Archive for February, 2012
February 25th, 2012 -- Posted in Apartment, Real Estate |
Owning commercial real estate means having to deal with tenants and the problems they present. But, there are several easy methods for controlling tenants. Keeping them under control creates a more harmonious environment, making the building more attractive to prospective tenants. This level of control is one of the keys to effective property management.
It is the property management that is responsible for making certain that tenants pay their rent on time. An effective property management rule is to require the rent to be collected on the day that is specified in the lease. This keeps any confusion about the due date and other rent issues from getting out of hand.
Tenants must also respect their apartments, which can be hard to enforce. However, it’s part of owning commercial real estate and taking an active role in commercial property management. Avoiding the cost of repairs is the main reason for this type of rule. If a tenant doesn’t respect their apartment, there will be repairs needed when the unit is no longer occupied.
In order to keep peaceful surroundings for all the tenants, they must respect their neighbors. This can be accomplished with specific rules that relate to the way neighboring tenants are to be treated, such as respecting quite hours. Keeping the noise level under control is something that property management must take seriously. If a tenant does not follow this rule, it calls to the property management to enforce it. Many property management companies will have specific rules about the repercussions, which can include a number of warnings before action is taken.
The tenant that moves in and has obvious problems with drugs, there should be steps taken toward property management terminating the lease. These tenants usually have more traffic than the other tenants, and may have other character flaws that will become apparent to property management and tenants. It can also give the building and the property management a bad reputation.
Apartment building investing is one of the first steps many investors take into commercial real estate. Once the property is obtained, the tenants depend on you for property management. If your rules are followed, the tenants will be content and your apartment investing is more likely to pay off in profits.
Commercial property management can be made easier by implementing at least one rule, which is to keep the building in good repair and the exterior trash area clean. This tells prospective tenants that this is a well-run, clean building. This image will bring in the preferred type of tenants to fill your rental units. Remember there are as many good tenants looking to relocate to a new building as there are bad tenants. What kind of tenants you have will depend largely on the type of property management you have in place.
February 20th, 2012 -- Posted in Real Estate |
A mistake that many people make when working with a real estate agent is the belief that they need to stick with the agent once they have contacted them. While it can be more difficult to get out of a contract with a listing agent that is helping you sell your home, you are under no obligation to work with just one agent when you are looking for a home to purchase. In fact, unless you have hired a buyer’s agent to help you find your home, you are perfectly within your rights to contact multiple agents until find one that suits your needs and that you feel comfortable with.
If you have hired the agent to help you sell your home or if you have entered into a buyer’s agreement, getting out of your agreement can be a bit trickier. Nonetheless, it is possible.
Signs that You Should Part Ways With Your Real Estate Agent
Sometimes, you simply won’t see eye to eye with your real estate agent. If this is the case, you might need to part ways. Aside from small differences in views, you might find that you and your agent simply cannot get on the same page at all. This can be a very frustrating and time-consuming experience – and it is completely unnecessary. More than likely, there is a real estate agent out there that will understand your needs and that will be more than happy to help you find what you are looking for.
If you find that you are raising your voice when talking to your real estate agent, you are probably in a bad situation. If you find yourself calling your agent bad names when you refer to him or her or if you are experiencing negative thoughts about your agent, it is time to start looking for a new agent. Similarly, if you find yourself avoiding your agent’s calls or if your agent is not calling you back, you likely have a bad relationship and it would be better for both of you to part ways.
Getting Out of Your Agreements
If you have entered into a contract with your real estate agent, you should try to end the contract based on mutual consent. If the agent refuses to bow out gracefully, you might need to request the help of a lawyer. Ideally, before you ever signed the contract, you should have checked on the agent’s policies for canceling the contract. Most reputable real estate agents will allow you to end the contract if you are unhappy with their services.
If you have entered into a listing agreement, you can ask the real estate agent to cancel the listing. If he or she refuses, contact the broker and request a cancellation. If the broker will not cancel the listing, you can at least ask for a different agent. In most cases, however, the broker will allow you to get out of the listing because refusal to do so can scar his or her reputation. If the broker continues to refuse, let him or her know that you will be contacting a real estate lawyer for termination assistance. In many cases, just the threat of a lawyer is enough to get the broker to back down.
Incoming search terms:
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February 15th, 2012 -- Posted in Real Estate |
If you are thinking about making a real estate purchase, you may find the financing options quite confusing. Before you can proceed, you have to know your terms, and understand what your options are.
There are two variables to consider – mortgage type, and interest rates. These are the most important considerations when deciding on real estate, so it is essential that you have a basic understanding of what they are. Your two main options are repayment and interest-only types, and under those are more specific kinds.
