Basements (Consider Finishing Them):
After previewing various types of homes with buyers, I am amazed that some sellers didn’t get a chance to finish their basements prior to selling. I’ve seen plenty of magnificent homes on the market which did not have a finished basement & it sort of killed the deal for certain buyers.
I believe that finishing the basement is one of the best investments you can make, even if you have to break it up into phases in order to fit it into your budget. Sellers; if you have a great home that shows well, buyers will head down to the basement and display some disappointment when they find an unfinished basement. Also, there are buyers who won’t even look at your home if the listing says unfinished basement.
Don’t get me wrong, there are some buyers who may prefer to have an unfinished basement so they can have the ability to customize it the way they like it. However; sellers will have to price their homes to reflect the fact of not having a basement. I saw 3 comparable homes in the same neighborhood, 2 of them had an unfinished basement, & 1 of them did. They were all priced the same! Who do you think the winning seller would be?
Pets:
Listing agents, if your seller has pets such as a cat or a dog, you should advise them to put them up for scheduled showings. There are some buyers who may have allergies or simply don’t like the idea of having pets around them during showings. I love certain pets, but not everyone shares the same love; especially if they have had a bad experience associated with pets. I did a showing & this black cat jumped out of nowhere! The buyers did not like that at all.
3.5 bathrooms & only 1 tub??
Don’t be surprised if buyers want to see more than one tub; especially in 3.5 bathrooms. If it is a big family, they liked to have a tub for the kids and possibly a tub in the master suite. This hasn’t been necessarily a deal breaker; however it has been looked upon favorably particularly homes that are priced 190k and up.
"Rent That House in 2009" by Takara Taylor, AUDU Real Estate
As people are beginning to re-think their approach on how to be successful as an active participant in the real estate arena, it's sort of a no-brainer to discover the "Flip That House" error is slowly depleting during these economical times. That is my way of putting it mildly. Being here in Michigan, I feel it is depleting rather quickly, but there is always room for great positivity to take over by crafting a constructive niche during this transition in the market.
Now is the time to seriously think about establishing the old-fashion niche in the "Rental Market." It is time to start creating a "Rent that House" movement until we begin to see a bright light at the end of this tunnel. I know this concept may seem to be the least desirable for some people, especially to those who never really like the idea of being a Landlord, but instead of focusing on real estate as a short-term investment, let's look at it from a long-term stand point.
Buying and Holding a property is actually a great idea for those who are not looking to instantly obtain huge returns. When done properly, one should be able to purchase an investment property and receive cash flow on a monthly basis. In an appreciating area/or region, some may be ok with breaking even every month or having some overhead in the beginning , with the goal to eventually see an increased return over time.
In reality, here in Michigan, we are not in an appreciating market. The great thing is, you can certainly purchase an investment property way below value, so in actuality, your chances of receiving monthly cash flow can be very high in this market. Just make sure you are keeping up with the current "rental market" in the area you wish to invest in, to make sure your bottom makes sense and also cents!
Before one decides to get into the business of renting out property to tenants, it's important to understand the need to run the orchestration as a business. A lot of people get into the land lording business and don't understand that the goal is to be profitable. Some people are entranced by the idea of "owning a property" and not "running" it. If you are a new investor it is best that you do your homework and develop a system or a business plan. Here are some of the things you will need to ask yourself:
Land of the Tenants
When you finally make the decision to invest in real estate, and you join the Land of the Landlords & Tenants, there are few basic things that I would like to share with you as you embark on your journey. I would like to discuss the different types of tenants you should be aware of.
One of the basic things I have learned when coming across tenants is that some of them will either be headed towards a life storm, living in a storm, or maybe just coming out of one. That's just how life works for some people, no matter how much money they have or don't have. The role of a landlord is to first do research towards figuring out what point in life did you and your potential tenant connect! Remember, you are to treat this business as a business; there is little room for sad stories. The tenant will either fit YOUR criteria or not. If they don't qualify, don't try to make a miracle happen. Trust me I've been there.
