Getting The Perfect Conveyancer For Your Property

The transfer of property from one party to another is a very serious process that needs to be handled meticulously. Whether you are a buyer or a seller, conveyancing services will prove very helpful. The conveyancing professionals help you in handling every other detail that touches on the transfer so you enjoy a smooth and legal process all through. On your behalf, the conveyancer will draw up and assess contracts, conduct all necessary local searches, deal with land registry issues, manage stamp duty payments and charges and even collect and transfer finds. This is the person who will also provide you with the legal recommendations and advice you might need during the transfer process.

Considering all that you will trust the professional with, you definitely want to hire someone you can fully trust and someone who will actually deliver as expected or even beyond your expectations. There are so many experts offering the conveyancing services and therefore to get the best you must be willing to go a little extra mile so you get the perfect one to handle your property buying or selling needs.

The price – Price considerations are important. The conveyancers charge clients on varying ways and so, whereas some may charge fixed fees others may charge a percentage based on the house value. There may also be other extra charges for paperwork, VAT, disbursements and such. Assessing a number of different quotes may be the best way to go to find a range that you can afford. You really do not want to settle for very cheap services that they are questionable, but then again, you do not want to end up being overcharged.

The services – The quality of services offered is what should matter most when hiring a conveyancer to handle the process for you. The professional you hire should not be too junior and should not be overworked either. You deserve full attention from an experienced person so you are sure no details are missed out on during the transfer process. Always check to see what services your conveyancer offers, the experience and also have the process explained to you in detail so you are sure you can trust in what you are about to pay for.

The area knowledge – Local conveyancers are very reliable because they have sound knowledge of local leases and laws. The arrangements differ from place to place and it is therefore wise that you work with a local solicitor who understands the law and the process to make the process as smooth as possible. Even though it is possible to have all dealings with your conveyance company over email or phone, one located near you can be a lot more convenient because they you can pop in and drop or fetch documents easily without waiting on post.

Recommendations – If you want to have an easy time finding and hiring a conveyance, then getting recommendations from friends and family can be a very good idea. The buyer and seller experiences can lead you to the perfect one for your property dealings.

Top Tips For Getting A Mortgage

Without any doubt, taking out a mortgage is a big financial commitment. So, you may want to get the best deal. The good news is that you can do a lot of things to improve your chances of getting a mortgage. Below are 10 tips that can help you with this.

1. Credit score matters

First of all, before you apply for a mortgage, you should get a copy of your original credit report. You can get it from Equifax or Experian. Moreover, if you have a not-so-good credit rating, you can do a few things to improve your score. For instance, you can close all the credit cards that you don’t use.

2. Calculate your budget

The next thing is to calculate your budget. You should make sure that you are going to borrow enough in order to buy the property and that you have enough money on you to meet related costs and fees.

3. Stick to Your Job

Usually, lenders give preference to employees who have been with their employers for a long time. So, if you want to leave your existing job you may want to hold on until you get your mortgage. Ideally, you should wait for at least 6 months before you apply for a mortgage.

4. Reduce Your debt

Before applying for a mortgage, make sure you don’t have a lot of outstanding loan or cash on your credit cards. So, you should pay back your debt or reduce it before applying for loan. This will also help you borrow more.

5. Proof of income

Your lender will also ask you for your proof of income. For this, you will need to get a P60 form from your employer. This from contains a summary of how much you got paid by your employer in a year and how much has been deducted in tax.

6. Bigger Deposit

If you want several mortgage choices, you may want to have a bigger deposit. Usually, lenders offer best rates to those who are willing to deposit a large sum. Aside from this, you will also be able to make lower payments each month.

7. Get a Partner

If you can’t deposit a decent sum, you may buy with someone else. As a matter of fact, this is a great way of getting a good mortgage, especially if your partner has a very good credit record. But make sure you think about it before making the final decision.

8. Consult a Mortgage broker

Mortgage brokers are there to help people like you. If you don’t want to take all the hassle, consulting a mortgage broker will be a stroke of genius. They will guide you throughout the process and you will get your mortgage. How much can I borrow? This is a common question. You can ask this question to your broker, and they will make calculations to answer your question.

A Perspective on Mortgage

A mortgage is probably the scariest loan of your life and hence needs extraordinary forethought before you take the leap. The lender can approve the mortgage based on a few factors such as your income, your personal assets, your debt, your student loans, etc.

Putting into perspective the mortgage rates of a decade ago, this may be perhaps the best time for you to buy a home. The home prices, for the time being, are slightly below their peak levels of 2007 and there are forewarning signs of an inflation surge which would have an unfavorable pressure on mortgage rates. It is almost certain that conditions are not going to get any better.

