Investment Criteria of a Beginning Real Estate Investor

Focusing on property features alone is a quick way to the grave of your real estate career. I think this is an easy concept to grasp, but it does come up, so I wanted to share how I feel about what variables an investor should focus on to make solid buying decisions. Mistakes are made all the time by investors paying too much for a piece of real estate, but I would bet there are even more mistakes made when it comes to NOT buying a property they should. The old saying is, “the only real estate deals I regretted are the ones I didn’t do.” I am not sure I totally agree, but I understand the concept.

If you limit your criteria to property features, you will miss out on fantastic buying opportunities.

When I go to networking events, I often hear investors ask each other about their investment criteria. I cringe when I hear something like, “I am looking for 3 beds, 2 baths that will rent for $1,400 a month.” If I get an answer like that I will likely respond with, “What is wrong with something that is only 2 bedrooms that will rent for $1,500?” The normal response is a look of confusion or no response at all. Obviously there is a lot more to it than the bedrooms and bathrooms and even the price. What about location, HOAs fees, or deferred maintenance? What about the investor’s risk tolerance, potential for appreciation or potential to redevelop in the future?

When looking for deals, there are two points you might want to consider.

FOCUS ON PRICE AND VALUE

If you focus on property features you might miss a neighborhood that produces the financial outcome you are aiming for. I would much rather hear an investor explain their criteria as a return on investment, price to property value, or even a value play in a certain area. This is the criteria that focus on the financials. A skill as an investor should be to be good at coming up with a value (that could be based on resell value, cash flow, or other potential) and then deciding what you are willing to pay for that value. A fix and flip is a great example and is easy to analyze because there are very few factors. Rentals can be a bit more challenging because variables like; location, potential tenants, future vacancies, maintenance, future price changes, your short term and long term financing, management, and rent amounts all play a role in your decision. There are risks with all real estate deals, so you will want to understand those as you work towards the price you are willing to pay.

CONFORM TO AREA

This is not always necessary, but in most cases you will want to conform to the neighborhood. If you are looking for a condo in a building full of 2 bedroom condos, then buying a 2 bedroom condo would make since. If you are only considering buying 3 bedrooms, but you are looking in a 2 bedroom neighborhood, you will severely limit opportunities. In many cases bedrooms add little to no resell value, but that is not always true. A big opportunity exists if you can find a 1 or 2 bedroom house in a 3 bedroom neighborhood. By converting the house with fewer bedrooms to conform to the area, you should see a big upside. You should also see upsides when adding bedrooms to rental property, because it should increase cash flow. All of these opportunities could be missed if you are not open to looking at them. A strategy that I see some investors successfully implement is to first understand a certain neighborhood and get comfortable with the values and then search for discounted properties in that neighborhood. In this case, you will be searching for price to value not property features.

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Fire Systems – What Real Estate Agents Should Know!

Someone who sells fishing gear ought to know how to bait a hook, so also a realtor who sells a house should know what is required, by code, to protect that home and family from a fire. I can’t tell you how many times we’ve done a home survey for someone who has just bought a home that they are all excited about, and when we get to smoke detectors we find there is only one smoke detector in the entire house. They then wonder what else the real estate agent, that sold them the house, didn’t tell them. Both the real estate agent and home inspector are likely to get a very unpleasant phone call. The real estate agent could have looked like a pro if they had just taken the time to do a quick survey of the home’s fire detection system. It would have shown the home owner that they were a true professional!

Understanding the basics of the fire code is not difficult, although codes may be slightly different from jurisdiction to jurisdiction, but they are all based on the national fire code. By having a basic understanding of what is required to protect a home from fire, a real-estate agent can really set themselves apart from the pack as a true professional.

First you should at least know if the system is interconnected (installed by a contractor) or a system monitored by a security company. The first thing to look for is to see if they have a security system. A monitored fire system uses the same control panel as a security system. Next you need to make sure the smoke detector is working. If a company that leases security systems (which includes some of the country’s largest security companies) installed the system they may have disabled the system when the previous owners moved out, or they may have removed the security panel all together if the previous customer cancelled their monitoring. Look to see if the little LED red light on the smoke detector is lit. Many of them only blink about every thirty seconds, so you’ll need to watch for the red light which may seem like it is taking forever to blink. If it blinks it has power. It doesn’t mean that it works, it just means that it has power, but usually if they have power they will work.

