Monday, May 21 2012
With property prices currently sagging, more and more investors are looking towards real estate as a smart addition to an investment portfolio. Certainly there is money to be made in property, but there is also a great deal of risk involved. Education and experience are the keys to navigating the often-hazardous property market. Here's a quick guide to help you build up the right property portfolio. Why should you invest? Property investment carries with it numerous advantages for investors. According to broker and President of Equity First Realty, Ben Yonge, the current down market is the perfect time to capitalize in the property market. "Real estate prices are so extremely low. Buying an undervalued or distressed piece of property usually means that it can be 'cash flowed' with a nice annual yield if the right tenants are placed," he explains. "Prices are already on the rise so holding cash-flowing properties for the next three to five years should mean substantial gains in appreciation." Preparing your finances Gaining the correct financing is often the key to building a great property portfolio. It's always wise to arrange financing before looking at your first property, to avoid losing out to other buyers who may have already secured financing. Many lenders will demand an up-front sum of up to 30 percent as a down payment on the loan, so ensure that you've got the money prepared before proceeding. Know your market Buying property is a major investment, so it's important to analyze all the facts before taking the plunge. If you plan on renting the property, Yonge says that the current rental market and total cash required are the two most important factors to consider. "Buyers need to know where they're buying and should verify that the property can be tenanted quickly," he says. "In addition to purchase costs, buyers must also factor in the costs to bring the property to rental ready condition. Similarly, if you plan on renovating the property in order to resell it, you should speak with a real estate agent or financial planner to ensure that the investment will be worthwhile. Taxes Even the brightest prospects can be sunk by a heavy tax burden. That's why it's always wise to consult a real estate attorney about the relevant taxes before closing a property deal, to identify any loopholes or money-saving measures. For example, investors may be able to sidestep capital gains taxes on an investment property if they have lived in the home for at least two of the last five years, according to the IRS. Growing your portfolio Once you've successfully purchased your first property, you can begin growing your investment portfolio. To help expedite the process, Yonge recommends hiring a professional. "Working with a good real estate agent, and preferably a good wholesale brokerage can save a ton of time and greatly increase the number of deals a buyer is able to analyze," he notes. It may be wise to invest in several different types of property to reduce risk in the face of market fluctuations. Read more: http://www.foxbusiness.com/investing/2012/05/10/how-to-build-real-estate-portfolio/#ixzz1uZXbw9OO Friday, May 18 2012
Both hardwood and carpeted flooring can look great in any Evansville property. However, when that property is purchased by an investor whose intention is to make it a lucrative long-term rental, hardwood floors can have a real advantage over carpeting -- for both durability and enhanced aesthetic appeal.
Yes, the initial investment is definitely more expensive. But hardwood floors are extremely durable: they withstand years of the toughest use (by even the roughest of boots!). By comparison, carpets tend to rip and stain easily. With replacement costs starting in the neighborhood of $3.50 per square foot, that means their actual property management expense will usually be higher. The resulting value to present (or future) landlords can be considerable. Hardwood flooring also gives any property a higher-end feel to it, which could tend to attract higher quality tenants.
Canny landlords know that there are both good and bad tenants out there; only time can guarantee which kind will wind up in any given house. Although hiring a great property management company is one step that goes a long way toward keeping an income unit in great condition, over the years there is always a risk that some renters may cause damage, leaving the landlord or property management agency to deal with the mess after they move. And the fact is that any carpet can be ruined through one accidental stain -- even by the most conscientious of occupants. Conversely, if hardwood floors get scratched, it’s a fairly simple matter to sand and re-varnish it a vacant property.
The only real downside to hardwood floors -- aside from the initial expense -- is that they can make a house seem a little ‘cold,’ while carpet can make a house feel cozier. It may not be the responsibility of a property management firm to make a house feel cozy, but it still can affect occupancy rates. Nonetheless, many income property owners decide that it is not a good enough reason to choose carpeting. They hope that hardwood’s durability is equally valuable in the minds of the high quality tenants they hope to attract.
If you are a local investor considering buying an income property, or a current property owner looking for a great property management company referral – give me a call to discuss today’s options. As an experienced and well-networked agent in Evansville, I always have a number of sound referrals I will be happy to share with you. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com Thursday, May 17 2012
These days the words “bank owned homes” have become practically synonymous with a single word: “opportunity.” With prices and mortgage rates this low, first time home buyers, investors and seasoned property owners alike are looking at a raft of buying options unlike any our town has seen in a very long time.
