Archive for December 2011
Hiring The Perfect Real Estate Agent
Does the real estate agent have enough knowledge of what they should do? In most professions, when applying for employment, the initial part of this course of action is to give a potential employer a curriculum vitae, character references, and previous achievements. Eventually, this is the preliminary spot in the hiring procedure in the American job market. Curriculum vitae points out the skills, edification, and personal conditions of the aspirant prior to the consideration for getting hired. Most are employed by recommendations from other credible personalities due to the fact that businesses and companies favor to have colleagues that they deeply know rather than a person with no connection at all. Yet the aspirant mainly should have several previous capacities in a related turf.
Another question is what the employing procedure the owner or buyer has gone through in shaping up the competitiveness of his Real Estate Agent. Were the aspirants referred to the seller or buyer, or did the owner or buyer employ the representative out from an ad in a billboard or a newspaper? Does the employer surely discern the personal conditions or skills of the aspirant that he has consigned in dealing with most probably the biggest economic choice in his life?
To cite an example, when a person is having a major surgical operation, which clearly indicates that it is a life and death situation, does that person have a medical practitioner or a newbie who has done the kind of operation just once or twice? Does the person leave it to chance? Or does he have the skillful and veteran physician with years of experience to execute the medical procedure?
The safe thing to do is to interview the agent, like how a patient questions his doctor about his medical condition. The owner or buyer should not think that he should know more than the experienced and veteran Real Estate Agent. One should inquire – that is the key.
Another important factor is the realtor’s personality and level of patience. Because a buyer is making a very important decision and because buying real estate entails a lot of money, the realtor should be patient, should know how to handle various situations, various attitudes and should also have a pleasing personality. Nobody wants to work with an annoying realtor, that’s for sure!
Like practiced physicians, Real Estate Agents do their part everyday especially as an owner may sell a house once every three years on standard. One must listen to their pieces of advice because they have no reason not to tell the truth. Generally, employing the perfect well-versed real estate agent will reliably accomplish the preferred result the owner or buyer is looking for.
Commercial Real Estate – Learn To Profit from The Two-Step Purchase Offer Process
A commercial real estate purchase offer requires a two step process that includes a Letter of Intent followed by a Purchase and Sale Agreement. The importance of this two step process should not be underestimated because the non-binding Letter of Intent is quick, efficient and lays the foundation, for the lengthy legally binding Purchase and Sale Agreement.
The Letter of Intent begins your offer and is a concise, straightforward document that should be easy to understand and contains specific information spelling out the basic terms of the agreement you want the seller to read without feeling the urge to involve legal counsel. Your terms and conditions outlined in the Letter of Intent will begin structuring the Purchase and Sale Agreement for the commercial real estate under consideration.
The Letter of Intent is a combination of a cover letter with specific elements referencing documents you request for information. One particular part of the letter of intent you want to establish is your validity as an investor with an offer worth considering and your intention to purchase the property described. Only a fully executed purchase and sale agreement legally binds the parties to the deal.
The structure of a successful Letter of Intent will include but not be limited to the following:
Property description: a brief, accurate description of the property naming the number of units, bedrooms and baths, including the name of the apartment complex as described in the listing or information you received.
Purchase price: determined through an evaluation process that considers required rate of return, comparable market price and net operating income in relation to the price.
Earnest money deposits: amount applicable to the purchase price required and time frame needed to deposit it.
Date: establishes the response time by the seller of accepting or rejecting your offer.
Title and Title Insurance: relates to presenting documentation of clear title to the property
Due diligence: an attached exhibit outlining specific items for review required from the seller
Conditions of the offer: these include various items related to closing, costs, extensions, financing, property review, defaults, etc.
A well presented Letter of Intent sets the parameters for the negotiation and can position you for a successful Purchase and Sale Agreement.
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Real Estate Niche Marketing – Starting an Assisted Living Home
You can try to be an expert in many phases of real estate, or you can specialize in a niche markets and become the authority in that markets.
There are a number of very successful real estate agents and brokers that have narrowed their real estate marketing niche focus to a specific geographical area, a type of property or a category of consumer. Recognizing the opportunities that are out there and selecting a niche that appeals to you can be a lucrative strategy.
Consider the niche market of opening Assisted Living Homes. It is a common assumption that it take millions of dollars to successfully open and operate an Assisted Living Facility, and while this may be true for a large facility, there is a huge niche market being ignored. Tens of millions of baby boomers are approaching retirement age. Many of them will need medical or personal care. A growing majority of these seniors do not want to spend the rest of their lives in a nursing home. They want to be in an environment that seems like home, with caregivers who seem like family. So where do they turn to?
These homes are often called Board and Care homes or Assisted Living Homes. They generally have no more than twenty residents and in most cases less than ten residents at any given time. The big difference between an Assisted Living Home and an Assisted Living Facility is level of care. Typically the business model of an Assisted Living Facility does not allow a significant amount of one on one time with each resident. What this means is that when a resident needs more than minimal assistance with daily needs or if they need two people to assist in providing those daily needs, the resident will generally be moved to either a different unit in that facility or the family will need to move their loved one to a different setting.
An Assisted Living Home (or a Board & Care Home) has the ability to be very flexible with the residents they choose to do business with. More often than not, once residents move into an Assisted Living Home they will be allowed to live out the rest of their lives in these familiar surroundings.
How can you get involved in this niche? To start with you are going to have to view yourself as a problem solver. You will need to:
Educate yourself on the rules as they pertain to your City, County and State. Be aware that just like with building or zoning codes each city may be a little different than the other. Have a general knowledge of the typical rates residents pay. Have a general idea of the typical expenses associated with operating an Assisted Living home Establish a network with those who provide services in this industry.
Many smaller homes operate very successfully in both the private pay and Medicare arenas.
Think of the home in your current inventory, do you have any four or five bedroom homes? Do you have Seller’s who can be creative? Do you have several homes close to each other? All of these could be great candidates for starting an Assisted Living Home.
Who are you Buyers? Your Buyer could be the Caregiver who wants to rent a few rooms and be able to work from home. Your Buyer could be the Doctor or Investor that wants several homes that they manage but may or may not work directly in the home.
Do you have buyers that are facing foreclosure or even bankruptcy because of their mortgages? Would they be willing to do a lease purchase? By leasing to someone who is starting an Assisted Living Home, you can feel much more confident that they will fulfill their obligations and not leave you or your Client in a bad situation.
I urge you to take the time to study this niche. Find the information you need to be the problem solver for your Clients, who knows you may even wind up owning a few yourselves!