To test the smoke detector you may decide to just recommend to the homeowner that they have the smoke detectors cleaned and serviced by a professional. If you want to go the extra step and test the smoke you can do the simple test, you’ll need a little step-ladder, and push the test button. This will tell you the smoke detector has power and is able to sound an alarm, but it won’t tell you that it can detect smoke. They sell a can of compressed air that is made for testing smoke detectors, and offers a true that the smoke detector can detect smoke and is working properly. If it is a monitored system you will want to contact the monitoring company before you do any test so that you don’t end up with fire trucks parked outside.

Finally you’re ready to evaluate their fire system. You need to check that there is a smoke detector on each floor. In the basement the smoke detector should be located near the stairs to protect the escape route. On any floor with a bedroom the smoke detector must be located near the bedroom..The fire code usually requires a smoke detector on each floor and outside each bedroom. Usually you’re o.k. if it is located within 20 feet of each bedroom. For homes where the bedrooms are not located near each other it is especially important to make sure there is a smoke detector outside of each bedroom. Finally, there should be a smoke detector in each bedroom. Homes built before 1997 are usually grandfathered in to the old code that did not have the bedroom smoke detector requirement, but they added this part of the code for a reason and so you should update your system and add smoke detectors to each bedroom. They found that if a fire started in the bedroom by the time the smoke got picked up in the hallway the person in the bedroom was dead from the smoke or in deep trouble at the very least.

An important part of the code, that usually comes in the form of a recommendation, is the addition of heat sensors. Heat sensors are not part of the fire code because they do not detect fire as quickly as smoke detectors but they work in areas that smoke detectors are not efficient such as a garage, kitchen or attic. These are very useful in protecting property, even if they fall short for life safety. I know of one home in Scranton, PA that had the entire house burn down because they didn’t have a heat sensor in the garage. Garages by code have fire rated doors and so by the time the smoke got into the house the fire had a good start on the home. The home was a complete loss but the home owner told me the monitored fire system saved their lives. If they had a heat sensor in their garage it would have been a much less traumatic event.

To sum up what is required for a code compliant fire system:

A minimum of one smoke detector per floor
A smoke detector outside of each bedroom, which can also quality for the one required for that floor.
One smoke detector inside each bedroom
Recommended to have a heat sensor in the garage, kitchen, and attic.
Smoke detectors cover a 20 foot radius, heat sensors a 15 foot radius.
One last thing to keep in mind is that a loud siren is important to notify you of an alarm. Smoke detectors that are interconnected, meaning if one sounds they all do, meet code requirements for annunciation. Monitored fire systems should have a siren on each level when possible. Many monitored smoke detectors do not make any noise and rely on the system’s siren. Wireless smokes have a siren, but only the siren on the smoke detector, that has gone into alarm, sounds its siren, the rest of the house relies on the main control panel’s siren. It may or may not have enough volume depending on its location.

Bottom line is, fire kills, and if a real estate agent can point out the viability of the homes fire system they will show that they are really looking out for the family. For some reason I have rarely seen a home inspector detect a faulty fire system so if you will take the time to make a quick inspection you may just save a life. And one final note, if you ever see an orange cover on a smoke detector, such as in a brand new home, that is a dust cover and will prevent that smoke detector from detecting smoke. It needs to be removed before that smoke is functional. I did a survey for a family that had lived in the home for over a year and every smoke had this red dust cover still in place. If there had been a fire the entire family would have likely been killed.

It’s the little things that will make you stand out from other real estate agents, and this one will make you look like a hero to the family buying a home!

