Discover the Power of the Flat Rate Realty Group Blog: Your Ultimate Guide

Welcome to Flat Rate Realty Group’s blog, a premier resource tailor-made for homebuyers, sellers, and investors exploring Colorado real estate in Colorado Springs and beyond. Our mission is clear: to empower you with trusted, actionable real estate knowledge that drives confidence and success in your property journey.

With today’s real estate market evolving rapidly, having an expert guide can make all the difference. That’s why our blog combines in-depth market analysis, detailed how-to guides, insider tips, and regional neighborhood insights — all framed by the proven Flat Rate Realty model of exceptional customer service paired with flat-fee savings.

Why Read the Flat Rate Realty Group Blog?

  • Expert Local Insight: We live and breathe Colorado real estate — sharing first-hand neighborhood trends, market stats, and investment opportunities.
  • Cost-Saving Strategies: Learn how our flat rate commissions save typical sellers about $10,000 in real estate fees while receiving full professional services.
  • Comprehensive Guides: Step-by-step instructions for buying, selling, negotiating, and financing homes or land in Colorado efficiently and stress-free.
  • Buyer Rebates and Incentives: Exclusive details on programs offering rebates up to $3,500 for buyers who list through Flat Rate Realty.
  • Market Updates & News: Stay current with regional price trends, inventory updates, and economic drivers impacting Colorado real estate.
  • Real Client Stories: Authentic testimonials showcasing how we’ve helped buyers and sellers save money and achieve goals.

What You Will Find in Our Blogs

Our blog covers critical topics, including but not limited to:

  • Colorado City and Neighborhood Guides: Detailed posts on communities like Colorado Springs, Castle Rock, and more.
  • Real Estate Market Trends: Analysis supported by data from sources such as the Colorado Association of Realtors.
  • How-To Guides: From preparing your home to sell, home inspections, appraisal tips, to navigating loan approvals.
  • Financial Tips: Optimizing buyer credits, financing options, costs breakdowns, and tax considerations.
  • Flat Rate Realty Service Deep Dives: Understanding our unique flat-fee approach and how it benefits you directly.

Step-by-Step: How to Maximize Benefits Using Our Blog

  1. Identify Your Goals: Browse posts focused on either buying or selling to hone in on your current needs.
  2. Leverage Neighborhood Links: Access the city guides for detailed local insights before home search.
  3. Engage with Market Trends: Use our data-supported posts to time your purchase or sale advantageously.
  4. Apply Financial Tips: Make informed decisions on budgeting and rebate opportunities informed by our expert content.
  5. Follow Our How-To Guides: Prepare yourself for each transaction step with checklists, timelines, and best practices.
  6. Contact Our Team: Use insights gained to approach Flat Rate Realty agents ready to support your unique real estate journey.

Key Benefits of Using Our Blog as a Resource

  • Unique Flat-Fee Savings explained and illustrated
  • Insider market knowledge specific to Colorado Springs & Colorado’s evolving landscape
  • Actionable advice for professionals and first-timers alike
  • Direct access to trusted agents and affiliate services
  • Regular updates and fresh perspectives keep your knowledge current

Client Voices: Success Stories From the Flat Rate Realty Group Family

"Had the absolute pleasure of buying a home with Frank. We not only got our number 1 choice but also got it for over $10,000 cheaper than it was listed for... He is one of the best Real Estate Brokers in Colorado Springs!" – Ross Keps
"Frank and his team sold our house above market value while charging a fraction of traditional commissions. Their personal dedication and expertise outshone all others." – David Goscha

This is the kind of personalized service and savings you can expect, and our blog is the first step in learning how to replicate this success.

Comparison: Flat Rate Realty Blog vs. Other Real Estate Blogs

Feature Flat Rate Realty Blog Typical Real Estate Blogs
Local Colorado Focus Deeply specialized Broad/general
Flat-Fee Real Estate Insights Extensive, practical guides Minimal or none
Buyer Rebate Information Detailed and transparent Rarely mentioned
Regular Market Updates Data-driven, timely Occasional, inconsistent
Client Testimonials & Case Studies Featured frequently Less personalized

Access These Premium Tools & Resources

Ready to start your real estate journey with trusted Flat Rate Realty experts? Contact us through this link or email Homes@FlatRateRealtyGroup.com for personal assistance today.