Scenerio: Tenant comes to you ready and willing to move in with cash in hand. This particular tenant will present as if they currently have everything in there life together. You may have a vague understanding of why they are moving from where they were before. If you are a desperate landlord needing to occupy the place; they will convince you they have it together with little information about them. They move in; they pay the first two months, you're happy. And here it comes...you go to the mailbox and no rent money.(True Story) They call you and say..."I lost my job, because my employer found out about my criminal record, from a domestic dispute between my boyfriend and I" You can pretty much figure out what happened from there...led to eviction and LOSING even more money; along with having to cover the mortgage. Do your homework on every single tenant, it will save you money.
It is best to try to catch good tenants who are out of the storm; especially a financial storm. Their storm will affect you and your business. It is quite understood that people get in a temporary bind; but you should always start the eviction process sooner than later. The tenant will still have some time to get it together. I would say it is ok to be more lenient towards a tenant who has rented your property for 2 years versus someone who has been there only 3 months and already having problems paying rent.
Always keep in mind that when you're assessing tenants; it's about their past history and their current status. Everything may seem great but who knows what the future may hold. Have a system in place so you're not losing time and money on those unforeseen circumstances. Once you're close to the finalization of getting a tenant out of the home; start advertising for a new tenant right away.
Landlording can be a lucrative business but don't make the mistake by investing blindly. Make sure the home you are purchasing comes with equity. Know your rental market. Don't obtain a $900 a month mortgage on a home that rents out for $800. That means you are already behind in the game.
In closing; property holders can make a nice amount of money over a period of time. It's about buying at the right time, which is now. It's also about finding the right tenant to support your financial plan and knowing how to aggressively deal with the issues that may come up along the way! I would recommend reading books by Robert Kiyosaki and I definitely recommend the ABC's of Real Estate Investing by Ken McElroy.
Lastly, keep in mind that once you own your rental properties free and clear, the money comes to you directly as great passive income! If you can buy home cash, while still having a nice savings account; your plan could work out even better. So Investors, IT'S TIME RENT THAT HOUSE!
For Investors looking to invest in the Grand Rapids area and you don't have a Realtor, don't hesitate to email me at tksellshouses@gmail.com call 800-541-3378 for more information. There are houses available under 30k if you are looking for inexpensive homes!
Copyright 2008 Takara Taylor All rights reserved.
Open House on Sunday September 7, 2008 from 2pm-5pm.
5497 W.Heathwood, Kentwood, MI 49512
Visit http://www.realestateshows.com/show.php?mls=basic&id=322686 for a tour!
The applied concept of going green in Grand Rapids seems to be gaining a lot of publicity these days. Much awareness has been developed around "Going Green" as a way to enhance the way we live. What does it mean to go green? Well, from what I gathered after reading several articles and watching the news, it is basically a way to address the issues surrounding around our global climate which has been a growing concern.
The City of Grand Rapids has been working really hard to promote an eco-friendly environment. According to a recent article written in the Grand Rapids Press; the author Deborah Cook mentioned that the city has been" tied with fourth in the nation of citied with total LEED Buildings.
What is LEED? LEED is an acronym for Leadership in Energy and Environmental Design. It was initiated by the U.S. Green Building Council (USGBC). Many "Green "building projects involve a certification process provided by LEED. According to the USGBC, LEED "promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality."
Many houses, condos, schools, municipal, and commercial buildings have been made eco-friendly. Places such as The Rapid (transportation company, first LEED certification in Michigan), the Grand Rapids Water/Environmental Services, and the New Grand Rapids Art Museum to name a few have "gone green"!
Grand Rapids currently has 8 schools that have been green built and 5 of them are seeking LEED certification, and Sibley Elementary has already been certified.
This trend is expected to grow in years to come, which makes Grand Rapids an even more attractive place to live! "Let's Go Green Grand Rapids" More home builders are incorporating building green houses into their business. In my opinion, it will not be very long before real estate agents will be able to market more and more of this type of home as it appears to be a good asset for buyers to have.
Also, side note, If you don't recycle, please consider it as a part of your life as a way to show that your truly care about your environment. Here in Kentwood, MI, we have recycle days twice a month which is great. My husband went out and got 2 containers for recyclables and we now make a conscious effort to use the service! If your trash removal service doesn't have a recycle program, start one!
Today was a beautiful sunny day, and my family and I attended Grand Rapids, MI 10th annual Tastefest and Barbeque Competition. What a great turn out this year! It just demonstrated another reason why this is a great city to invest in. There were a couple of good bands that performed also but I wasn't able to catch the names of all of them. I did take a picture of one of the bands.
