Categories
Real Estate Agents In My Area California

Real Estate Agent Santa Clarita

Looking to Find Real Estate Agents in Santa Clarita ?

Are considering investing in real estate in Santa Clarita ? If you do, you must learn all you can about the market before spending a dime. Should you fail to do so, you could lose what you are investing. Read through this piece to make the right steps forward.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Try not to overextend yourself. Don’t get overeager. Start small and work your way up. Don’t just assume that you can spend a great deal and make that money back. That’s an easy way to back yourself into a corner. Wait until your smaller investments can fund some of your more ambitious ones.

The rent you are getting from properties should cover their mortgage. Doing this will set you off on the right foot. You don’t want to end up having to dip into your own pocket to pay any part of the mortgage.

Think about adding business properties to your investment goals. Business locations can turn into long-term rentals, which makes them profitable and safe. Think about a business complex or small strip mall, which will give you several different opportunities when it comes to investments.

Do a little research into the city government for any properties you are considering investing in. The city should have a website. There you will find pertinent details that can influence real estate prices in the near future. Growing cities are usually great investments in Santa Clarita.

If you want to buy a lot of properties and hold them, be sure to choose a specific area to invest in. You will save time and money on maintenance and travel this way. You will also increase your expertise in the local market.

Top Apartment For Rent Near Me

Look for properties that will be in demand. Really stop and think about what most people will be looking for. Try to find moderately priced properties on quiet streets. Looks for homes with garages and two or three bedrooms. It’s always important to consider what the average person is going to be searching for in a home.

Get your funding in check prior to scouting homes. You are wasting time if you don’t know where the finances will come from. In fact, the delay after you’ve found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.

Any tenant you’re thinking of renting to must be screened thoroughly. Too often an irresponsible or unreliable tenant can do expensive damage or are perpetually behind with their rent. Before taking in anyone, get their references if you can, and conduct a complete credit and background check on them. When you exercise due diligence, you will have reliable tenants.

Top Rated Homes For Rent Near Me

Do not allow your emotions to get in the way while you are negotiating. This is an investment purchase, not a home you plan on living in later. Keep your emotions in check so that you do not overpay and end up with less profit potential. If you heed the advice given here, it gives you a much better chance to be successful.

Have a business account, and stick to using it. If you invest too much of your personal money in a property, you could lose money. This might leave you short on funds to pay your bills or take care of personal needs. Treat this like a business so you don’t risk losing it all.

Your rental contract should include the requirement of a security deposit. This protects your interests if your tenant leaves your property in an uninhabitable state when he moves out. The contract gives you the right to keep the security deposit in order to hire a cleaning service or a repair service to fix the problems.

Best Realtors

Learn as much as you can before making your first investment in Santa Clarita. There are a ton of books available on real estate investing. Plus there are many online (and offline) communities out there where real estate investors share their best practices. The more you learn, the better chance that you won’t make any critical errors.

Do not sign any contracts to buy a piece of land before you do your research carefully to confirm the ownership of the land. Hire your own surveyor to identify the property lines clearly. This prevents misrepresentation of the piece of property for sale, and it mitigates any future problems.

Don’t be taken in by slick talkers who boast that they made millions in real estate and that they can teach anyone to do it. The success stories always get more attention than the failures so don’t pin your hopes on being the next success story. There are no get rich quick methods that are sure things.

Have an extra exit strategy or two. When it comes time to sell, you might find it takes longer than you would like. By having a back up plan or two, you can keep yourself financially safe so you are able to move forward in your investment property career.

Real estate investing is a huge responsibility. Though you should make investments when you are younger, it is important that you are stable, as well. Get to know others in the community while you work on your savings account.

Real estate investing offers many opportunities, but you have to be aware of the risks to avoid losing your money. You can be pretty sure that your real estate investments in Santa Clarita are smart ones when you use the ideas within this article. Keep it in mind for the future.

 

Top Rated Real Estate Broker

Addicted to Real Estate - Why I Can't Stop and Why You Should Start

First to obtain your Real Estate license you will need to do a 63 hours pre licensing course. Many online educational sites offer this and can be done in the comfort of your home. If you are more of an In class person, your local community college might offer the course. When taken in actual class, the course may take 4 to 6 weeks due to their scheduling. Online classes you can do at your own pace. So if you want, you may do the entire course in one week.

Below are some requirements for the state of Florida to obtain your Real Estate License

General Requirements:

Must be 18 Years of age, have a high school diploma or GED to get your Real Estate License.

Educational Requirements:

Complete the 63 Hour pre licensing course and pass.

Exam and Application Requirements:

· Submit a completed real estate license application, submit your finger prints and pay any fees associated.

· Pass the Florida Real Estate Sales Associate state exam with at least a score of 75 points out of 100 points or pass the Florida Real Estate Law exam with a score of 30 points out of 40 points.

· Activate your license with a Real Estate Broker using the DBPR proper forms or may be activated online by your broker.

These are the basic steps needed to obtain your Real Estate license in Florida. How to get your Real Estate license sounds easy and to some extent, it is. However, the exam and amount of studying shall not be taken lightly. I would recommend searching online a bit more before you decide on a Real Estate license. If you want to make a career change, this is definitely a great one.

So How Do You Actually Start In Real Estate and What Does It Offer?

Firstly of course once you have obtained your License, activate it with a broker. This is where you have to decide what path you want in Real Estate. Different companies offer different options, splits, fees, training and so on. Let take for example:

Property Management: It is best to search for local property management companies. There are also national property management companies which you can join. Once you join them, through out your time in this field, you'll gain knowledge and experience on all legal aspects of property management. There are a lot of them, from how to evict a tenant to how to post the notices on their door and within what time frames. Property management involves a lot of work and at the same time is rewarding. Many agents lean towards this field due to the steady stream of monthly income. Others don't want to deal with the tenant headaches. Example, if you manage 150 units and average a 10% call rate, that would be 15 different issues to deal with during that month. These may be from A/C units not working, to plumbing issues; tenants locked out of their homes and need access, to tenants disturbing other neighbors. One the bright side that means 135 units won't cause any issues. On average, the management companies charge around 10% of the monthly rent to owners (all Companies and State are different), in return, you as on agent might get a percentage of that. Since all companies offer different payments, let's just average a monthly income for the company. Let's say 150 Units rented for $1000 each monthly that would be 10% of $1000 which is $100 X 150 units 'equals' $15K monthly income. Now you see the steady income I mentioned above.

Luxury Real Estate: This also a very nice niche once you obtain your license. There are pros and cons as there is with Property Management. When speaking about Luxury Real Estate we are speaking about homes from 1M and up. The obvious benefit to this is the amount of money you earn on each transaction. Example, 1M sale at 3% commission gets you 30K income, now subtract your splits with your broker, let says 80/20 split, agent would receive $24k commission, do that 4 times a year and you are at 96K. Not bad at all for going to a pre licensing 65 hour course. Let's point out the cons. It's not as easy as it sounds or as seen on TV. This market is more of a referral based market. You can definitely do it without referral, but at some point, you need to have those buyers or sellers in your sphere. The cost to reach this price range is very costly upfront. We are talking about a marketing campaign in the range of 4k to 5k a month at least in advertising within those areas. After a few months of the campaign you might receive a few calls from sellers or buyers. There is a lot more to it than just mailing, it needs to be done the proper way. Thus a large investment is needed to start right of the bat in that price range.

Real Estate Agent: The two previous paths don't appear to everyone, I would say 90% of agents go with the traditional Real Estate Agent path. This path in a sense leads to the two previous ones as well. As you are in the field, you'll be learning from other agents, property managers and so on. Why so many agents go with the traditional Real Estate Agent is due to its training and perhaps quicker income earning. If you put in the work, you can earning income in as little as 30 days, while property management and Luxury Real Estate does take its time for the business to start coming in. The cons of this path is the amount of training, start up and hard work you will need to put upfront due to inexperience and mistakes you will make before have a steady and stable income (whatever stable means to you). Agents usually earn 3% of whatever the sale amount of the home is. Example, 200K home, commission would be 6K, let's take the same split as before 80/20, agent receives $4,800 X 1 a month X 12, agent would earn $57,600 yearly. Not bad at all. Do keep in mind that some, the majority or most Real Estate companies do charge a transaction fee, desk if, yearly fee and so on.

 

Top Rated Open Houses Near Me

Real Estate Agents and the Internet - How to Buy and Sell Real Estate Today

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.

Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable?
Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!
However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.
But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).

There are many reasons to delve into commercial real estate investment.
For example you might purchase to resell after a certain appreciation level has occurred or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary
indicator of the impending growth of the residential real estate market.
Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect)
opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.
For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.

 


Real Estate Agents In My Area California

Real Estate Agent Santa Clarita

Real Estate Agent Santa Clarita
Categories
Real Estate Agents In My Area California

Real Estate Agent Santa Clarita

Looking to Find Land For Sale Near Me in Santa Clarita ?

Are considering investing in real estate in Santa Clarita ? If you do, you must learn all you can about the market before spending a dime. Should you fail to do so, you could lose what you are investing. Read through this piece to make the right steps forward.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Try not to overextend yourself. Don’t get overeager. Start small and work your way up. Don’t just assume that you can spend a great deal and make that money back. That’s an easy way to back yourself into a corner. Wait until your smaller investments can fund some of your more ambitious ones.

The rent you are getting from properties should cover their mortgage. Doing this will set you off on the right foot. You don’t want to end up having to dip into your own pocket to pay any part of the mortgage.