That option of buying a bank owned home has certainly opened a viable route for those looking to own a home at the fraction of what it cost just a few years ago. But not without a price: the best local bank owned home bargains are almost certain to fall into the ‘fixer-upper’ category.
When considering the purchase of one of our Evansville bank owned homes, I’ve found that my most successful clients have a few qualities in common:
- patience – they wait until they’ve found a house that suits all their needs
- prudence – they resist the temptation to take out too big of a loan
- realism – they know how much hard work they will be willing to put into the house
Finding the right fixer-upper should be approached as a process: in other words, never buy the first home you see until after you’ve checked out some of its competition. There are more foreclosures on the market than ever – a phenomenon that works to your advantage. When you do find the right home, make sure to take out a loan that makes sense. Often people who are in a hurry to buy a house are tempted to take out a loan without giving enough consideration to its immediate and long-term implications. Being coolly realistic as you work out the numbers will pay off for a long time.
Once a bank owned home is officially yours, the hard (often fun!) work begins. Buying a home in need of repair has always been the surest way to find a deal, but it is also the way to improve or develop home maintenance skills, bond with family members, and keep a tight rein on the family budget. Here, too, you need to be careful not to get carried away– you don’t want to overbuild or overdevelop beyond what is appropriate for the neighborhood setting. In other words, keep your end goals in mind. My advice to clients varies depending on their individual needs: Is it an income property? Or the family home for the next 15 years?
Foreclosures show no signs of slowing down in the near future, so this May’s buying market is opportune. If you’re considering buying a bank owned home in Evansville, call me today to go over your options and to put a plan into action! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com Wednesday, May 16 2012
Though things are looking up in real estate these days, selling a home inEvansville is as demanding as ever. As in any serious business proposition, looking for ways to increase the value of your offering will always pay dividends.
One of the major ways you can make your ownhome more marketable is to do a bathroom remodel. It’s always a key focus for prospective buyers…and yes, it does sound like a lot of work (and a lot of money) -- but there are a number of ways you can cut down on both.
First, step back and give a hardheaded look at the conditions a remodel would correct. In a surprising number of cases, all a bathroom really needs in order to look more glamorous and inviting is to add a fresh coat of paint or a change in lighting.
But such quick and easy fixes are not always enough to materially cut the time selling a home will take. The good news is that ideas for more comprehensive solutions are now easier to find than ever, thanks to the Internet. One such quick idea-generator can be found atwww.Calfinder.com/bathroom-remodeling , where you can view all levels of bathroom remodeling ideas and their associated price tags. It is the site’s free estimate feature that can make it easier to financially plan your project.
Some of those ideas can include installing a new bath or adding a shower. Having a separate guest toilet is also a feature the market tells us is highly valued. Trimmings such as taps, mirrors and cupboards also increase the value of a bathroom (and decrease the time selling a home may require).
Everyone planning on selling a home in the Evansville area usually has the same two underlying goals: getting as much of a return on their investment as possible as quickly as possible. Since bathroom remodeling can be an easy way to earn as much as a 90% return on its cost while increasing the likelihood of a quicker sale, it’s well worth investigating. Other possible benefits are attracting better-qualified buyers while reducing the costs and preventing delays associated with inspections.
I am always available to provide my clients with information on which renovations are in demand, and where you might see the most return on your investment. My experience and inside knowledge can give you the advantage of using your money as wisely as possible to optimize your home for future buyers. If you’re considering selling your home, call me anytime! You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com Tuesday, May 15 2012
Market Watch
Every year the National Association of Realtors (NAR) surveys home buyers and sellers. Last year over 80,000 consumers answered this survey. I use the results of this survey to help understand public perception and my company uses the information when planning marketing efforts. The survey is conducted nationally by NAR and broken down by state. There are always some interesting tidbits and I thought I would share some of this year’s survey results in this Market Watch.
First time buyers accounted for 37% of all purchases compared to 50% in the prior year. Only 16% of purchases were of new homes which makes sense since new home construction was at its lowest level since NAR has been tracking that statistic. The most common first step taken by buyers in the home buying process is to look on the internet. 88% of buyers use the internet in the search process. I’m sure that’s why my company has devoted so many resources to FCTuckerEmge.com. The typical buyer spends 12 weeks from the time they first start a search until they sign a contract and physically look at 12 homes during the process.
