Digg it UP - Real Estate

Calculating Returns on Condo Hotels
With Condo Hotel you are purchasing Real Estate, NOT Revenue.The SEC regulates/restricts any forward looking statements made by the condo hotel industry. It is important for you to do your own research. This is an attempt to help you begin this task, but this should be a starting point, not an end. Our concern is that our borrowers know clearly what they are buying, and can afford the monthly payments should there be NO rental income.Hassle-free rental income as an offset to ownership expense is the an advantage to condo hotel vs a traditional condo. If you must hire a management company for your traditional condo, and are limited to weekly rentals (which should generate less on a per night use than nightly rentals) your net rental income should be higher for a condo hotel, with less hassle on your part. Your time and money invested has a value that should be used in your determination of the val

st price for your property.

Does it matter which broker should you hire?
While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.

The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate,
Real Estate Brokerage Los Angeles
Finding a Real Estate Brokerage Firm in Los AngelesSelling your home can be a complicated task. If you are interested in selling your home or you intend to in the future, you have a number of options. Two of the most popular options include listing your home as a for sale by owner home or by listing your home through a real estate brokerage. Los Angeles has a large number of real estate brokerage firms. If you are interested in seeking professional assistance, you will have to find the firm that best fits your needs.Searching for a brokerage firm to do business with is a fairly easy process. Despite being an easy process, a little bit of time and research is required to find the perfect real estate brokerage. Los Angeles, as previously mentioned, has a large number of brokerage firms. This means that the chance of you finding the perfect brokerage firm is high.To familiarize yourself w
After owning your commercial property for several years, it’s time for you to sell the property. There are a few things you should know and consider before listing your property.

What Commission You Should Pay?
It’s often a percentage, typically from 3 to 6% of the list price. The commission is negotiable and dependent on various factors
1. Price: in general the higher the price, e.g. $10M, the lower the percentage.
2. How difficult it is to sell it. For example to sell a vacant building in a declining area, you should pay a higher commission.
As a seller, it is tempted to think your net proceed is more if you pay low commission. However, when you take away the commission, you take away a very strong and perhaps the only incentive from people who make a living selling your property to their investors. They may choose to sell other properties instead. Less competition may result in lower price for your property.

The commission is often split 50/50 among the listing office and the selling office. However, it’s not always the case. Some listing office feels it deserves 2/3 of the total commission because it has 2 people working as a team. The question to ask is “Does this commission split best serve your interest?” As a seller, you want to get the biggest bang for your buck. That means a fair split that will most likely bring the most number of offers to the table. So you should consider asking the listing broker to:
1. Split the commission 50/50 with the selling office.
2. Make the listing available to all brokers inside AND outside of the listing company at the same time. Some companies have the policy of keeping the listings in house for the first 30 days. This allows the office to sell the property to just their own clients and keep the all the commission. Once they cannot sell the property to their own clients, they make the listing available to all other offices. This action is in conflict with your interest and may even be unethical because the property does not have maximum exposure to all the potential buyers.
By doing so, you will be likely to get the most number of offers. As a result you will be likely to get the highest price for your property.

Some brokers specialize on “no commission to the buyer’s broker” listings. Sellers only pay commission to the listing office and buyers must pay commission to their agents. This may sound fair to you as a seller and you would think your net proceed would be higher because you don’t have to pay a commission to the buyer’s broker. However, this author is not ware of any studies showing the seller gets more money with this approach. The reality is different because:
1. You take away the most important incentive from the selling brokers: money. They may decide to sell other properties to their clients instead.
2. Even when sellers pay commission, mentally the buyers still think they are really the ones who pay the commission which is included in the purchase price. This is the reason some buyers prefer to buy “For Sale By Owner’s” or FSBOs.
3. Buyers must come up with more money to buy your property. They cannot get financing for the commission since it’s not included in the purchase price. This may discourage buyers from making offers.
4. Buyer’s broker may present an offer and state that the real price is the purchase price in the contract minus his commission.
As a result, you are less likely to get the maximum numbers of offers and consequently not the highest price for your property.

Does it matter which broker should you hire?
While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.
1. The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate,
  The Secret to More Winning Trades is as Simple as Avoiding This Common Mistake
  If you’re a normal human being, your need to feel good about yourself probably causes you to sell your winners too soon – and -- your need to avoid feelings of regret, causes you to hang on to your losers too long.At one time or another, we’re all guilty of letting our emotions dictate our investment decisions. But the only way to succeed in the market, is to keep greed, fear, pride and hope away from your trades.The most successful investors know exactly when they’re going to sell a stock, the moment they buy it. Often they use “trailing stops” which move along with the closing price of the stock. It’s a purely mechanical decision they make as an impartial observer – and never based on feelings or instincts.How many times has “fear of loss” caused you to sell a stock that brokeout the next day? Have you ever “fallen in love” with a stock – “hoping” it would breakout after an initial 10% pu
  nstead. Less competition may result in lower price for your property.
  