Think about adding business properties to your investment goals. Business locations can turn into long-term rentals, which makes them profitable and safe. Think about a business complex or small strip mall, which will give you several different opportunities when it comes to investments.

Do a little research into the city government for any properties you are considering investing in. The city should have a website. There you will find pertinent details that can influence real estate prices in the near future. Growing cities are usually great investments in Santa Clarita.

If you want to buy a lot of properties and hold them, be sure to choose a specific area to invest in. You will save time and money on maintenance and travel this way. You will also increase your expertise in the local market.

Top Real Estate Agent

Look for properties that will be in demand. Really stop and think about what most people will be looking for. Try to find moderately priced properties on quiet streets. Looks for homes with garages and two or three bedrooms. It’s always important to consider what the average person is going to be searching for in a home.

Get your funding in check prior to scouting homes. You are wasting time if you don’t know where the finances will come from. In fact, the delay after you’ve found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.

Any tenant you’re thinking of renting to must be screened thoroughly. Too often an irresponsible or unreliable tenant can do expensive damage or are perpetually behind with their rent. Before taking in anyone, get their references if you can, and conduct a complete credit and background check on them. When you exercise due diligence, you will have reliable tenants.

Highly Recommended Home For Sale

Do not allow your emotions to get in the way while you are negotiating. This is an investment purchase, not a home you plan on living in later. Keep your emotions in check so that you do not overpay and end up with less profit potential. If you heed the advice given here, it gives you a much better chance to be successful.

Have a business account, and stick to using it. If you invest too much of your personal money in a property, you could lose money. This might leave you short on funds to pay your bills or take care of personal needs. Treat this like a business so you don’t risk losing it all.

Your rental contract should include the requirement of a security deposit. This protects your interests if your tenant leaves your property in an uninhabitable state when he moves out. The contract gives you the right to keep the security deposit in order to hire a cleaning service or a repair service to fix the problems.

Highly Recommended Homes For Sale Near Me

Learn as much as you can before making your first investment in Santa Clarita. There are a ton of books available on real estate investing. Plus there are many online (and offline) communities out there where real estate investors share their best practices. The more you learn, the better chance that you won’t make any critical errors.

Do not sign any contracts to buy a piece of land before you do your research carefully to confirm the ownership of the land. Hire your own surveyor to identify the property lines clearly. This prevents misrepresentation of the piece of property for sale, and it mitigates any future problems.

Don’t be taken in by slick talkers who boast that they made millions in real estate and that they can teach anyone to do it. The success stories always get more attention than the failures so don’t pin your hopes on being the next success story. There are no get rich quick methods that are sure things.

Have an extra exit strategy or two. When it comes time to sell, you might find it takes longer than you would like. By having a back up plan or two, you can keep yourself financially safe so you are able to move forward in your investment property career.

Real estate investing is a huge responsibility. Though you should make investments when you are younger, it is important that you are stable, as well. Get to know others in the community while you work on your savings account.

Real estate investing offers many opportunities, but you have to be aware of the risks to avoid losing your money. You can be pretty sure that your real estate investments in Santa Clarita are smart ones when you use the ideas within this article. Keep it in mind for the future.

 

Best Realtors

The Real Estate Sector

First to obtain your Real Estate license you will need to do a 63 hours pre licensing course. Many online educational sites offer this and can be done in the comfort of your home. If you are more of an In class person, your local community college might offer the course. When taken in actual class, the course may take 4 to 6 weeks due to their scheduling. Online classes you can do at your own pace. So if you want, you may do the entire course in one week.

Below are some requirements for the state of Florida to obtain your Real Estate License

General Requirements:

Must be 18 Years of age, have a high school diploma or GED to get your Real Estate License.

Educational Requirements:

Complete the 63 Hour pre licensing course and pass.

Exam and Application Requirements:

· Submit a completed real estate license application, submit your finger prints and pay any fees associated.

· Pass the Florida Real Estate Sales Associate state exam with at least a score of 75 points out of 100 points or pass the Florida Real Estate Law exam with a score of 30 points out of 40 points.

· Activate your license with a Real Estate Broker using the DBPR proper forms or may be activated online by your broker.

These are the basic steps needed to obtain your Real Estate license in Florida. How to get your Real Estate license sounds easy and to some extent, it is. However, the exam and amount of studying shall not be taken lightly. I would recommend searching online a bit more before you decide on a Real Estate license. If you want to make a career change, this is definitely a great one.

So How Do You Actually Start In Real Estate and What Does It Offer?

Firstly of course once you have obtained your License, activate it with a broker. This is where you have to decide what path you want in Real Estate. Different companies offer different options, splits, fees, training and so on. Let take for example:

Property Management: It is best to search for local property management companies. There are also national property management companies which you can join. Once you join them, through out your time in this field, you'll gain knowledge and experience on all legal aspects of property management. There are a lot of them, from how to evict a tenant to how to post the notices on their door and within what time frames. Property management involves a lot of work and at the same time is rewarding. Many agents lean towards this field due to the steady stream of monthly income. Others don't want to deal with the tenant headaches. Example, if you manage 150 units and average a 10% call rate, that would be 15 different issues to deal with during that month. These may be from A/C units not working, to plumbing issues; tenants locked out of their homes and need access, to tenants disturbing other neighbors. One the bright side that means 135 units won't cause any issues. On average, the management companies charge around 10% of the monthly rent to owners (all Companies and State are different), in return, you as on agent might get a percentage of that. Since all companies offer different payments, let's just average a monthly income for the company. Let's say 150 Units rented for $1000 each monthly that would be 10% of $1000 which is $100 X 150 units 'equals' $15K monthly income. Now you see the steady income I mentioned above.

Luxury Real Estate: This also a very nice niche once you obtain your license. There are pros and cons as there is with Property Management. When speaking about Luxury Real Estate we are speaking about homes from 1M and up. The obvious benefit to this is the amount of money you earn on each transaction. Example, 1M sale at 3% commission gets you 30K income, now subtract your splits with your broker, let says 80/20 split, agent would receive $24k commission, do that 4 times a year and you are at 96K. Not bad at all for going to a pre licensing 65 hour course. Let's point out the cons. It's not as easy as it sounds or as seen on TV. This market is more of a referral based market. You can definitely do it without referral, but at some point, you need to have those buyers or sellers in your sphere. The cost to reach this price range is very costly upfront. We are talking about a marketing campaign in the range of 4k to 5k a month at least in advertising within those areas. After a few months of the campaign you might receive a few calls from sellers or buyers. There is a lot more to it than just mailing, it needs to be done the proper way. Thus a large investment is needed to start right of the bat in that price range.

Real Estate Agent: The two previous paths don't appear to everyone, I would say 90% of agents go with the traditional Real Estate Agent path. This path in a sense leads to the two previous ones as well. As you are in the field, you'll be learning from other agents, property managers and so on. Why so many agents go with the traditional Real Estate Agent is due to its training and perhaps quicker income earning. If you put in the work, you can earning income in as little as 30 days, while property management and Luxury Real Estate does take its time for the business to start coming in. The cons of this path is the amount of training, start up and hard work you will need to put upfront due to inexperience and mistakes you will make before have a steady and stable income (whatever stable means to you). Agents usually earn 3% of whatever the sale amount of the home is. Example, 200K home, commission would be 6K, let's take the same split as before 80/20, agent receives $4,800 X 1 a month X 12, agent would earn $57,600 yearly. Not bad at all. Do keep in mind that some, the majority or most Real Estate companies do charge a transaction fee, desk if, yearly fee and so on.

 

Real Estate Agents In My Area

The Keys to Success to Investing in Real Estate

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.

Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable?
Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!
However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.
But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).

There are many reasons to delve into commercial real estate investment.
For example you might purchase to resell after a certain appreciation level has occurred or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary
indicator of the impending growth of the residential real estate market.
Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect)
opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.
For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.

 


Real Estate Agents In My Area California

Real Estate Agent Santa Clarita

Real Estate Agent Santa Clarita
Categories
Real Estate Agents In My Area California

Real Estate Agents Near Me Santa Clarita

Looking to Find Land For Sale Near Me in Santa Clarita ?

Are considering investing in real estate in Santa Clarita ? If you do, you must learn all you can about the market before spending a dime. Should you fail to do so, you could lose what you are investing. Read through this piece to make the right steps forward.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Try not to overextend yourself. Don’t get overeager. Start small and work your way up. Don’t just assume that you can spend a great deal and make that money back. That’s an easy way to back yourself into a corner. Wait until your smaller investments can fund some of your more ambitious ones.

The rent you are getting from properties should cover their mortgage. Doing this will set you off on the right foot. You don’t want to end up having to dip into your own pocket to pay any part of the mortgage.

Think about adding business properties to your investment goals. Business locations can turn into long-term rentals, which makes them profitable and safe. Think about a business complex or small strip mall, which will give you several different opportunities when it comes to investments.

Do a little research into the city government for any properties you are considering investing in. The city should have a website. There you will find pertinent details that can influence real estate prices in the near future. Growing cities are usually great investments in Santa Clarita.

If you want to buy a lot of properties and hold them, be sure to choose a specific area to invest in. You will save time and money on maintenance and travel this way. You will also increase your expertise in the local market.

Top Real Estate Agents

Look for properties that will be in demand. Really stop and think about what most people will be looking for. Try to find moderately priced properties on quiet streets. Looks for homes with garages and two or three bedrooms. It’s always important to consider what the average person is going to be searching for in a home.