The typical seller has lived in their home for 9 years prior to selling. For the homes that sell, the median amount of time on the market was 12 weeks, although 35% of homes sold were on the market for 6 months or longer. The take away from this statistic is that homes priced correctly sell quickly while those that are overpriced languish on the market. 85% of sellers and 89% of buyers hired a Realtor for their transaction. 41% of clients were referred to their Realtor by a friend or relative. Besides wanting to give you the highest level of service I can, you can see that referrals are a key component of every Realtor’s business. Please think of me when you hear of someone thinking about buying or selling a home. If you have any questions about this information or want more detail about other aspects of the home buying or selling process email or give me a call. You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com Monday, May 14 2012
Surviving a Deadly Twister, Twice in 65 Years!
WOODWARD, Okla. — On April 9, 1947, Wilma Lake was alone in her apartment on Oak Avenue when a tornado swept through this rural town in the dark of night. She survived — crouching beneath a table — but many of her neighbors did not.
For Ms. Lake, then a 23-year-old office assistant, life went on: she would soon become Mrs. Nelson, marrying Eldon Nelson, who was known as Bud, and raise three children at 3412 Robin Drive. In graceful cursive, the brass knocker on the front door read: The Nelsons.
Early Sunday morning, shortly after midnight, Mrs. Nelson, now 87, was home alone again, on the city’s west side, in the house on Robin Drive, when an alert came over her weather radio warning of a tornado spotted a few miles outside town.
Barefoot and in her pajamas, she stood inside a small closet in the master bedroom, trying to get her son’s dog, a tan-and-white cocker spaniel named Sugar, in with her. Sugar refused, so Mrs. Nelson shut the door.
“It was so fast,” she said. “I hadn’t been in there anytime at all until it was like a bomb went off. I guess it was the roof blowing off.”
As happened 65 years ago, Mrs. Nelson survived, uninjured, even though a piece of wallboard fell on her head. And this time, six of her neighbors died, in the deadliest of a series of tornadoes that left a trail of destruction throughout the central Plains late Saturday and early Sunday.
The tornado that struck Woodward was nowhere near as powerful as the one in the 1947. But for the handful of men and women in this city of 15,000 who survived the earlier tornado, the devastation stirred painful memories.
The great tornado remains part of the lore and history of the place — the mural on The Woodward News building has a swirling twister painted on it — but no one thought anything like that would happen again.
On Monday afternoon, Mrs. Nelson went back to her house for the first time since the tornado struck, injuring more than two dozen people and demolishing 89 homes and 13 businesses as it cut a miles-long path through the city. Oklahoma officials raised the death toll to six from five. Three of the victims were identified on Tuesday as Frank Hobbie, 24, and his two daughters, Faith, 7, and Kelly, 4. Two others who died were Derrin Juul, 41, and his daughter Rose Marie, 10. A 63-year-old man also died in the Texas hospital to which he had been airlifted.
For the most part, 3412 Robin Drive exists in name only. The tornado rendered it a kind of half home: roofless, with caved-in white brick walls and shattered glass. The closet in which Mrs. Nelson took shelter now has the equivalent of a sunroof. The winds were so strong that a shard of a roof shingle pierced a plastic bottle of hand soap next to the closet and stuck there, like a dart.
Around the corner, a 10,000-square-foot store called Carpet Direct was ripped to shreds, with an upturned truck next to the wreckage.
As she surveyed the ruins of the home she shared with her late husband and the rest of her family for 47 years, Mrs. Nelson said she was not sure what it all means — surviving two of the worst nighttime tornadoes in Oklahoma history.
Mrs. Nelson, who turns 88 in July, stands 5-foot-2 and weighs 125 pounds, and her survival seemed to defy logic.
“I think the Lord must have left me here for a purpose,” she said, chuckling.
Relatives and neighbors — even the state insurance commissioner, John D. Doak — went to the house to greet Mrs. Nelson on Monday. As she sat in what remained of her living room, a friend arrived and gave her a hug.
“I’m going to make it,” Mrs. Nelson told her, tears in her eyes. “I’m a toughie. I told them at the hospital I was a tough old coot.”
Amid the destruction, the smallest things survived.
For 28 years, Mrs. Nelson kept a white bowl labeled “Grandma’s Goodies” on top of the refrigerator, with candies for her grandchildren and other children in the neighborhood. After the tornado, there it sat, without a crack in it. The front door remained intact, too, the door knocker unscarred.
Mrs. Nelson said only one thing went through her mind as the roof tore loose. “I was so worried about Sugar, and I just said, ‘Oh, God, take care of Sugar, take care of Sugar,’ ” she said.
After the tornado hit, one of her grandsons, Shane Semmel, 38, was the first relative to arrive at the house. Mrs. Nelson was in an ambulance parked outside. “She wasn’t worried about her house or anything else,” Mr. Semmel said. “She was worried about that dog.”
