My husband and I want to get into property management. I’ve studied real estate in the past and was curious to know if you have to have a real estate license in order to be a property manager?

Popularity: 1% [?]

Hello, I live in Boston, MA and a friend is selling me a real estate property in Honduras.
The seller says that we don’t need to travel to honduras in order to close the deal.
What is the process and what should I know when purchasing real estate over seas, what is the best way to protect my self, do I need a lawyer?

Popularity: 1% [?]

How many real estate signs can be posted on one property? I have been directed in many directions that have led me down a dead end. The Dept of State told me to call the Association of Realtors. The Association of Realtors said that they would call me back (but have not). The Dept of Transportation does not get back. I have three real estate signs next to me. One sign obstructs my view to get out of my driveway. I have asked to have this moved and they move it a foot left to right but not out of my view. I have 0% visibility here and need the sign moved to removed. The later is preferable, because I think that three signs is excessive for this house (which is spectacular I might ad). The multiple signs cheapen it. What are my options here? I am looking at an accident in my near future.

Popularity: 1% [?]

I’m selling a house and I have conflicting information on what the real estate commission should be. It varies from 4-6% depending on who you ask.

Popularity: 1% [?]

Have you tried your luck at foreign exchange, bonds and stocks, but to no avail? Are you perplexed as to what to put your money on? Consider real estate investment, as several people have turned into millionaires through shrewd investments in real estate. By means of this article, we will elaborate four common real estate investing tips, which would help you realize significant profits via property investment. Be it a newbie or a seasoned investor, these tips are sure to be of help to one and all alike.

Real estate investing tip #1 – Perhaps the most lucrative investment technique is to buy a run down property, fix it up, and then sell at a significant profit. Since the property is shabby, you might be able to acquire it for a low price. However, you must ensure that the cost incurred in the repair is restricted to a minimum so as to guarantee a profit. You can do this by making sure that the basic amenities are in place, without going overboard with the renovation. Such a buy-fix-sell scenario demands excellent property valuation skills and a rather frugal attitude while renovating.

Real estate investing tip #2 – Purchase properties that are about to face a foreclosure. A property typically faces foreclosure when the homeowner is financially distressed and is unable to repay the loan. Another common reason for foreclosures is dissolution of marriage with the abandonment of the house by either of the couple. Such a distressed property can be bagged for a low price by an articulate investor, who can convince the homeowner to sell the property prior to the foreclosure sale. Then the investor may sell the newly bought property at a significant gain.

Real estate investing tip #3 – Locality is a paramount aspect in real estate investment. Two similarly built houses may have varying valuations if they are situated in different locations. So, you must be abreast of the hot locations in your concerned region. If you are just about to start you real estate venture, I suggest you look for places that offer high rentals. Purchasing a property in such a region would result in a healthy monthly source of income.

Real estate investing tip #4 – Ever heard of Warren Buffett? The acclaimed stock investor made billions through a contrarian’s approach to stock investment. You may take a contrarian’s view to real estate investment as well. For instance, you may buy a property when it is out of favor with the majority of investors. That is, acting in opposition to the majority opinion. A contrarian’s approach is not a sure shot path to real estate success. Moreover, it’s complicated and therefore beginners are advised against it.

All in all, there are several avenues that you could realize profit in real estate. However, it is imperative that you be prepared to put in extra work hours, especially at the beginning of your real estate career. Putting your shoulder to the wheel is what’s required to make substantial profits in real estate.

Copyright © 2006 Joel Teo. All rights reserved.

Popularity: 7% [?]

I wanted a simple program that we could use to quickly calculate how much we can pay for a property. I’m so amazed at how fast you can make an offer when using this program! We make our first offer before we get off the phone and make our offers with 100% confidence.

Simply enter the after repaired value (ARV) because you’ve already preset the other costs. Then enter the amount of repairs and it calculates your offer automatically! You can even list how much you want to make!

Let’s take a look at a deal.

If they tell me the ARV is $100k. I’m calculating $100k times .7 and that’s $70k.

Then I deduct hard money closing cost, which averages four points or $2,800. That reduces it to $67,200 and based on past experience the taxes, insurance and attorney fees for this will be $2,250. Now it’s $64,950.

I’m told it needs $15k in work, so I reduce it by $15k. That leaves $49,950. Now I subtract my desired profit. If I want to make $5k, I cannot pay anymore than $44,950, so I offer $38,780. Always use an odd number because it lets the Seller know that I’ve done my homework. If I just say $38k, they think I’m just throwing a number out.