Get your funding in check prior to scouting homes. You are wasting time if you don’t know where the finances will come from. In fact, the delay after you’ve found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.

Any tenant you’re thinking of renting to must be screened thoroughly. Too often an irresponsible or unreliable tenant can do expensive damage or are perpetually behind with their rent. Before taking in anyone, get their references if you can, and conduct a complete credit and background check on them. When you exercise due diligence, you will have reliable tenants.

Best Real Estate Broker

Do not allow your emotions to get in the way while you are negotiating. This is an investment purchase, not a home you plan on living in later. Keep your emotions in check so that you do not overpay and end up with less profit potential. If you heed the advice given here, it gives you a much better chance to be successful.

Have a business account, and stick to using it. If you invest too much of your personal money in a property, you could lose money. This might leave you short on funds to pay your bills or take care of personal needs. Treat this like a business so you don’t risk losing it all.

Your rental contract should include the requirement of a security deposit. This protects your interests if your tenant leaves your property in an uninhabitable state when he moves out. The contract gives you the right to keep the security deposit in order to hire a cleaning service or a repair service to fix the problems.

Best Real Estate Broker

Learn as much as you can before making your first investment in Santa Clarita. There are a ton of books available on real estate investing. Plus there are many online (and offline) communities out there where real estate investors share their best practices. The more you learn, the better chance that you won’t make any critical errors.

Do not sign any contracts to buy a piece of land before you do your research carefully to confirm the ownership of the land. Hire your own surveyor to identify the property lines clearly. This prevents misrepresentation of the piece of property for sale, and it mitigates any future problems.

Don’t be taken in by slick talkers who boast that they made millions in real estate and that they can teach anyone to do it. The success stories always get more attention than the failures so don’t pin your hopes on being the next success story. There are no get rich quick methods that are sure things.

Have an extra exit strategy or two. When it comes time to sell, you might find it takes longer than you would like. By having a back up plan or two, you can keep yourself financially safe so you are able to move forward in your investment property career.

Real estate investing is a huge responsibility. Though you should make investments when you are younger, it is important that you are stable, as well. Get to know others in the community while you work on your savings account.

Real estate investing offers many opportunities, but you have to be aware of the risks to avoid losing your money. You can be pretty sure that your real estate investments in Santa Clarita are smart ones when you use the ideas within this article. Keep it in mind for the future.

 

Highly Recommended Apartment For Rent Near Me

The Real Estate Sector

Every time I talk to someone about my business and career, it always comes up that "they've thought about getting into real estate" or know someone who has. With so many people thinking about getting into real estate, and getting into real estate - why aren't there more successful Realtors in the world? Well, there's only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office - for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table - lots of energy and ambition - but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never been in business for themselves - they've only worked as employees. They, mistakenly, believe that getting into the Real Estate business is "getting a new job." What they're missing is that they're about to go into business for themselves. If you've ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your business plan helps you define where you're going, how you're getting there, and what it's going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals - What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide - you don't want to be the "jack of all trades & master of none" - choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they've completed a few transactions.

C) Market - who are you marketing yourself to?

D) Budget - consider yourself "new real estate agent, inc." and write down EVERY expense that you have - gas, groceries, cell phone, etc... Then write down the new expenses you're taking on - board dues, increased gas, increased cell usage, marketing (very important), etc...

E) Funding - how are you going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you've set for yourself, when will you break even?

F) Marketing Plan - how are you going to get the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction - Buyer's Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or "put your name to," are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they can take over the world! They're both focusing on the right part of their business - marketing - but they're doing each other no favors by choosing to give each other business. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction - you make a simple phone call and a new agent can bind the property in less than an hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position of "begging for a contract extension," or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) when they see a potential mistake - because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business...and best of all, it's free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not taking into account the amount of time you'll invest.) However, you'll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don't fool yourself - they are necessary - because your competitors are definitely using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you're going to run into. Joining your local (and state & national, by default) Board of Realtors will allow you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don't skimp in this area. Getting MLS access is one of the most important things you can do. It's what differentiates us from your average salesman - we don't sell homes, we present any of the homes that we have available. With MLS Access, you will have 99% of the homes for sale in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan - These days, everyone has a cell phone. But not everyone has a plan that will facilitate the level of use that Real Estate Agents need. Plan on getting at least 2000 minutes per month. You want, and need, to be available to your clients 24/7 - not just nights and weekends.

C) Computer (Preferably a Laptop) - There's no way around it, you have to have a computer & be savvy enough to use email. You would be wise to invest in some business management software, as well. If you'd like to save some money (and who wouldn't) then you can get the client & email management software Thunderbird from http://www.mozilla.com and you can get a free office suite from http://www.openoffice.org The only downside to these programs is that they do not sync with your PDA or Smart Phone. A Laptop is a BIG plus because you'll be able to work from home or on the go. New Real Estate Agents are often surprised by just how much time they spend AWAY from the office, and a laptop helps you stay on top of your work while on the go.

D) Real Estate Friendly Car - You don't have to have a Lexus, but your Miata won't do the trick. Make sure that you have a 4 door car or SUV that is comfortable and presentable. Keep it clean, and for God's sake, don't smoke in it! You're going to spend a LOT of time in your car, and put a lot of miles on it, so if it's fuel efficient, it's a BIG plus. If you're driving a sporty convertible, or still have your KILLER Jeep from college, it's time to trade it in.

4) Lack of Proper Funding

If you've taken the time to create your business plan, than you should definitely have your budget, but I can't stress enough the importance of having and following your budget. However, the budget alone doesn't address the important aspect of funding. 90% of all small businesses fail due to lack of funding. Typically, new agents will want to have 3 months of reserves in savings before taking the leap into full time agency. However, money in the bank isn't the only way to answer the question of funding. Maybe your partner can support you for a certain period of time. You can keep a part-time job that won't interfere with your business as a Real Estate Agent. Many successful waiters make the transition to successful real estate agents with no money in the bank. When you start your new business, don't expect to earn any income for, at the least, 60 days.

5) Refusing to Spend Money on Marketing

Most new Real Estate Agents don't realize that the hardest part of the business is finding the business. Furthermore, they've just shelled out around $2000 for their license and board dues, so the LAST thing they want to do is to spend more money! Again, the problem lies in the lack of understanding that you've just jumped into the Real Estate Business, you haven't taken a new job. And any good businessperson will tell you that how much business you GET is directly correlative to how much you SPEND on marketing. If you choose the right brokerage, then you will get some good inbound leads. However, don't neglect a good, personal marketing campaign from the beginning to get your own name out as the Real Estate Agent to go to.

6) Not Focusing Their Marketing Efforts in the Most Effective Areas

One reason why many new Real Estate Agents who do begin spending money on personal marketing stop is because they spend it in the wrong place. The easiest place, and where conventional Real Estate tells you to spend your money, is in conventional print marketing - the newspaper, real estate magazines, etc... This is the most visible place to see real estate advertising, it's where large offices spend a good part of their money, and so many new agents mistakenly spend their money here. This becomes very frustrating to new agents because of its low return. Large brokerages can afford to spend their money here because they're filling two needs - they're marketing their own properties for sale while creating new buyer traffic for their buyer's agents. New Real Estate Agents should look to their own sphere of influence and referral marketing to see the most effective return on their investment. An agent can spend as little as $100/month marketing to their family, friends, and colleagues and see an incredible return. There are many great referral systems around that all focus on the same premise - that if you consistently market yourself to your sphere of influence as the Real Estate Agent to go to - then you will get more business. The key is to pick a system and to follow that system. You will see results.

7) Choosing the Wrong Brokerage for the Wrong Reasons

New Real Estate Agents choose their new broker for a variety of reasons - they have a good reputation, they offer the most competitive split, the office is close to their house, etc... While these alone aren't bad reasons to choose a broker, they aren't going to do a lot to help you in your success. The #1 reason to choose a broker, and the question to ask is, "What do you offer your new agents." If the answer is, "The most competitive split in town" you should definitely keep looking. Remember, 100% of $0 is still $0. If you're leaning towards the largest broker in town, who has a great reputation, remember this: You're starting a BUSINESS not a JOB. While it might be fantastic to brag to your friends about landing a job at a prestigious company, it's no accomplishment to hang your license on the same wall in the same office as other successful agents.

Your #1 concern when interviewing new Brokers is what they offer you as a new agent. Do they have incoming leads? What does their training program consist of? What's their retention level? What's their average sales price? Do they encourage their agents to promote themselves? A Broker's purpose is to help new agents start successful careers and to help established Agents progress their careers to the next level. As a new agent, concern yourself less with commission split or agency name and more with specific programs and agency standards.

A new career in Real Estate is very exciting. Starting a Real Estate business provides the new Agent with opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a new Real Estate career can also be a very scary prospect. However, if you avoid the 7 Top Mistakes Rookie Real Estate Agents Make, then you'll be far ahead of the competition!

 

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The Real Estate Sector

Every business has it's jargon and residential real estate is no exception. Mark Nash author of 1001 Tips for Buying and Selling a Home shares commonly used terms with home buyers and sellers.

1031 exchange or Starker exchange: The delayed exchange of properties that qualifies for tax purposes as a tax-deferred exchange.

1099: The statement of income reported to the IRS for an independent contractor.

A/I: A contract that is pending with attorney and inspection contingencies.