Mr. Semmel walked inside. Sugar was in the kitchen, covered in insulation. He knelt down and checked her. She was fine. She had survived.
Friday, May 11 2012
There’s no crystal ball economists can use to forecast the future (in fact, their pronouncements are often so vague you’d think they were using a recently-shaken snow globe).
But Evansville housing prospects may be headed for brighter days if we look for guidance from the people who back their words with action: U.S. builders.
The almost startling news came out in the latest release from the Commerce Department: more permits for beginning work on new homes and apartment complexes were requested in March than for any other month in the last three and a half years! This means that somebody – or, better said, a great many somebodies -- expect demand for new housing to go in the right direction.
They expect this to happen at a rate that is more than 30% higher than the same month a year ago, and that’s the kind of jump that should send a message to those (investors, bankers, economists) who rely on those building permit numbers to tell them something about what’s happening in the real world. It could mean that buyers looking to purchase new homes will soon have even more options.
The good news doesn't stop there. Not only have more residential building permits been requested than in recent history, groundbreakings on new residential construction in March 2012 were also more than 10% higher than in the previous year.
The changing market conditions in the Evansville area are another reason the role of your real estate agent is so important. Navigating the real estate landscape can be a daunting task when you go it alone, but homebuyers have no need to do that. My clients count on reliable assistance every step of the way -- from deciding which home is the right fit, to negotiating the best price, and finalizing the purchase. If you’d like to learn more about how the new homes market looks this week, give me a call! You can reach me on my cell phone 812-499-9234 or by email Rolando@RolandoTrentini.com Thursday, May 10 2012
A national survey of more than 500 chief executive officers places Indiana as the best place in the Midwest to do business. Nationally, Indiana has moved into the top five in the annual survey by Chief Executive magazine. The state has jumped 11 spots since 2010. Indiana was ranked as the best place to do business in the Midwest and the fifth best nationwide in a survey of more than 500 chief executives by Chief Executive magazine. This is the third ranking in less than eight months in which the Hoosier State’s business climate has scored a top ten finish nationally. The magazine’s eighth annual “Best & Worst States” survey asks CEOs to evaluate states based on business tax policies, regulation, workforce quality and livability factors. Indiana’s ranking in the survey has moved up eleven places since 2010. "Today’s announcement is the third prestigious ranking Indiana has received in less than eight months from people in the business of economic development," said Dan Hasler, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation. "Chief executives across the nation are taking notice of our skilled workforce, fiscal stability and business-friendly policies and recognize Indiana as one of the most attractive states in the country for business." Indiana’s 5th place ranking makes it the only Midwestern state in the publication’s top five. Among neighboring states, Kentucky ranked 25th, Ohio ranked 35st, Michigan ranked 46th and Illinois ranked 48th. Chief Executive magazine noted in this month’s issue, “North Carolina, Tennessee, Indiana, Virginia, South Carolina, Georgia and Utah held up their position in the top 10, with Indiana moving up a notch to fifth. CEOs indicate that workforce quality is the state’s single greatest strength, and since it became the 23rd right-to-work state last year, the Hoosier State is likely to punch above its weight competitively in the future.” The Chief Executive magazine ranking is the latest in a series of national accolades Indiana’s business climate has garnered. Site Selection magazine rated Indiana's business climate best in the Midwest and sixth nationally, according to a November 2011 survey of national real estate executives and a review of Indiana’s economic development record. Also, Indiana’s business environment recently scored a top five finish nationally in Area Development magazine’s September 2011 top states for doing business survey. Chief Executive magazine is a bi-monthly publication for top management executives published by the Chief Executive Group LLC. Founded in 1977, the Chief Executive Group LLC is headquartered in Greenwich, Conn. The “Best & Worst States,” survey results are available at http://chiefexecutive.net/best-worst-states-for-business-2012. About IEDC The IEDC oversees programs enacted by the General Assembly including tax credits, workforce training grants and public infrastructure assistance. All tax credits are performance-based. Therefore, companies must first invest in Indiana through job creation or capital investment before incentives are paid. A company who does not meet its full projections only receives a percentage of the incentives proportional to its actual investment. For more information about IEDC, visit www.iedc.in.gov.
Wednesday, May 09 2012
Does April find you looking for a home to call your own? In Evansville’s current bargain-rich real estate market, you’ll find that you’re not alone! If it’s been a while since you last house-hunted (or if it’s your first time out), it’s important to go over some basics.
