Locks and Keys

Preston Sandlin asked:


There are multiple strategies for making money in real estate. You can do the no money down thing, flipping, buy and hold, and for a few lucky ones sell CD’s and tapes on how to make money in Real Estate. I haven’t made enough money in real estate to make an infomercial or interview people on the back of my yacht about how they used my strategy. I have accidentally found a strategy that has increased my net worth exponentially on every single property I have bought.

My name is Preston Sandlin. I am a Home Inspector here in Charlotte NC. www.homeinspectioncarolina.com I have had the opportunity to meet several real estate investors. Real estate investors are a funny breed. I know several who have a net worth in the millions, but valet parking folks would laugh at their older vehicles if they went some place fancy. They all have one thing in common, though. They are willing to take calculated risks and their checks always clear. I came of age during a recession and the dot.com bust. I saw a lot of people lose their shirts in the stock market. I decided I liked real estate better than stocks. If a stock goes South there is nothing you can do about it. You can always do something to improve a property. I decided I wanted to be a real estate investor. Besides, valets already laughed at my car. I figure I must have been halfway there already.

After picking the brains of several real estate investors that I did home inspections for, I took all that knowledge brought it together and proceeded to make every investing mistake one could make. I plan to write another article on real estate investment mistakes. In fact I probably could make tapes and CD’s on what not to do. Despite my unique expertise I did accidentally come up with a working strategy. Even a broken clock is right twice a day. I call it “Locked and loaded”

I wanted to purchase this property on 2810 Barringer Rd. in Charlotte, NC. It was distressed and undervalued. I did my home inspection on it and calculated what it would take to get the house up to par. I would still have a lot of equity. I planned to rent it although one could sell or “flip” and make a decent profit. The house was a foreclosure and was for sale at 41K. I offered 39.5 and got the contract accepted. I then proceeded to obtain a loan the traditional way. I got a mortgage broker working on my “traditional” loan. He sent the appraiser out there and then the bad news. The furnace was busted. I knew this already and planned to put a brand new gas pack on it. Here was the problem. I had to have the appraisal for the loan. They cannot appraise a house without a working furnace. One other thing that I need to mention is that in my contract if I didn’t close by this certain date it would cost me a $100 a day. Now I find out I can’t get the loan! Rock meet hard place and I’m in the middle. I contemplated putting the gas pack on the house (that I don’t yet own) just so it would appraise. Suppose I do this and something falls through on the deal. The bank (the house was owned by a bank) gets a brand new gas pack and I am out four grand. I told you I could sell CD’s on what not to do.

Well the contract deadline loomed and I was stuck. I had quite a bit of equity in my personal home and I decided to get an equity line on that. I took that equity line and wrote a check for the house. I was ticked. I planned to eventually get a “traditional loan” on the house. I would have to actually close on the same house twice incurring several of the same fees twice. You know it looked so easy when Carlton Sheets was interviewing those people under the palm trees.

Well I purchased the house with my equity line on time to avoid the $100 dollars a day penalty. I fixed it up. I put a new gas pack on it. I fixed the bathroom floor and the living room ceiling. I also repainted and put in new carpet. I reseeded the lawn and added some bushes. I put about 7k in it. I go to get the “traditional loan” on it now. They send the appraiser out there and he comes back with a value of 78k. Wow! I paid 39.5k, put in 7k, and I have essentially two closing costs but I now have an asset worth 78k. I can now get that “traditional loan” and then pay back my equity line. I am locked and loaded and ready to do it again. Here’s the thing. Most commercial or investment loans will only loan you 75-80% of the value of the property. You can’t keep buying more and more the traditional way because you have to use 20-25% of your own money every time you buy a house. Unless you have unlimited resources you will have to slow down at some point. I accidentally found a way around this. This is my formula. Buy a slightly distressed property with home equity. Fix it up and get it reappraised and get a loan on the new value. If you bought it right, even a 75-80% loan-to-value should be more than enough to pay back your home equity. You are locked and loaded and ready to go again.