Supposing you’re ready to make a down payment, this is where your finances come into play, and it is certainly no cakewalk unless you’re filthy rich. Lenders will scrutinize your finances, and it’s in your best interests to be as forthcoming as possible.

The brokers will make an estimate of your income in the past two years by looking at your tax returns and your recent bank statements.

One of the things they look at is your Debt-to-Income ratio. This will decide whether you can afford to own the property. Most lenders set the limit at 43%. This is the maximum DTI ratio allowed to qualify. Paying down your credit card balance can help improve your DTI. Another thing Lenders look at is your FICO score which depends on factors such as Payment and Credit History.

As far as your credit card debt is concerned, Lenders look at your payment history. Any missed or delayed payments can adversely affect your chances of securing a mortgage.

Most importantly, it is crucial to have a cash reserve. After putting the down payment, there are closing costs, and then the monthly mortgage payments. Lenders need to know that you have enough.

Certain circumstances or situations that can have bearing on this case need to be fully disclosed such as Divorce proceedings because child support affects your finances.

During this period, it is wise to stay away from securing any additional loans. Your mortgage broker will not respond favorably to you taking a car loan for example. Avoid discrepancies at all costs.

When paying back your mortgage, there are several aspects to consider such as your payment schedule; It can be monthly, bi-monthly or weekly. Along with that, there is the interest rate which can either be fixed or variable. Fixed interest rates are higher because they do not vary for the entire term of the mortgage.

14 Reasons You Must Consider Owning Rental Properties

I was a 24-year old MBA grad know-it-all. I had life perfectly figured out and I certainly knew everything about investments. Working in the finance industry for a large multi-national firm, I often worked with high networth business owners. Much to my surprise, these multi-millionaires almost always invested in real estate and were generally seeking out new ways to capitalize on real estate opportunities. I was perplexed, didn’t these highly successful business men and women know that the paltry returns of real estate were minuscule compared to the stock market? I mean, I could show them many “Wall-Street” reports that concluded real estate was a really poor investment compared to stocks and mutual funds.

It was almost a full decade later that I would begin to seek to understand real estate investing in earnest. Thankfully, by this point life had taught me the importance of humility and, that much to my surprise, maybe I didn’t know everything. I began to quickly see that with real estate, the “cards are stacked in your favor.” You enjoy the tremendous benefits and advantages that the wealthy have throughout time. The economic structural systems and tax laws are designed for your benefit! I was excited and started learning as quickly as I could.

Rental properties have historically been the #1 wealth building strategy in real estate. You borrow money to buy your asset and then have someone else pay for the costs of your asset as you enjoy the benefits of appreciation, equity build-up, tax advantages, and cash flow. What a system!

Here are the 14 reasons you must consider owning rental properties.

1) Leverage (OPM)

The most powerful tool in real estate! You can typically borrow between 70% – 80% of the cost of the property and yet still receive 100% of the benefit of appreciation. OPM stands for Other People’s Money and is what helps fund your deals.

2) Someone Else Pays the Expenses

A good rental property is one where the rents paid by the tenant more than cover all of the expenses associated with the property and yet you still receive all of the benefits, including appreciation.

3) Appreciation

Typically home prices increase in value over time. According to the Texas A&M Real Estate Center, the median list price for a home in the Austin/Round Rock, TX MSA in 1990 was $72,252. In 2015 it was $260,000!

4) Loan Paydown / Equity Buildup

Even if you do not have much equity when you initially purchase the property, without contributing any additional capital you can build up significant equity. You get the duel benefit of using the rents collected to paydown on your mortgage while simultaneously enjoying appreciation. The house is now worth more in value than when you bought it and your loan balance is now lower than the original amount you borrowed. Over time, these two factors are significant!

5) Tax Benefits / Deductions

Most expenses associated with the cost of ownership can be directly deducted from any income you receive on the property. The tax benefits of owning real estate are extensive and are definitely worth exploring.

6) Depreciation

So even though as we discussed earlier home prices historically rise over time, for tax purposes you get to “depreciate” a certain percentage of the value of the rental property each year. Depreciation, which is an expense for tax purposes, serves as a powerful income shield.

7) Inflation

Inflation normally has a very negative connotation for most people. As a real estate investor, you put the power of inflation on your side. As the cost of living increases, you concurrently increase rent. The loan payment is fixed and you are now paying back the loan with “cheaper” dollars. Inflation is a great ally for debt financed properties!

8) Yield (Passive Income)

One of the key problems facing retirees is where to achieve decent yield on their investments. Real estate offers incredible passive income once the note is paid off.

9) Positive Cash Flow in Interim

Until the note is paid off, a good rental still returns several hundred dollars a month in positive cash flow.