  The commission is often split 50/50 among the listing office and the selling office. However, it’s not always the case. Some listing office feels it deserves 2/3 of the total commission because it has 2 people working as a team. The question to ask is “Does this commission split best serve your interest?” As a seller, you want to get the biggest bang for your buck. That means a fair split that will most likely bring the most number of offers to the table. So you should consider asking the listing broker to:
  1. Split the commission 50/50 with the selling office.
  2. Make the listing available to all brokers inside AND outside of the listing company at the same time. Some companies have the policy of keeping the listings in house for the first 30 days. This allows the office to sell the property to just their own clients and keep the all the commission. Once they cannot sell the property to their own clients, they make the listing available to all other offices. This action is in conflict with your interest and may even be unethical because the property does not have maximum exposure to all the potential buyers.
  By doing so, you will be likely to get the most number of offers. As a result you will be likely to get the highest price for your property.
  
  Some brokers specialize on “no commission to the buyer’s broker” listings. Sellers only pay commission to the listing office and buyers must pay commission to their agents. This may sound fair to you as a seller and you would think your net proceed would be higher because you don’t have to pay a commission to the buyer’s broker. However, this author is not ware of any studies showing the seller gets more money with this approach. The reality is different because:
  1. You take away the most important incentive from the selling brokers: money. They may decide to sell other properties to their clients instead.
  2. Even when sellers pay commission, mentally the buyers still think they are really the ones who pay the commission which is included in the purchase price. This is the reason some buyers prefer to buy “For Sale By Owner’s” or FSBOs.
  3. Buyers must come up with more money to buy your property. They cannot get financing for the commission since it’s not included in the purchase price. This may discourage buyers from making offers.
  4. Buyer’s broker may present an offer and state that the real price is the purchase price in the contract minus his commission.
  As a result, you are less likely to get the maximum numbers of offers and consequently not the highest price for your property.
  
  Does it matter which broker should you hire?
  While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.
  1. The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate,
    7 Seconds to Sales Success
    We all work very hard on coming up with the benefits of our products or services, (Still, 95% of us do THAT wrong, but that’s for another article) but we rarely think about a personal benefit statement. Specifically, I am referring to what most people call their “elevator speech.” The elevator speech as it is called refers to that 5-7 second opportunity you have to introduce yourself when someone asks, “So Bob, what do you do?” Answer with, I sell widgets for XYZ Company,” and more than likely your conversation is either over or about to head in a different direction.Instead of responding with “I’m a financial planner,” (dull, boring) how about “I help people create and manage wealth!” Wow! Which of these do you think creates the most interest? Which one do you think might result in you getting a follow up question, which will allow you to go into more detail? Which one will cause the person you a
    rty to just their own clients and keep the all the commission. Once they cannot sell the property to their own clients, they make the listing available to all other offices. This action is in conflict with your interest and may even be unethical because the property does not have maximum exposure to all the potential buyers.
  By doing so, you will be likely to get the most number of offers. As a result you will be likely to get the highest price for your property.
  
  Some brokers specialize on “no commission to the buyer’s broker” listings. Sellers only pay commission to the listing office and buyers must pay commission to their agents. This may sound fair to you as a seller and you would think your net proceed would be higher because you don’t have to pay a commission to the buyer’s broker. However, this author is not ware of any studies showing the seller gets more money with this approach. The reality is different because:
  1. You take away the most important incentive from the selling brokers: money. They may decide to sell other properties to their clients instead.
  2. Even when sellers pay commission, mentally the buyers still think they are really the ones who pay the commission which is included in the purchase price. This is the reason some buyers prefer to buy “For Sale By Owner’s” or FSBOs.
  3. Buyers must come up with more money to buy your property. They cannot get financing for the commission since it’s not included in the purchase price. This may discourage buyers from making offers.
  4. Buyer’s broker may present an offer and state that the real price is the purchase price in the contract minus his commission.
  As a result, you are less likely to get the maximum numbers of offers and consequently not the highest price for your property.
  