Summary: Why Our Blog is Your Go-To Colorado Real Estate Resource

  • Unrivaled local expertise: Unpack Colorado Springs and regional market trends.
  • Actionable insights: Step-by-step guides you can implement immediately.
  • Cost-saving strategies: Learn how to maximize equity with our flat-rate commission model.
  • Exclusive rebate info: Understand and access buyer rebates and incentives.
  • Trustworthy & personable: We are Colorado real estate agents with your best interests at heart.

Explore our full blog archive and start turning information into successful real estate decisions: Flat Rate Realty Group Blog

 

June 21, 2018

5 Ground Rules for Home Buying Success

 

There are a small number of purchases in life that carry the financial and psychological weight of buying a real estate home.  If you are buying your first home or moving up to your dream home, or rather economizing your home and your life after the kids have left, it is essential to recognize the ground rules for success in the world of real estate acquisition.

Making the wrong choice in buying a home can have overwhelming and long lasting effects, while making a wise choice in home buying can significantly improve the general value of the investment.  It is important to learn all you can about the world of home buying and mortgages before deciding to buy the home of your dreams.

While there are lots of websites aimed to assist first time homeowners learn all they can, most financial experts say that there is no substitute for the good old one-on-one learning. Luckily, many mortgage lenders, real estate agents and home inspectors will be able to deliver this type of one-on-one learning.

 Before buying a home it is often best to utilize a systematic approach as this is regularly the best way to ensure that all choices are based on information and reason, not only on impulse or emotion.  Buying a home can be a sensitive process, however it is vital to keep your emotions under control and not let them influence your judgment.

There are 5 basic ground rules regarding buying a home and shopping smart, and they are:

 #1 – Get Your Financing Before You Get Your Home

 There are only a few things in life as disappointing as losing out on the home of your dreams because of not being able to secure funding.  While the wish to get out there and search for that ideal home is reasonable, it is important to line up the financing you will use before you start searching for a home.

 

Getting the funding onward has a number of important benefits including understanding how much you can buy and gaining more respect from the listing real estate agents.  By understanding how much home you can pay for before you shop you will avoid wasting your time searching at unaffordable properties, and the listing agent will be over willing to show you the homes in your price range.

 

It is also important to take a good look at the various types of mortgage on the market before getting started in the home buying process.  These days, mortgages come in far more choices than the typical 15 or 30 year. For that reason, possible home buyers need to know how each type of mortgage operates, and to meter which mortgage is the best option for their needs.

#2 – Look At The Community, Not Just The Home

It is a great idea to look at the whole community, rather than focusing on a single home. This can be a mainly important thing to consider for those moving to a new city, as these buyers will be inexperienced with the local climate and lifestyle.  It is essential to determine the areas of town that are most wanted, and to consider things like distance from work and local shopping opportunities.

We have all heard that location is the key consideration when it comes to real estate, and that is certainly the case.  Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well as the home.  Potential buyers can learn a lot about the nature of the various neighborhoods just by driving around town, and also by talking to other residents.

#3 – Be Fair With Your First Offer

Trying to dribble a seller on the first offer can rebound, as can paying too much. It is necessary to carefully assess the local market, and to relate the asking price of the home with what related houses in the neighborhood have sold for in the past.

Matching the sales of similar homes, what are known as "comps" in the industry, is one of the top ways to find out what is fair, and to ensure that you neither overpay nor underbid on the property.

#4 – Always Get A Home Inspection

Investigate the home always for any likely faults before making an offer.  Compared to the price of the average home, the cost of a quality home inspection is virtually small. Therefore, get a good home inspection done before buying.

To find the best home inspector, it is a great idea to seek out feedbacks referrals as several of the best home inspectors rely on people’s feedback advertising.