I don’t profess to know it all. I do own 11 rentals and plan to buy many more. There are several other real estate investment strategies out there that work. This one works for me and maybe it will work for you too. I have yet to make enough to sit on the back of my yacht but I probably could buy a used pontoon boat though. Maybe I should make some tapes and CD’s on what not to do. To find out more or contact Preston Sandlin, go to



BOBBIE

Steve Locke asked:


This is the definitive guide to buying a Costa Blanca property. If you are considering investing in property on the Costa Blanca you will need to know exactly what to do and what not to do. This guide will help you every step of the way.

1. Setting Your Budget – A very important decision when buying a Costa Blanca property is deciding on your budget. This will of course be determined by what spare cash you have available and when you reach a final decision on your budget you should stand firm and not be swayed from it.

2. Choosing a Location - Picking the ideal area for your Costa Blanca property is another important decision you will have to make. In the Costa Blanca as with anywhere, there are good and bad areas, take your time and have a good look at the various locations available, when it comes to re-selling later it will help if you have chosen well.

3. New or Resale? – The choice of new or resale when buying Costa Blanca property is another important consideration. Many estate agents will push you towards new property, mostly because they get fewer problems with new property and make larger commissions. Don’t be swayed by their fancy talk or by their rubbishing resale property, there are pros and cons for both property types, take a look at everything that is available and then make the choice that best suits your requirements.

4. Property Type – The next decision to make is the type of property you are seeking, will it be a holiday apartment on the seafront of a popular resort, or a detached villa on a large plot of land in the suburbs? The choice of Costa Blanca property is endless and you will need to have some firm idea before you begin your search. Your budget will of course affect your choice and may even determine it if you are looking at the cheaper end of the market.

5. Choosing Your Property - Now is the exciting time, going out and viewing possible properties. Take your time and look at as many as you can – if you are looking at new properties, don’t be rushed into a decision “this is the last one available” is the selling point of many a Costa Blanca estate agent. Don’t be fooled, there are always plenty of properties available. Take plenty of photographs and if possible a video, this is very useful when reviewing later, it can get very confusing when you are looking at lots of properties. Make a short list and go back to look again. This is an important decision – take your time. Your perfect Costa Blanca property is out there somewhere.

6. Paying a Deposit – Once you have decided on your purchase it will be necessary to place a deposit to hold the property and have it taken off the market. The standard deposit in Spain is three thousand euros. And the next step will depend on if it is a new or resale Costa Blanca property. With resale property the deposit will be all that is required until signing day, with new property you will have to make a payment of around 30%-40% after one month and possibly some stage payments during the building work, more commonly it is 30% after one month and then the balance when the building is complete. Check with the builder before you pay your deposit – different systems may not suit your circumstances.

7. Choosing a Solicitor – If you are buying your Costa Blanca property through an agents office, they will probably have their own retained solicitor who you can use for the purchase if you wish, if not you will need to find your own. Make sure you find a solicitor who speaks good English and understands the language well. Your solicitor will be your friend and ally during the entire process of buying and will deal with the sellers solicitor to make sure there are no outstanding debts on the property. If you need to know anything at all, ask, he is there to help you. Your solicitor will be there with you at the signing to ensure everything goes smoothly and he will also help you afterwards with such tasks as changing names on bills and contracts (ie electricity and water). You can normally retain your solicitor afterwards to file your tax returns in Spain.

8. Taxes and Costs – It is essential that you are aware of all the costs and taxes that are involved with buying a Costa Blanca property, as this adds considerably to the overall purchase price. The main expense is Transfer Tax (IVA) which amounts to 6% on top of the purchase price of new property and 7% on resale property. Another tax is Plusvalia which is a tax on the increased value of the land the property is built on (generally paid by the buyer). Then there is a Land Registry fee (around 300 euros) and a Notary fee, which can vary but a guideline price of about 500 euros should be about right (prices current in 2007). You will also have to pay your solicitor (usually in the region of 1,000 – 1,500 euros) and if you are obtaining a mortgage there will also be charges for setting this up (normally 1% of the money borrowed). All in all these costs will add up to an additional 10%-12% on top of the asking price of the property – so allow for this in your budget. After the purchase you will be liable for the following costs:- non-residents wealth tax, paid every year, SUMA (local council tax), community fees (if the property is located on an urbanization), which is for the upkeep of the communal areas ie swimming pool. You will of course also have to take out insurance on the property and contents.

