How To Lose Money On A Fixer Upper

A fixer upper home seemed like a good investment, but we had little experience. We had bought, fixed and sold a home in Montana for a profit, and completed the project in only a few months. However, we were new to the Tucson area, and didn't quite have a grasp on the home values. In Tucson, two identical houses can be $50,000 apart in price if they are three blocks apart.

Then there was the fact that the styles are different from anything we had in Michigan. They put corrugated steel fences around expensive homes here, and the people talked about how pretty they are! If we were to do a fixer upper, it would be good to have some help figuring not only home values, but also what buyers want.

We went to the Arizona Real Estate Investors Association meeting, and I announced that we had money to invest in a fixer upper home. We were looking for partners. Our names and phone number were written down on the overhead projector along with the others, and about three days later we got a call.

Bill and Diane were nice people. They had an accepted on a house, and looking at the comparison sales they had found, it seemed like a good buy. They had rough estimates of the rehabilitation and remodeling costs, which is what they needed our money for. A third couple was involved, so the expected $75,000 profit would be split three ways. We agreed in principle to the deal, and arranged to meet the other partners at the house after closing.

Fixer Uppers Versus Remodels

Three couples with six opinions - this can be a problem. Why did the beautiful wood floors have to be torn up and replaced with carpet? Why they couldn't at least be carpeted over without the expense of tearing them out? My wife and I thought it a crime to stucco and paint the beautiful brick exterior of the home, but we were assured that buyers here like it that way better. The ceiling in the add-on family room was a bit low, but raising it seemed too expensive and unpredictable.

Plans became new plans, and weeks of stressful anticipation evolved into stressful worrying. Houses in the area were selling for less than we initially thought, that the rehab cost would be more than we thought, and all the other partners expected to do much of the labor, rather than hire it out. Projected profits dropped from $25,000 down to $10,000 each, and we felt there might actually be a loss.

We dropped the deal. Fortunately, the other partners had procrastinated for weeks on our signing of the joint venture agreement. They would find a way to do it without us and split the profit two ways. We learned that this wasn't a fixer-upper in any case - it was a remodel. As I write this, it is more than three months past the projected completion date, and the home still isn't ready to sell. I hope they make a profit, but I am happy to have avoided the months of stress.

Other Fixer Upper Lessons

At another meeting of our investment club, a man told us about a fixer-upper he had bought years earlier, using credit cards for a down payment. He still hadn't finished it, and it looked like he was going to lose a lot of money in the end. He had no plan, which broke rule number one of the list below:

1. Have a clear plan.

2. Make sure everyone involved understands the plan and agrees to it.

3. Know what the home will sell for before you even make an offer.

4. Subtract ALL the costs (purchase price, selling costs, repairs, loans, other holding costs) AND your desired profit from the expected sales price. This gives you the highest price you can safely offer.

Learning what to do is a start, but learn what not to do too. Learn from our mistakes and those of others. That way, you won't lose money on your fixer upper home.

Steve Gillman writes on all real estate topics. Visit his website for: 1. A photo of a beautiful house he and his wife bought for $17,500. 2. A free book on how to save thousands buying your next home. 3. A free real estate investing course. Visit http://www.HousesUnderFiftyThousand.com

Downtown San Diego Real Estate

Downtown San Diego offers a wide range of real estate opportunities because of the expansion that it has experienced in recent years. Evidence to this vibrancy is the construction of over twelve thousand housing units in recent years and hotels, condominiums and shopping centers have replaced old buildings. This real estate boom has been accompanied by various businesses setting up shop in downtown San Diego, all indicators point to further vibrancy that real estate investors, homeowners and buyers can take advantage of for bigger returns.

Neighborhoods and notable sites

There are eight neighborhoods that make up Downtown San Diego; these include Columbia, Core, Cortex Hill, East Village, Gaslamp Quarter, Horton Plaza, Little Italy and Marina. Across these neighborhoods are various sites that have contributed to the vibrancy of the area. One notable site is the Seaport Village shopping center, which boasts of open air eating and specialty shops. Another notable site is the Gaslamp District, which is composed of Victorian style structures that are lined with restaurants, bars, nightclubs, and antique stores. In Horton Plaza, there is the San Diego Zoo and a number of museums, which have made Horton Plaza the most visited neighborhood in Downtown San Diego.

Apart from notable and historical sites, there are also quite number of major hotels in Downtown San Diego like the Marriot Hotel, the Pan Pacific Embassy Suites and the Hyatt Regency. The transportation infrastructure located in Downtown San Diego include train stations, an airport and trolley stations which interconnect San Diego to other areas.

Prices of homes

When of purchasing a house in Downtown San Diego, you can expect to pay as an average of two hundred seventy thousand dollars for smaller houses and as much as three million for high priced large houses. Specific prices of an attached house range from two hundred seventy-nine thousand dollar for a one-bedroom house to three hundred ninety-five thousand dollars for a two-bedroom house. For detached houses, you can expect to pay around seven hundred thousand dollars for a three-bedroom house and one two million dollars for a four-bedroom house. There are currently a number of detached homes and around six hundred condominium units available in downtown San Diego. Given the vibrant real estate environment in Downtown San Diego, it can be expected that players in the real estate business are going to take advantage of the opportunities available there.

San Diego Real Estate provides detailed information on San Diego Real Estate, Buying Real Estate In San Diego, Downtown San Diego Real Estate, San Diego Real Estate Agencies and more. San Diego Real Estate is affiliated with Miami Beach Real Estate.