#5 – Do Not Push Away the Sellers of The Home

Many real estate deals have failed because of personal animosity of the buyer and the seller.  It is necessary to avoid pushing away the seller of the home during the process, and to avoid faultfinding every small detail in the course of the sale.

 

Posted in Buyers Resources
June 20, 2018

Working with an Inspector

The rule of real estate is to get your money's worth.  When you are looking into finding a place, you will want to make sure that the rule immediately applies.  One way to make sure that you are getting more for your money is by finding the right inspector.  This will allow you to find a property that is worth the upkeep. 

The job of an inspector is to find everything that might be a larger problem in the house before you move in.  This will start by checking the electricity, plumbing, water supply, furnace and heat supplies, and the general build of the home.  They will take a part of their day so as to ensure that everything is built up to standard and that it won't cause difficulties before you move in. 

If there is anything that the inspector says is incorrect with your home, you will be able to ask for maintenance or money back for the home.  There are many who will save thousands of dollars by hiring an inspector look at what is in the home and how it should be changed. For this, you will want to ensure that the right inspector is coming to your home. 

Most likely, your real estate agent will have a precise inspector that they like to work with.  But you can find one on yourself and have them inspect the home as contract work.  You want to make sure that they will do a thorough job and that they have your best interests in mind.  This will assist you to walk into your home without any shocks and with possible replacements before you move in. 

To work with an inspector is an important part of home buying.  It will assist in determining and outline the quality of the home and can assist you to get the best deal in the end.  Before you sign the final papers, ensure that the inspector you have worked with has gone through everything.  This will definitely help you to start turning your house into a home. 

Posted in Buyers Resources
June 19, 2018

Winning The Commercial Real Estate Game

 

The commercial real estate game can be won in several ways.  It’s more of an essay test than true or false.  There’s absolutely more than one right answer.  A great percentage of the world’s millionaires earned their wealth by means of real estate investment.  While nothing is a surefire, real estate provides many chances for the savvy investor.  Whether you want to build wealth or simply maintain it, there are several strategies that you can implement to get where you want to be.  Where should you begin?  You don’t want to put your hard earned money into a dead market.  You want to protect what you’ve worked so hard for.  Let’s look at a few of the more popular methods for investing in a commercial real estate.

One of the more classic approaches to commercial real estate investment is the buy and hold strategy.  In this maneuver, you buy property that is valued at a fair price.  It may be a few miles away from town or outside of a development area.  You then simply hold the land for a number of years.  While you do this, the city comes to you.  Developments are going up all around you.  Yours is the last piece of raw land around and every developer in the state wants a piece of it.  You, the genius entrepreneur, then sell the land for millions more than you pay for it.  It couldn’t get much better than this.  While this is obviously the ideal scenario, it can work like this.  As you know, the land is the only commodity that they don’t produce any more of.  Therefore the price of your land will eventually go up.

While there is a great deal of money to be made in this sort of venture, it can take a long time to mature.  This is great for someone who has a big chunk of money that they want to sit on for a few years.  There is no set time limit as to how long it will take you to win.  You basically have to go with your gut on this one.  Should you sell it five years from now for twice what you paid for it?  What if in year six, Wal-Mart wants to move in and pay you 10 times what you paid?  There is really no way to know. 

You have to get out when you feel the time is right.  Look for the signs around you.  If the trends of development in your area are coming towards you, wait for a while.  If you’ve had the land for ten years and the city that you just knew would be the next boomtown turned into a ghost town, you might want to get out.  This strategy can produce a great return and it’s a pretty passive source.  You don’t really have to do anything except buy the land and wait. 

Another great way to invest in commercial property is through the rehab market.  This is where you buy a run-down property that needs a lot of work done.  You fix it up with a little elbow grease.  Then after it’s up to par, you put it back on the market and make a tidy profit.  This is a growing segment of the real estate industry.  There is a definite need for this as a property is always getting old.  The most important thing to remember in this type of venture is you make your money when you buy the property, not when you sell it. 

