Today, I want to write about the pros and cons of buying a fix-up property. I suppose that every home that has been lived in for some time needs some kind of work such as painting, new flooring, and the like. With all the foreclosures on the market today, I know from personal experience that they often require considerable renovation and fix up. Please find below some pros and cons for buying a fix-up property:
PROS FOR BUYING A FIX-UP PROPERTY
You can buy a home at a reasonable price
The home will reflect your taste in colors, style, etc. and has your “fingerprints” on it
The initial cost for the home and the cost for renovation are often less than the value of the home after repairs
CONS FOR BUYING A FIX-UP PROPERTY
If the fix-up property is going to be your primary residence, are you okay living in renovation?
Can you do some of the work yourself and/or get a trusted contractor to do the work?
Do you have monies to afford the renovation costs?
Go buy or sell a home.- Randy Wall, Lora Lee Properties
Today, I want to speak about the ugliest four letter word. I was raised in a home where profanity by children was not tolerated lest I be face a spanking or some other punishment. There is another ugly four letter word that some utter from time to time. While many would not consider it profanity, it is a word that will surely limit your life and kill your dreams. THAT FOUR LETTER WORD IS THIS: CAN’T. My Mom always liked to say: “Can’t never could do anything. Whether you are a real estate investor, real estate professional, or you are buying or selling a home, a “can’t attitude” will surely limit what you do. Here are a few ideas of things you can do to overcome a “can’t attitude” for an “I can” attitude.
TRY TO AVOID CONVERSATION WITH PEOPLE THAT ARE NEGATIVE- I recall hearing the late Carlyle Marney once say that there are basically two kinds of people in the world: basement people and balcony people. Basement people are people that bring you down, and the balcony people are people that lift you up. Try to spend time with balcony people who lift you up and encourage you. It makes no difference if that balcony person knows much about real estate; if they do know something about real estate, all the better. I know that this is a challenge if that basement person is a family member.
LISTEN TO OR READ SUCCESS STORIES- Fill your heart and mind regularly with conversations with or ideas from people that encourage you. Listen to them as they tell how they sold their house or how they are doing very well in the field of real estate. If you don't personally know anyone, check out the internet where you can hear stories from real estate guru's and their disciples. You can also check out your local library or bookstore where you can listen to motivational speakers or real estate giants.
MAKE A PLAN, SET GOALS, AND WORK THE PLAN- It is not enough to surround yourself with positive people. You need to set goals… steps to reach those goals… and then go do it. If you don’t take action, those people who said “you can’t” were right.
Good luck in your goals. Enough reading, now go do it.- Randy Wall, Lora Lee Properties
Today, I want to talk about dealing with renters. I want to speak as a person who has been a landlord for about 15 years. It is easy to find persons telling “war stories” about their experiences with tenants or renters. Telling horror stories about tenants is not the purpose of this blog entry. I want to talk about some ways to be a good landlord. Here are a few things I think are important as a landlord to tenants or renters:
UPHOLD YOUR END OF THE RELATIONSHIP WITH RENTERS- Treat your tenants the way you want them to treat you as landlord. As you expect your tenants to pay their rent in a timely fashion, respond to the requests (e.g. repairs, etc.) in a timely fashion. As you expect your tenants to keep the home in good condition, be prepared to do expected maintenance on the property (e.g. HVAC service, replacing roof, etc.)
SHOW APPRECIATION TO YOUR RENTERS- Everyone appreciates being appreciated. Make the effort to remember your tenants at special occasions. For example, we try to remember tenants when they have a new child or with a small Christmas gift.
BE CONSISTENT WITH YOUR RENTERS- If you have a rental agreement with your tenants, let it be your guide on how you treat your tenants. It is important for your business and for the tenants for you to hold them accountable. If the rent is due by a certain date and is not paid, charge a late fee. If the rental agreement says no pets, hold the tenants to that.
While we have had a few bad experiences with tenants, most of our experiences have been positive with tenants. If you can follow these guidelines, I am sure that you will have many positive tenants also. -- Randy Wall, Lora Lee Properties
Today, I want to share some helpful hints in searching for property on the internet. Though I prefer to see a property in person, the internet provides some helpful resources to assist in your home search. Most persons in the market for homes today use the the internet in their search. Here are a few things that I find helpful on the internet:
County property information- These sites will give you information about the amount of taxes on the property each year, the cost of the property when it was bought, and the square footage. Most counties in NC have this information on the internet.
Crime Report- If you do not know the area where you looking for property, you might want to check out one of the web sites that gives crime information. These sites also include information on registered sex offenders in the area. Most people are interested in buying property in an area that is relatively crime-free.
Real Estate web sites- Many of your real estate agencies have web sites that offer great information on properties for sale. They include things like virtual tours, recent property sales in the area, etc. There are also web sites for real estate in general like zillow and trulia that can be quite helpful.
Community information- If you are buying property in an area that you are not familiar with, you might also want to check out some web sites such as the local chamber of commerce, schools, etc. that will give you more information about the community.
These are a few tips that I find helpful. Explore the internet, and discover these and many more. Just remember that these are resources, and no web site can ever replace a person. Happy home buying and selling. – Randy Wall, Lora Lee Properties
Today, I want to write about the word “House”. A house is a key component for buyers and sellers. Do you know what this the central letter in that word? It is “u”. I think that is not just irony. As “u” is the central letter in the word “house”, you are at the center of buying and selling a home.
There are many folks that believe the key to buying or selling a house is someone else such as realtors, appraisers, or a good mortgage broker. Other folks believe the key to buying and selling the house is the market- a buyers market, a sellers market, etc. While all of these people and circumstances are important to buying and selling, they are not at the center. No, you are.
Seller, you are at the center. You need to be willing to sell your property in comparison to the market for your property. If you work with a realtor, listen to your realtor on what price to list your property for. Follow their guidance on small things you can do to improve the appearance of your property instead of “getting your feelings hurt” on how your home looks.
Home buyers, you are at the center of buying a property. Don’t expect to buy a mansion when you are only willing to pay for a “fixer upper”. Be willing to not just look at what the house is, but what it can become through your money and imagination.
Remember, the responsibility is on you. As “u” is the central letter to the word “House”, you are at the center of buying and selling a home. Happy home selling and/or home buying.-- Randy Wall, Lora Lee Properties