Residential Real Estate Appraisal

An appraisal is simply an opinion of value. Some appraisals are a professional appraiser's opinion, others are guesses. Still others are based upon the sometimes harsh reality of the marketplace. The most important factors for appraisers are figures of recent real estate sales involving comparable properties. Basically, there are only two opinions that matter.

(1) The list price is a wishful-thinking value, merely a hopeful estimate. It is set by the seller. The sale price is the real value. It is determined by you, the buyer. Of course, the price you finally agree to pay is partially determined by the seller through the negotiation process. But you and only you decide how much you are willing to pay.

The lender's is the second opinion that truly matters. The bank usually employs appraisers, although sometimes it uses third party fee appraisers. A value of the property is determined, and the lender will then make a mortgage loan based on this figure.

If the lender's appraisal comes in lower than your agreed-upon sale price, you may not be able to buy the home. The lender bases its lending decision upon this professional opinion of value. It will only loan a percentage of this figure. Therefore, if you are counting on using the lender's funds in a certain amount to finance the purchase of your home, a low appraisal from the bank can seriously damage your first time home buying efforts.

The lender's opinion of value can be disputed. The appraisal department at a bank will usually welcome previously overlooked comparable sales data (comps) and other factors which might affect their appraisal. Sometimes there were sales in the area of which the appraiser was unaware. You and/or your real estate agent often know about non-MLS sales of which the bank appraiser has no knowledge.

Perhaps you decided to buy this house because the seller spent thousands on structural and mechanical system upgrades. The lender is not to aware of these value-enhancing improvements. When you bring them to the appraiser's attention, you quite possibly will induce the appraisal department to raise the appraisal figure. The critical point to remember about this is: If the lender produces a low appraisal, you can always contest it.

You might hear complaints when the lender's appraisers express a low opinion of value - Why don't they just appraise at sales price? After all, THESE buyers are willing to pay that much. Surely others would, too. Ah, but that's NOT necessarily true. Some buyers (hopefully not you) do agree to pay too much. The lender needs to protect itself from these lovestruck buyers who must have that home. If the bank eventually has to become the owner, by having to foreclose, it must have reasonable expectations of being able to recover all or most of its investment.

When negotiating the purchase of your home, be sure you are always being prepared to walk away from the transaction if the seller is too unreasonable. There are plenty of other homes available. If you do this, the lender's real estate appraisal will almost certainly come in at or above your sales price and thus cause you no problem.

Keep the Golden Rule in mind: The banks have the gold, so they make the rules.

Paul Anderberg
http://www.first-time-home-buying.net

Mr. Anderberg is the author of many helpful articles about home buying. Visit his website to read more. Several others are also available on this site.

Real Estate Investment by Foreign Nationals Uh oh?

So inspiration hit me in Montreal this weekend after some drinks. It wasn't the alcohols effects that caused it (I swear!!!), but the not so wonderful cost.

When I went to school in Burlington VT ('97-'01), my friends would frequent Montreal for numerous reasons. A few that come to mind were the beautiful scenery (a.k.a. strip clubs), the drinking age of 18, and the fact that they could go out to eat, get surf and turf, appetizers, and drinks for $25 American.

Not so anymore..... the same principle definitely effects peoples purchasing decisions in most realms, Real Estate included. I found an interesting article http://travel2.nytimes.com/2005/05/29/realestate/29lizo.html?ex=1154059200&en=399b29e55613ce54&ei=5070 titled Who Needs the Riviera, that focused on a small group of Europeans taking advantage of their strong Euro in the American Real Estate market. The article also indicated that it wasn't necessarily a small group of Europeans settling in the area.

The current exchange rates are not just favoring those with a strong Euro versus the Dollar, however it also appears to be fueling some currency speculation through housing. Another article http://www.myrtlebeachonline.com/mld/myrtlebeachonline/business/15045250.htm South Korean cash flows into U.S. real estate shows a perfect example of the reasoning behind the speculation.

They (wealthy Koreans) are betting that the U.S. dollar will strengthen, causing the value of their U.S. holdings to appreciate when converted into Korean currency, and that even slower home-price appreciation in the U.S. will continue to beat returns in Korea, where high taxes on real-estate profits discourage speculation.

With interest rates on the rise, I think that their guess that the US dollar will strengthen, is a very educated guess.

So is this a good thing or not? Well it depends on who you are.

If you're a homeowner worried about the value of your home in an uncertain market, this should ease some of your stress. Foreign investment can be a great thing for homeowners in a certain area. The increase in demand and foreign money to an area that did not have it prior, will absolutely help increase/sustain property values of other homes around the area.

For those of you still renting waiting for just the right time......If you're going to be in the same area for a few years, and you have good credit, the best time is now.

And for potential investors just waiting around for the bubble to pop and great deals to start popping up from people who overextended themselves, it appears as though you might have some foreign competition on some of those purchases.

Jon Ernest is the Principal Broker of Spotlight Realty. A small, independently owned, full service residential real estate agency in Brookline, Massachusetts.

http://www.SpotlightRE.com
Condos for sale
See this article and other rants and raves on my Cambridge Brookline Boston Real Estate Blog

New Housing and Planning Delivery Grant

As the report came that Ministers have formally begun consultations on a new housing and planning delivery grant (HPDG) in line with the recommendations suggested by the Barker review of housing supply the prices seem to be roaring in Sussex Farmland.

The news came when Farmland in Sussex are being sold by different Land Investment Companies and the government has already made it clear that this funding would be in addition to local infrastructure investment, give local authorities the flexibility to invest in their area and allow them to keep additional council tax receipts for new homes. Sussex Farmland is known for its closeness to nature and old buildings.