Wm R Thomas has been in the security industry for over a decade and has designed security systems for well over a thousand homes in Northeastern Pennsylvania. He is the President of 1st Choice Security Technologies located in the Scranton / Wilkes Barre PA area. Not only does 1st Choice Security guarantee the lowest prices on security systems they also specialize in high quality, yet affordable surveillance camera systems. 1st Choice specializes in installing super high resolution cameras into homes and small businesses where just a few years ago the price of these cameras made them unattainable for most home owners.

For more information about monitored fire systems check out our blog at: [http://ww

Praia Do Forte Real Estate At A Glance

Praia do Forte is known for its great natural beauty, rustic charm and famous tourist attractions. The nice beaches, peaceful atmosphere, tourism potential and proximity to Salvador makes the real estate here very attractive and to some extent expensive when compared to other similar places in Bahia.

The real estate market here is well developed and has some quality apartments, houses and large plots of land on offer. Here is an overview of what you can expect in Praia do Forte and what it is likely to cost you.

Apartments

There are many types of apartments in Praia do Forte. Most of these apartments are located in well-developed condominiums at attractive locations and provide a variety of amenities. The price can range from R$ 265,000 to R$ 1,249,000. The average apartment will cost you about R$ 620,150.

With a budget of up to R$ 380,000, you can get apartments not too far from the village or beach with areas from 28 to 75 sq. meters. These are usually single bedroom units with service area and basic common facilities like pool, parking and security. You may also get a gym in some condos.

The R$ 380,000 to R$ 420,000 range again offers mostly one bedroom apartments of about 75 sq. meters area. The buildings are newer when compared to the lower price range and construction quality is usually better. Often you will find attractive beach-front locations and sometimes in this range you can get apartments in resort complexes. Facilities like a pool, garden, parking, security, gym, sauna and games room can be expected. Some apartments are furnished.

The R$ 420,000 to R$ 500,000 range offers duplex apartments of 60 to 200 sq. meters. The sizes of the apartments can vary quite a bit in this range and you can expect one to three bedrooms with suites. Common facilities could include party areas and sports courts in addition to the previously mentioned facilities.

Apartments in new buildings with premium construction in beach-front condos or very nice locations within the town cost between R$ 500,000 to R$ 700,000. These are mostly two bedroom apartments with one or two suites, though it is also possible to find some with up to four bedrooms. The area can range from 70 to 120 sq. meters.

A fancy swimming pool, often separate pools for adults and children, parking facility for multiple cars, landscaped garden, bar, reception, and laundry facilities can be expected as part of the common facilities.

The R$ 700,000 to R$ 950,000 price range will offer you some very spacious apartments in prime beach-front locations, some within the town. These are 70 to 200 sq. meter apartments with two to three suites and all facilities.

The best apartments in Praia do Forte will cost you upwards of R$ 950,000. These are luxury two to three suite apartments with area above 100 sq. meters in upmarket condos with a wide range of facilities.

Houses

Praia do Forte offers houses ranging from modest offerings on small independent plots to large luxurious houses in resort complexes and prime locations. Houses start from about R$ 570,000 and can be as expensive as R$ 6,003,000 at an average price of R$ 1,815,000.

Houses below R$ 1,000,000 come with areas of about 70 to 200 sq. meters of construction on plots of up to 400 sq. meters with three bedrooms and perhaps a small garden.

A price between R$ 1,000,000 to R$ 1,500,000 is what you can expect to pay for houses in relatively better locations, sometimes in gated communities and having three or four bedrooms and multiple suites. Some of these come fully furnished and other amenities like a pool, covered parking, garden and water storage facilities can also be expected.

A budget from R$ 1,500,000 and up to R$ 2,000,000 will fetch you luxury homes in nice condos in lovely beach-front or other premium locations. These are larger four bedroom multiple suite houses with 250 to 425 sq. meters of construction on plots ranging from 350 to 1000 sq. meters. In this range it is possible to find houses in hotel complexes with all resort facilities. In addition to facilities in the lower ranges, children’s play area, maid quarters, etc, may be available.

The most expensive range of houses in Praia do Forte with prices above R$ 2,000,000 come on huge plots of 1000 to 2000 sq. meters. These are very large houses with five to six suites and 400 to 900 sq. meters of constructed area. In addition to all previously mentioned facilities, you can expect an office and fancy features like a massage room.