You must find properties that are undervalued.  If you overpay, no matter what you do to the property, you’ll still come out behind.  You need to find properties that need a lot of work.  This has the highest potential for a great return.  Don’t get involved with a property that just needs a new coat of paint and the yard mowed.  This will not make you any money.  In fact, you’ll most likely lose money.  Stick with the properties that need the most TLC and you’ll come out on top.

Another popular strategy is that of quick turning a property.  This involves finding distressed properties.  Your search for a great deal that is extremely undervalued.  This could be a property that is facing foreclosure or a bankruptcy.  Someone may take a significant cut in the price in order to get out fast.  This can benefit you, the investor, greatly. 

You then take the distressed property and put it back on the market quickly.  Since you don’t have to sell quickly, the property will get fair market value and you can make thousands of dollars in profit.  As with rehabbing the property, the key is finding cheap properties that you know are worth more.  This is where all of the money comes from in this type of transaction.  If you know the market, you can do very well with this type of deal. 

For investors that already have a good sum of money saved up, there is another form of investment that is very appealing.  Professionals who want another steady income can invest in expensive real estate that is already a great performing asset.  This could be a luxury apartment complex or condos or any number of properties.  The investor then takes over the cash flow that is generated by the subject property. 

They will most likely leave the existing property management in place and just take the steady cash flow.  This is a great form of investment for those that are looking for a passive source of income from their investment.  People who would benefit from this are usually very busy and already successful in some other walk of life.  They understand that the only way to create wealth is through multiple sources of income.  Diversification is the key.

Whichever method of commercial real estate investment you decide on, make sure it’s the right one for you.  Consider all the factors carefully before making your decision.  Just remember that you too can succeed in real estate investment.

 

 

Posted in Real Estate News
June 18, 2018

Why the Real Estate Market May Turn Around Next Year

 

Without a doubt, 2007 was one of the worst real estate years many had seen in quite some time. In fact, many people have begun to compare the current real estate market crash to the crash of the 1980s. While it does not appear that prices will improve this year, there are indications that the market may begin to experience some recovery next year. This could mean an improvement in prices which have appeared to be in free fall for the last few months.

One of the reasons that it is anticipated that prices will begin to improve in 2009 is the fact that many experts have anticipated the market will bottom out in 2008. At first glance, this can certainly seem to be frightening news; however, it is important to keep in mind that the market really cannot begin to recover until it does bottom out.

In understanding the recovery of the market it is important to look at the factors that resulted in the current real estate market slump. There are actually several factors that led to the current slump. One of the most important factors is the fact that prices in several areas throughout the country doubled between 2000 and 2005. In some cases, those prices even tripled. As a result, there were a record number of people who were unable to afford homes, especially first-time home buyers. As the number of buyers able to purchase real estate began to dwindle, resulting in price and sales declines throughout the country.

As headlines have announced lately, subprime loans also added to the recent debacle. During the last couple of years, a huge percentage of the number of loans that were made was delivered to buyers with credit scores that were under average. Additionally, a large number of loans were made to buyers with minimal down payments. Approximately two years ago real estate prices stopped rising. At this time, a number of buyers who had snapped up houses in red-hot markets suddenly discovered that the balance of their mortgage exceeded their home’s values.

The rate of defaults began to escalate at this point. Before long, foreclosures also began to increase as a direct result. As more and more foreclosures hit the market, the inventory in many markets began to spiral out of control. As more homes hit the market, prices began to drop even more. To make matters even worse, economic growth began to stall and massive layoffs in many areas further fueled defaults and foreclosures.

 

While it has taken some time, assistance is now being provided to homeowners; which is anticipated will help to stave off the increasing rate of foreclosures. Generally, this expected to help stabilize the rapidly rising inventory of homes for sale throughout the nation.

