Where To Put Your Money

Where To Put Your Money

As in many aspects of life, the key to real estate investing can be location, location, location. While real estate is perhaps more complicated than hoping for foot traffic at a restaurant with a prime location, location does certainly play a part in the possible viability of a rental property. There are a few things you can look for in the area of your possible real estate investment that can tell you some important things about the possible long-term health of your potential investment.

Check For Growth

Is the area you’re looking at experiencing strong population and job growth? These are two important economic indicators that can help you decide whether a particular area is ripe for real estate investment opportunities. Local government web sites and federal reports are readily available with population and job growth information.

While the benefits of an increased local population are obvious, job growth that exceeds that population growth level can indicate a prospering community with money to spend. Areas that prosper are potential candidates for increased rent payments over time, one sure way to put you on the road to profitability with your real estate investment.

With job growth comes quality of life and as qualify of life improves in the area of your investment, so too grows the level of rent you can charge. It is a tried and true fact that people will pay more to live in an area they enjoy, so the prospect of an area growing more and more attractive will directly influence the financial state of your potential real estate investment.

The Real Estate Market

What is the construction atmosphere of the area like? Areas that are seeing a boom in new home construction often experience those booms because of favorable job growth, income growth and other factors. However, for an area where building permits are outpacing new population, that could be an early indicator of an over supply of real estate that could lead to depressed prices for rent payments.

The best case scenario is an area where few homes are for sale, pumping up demand, and where new home construction is strong but not out of control. That can be a fine line, but because any investment takes a great amount of homework and research, it is something that should be investigated over the course of your decision-making process on a new investment.

The Land Crunch

Just as a low supply of homes on the market can produce an upwards trend for housing prices and, subsequently, the level of rent you can charge, so too can a low level of land available to build on. In an area where population is growing and jobs are strong, all of these new people have to go somewhere.

Whenever more people want to move into an area than there are homes for those people to live in, you will see an upward slope for home prices and viable rent payments. If there is little land left to build on, those buildings that are already built will be able to charge more for their rent payments, putting your investment further towards profitability and the long-term benefit of owning property in an attractive part of town.

All of this initial information will not guarantee a profit on a rental property, but these are crucial steps to take when evaluating whether you want to put your hard-earned money into a real estate property that is sure to experience the ups and downs of the local economy. Especially for properties outside of your own home area, knowing the state of both the growth of the population and the home construction industry will help you more accurately predict the future viability of your investment.

This is another original article by Joe Lane, co-owner of The Lane Real Estate Team at http://www.joelane.com/. Are you looking for an experienced Tri City WA Real Estate agency? With 20 years of service based, business experience, Joe and Colleen Lane work hard to serve home buyers and sellers for the Tri Cities of Washington’s Kennewick, Richland, Pasco, and surrounding areas.

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      I believe that selling a home in Nutley in today’s economic environment has to be a “PROACTIVE” approach, no longer can an agent take a listing agreement throw the home up on the Nutley MLS and hope that its sells, we are just not in that type of market My approach to home selling in Nutley is very different than many of the other agents in Nutley NJ.

      I use all the latest selling tools and technology to market your home in Nutley ie: Web, Social Media, Text Alerts, Personalized direct mail and more. I also use the conventional means as well, I like to create a buzz around your home or real estate you are selling and I treat it just like we would a marketing campaign in Nutley, combined with the Coldwell Banker Residential Brokerage Brand We Market Your Nutley property Several Different Ways, Web, Social Media, Print, TV, Radio, Ask about our “LEAD ROUTER DIRECT RESPONSE” Marketing Program & our Coldwell Banker Home Warranty if your agent does not offer this they are not a COLDWELL BANKER Residential Brokerage.

      Here are some of the marketing components I use to get your home sold:

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      -Lead Router Online Marketing System (*Coldwell Banker Residential Brokerage Only)

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          Discount points are paid towards the lender during closing to lower the interest of the mortgage rate. The points are the same as a pre-paid interest of a loan that a borrower will take out for a new home. Each point is equal to one percent of the total amount of loan. The total points that a borrower can choose depends on how much he or she wants to lower the rate of interest. Either the buyer or the seller pays for the discount points or they could split the fee in half.

          Origination points are used to pay for the expenses of obtaining a loan. These points are less popular compared to discount points because they do not offer the borrower valuable benefits and they are not tax deductible. It would be better for a borrower to look for a loan that does not require getting these points. Remember that not all loans require points paid. Some mortgages do not require points while others do. The borrower has to decide whether he or she wants to pay the discount points and a lender will determine if origination points are needed so the borrower can obtain a loan.

          Several factors will help the lender decide whether to charge points. A borrower’s credit score, which reflects his or her credit worthiness, is a major factor in determining if points are needed. The credit score and other factors reveal the riskiness of a loan for the bank to establish not only if points are required but how many points are assessed. If the lender determines that points are required, these should be properly disclosed to the borrower. In general, costs and points explanation is included in the good faith estimate that the lender provides to the borrower. The borrower will then determine how much is the loan amount and the cost of the points and choose a lender that provides the best deal.

          Regardless if paying points make sense depends greatly on how long you intend to keep the loan. A mortgage calculator can help you decide. When using a mortgage calculator, you have to calculate how much the monthly payment at the rate of interest is charged if you are not going to pay mortgage points. Next is to calculate the amount of monthly payment at the lower rate if you will pay for mortgage points. Deduct the lower payment from the higher payment to determine the amount saved each month. Divide the amount charged for the points during closing with the amount saved each month. The result is the number of months you have to keep the loan in order to break even on paying points.

