Category Archives

Archive of posts published in the category: real estate
Aug
18

Cost Per Funded Loan – Building a Book of Business

There are many essential metrics that must be considered when a determination is made on how to spend valuable marketing dollars. The acceptable cost per funded loan varies depending on where an individual sits in the organizational chart and how much of a stakeholder one is in the long term growth of the company. Successful lead generation firms are aware of this and for this reason there products are designed to cater to different segments of the mortgage professional population.

A mortgage banker will seek to increase volume and can tolerate slimmer margins immediately sees the benefit of of increase overall lead volume. A cost per funded loan of $400 to $700 per funded loan is acceptable and very profitable, because the bank will draws revenue from the originated loan in more than one way.

There are a number of different ways to market a reverse mortgage. However, they fall into two basic categories: 1.) Waiting for a qualifying senior homeowner to walk through your door with and request the product from you or 2.) Market to the target demographic in a clear and informational manner and let them know the product is available.

Waiting In the Office for Warm Referrals: Lowest Cost Per Funded Loan
The easiest is to rely on warm referrals from past clients. In the reverse mortgage industry this would amount to simply waiting for someone who has previously reverse mortgage there home to go to a friend or family member and to extol the virtues of the FHA HECM or private equity loan that the recently received.

Ideally, they will have excellent comments to share regarding the company that provided the loan as well as the benefits of the loan itself. In this scenario the cost per funded loan is nearly zero and the profit margin associated with the loan is high.The downside to being dependent entirely on warm referrals of this type, particularly for growth oriented firms is easy to see.

First, senior homeowners tend to keep financial matters private and may not discuss financial matters openly. Second, for many seniors, their personal network of trusted people is shrinking as opposed to growing each year. Third reverse mortgages have been available for decades in one form or another and prior to the massive increases in home values associated with the real estate bubble, which substantially reduced the loan-to-value of many properties and increased the available equity, very few loans were done when this was the primary means of communication.

A quick visit to the FHA website or review of the year-by-year statistics reveals this to be undeniable.

Marketing Programs: Growth-Oriented Referrals
Growth oriented firms, particularly those with an exit strategy that includes being bought out by a larger firm or group of investors, will require more than just walk-in to build their businesses. Even large banks and financial institutions market heavily in the communities their agents service.

Anyone familiar with the reverse mortgage industry understands that eventual sale of the business entity or the …

Aug
17

Finding Ways To Keep Up With Houses

How To Choose A Reputable Home Builder

When the time comes that it is your dream house that you want to achieve that you need to make sure that you will be asking the help of a home builder. It is in making sure that you will get just what you need to ensure also that you will be hiring a reputable one. It is a challenging task when you will opt to go with this one. It is n hiring a reputable home builder that there are factors that you also need to consider. It is the different home builders in your area that you need to know forts and get the right information about them. It is also this information that you can also gather from people you know. Another thing that you can also do also to visit different homes in your area and ask the owner regarding the one that built it. It is you that will be able to gather ample amount of information about the right home builder in your area.

The main purposes of your home bidding is also another thing that you need to look into. It is also important that you will also know the specific budget that you have. For the whole construction to be finished, it is also important that you will determine the time needed for it. Before finding a home builder, it is these things that you need to determine first. It is when a first call is given by you to the contractor that you also should observe how they will handle the call. It is when you will do this one that you will have an idea of the personality of the builder. Knowing the personality of the builder will also help you determine if you will go with the deal in the end.

The moment that you will b choosing for the right builder for you that it is always important to look into their personality, reputation, and experience. It is these things that you need to ensure as these projects will involve both your time and money. It is during the time f the construction that there will be no problems that will happen between you and the builder once you will take care of this one. Right after you have given them an online call that it is also better to see to it that you will be scheduling your first appointment. The moment that this one is done by you that it is also you that will b able to see the credibility and the different works that the builder have done. As part of the selection process that tin is also important to visit the housing projects that they are doing.

It is a when you will be dealing with your builder that it is also important that you will put things into writing. The moment that you will have a contract that you will be able to avoid any …

Aug
17

What Everybody Ought to Know About Jewelry Appraisals

For most of you, the thought of getting a Valuation or Appraisal on your Jewelry is NOT at the top of your list.

But it should be.

To often, clients assume that their Jewelry is either…

  • # Not Valuable enough to bother
  • # Covered by their Household insurance
  • # Safe on their Finger, so it won’t get lost

All of these assumptions are WRONG and we cover some suggestions in our Insurance article (address given below) and the security pages under the Learning Section of the Online Appraisal Center.