Seeing this the prices of the Sussex Farmlands are set to go higher and this leaves the investors with a dilemma of whether to invest in more plots of land, sell it or hold the piece of land so as to gain maximum.

A consultation document just published by the Department for Communities and Local Government (DCLG) said the measure should:

- Strengthen the incentive for local authorities to respond to local housing pressures.

- Support increased housing delivery to meet local needs.

- Encourage local authorities to become very actively involved in the delivery of new housing.

- Return the benefits of growth to the community through new funding streams.

- Incentivise efficient and effective planning procedures.

The government's aim is that the housing incentive element would be awarded to local planning authorities and urban development corporations (UDCs) and paid starting in 2008 when the existing PDG regime is due to end.

The author is a Land Expert based in the UK.

Canada's Beautiful Fraser Valley A Buyers & Sellers Market

So you think the market is hot? Why is that? Many people follow the crowd and go with what the media is promoting. Some of the hard core factors that affect real estate are Interest rates, Taxes, Rent Controls, Economy, Population and much more. Let?s get started. Interest rates in British Columbia has a direct connection between prices in the lower mainland and Fraser Valley area?s. The higher the rates, the lower the prices. The lower the rates, the higher the prices. When the rates are low, more people can afford to buy their first home or an investment property in Abbotsford, Langley or Vancouver. This puts pressure or a greater demand on the Fraser Valley market.

With our municipal and provincial taxes in British Columbia you?d be affected with property values. When your in an area with high municipal property taxes this can be a deterrent to a purchaser. A rise in taxes could cause real estate prices to drop. Provincial taxes, such as a property purchase will limit the number of buyers. These factors would affect the overall amount of real estate activity as well as prices in the Langley, Burnaby, Chilliwack or other Fraser Valley Markets.

Naturally, provincial rent controls and related restrictions could have a limiting effect on how much an investor in real estate can be active. This chain effect limits the number of potential buyers on the market. Rent controls are governed by provincial legislation. Not all provinces have rent control, but any province can introduce them or modify their existing legislation at ANY TIME. If your curious about your rental caps simply go to any search engine and type in ?landlord tenant law in British Columbia?. You will see the criteria for increasing rents in your Fraser Valley area.

The confidence in the economy is an important factor in stimulating home buyers and investor activity in the Fraser Valley. If the mood is positive then more market activity will occur in Langley, Richmond or wherever you live in the lower mainland. Conversely, if the economy is stagnant, the opposite will occur resulting in a decreased number of home buyers. Luckily the Fraser Valley has opportunities that attract immigrants from outside the country and other provinces. This increase demand increases the popularity of prices.

With lower vacancy levels in the area, this could stimulate a first time home buyer to buy a home. Also, renters who can't find a place to rent may borrow from relatives or find other creative ways to enable them to purchase a home rather then rent a home in the Fraser Valley. Our location with trees, streams mountains and fresh air attracts people of all places. The public perception of a certain geographic location or type of residential property or building affects the prices. Now that you are aware of many factors that effect Real Estate in general, is it a good investment? That is for you to decide!

Shane Toews is a Licenced Realtor who helps others to educate themselves on current real estate issues. He also provides assistance on how to locate quality homes, apartments or vacation rentals in Canada's Fraser Valley area. Visit his website RentFraserValley.com for more information on Canada's Fraser Valley Real Estate Market

Get Ready to Shop for Foreclosures

Decent and value-for-money property is on top of everyone's priority. May it be out of sheer necessity (in the case of newlyweds) or as an investment or both, a house remains to be one significant and indispensable property. Those who are planning to purchase the proverbial dream house have several options other than buying the first property offered to them. If buyers are not challenged with a strict budget, then they can splurge by having their houses custom-made or by scouting for the house of their fancy in real estate magazines or websites. To be honest, there's no thrill in shopping for a house if the buyers have more than enough money to buy it. Indeed, it is much more exciting to look for a house if there's a certain budget. It's very much like shopping in Saks Fifth Avenue and flea markets. Shopping in flea markets packs much adventure and surprise because you're in for the thrill of buying something of great worth for a dirt-cheap price. The same goes with buying foreclosures property. Scouting for good foreclosures houses or buildings entails patience and endurance, but in the end, it's all worth it.

Experts in the field of home buying advise consumers to explore the possibilities of purchasing foreclosures. This is the general term for properties, which are used as payment assurance for debt or mortgage and given up by the original owners as payment for the lender. It is also possible that the owners failed to pay the mortgage installment set by the lender. The latter may be an individual, bank, or cooperative. After the mortgaged property is foreclosed, the lender often declares that the property's on sale by publishing it on dailies or public newsletters. Buyers should have a nose for some great properties at stake. The beauty of buying foreclosed properties is that it is usually much cheaper than brand new ones or those sold by real estate agents.

Once a potential buyer spots a foreclosures property, he should do his assignment immediately since there's a big chance others are also interested in that same structure (especially if it's cheap and in good condition). The buyer should conduct research and ocular inspection of the structure to personally find out if it needs minor refurbishing or major renovation. It is also wise to check the going rates for real property in the specific area. This gives the buyer an idea if the structure is really sold for a lower price or not. While a foreclosures property may seem like a good buy at first, it should be given a benefit of the doubt. Buyers should do the necessary legwork to ensure he is really purchasing a gem.

For more valuable information on Foreclosures, please visit http://www.miamiforeclosures.com

In Commercial Real Estate Always Get an MAI Certified Appraiser

The appraiser that you hire for your commercial investments before you buy can have a great impact on the amount of money you spend and your chances of getting funding from a lender. Most lenders will not accept just any appraiser. If you get an appraisal with an appraiser that a lender does not accept, you have just wasted your time and money, and you are no closer to getting the property you want.