It is vital to remember that while headlines seem to be continually blasting news about the softening real estate market, there are really some markets in the country where prices have constantly rise instead of declining. On average, real estate prices nationally are roughly 5% less than they were last year; however, several of the metro areas in the country are still feeling price surges. This is mainly due to first-time homebuyers who can still manage to pay for to purchase properties and retiring homeowners who are selling their home and then either moving into a retirement community or purchasing smaller properties. These markets include Salt Lake City, Utah; Charlotte, North Carolina; Beaumont, Texas and Bismarck, North Dakota.

 

Posted in Real Estate News
June 17, 2018

Why Flip Houses

 

There are numerous big questions to ask regarding real estate investing and one of the numerous that you should consider in case you are thinking of flipping houses for your real estate investment is: why?

Why flip houses?

It surely appears as though it's a big deal of work and true it is. It isn't an easy mission to embark on your own but many people all over the world buy houses all the time for the goal of flipping those houses. Why? Profits are both the long and short-term answer but it goes much deeper than that for lots of individuals interested in houses flipping even though profit is the ultimate goal.

Some individuals really like working with their hands. Buying a property in need of light maintenance and repairs is a good way to get your hands dirty without risking very much money, effort or time. Properties requiring more serious work may need a pair of hands that have some degree of experience instead of hands that are best fitted for books balancing. That said if you want to do the work yourself and like the prospect, you may find that you can save a lot of deal of money if you use your own labor instead of paying for the labor of others in regards to house flipping.

Others go into this line of work since the notion of giving a family their dream house is so pleasing. When you go in and flip a house you are putting your sweat into creating someone else's dream. You are taking something that may have been simple, drab, ugly and turning it into a beautiful home in which they can build their dreams. While it may seem a little romantic, it is in a way. This is part of the beauty of house flipping through; there really is no wrong motive to do it.

Some individuals select this line of work because deep down inside they enjoy the stress that goes into turning a lump of coal into a diamond. I think the accurate term for these people (and really this could apply to anyone who chooses to flip houses for a living) is Masochist. The cap fits for most people who flip houses. If they are unaware that going into it the first time they surely know before they delve into it a second time.

Then there are those that are simply driven by profit. There really isn't anything at all wrong with that. Most of us would never get into this business if there weren't some hope of a pot of gold on the other side of the rainbow. This is hard work and there are days that the promise of a payoff is the only thing that gets you out of bed and hitting the ground running yet again.

Just remember that at the end of the day it doesn't matter what your goal in flipping houses is. What matters is that you show up day after day and do the works necessary to pull off your house flip. This is what differentiate those playing at house flipping and those who are fated to be one-hit wonders in this fierce business. Obviously, there are still those few who flip houses just for the sake of seeing the finished product when everything is said and done.

 

 

June 16, 2018

Why You Should Focus on the Foreclosure Niche In Your Real Estate Investing Business

 

The prospects that are present in the foreclosure niche are massive right now and they are continuing to increase at a fast pace. This is encouraged by the rise in foreclosure rates over the country being led by California and Colorado.  Concentrating on foreclosure dealings lets you work on Luxury Homes without the traditional Risk you would usually assume by qualifying and signing for a mortgage. 

In the Foreclosure Niche, you take charge of a property by “getting the deed” and selling the home to a financier or owner occupant dependent on the price range, neighborhood, and state of the house.  By Focusing on Luxury and Higher end Home, you can make more profit per house with the same amount of work. When you combine this with the ability to short sale Jumbo Mortgages, You’ve got your golden ticket.

Lenders are very flexible on dealing high dollar mortgages and huge loans since they certainly don’t want these houses back.  Would you make 10% of a 150 thousand dollar home or 10% of a 1.5 million dollars home instead? The Mortgage Marketplace has created such a large number of defaulted mortgages that it has created unlimited opportunities to do these types of transactions.

