the needs of the seller up front. A negotiating tactic that would work here would be for the buyer to satisfy the seller’s needs in two or more parts.

The buyer could set up two dates to pay the seller- with money in the beginning, and then money at the end of a certain period. This would allow the buyer to take the profit that he made from the property, and give the seller his money. As long as you satisfy the basic, up front needs of the seller, he or she may be willing to accept these terms, and you are on your way to fulfilling another opportunity!

As there are many other negotiating tactics that you will create to satisfy the requirements to make a solid deal, there is a really great tactic that allows you to continue to invest money into commercial real estate without paying taxes on capital gains! This option was made possible through the Internal Revenue Service tax section 10-31, better known as the 10-31 Exchange. This allows for sellers to use the profit from the sale and reinvest it in another commercial property without paying one cent in taxes! Can’t get much better than this for investors!

There are investors who are strictly involved in 10-31 exchanges, and it is a great way to keep the cash flow moving from one property to another with the benefit of full profits and no taxes. Sometime this tactic is a great choice and should be added to the contract when it can be optimized.

As you can see, the negotiation tactics in commercial real estate are there to protect your interests and maximize results. Be creative with these negotiations, and always be confident when walking into a deal. Be prepared, informed and persuasive. It is also necessary for you to keep your emotions at bay and your ego out of negotiations. You have to be prepared to walk away from any deal that cannot be made to fit your needs.

Always make an effort to sharpen your negotiating skills, and finely tune the tactics you use to increase your bargaining power. Having a few extra ?tricks? up your sleeve will enable you to make a deal in your favor and get the results you want.

It was 2005 when people thought twice to buy the commercial or residential property in India due to the high prices at constant rate. However this is not the scenario today, in 2010 has witnessed a gradual fall in the rates of the India properties. In spite of the fall in the indian property rates the real estate agents, property dealers, real estate consultants and other property investors still shows an equal demand to buy the property in India as it becomes the right time to invest wit an India property. India with 27 states and 7 union territories comprises all types of properties including shopping malls, showrooms, entertainment zones, commercial complexes, housing societies, apartments and many more. Different cities of india are known by their own unique infrastructure and architecture trends. Mumbai, Delhi, Hyderabad, Pune, Chennai, Noida, Gurgaon, Chandigarh, Thane, Nagpur, Bangalore, Lucknow, Faridabad, Ghaziabad are some of the favorable destinations for accommodating world class infrastructure to their resident. All these states and cities of India are well known their prime location for doing business and investment purposes.

From previous few decades the rates and prices of Indian properties have been rising at constant rate. It makes the home loans providers on the top of the list where they can offer wide verities of home loans schemes and programs to the society. To buy the property in India one needs enough budgets with high amount of investment and commitment towards the property however for rental property dealers in India it would not require so. Buying dream home in india means you must have knowledge about real estate glory in order to sign fair dealing. Real estate glory includes agreement letter, acceptance letter, allotment letter, approved plans, fixed rate of interest, sale deed, EMI and many more. Here in India you will number of home finance companies that offer detail information about how you can apply for the required home loan. Like ICIC, IDBI, AXIS, SBI, HDFC, PNB, LIC and many more are there well known for their quality and home door services.

Apart from home loans providers, here you will also find huge number of property dealers scattered in different cities and states of the nation providing all types of reliable and useful information to their interested clients. All these prove to be worth out while buying or selling property in India. There are many regions in India that have got an unexpected development in their infrastructure in previous few years attracts property dealers and other real estate agents to get investment with those regions of india. Hence, it is advisable to all people to concern with property dealer or real estate agents before entering into any property deal. Best and reliable property dealers are available in India for anyone interested to buy or sell properties in India. Apart from these, 123realesates bring you will all types of detail information about real estate in India including interior designers, architectures, buying first home, residential and commercial properties in india home finance companies and lots more. Therefore, be a part of an emerging sector for investment and business purposes.