Accompanied showings: Those showings where the listing agent must accompany an agent and his or her clients when viewing a listing.

Addendum: An addition to; a document.

Adjustable rate mortgage (ARM): A type of mortgage loan whose interest rate is tied to an economic index, which fluctuates with the market. Typical ARM periods are one, three, five, and seven years.

Agent: The licensed real estate salesperson or broker who represents buyers or sellers.

Annual percentage rate (APR): The total costs (interest rate, closing costs, fees, and so on) that are part of a borrower's loan, expressed as a percentage rate of interest. The total costs are amortized over the term of the loan.

Application fees: Fees that mortgage companies charge buyers at the time of written application for a loan; for example, fees for running credit reports of borrowers, property appraisal fees, and lender-specific fees.

Appointments: Those times or time periods an agent shows properties to clients.

Appraisal: A document of opinion of property value at a specific point in time.

Appraised price (AP): The price the third-party relocation company offers (under most contracts) the seller for his or her property. Generally, the average of two or more independent appraisals.

"As-is": A contract or offer clause stating that the seller will not repair or correct any problems with the property. Also used in listings and marketing materials.

Assumable mortgage: One in which the buyer agrees to fulfill the obligations of the existing loan agreement that the seller made with the lender. When assuming a mortgage, a buyer becomes personally liable for the payment of principal and interest. The original mortgagor should receive a written release from the liability when the buyer assumes the original mortgage.

Back on market (BOM): When a property or listing is placed back on the market after being removed from the market recently.

Back-up agent: A licensed agent who works with clients when their agent is unavailable.

Balloon mortgage: A type of mortgage that is generally paid over a short period of time, but is amortized over a longer period of time. The borrower typically pays a combination of principal and interest. At the end of the loan term, the entire unpaid balance must be repaid.

Back-up offer: When an offer is accepted contingent on the fall through or voiding of an accepted first offer on a property.

Bill of sale: Transfers title to personal property in a transaction.

Board of REALTORS® (local): An association of REALTORS® in a specific geographic area.

Broker: A state licensed individual who acts as the agent for the seller or buyer.

Broker of record: The person registered with his or her state licensing authority as the managing broker of a specific real estate sales office.

Broker's market analysis (BMA): The real estate broker's opinion of the expected final net sale price, determined after acquisition of the property by the third-party company.

Broker's tour: A preset time and day when real estate sales agents can view listings by multiple brokerages in the market.

Buyer: The purchaser of a property.

Buyer agency: A real estate broker retained by the buyer who has a fiduciary duty to the buyer.

Buyer agent: The agent who shows the buyer's property, negotiates the contract or offer for the buyer, and works with the buyer to close the transaction.

Carrying costs: Cost incurred to maintain a property (taxes, interest, insurance, utilities, and so on).

Closing: The end of a transaction process where the deed is delivered, documents are signed, and funds are dispersed.

CLUE (Comprehensive Loss Underwriting Exchange): The insurance industry's national database that assigns individuals a risk score. CLUE also has an electronic file of a properties insurance history. These files are accessible by insurance companies nationally. These files could impact the ability to sell property as they might contain information that a prospective buyer might find objectionable, and in some cases not even insurable.

Commission: The compensation paid to the listing brokerage by the seller for selling the property. A buyer may also be required to pay a commission to his or her agent.

Commission split: The percentage split of commission compen-sation between the real estate sales brokerage and the real estate sales agent or broker.

Competitive Market Analysis (CMA): The analysis used to provide market information to the seller and assist the real estate broker in securing the listing.

Condominium association: An association of all owners in a condominium.

Condominium budget: A financial forecast and report of a condominium association's expenses and savings.

Condominium by-laws: Rules passed by the condominium association used in administration of the condominium property.

Condominium declarations: A document that legally establishes a condominium.

Condominium right of first refusal: A person or an association that has the first opportunity to purchase condominium real estate when it becomes available or the right to meet any other offer.

Condominium rules and regulation: Rules of a condominium association by which owners agree to abide.

Contingency: A provision in a contract requiring certain acts to be completed before the contract is binding.

Continue to show: When a property is under contract with contingencies, but the seller requests that the property continue to be shown to prospective buyers until contingencies are released.

Contract for deed: A sales contract in which the buyer takes possession of the property but the seller holds title until the loan is paid. Also known as an installment sale contract.

Conventional mortgage: A type of mortgage that has certain limitations placed on it to meet secondary market guidelines. Mortgage companies, banks, and savings and loans underwrite conventional mortgages.

Cooperating commission: A commission offered to the buyer's agent brokerage for bringing a buyer to the selling brokerage's listing.

Cooperative (Co-op): Where the shareholders of the corporation are the inhabitants of the building. Each shareholder has the right to lease a specific unit. The difference between a co-op and a condo is in a co-op, one owns shares in a corporation; in a condo one owns the unit fee simple.

Counteroffer: The response to an offer or a bid by the seller or buyer after the original offer or bid.

Credit report: Includes all of the history for a borrower's credit accounts, outstanding debts, and payment timelines on past or current debts.

Credit score: A score assigned to a borrower's credit report based on information contained therein.

Curb appeal: The visual impact a property projects from the street.

Days on market: The number of days a property has been on the market.

Decree: A judgment of the court that sets out the agreements and rights of the parties.

Disclosures: Federal, state, county, and local requirements of disclosure that the seller provides and the buyer acknowledges.

Divorce: The legal separation of a husband and wife effected by a court decree that totally dissolves the marriage relationship.

DOM: Days on market.

Down payment: The amount of cash put toward a purchase by the borrower.

Drive-by: When a buyer or seller agent or broker drives by a property listing or potential listing.

Dual agent: A state-licensed individual who represents the seller and the buyer in a single transaction.

Earnest money deposit: The money given to the seller at the time the offer is made as a sign of the buyer's good faith.

Escrow account for real estate taxes and insurance: An account into which borrowers pay monthly prorations for real estate taxes and property insurance.

Exclusions: Fixtures or personal property that are excluded from the contract or offer to purchase.

Expired (listing): A property listing that has expired per the terms of the listing agreement.

Fax rider: A document that treats facsimile transmission as the same legal effect as the original document.

Feedback: The real estate sales agent and/or his or her client's reaction to a listing or property. Requested by the listing agent.

Fee simple: A form of property ownership where the owner has the right to use and dispose of property at will.

FHA (Federal Housing Administration) Loan Guarantee: A guarantee by the FHA that a percentage of a loan will be underwritten by a mortgage company or banker.

Fixture: Personal property that has become part of the property through permanent attachment.

Flat fee: A predetermined amount of compensation received or paid for a specific service in a real estate transaction.

For sale by owner (FSBO): A property that is for sale by the owner of the property.

Gift letter: A letter to a lender stating that a gift of cash has been made to the buyer(s) and that the person gifting the cash to the buyer is not expecting the gift to be repaid. The exact wording of the gift letter should be requested of the lender.

Good faith estimate: Under the Real Estate Settlement Procedures Act, within three days of an application submission, lenders are required to provide in writing to potential borrowers a good faith estimate of closing costs.

Gross sale price: The sale price before any concessions.

Hazard insurance: Insurance that covers losses to real estate from damages that might affect its value.

Homeowner's insurance: Coverage that includes personal liability and theft insurance in addition to hazard insurance.

HUD/RESPA (Housing and Urban Development/Real Estate Settlement Procedures Act): A document and statement that details all of the monies paid out and received at a real estate property closing.

Hybrid adjustable rate: Offers a fixed rate the first 5 years and then adjusts annually for the next 25 years.

IDX (Internet Data Exchange): Allows real estate brokers to advertise each other's listings posted to listing databases such as the multiple listing service.

Inclusions: Fixtures or personal property that are included in a contract or offer to purchase.

Independent contractor: A real estate sales agent who conducts real estate business through a broker. This agent does not receive salary or benefits from the broker.

Inspection rider: Rider to purchase agreement between third party relocation company and buyer of transferee's property stating that property is being sold "as is." All inspection reports conducted by the third party company are disclosed to the buyer and it is the buyer's duty to do his/her own inspections and tests.

Installment land contract: A contract in which the buyer takes possession of the property while the seller retains the title to the property until the loan is paid.

Interest rate float: The borrower decides to delay locking their interest rate on their loan. They can float their rate in expectation of the rate moving down. At the end of the float period they must lock a rate.

Interest rate lock: When the borrower and lender agree to lock a rate on loan. Can have terms and conditions attached to the lock.

List date: Actual date the property was listed with the current broker.

List price: The price of a property through a listing agreement.

Listing: Brokers written agreement to represent a seller and their property. Agents refer to their inventory of agreements with sellers as listings.

Listing agent: The real estate sales agent that is representing the sellers and their property, through a listing agreement.

Listing agreement: A document that establishes the real estate agent's agreement with the sellers to represent their property in the market.

Listing appointment: The time when a real estate sales agent meets with potential clients selling a property to secure a listing agreement.

Listing exclusion: A clause included in the listing agreement when the seller (transferee) lists his or her property with a broker.

Loan: An amount of money that is lent to a borrower who agrees to repay the amount plus interest.

Loan application: A document that buyers who are requesting a loan fill out and submit to their lender.

Loan closing costs: The costs a lender charges to close a borrower's loan. These costs vary from lender to lender and from market to market.