Some of the Participating Resturaunts were the following!
My family and I absolutely loved Backyard Grill Masters Barbeque. It was juicy and tender! and the sauce was absolutely fantastic! You can see my husband chowing down!
Let's hear it for Grand Rapids, Michigan!!
Holding the hands of first-time buyers, sellers, and investors, and those in need of short-sale assistance. I also love doing credit counseling for those in need of that particular service.
I studied the Real Estate Industry over the course of 3 years, and then I finally decided to obtain my license. I started my Training at Keller Williams in Livonia, MI. Big thanks to my first trainer, Matthew Woods of Keller Williams! who helped me alot. Now I am currently working for a prestigious Broker named AUDU Real Estate located Comstock Park, MI, primarily serving cities located in Kent County such as Kentwood, Gaines Township, Grand Rapids, Wyoming, and Grandville to name a few. I could have easily chosen a franchise broker such as Coldwell/Banker or RE/MAX, but I chose to work with AUDU Real Estate because their mentor training program and their belief in creating agents who are filled with credible knowledge, honesty and integrity. My instincts told me this was a company that has standards that supersedes the common Real Estate Broker. I love my job. I love it because I feel like I offer an important service and that I am helping to build -- brick by brick, block by block -- the neighborhoods in which people live. Everyone should feel comfortable with the decision they make when purchasing a home. My plan is to work hard to provide clients comfort when involved in a real estate transaction.
Some other things you might want to know about me is that I am a person who enjoys doing things for the community and serving those who have socio-economical problems. I enjoy working with children. The United Way in Grand Rapids is hosting a program called School of Hope where you can volunteer to be a reading tutor at 30 minutes a week. There is a need more tutors. For more information, please visit www.waybetterunitedway.org so if you live near Grand Rapids, MI and love to volunteer, check out their website.
I also enjoy writing and reading many books! I don't watch too much TV anymore, but I will tune into anything that could be helpful for my career and serving clients. HGTV, DIY Network, and TLC have had some programs!
My niche revolves around assisting sellers, first-time home buyers, and real estate investors. Also due to the current conditions in the market, I can also provide consultation services to people who are facing foreclosure. AUDU Real Estate specializes in Short Sale & Foreclosure Negotiation. Some of the other areas that I have studied involves helping people raise their credit score through disputes. There is a software that I have access to that helps facilitate this process. Alot people want to buy a home but have problems with their credit. I offer a service that will help lead them in the right direction.
My goals are to keep up with the swing of things within the current real estate market. I am familiar with the use of alot of technology that is very valuable today. Selling real estate is more than just sticking a sign in front of a yard. There is so much more to be done, and I'm here to do it.
AUDU Real Estate's Unique Service Proposition
How We do Things Differently.
In addition to assisting sellers with selling their homes and assisting buyers with their home purchase, we offer a number of specialized unique services and products which include:
1. Staging your Home for Success
We provide staging expertise to help you make your home a memorable showing experience for potential home buyers and their real estate agents. We have access to a number of individuals who have extensive experience in interior design and home accessorizing. The service of staging can cost several hundreds of dollars, but there are indications that a properly staged home nets 7-13% More than a home which is not staged. This service is FREE to our clients. To learn more....
2. E-Neighborhood Reports- FREE to our Seller & Buyer Clients
An E-Neighborhood Report is a detailed 15-30 page report about the neighborhood including recent sales, types of financing, community demographics, types of homes and much more! We also make this informative report available to buyers to compare up to 4 DIFFERENT communities before making an important investment decision. The E-Neighborhood neighborhood analysis is combined with a Professionally prepared Comparative Market Analysis to focus on homes which are most like yours in your community. The benefits of understanding these facts prior to listing or purchasing a home are important in protecting your home equity. To learn more...
3. Broker is also a trained Loan Originator and has processed closed loans
We are Realtors and this is by choice. But as the mortgage industry has expanded in recent years, it became clear that we needed to have more understanding in this area for the benefit of serving our clients. We are able to provide assistance to clients in selecting the right loan and reviewing options for financing. The Broker's knowledge of financing has helped clients make wise choices in a number of different situations including re-financing a home, negotiating short sales with banks and comparing different mortgage programs. We will work to create a cooperative working arrangement with any Mortgage lender the buyer selects and monitor the transaction to ensure a smooth closing.