This is because of the very aggressive subprime products they put out in the marketplace and their loosened guidelines for allowing weak borrowers to buy properties they normally wouldn’t have been able to buy. They did this because of competition needed to get their money out in the marketplace.  The Foreclosure Niche is the Best Niche in the Real Estate Investing Business because: 

1. The ability to control High Dollar and High-Profit Potential Homes with no Risk.

2. You don’t have to have Good Credit because you don’t have to qualify for mortgages in your own name.

3. You don’t need a lot of money to get started. This business has very low barriers to entry.

4. You don’t need any experience because if you follow my system, it will show you how to create the huge checks by following the step by step system.

5. You can buy a foreclosure fast because you have an interested, cooperative seller.

There are not sufficient investors in the marketplace at this time to handle the volume of homes going into foreclosure. We require extra investors and I’m on a task to create very successful investors that want to get wealthy over the next couple of years.

This scenario won’t last forever. Just 3 years ago it was very hard to see these types of deals. It’s very easy now, it’s sad! Take advantage of it while it’s here.

 

Posted in Buyers Resources
June 15, 2018

Why You Should Ignore Trends In Real Estate

 

Several people have a habit of getting caught up in real estate trends announced in newspapers, magazines and on television. This is a very huge gaffe of the highest order.

Why You Should Ignore Trends In Real Estate

In this present digital age, you can learn almost anything on a specific subject. While access to information is normally a positive development, things can get a little out of line if you get overloaded with it. Search too long and you can see two pieces of information providing exactly conflicting opinions on a subject. Clearly, that doesn’t really help you make a decision.

In real estate, the information offered in the media is usually uniform. For the past six or seven years, everybody with any brains at all has reported the real estate market has been hot. Presently several of these same experts are saying the market is cooling off. Some are even forecasting a crash in the market.

As a prospective buyer or seller, how should you assess the information being created in the media? The easy answer is you should disregard it. The issue with these reports is not the correctness. Rather, the issue is that they are reporting national trends in real estate.

National trends are great and all, but they have little or no application to your specific area. Consider the following if you do not believe me. The real estate market for the last few years has been reported as hot, hot, and hot. In Colorado, however, the market has been flat throughout this time. If you were considering buying or selling in Colorado, the information being provided for national trends simply did not apply to you.

If you think Colorado is the exception, it is not. The state with one of the worst appreciation rates over the last four or five years, for instance, has been Texas. Put in practical terms, this means homes in Dallas, Houston, Denver, San Antonio and Houston have not followed national trends. The only real estate trends that matter are those in your local markets. Never rely on national data.

If you are considering buying, you have to be very careful when considering real estate trends. If it looks like a seller’s market in your area, you may make the mistake of not buying. Even in a seller’s market, buying a home is better than renting. Every day you are in the home is a day you are growing your personal wealth through equity accumulation. Don’t stay out of the market simply because you feel it isn’t the right time.

It is very simple to get caught up in real estate trends since they are plaster over in front of your face on a daily basis. In fact, they really should not play much of a role in your decision-making process.

 

Posted in Real Estate News
June 14, 2018

Why You Should Choose Loveland Colorado Real Estate

 

Many Americans are turning out now as homeowners than at any other time in the past. Buying a house is regularly perceived as a financial investment. But it is a place to live and raise children as well as an investment in the community. Everyone should have the opportunity to enjoy living in their own home, and one way to ensure the most from your new place is to not only focus on the details of the home but to also consider the location and the surrounding area during the buying process. Before purchasing a home it is smart to do a little research on the surrounding area. It is these kinds of details that will really make your place feel like home sweet home. 

Loveland, Colorado. It is a great town that offers a superior quality of life in a great location. It is nestled in the foothills of the Rocky Mountains and is often referred to as the “Gateway to the Rockies” because of its exquisite location and unparalleled scenic beauty. It is the natural splendor of Loveland that encourages its traditions and plethora of outdoor recreational choices, which includes hiking and boating.

Traditions

Loveland, Colorado maybe is best known generally as the home of the Valentine Re-mailing Program.  February each year hundreds of thousands of Valentines are packed inside bigger envelopes and send to Loveland where countless volunteers’ hand-stamp each letter with Valentine’s verse and in turn send them to the recipient. Every year a contest takes place through the local newspaper for residents to submit their verses. The winners have the honor of seeing their text stamped on Valentine’s letters. In the weeks before Valentine’s Day, the city of Loveland let residents place red hearts embroidered with personal messages on light poles and other fixtures on the downtown streets. What a lovely and beautiful tradition.