A real estate agent or broker who lists a property is usually working for the seller. Since it takes a buyer to make anything happen, there are also buyer’s agents. Although anyone is free to buy or sell on their own, there are good reasons why most buyers decide to enlist a buyer’s agent to represent their interests exclusively.
A Buyer’s Agent Protects You
Let’s say you stop by a weekend open house, and there it is -- your dream home! The listing agent is very nice and wants to help you to write up an offer to purchase through her. This is called a “dual agency,” and is not necessarily a great idea (some brokerages even forbid it). The problem is that the seller's agent rightly wants to get the highest price for the property because she represents the owner. If I were working with you as your buyer’s agent, my job would be to represent your interests, so an offer I wrote could look quite a bit better from your prospective. That’s why it is prudent to find an Evansville agent to represent you before even starting your search.
Loose Lips Sink Ships
Whenever you are house hunting, be careful of what you say to the seller's agent. Resist the temptation to discuss financial matters or to mention that you are in a rush to buy: either could damage your chances of getting the home you want on terms you want. Always bear in mind that the agent is working for the seller, not for you.
Consider Signing a Contract
As soon as you sign a contract with a local buyer’s agent or broker, you put a real estate professional to work for you. It is a legally binding agreement in writing that obligates the agent to work to get you the best deal possible. You may also sign an exclusive contract with your buyer’s agent, which gives the agent an extra assurance that his or her work is likely to accomplish what you both want -- a deal that puts you in your new home. Worth noting: except in extremely rare cases, you as a buyer should never have to pay a commission. If an agent asks you for a fee upfront, that’s your signal to run the other way! It’s part of the MLS listing agreement that fees and commissions belong on the seller's side.
Finding an experienced Evansville buyer’s agent for your side – one you feel comfortable with, who listens to your needs and who offers expert suggestions and advice – will be well worth the time it takes. But it doesn’t even have to take much time: I’m right here! You can reach me on my cell phone 812-499-9234 or email at Rolando@RolandoTrentini.com
Tuesday, May 08 2012
For those who are just about ready to list their Evansville house for sale this April, several simple yet cost-effective projects can be sure-fire buyer-pleasers. I am often asked to help my clients identify areas in their home that will benefit from improvements. I like to point to some simple changes that materially help a property’s ability to compete with any other house for sale in our area.
Here are three of my favorite inexpensive fixes:
1. Painting walls in pale neutral colors. Freshly painted walls erase years of wear from any room. They send prospective buyers a subtle message: here is a home where your family can create your own memories. Neutral tones are important, too. While you may personally prefer rich or bright colors, potential buyers may not. Beyond ensuring that rooms look as big, bright and airy as possible, you want potential buyers to picture spaces where their furnishings will fit in without redecorating. Pale beige or grey rooms work with furnishings of all colors, and wind up appealing to the greatest number of potential buyers.
2. Clearing clutter. Clear kitchen and bathroom countertops, consign heavy furniture to storage, and stow the kids' toys neatly out of sight. The object is to emphasize the impression of sufficient space. When buyers visit any house for sale, they are most drawn to those where it’s easy to picture all of their belongings fitting in easily – and that takes space.
3. Keeping your cool. You want buyers to be comfortable as they walk through your house for sale, and at the same time want to signal that heating and cooling are not going to be problematic. Have your heating and air conditioning systems serviced so that they are in efficient working order. If you have a working fireplace, have the chimney swept, and light the fire in case we run into an unexpected chilly rainy day during a springtime open house. If the weather cooperates and the sun is shining, open windows and doors to create a nice fresh breeze. But if it’s too hot, be willing to crank up the AC!
Whenever you list a house for sale, it's important that you put yourself in the buyers’ shoes. Ask what are the key factors you would look for, and be sure your home reflects the answers. For any and all other questions you might have about selling your Evansville home, I’m here to help!
You can reach me on my cell phone 812-499-9234 or email Rolando@RolandoTrentini.com
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The Trentini Team
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The Trentini Team is the sole owner of the information collected on this site. Neither The Trentini Team nor the team associates will sell, share, or rent this confidential information to others. Your privacy is the primary issue for The Trentini Team. CONTACT POLICY By submitting personal information such as name, address, phone number, email address and/or additional data, the real estate client/prospect consents that The Trentini Team or their authorized representative may contact client/prospect by phone, U.S. Postal System, or e-mail whether or not client/prospect is participating in a state, federal or other "do not contact" program of any type. Copyright© 2007 The Trentini Team, REALTOR®, All Rights Reserved.
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