If you are concerned about these matters and haven’t had the chance to read them yet, we suggest you take a little side trip and cover the bases, soon as possible…

…Before the ring falls off the finger or the chain gets lost while swimming or the Diamond (was it a Diamond?)…

Get the Picture..?

That’s exactly What a Jewelry Appraisal Valuation Certificate is for.

Types of Jewelry Appraisal Valuations

The main type of Valuation or Appraisal we come across is the Valuation for Insurance. This is the one you would normally receive from your local Jeweler or Gemologist.

It is basically designed to cover you (through your insurance policy) against any loss or damage you may encounter.

It is designed to provide you, wherever possible, as near a REPLACEMENT OF A SIMILAR ARTICLE as possible.

It will include any taxes or duty plus the Jewelry Trade mark up.

What Are The Other Types of Valuations?

Other forms of Valuations are…

  • # Valuation for ‘Private’ Sale
  • # Valuation for an ‘Auction’ reserve
  • # Valuation for Probate
  • # Valuation for Division of an Estate (under conditions of a Will, for example)

 Each of these types are simply a percentage of the ‘Master Valuation’ figure or Replacement for Insurance mentioned here.

The Master Valuation Appraisal

While these are covered briefly regarding their structure and use, you should remember that ALL of these valuations are just by-products of the Valuation Appraisals for Insurance, both in principle and procedures.

Therefore, with a little common sense and a child’s school calculator, we can arrive at a final figure for any of the above situations.

After all – they need the SAME information to begin with.

If you had an Online Form which helped complete a Jewelry Appraisal for yourself, there would be no easier or quicker way to help in the majority of these cases, and you wouldn’t even need a child’s school calculator to complete it, because it would all be built into the Computer System.

Nice thought – but is it a reality?

Thankfully – Yes it is.

Jewelry Valuations For The Rest Of Us

While our advice is – and always has been – to get your Jewelry valued or appraised by your local, professional gemologist Valuer, it remains our belief that in the ‘majority of cases’ and taking into account the costs involved (your professional Valuer charges a reasonable fee for their skill and the work carried out) there is an alternative.…

Aug
16

Better World Properties Forms New Family of Companies, Announces Sumar Merger

FOR IMMEDIATE RELEASE

HOUSTON — The Texas apartment world just got better. Terri Clifton, President of Better World Properties, LLC, announced the formation of the Better World Family of Companies and the merger of Sumar Property Management into the new organization.

With national and international real estate expertise, the Better World Family of Companies is focused on Texas multifamily investment, apartment property management, and redevelopment of conventional Class A, B, and C properties, including student housing, senior living and condominium conversions.

“I love what I do,” said Clifton. “Over the years, I’ve made a lot of money for a lot of people. We’ve put together a team that makes the apartment world even better!” In addition to Better World Properties, the Better World family now includes Better World Holdings LLC, Better World Consulting and the renowned Sumar organization. Longtime veterans of the multifamily industry head each Better World entity.

“Collectively, we bring apartment life-cycle solutions to multifamily owners, investors and residents–all under one roof. We offer licensed multifamily property management, apartment process and performance consulting, multifamily deal generation, real estate entity structuring, new apartment development, and financing solutions. Bringing it all together under one roof is how we make it a better world,” Clifton said with a smile as big as Texas.

The announcement and merger culminates 100+ years of combined experience in multifamily property management and investment services. Industry leader Larry Hill, Founder of Sumar Realty, a former Houston Apartment Association president, and HAA Hall of Fame inductee, will remain on the Better World Properties’ board of advisors. To view a full list of services, visit the company website at

Hill’s background includes national multifamily management and investment as well as office and mixed-use development. For decades, Hill has worked diligently to improve the multifamily industry through the Houston Apartment Association, the Texas Apartment Association and the National Apartment Association. In addition to overseeing 22,000+ units all at one time, he helped The Department of Housing and Urban Development (HUD) reposition multifamily assets and organize housing for victims of Hurricane Katrina, and was a long-time owner of the Houston House high-rise apartments.

Said Hill, “Terri is a dynamic leader. I am proud and excited that her organization, Better World Properties, is carrying on the Sumar legacy. I know Terri will make the multifamily industry better.”