In the world of commercial real estate, not all appraisers are considered equal. It takes a certain expertise and knowledge to correctly appraise commercial property, and not just anybody is qualified. There are two types of appraisers, a fee appraiser and a staff appraiser. A fee appraiser is generally available to the public for hire, and a staff appraiser works for a specific lender or lending firm.

Let's look at what makes a qualified appraiser and how they can help you purchase the property you want with as little hassle as possible.

It is common practice for a lender to appoint the appraiser that is to appraise the property in question. This practice is in place because there are dishonest buyers who work with certain appraisers that will inflate the property's true value. This, in turn, allows the buyer to borrow more money than what a lender would normally allow, thus increasing the lender's risk.

Inflating a property's true market value is surprisingly easy because appraisals are simply guesstimates of a property's true market value. They are interpretations based on the surrounding property and selected criteria. An appraisal can be ?fixed? according to a person's interest. That is why the two parties must not have any prior dealings or common interest in the subject property.

A very widely used and accepted type of appraiser is one that is certified by the American Institute of Real Estate Appraisers. They are members, making them M.A.I. designated. Most lenders will require that you use only an MAI appraiser. These MAI appraisers have gone through intense study, years of practice, and have had to perform under tight supervision while appraising many different properties.

Most MAI appraisers will not conspire with a borrower because there is too much to lose and too much invested in their practice. For this reason, most lenders will accept MAI appraisals regardless of whether or not they know the appraiser personally. For the most part, lenders will have trusted appraisers that they work with all the time, and will require that you use only their appraisers. Be sure to get clarification on this issue before you hire an You can trust MAI appraisers to perform an accurate evaluation of your prospect property. With this appraisal, you will be able to get the proper amount of money loaned on the property and not come out short.

It is always a good idea to research your appraiser and view some of the work that he or she has done in the past. The appraiser and the appraisals should be of the utmost professional quality because so much is riding on their appraisal. Even if it costs you more money, always use an MAI appraiser to avoid problems with the lender and unnecessary expenditures.

MAI appraisers are crucial to your commercial real estate investing endeavors, and can carry quite an impact on the money that can be loaned to you. To get the money you expect from a lender, use a MAI appraiser every time!

Tony Seruga, Yolanda Seruga and Yolanda Bishop of http://www.maverickrei.com specialize in commercial and investment real estate. As of May, 2006, they and their partners are managing over $600 million dollars worth of new projects.

How To Negotiate Real Estate Commissions When Selling A House &quotAs Is&quot

A real estate commission is a specified charge, which is paid to the agent or the broker hired for the purpose of selling a house. To avoid being duped by paying unreasonable amounts of money as commission, it is advisable for sellers to study the market themselves and get to know the general range of commission rates first. In reality, the commission rates are never fixed and most of the states forbid the Real Estate Commissions from doing so. This means that the agents can quote any price they like as long as the customers are willing to comply with the demands. However, this does not imply that the customers are compelled to pay the stated rates; they have the option of negotiating as much as their negotiation skills allow them to. The competition factor between agents also helps keep the commission rates from soaring too high.

The rules of estate commissions

Usually the Realty companies set the minimum and maximum rates of commission and leave the finalization of the rate to the brokers. The agents however, are not allowed to discuss their company commission rates with agents of different realty companies. No realty company is allowed to advertise its rates to attract customers. The commission to be paid to the seller's agent is decided when the listing contract is being drawn and the commission payable to the buyer's agent is determined when the contract for the sale of the estate is being written. Usually, the total commission is divided equally between both the agents.

Tips to negotiate

Here are certain pointers for you to keep in mind when you try and negotiate the commission payable to you real estate agent:

Study and calculate the value of your home and draw an estimate of how much would be the ideal commission charge for that value.

Enquire about other homes in your area that have been put up on sale and find out how much those owners are paying their agents.

Keep a track on the market trends, whether it is favoring the sellers or the buyers. In case it is supporting the sellers, then the negotiation power lies more with the sellers.

Make a precise budget before negotiating the commission rate.

Before hiring an agent, make a background check to see if he is adequately qualified to carry out the job. Carefully observing the agents' weaknesses and use them to your benefit.

Discuss payment options other than straight commissions such as a flat fee or a dual fee. The dual fee states that a certain percentage will be paid if the house is sold for more than a specified rate.

Alternatives

In the situation where you do not manage to find an appropriate agent or broker, you can always sign yourself with a real estate firm that charges a flat rate instead of any percentage. Moreover, if your house is in a good condition and well maintained, you will not only pay a nominal fee for the sale procedure but also get a good value for your house.

Caution

It is advisable that individuals wanting to sell their house do not fall for tempting offers made by certain agents who promise to sell the house at a higher price, and in turn, charge a higher commission. The customers should also be wary of the agent who says that the value of the house is very low and would require a lot of effort and time to sell. These are just tactics to extract as much money as possible from the client.

We will buy your house As Is Now! Forgot For Sale By Owner. Contact us at http://www.asisnow.com/

Florida For Sale By Owner
Phone 1800.As Is Now, 1800.274.7669
Email webmaster@asisnow.com

Thinking of Buying a Condo Hotel? Here Are 20 Things You Need to Know!

1. What is a condo hotel or condotel?
Think of a condo hotel (also sometimes called a condotel or hotel condo) as buying a condominium, although one that is part of a four-star caliber hotel. Therefore, as an owner, when you are on vacation, you?ll get the benefit of more four-star services and amenities than you'd get in a typical condominium.