Repayment Mortgages
This type of financing operates like a simple loan. Every month, you make a payment and the money goes to both the capital (the actual home itself) and the interest. The loan lasts a certain period of time, and if you make all of your payments according to schedule, you will have both the interest and capital paid off at the end of that term.
Interest-Only Mortgages
With this type of payment option, you are making your payments to the lender for the interest only. These loans have other options for paying off the capital in a lump sum. These have their benefits, but they are only good for those who can definitely make those payments according to schedule. If you do not keep up your payments, you risk losing the loan.
You will be saving the money for the capital in a savings plan of some sort, like a pension plan, ISA or endowment. At a certain time, that saved money will be used to pay for the mortgage, and the interest will already have been paid off.
- Endowment Mortgages.
With this type of financing, you are paying money into a life insurance plan. Those funds will eventually be used for the house. At the end of the term, this money will go to the house. The advantage is that you are not only saving for your mortgage, but also getting life insurance. If you die during the payment period, the loan will still be paid off so your family doesn’t have to worry. You also might end up with extra cash left over after it’s paid off.
- ISA Mortgages. With an ISA, your monthly payments are being split two ways. One part is used to pay the interest on the principle (or original amount you borrowed), and the other goes into an ISA plan, which is invested. Part of the ISA plan will be simple savings, and the rest will go into stocks and other investments. This is an excellent way to pay off your loan like a repayment mortgage, but save lots of money on taxes.
- Pension Mortgages. You pay money into a pension that will be used to pay for the house when you retire. This option is usually only available to those who are self-employed. You are basically saving for both your home and retirement, so you have to make sure that there will be enough when you retire for the house and to take care of you throughout the rest of your life. With this type, you pay almost no tax on your house, and end up saving all that extra money.
Once you’ve decided which payment plan is best for you, you will have to choose an interest rate. Whether you need a fixed interest rate, variable rate or capped rate will depend on your lender and your own personal needs. Having advanced knowledge about your options will let you select the plan best suited to you and your future.
February 9th, 2012 -- Posted in Real Estate |
What your beliefs are and the way you think are the two defining factors that will determine whether or not you will have success as real estate investor. These two defining factors are what is known as a mindset. A mindset is universally defined as a habitual or characteristic mental attitude that determines how you will interpret and respond to situations.
Two examples of individuals having incredible mindsets are Michael Jordan, and Tiger Woods.
Tiger Woods has a mindset and a core belief that every golf ball that he hits will go in, and every tournament that he plays in he will be victorious. All of his golf shots don’t go in and he doesn’t win every tournament, but is there any wonder why he has of this writing won 54 golf championships at the age of 30? It has to do with his mindset.
Michael Jordan is known as the best basketball player that has ever lived. But did you know that he was cut from his high school basketball team as a sophomore because at 5 feet 9 inches he was deemed to undeveloped?
Of course that did not deter him. He practiced even harder grew to 6 feet 6 inches and within the next two years became a high school All American. He went on to establish a distinguished career, which included hitting the last shot to win the NCAA college basketball championship, winning 6 NBA titles, 5 league MVPs and a slew of other accomplishments.
Why was he such a winner? Why did he dominate? Simply because of his mindset, he believed that he was a winner so he won, he believed that he was destined to dominate so he dominated. So let me ask you, what is your mindset when it comes to your real estate business? Do you have super goals or mediocre ones? Do you promote your real estate business a little or a lot? Are you finding truly motivated sellers?Are you building momentum for your business or are you slacking off?
Whatever your case may be there is always room for improvement. For example, instead of being happy with doing a couple of deals in a year, develop the mindset and take the action necessary to do 50, 100, or even 300 deals a year.
Don’t say that it can’t be done because there are real estate investors who have achieved those type of numbers. Remember it’s all about your belief system and the way that you program yourself to think. If you think that you can, and act on that belief chances are you will accomplish your goal.
So the message is simply this, when it comes to your real estate business, make sure that as a real estate investor and entrepreneur you develop a superior mindset that will enable your business to prosper and grow exponentially.
February 6th, 2012 -- Posted in Real Estate |
Purchasing rental property is a popular real estate investment plan these days. Rental property can pay dividends in the long run to its owner and while being a landlord has its challenges, it is still a great way to be a successful investor. However, before you dive into an investment, there are several things to consider. The following are a few tips to think about when purchasing rental property.
Do Your Own Walk-thru
Before you purchase a rental property, or any piece of real estate for that matter, visit the location and personally inspect the home. It is imperative that you inspect the home as if you were going to live in it yourself. Make a list of any concerns you have with the property and bring them up to your real estate agent. It might even be a good idea to hire a home inspector who can give his or her professional opinion on the state of the house.