Terri Clifton’s story encourages us all to dream big and never give up. “I started with a bean bag and a television set,” she explains. “Nobody has to tell me how hard it is to pay rent.” As a single mom in Texas, far from her native Indiana, Clifton began her career leasing apartments in exchange for rent. She immersed herself in the multifamily industry, worked her way up through the executive ranks, and eventually became a multifamily investor herself. She spent time in asset management and new development touching on all phases of the complete apartment life cycle. Earning her broker’s license, Terri led the way to creating a new vision of a …

Aug
16

How Scenario Analysis Helps Measure Risk When Real Estate Investing

Scenario analysis is used by real estate investors and investment property specialists because it provides a good way to measure risk when evaluating real estate investments.

What is scenario analysis? It involves estimating a range of variables that will have the greatest impact upon the likelihood of an investment performing according to an investor’s minimum expectations. Rental income, for instance, is subjected to scenario analysis when the analyst wants to gauge investment property performance based on various rent scenarios. In other words, how well does the property perform in the event rents decline or increase?

Scenario analysis typically considers three scenarios. In this case, we will assume that our scenario analysis is intended to explore what influence changes to rents would have on property performance.

  1. Worst-case – if rents decline or do not change at all
  2. Most-likely case – the most realistic rents that can be obtained
  3. Best-case – rents beyond our wildest dreams

Assume, for example, you are evaluating a rental property consisting of five units rented at $900, producing $54,000 annual rental income, and resulting in a cap rate of 6.23%. Though you are interested, you feel that the cap rate is too low (you prefer a cap rate of 7.0%). The seller will not drop the price (which would raise the cap rate), so you are faced with a dilemma to either pay the price (against your better judgment) or walk away.

This is where a rent scenario analysis can help. Rather then making a decision blindly, you can explore the influence that various changes in rent would have upon performance. In other words, at the very least, you can see what rents would have to be collected to achieve your cap rate, and whether they are likely or pie-in-the-sky.

In this case, you would consider all three scenarios: worst-case, most likely case, and best case. If your desired cap rate were attainable within the first two scenarios, it would indicate that the property’s current rents are low and it does provide some “upside potential.” So you might want to pay the asking price confident that you can increase rents and thus improve the property’s performance. Otherwise, if rents would have to be raised beyond your wildest dreams to attain your cap rate, you might want to walk.

How do you construct a rent scenario analysis? You can use a spreadsheet or purchase a real estate investment software program. Just remember what it is you want to achieve. You want to see the outcome on essentials like cash flow and rates of return based upon a range of rent scenarios. You might be amazed what you uncover about the property.

Aug
14

A Beginners Guide To Loans

Understanding Reverse Mortgage Loans

If you are one of the many senior citizens in California who are approaching retirement with less financial security than you had ever thought possible, you may be ignoring one of your major financial assets-your home. If you are done with your mortgage entirely, or almost entirely, you can think about getting a reverse mortgage loan.

California reverse mortgage lenders can give you cash, a monthly payment, or a line of credit depending on your home’s appraised value. California reverse mortgage lenders can provide you cash, a monthly payment, or a line of credit as per your home’s appraised value. You will be able to stay in your home and the loan may not be repaid until you leave for good or sell the house. A reverse mortgage loan and a home equity loan are not the same though, and the older you become, the greater the amount you can get from the loan.

Safeguards

Even as a reverse mortgage loan seems too good to be true, certain precautions must be taken when applying for one. A lot of applicants for reverse mortgage loans are victimized by unscrupulous loan brokers or reverse mortgage lenderswho charge surprise fees for their services. Those unfortunate applicants just end up with a much lower amount of money than they expected. At the end of the day, you owe it to yourself to know more about the process of obtaining a reverse mortgage loans so you know what to watch out for.

To qualify for loan like this, the minimum age is sixty-two. As earlier mentioned, you also have to be completely, or almost completely, done with all loans on your house.

Those who do owe cash on an existing mortgage or home lien may use their reverse mortgage loans to cover those loans. But remember that reverse mortgage loans are binding, so you need to choose from no less than the best best reverse mortgage lenders because there will be no turning back.

Finding the Right Lender

The most effective way of ensuring that you will be happy with your reverse mortgage loan, is to find yourself a trustworthy reverse mortgage lenders in California. Check the National Reverse Mortgage Lenders Association (NMRLA) website to know more about reverse mortgage lenders California. Simply enter your state and you will get a list of options. The NMLA may be the best place for you to look in as all California reverse mortgage lenders on this site are bound by a strict Code of Conduct, which was specifically created to protect senior citizens.