          Author Resource:- Consider desert estates in Real Estate for Sale in Desert Estates Scottsdale AZ, MLS Real Estate in Desert Highlands Scottsdale AZ and Homes for Sale in Desert Mountain Scottsdale AZ.

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              Are you a new real estate agent in Nutley, Belleville or Clifton NJ? There are some things you should know before you decide which office to hang your licences at.

              Too many new real estate agents think a real estate broker choice is primarily based on commission splits. It’s not all about the split, as the final in-your-pocket income has to do with many variable services provided by brokers.

              It’s not all about the split!

              New agents shouldn’t focus too much on the commission split aspect when choosing a real estate broker. There are so many services that are available from brokers and they may be things that you really need to get your start in the business. The end income result can be more in your pocket with a lower split depending on leads provided and service fees.

              Determine your expenses so you’ll know what you need for income.

              Before you can accurately compare the service offerings and commission splits of two real estate brokerages, you first should know your income needs based on personal expenses and projected new real estate agent business expenses.

              Using the link to the free spreadsheet, get an idea of what you’ll need to survive and move your business forward. Then you have the knowledge to make better brokerage comparisons.

              Compare Broker Lead Referrals With a Prospect Income Funnel Approach

              Using the income funnel approach and the spreadsheet in the link, you can ask real estate brokers how you’ll receive leads and prospects. What are their projections for floor time leads, phone leads on up-time, web site leads, etc? Use these estimates to fill in your funnel sheet and see what income will come out the bottom.

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              Mentoring and training mean more to some than to others.

              Most new agents definitely need training in contracts, negotiating and procedures that are predominant in their market area. However, when it comes to sales/marketing training, or motivational things, your needs can be quite different than those of the next person.

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              Some offices will not allow you to Brand or build your book of business (which is very important) you will always be a “Buyers Agent” and not be able to generate your own leads and list homes, that is one model. Make sure your broker has no confilct of interest with the marketing area your office is in.

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                Applying for a loan is much like applying for a job. After looking through the various types of positions available, you submit a resume and hope to get the call to come in for an interview. Your credit report functions much the same for a loan application as a resume does for a job application. A lender can see your financial history, current condition and forecast from there a level of risk.

                Just as a great reference can make your resume sparkle in the eyes of a potential employer, so too can home ownership make your financial history jump off the page for a potential lender. Home ownership implies a steady stream of income, financial stability, the intention to plant roots and most importantly, the ability to repay a sizable financial commitment. Naturally, missed mortgage payments can undo all of that benefit, so only a strong mortgage history will help you.

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                So, as you go through the process of searching for a home in Nutley NJ, it is of course true that you will be providing security for yourself and a foundation for your future. However, you will also be gaining a significant financial advantage should the need arise to take out a personal loan of any kind. These situations are often sudden and surprising, so having the kind of safety net home ownership can provide is a significant benefit and one that should not be neglected through your pursuit of a home or even during the choice to even purchase a home or not.

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                  This Home Is A One Of A Kind! Backed To Booth Park PRIVACY ABOUNDS!

                  Home For Sale in Nutley NJ

                  3 Bedrooms, 2 Baths, Living Room, Dining Room, Private Yard, Deck So much more…Call 973-846-0065 For more info.

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                    1) Meet agents out in their working environment, not in their offices. Good agents spend very little time at their desks.

                    2)Make sure the agent has closed many properties and has worked a few years at least. The average real estate agent closes only 1 or 2 houses a year. More closings mean more experience.

                    3)A great place to meet agents is at open houses. Don’t worry that you are not interested in that particular property. The agent knows that open houses rarely produce a buyer for that home and use the open house as a tool to find buyers.

                    4)Make sure your agent is online. Having a web savvy agent is very important today as over 85% of all buyers initially see their homes online. Great agents have laptops and often have moved to mobile technology to assist. A real estate agent in today’s world must email, text, and be available to buyers and sellers alike. Also must understand Search Engine optimization and not have to many assistants

                    5)Look for signs that the agent is busy. A hard-working, go-getter of an agent is good. Be careful, sometimes they are too busy. A real estate agent can only effectively work with about a half-dozen buyers and a dozen sellers at any given time to properly give the time needed to a buyer. If they pass you to an “assistant”, move to another agent that will give their time to you.

                    6)See how the agent’s MLS listings come up in searches. When listing in todays market, all listings from small to big should have professional photos – this is the first sign of a professional real estate agent who understands todays market.

                    7)Check the references that an agent should be able to provide you. Ask the other real estate agents you interview if they know the other agent and if they respect them as a real estate agent. If they start bad mouting another agent move on.

                    8)Ask “Can you recommend service providers who can assist me in obtaining a mortgage, making repairs on my home, and other things I need done?” Keep in mind here that a real estate agent should generally recommend more than one provider and shouldn’t receive any compensation (ethical issues tend to arise when this happens).

                    9)Ask Who the agent is working for in the transaction, the buyer or the seller (a real estate agent selling a house almost always works for the seller and tend to spin things a sellers way)

                    10)Ask “How will you keep me informed about the progress of my transaction? How frequently?” Using what media? Again, this is not a question with a correct answer, but that one reflects your desires.

                    11) Last but not least find out what your agent is doing from Friday to Sunday, if they are not working two of those days I would look for another agent.

                    To get a home sold in Nutley, Belleville, Clifton or Bloomfield NJ Call Matt@ 973-846-0065

                    http://www.HomesInNutleyNJ.com

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