Information Regarding Real Estate

Becoming a millionaire is not easy but it’s doable in real estates. When people say real estate investment is hard, I concur with them. However, I told myself that if these people will learn the ins and outs of the industry by heart, I think that they will consider real estate investment as the best option available today. 

You don’t need to be a hardcore investor in real estates. The most basic thing to do is the buy-and-hold strategy for the type of property that you are capable of buying with as little down payment as possible. In general, lenders will require you to pay 20% of the purchase price upfront.  If you don’t have the money yet, you can pay a down payment as low as 3%. Doing so will require you to get a private mortgage insurance which will make you pay more money in the long run. However, for now, buying a house for only 3% down payment is doable in your situation. 

Another way to buy a house is through the all-money-down technique. This is how it works. If you bought a house for $100,000, you need to pay 20% of its total price which is $20,000. Then you need to pay $3,000 for the closing costs, which make your total acquisition cost to $23,000. With all-money-down technique, you will pay the entire price of the house which is $100,000 plus the closing cost of $3,000 which makes the acquisition price to $103,000.  

Supposing you make a renovation for a total cost of $5,000, you now invested $108,000 into your property. Then, you can have the house rented out in which you get an income every month. In this case, you can go to the bank and get the property appraised with the intention of doing a cash-out refinance. 

When the bank sees the renovation and you are using the house to get an income, your property’s value can be as much as $114,000. If you will apply to refinance your house, the lender can give you 80% mortgage on the $114 appraised value which gives you a mortgage of $91,200.  Since you originally put $103,000 and you received a refinance mortgage of $91,200, you get back $11,800 of your money. 

One secret of getting rich in real estates is to use the profit that you receive from your first investment to buy another one, then another one. By doing this, you have 2-3 sources of passive cash flow every month. If you will continue buying a new property from the income you receive, you will end up having thousands of dollars earning every month. 

Checklist for Buying a House

Searching for the perfect house is like traversing the jungle without a compass if you don’t have a clear idea of what you’re looking for in a property. For starters, a house should be able to fill your needs now and in the near future. To guide you in looking the ideal house for you, here’s the checklist you can follow when buying a house. 

Work with an agent 

Hiring a Real Estate Agent to help you with the buying process is a brilliant move. You get professional advice on the complicated process of buying a house. You also get to leverage his professional network which can help you find the best deals.  

Search for properties you’re looking to buy 

Look for the properties you can imagine yourself living in. Include your family if you’re planning to have kids or already have kids. Take note of the houses that pique your interests because you’re attracted to its location, features, and amenities. 

Get Pre-Qualified 

This is a free and no-commitment process you can work out with your local banks or lenders. You’ll get a picture how creditworthy you are and the price range of the houses you can really afford. It will also give you an idea of how long you’re going to have to pay for your house purchase. 

Shortlist the properties you can afford 

After getting pre-qualified, it’s time to update your list of choices. Crash out those you can’t afford and narrow down your list for those within your budget range. Rank them according to your preferences and this will serve as your guide as you move on to the succeeding steps.    

Get Pre-Approved  

This is the time where you’ll apply for a home loan. The lender will get the house you want to buy appraised, so they’ll know if it’s worth the amount you’re taking out a loan for and check for every other important detail like the Title. This is also the time you’ll know the actual specifics of your loan. You’ll know how much you need to come up with every month and for how long. Gaining pre-approval from a lending institution ensures the seller that you can pay for the property they’re selling.  

Hire a home inspector 

Hiring the services of an independent home inspector will let you know the current state of the house you’re interested in. An unbiased report will help you decide if the house is worth the risk.   

Home viewings  

It’s now time to view the house yourself and decide for yourself if you’re going to buy the house or consider another property to buy and repeat the process. Once you’ve decided this is the house you want, it’s time to make an offer. Work with your Real Estate Agent during the negotiation process. 


This is the time where ownership of the property changes hands. You will sign all the necessary documents, make the payment, and the seller hands over the keys to your new house. 