Double Check Utility Costs
All savvy renters confirm recent utility expenses before renting property. It only makes sense that a potential landlord would do the same. Contact the local utility offices to verify utility expenses. You should check out gas, power, water, and waste costs when applicable. If a home has exceptionally high heating bills in the winter, it might be harder to rent or it may require repairs to the home. Also, at this time you will want to consider whether or not you will include utilities as part of the rent when you lease out the home. These are all things to consider before buying the home.
Buy Local
As a landlord, especially if you are just starting out, you don’t want a bunch of rental properties situated apart from each other. If you plan on managing your own rentals this is even more important. Invest in property close to your home. A good rule of thumb is to purchase homes no more than an hour drive from yours. If a tenant calls with a problem and needs your assistance, you don’t want to drive a great distance to get there. If your investment property is an hour away, that puts you out two hours before you have even addressed your renter’s primary concern.
Check Out the Neighbors
If you are buying property in a subdivision or neighborhood, check out who will neighbor your new investment. You do not want investment property that is bordered by a cluttered yard or a noisy family. If there are cars sitting in the front yard, you might want to think twice about dropping your hard earned money into that particular piece of land.
Check Out the HOA
If your potential investment is located within a Home Owners Association, inquire about the organization’s rules and regulations. While HOA’s can benefit investors by serving as a watch-dog over rental property, they can also become a pain if they are heavy handed with their members. Some HOAs have been known for having rules stricter then the city they are located in. An overzealous HOA could mean more trouble then you want to deal with.
February 4th, 2012 -- Posted in Real Estate |
As a real estate investor it is important to choose a business structure that gives you the maximum asset protection as well as the best tax advantages. Although I can’t advise you as to what type of entity you should structure your company as (you should consult with attorney) I can give you a brief overview of the different types of entities.
Sole Proprietorship. A sole proprietorship is basically a one person company and is simply “you doing business”. There isn’t any filing requirement to start you business using this structure unless you are using a fictitious or trade name. If you a using a fictitious or trade name you must file a “d/b/a” or doing business as with your state, city or locality. The only types of fees associated with being a sole proprietor are the licensing fees that your city or state or locality charges for doing business.
Tax Consequences of a Sole Proprietorship. The income made by a sole proprietorship is income earned by its owner. In addition, as a sole proprietor, you report your income, expenses, profits and losses on schedule “C” on your federal income tax return. This income is subject to a self-employment tax.
Disadvantages of Sole Proprietorship .One of the disadvantages of a sole proprietorship is there is unlimited liability. If you got sued everything you have personally is at risk. There is really nothing shielding your personal assets. If your business goes bankrupt, you must file for personal bankruptcy protection to avoid the business debts.
General Partnership. A general partnership is an entity that is formed with two or more parties. No paperwork needs to be filed to create a partnership. In fact it can be formed with a simple handshake. However, it is better to have a partnership agreement that spells out the terms of the partnership. If there is no partnership agreement then the partnership is governed by state law. The majority of the states in the U.S. have adopted the Uniform Partnership act which consists of a set of rules of how partnerships should act if they don’t have a formal agreement.
Liability of a General Partnership. A general partnership has no liability protection for partners. Partners are jointly liability for any acts of negligence. So whether or not a person in a partnership committed a negligent act he or she is still personally liable for that act.
Tax Consequences of a General Partnership.The general partnership itself doesn’t pay taxes it simply files an I.R.S. 1065 form. This is only an informational form that summarizes income, expenses and profits and losses of the general partnership business.
A general partnership is treated as a “flow through entity” which means that the profits and losses of the partnership “flows through” to the partners who report their share of income or losses on schedule “E” of their personal income tax returns.
The way that this works is that the partnership would send each partner an I.R.S. K-1 form that states their share of the partnership profits or losses.
Limited Partnership. In order to form a limited partnership, the partnership must file a “Certificate of Limited Partnership” with the state in which it is organized. There are two types of partners in a limited partnership. There are the general partner and a limited partner. The general partner controls the day to day operation of the partnership and is liable for all business debt where as a limited partner is not responsible for business debts and/or claims.
Liability of a Limited Partnership. The general partner in a limited partnership have unlimited liability and if a judgment is rendered against the limited partnership and that partnership doesn’t have enough assets to cover the claims, the creditor can go after the general partner’s personal assets. Sounds risky doesn’t it? Well it is!