  Does it matter which broker should you hire?
  While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.
  1. The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate,
    How to Earn Money Online With Resell Rights Products
    Making money online is very easy especially if you have an idea that many people would be interested in. Doing extensive research on a particular subject and providing an innovative take on a niche can earn lots of money.How?Well you could write an e-book, a digital form of a book, and sell it over the internet.But what about those that does not really have the particular talent or skill in writing an e-book nor has a new idea to market?Then you can market resell rights products.Resell rights products are either e-books or software that can be sold and re-sold.What happens is that you can buy a certain e-book or software from a seller and have the rights to sell it as well. What you can do is find a resell rights product that is adept to a certain niche and will have a great potential as a good sell.e money with this approach. The reality is different because:
    1. You take away the most important incentive from the selling brokers: money. They may decide to sell other properties to their clients instead.
    2. Even when sellers pay commission, mentally the buyers still think they are really the ones who pay the commission which is included in the purchase price. This is the reason some buyers prefer to buy “For Sale By Owner’s” or FSBOs.
    3. Buyers must come up with more money to buy your property. They cannot get financing for the commission since it’s not included in the purchase price. This may discourage buyers from making offers.
    4. Buyer’s broker may present an offer and state that the real price is the purchase price in the contract minus his commission.
    As a result, you are less likely to get the maximum numbers of offers and consequently not the highest price for your property.
    
    Does it matter which broker should you hire?
    While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.
    1. The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate,
      Florida Health Insurance Presents - Copay What Is It And Should I Have A Plan With It
      The amount that the policyholder pays on each claim is called Copay. Either a set amount like $10 for a MD visit or a percentage like 20%. The next question you might ask is - what if I have a $1,000,000 claim, do I have to pay $200,000. No, most policies have an "out of pocket maximum" of $2,000 to $5,000.In other words copay is the amount of money that you have to pay during a doctor visit. Usually your insurance company will pay 100% of the doctors fees above your deductible. However, any lab tests are not included in the cost of the visit and will be subject to your deductible and coinsurance rules.Another question you may ask is should I have a plan with it or not, the answer to this question varies from case to case. If you are required to have multiple visits to the doctors say 3 times a week due to a certain medical condition and if you have a copay of lets say $10 per visit. You are in th
      st price for your property.
      
      Does it matter which broker should you hire?
      While any licensed real estate agents can list your commercial property, you don’t get any benefits when you hire a residential specialist to do the job. Commercial and residential properties are 2 totally different products which require different marketing plans and selling process.
      
      The brochure: commercial properties normally have a brochure instead of a flyer as often used in residential properties. The brochure is given to potential buyers who may be out of the area, out of state or even out of the country. This brochure contains pricing, property pictures, site plan, satellite map, rent roll, income, expenses, demographic, and traffic volume information. Investors often look for information that they really care about such as Net Operating Income (NOI), cap rate, and lease term (gross or NNN). They often make offer based on the information in the brochure alone without even seeing the property personally (they inspect the property during due diligence period). Some of the information in the brochure may be confidential, e.g. rent roll, in which you may want the buyer to sign a confidentiality agreement first.
      
      Pricing: Most commercial properties are one of a kind and very unique in appearance, quality, location, lot size, number parking spaces, tenants list, etc. Many have no comparables like residential properties. So setting the right price is more complex and not as straight forward. Should it be priced based on net income, market value or construction cost? The property would not sell if priced too high. You lose potential profits when priced too low. So you want a commercial specialist to do this.
      
      Documentation: sellers are required per contract to provide various documents, e.g. survey and environment assessment report, not typical needed in a residential transaction but required by commercial lenders. Not providing all the required documents to the buyer in a timely manner may jeopardize the transaction.
      
      The offer process: In commercial real estate, the selling broker often presents a one-page Letter of Intent or LOI instead of a contract. This LOI states the key points: price, earnest money, due diligence period, financing terms, and closing date. Once the LOI is accepted, both parties will work on the contract. A commercial listing broker will not ask the buyer for a prequalification or pre-approval letter which is typical in residential transaction but not in commercial transaction. This is because the loan approval process for commercial property is so different such that lenders don’t issue a pre-approval letter.
      
      Escrow: it normally takes 21-30 days for due diligence or buyer to investigate the property and 60 days to close escrow when financing is involved. A commercial real estate broker won’t demand 30 days escrow like in a residential transaction because he knows it takes a long time for a commercial lender to approve the loan.
      
      Financing: in commercial real estate a higher percentage of transactions do not close because the buyer cannot get the loan. In a transaction that involves SFRs, if the buyer has 30% down payment then it’s almost certain that the loan will be approved. However 50% down payment is not even sufficient for many properties in California with cap rate of 5% or lower. Please refer to the article “What Investors Should Know about Commercial Loan” written by the same author. So a listing broker with experience about commercial financing will be able to advise the seller not to accept an offer with a remote chance of getting the loan approved
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