Boating

Boating is a great way for the family to enjoy a vacation that gets you out of the house and away from your tiring schedule. Boyd Lake State Park, located near Loveland, Colorado, is the most modern water sports facility in Northern Colorado. It includes over 1,700 acres of water for boating, fishing, sailing and swimming and plenty of sandy beaches for picnicking. This park also has some incredible wildlife. Pelicans are often seen gliding across the lake’s surface.

Hiking

Hiking is one of the most relaxing and carefree experiences you can give yourself. There are often no schedules to keep, no deadlines to meet, and definitely few worries for hikers. If you love hiking and crave the adventure that it brings, then Loveland, Colorado is the place for you. Allow your curiosity take you up the next hill or around the next bend to magnificent views that will sweep you off your feet. Appreciate beautiful waterfalls, cascading creeks, turquoise lakes, and incredible rock formations that can only be seen on foot in this beautiful Colorado landscape. You may even get lucky and see some wildlife off any one of the heavy-wooded trails. What’s great about hiking is that no matter how many times you hike the same trail, the experience is always different, with new wildlife, new colors, and new views. And if you love hiking, you may also want to try snowshoeing or rock climbing here in this serene area.

Loveland is fortunate to be located near Lory State Park, just along the edge of Horse tooth Reservoir. This park offers incredible scenery that can be seen from any one of its extensive trails used for mountain biking, hiking, or horseback riding. Visitors can enjoy the wildlife and beautiful wildflowers along any trail.

So be it the traditions, hiking, boating, or any other number of reasons, let Loveland Colorado be your next option when considering real estate.

 

Posted in Buyers Resources
June 13, 2018

Why You Need to Get a Professional Appraiser

 

In commercial real estate world, not every appraiser is believed to be equal. It takes some knowledge and expertise to properly appraise saleable property, and everybody is not just qualified. There are two categories of appraisers, a staff appraiser, and a fee appraiser. A staff appraiser works for a particular lender or lending firm, on the other hand, a fee appraiser is normally available for hire by the public.

The appraiser that you hire for your commercial investments before you acquire can have a huge influence on the amount of money you spend and your possibilities of getting finance from a lender. Many lenders will not just agree with any appraiser. So, if you get an appraisal with an appraiser that a lender does not accept, you have just wasted your time and money, and you are no closer to getting the property you want.

 Let’s look at what makes a qualified appraiser, and who it is you want to hire to evaluate your potential investment.

 It is common practice for a lender to appoint the appraiser that is to appraise the property in question. This practice is in place because there are dishonest buyers who work with certain appraisers that will inflate the property’s true value. This, consecutively, lets the buyer borrow more money than what a lender would usually agree, thereby increasing the lender’s risk.

Increasing property’s true market value is very easy because appraisals are just estimators of a property’s true market value. They are understandings based on the nearby property and selected criteria. An appraisal can be “fixed” according to an individual’s interest. That is the reason two parties must not have any dealings before or shared interest in the subject property.

A very widely used and accepted type of appraiser is one that is certified by the American Institute of Real Estate Appraisers. They are members, making them M.A.I. designated. Most lenders will need that you use only an MAI appraiser. These MAI appraisers have gone through thorough study, many years of practice, and have had to carry out their duty under strict supervision while appraising several different properties.

Many MAI appraisers will not collude with a borrower since there is too much to lose and too much spent in their training. This is why; most lenders will agree MAI appraisals irrespective of whether or not they know the appraiser personally. For the most part, lenders will have trusted appraisers that they always work with, and will need that you only use their appraisers. Ensure to get an explanation on this subject before you get an appraiser because you do not want to pay for two.