9. Signing the Deeds - The property deed is known as the Escritura in Spain and the signing of this and the final payment for the property is done at the notary office (the notary is an official government representative). You may be present along with your solicitor for the signing or your solicitor can do this in your absence if you have previously given him power of attorney (a common practice in Spain). Before you can sign the deeds you will need to obtain an N.I.E number (foreigners identification number), this can be obtained at any national police station but make sure you ask your solicitor about this long before the signing and he will advise you how to obtain one. Also make sure that you have your original passport with you before going to the notary, also the passport of anyone who is to appear on the deeds.

10. Taking Possession of Your Property – When you have signed the deeds to your property, you should then receive a set of keys. The first thing that I would suggest you do is get the locks replaced on main entry doors, as no matter whether the property is new or resale, various people will have had keys to the house. If the property is new you will want to draw up a “snag-list” of defects and problems (ie poorly fitting doors, plumbing leaks or badly grouted tiles) and hand this to the builder and the agent so that they can put these thing right. You will now want to put your name onto all the bills (ie water and electricity) and organise some insurance for the property and contents. You may also want to fit security grills and an alarm system.

11. Congratulations – You can now sit back and enjoy your place in the sun – your very own Costa Blanca property.



LEONARD

Hector Lesende asked:


Key Biscayne does not form a part of mainland America. It is an island off the coast of Florida. Its only connection with mainland is via Rickenbacker Causeway which was built way back in 1947. Composition of Key Biscayne itself is very interesting. It does not form a part of Florida Keys. Instead it is formed of soil which has got eroded from Appalachian Mountains. It has thus formed a barrier island nearby. But when one refers to Key Biscayne, one is usually not referring to whole of the island but to village of Key Biscayne.

Before completion of Rickenbacker Causeway, there was little or no scope for communication between Key Biscayne and rest of American mainland. As a result of this, not too many people were interested in this place at that time. But after completion of before mentioned causeway, this place became well connected and was hence of interest to all and sundry. It was at this point of time that mammoth developments took place in this area and large residential apartments came up within a very short period of time, to accommodate people who were coming here in huge numbers. When this island became popular, nearly sixty seven percent of this land was under coconut plantation, which by dint of its size was larger than any other plantation in United States of that time. Land was donated to government by Matheson in exchange of promise that a causeway would be built here. This land was utilized to set up a public park by Dade County, the county to which this land had been donated. This public park later came to be known as Crandon Park. Remaining land was left for realtors to develop. And it was in 1951 that real estate development started in this area in its truest sense. It was in this year that Mackle Construction Company started building and selling new homes in this area for approximately ten thousand dollars.

After its incorporation, Key Biscayne has become a part of Miami Dade County in state of Florida. Village of Key Biscayne covers an area of only about one and a half square miles. But despite its small size, development has always gone ahead over here at full steam and pace. This place was made famous by President Richard Nixon, who invested in a waterfront home in this area. Due to this place being used as a residence by a President, infrastructural facilities developed at a more rapid rate than they would otherwise have done. Transportation facilities in this relatively nascent region are quite good and so are some other facilities which most importantly include facilities for education.

Attracted by benefits offered by Key Biscayne many people have migrated here. Census taken in 2000 showed that more than ten thousand people live here divided into more than four thousand households. Each household has an average size of about two and a half while median income of these households is in excess of eighty five thousand dollars. Key Biscayne is home to Miami’s Seaquarium and Crandon Park Beach is some of South Florida’s finest public beaches. The Sony Ericsson Open Championship Tennis Tour is played each year in Key Biscayne featuring the world’s best tennis players. Stephanoe’s was a very special place.

Key Biscayne Real Estate is grand with a population density in excess of eight thousand people per square mile; demand for real estate is really high. Prices are climbing up rapidly and coming days bode well for both, investors as well as sellers of real estate in Key Biscayne. Key Colony, Ocean Club, Tropical Isle, Cape Florida, and Grand Bay Tower are some of the best communities here. Average listing price is now $1,500,000. Key Biscayne Real Estate is coming back strong.