Land

Land in Praia do Forte comes in a wide price range from as low as R$ 300,000 to some costing as much as R$ 26,000,000. Leaving out extremely priced offerings, the average plot of land could cost you as much as R$ 2,640,000.

At a price below R$ 2,000,000, you will get plots of 540 to 1000 sq. meters of land suitable for construction of a house or a small condo. Some plots are fully developed and in gated communities and a majority of the plots are beach-front real estate or located close to both the beach and the village.

Though some small plots of up to 1000 sq. meters in highly sought after locations with many advantages could be priced in the region of R$ 2,000,000, this price range is usually reserved for larger tracts of land from 10 to 50 hectares. These are meant for construction of large condos or for resorts. Some of them come with the required clearances for development.

Commercial Real Estate In Praia do Forte

Praia do Forte being a tourism intensive area has a high potential for commercial outlets such as restaurants, shops and stores. Commercial spaces are available for purchase and you can use these for starting a new business or rent them out to others.

The average price of commercial real estate that is currently available is about R$ 305,000 and the price range is between R$ 150,000 to R$ 520,000 depending upon the location, size and suitability for different types of outlets. There are commercial spaces from 25 to 50 sq. meters which can be used to set up stores or other similar outlets.

Other Types Of Real Estate In Praia do Forte

Besides apartments, houses, land and commercial spaces, it is also possible to purchase farmhouses and hotels. For farmhouses, prices depend upon the location, the state of development, the size of the plot and quality of construction. The price of hotels depends upon its location, size and condition.

Praia do Forte with its beaches lined by coconut trees, village charm and its famous ecological reserves is attractive for anybody wanting to visit or live here. Investors also find real estate here very attractive due to its potential for capital appreciation and generating rental income. Praia do Forte real estate is priced slightly on the higher side, but is attractive to all types of buyers.

Thinking of buying a house, apartment, land, hotel, farm or commercial pro

Phoenix Arizona Real Estate Schools

There are many colleges and schools located in
Phoenix. Are you searching to head off to school in
Arizona, or do you want to retire, or perhaps you want
to raise your family in Arizona! When you go to
Phoenix Arizona real estate school, you will graduate
with all the knowledge needed to have a successful
real estate business. Arizona produces more
professionals than any other state in America.
Phoenix Arizona real estate investments are scattered
through out the state and has plenty of opportunity to
new graduates. Areas like Scottsdale can be a great
investment to both the buyer and the seller, as this
is a real estate are that is booming right now.
Singles and families alike are moving to the Arizona
area, where jobs are found, and the fun in the good
weather is a great time for all. If you are
interested in going to college in Arizona, or if you
want to live in Arizona, the opportunities are just
waiting for you around every corner!

Phoenix Arizona home for sale real estate is what you
find here on the pages that are included on this site.
Information about how to get a mortgage and how to
complete the process is made easy for you. To make it
convenient for you to move from one area of the world,
to the real estate found in Arizona, you can find
homes for sale, that will meet your demanding family
needs, or you can find that suitable home for your
pets, your hobbies and your tastes. If you are looking
for a home in Phoenix, you should really start your
search online. Here, in the Phoenix home for sale real
estate section of these pages, you will not only find
homes that have the exact number of bedrooms that you
want, but also the yard, the driveway, the flowers,
the trees, the schools, and where employment is found.
There are over one million people living in Phoenix,
but there are plenty of homes, and exciting adventures
just waiting for you.

Phoenix Arizona homes for sale real estate is a
combination of many types of homes, such as one
bedroom, two bedrooms or even five bedrooms. There are
almost 500,000 homes in Phoenix, and the average age
of the homes found in Phoenix is just thirty years
old, making some of the most luxurious homesaffordable! Are you interested in a large home? You
will find that in that 500,000 homes in Phoenix, there
are about 23% that are four bedroom homes, and 49% are
three bedroom homes. Your entire family, or the family
you are still planning will feel at home, in your new
home in Phoenix. No matter how small or large you are
planning your family to be, you can have it all in the
home of your dreams in Arizona.