Now unlike the general partner a limited partner has no liability beyond what they initially invested in the partnership. Creditors can’t go after limited partners for the debts of that limited partnership. In addition, limited partners unlike the general partner are not personally liable for acts committed by the general partner unless they participate in management decisions.
Tax Consequences of a Limited Partnership.A limited partnership is also treated as a “flow through entity” for tax purposes. I must point out to you that in “flow through” entities, the owners pay individual income taxes on all net profits of the business. This is the case whether they receive those net profits or not.
Corporation. A corporation is a business entity that carries its own legal status, separate and distinct from its owners. Its’ primary advantage is to provide owners with limited liability against business claims. A corporation requires a filing of an articles or “certificate” of incorporation with the state. There are two types of corporations “C” corporations and “S” corporations. An “S” corporation status must be elected.
Tax Consequences of a Corporation. A “C” corporation files an IRS form 1120 and pays taxes on its net income. The primary disadvantage of a “C” corporation is double taxation. Profits are taxed first at corporate tax rates and then again at the individual level. when owners receive profits from the corporation in the form of dividends.
An “S” corporation is taxed just like a partnership. It files an information IRS form 1120-S and the profits and losses “flow through” to the shareholders. The S corporation sends each shareholder an IRS K-1 which states the shareholder’s share of profits or losses.
Liability of a Corporation. A corporation provides liability protection for its owners (the shareholders). If the corporation was sued, the owners are not personally liable.
Limited Liability Companies. A limited liability company (or “LLC)” is a hybrid cross between a corporation and a partnership. To form a LLC the requirement is that you must file an “articles of organization” with the state. An LLC is owned by its’ members or partners and it is governed by its operating agreement.
Liability of a Limited Liability Company. A limited liability company provides protection for its’ members. The members are not liable beyond their contributions to the company. If the LLC is not able to meet its’ debts, the members are not liable for these obligations. In addition, if the LLC is sued the members are not personally liable. An LLC can be “member managed” or “manager-managed”
Tax Consequences of LLC. An LLC is also a “flow through” entity and for single member LLC the tax reporting requirements are basic. All you have to do is attach an IRS form Schedule C which is a Profit or Loss from a Business to your Form 1040 individual return. You will also have to file IRS form Schedule SE which is a self-employment tax form. On this schedule you will calculate the amount of self-employment tax owed. This self- employment tax is a combination of Social Security and a Medicare tax .If there are two or more members of LLC, then that LLC generally must file its’ taxes as a partnership.
Like I mentioned previously that requires the LLC to file a form 1065. Income, losses, deductions and credits allocated to each owner for the year are reported on Schedule K of form 1065. A schedule K detail is given to the respective members of the LLC detailing their specific shares of profits and losses. They would then use this information and attach the K-1 to form 1040 of their personal tax return and use it to calculate their personal income tax owed.
Limited Liability Partnerships. LLP’s are a special type of partnership designed to provide individual partners with protection against malpractice by other partners in the business. In some states this is known as a registered LLP, or RLLP. LLP’s are primarily designed for professions such as doctors, lawyers and accountants.
So there you have it, an overview of the different types of business entities in which to choose from. In running your real estate business, it is imperative that you to choose the entity that works best for you. Furthermore, you should also seek the advice of a competent attorney and an accountant before choosing a specific entity.
As a rule of thumb you want the best assessment of the business structure that will allow you to keep a significant amount of income that you made from your deals while minimizing the taxes that you have to pay to Uncle Sam. It makes no sense to make the money as a Real Estate Investor and to give a great deal to the IRS just because you didn’t choose the appropriate business structure.
Incoming search terms:
- different type of partners and the extend of their liabilities
- different types of partners and extent of their liabilities
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February 3rd, 2012 -- Posted in Uncategorized |
Would you like to find unique bedding for women? If that so, you must try to visit Bedbathandbeyond.com. From that website, you can find many kinds of bedding for women. You will see some samples which can guide you to imagine about your bedroom concept. Usually, when you choose the bedding set, it will reflect your characteristics. Believe it or not, people will know your characteristics at glance when they see your bedroom. Therefore, you can also see some bedding set pictures which can represent your characteristics.
Those unique bedding sets will be easily ordered and bought. You just need to visit the website then you see the short explanation about it. Besides, you can also buy other bedroom needs such as sheet, duvet, curtain, and many others. If that so, this company will offer you the best quality of its products. This company has been providing bedding sets for some years. Therefore, you don’t need to be worried about its quality. Although you live far from the company office, this company will send it to your address well. It shows you that this company really works professionally.
You can also get vanity mirrors here. This company also offers it with various size, style, design, and price. You just need to mix and match with your bedding. It is important to create a comfortable bedroom.