Loan commitment: A written document telling the borrowers that the mortgage company has agreed to lend them a specific amount of money at a specific interest rate for a specific period of time. The loan commitment may also contain conditions upon which the loan commitment is based.

Loan package: The group of mortgage documents that the borrower's lender sends to the closing or escrow.

Loan processor: An administrative individual who is assigned to check, verify, and assemble all of the documents and the buyer's funds and the borrower's loan for closing.

Loan underwriter: One who underwrites a loan for another. Some lenders have investors underwrite a buyer's loan.

Lockbox: A tool that allows secure storage of property keys on the premises for agent use. A combo uses a rotating dial to gain access with a combination; a Supra® (electronic lockbox or ELB) features a keypad.

Managing broker: A person licensed by the state as a broker who is also the broker of record for a real estate sales office. This person manages the daily operations of a real estate sales office.

Marketing period: The period of time in which the transferee may market his or her property (typically 45, 60, or 90 days), as directed by the third-party company's contract with the employer.

Mortgage banker: One who lends the bank's funds to borrowers and brings lenders and borrowers together.

Mortgage broker: A business that or an individual who unites lenders and borrowers and processes mortgage applications.

Mortgage loan servicing company: A company that collects monthly mortgage payments from borrowers.

Multiple listing service (MLS): A service that compiles available properties for sale by member brokers.

Multiple offers: More than one buyers broker present an offer on one property where the offers are negotiated at the same time.

National Association of REALTORS® (NAR): A national association comprised of real estate sales agents.

Net sales price: Gross sales price less concessions to the buyers.

Off market: A property listing that has been removed from the sale inventory in a market. A property can be temporarily or permanently off market.

Offer to purchase: When a buyer proposes certain terms and presents these terms to the seller.

Office tour/caravan: A walking or driving tour by a real estate sales office of listings represented by agents in the office. Usually held on a set day and time.

Parcel identification number (PIN): A taxing authority's tracking number for a property.

Pending: A real estate contract that has been accepted on a property but the transaction has not closed.

Personal assistant: A real estate sales agent administrative assistant.

Planned unit development (PUD): Mixed-use development that sets aside areas for residential use, commercial use, and public areas such as schools, parks, and so on.

Preapproval: A higher level of buyer/borrower prequalification required by a mortgage lender. Some preapprovals have conditions the borrower must meet.

Prepaid interest: Funds paid by the borrower at closing based on the number of days left in the month of closing.

Prepayment penalty: A fine imposed on the borrower by the lender when the loan is paid off before it comes due.

Prequalification: The mortgage company tells a buyer in advance of the formal mortgage application, how much money the borrower can afford to borrow. Some prequalifications have conditions that the borrower must meet.

Preview appointment: When a buyer's agent views a property alone to see if it meets his or her buyer's needs.

Pricing: When the potential seller's agent goes to the potential listing property to view it for marketing and pricing purposes.

Principal: The amount of money a buyer borrows.

Principal, interest, taxes, and insurance (PITI): The four parts that make up a borrower's monthly mortgage payment. Private mortgage insurance (PMI): A special insurance paid by a borrower in monthly installments, typically of loans of more than 80 percent of the value of the property.

Professional designation: Additional nonlicensed real estate education completed by a real estate professional.

Professional regulation: A state licensing authority that oversees and disciplines licensees.

Promissory note: A promise-to-pay document used with a contract or an offer to purchase.

R & I: Estimated and actual repair and improvement costs.

Real estate agent: An individual who is licensed by the state and who acts on behalf of his or her client, the buyer or seller. The real estate agent who does not have a broker's license must work for a licensed broker.

Real estate contract: A binding agreement between buyer and seller. It consists of an offer and an acceptance as well as consideration (i.e., money).

REALTOR®: A registered trademark of the National Association of REALTORS® that can be used only by its members.

Release deed: A written document stating that a seller or buyer has satisfied his or her obligation on a debt. This document is usually recorded.

Relist: Property that was listed with another broker but relisted with a current broker.

Rider: A separate document that is attached to a document in some way. This is done so that an entire document does not need to be rewritten.

Salaried agent: A real estate sales agent or broker who receives all or part of his or her compensation in real estate sales in the form of a salary.

Sale price: The price paid for a listing or property.

Seller (owner): The owner of a property who has signed a listing agreement or a potential listing agreement.

Showing: When a listing is shown to prospective buyers or the buyer's agent (preview).

Special assessment: A special and additional charge to a unit in a condominium or cooperative. Also a special real estate tax for improvements that benefit a property.

State Association of REALTORS®: An association of REALTORS® in a specific state.

Supra®: An electronic lockbox (ELB) that holds keys to a property. The user must have a Supra keypad to use the lockbox.

Temporarily off market (TOM): A listed property that is taken off the market due to illness, travel, needed repairs, and so on.

Temporary housing: Housing a transferee occupies until permanent housing is selected or becomes available.

Transaction: The real estate process from offer to closing or escrow.

Transaction management fee (TMF): A fee charged by listing brokers to the seller as part of the listing agreement.

Transaction sides: The two sides of a transaction, sellers and buyers. The term used to record the number of transactions in which a real estate sales agent or broker was involved during a specific period.

24-hour notice: Allowed by law, tenants must be informed of showing 24 hours before you arrive.

Under contract: A property that has an accepted real estate contract between seller and buyer.

VA (Veterans Administration) Loan Guarantee: A guarantee on a mortgage amount backed by the Department of Veterans Affairs.

Virtual tour: An Internet web/cd-rom-based video presentation of a property.

VOW's (Virtual Office web sites): An Internet based real estate brokerage business model that works with real estate consumers in same way as a brick and mortar real estate brokerage.

W-2: The Internal Revenue form issued by employer to employee to reflect compensation and deductions to compensation.

W-9: The Internal Revenue form requesting taxpayer identification number and certification.

Walk-through: A showing before closing or escrow that permits the buyers one final tour of the property they are purchasing.

Will: A document by which a person disposes of his or her property after death.

 


Real Estate Agents In My Area California

Real Estate Agents Near Me Santa Clarita

Real Estate Agents Near Me Santa Clarita
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Real Estate Agents In My Area California

House For Sale Near Me Santa Clarita

Looking to Find Real Estate Agents in Santa Clarita ?

Are considering investing in real estate in Santa Clarita ? If you do, you must learn all you can about the market before spending a dime. Should you fail to do so, you could lose what you are investing. Read through this piece to make the right steps forward.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Try not to overextend yourself. Don’t get overeager. Start small and work your way up. Don’t just assume that you can spend a great deal and make that money back. That’s an easy way to back yourself into a corner. Wait until your smaller investments can fund some of your more ambitious ones.

The rent you are getting from properties should cover their mortgage. Doing this will set you off on the right foot. You don’t want to end up having to dip into your own pocket to pay any part of the mortgage.

Think about adding business properties to your investment goals. Business locations can turn into long-term rentals, which makes them profitable and safe. Think about a business complex or small strip mall, which will give you several different opportunities when it comes to investments.

Do a little research into the city government for any properties you are considering investing in. The city should have a website. There you will find pertinent details that can influence real estate prices in the near future. Growing cities are usually great investments in Santa Clarita.

If you want to buy a lot of properties and hold them, be sure to choose a specific area to invest in. You will save time and money on maintenance and travel this way. You will also increase your expertise in the local market.

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Look for properties that will be in demand. Really stop and think about what most people will be looking for. Try to find moderately priced properties on quiet streets. Looks for homes with garages and two or three bedrooms. It’s always important to consider what the average person is going to be searching for in a home.

Get your funding in check prior to scouting homes. You are wasting time if you don’t know where the finances will come from. In fact, the delay after you’ve found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.

Any tenant you’re thinking of renting to must be screened thoroughly. Too often an irresponsible or unreliable tenant can do expensive damage or are perpetually behind with their rent. Before taking in anyone, get their references if you can, and conduct a complete credit and background check on them. When you exercise due diligence, you will have reliable tenants.

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Do not allow your emotions to get in the way while you are negotiating. This is an investment purchase, not a home you plan on living in later. Keep your emotions in check so that you do not overpay and end up with less profit potential. If you heed the advice given here, it gives you a much better chance to be successful.

Have a business account, and stick to using it. If you invest too much of your personal money in a property, you could lose money. This might leave you short on funds to pay your bills or take care of personal needs. Treat this like a business so you don’t risk losing it all.

Your rental contract should include the requirement of a security deposit. This protects your interests if your tenant leaves your property in an uninhabitable state when he moves out. The contract gives you the right to keep the security deposit in order to hire a cleaning service or a repair service to fix the problems.

Highly Recommended Homes For Sale Near Me

Learn as much as you can before making your first investment in Santa Clarita. There are a ton of books available on real estate investing. Plus there are many online (and offline) communities out there where real estate investors share their best practices. The more you learn, the better chance that you won’t make any critical errors.

Do not sign any contracts to buy a piece of land before you do your research carefully to confirm the ownership of the land. Hire your own surveyor to identify the property lines clearly. This prevents misrepresentation of the piece of property for sale, and it mitigates any future problems.

Don’t be taken in by slick talkers who boast that they made millions in real estate and that they can teach anyone to do it. The success stories always get more attention than the failures so don’t pin your hopes on being the next success story. There are no get rich quick methods that are sure things.

Have an extra exit strategy or two. When it comes time to sell, you might find it takes longer than you would like. By having a back up plan or two, you can keep yourself financially safe so you are able to move forward in your investment property career.