We buy 10-15 monthly and never look at them. I don’t recommend doing this starting out; but once you do it for a while you can too. Once you get my system setup and implemented, you can go into any market, in any city, anywhere in the country and buy and sell property.

That’s exactly what we do. We set up new markets every month in areas we’ve never been before. In fact we just completed a transaction in Cleveland, OH. We had it sold before we closed. We bought and sold it the same day and made $8k.

When buying in my market, I need to be in it at no more than 70% including purchase, rehab and closing costs. That’s if I’m rehabbing it. However, if I’m buying a property that’s an ‘Instant Landlord’ property, meaning that someone else has already bought it, fixed it up and is re-selling it or if it’s a property that’s already in good shape; I can pay up to 80% depending on the cash flow. I wouldn’t recommend paying more than 80%-85% on a property. I also don’t recommend financing more than 80%-85%. You want to leave a little room in the event you need to sell quickly.

That way you’ll always be able to sell that property. Remember your area may be different. You’ll have to ask other investors in your area and do some research to find out what the market will bear. If the property needs no repairs, you won’t need a rehab loan. You can probably get a traditional loan up to 100% depending on what you can qualify for and that way you’ll be in the house for no money down.

However, if your goal is to buy, fix up, re-finance and rent out, in most markets you will need to buy them at no more than 70%. Fix it up, re-finance it at 75%-85% loan to value, and pull out the cash, which is TAX FREE cash, as you don’t pay tax on borrowed money. Then you can rent the property out at a positive cash flow and have Tax Free cash in your pocket.

Popularity: 1% [?]

Understanding Land Titles:
True title deeds, “Chanot ti din”, are only to be found in the most and longest developed parts of the Thailand, and of course in Bangkok. Chanot titles, issued by the Provincial office of the Thai Land Department, are accurately surveyed, plotted in relation to a national survey grid and also marked by unique numbered marker posts set in the ground.
Most “titles” in rural Thailand are however of the Nor. Sor. Sam or Nor Sor. Sam Kor. (N.S.3.) variety and are in the strictest interpretation “land exploration testimonial deeds”. They are to all practical purposes land title deeds (issued and maintained by the Amphoer, the District land office) in as much as clear records of ownership are maintained, and that they may be sold, leased, used as mortgage collateral etc.
In the case of the Nor. Sor. Sam. but not the more recently issued Nor. Sor. Sam. Kor. there is however a requirement that 30 days public notice is necessary before any change of status over the land can be registered.
N.S.3. titles are in general less accurately surveyed than Chanot titles. In the case of the older (now increasingly rare N.S.3.) titles the boundaries are only recorded in relation to the neighboring plots and survey errors in length of boundary or area are not unusual.
The newer Nor. Sor. Sam. Kor. is in general much more accurately surveyed and each plot is cross referenced to a master survey of the area and a corresponding aerial photograph. For this reason whenever purchasing N.S.3. land which lacks clearly defined physical boundaries it is a wise precaution to ask the owner to stake out the boundaries and then ask neighboring land owners to confirm the vendors interpretation of the boundary.
The Chanot and the Nor. Sor. Sam. Kor. are the only titles over which register able right of ownership or lease can exist, and are as such the only ones that a prudent foreigner should consider.  
Below the Chanot and N.S.3. title there are a host of other forms of land claim document such as the Sor. Kor. Nueng (S.K.1)., the Tor. Bor. Tor. Hoc. (T.B.T.6) and the Tor. Bor. Tor. Ha.(T.B.T.5.)

. These rights are essentially a form of squatter or settler’s claim which has been filed with the district office and upon which a small fee has been paid. Unlike the Chanot and N.S.3.. it is neither possible to register a sale or lease over these land rights, nor will a bank accept them for collateral and most importantly one cannot apply for (or obtain approval to) build on such land.
In certain circumstances, based on the length of the claim and the use to which the land has been put, it is possible to upgrade these land claims (to N.S.3. or Chanot title). The steps involved in such an application and the number of government departments required to approve such an application (where such approval is often discretionary) is however quite daunting and most definitely not recommended to anyone without the best of connections at the district, provincial and (in many cases) national level.
The newer Sor. Bor Kor. titles are very different to the above claims. These are true title deeds, accurately surveyed and pegged (like a Chanot). They may be mortgaged, planning permission for development may be sought and granted. The one significant thing that may not happen with a Sor. Bor Kor, is that it may not be sold or transferred (except under last will and testament). Many expect that this limitation will change in time or that the titles can be quickly upgraded to a full Chanot. This is not a universal interpretation of the intention of the new titles and it may be unlikely that any upgrading will granted in the near future.