Phoenix real estate for sale is going to be difficult
to sift through if you are not sure what type of home
you want to purchase. We do suggest that you make a
listing of what you need, expect and want in your new
home. Do you want a deck, a large yard, a sunroom, or
you want to have three bathrooms, four bedrooms, or do
you require a home that is very centrally located to
where you work? Thinking about these items and topics
before clicking on the search button is going to help
you find that home you really want without getting
sidetracked with the many types of Phoenix luxury real
estate that is available for you to also choose from.
The luxury homes that are available include some of
the largest kitchens, the largest lots, swimming
pools, and have other perks such as home indoor
swimming pools, sauna rooms, attached greenhouses, and
much more. Making a list of what you expect from your
dream home will allow you to search for that home in a
speedy manner and without having to settle for any
less than what you would expect!

Phoenix residential real estate can be searched
online, in the pages of this site, where we show you a
complete listing of homes from the starter home, to
the high-end luxury homes that are available. The
market is constantly changing, so when you come across
a listing that you just love, that the layout fits
your every dream, be sure that you contact us about
starting your mortgage process right away. Have you
checked your credit lately? If you haven’t checked
your credit score, and you are ready to get a
mortgage, order a credit report so you can review your
credit worthiness before settling on a home. You may
find your good credit will allow you to purchase an
even higher priced home that you can afford with your
new job while living in Arizona! If you already have
your career in place, and you are searching for a new
home in the Phoenix area, you are in luck; many homesare available now in areas near schools, near industry
and close to the conveniences you want most.

Scottsdale is one of the best places to buy and sell
real estate because it is the area that everyone
wishes to live in, no humidity, lots of sunshine and
exciting American culture. This is one of the best
resort locations in Phoenix if you are looking for a
high end, luxury home. Scottsdale is where some of the
most expensive houses are and the best real estate,
with homes that are not comparable to anywhere else in
the world. When it comes to buying a home, think
about living near Scottsdale. Scottsdale is one of the
most sought after real estate ventures, because the
area is exciting, fun, and prominent. Buying a home
in Scottsdale is one of the best investments a real
estate company or client could ever make.

Real Estate in Phoenix Arizona is quite a hot spot.
By the end of 2005, the number of houses sold in the
area was 35% more than it was at the end of 2004. It
is still considered a hot spot for real estate.
Although the economy has been weak, Phoenix Arizona
real estate for sale has risen, as well as, the buying
rates. New houses are being developed and Phoenix is
still a hot market for newly graduated students from
the Phoenix Arizona real estate school. It is
definitely the place where the market still seems to
be wide open and will easily attract buyers or estates
to new companies.

Once a client has located a home from the real estate
listings in the Phoenix, Arizona area, they will want
to talk to a representative. Your education from the
Phoenix Arizona real estate school comes in handy, or
your knowledge from any real estate education you have
had. With persuasiveness, you will be able to close
the deal by the end of the working day. Remember real
estate in Phoenix Arizona is easy to sell because of
the wonderful benefits the area offer the client; it
doesn’t take too much persuasive skills to seal the
deal.

You may have to work some charm, but the selling won’t
be hard because the houses or commercial real estate
will practically sell themselves in the Phoenix area.
When it comes to Phoenix Arizona commercial realestate listings, you may have to work a bit to get the
buyer who have the ability to complete the purchase,
but the area again will practically sell itself. The
area is not only one of the most beautiful places in
Arizona, but the security that the area offers can put
clients and potential clients at ease.

Are you interested in learning more about the
population in Phoenix and in Arizona as a whole? In
Arizona, you will find that the average income is just
under $47,000 per year. Compared to the 12% of African
Americans living in the US, the rate of African
Americans living in Arizona is about 5%. The
population is about just over 71% white compared to 2%
Indian and 2% Asian, and 24% Hispanic. No matter what
your ethnic background, you will find that the Phoenix
communities are a combination of Americans living
together, growing as a city, and expanding as new
homes are built yearly.

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