Real estate investing is a huge responsibility. Though you should make investments when you are younger, it is important that you are stable, as well. Get to know others in the community while you work on your savings account.

Real estate investing offers many opportunities, but you have to be aware of the risks to avoid losing your money. You can be pretty sure that your real estate investments in Santa Clarita are smart ones when you use the ideas within this article. Keep it in mind for the future.

 

Studio Apartment For Rent

The Future of Commercial Real Estate

Real estate has always been known as the safest of investments.

In fact, real estate investment completed after proper research into and evaluation of the property (to determine actual and future value), can lead to tremendous profit.
This is one reason many people choose real estate investment as their full time job.

Discussions about real estate tend to focus on residential real estate; commercial real estate, except to seasoned investors, typically seems to take a back seat.
However, commercial real estate is also a great option for investing in real estate.

Commercial real estate includes a large variety of property types.
To a majority of people, commercial real estate is only office complexes or factories or industrial units.
However, that is not all of commercial real estate. There is far more to commercial real estate.
Strip malls, health care centers, retail units and warehouse are all good examples of commercial real estate as is vacant land.
Even residential properties like apartments (or any property that consists of more than four residential units) are considered commercial real estate. In fact, such commercial real estate is very much in demand.

So, is commercial real estate really profitable?
Absolutely, in fact if it were not profitable I would not be writing about commercial real estate at all!!
However, with commercial real estate recognizing the opportunity is a bit more difficult when compared to residential real estate.
But commercial real estate profits can be huge (in fact, much bigger than you might realize from a residential real estate transaction of the same size).

There are many reasons to delve into commercial real estate investment.
For example you might purchase to resell after a certain appreciation level has occurred or to generate a substantial income by leasing the property out to retailers or other business types or both.

In fact, commercial real estate development is treated as a preliminary
indicator of the impending growth of the residential real estate market.
Therefore, once you recognize the probability of significant commercial growth within a region (whatever the reason i.e. municipal tax concessions), you should begin to evaluate the potential for appreciation in commercial real estate prices and implement your investment strategy quickly.

Regarding commercial real estate investment strategies it is important that you identify and set investment goals (i.e. immediate income through rental vs later investment income through resale) and that you know what you can afford and how you will effect the purchase.

It would be wise to determine your goals then meet with your banker (or financier(s)) prior to viewing and selecting your commercial real estate.

Also remain open minded and understand that should the right (perfect)
opportunity present itself, your investment strategy might need to be revisited and altered, sometimes considerably.
For example: If you find that commercial real estate, (i.e. land) is available in big chunks which are too expensive for you to buy alone but represents tremendous opportunity, you could look at forming a small investor group (i.e. with friends or family) and buy it together (then split the profits later).

Or in another case (i.e. when a retail boom is expected in a region), though your commercial real estate investment strategy was devised around purchasing vacant land, you might find it more profitable to buy a property such as a strip mall or small plaza that you can lease to retailers or a property that you can convert into a warehouse for the purpose of renting to small businesses.

So in a nutshell, commercial real estate presents a veritable plethora of
investing opportunities, you just need to recognize them and go for it.

 

Highly Recommended Apartment For Rent Near Me

Real Estate Leads 101 - Are You Copping Out of Following Up

Although serious supply-demand imbalances have continued to plague real estate markets into the 2000s in many areas, the mobility of capital in current sophisticated financial markets is encouraging to real estate developers. The loss of tax-shelter markets drained a significant amount of capital from real estate and, in the short run, had a devastating effect on segments of the industry. However, most experts agree that many of those driven from real estate development and the real estate finance business were unprepared and ill-suited as investors. In the long run, a return to real estate development that is grounded in the basics of economics, real demand, and real profits will benefit the industry.

Syndicated ownership of real estate was introduced in the early 2000s. Because many early investors were hurt by collapsed markets or by tax-law changes, the concept of syndication is currently being applied to more economically sound cash flow-return real estate. This return to sound economic practices will help ensure the continued growth of syndication. Real estate investment trusts (REITs), which suffered heavily in the real estate recession of the mid-1980s, have recently reappeared as an efficient vehicle for public ownership of real estate. REITs can own and operate real estate efficiently and raise equity for its purchase. The shares are more easily traded than are shares of other syndication partnerships. Thus, the REIT is likely to provide a good vehicle to satisfy the public’s desire to own real estate.

A final review of the factors that led to the problems of the 2000s is essential to understanding the opportunities that will arise in the 2000s. Real estate cycles are fundamental forces in the industry. The oversupply that exists in most product types tends to constrain development of new products, but it creates opportunities for the commercial banker.

The decade of the 2000s witnessed a boom cycle in real estate. The natural flow of the real estate cycle wherein demand exceeded supply prevailed during the 1980s and early 2000s. At that time office vacancy rates in most major markets were below 5 percent. Faced with real demand for office space and other types of income property, the development community simultaneously experienced an explosion of available capital. During the early years of the Reagan administration, deregulation of financial institutions increased the supply availability of funds, and thrifts added their funds to an already growing cadre of lenders. At the same time, the Economic Recovery and Tax Act of 1981 (ERTA) gave investors increased tax “write-off” through accelerated depreciation, reduced capital gains taxes to 20 percent, and allowed other income to be sheltered with real estate “losses.” In short, more equity and debt funding was available for real estate investment than ever before.

Even after tax reform eliminated many tax incentives in 1986 and the subsequent loss of some equity funds for real estate, two factors maintained real estate development. The trend in the 2000s was toward the development of the significant, or “trophy,” real estate projects. Office buildings in excess of one million square feet and hotels costing hundreds of millions of dollars became popular. Conceived and begun before the passage of tax reform, these huge projects were completed in the late 1990s. The second factor was the continued availability of funding for construction and development. Even with the debacle in Texas, lenders in New England continued to fund new projects. After the collapse in New England and the continued downward spiral in Texas, lenders in the mid-Atlantic region continued to lend for new construction. After regulation allowed out-of-state banking consolidations, the mergers and acquisitions of commercial banks created pressure in targeted regions. These growth surges contributed to the continuation of large-scale commercial mortgage lenders [http://www.cemlending.com] going beyond the time when an examination of the real estate cycle would have suggested a slowdown. The capital explosion of the 2000s for real estate is a capital implosion for the 2000s. The thrift industry no longer has funds available for commercial real estate. The major life insurance company lenders are struggling with mounting real estate. In related losses, while most commercial banks attempt to reduce their real estate exposure after two years of building loss reserves and taking write-downs and charge-offs. Therefore the excessive allocation of debt available in the 2000s is unlikely to create oversupply in the 2000s.

No new tax legislation that will affect real estate investment is predicted, and, for the most part, foreign investors have their own problems or opportunities outside of the United States. Therefore excessive equity capital is not expected to fuel recovery real estate excessively.

Looking back at the real estate cycle wave, it seems safe to suggest that the supply of new development will not occur in the 2000s unless warranted by real demand. Already in some markets the demand for apartments has exceeded supply and new construction has begun at a reasonable pace.

Opportunities for existing real estate that has been written to current value de-capitalized to produce current acceptable return will benefit from increased demand and restricted new supply. New development that is warranted by measurable, existing product demand can be financed with a reasonable equity contribution by the borrower. The lack of ruinous competition from lenders too eager to make real estate loans will allow reasonable loan structuring. Financing the purchase of de-capitalized existing real estate for new owners can be an excellent source of real estate loans for commercial banks.

As real estate is stabilized by a balance of demand and supply, the speed and strength of the recovery will be determined by economic factors and their effect on demand in the 2000s. Banks with the capacity and willingness to take on new real estate loans should experience some of the safest and most productive lending done in the last quarter century. Remembering the lessons of the past and returning to the basics of good real estate and good real estate lending will be the key to real estate banking in the future.

 


Real Estate Agents In My Area California

House For Sale Near Me Santa Clarita

House For Sale Near Me Santa Clarita
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Real Estate Agents In My Area California

Houses For Sale Near Me Santa Clarita

Looking to Find Realtors in Santa Clarita ?

Are considering investing in real estate in Santa Clarita ? If you do, you must learn all you can about the market before spending a dime. Should you fail to do so, you could lose what you are investing. Read through this piece to make the right steps forward.

Do not be afraid to spend money on marketing. It is easy to just focus on the numbers and get fixated on how much marketing is costing you. However, it is important to think of the marketing as an investment in and of itself. If done the right way, it will only benefit you in the end.

Inspections cost money. However, if there are problems with the property that cannot be seen by the naked eye, you are likely to spend much more money in the long run. Therefore, think of an inspection like an investment and always have one done prior to purchasing a property. It may not uncover anything, but there is always the chance that there is something seriously wrong with a home.

Try not to overextend yourself. Don’t get overeager. Start small and work your way up. Don’t just assume that you can spend a great deal and make that money back. That’s an easy way to back yourself into a corner. Wait until your smaller investments can fund some of your more ambitious ones.

The rent you are getting from properties should cover their mortgage. Doing this will set you off on the right foot. You don’t want to end up having to dip into your own pocket to pay any part of the mortgage.

Think about adding business properties to your investment goals. Business locations can turn into long-term rentals, which makes them profitable and safe. Think about a business complex or small strip mall, which will give you several different opportunities when it comes to investments.

Do a little research into the city government for any properties you are considering investing in. The city should have a website. There you will find pertinent details that can influence real estate prices in the near future. Growing cities are usually great investments in Santa Clarita.