How to Create a Spot On Real Estate Marketing

The real estate industry is a very competitive jungle. If you are clueless about what’s going on, you make yourself vulnerable to be devoured by hungry predators. You need to make initiatives not just to survive but to excel as a real estate agent. You need to show skills in detecting an opportunity to market your listings, whether online or offline. Here are some effective ways to create a spot in real estate marketing: 

  1. Set-up social media accounts

Many studies show that many buyers are searching for homes online. Leading social media platforms can be used as a free marketing tool. You can post pictures and videos of your listing and communicate with interested buyers. It is advisable that you create a professional profile different from your personal account. You need to create an image showing your followers that you are an authority when it comes to homes for sale napa. 

  1. Link your website to social media pages

After creating social media pages, you can post a link to your website. It is one way to redirect your followers to your own web page. Your website can contain other important information that is too big for your social media pages to share. Your website must have a complete listing, a description of each property which includes the location, size and asking price, and professional photos and videos. If you are a good writer, posting blogs related to real estate can also be very helpful.  

  1. Know what works for your competitors

Act like a detective and find out what your competitors are doing right. How do they market their listings? How good their websites and social media account? What parties do they attend? What is inside their briefcases? What are they doing wrong? How can you avoid their mistakes? Knowing your answers to these questions will give you ideas on how to be more efficient with your job. 

  1. Makeyourself easy to contact. 

Make people aware how they can reach you. You can put your mobile number and email on your social media profile page.  Put your contact information in a very conspicuous part of your webpage. Or, create a “Contact Us” page on your website. 

  1. Always take an impressive business card with you

A good looking business card can impress your acquaintances. Always carry a killer business card in your wallet. 



Home Buying Secrets You Should Know

Deciding to buy a home is owning a piece of the American Dream. A home is a big ticket item that needs you to set your finances in order. You must also be willing to commit your finances for the long term especially if you’re planning to take on a 30-year mortgage for your home purchase. Getting prequalified is just the first step in letting you see the overall picture and helps narrow down your choices for homes within your budget. After prequalification, you now have a clearer picture of the homes you can afford. 

Before you go hunting for that perfect home, here are home buying secrets you should know. 

Know the crime statistics in the area where your dream home is located 

A home is where you’ll live in for years. If you’re married and have kids, it’s where they will spend their growing up years. You’ll have peace of mind when you know that you live in a peaceful, quiet and secure community. You’ll feel great knowing that you’ve made one of the best decisions you’ll ever make in your life. 

Get acquainted with the location 

Know where the nearest hospitals, supermarkets, schools, parks, or museums are located. Get a picture of how much time it will take you to get to the office or send your kids to school and which roads or highways to take to get there.  

Visit the location at different times 

It’s great to know what mornings, mid-afternoon, or early evenings are like in the neighborhood. By seeing it for yourself and knowing what it’s like to actually live there, you’ll know if it’s the right environment for you or not. Remember that once you’ve made the decision to purchase the house, there is literally no turning back or you’ll end up losing a lot of money.  

Get expert advise 

Paying a professional to perform a home inspection and another one for appraisal lets you know if you’re getting your money’s worth before going through with your purchase. A professional home inspector will tell you if the house is safe for you and your family to live in while getting the house appraised by a professional, lets you know if the price is set just right. If not, it gives you a chance to negotiate a lower price.  

Keep extra money in hand 

This will enable you to cover the closing costs and any other unforeseen circumstances without having to take on additional debt. Saving at least 3 to 6 months’ worth of your monthly salary should be enough to help you get by. 

Once everything is in order and you have found the home you love, it’s time to apply and get pre-approved for a home loan to finalize your purchase.     

Which real estate investment is suitable for you?


Investing in real estate is no doubt one of the prolific ideas of bagging higher amounts. Proceeding with needful knowledge about the sector, one can enjoy something significant as output. No doubt the commercial sectors have been more intriguing for the investors regarding return.

However, looking at the demands, all it can be said is that the residential sectors can also be promising once the strategies are up to the mark. In short, it’s the strategies those matter always. On this context, here we present the parameters considering which you can ultimately come up with a desirable outcome.