10) Hard asset / Less volatile

With real estate you have the security of a hard asset that you can drive by and inspect at any time of your choosing. Additionally, although property values can go up and down, real estate is typically less volatile than other asset classes.

11) Own Property Free and Clear at End of Note

If you have a positive cash flow rental, other than the initial down payment, the rents collected from tenants have paid for all of the costs associated with the property. Once the loan is paid off, you now have an incredible cash flow producing asset with no debt attached to it.

12) Easy to Refinance

As property values increase over time, rental properties are relatively easy to refinance. This allows you to pull out equity and move it into other great property opportunities as they come along. Your initial down payment on the first property could serve as the equity that springboards you into many others.

13) Timing

With rental properties you decide when you sell. This is critically important for any tax minimization strategy. Additionally, by controlling the timing of a sale, you may also be eligible to capitalize on tremendously positive tax deferment programs like a 1031 Exchange.

14) Financial Freedom

This is the ultimate goal and what makes all of the hard work worth it! With long-term ownership of rental properties, you are able to create enough passive income that all of your living expenses are covered. You have no financial need to work at a job and have the freedom to pursue work (or any activity) for fulfillment.

As you can see from the list above, the economic structural systems and tax laws truly do benefit real estate investors! Is there any wonder why all of the successful, high networth business owners I came in to contact with utilized real estate as a wealth building tool? Real estate truly is an amazing tool you can use to transform your life!

From Fields to Flats, The Changing Landscape of Sound Investment

Today, the market is flooded with the options of Investments. Mutual funds, stock trading, insurance options are some of the options that dominate the majority of calls being made by a tele caller representative of any financial institution. The array of choices available does little to alleviate the confusion and skepticism surrounding the reliability of such options. In times like today, the old advice of buying land for sound investment merits little discussion due to the improbability that surrounds it. The square inch floor price is more than what can be labelled as affordable. Also, the prospect of going to a village evokes little nostalgia from the youth of today. Having spent a major chunk of their childhood growing up in metropolitan cities, the hardships of a rural life do little to change the negative perception. However, in failing to pay heed to their wise old grandparents, they may be losing out on a reliable and safe bet for their present and future.

Anybody having a grain of sincerity in building their assets have read Rich Dad Poor Dad by Robert Kiyosaki know what value a static asset holds. Whereas the author encourages the readers to look into the avenues that they trust on, reading from the author’s own experiences, one can come to appreciate the deep value that real estate holds even to this day. Granted, buying a piece of land, agricultural or otherwise, is out of reach, but the options to invest in what is built on that land is aplenty. With the breakneck speed of expansion that is taking place in metros like Delhi and Mumbai, the difference between main city and outskirts has blurred. With world-class transport options available in many of the Indian cities, the choices of owning your property have burgeoned.

But there are some for whom owning of property may not please than their preference of the investments that yield handsome returns. But a closer look reveals a lot more than reveals the eye. If the owner is not the occupant, these flats are mine of big returns. With the increase in job openings, many skilled professionals swarm the metros every year in search of it. The demand for good housing options, then, is bound to arise. It’s here that your foresight and planning comes into play. Offer them all the services to make it a home away from home and you earn twice the return. Hand it over to someone to grapple with the issues to maintain the flat and earn stress-free income to go along with the pay of your primary job. The things that you can do are many and the chances of failing are few, if any.

To earn a living is the primary reason why we all work, but to build something for our legacy is why we all invest. With the dearth of options out there and an irresistible one present before you, it’s hard to make sense of choosing any other way. To invest is being wise and to learn from it contributes to the wisdom. Sometimes, though, it’s better to bathe in the wisdom of others than cultivate your own.

From Zero to a Million: The 7 Strategies I Used to Create a Million Dollar Real Estate Business

When I got started in real estate investing I was flat-broke, my credit was obliterated, and I was still trying to financially recover from a major business setback. As if that wasn’t enough, the housing market had just cratered and was in a complete state of distress. It certainly was an “interesting” time to choose to become a full-time real estate investor to say the least.

Believe it or not, this ended up being incredibly beneficial for me in the long run for two key reasons. First, I had to take action. I didn’t have time to wait. I had a stack of bills I needed to pay and I needed to pay them now. Second, I had to learn to acquire properties so cheaply that I would have no problem “quick selling” them even in an awful market. Both of these have been critical skills to my real estate investing success and have allowed me to build a million dollar real estate business.

Here are the 7 real estate investing strategies I used:

1) Wholesaling:

Wholesaling is when you put a property under contract and then assign your rights in that contract to an end buyer for a fee. It takes very little money to do. What you need is knowledge and a lot of “hustle.” Wholesaling served as the foundation of my real estate business and is what “kept the lights on” in the beginning.