MAI appraisal is more expensive than a non-MAI appraisal due to the added expertise and experience of the appraiser. Actually, the cost for a single appraisal can be $2,000 to $5,000, and two to three times the value of a fee appraiser. Be sure to include this in your total cost of purchasing the property so you are prepared to cover the cost.

If you have been in the commercial real estate business for a while, you may have a few lenders and appraisers that you work with often. They may even be considered as part of your team. This can greatly increase your productivity because you have professionals at your fingertips to get many properties handled quickly, if necessary.

MAI appraisers can be trusted to carry out an exact appraisal of your prospect property. With this appraisal, you will be able to get the right amount of money loan on the property and not come out short.

It is always a great idea to study your appraiser and look at some of the work that he or she has performed in the past. The appraiser and the appraisals should be of highest professional quality because so many are relying on their appraisal. Even though it costs you more money, constantly use an MAI appraiser to avoid problems with the lender and excessive expenditures.

 

June 12, 2018

What is Pre-Construction Real Estate Investing?

The concept of pre-construction investments when it comes to real estate is really quite a clever method through which many have made millions. The theory is simple actually. Invest in a property during when it is in the planning stage. Those who will be building these buildings need money and investors in order to do get the building off the ground. By investing (in many cases basically purchasing options to purchase) in the units, typically condo units in high demand areas, before the ground is broken investors often have the option of investing for pennies on the expected dollar once the building is complete and can re-sell the property at full market value once the building is complete banking the difference in the original investment and the asking price.

This is a win-win scenario for many ‘owners' or builders of the property in questions since 'pre-selling' the units permit lending agents to have assurance in the profitability of the project as a money earner by selling many of the units sight unseen. The advantage to investors is that they are able to buy at a much lesser price pre-construction than later and can sell later at the full market worth (or above in some high demand and undersaturated areas for real estate).

This type of investing is not nearly as stylish to some as flipping houses. There is no beast to beauty renovations. There are, however, some things that should be kept in mind while making this type of transaction.

First of all, no real estate venture is ever guaranteed to turn a profit no matter what the glossy little brochures tell you. With the current developments in property sales, this is usually not the best environment for pre-construction investing although these things tend to change on a regular basis and that market could be going up again in the very near future.

Secondly, networking is more often than not the best method to break into this specific business. There are all kinds of fly by night would be real estate investors. The ones that manage to last are those that network with other real estate agents as well as those who have specific interests and experience with pre-construction investments.

Join local groups in addition to online groups that focus on this sort of investment in order to get more information quickly. The costs needed might appear discouraging at first but they are far less than the costs of getting in over your head by not having a hold of even the most basic 'ins' and 'outs' of pre-construction real estate investing.

Thirdly, build a close-knit relationship with a realtor that focuses on this specific type of real estate investing. This could show to be the most valuable thing you will ever do so as to insure future success. By increasing the right relationship with the right realtor you can get information on new estates before they make it to the public sector. This puts you in the rare and wonderful position of beating the competition to the punch. This gives you a much better shot at receiving the rock bottom prices that are often missed by waiting too long to make the purchase.

Fourth, be prepared to hold onto the property for a little while if you need to do so. The issue with pre-construction investing is that there are no assurances that when the time comes you will have been able to 'seal the deal'. Things come up even when you have a buyer that is interested and willing to buy it. In other words, there are times when you will need to hold onto the estate for some period and sometimes as a long-term investment. Some options in the case of long-term holds would include renting the property out to vacationers if it is in a high demand tourist area. You can use your realtor to help with that. This allows the property to be earning some income until the sale can be made. Others decided to hold onto the property as a personal vacation home for themselves, friends, and family. Ultimately, the important thing is that there is a "Plan B" for the property should the deal go through and you are left paying the monthly note.

Pre-construction property investing may not have the 'name in lights' appeal that other types of investing carry, however, it does give a viable investment style that has the possibility to bring in significant profits. Profit is the name of the game when it comes to investing. So keep this in mind when thinking about your investment options. This is one of the types of investing that needs (in most cases) the least amount of capital up front.

Posted in Buyers Resources