2. What types of services and amenities are found in condo hotels?
If you can imagine the niceties you?d find in an upscale hotel, then you can picture a condo hotel. Among the features are often resort-style pools, full-service spas, state-of-the-art fitness centers, fine dining restaurants, concierge services and room service.

In some locations, like Las Vegas, you?ll find condo hotels with their own casinos, retail areas, and entertainment venues. In places like Orlando, you?ll find condo hotels with their own water parks and convention facilities.

3. What is the difference between a condo hotel and a traditional condominium?
The big difference between a hotel and a condo hotel is that a hotel typically has one owner, either individual or corporate, but a condo hotel is sold off unit by unit. Therefore, a 300-room condo hotel could have as many as 300 unit owners.

4. Is it evident to hotel guests whether they?re staying in a condo hotel or a traditional hotel?
A hotel guest will likely never know that the hotel has multiple owners because the property is operated just like a traditional hotel and often under the management of a well-known hotel company like Hilton, Hyatt, Starwood, Trump or W. Also, each of the individual condo hotel units will look identical in design and d?cor to every other, just as they would in a traditional hotel.

5. Who typically buys condo hotels?
They?re primarily sold to people who want a vacation home but do not want to deal with the hassles typically associated with second home ownership such as maintaining the property or finding renters in the off season.

6. What is the demographic of the typical condo hotel buyer?
The spectrum of condo hotel buyers is pretty broad. There are families that want a second home in a vacation destination. There are baby boomers who are at or nearing retirement and want somewhere they can ?winter.? There are also plenty of investors who purchase a condo hotel unit with little intention of ever using it; they?re in it for the potential appreciation of the real estate.

7. Can you live in a condo hotel?
Condo hotels are not typically offered as primary residences. In fact, many of them limit the unit owner's usage of the condo hotel unit (typically 30-60 days per year) because the unit is expected and needed in the hotel's nightly rental program where it can be offered to guests and generate revenue.

8. Who gets the money when your condo hotel is rented out?
The hotel management company splits the rental revenue with the individual condo hotel owner. While the exact percentages vary from property to property, the typical rental split is in the 50%-50% range.

9. Who finds hotel guests and then cleans and maintains the condo hotel units?
The hotel management company markets the property and books hotel guests. It also maintains the unit and ensures the smooth operation of all of the hotel?s services and amenities.

10. What are the advantages / disadvantages of purchasing a condotel over purchasing typical rental properties?
Advantages include:
? Hassle-free ownership; no landlord issues
? Rental revenue to offset some or maybe all ownership expenses
? A fantastic vacation home available for use whenever you want
? A real estate investment at a time when other investments may seem less attractive
? Strong likelihood of appreciation
? Pride of ownership --I own a piece of a Trump

Disadvantages include:
? Annual cash flow could be equal to or less than annual ownership costs
? Pets are usually not welcome.
? An owner?s condo hotel unit may be rented when the owner wants to it, so advance reservations are required to guarantee availability.
? The condo hotel unit is subject to the same dips in the market that affect all hotels in the competitive market set: hurricanes, terrorist threats, warm winters up north, price of gas, etc., all of which can affect a unit's occupancy rate and the amount of revenue it generates.

11. Are condo hotel units difficult to finance?
Not at all, but they do take 20% down typically, whereas condos can be purchased with less cash down. It's also important to make sure you use a mortgage broker who has had success in getting condo hotel financing deals done. Many banks still do not do them, but more and more are getting involved as condo hotels become more widely available.

12. How long have condo hotels been around and where are they located?
Condo hotels have been around for several decades, but the huge surge of four-star and five-star condo hotels that have been making their way across the country, started around year 2000 in the Miami area. The Miami-Fort Lauderdale area still has the most condo hotels, but areas like Orlando and Las Vegas are developing condo hotel properties at an even faster rate and will likely surpass South Florida soon. Other up-and-coming areas are places like the Bahamas, Panama, Dominican Republic, Mexico, Canada and Dubai.

13. How much do condo hotel units cost?
That?s like asking how much a car costs. There are different quality condo hotels. Some require greater amounts of money than others, obviously.

There are inexpensive condo hotels out there for as little as $100,000. These are typically found in properties that have converted their use from an existing hotel. They are hotel room-sized, lack kitchen facilities, luxury franchises, and other first-class amenities.

Then there are the four-star or greater properties that may start in the $300,000 to $400,000 range, but can go all the way up to $800,000 just for a studio unit. One- and two-bedroom units cost substantially more than a studio. Of course, the studios do come fully furnished and finished, and will be significantly larger in size than a typical hotel room, and may attract guests because of its name like St. Regis, Ritz or W.

14. What are typical maintenance costs?
On average about $1.00 to $1.50 per sq. ft., but the range can exceed $2.00 sq. ft. in the most luxurious properties.

15. Do you buy condo hotel units after they have been built, or can you purchase condo hotels in pre-construction?
Unless you are in a hurry to get started vacationing or you need to complete a 1031 exchange, it's best to buy condo hotels in pre-construction as early as possible. That?s when prices are lowest and unit selection is greatest. You will likely wait two years or longer before closing on and taking possession of your condo hotel unit, but you will have locked in the price and will get the benefit of maximum appreciation.

16. Is there anything else investors should want to know about condotels?
There is more to buying this type of real estate than the old phrase, location, location, location. While most condo hotels are located in desirable resort and business area locations, what is most important is a good franchise with a strong reservation system.