2) Simultaneous Buy/Sell; Double Close:

Similar to wholesaling in that you don’t keep the property, a double close is when you both buy and sell the property at the same time. I would do a double close if I thought the markup was substantial enough that the potential buyer would balk. By having two sets of closing documents, the end buyer only sees the price you are selling the property at and not what you paid for it.

3) Rehabs (rehab to rent, rehab to owner finance, rehab to sell):

Thanks to HGTV everybody is pretty familiar with rehabbing. Basically you are completely transforming a house that needs repairs or updating. The finish-out of my rehabs vary pretty dramatically depending on whether I’m getting a house ready to rent or ready to sell. If I’m looking to sell, I certainly create that WOW factor!

4) Spec Home Building:

Short for speculative, this is building a home without having an end buyer lined up prior to starting construction. I view this as a somewhat risky strategy as at the tail end of every boom speculation runs rampant and often these spec homes wipe people out when the market inevitably comes back down to earth. If I build a spec home it is priced for moderate level housing and can be used as an excellent rental if it doesn’t sell.

5) Owner Finance (homes and land):

When you owner finance a property you are essentially taking the place a lender traditionally would be in. Instead of receiving a lump-sum at closing, you are paid out over a period of years and receive interest. This can be a great tool for creating passive income! You do a couple of months’ worth of work upfront and get paid for that work for 15, 20, or 30 years. What a business!

6) Land Investments:

I have bought prime properties that presented incredible value. Again as this is a speculative type of investment, every time I buy a piece of land I also make sure I can profitably develop it in case it doesn’t sell. Remember, until you sale, land generally only produces outflows.

7) Rental Properties:

Rental properties have historically been the #1 wealth building strategy in real estate. Someone is paying for the costs of your asset as you enjoy the benefits of appreciation, equity build-up, and tax advantages. I primarily focus on moderate income housing that performs well in any market environment. Additionally, every rental I purchase is always a positive cash flow deal; meaning the income more than covers all of the expenses associated with the property. Rental properties are a great way to generate sustainable passive income.

As you can see in the examples above, to be successful in real estate you don’t need lots of money or great credit to start. What you need is a willingness to learn and most importantly a willingness to take action. Real estate investing is an incredible tool you can use to transform your life!

Tips for Launching Your Real Estate Investing Career

Most investors looking to launch real estate in their investment portfolios may face a challenge on how to start the entire process and understanding the complexity involved in starting this business. Investing in Real estate is typically different from other investments such as bonds and stocks as it may look overwhelming to new investors. However, the real estate business does not have to be scary or difficult if you follow the helpful 5 tips that have been discussed below. The tips will help you in reducing risks and maximizing your returns in the long run. Real estate investing is among the best and safest wealth-building businesses in the world if carried out correctly.

• Find the best and convenient location for properties.

New investors often make a mistake by limiting their search and focusing on areas that are near their homes. You may find a Realtor to advise you on the most appropriate location for launching your investment, which in most cases might be a bit further away from your home. New investors often think that their properties need to be close to their homes in case tenants contact them with problems such as repairs. However, if the real estate property undergoes put into good quality and any necessary repairs done before the tenants move in, you will be able to find a more suitable location position for your investment.

• Start small, but go bigger as soon as possible.

It is perfectly okay to start investing in low-end and smaller properties depending on your capability. This is however not how to establish your empire. You should ensure to keep your records and as soon as your investment seems adequately stable, do not hesitate to acquire bigger properties. The larger assets have a tendency of appreciating faster which makes them more beneficial to your investment than cheaper and smaller properties.

• Be creative.

If you want to launch a long lasting real estate, creativity is among the most important aspects to consider. Your creativity may apply in marketing ideas and also investing in attractive properties which attract tenants effectively. It is recommended to do extensive research on the popular real estate patterns and you will definitely launch your real estate business successfully.

• Learn to Sacrifice.

If you are looking to start your business successfully and achieve financial freedom, it is vital to develop a habit of sacrificing some irrelevant activities. You might need to relinquish things like vacations and direct the funds toward the down payment of your investment. Sacrificing offers a great way of building up adequate initial capital for launching your real estate business.

• Find a supportive and highly recommended bank if you are looking to finance your investments.

A superb source for recommendations for a supportive bank or mortgage broker, for new investors who plan to finance their investments, includes a Realtor and other investors in the same business. They will offer you helpful advice on the bank that will finance the launch of your business effectively.

Conclusion

The above simple tips will certainly help in you in the successful launching of your real estate business. It is also important to keep in mind that putting more effort and working smart in your investment will give you quality results and greater rewards over time