4. Experience with Relocation and Sales nationwide and internationally
We have closed transactions with clients in a number of states and have worked with clients who have been relocated or been on assignment overseas during the process of transaction. Lola Audu's cross-cultural experience in living and visiting several countries on three continents gives her a window to the world and this appreciation and dexterity enables us to provide an understanding environment which is sensitive to the unique challenges of differences in backgrounds and culture. We serve and honor the dignity of the human soul and that transcends culture.
5. Foreclosure & Short Sale Negotiation
For Homeowners...
We have successfully negotiated and assisted many clients through the bewildering and disheartening process that often accompanies the unfortunate circumstances which may necessitate a short sale. Our focus and energy is directed in giving sound counsel and providing clarity. We understand that by the time a short sale or foreclosure is necessary, people are drained on a number of different levels. Our goal is to provide the information & support to get the home sold and whenever possible avoid more trauma.
For Home Buyers...
Grand Rapids, Michigan has recently gained national recognition as being one of the most affordable places to live in the United States. This is a solid community and Investors are beginning to appreciate the opportunities that exist here. If you are interested in investing in the Grand Rapids, Michigan area, this is an excellent time to be a buyer. We provide a number of services and referrals for Investor clients.
Get Free List of Forclosures in West Michigan and surrounding communities....
6. Thoroughly Well Trained Agents
Every new agent with Audu Real Estate is enrolled in a 1-2 year apprenticeship. In addition to weekly educational classes, agents are required to complete assignments and work with a skilled Mentor to develop their skill set. All contracts are reviewed by the Mentor. Because we know that we can't improve or correct what we do not know, ALL clients are given an opportunity to grade our agent experience. Compliments our agents have received can be viewed here. You can also see Examples of Class Selections and Training offered through Audu Real Estate including our NEW 2007 Learning Series.
7. Negotiation of Transaction & follow-up Through to Closing
We present all offers and include a Net Sheet. There is NEVER a surprise about the proceeds at a closing. Negotation is a skill set and an art form. It requires an understanding of legal implications and an ability to protect and enhance a clients options and position. The real estate transaction is inherently adversarial. Both parties aim to get the best deal possible. We don't think this necessitates enmity. Our aim is to ensure a fair and good result for our clients. We know that our reputation for fairness and competence benfits our clients and their real estate concerns.
When you're ready, Use this Site to Search for Homes in Various Local Grand Rapids Area School Districts....
Search the Local MLS for Homes in Byron Center School District,Allendale School District,
Cedar Springs School District, Caledonia School District
Comstock Park School District, East Grand Rapids School District
Forest Hills School District,Grand Rapids School District
Grandville School District,Wyoming School District
8. Other Stuff...
Yes, there are all sorts of things that we do to serve our clients. First of all, it is our sincere desire to build friendships, not just sell homes. We take the time to really listen and seek to understand. We keep in touch, not just because it is our job, but because we want our clients to be informed participants in the process and we also enjoy touching base. We've assisted with arrangements for cleaning, moving unwanted debris, shoveled snow, made a bed, done some dishes. But, what's this amongst friends! Lastly, we know that no one is introduced to our practice by accident. We strive to discern the true reason for the encounters we experience. Our weekly prayer focus for each client is for God's blessing in their lives in the way they need it most. Sometimes, this may be the greatest service we give.
BLOG DISCLAIMER
The information contained in the articles on this blog is the property of Audu Real Estate. Comments posted in response to individual blog posts are the opinions of the respondents. Audu Real Estate is not responsible for the opinions, thoughts or ideas expressed by visitors to this blog nor for any liability for any damages or losses direct or indirect that may result from the use or reliance on information contained herein. The information provided is deemed reliable but not guaranteed. This blog is provided for informational purposes only. Readers are advised to contact a real estate professional for specific counsel related to their individual real estate needs.
I am currently offering to present a FREE Straight Talk Neighborhood Seminar to talk about various topics of your choice. Some of the topics can include how the real estate market is affecting your neighborhood, information on schools, secrets to increase the value of you home, and much more. Please contact 616-541-2312 for more details.
Always check back, because you never know what other FREE items I may have in store for you. I think I was a philantropist in my first life. LOL!
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