As an added safeguard, it would be wise to have an attorney review your reverse mortgage loan terms before you sign any documents. There are times when seemingly small details turn out to be so huge, and that’s not exactly a surprise you’ll welcome. Hence, asking for legal advice always comes in handy when you’re trying to decide on a particular reverse mortgage loan package.

Aug
13

Create the Right Impression With a Home Stager

The answer to grabbing an edge in a tough real estate market is to find a home staging professional. Homes that are professionally staged usually command a higher selling price and sell in a shorter period than homes that are not professionally staged.

Home stagers are at your service to assist you in displaying your home in such a way that buyers will remember it out of a group of many that they have viewed. This is not about redesigning your entire home. This is about adding a few touches to each room and bringing out their best qualities while diverting attention from the imperfections.

When a potential buyer goes through your home, they may require some help envisioning how to make the most out the space provided. By adding a few small accents, a professional home stager can change the look and feel of an entire room. A home stager is not there to clean or do minor home repairs; they are there to add some smart finishing touches that will make buyers want to buy your house.

Hiring a home stager does not mean that you do not know to decorate. However, it does give a person with an unbiased and critical eye the opportunity to honestly make an assessment and to determine what would be the best way to present your house on the open market. You see your house every day and your friends may want to try and save your feelings, but a home stager brings a fresh, new perspective to the table.

Once you find home stager professionals you can expect your home to be scoured over with a critical eye. Some of your furniture and nick knacks may very well be stored while your house is on the market. This is because the home stager is going to want to paint a selling picture versus a living picture of your home.

Adding some pillows, a mirror or some strategically placed linens can completely change the mood of a room. There are very few houses out on the market that do not have any flaws or could not use a few decorative touches here or there.

Remember that you are looking to find a home staging professional – not just someone who is into home decor as a hobby. You want to ensure that the professional home stager has the appropriate certifications and is indeed a professional. Ask for and check references from previous jobs before you decide on the home stager for you.

The cost of a home stager will be determined by the local demand in your area, the size and number of rooms that need to be staged and the overall reputation of the home stager’s business. On the higher end of the scale, you can expect to pay about $5000; the lower end of the scale can be from $500 to $1000.

Remove some of the stress of having to wonder why your home is not moving on the market …

Aug
12

Commercial Real Estate: The Importance of Population Trends

While commercial real estate can be an excellent investment, it’s all but impossible to succeed in this competitive environment without some sort of game plan. The most successful professional real estate investors are those who are able to look at a given area and accurately predict which parts of a given city are likely to experience the most growth in relation to other areas in or near that city. Those who are able to gauge such trends can enjoy enormous advantages in the real estate investment marketplace.

One of the major advantages of this approach is the investor’s ability to often purchase properties at significant discounts to their future, improved market values. One example of this in urban areas is where some neighborhoods go into decline over a period of years. Property values decline, but local populations remain high. Should the city council decide to “re-zone” or offer incentives to developers to rehabilitate the neighborhood, savvy investors have an opportunity to come in while real estate prices are still “low.” Thus, they can enjoy excellent profits once those blighted neighborhoods begin to turn around.

One of the methods used by these professional real estate investors is a thorough analysis of current and future population trends. Tracking the trends in population growth and population movement can provide an accurate predication of which neighborhoods are likely to succeed and which ones are doomed to at least short term failure.

Over the past several years it has been those markets with the strongest and fastest population growth that have been the hottest markets in the country. This trend has held true both in residential and in commercial real estate, and those investors who took advantage of this fact were able to realize excellent profits through the buying and selling of residential and commercial properties.

It is easy to see how population movement and population growth impact the housing market, since a higher population density increases the demand for local real estate. In turn companies looking to open new facilities or new branches often look to areas with high population growth, causing a spike in commercial real estate prices as well.

The movement of population from one area of the country to another can also be an accurate predictor of when it is time to sell. The nature of the neighborhoods in which investors own property can sometimes be difficult to determine, especially from a distance. So, tracking population trends can be a big help to business owners and owners of commercial real estate around the country.

Whether you are planning to buy commercial property, sell commercial property, or do a little bit of both, paying attention to the growth and movement of the local population can be a huge help. Real estate investors need to be cognizant of the trends which could effect their investments and population growth is one of the most important to track.