Also, do not be fooled by an aggressive rental split. One way or the other, the developer of the property will have to staff, maintain and operate the hotel and its services like the restaurants, bars, spas and pools from his share of the proceeds. If he's giving you a very favorable share of the rental, he's also more likely to be charging you a higher monthly maintenance fee. Of course, this goes both ways. If the maintenance split that is offered is closer to 50-50, then your maintenance should be more reasonable too.

17. Any suggestions to investors in choosing which condo hotel to buy?
Get good advice. That means you don?t want to rely only on the pitch provided by an onsite salesperson at a condo hotel. You want to talk with a broker who specializes in condo hotels and who knows and understands the entire condo hotel market, not just the facts pertaining to a single property. He or she will listen to your wants and needs and then offer recommendations as to which properties best match your requirements. You?ll have an opportunity to comparison shop and consider the pros and cons of each available property.

A good broker can be the difference between your buying a condo hotel that will be problematic and not live up to your expectations or one that will provide you with years of great vacations, good annual revenue and a substantial profit when you sell.

18. Does it cost more to use a real estate broker to purchase a condo hotel than buying a unit on one?s own?
No. With new condo hotel properties, the prices are always set by the developer and are exactly the same whether you buy directly from an onsite salesperson at the property or using a broker.

The broker?s commission is always paid by the developer and is already built into the price regardless of whether an outside broker participates in the sale or not. Since a broker?s representation is free to buyers, it does make sense to enlist their aid and get the benefit of their advice before making a purchase.

19. How can prospective buyers find a good condo hotel broker?
Ask friends for broker recommendations or search online for ?condo hotel broker.? Visit condo hotel broker websites and see if the information they provide seems comprehensive and unbiased. If their website seems to focus on selling homes or office space, and the condo hotel information appears to be an afterthought, steer clear. Your best bet is to work with a condo hotel broker who specializes.

20. How can buyers learn about new condo hotel properties coming on the market?
Condo hotel brokers can be good information sources as they often learn about properties prior to their release to the general public. Another option is for them to subscribe to a condo hotel newsletter such as the one we publish called Condo Hotel Property Alert. We offer it for free on our website www.CondoHotelCenter.com and it features a different condo hotel property coming on the market each edition.

Joel Greene is president of Condo Hotel Center which specializes in the sale of condo hotels around the U.S. and the world. His detailed website contains condo hotel property listings, photos and detailed information. Visit http://www.CondoHotelCenter.com and http://www.CondoHotelsDubai.com. Be sure to sign up for his Condo Hotel Property Alert newsletter to be notified when new condo hotels come on the market.

Sarasota Real Estate Housing Market

Compared to the same 3 month period (March to May) from last year, Sarsota real estate sales are down. For this period, Sarasota real estate area had 1,393 sold properties last year compared to only 865 this year. Last year, the same period had an average of only 2 months. However, for May 2006 the inventory skyrocketed to an average of 13.8 months. This is definitely indicative of Sarasota real estate becoming a buyer?s market. On the other hand, Sarasota real estate prices increased, up from an average of $240 per square foot to an average of $295 per square foot in May of 2006. Today in Sarasota the average price of houses for sale in May 2006 was $762,000 while average price sold was only $562,000. The market has indeed decelerated from last year, albeit this is the nature of equilibration towards a normal and stable market. With lots of properties for sale on the market, sellers really do need to price their property right in order to sell it. The rates are still fine, rising up slightly to 6.75% for 30 years fixed, and Sarasota has much to offer in order to attract buyers. Properties for sale will tend to float on the market longer than it would have for the last couple of years since buyers know that they have a large pool of selection to choose from. The number of buyers will also continue to gradually drop this summer as the market begins to take the command again. This point in time is certainly the time to buy. Prospective clients who take the time to fly down to Florida in the summer are more serious buyers since they have done the research and know what they are looking for.

In my opinion what the data is showing us is the reality that last year's price increase was strictly due to a lack of inventory. This is the law of supply and demand at work. With overflowing supply of resale and new construction homes, one can expect that the price of homes will continue spiral down. Sarasota real estate area is very conducive to live in and there are several more years in the prediction of experts regarding the influx of baby boomers towards this area. Furthermore, many new jobs have been opening, which presents an excellent opportunity for professionals and entrepreneurs alike who are contemplating on moving and buying a home in Florida.

Overall, Sarasota real estate property values are stabilizing. In the heat of the summer, this is going to be a more normal market. Now is an opportune time to buy your dream house in paradise. Prime time season is around the corner and properties that have not gone under contract by now have adjusted their prices. Sellers are getting motivated and are still moving on. There are some great deals out there especially on condos under $300,000 that prospective buyers can purchase in a golfing community or close to the coast.

Dranreb Earl Juanico

Sarasota Real Estate

Dranreb Earl Juanico - http://siestakeyrealestate.com

Save Money and Move Yourself

Have you decided to save some money on movers and move your furniture yourself. If so you have taken on quite a job. Moving can be difficult and tiring but this article will give you some tips to help make your move go smoothly.

First off you need to make sure that you reserve a moving truck well before your move. Rental companies can and do sell out of truck rentals. Order your truck at least 3 weeks in advance. Longer if your move is at the end of the month when most trucks are rented. If you want to save some hassle you can rent one during the middle of the week. They are easier to get during the week and the rental store will not be as busy so you will get in and out faster.

Next be sure to pack a few days before the actual move. There is nothing worse than having to pack the day of the move or the night before it. Moving will go much easier if all you have to do is load on the day of the move. Be sure to mark the boxes accurately so that they get put into the right room. Pack a separate box of things that you will need immediately like a change of clothes and toiletries.

Lastly when you load the truck fill up the granny's attic (if so equipped) with boxes first. Then load the heavier items towards the front of the truck. If possible load the items that you will want immediately last.