STANLEY

Keith Lee asked:


Whether you are looking for Key West homes for sale or for rent, it’s all right at your fingertips. There are literally thousands of websites that offer properties and real estate for those looking for a piece of paradise in the southernmost tip of the Florida Keys. Here, we made it even easier for you as we gathered the best places where you can find homes for sale in Key West and listed them all here.

Where do you start?

First, you need to ask yourself what you intend to do with the properties. Do you want to live in it? Or are you planning only to stay there in the holidays and just rent it out for the rest of the year? Or do you not want to buy the properties at all and just rent one?

You can, of course, choose a combination of all these three, but majority people only have one aim.

Some want to buy Key West properties because they want to move to a new place and live there permanently. Others want it to serve as permanent base where their families and friends can get together once every year for a vacation. You may want the properties because you have decided to invest in Florida real estate and rent out the property, either through an agent or by yourself.

Due to the number of demands, the average Key West home for sale has been listed over $800,000, which is pretty expensive. But with rapidly appreciating properties, more than a few owners are willing to sell their homes. So let me guide you over the countryside and look for those really gorgeous but reasonably priced.

Single Family 4 Bedroom on 4,807 sq. feet

Von Phister, Key West FL

Price: $1,900,000

This spacious 4 bedroom home offers over 1800 square feet of living space and an attic for added storage. Numerous interior features include granite counter tops, tumbled marble baths, wool carpet, solid maple cabinets, red oak flooring, high elegant ceilings. There is a heated salt water pool with a self cleaning system. This house is prepared to withstand elements with roll down hurricane shutters. Alarm systems, covered brick parking, irrigation System, beautifully lighted landscape, a 15KW Generator, water treated decking, armored screen system installed in the glass windows, and dual zone central AC. This property was built in 1997 and was meticulously maintained by the owner.

Contact details for the Key West homes for sale listed above:

Bascom Grooms

www.bascomgrooms.com

Call Toll free: (888) 565-7150

Cell Phone: (305) 304-7444

Below is a short list of online resources to help you find the perfect Key West property for sale:

C21PrestigeintheKeys.com - Century 21 Prestige Realty Group

Their site offers you many interactive pages that will guide you through the process of locating, financing, and closing on property sale. Their listings include detailed information about each property for sale, plus tools that will help you calculate your home buying strength and receiving pre-approval for a loan.

CasaMarinaEstates.com - Casa Marina Estates

As a complex of nine exclusive residences, Casa Marina Estates has a unique offer - a property right in the heart of the Casa Marina neighborhood, which is one of the most coveted residential areas in historic Old Town Key West. With streets lined with outstanding architecture and beautiful gardens, it’s no wonder people consider this area the “cream of the crop” of Key West. Now, imagine your very own property for sale in this quiet residential neighborhood where luxurious living is the norm, rather than the exception.

There are several more online sources for Key West property for sale. The ones above are only a few of the literally millions out there.

Below are a few notable real estate companies and agents providing property listings for your perusal. With this list of real estate resources, you might just find your key to paradise right here:

LiveinKeyWest.com - Southernmost Key West, FL

Run by broker/owner Ken Schultz, LiveinKeyWest.com operates by matching you with quality investment and residential properties in Key West, Florida. The site also contains an MLS (Multiple Listing Service) database that contains every conceivable Key West properties in the market as rentals or residences or commercial spaces. Use the MLS database to find a good selection of homes for sale that you can choose from.

FloridaKeys.com - Key West Real Estate ad Realtor Listings

The site contains listings of realtors and real estate companies operating in the Key West area, including Big Pine Key, Marathon, Islamorada, and Key Largo. Use this list as a resource to find a realtor for your homes for sale.

There are, of course, many more factors that affect your choice of properties to purchase or rent. Price, for example, is one of the leading concerns that potential buyers have. But price is only good if you factor in the rest of the factors.

Good luck, my friend.



ROCCO