If you want to buy a lot of properties and hold them, be sure to choose a specific area to invest in. You will save time and money on maintenance and travel this way. You will also increase your expertise in the local market.

Top Rated Real Estate Agents In My Area

Look for properties that will be in demand. Really stop and think about what most people will be looking for. Try to find moderately priced properties on quiet streets. Looks for homes with garages and two or three bedrooms. It’s always important to consider what the average person is going to be searching for in a home.

Get your funding in check prior to scouting homes. You are wasting time if you don’t know where the finances will come from. In fact, the delay after you’ve found the perfect home can be the difference between you getting the home and not! The best properties will always have a line of interested investors.

Any tenant you’re thinking of renting to must be screened thoroughly. Too often an irresponsible or unreliable tenant can do expensive damage or are perpetually behind with their rent. Before taking in anyone, get their references if you can, and conduct a complete credit and background check on them. When you exercise due diligence, you will have reliable tenants.

Estate Sales Near Me

Do not allow your emotions to get in the way while you are negotiating. This is an investment purchase, not a home you plan on living in later. Keep your emotions in check so that you do not overpay and end up with less profit potential. If you heed the advice given here, it gives you a much better chance to be successful.

Have a business account, and stick to using it. If you invest too much of your personal money in a property, you could lose money. This might leave you short on funds to pay your bills or take care of personal needs. Treat this like a business so you don’t risk losing it all.

Your rental contract should include the requirement of a security deposit. This protects your interests if your tenant leaves your property in an uninhabitable state when he moves out. The contract gives you the right to keep the security deposit in order to hire a cleaning service or a repair service to fix the problems.

Affordable Homes For Sale Near Me

Learn as much as you can before making your first investment in Santa Clarita. There are a ton of books available on real estate investing. Plus there are many online (and offline) communities out there where real estate investors share their best practices. The more you learn, the better chance that you won’t make any critical errors.

Do not sign any contracts to buy a piece of land before you do your research carefully to confirm the ownership of the land. Hire your own surveyor to identify the property lines clearly. This prevents misrepresentation of the piece of property for sale, and it mitigates any future problems.

Don’t be taken in by slick talkers who boast that they made millions in real estate and that they can teach anyone to do it. The success stories always get more attention than the failures so don’t pin your hopes on being the next success story. There are no get rich quick methods that are sure things.

Have an extra exit strategy or two. When it comes time to sell, you might find it takes longer than you would like. By having a back up plan or two, you can keep yourself financially safe so you are able to move forward in your investment property career.

Real estate investing is a huge responsibility. Though you should make investments when you are younger, it is important that you are stable, as well. Get to know others in the community while you work on your savings account.

Real estate investing offers many opportunities, but you have to be aware of the risks to avoid losing your money. You can be pretty sure that your real estate investments in Santa Clarita are smart ones when you use the ideas within this article. Keep it in mind for the future.

 

Cheap Apartment For Rent Near Me

Home Buyers and Sellers Real Estate Glossary

Every time I talk to someone about my business and career, it always comes up that "they've thought about getting into real estate" or know someone who has. With so many people thinking about getting into real estate, and getting into real estate - why aren't there more successful Realtors in the world? Well, there's only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office - for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table - lots of energy and ambition - but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never been in business for themselves - they've only worked as employees. They, mistakenly, believe that getting into the Real Estate business is "getting a new job." What they're missing is that they're about to go into business for themselves. If you've ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your business plan helps you define where you're going, how you're getting there, and what it's going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals - What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide - you don't want to be the "jack of all trades & master of none" - choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they've completed a few transactions.

C) Market - who are you marketing yourself to?

D) Budget - consider yourself "new real estate agent, inc." and write down EVERY expense that you have - gas, groceries, cell phone, etc... Then write down the new expenses you're taking on - board dues, increased gas, increased cell usage, marketing (very important), etc...

E) Funding - how are you going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you've set for yourself, when will you break even?

F) Marketing Plan - how are you going to get the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction - Buyer's Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or "put your name to," are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they can take over the world! They're both focusing on the right part of their business - marketing - but they're doing each other no favors by choosing to give each other business. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction - you make a simple phone call and a new agent can bind the property in less than an hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position of "begging for a contract extension," or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) when they see a potential mistake - because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business...and best of all, it's free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not taking into account the amount of time you'll invest.) However, you'll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don't fool yourself - they are necessary - because your competitors are definitely using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you're going to run into. Joining your local (and state & national, by default) Board of Realtors will allow you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don't skimp in this area. Getting MLS access is one of the most important things you can do. It's what differentiates us from your average salesman - we don't sell homes, we present any of the homes that we have available. With MLS Access, you will have 99% of the homes for sale in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan - These days, everyone has a cell phone. But not everyone has a plan that will facilitate the level of use that Real Estate Agents need. Plan on getting at least 2000 minutes per month. You want, and need, to be available to your clients 24/7 - not just nights and weekends.

C) Computer (Preferably a Laptop) - There's no way around it, you have to have a computer & be savvy enough to use email. You would be wise to invest in some business management software, as well. If you'd like to save some money (and who wouldn't) then you can get the client & email management software Thunderbird from http://www.mozilla.com and you can get a free office suite from http://www.openoffice.org The only downside to these programs is that they do not sync with your PDA or Smart Phone. A Laptop is a BIG plus because you'll be able to work from home or on the go. New Real Estate Agents are often surprised by just how much time they spend AWAY from the office, and a laptop helps you stay on top of your work while on the go.

D) Real Estate Friendly Car - You don't have to have a Lexus, but your Miata won't do the trick. Make sure that you have a 4 door car or SUV that is comfortable and presentable. Keep it clean, and for God's sake, don't smoke in it! You're going to spend a LOT of time in your car, and put a lot of miles on it, so if it's fuel efficient, it's a BIG plus. If you're driving a sporty convertible, or still have your KILLER Jeep from college, it's time to trade it in.

4) Lack of Proper Funding

If you've taken the time to create your business plan, than you should definitely have your budget, but I can't stress enough the importance of having and following your budget. However, the budget alone doesn't address the important aspect of funding. 90% of all small businesses fail due to lack of funding. Typically, new agents will want to have 3 months of reserves in savings before taking the leap into full time agency. However, money in the bank isn't the only way to answer the question of funding. Maybe your partner can support you for a certain period of time. You can keep a part-time job that won't interfere with your business as a Real Estate Agent. Many successful waiters make the transition to successful real estate agents with no money in the bank. When you start your new business, don't expect to earn any income for, at the least, 60 days.

5) Refusing to Spend Money on Marketing

Most new Real Estate Agents don't realize that the hardest part of the business is finding the business. Furthermore, they've just shelled out around $2000 for their license and board dues, so the LAST thing they want to do is to spend more money! Again, the problem lies in the lack of understanding that you've just jumped into the Real Estate Business, you haven't taken a new job. And any good businessperson will tell you that how much business you GET is directly correlative to how much you SPEND on marketing. If you choose the right brokerage, then you will get some good inbound leads. However, don't neglect a good, personal marketing campaign from the beginning to get your own name out as the Real Estate Agent to go to.

6) Not Focusing Their Marketing Efforts in the Most Effective Areas

One reason why many new Real Estate Agents who do begin spending money on personal marketing stop is because they spend it in the wrong place. The easiest place, and where conventional Real Estate tells you to spend your money, is in conventional print marketing - the newspaper, real estate magazines, etc... This is the most visible place to see real estate advertising, it's where large offices spend a good part of their money, and so many new agents mistakenly spend their money here. This becomes very frustrating to new agents because of its low return. Large brokerages can afford to spend their money here because they're filling two needs - they're marketing their own properties for sale while creating new buyer traffic for their buyer's agents. New Real Estate Agents should look to their own sphere of influence and referral marketing to see the most effective return on their investment. An agent can spend as little as $100/month marketing to their family, friends, and colleagues and see an incredible return. There are many great referral systems around that all focus on the same premise - that if you consistently market yourself to your sphere of influence as the Real Estate Agent to go to - then you will get more business. The key is to pick a system and to follow that system. You will see results.

7) Choosing the Wrong Brokerage for the Wrong Reasons

New Real Estate Agents choose their new broker for a variety of reasons - they have a good reputation, they offer the most competitive split, the office is close to their house, etc... While these alone aren't bad reasons to choose a broker, they aren't going to do a lot to help you in your success. The #1 reason to choose a broker, and the question to ask is, "What do you offer your new agents." If the answer is, "The most competitive split in town" you should definitely keep looking. Remember, 100% of $0 is still $0. If you're leaning towards the largest broker in town, who has a great reputation, remember this: You're starting a BUSINESS not a JOB. While it might be fantastic to brag to your friends about landing a job at a prestigious company, it's no accomplishment to hang your license on the same wall in the same office as other successful agents.

Your #1 concern when interviewing new Brokers is what they offer you as a new agent. Do they have incoming leads? What does their training program consist of? What's their retention level? What's their average sales price? Do they encourage their agents to promote themselves? A Broker's purpose is to help new agents start successful careers and to help established Agents progress their careers to the next level. As a new agent, concern yourself less with commission split or agency name and more with specific programs and agency standards.

A new career in Real Estate is very exciting. Starting a Real Estate business provides the new Agent with opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a new Real Estate career can also be a very scary prospect. However, if you avoid the 7 Top Mistakes Rookie Real Estate Agents Make, then you'll be far ahead of the competition!