After you load the truck and are preparing to leave use caution. A loaded moving truck does not handle well. Give yourself extra time to stop and turn at a slower speed. Good luck and happy moving.

Find a full service moving company at the authors website. Information on moving services, moving and movers.

Miami Beach Real Estate

Real estate in Miami has seen skyrocketing prices in recent years. Thanks to this popularity, Miami is a haven for real estate investors from across the US, Latin America and Europe.

If you plan to invest in commercial real estate, you can choose income-producing condos, hotels, restaurants, warehouses and other properties, like retail spaces or land lots that are for sale. Recent real estate properties that are popular include condos, houses, lofts and new pre-construction projects. Whatever be the property, real estate in Miami Beach today roughly ranges from anything between $75,000 to over $15 million.

Real estate, however, is a tricky area. While deciding to invest in real estate, you are likely to be confused from the several options available, and you may not be able to make a sound investing decision. It is therefore recommended that you seek the services of real estate agents in Miami for finding a good property within the limits of your budget. While selecting your real estate, take time to research the several real estate agents and services offered. You can also talk to some of your friends and find the best agents who have a long, credible history. You can also seek the services of agents if you plan to sell your property in Miami. Some realtors will offer a country-wide exposure to your property so that you get the best price.

Buying or selling real estate is a nerve-shattering business, largely because of fluctuations in prices. There are times when individuals do not get a fair deal because they tend to do less research. If you want to get the best deal on real estate, you will need to analyze your budget and priorities more strategically. One thing to do is prepare a list of the features that you are looking for. Once the list is ready, all you have to do is scout places in search of your ?dream investment.?

Miami Beach provides detailed information on Miami Beach, Miami Beach Vacations, Miami Beach Real Estate, Miammi Beach Condos and more. Miami Beach is affiliated with Discount Miami Hotels.

Attention Real Estate Developers What Is In Your Business Plan?

Do you need a real estate development business plan? You will if you want to obtain financing for your project. The first thing any lender or private investor will want to see is your real estate development business plan. This plan is specific for development of real estate. Your business plan will tell your story in an organized and concise manner. It will provide all of the critical information needed to judge your project. A well-written and professional looking business plan is crucial for your success in obtaining financing.

Most real estate developers make the mistake of not creating a good business plan or even getting professional assistance in developing their business plan. They will use the excuse of not having enough time or they can?t find the data. Don?t let that be your excuse! All a real estate development business plan really is, is the answers to a bunch of questions! You will learn what to include in your real estate development business plan.

Executive Summary

The Executive Summary should provide a complete overview of your project & company. This will include:

• Brief description of the overall project. For example, develop a 4 star, 250 room luxury hotel in downtown St. Louis, Missouri.
• Brief overview of the company ? Is it a corporation, LLC, etc? Who are the owners and/or board members? Brief company history & experience level.
• Brief summary of the market & demand.How large is the market and at what stage of development is the market currently in?
• Brief summary of the competition and what separates you from them?
• Brief description of key Management team members.
• Key financials - total acquisition & construction costs, nature & use of funds, future revenue & expenses.

The Executive Summary should be brief and an outline to your overall business plan. Now lets take a look at the specifics in the real estate development business plan.

The Company

This part of the business plan should give full details about how and when the company was formed. It should indicate the legal structure of the company, as well as where it is licensed. A key piece of information about the company is the company owners. Name all of the principals and their percentage of ownership.

Project Description

This section of the plan is where you explain your project in detail. Remember, you are selling your project so that you can get the funding you need! Is this a hotel development project? Is this a luxury, single-family home community project? Is this a multi-tenant shopping center? Give all the details about the project. For instance, lets continue with our hotel example. You will want to name the other amenities that will be located at the hotel, such as swimming pool, tennis courts, the number of conference rooms, etc. How many of the rooms will be suites? What other features & benefits will your project have?

You will also want to address where you currently are in the project. Has the land been purchased or optioned? Where are you in the permitting process? Has the architecture plans been drawn? How much time & capital has been spent on your project to date?

The Market

In this section you will provide the market type & size, current & potential growth rate, and relative stage of development of the area. You should also address why you chose this particular area. You should discuss any forthcoming changes in the market, government regulations, economy, and short-term & long-term trends. If you have performed any feasibility studies, you will want to include it as well as the source of the feasibility study.

The Marketing Plan

The main objective of any developer is to sell the homes, the stores or the hotel. And this can only be accomplished with a well thought out marketing plan. Who will handle your sales efforts? Will they be in-house or out-sourced? How will the pricing/leasing/room rate be determined? Will there be any brand or strategic partnerships involved? What is your marketing budget (in a table format).

The Competition

Any lender or investor in your project will want to feel comfortable that you know who your major competitors are. They will want to know that you have done a thorough competitive analysis. Name and describe all key competitors. What are their strengths & weaknesses? How will your project compare? What are your projects strengths & weaknesses?

The Management Team

In this section, you will want to go into further detail about the principals involved. You will need to highlight the team?s relevant experience and previous successful projects?

Well what if this is your first project?

Then you want to make sure that you have an excellent support team in place. These team members should have the experience that you are lacking (team members doesn?t necessarily mean company ownership). These team members can be legal, accounting, construction, architecture, etc. So for this section of the real estate development business plan, you will want to include:

• Resumes/biographies on all principals & management team members
• Organizational chart
• Board of Directors

The Financials

Since the primary objective of your business plan is to obtain financing, you will want to address what type of financing you are seeking and how much capital is needed. You will want to state how much money you have on hand (and where did you get it from) and how much money you have spent to date.