Courtesey : www.allphuketrealestate.com

Popularity: 1% [?]

There are four main taxes involved in any property sale and purchase transaction These taxes are:

* The transfer fee which is payable to Land Registry Office

* The capital gains tax which is payable to the Tax Office

* The VAT (KDV) which is payable to the Tax Office or to the vendor

* The Stamp Duty which is payable to the Tax Office

Different taxes apply to gifts of property for no consideration and transfers of property between family members.

As a general rule, capital gains tax is payable by the vendor and the transfer fee and Stamp Duty is payable by the purchaser, although this can always be varied by the parties by an express clause in the Contract of Sale.

The payment of VAT depends on two factors:

* Whether or not the transaction is subject to VAT. This depends on whether the vendor is deemed by the Tax Office to be a “professional vendor” (i.e. whether the transaction is of a commercial nature or for profit). If the vendor is deemed to be a professional vendor, the transaction will be subject to VAT. If the vendor is a private individual, the transaction will not be subject to VAT.

* Terms of the Contract of Sale. If the transaction is subject to VAT, who will actually pay the VAT depends on the terms of the Contract of Sale i.e. whether or not the sale price is stated to be inclusive or exclusive of VAT.

Taxes are generally paid on transfer of title. The percentages listed below are calculated as follows: the Transfer Fee is generally paid as a percentage of the assessed value of the property which is carried out just before transfer of title takes place. The Land Registry assesses the property in the state it is in at the date of the assessment i.e. if there is a new construction on the property, this will be included in the assessment of the value of the property. The VAT, Capital Gains and the Stamp Duty are based on either the assessed value or the contract value, whichever is the highest. Under new regulations, the Tax Office now requires a copy of the contract of sale to be presented to it prior to transfer of title.

The percentages levied for each of the three types of tax are shown below:

* TRANSFER FEE – The transfer fee is 6%. However, every person has a once in a lifetime option to reduce this to 3%. If a purchaser elects to use this option on the purchase, he or she will only pay 3%. Once this option right has been used, the transfer fee payable on all future purchases by that person will be 6%.

* VAT FOR PROPERTY TRANSACTIONS – 5% of either the assessed value or the sale price. Please note that some vendors require the VAT to be paid on the actual sale value of the property as stated in the Contract of Sale on the date that possession of the property is delivered to the purchaser. You should check the terms of your contract of sale on this point.

* CAPITAL GAINS TAX – As stated above, this is usally paid by the Vendor. The amount payable depends on whether the vendor is a professional vendor a private individual as defined under VAT above. If the vendor is a professional vendor, the rate will be 6.25%. Otherwise, the rate will be 3.5%

* STAMP DUTY – This is 0.5% of the contract price provided this is paid within 1 month of the date of the contract. If it is not paid within this time, the rate increases in stages until after 6 months it becomes 1.5%.

FREQUENTLY ASKED QUESTIONS

Vat For Property Transactions

Will I have to pay VAT on my property purchase?

In determining whether you will be liable to pay VAT on your property purchase, you need to establish the following:

* Whether the vendor is a professional vendor as defined above.

* Whether your contract requires you to pay the VAT.

Where the contract does not expressly mention VAT, it is our opinion that the purchase price shall be deemed to be inclusive of VAT.

CAPITAL GAINS TAX

Will I have to pay Capital Gains Tax on my purchase?

Generally, no. Capital Gains Tax is usually paid by the Vendor, unless otherwise stipulated in your contract.

Will I have to pay Capital Gains Tax on the sale of my property? If so, how much will this be?

This depends on whether you are a private individual or a professional vendor (as defined above):

Every private individual has a once in a lifetime tax free sale option (for a house and land not exceeding approximately 1 donum). If you use this use this option, you will not be liable to Capital Gains Tax on that sale. On all subsequent sales, Capital Gains Tax will be payable at 3.5%, provided you do not sell more than 3 properties in one year, making you a professional vendor.

For professional vendors, there are no tax exemption rights. Capital Gains Tax is payable on every sale at a rate of 6.25%.

What if I sell my property before taking title? Will I still have to pay Capital Gains Tax?

Capital Gains Tax is not payable if you sell the property before taking title by doing an assignment of contract.

Popularity: 1% [?]