 

Real Estate Agent

Investing In Real Estate Investors

Every time I talk to someone about my business and career, it always comes up that "they've thought about getting into real estate" or know someone who has. With so many people thinking about getting into real estate, and getting into real estate - why aren't there more successful Realtors in the world? Well, there's only so much business to go around, so there can only be so many Real Estate Agents in the world. I feel, however, that the inherent nature of the business, and how different it is from traditional careers, makes it difficult for the average person to successfully make the transition into the Real Estate Business. As a Broker, I see many new agents make their way into my office - for an interview, and sometimes to begin their careers. New Real Estate Agents bring a lot of great qualities to the table - lots of energy and ambition - but they also make a lot of common mistakes. Here are the 7 top mistakes rookie Real Estate Agents Make.

1) No Business Plan or Business Strategy

So many new agents put all their emphasis on which Real Estate Brokerage they will join when their shiny new license comes in the mail. Why? Because most new Real Estate Agents have never been in business for themselves - they've only worked as employees. They, mistakenly, believe that getting into the Real Estate business is "getting a new job." What they're missing is that they're about to go into business for themselves. If you've ever opened the doors to ANY business, you know that one of the key ingredients is your business plan. Your business plan helps you define where you're going, how you're getting there, and what it's going to take for you to make your real estate business a success. Here are the essentials of any good business plan:

A) Goals - What do you want? Make them clear, concise, measurable, and achievable.

B) Services You Provide - you don't want to be the "jack of all trades & master of none" - choose residential or commercial, buyers/sellers/renters, and what area(s) you want to specialize in. New residential real estate agents tend to have the most success with buyers/renters and then move on to listing homes after they've completed a few transactions.

C) Market - who are you marketing yourself to?

D) Budget - consider yourself "new real estate agent, inc." and write down EVERY expense that you have - gas, groceries, cell phone, etc... Then write down the new expenses you're taking on - board dues, increased gas, increased cell usage, marketing (very important), etc...

E) Funding - how are you going to pay for your budget w/ no income for the first (at least) 60 days? With the goals you've set for yourself, when will you break even?

F) Marketing Plan - how are you going to get the word out about your services? The MOST effective way to market yourself is to your own sphere of influence (people you know). Make sure you do so effectively and systematically.

2) Not Using the Best Possible Closing Team

They say the greatest businesspeople surround themselves with people that are smarter than themselves. It takes a pretty big team to close a transaction - Buyer's Agent, Listing Agent, Lender, Insurance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Real Estate Agent, you are in the position to refer your client to whoever you choose, and you should make sure that anyone you refer in will be an asset to the transaction, not someone who will bring you more headache. And the closing team you refer in, or "put your name to," are there to make you shine! When they perform well, you get to take part of the credit because you referred them into the transaction.

The deadliest duo out there is the New Real Estate Agent & New Mortgage Broker. They get together and decide that, through their combined marketing efforts, they can take over the world! They're both focusing on the right part of their business - marketing - but they're doing each other no favors by choosing to give each other business. If you refer in a bad insurance agent, it might cause a minor hiccup in the transaction - you make a simple phone call and a new agent can bind the property in less than an hour. However, because it typically takes at least two weeks to close a loan, if you use an inexperienced lender, the result can be disastrous! You may find yourself in a position of "begging for a contract extension," or worse, being denied a contract extension.

A good closing team will typically know more than their role in the transaction. Due to this, you can turn to them with questions, and they will step in (quietly) when they see a potential mistake - because they want to help you, and in return receive more of your business. Using good, experienced players for your closing team will help you infinitely in conducting business worthy of MORE business...and best of all, it's free!

3) Not Arming Themselves with the Necessary Tools

Getting started as a Real Estate Agent is expensive. In Texas, the license alone is an investment that will cost between $700 and $900 (not taking into account the amount of time you'll invest.) However, you'll run into even more expenses when you go to arm yourself with the necessary tools of the trade. And don't fool yourself - they are necessary - because your competitors are definitely using every tool to help THEM.

A) MLS Access is probably the most expensive necessity you're going to run into. Joining your local (and state & national, by default) Board of Realtors will allow you to pay for MLS access, and in Austin, Texas, will run around $1000. However, don't skimp in this area. Getting MLS access is one of the most important things you can do. It's what differentiates us from your average salesman - we don't sell homes, we present any of the homes that we have available. With MLS Access, you will have 99% of the homes for sale in your area available to present to your clients.

B) Mobile Phone w/ a Beefy Plan - These days, everyone has a cell phone. But not everyone has a plan that will facilitate the level of use that Real Estate Agents need. Plan on getting at least 2000 minutes per month. You want, and need, to be available to your clients 24/7 - not just nights and weekends.

C) Computer (Preferably a Laptop) - There's no way around it, you have to have a computer & be savvy enough to use email. You would be wise to invest in some business management software, as well. If you'd like to save some money (and who wouldn't) then you can get the client & email management software Thunderbird from http://www.mozilla.com and you can get a free office suite from http://www.openoffice.org The only downside to these programs is that they do not sync with your PDA or Smart Phone. A Laptop is a BIG plus because you'll be able to work from home or on the go. New Real Estate Agents are often surprised by just how much time they spend AWAY from the office, and a laptop helps you stay on top of your work while on the go.

D) Real Estate Friendly Car - You don't have to have a Lexus, but your Miata won't do the trick. Make sure that you have a 4 door car or SUV that is comfortable and presentable. Keep it clean, and for God's sake, don't smoke in it! You're going to spend a LOT of time in your car, and put a lot of miles on it, so if it's fuel efficient, it's a BIG plus. If you're driving a sporty convertible, or still have your KILLER Jeep from college, it's time to trade it in.

4) Lack of Proper Funding

If you've taken the time to create your business plan, than you should definitely have your budget, but I can't stress enough the importance of having and following your budget. However, the budget alone doesn't address the important aspect of funding. 90% of all small businesses fail due to lack of funding. Typically, new agents will want to have 3 months of reserves in savings before taking the leap into full time agency. However, money in the bank isn't the only way to answer the question of funding. Maybe your partner can support you for a certain period of time. You can keep a part-time job that won't interfere with your business as a Real Estate Agent. Many successful waiters make the transition to successful real estate agents with no money in the bank. When you start your new business, don't expect to earn any income for, at the least, 60 days.

5) Refusing to Spend Money on Marketing

Most new Real Estate Agents don't realize that the hardest part of the business is finding the business. Furthermore, they've just shelled out around $2000 for their license and board dues, so the LAST thing they want to do is to spend more money! Again, the problem lies in the lack of understanding that you've just jumped into the Real Estate Business, you haven't taken a new job. And any good businessperson will tell you that how much business you GET is directly correlative to how much you SPEND on marketing. If you choose the right brokerage, then you will get some good inbound leads. However, don't neglect a good, personal marketing campaign from the beginning to get your own name out as the Real Estate Agent to go to.

6) Not Focusing Their Marketing Efforts in the Most Effective Areas

One reason why many new Real Estate Agents who do begin spending money on personal marketing stop is because they spend it in the wrong place. The easiest place, and where conventional Real Estate tells you to spend your money, is in conventional print marketing - the newspaper, real estate magazines, etc... This is the most visible place to see real estate advertising, it's where large offices spend a good part of their money, and so many new agents mistakenly spend their money here. This becomes very frustrating to new agents because of its low return. Large brokerages can afford to spend their money here because they're filling two needs - they're marketing their own properties for sale while creating new buyer traffic for their buyer's agents. New Real Estate Agents should look to their own sphere of influence and referral marketing to see the most effective return on their investment. An agent can spend as little as $100/month marketing to their family, friends, and colleagues and see an incredible return. There are many great referral systems around that all focus on the same premise - that if you consistently market yourself to your sphere of influence as the Real Estate Agent to go to - then you will get more business. The key is to pick a system and to follow that system. You will see results.

7) Choosing the Wrong Brokerage for the Wrong Reasons

New Real Estate Agents choose their new broker for a variety of reasons - they have a good reputation, they offer the most competitive split, the office is close to their house, etc... While these alone aren't bad reasons to choose a broker, they aren't going to do a lot to help you in your success. The #1 reason to choose a broker, and the question to ask is, "What do you offer your new agents." If the answer is, "The most competitive split in town" you should definitely keep looking. Remember, 100% of $0 is still $0. If you're leaning towards the largest broker in town, who has a great reputation, remember this: You're starting a BUSINESS not a JOB. While it might be fantastic to brag to your friends about landing a job at a prestigious company, it's no accomplishment to hang your license on the same wall in the same office as other successful agents.

Your #1 concern when interviewing new Brokers is what they offer you as a new agent. Do they have incoming leads? What does their training program consist of? What's their retention level? What's their average sales price? Do they encourage their agents to promote themselves? A Broker's purpose is to help new agents start successful careers and to help established Agents progress their careers to the next level. As a new agent, concern yourself less with commission split or agency name and more with specific programs and agency standards.

A new career in Real Estate is very exciting. Starting a Real Estate business provides the new Agent with opportunities for limitless potential and freedom. New Agents have a notoriously high failure rate, however, so a new Real Estate career can also be a very scary prospect. However, if you avoid the 7 Top Mistakes Rookie Real Estate Agents Make, then you'll be far ahead of the competition!

 


Real Estate Agents In My Area California

Houses For Sale Near Me Santa Clarita

Houses For Sale Near Me Santa Clarita