Everything that you have put into your real estate development business plan up to now should support your financial assumptions and projections. You will want to include a statement that shows a breakdown of construction and acquisition costs. You will want to include an Income statement that will outline income and expenses for the next five years after construction. It should follow GAAP (Generally Accepted Accounting Principles) and contain specific revenue & expense categories. You will want to include a Balance Sheet and Cash Flow Analysis.

Now that you know what to include in your real estate development business plan, make sure that your business plan presents itself in a professional manner.

• Use a table of contents, with numbered pages.
• Make sure that the writing style is simple and conversational.
• Don?t use long or complex sentences.
• Paragraphs should be short & simple.
• Use graphics & pictures but don?t get carried away.
• Use charts & tables to back up your data.
• State all sources of your data and studies.
• Proofread your real estate development business plan for grammatical and spelling errors.
• Have someone else proofread it for you.
• If you have the resources, hire a professional business plan writer.

Visit http://www.all-about-commercial-mortgages.com to learn more about commercial properties and commercial financing. Educate yourself before buying that commercial property!

Patti Porter is a Commercial Mortgage Broker specializing in income producing properties.

Preparing a House to Sell

After you have decided to sell your house, you must prepare the house accordingly. The look of your house will be the first impression the buyer gets. So you need to prepare your house very carefully, to give the right message.

The first thing that the prospective buyer sees is the exteriors. Make any necessary repairs. If you have a lawn or garden, make it attractive. Check that the sidewalks and driveways are free of weeds and clutter. Make enough room to walk comfortably on steps, balconies, patios, etc. Clear away any unnecessary furniture and articles. Also, all pathways and rooms should have sufficient lighting. Ensure that all doors, windows and cupboards are openable. Try to remove clutter from the basement and garage. Have the house professionally cleaned, especially carpets and draperies. Any pending repairs and painting should be undertaken before listing the house for sale. Bathroom and kitchen fixtures should be in proper working condition. All pet areas and bathrooms should be cleaned thoroughly. Check that there are no clogged drains or rain gutters causing seepage and dampness. Spray an insecticide to get rid of bugs. And if you are still not sure how to prepare the house for selling, you can hire a professional inspector who can recommend what changes and repairs you need to do before selling your house. It will give you a third-party perspective of improvements required.

Additionally, it is a good idea to remove your personal imprints from the rooms. If you have too many family photos hung around, it can put the buyer off. And if you have a list of all the special features of your house and location, it can give a good impression to the buyer. Also list what items and accessories you are selling along with the house. Keep all your old bills handy for inspection. And before any prospective viewer comes, try to air the house properly so that any smells can be eliminated. You could use air fresheners or even coffee aroma for a more subtle effect. And try to keep your pets in control during the visit. Last but not least, try to disconnect your emotions from the house. Eventually it can turn out be in your favor, since you will have to part with the property.

Sell House provides detailed information on Sell House, Sell Your House Fast, Sell House By Owner, Sell Your House Online and more. Sell House is affiliated with Real Estate Note Brokers.

Nicaragua and Costa Rica Find a New War to Fight

There is no doubt that real estate in Nicaragua is vastly cheaper than its southern neighbour Costa Rica, and the recent upturn in interest in Nicaragua has led potential investors to question both markets, and rightly so. However, when buying property in any country, whatever its economic stance, one would be wise not to rush too quickly into handing over hard earned cash before weighing up cost versus location.

In Nicaragua, you can buy a beachfront property of approximately 3000 sq. ft., with 4 bedrooms and 4 bathrooms just under US$300k. In comparison, a 4 bedroom, 4 bathroom beachfront property on the Pacific Coast in Costa Rica will set you back around US$389k. Sizeable difference you might agree. But look at what you are paying for ? it could prove to be a price difference worth investing in.

Costa Rica and Nicaragua are polar opposites in their projected images to the rest of the world. Nicaragua has long suffered a negative image, not helped by the fact that it is persistently compared to its wealthier neighbour.

Nicaragua continues to be one of the poorest countries in the Western Hemisphere. Its employment issues are rife, and its external debt amounts to almost $3.2 billion. Nicaragua has one of the world?s most irregular income distribution and crime is widespread.

In comparison, Costa Rica?s economy is positive. According to a recent press release by the International Monetary Fund; ?Over the past 18 months, Costa Rica's economic performance has been strong. Despite the oil price shock, growth has been higher than expected, supported by sound economic policies, strong external demand, and favorable conditions in international capital markets.? However, despite this good news, inflation remains high at 12 percent. It went on to say that the country?s main challenge is to promote steady and economic growth, coupled with a significant reduction in inflation. The authorities said that a ?multi-pronged approach? was necessary to achieve this goal.

In other news this month, Hewlett-Packard (HP) has announced its plans to expand its offices in San Jose, the capital. HP currently employs almost 3,500 people and aims to practically double this figure by 2007. This news certainly indicates that the current positive economic climate in Costa Rica is set to continue.

There is certainly a wealth of information, statistics and percentages available to help you make your decision but this tiresome process will ultimately lead you to one burning question, who really wins the debate, Nicaragua or Costa Rica? The real answer to that question is neither.

Personal choice is the key to figuring out which country is more suitable for your needs and budget. Nevertheless, keep in mind, while you shop for your Central American dream home, that there is no such thing as a ?bargain? and that you pay for what you get; location, location, location.

http://dominicalrealty.com

Catherine Cunningham is a copywriter based in Costa Rica. She works full time for a web design company and writes articles and site content for clients. You can contact her on catherine@unidad22.com