1. Contacting Companies Directly
Depending on your requirements, it may be advisable to contact real estate companies directly. Although realtors advertise their properties and listings in the newspaper or on the website, when they have exclusive properties for sale, they would like to deal with genuine buyers, otherwise they feel that they will be wasting time if people only want to browse around and view properties without the slightest intention of buying. This is the reason that realtors do not advertise widely to the public at large. Some Companies only deal with commercial and industrial real estate. This requires a realtor who specializes in commercial properties and all the legalities involved.

2. Viewing Properties on the Internet
Right now, the Internet is a great way to view properties around the globe. At the click of the mouse, you can view any property even 10,000 miles away, whether it is in India or Australia. There are photographs of properties with detailed views of all the interiors – you can view each and every room, taking into account all the woodwork, granite or marble floors and counters, fabulous kitchens, bedrooms, family rooms and working areas.
The Internet is accessible to everyone and saves both time and money. Agents can be contacted and each and every detail can be discussed and only in the final stages will you need to make personal contact. All the legal issues and other property hassles will be taken over by an experienced realtor, so that you can be assured of a hassle-free deal.

HUD which stands for Housing and Urban Development, is a scheme where homes are organized by the Government for middle and lower income groups who need to qualify for them. The Government does not loan money directly or keep properties, but they are in touch with property managers who will take care of all loans and properties.
The HUD scheme is extremely important for those who cannot afford the higher end properties and would still like to avail of a real estate property. The Government organized scheme helps many lower income groups to avail of this opportunity of owning their own home. Every State has listings, and each county and city advertise these listings, so that it is available to everyone who needs it. Although the Government does not arrange loans or show these properties, they guide people to the right property managers who will show people the properties and arrange loans for them, which is a great help to those in need of this scheme.

Popularity: 4% [?]

In today’s sluggish market the answer is YES! If we were enjoying a robust market the answer may be different from the perspective of marketing but never from the point of security throughout the transaction. You want to be sure that you are protected and you are with a licensed agent as they are covered in PEI by Errors & Omissions insurance. You want to make sure that you have an expert negotiator on your side ensuring that you get the best price. Not all licensed realtors are expert negotiators, but if you choose a top listing realtor you are on the right track.

So how do you know if the realtor that you are planning to use is a top realtor? This is really a 2 part question. Top realtor can mean the agent with the greatest number of listings and sales. Top realtor could also mean the agent who does all the things that a realtor should do to give your property the best chance of exposure to the maximum number of potential buyers.

But you say, “wouldn’t that be the same thing, as if the realtor does all the steps wouldn’t they also be top in the realtor numbers”, most sales and listings. In PEI not necessarily as some agents are in their first year and that doesn’t make them less of a realtor, just that they haven’t had the chance to build the numbers yet. Many new realtors go about their business with care and attention, they are the top realtors of the future, but they can market your property effectively now. So what makes a good agent?

Have a look at your prospective agent’s listings on the MLS site realtor.ca. If you see listings without pictures or with poor pictures this is an agent that you don’t want. The least an agent can do is make sure that there are good photos on MLS and additionally make sure that they fill in all germane information as well. If they don’t they are showing that they are lazy.

Check their listings and see that they have placed signage on the properties. If one listing doesn’t have a sign this may be at the request of the owner, but more than that, or in the winter signs that are allowed to blow over or away, and you are dealing with a realtor that does not place their clients first. Signs should also have a cell number and a website displayed on them

Ask to see promotional materials that the agent has prepared or advertising that the agent has done for other vendors. Check the PEI real estate guide for their adverts and ask for and check both their office and personal real estate websites. If they don’t have their own website, be wary. In this day and age serious realtors have their own websites.

Check around the community to see if this realtor does regular open houses. These are important if your house is likely to be bought by local people.

When any agent makes a presentation to you prior to you listing with them watch out for inflated values. Some realtors will tell you your home is worth a lot more than the others have said. Generally they do this to get your listing and then they spend the next few weeks getting you to lower the price. Be realistic, if you listen to your gut you will know when you are being flannelled this way.

The final question a lot of people have when they consider the total amount of commission that they will pay for real estate services is how much the realtor gets. PEI real estate generally is sold on 5% commission. Very often the listing and selling realtors are different so they split the commission.. On a $100,000 home and a $5000 commission this means that each realtor is paid $2500. However since most brokerages take up to 50% of that, your realtor now has $1250. From that amount all marketing costs are deducted, so you can see that the $5000 is quickly reduced.

Full-service realtors really are worth the cost, after all this is your biggest investment, your home. Treat this transaction with the respect and gravity it deserves and have it handled by professionals.

Popularity: 1% [?]