If finance is concern:

If the finance is a concern for you, then going with the residential projects is something recommended over the commercial ones. The reason is apparent; banks offer higher leeway about financial matters in the case of residential projects than the commercial ones. It can be prolific for you regarding interest rates as well.

Can you afford the time as well?

If arranging finance is not the big clause for you, then commercial investments are always better delivering options. All you need to ensure is that you can afford time as these projects are often time taking. In concurrence, convincing the buyers for initial payments is also challenging.

Well, powered by the experiences of the professionals employed, one can overcome these issues to enjoy a hefty outcome. Residential projects or investments can also offer you flexibilities in terms of tax payments than the commercial projects.

 Eyeing the rents:

If you are up for the real estate industry keeping eyes on the rental returns, then the commercial projects are the better recommendations for you. The best part is that the rental income, in this case, is quite consistent in comparison with the residential projects. In case of the commercial real estate, the rental return can be up to 12%, which is about 3-4% higher in comparison with those like the residential projects. The reason is quite apparent; the chance of the commercial projects being occupied is quite higher in comparison with the residential projects.

Can you afford maintenance?

Any property or project demands maintenance. If there is no adequate manpower available with you on this regard, or if you don’t want to employ manpower for the maintenance purposes, then commercial projects are better options than the residential ones. In the case of the commercial projects, the buyers take the responsibility of maintenance. Whereas, you have to handle the maintenance part yourself in case of the residential projects.

Other reasons: Reselling or loan

Among the other reasons, people show interest about the real estate projects eyeing the return post selling or grabbing loans against it. If selling immediate is your concern, then the commercial projects are the best picks.

These get sold quicker than the residential ones. Well, if the loan for a property is your concern, then the residential projects are recommended keeping the ease of getting a loan in eye. The process is quite gruelling in comparison for the commercial projects on the other hand.



So you think you have the budget; these covet prices might make you think twice


Congratulations if you are up for buying a home; it’s like a dream for many. You are up for buying a home as you are sure about the budget tag that it carries. Well, things are certainly not as straight as you presume. To avoid any inconvenience ahead, especially in concern with the budget, you should know it well that there often remain certain covet prices for the properties. Here we present some crucial information in this regard. Check it out!

Deposit amounts, mortgage costs:

While talking about the hidden amounts, we are certainly not pointing at any illegal amounts, frauds, etc.; these are different things. Rather, the associated costs we are talking about are much bigger than anticipated.

The best idea would be to sit and make proper evaluation of the costs involved. Irrespective of the cost of the property (by your locality), you need to add at least five percent mortgage cost. Everyone knows about the deposit amounts. Often it costs ten percent of the property worth as the deposit amount. In concurrence, there remains the charge for the agents if any.

Legal costs:

We haven’t talked about the legal costs yet. You need to be stay prepared for an amount of three thousand dollars legal fees for a property that is worth five hundred thousand dollars. There remains the charge for stamp works those vary from one part to the other over the globe.

Property assessment costs:

If you are buying a property in a prominent city, then you can’t afford missing any single legal affairs. Property assessment is one such step that no one loves but has to go through. It’s not going to cost you free; you must be prepared for an expense of about four hundred dollars, for a property worth five hundred thousand dollars.

Bank application price:

Taking the help of banks is pretty obvious when it comes about huge investments like buying properties. On this regard, it is here to mention that this is going to add about five hundred dollars extra as loan application cost. Anyway, there are certain banks those might exempt the amount. But, it’s quite rare; for extremely big amounts. Hence, you should always stay prepared for this amount as well. Rather, there are certain banks those add the valuation cost. Also, you should be ready for the lender mortgage insurance amount, which is for lending you the property.

To avoid any inconvenience:

To stay assured from any complaints against the name of your property, the insurance is going to cost you about four hundred dollars. In a contemporary scenario, to avoid any later controversies, the insurances as of such are unavoidable. Apart from this, those like water and land costs also often have to be beard by the property owner. These costs normally vary about five hundred to six hundred dollars.

So, is the property worth buying for you post going through the above, additional costs? Make it sure.