Aug
10

Property Finance For Foreigners In Thailand

Are foreigners allowed real estate finance in Thailand? Can foreigners in Thailand borrow money to buy a villa or condo?

Are you looking to buy a villa, condo or different property in Thailand? And are you in need of finance? Then scan this report with all you need to know concerning property finance for foreigners in the Land of Smiles.

Property financing for foreigners in Thailand is possible nowadays. But within the past foreigners typically could not acquire a mortgage from local Thai banks to finance their dream condo or beachfront pool villa since most of the money establishments in Thailand solely provided finance for property purchases to Thai nationals and Thai Corporations.

But things changed in 2005 after I saw Bangkok Bank PLC offerering loans to foreigners in their Singapore branch and once more in 2008 when I witnessed Bangkok Bank finally issued foreign loans via their Thailand primarily based branches virtually like we see it in our home countries.

Within the past mortgage lending by native banks to non-thai-nationals was just about extraordinary in Thailand, but lately I actually have seen a considerable amendment in policies to permit foreigners limited access to financing.

Initially this was launched by the Thai government’s eagerness to increase tourism and to stimulate economic development in Thailand.

When we want to purchase a property in our home country, one of the main things we consider is financing.

Whether or not you have adequate funding and liquidity to purchase, financing is largely seen as a way of smoothing our investments.

For people with less access to funding, financing is a very important vehicle they use to own that home of their dreams.

Thailand do not differ from any other country in this instance since most of the banks (but not all of them) in Thailand give loans for real estate purchases to native Thais and Thai firms primarily based on similar criteria we are used to in our home countries.

But for foreigners the similarities do finish here when buying property in Thailand!

Some Thai banks do offer mortgage services to foreigners but they impose quite strict terms and conditions for the foreigner to qualify.

One overall important condition is that the property has got to be owned in the foreigner’s own name and hence the property should be registered as a condo under the Condominium Act because foreigners are not allowed owning other sorts of properties in Thailand.

Also the buyer must pay minimum 30% down with the remainder 70% financed over 3 to 20 years, depending on the age of the borrower.

You can only borrow money in the bank if you are less than 65 years old – and the mortgage must be paid back in full when you turn 65 years old. So if you are say 55 years old today you can borrow the money for 10 years.

Bangkok Bank PLC was the first financial institution in Singapore to provide this kind of financing services to foreigners. But in …

Aug
9

Pros and Cons of Home Inspection

Millions of Real Estate transactions happen on daily basis and it is important for buyers to protect themselves in as many ways they can. One of the simplest is to hire a home inspector. Home inspection offers both the immediate and long term benefits to the buyer. It can also be beneficial for the seller as it can avoid deal-breakers. If the issues and problems can be resolved before being identified by a potential buyer the seller has more chances in getting their asking price. In general, it’s worthwhile to get the inspection done for both, sellers and buyers.

The buyer gets benefits in several ways.As the buyers invest a sizable chunk of money to buy a home it is important to identify any deficiencies that may cost extra money and stress, an inspection by a qualified third-party will disclose the facts. All the serious, major and minor defects are revealed. In some cases there may be some critical structural defects that may be as good as rebuilding the house. Or, the defects may eat away a lot of money and time to rectify them. They may not be able to use the house at all till those are taken care of. There can be some problems related to the safety of occupants, which are to be removed before moving in.

Another benefit inspection offers are that the buyer can get quotes for needed repairs and uses them to negotiate the price with the seller. Moreover, a home inspection eliminates buyer’s remorse about the problems later on.

The home inspector will check and report about ins and outs of the property, areas like basement, structural, construction and safety issues, condition of the roof, and electrical, water lines and heating, air conditioning or ventilation systems. That will ensure to the buyer what all needs attention to repair or replace and he can get the quotes for evaluating the costs involved and the buyers can plan what should be done when and make their budget.

When it comes to disadvantages of hiring an inspector, there isn’t really anything major, except incurring some expenses for inspection. The cost is small in comparison to saving that can be achieved. Of course a qualified and in-depth inspection is key here.

A seller also benefits from a home inspection as he/she can avoid problems later on. Before listing the house for sale, a home inspection will help the seller to recognize the potential problems with the home and they can be addressed before showing the property to buyers. Multiple quotes fir repairs can be obtained and a proper job done as oppose to making urgent repairs 2 weeks before closing. This cant cost a fortune.

Most importantly, all issues and problems resolved before the buyer shows up. If a seller is not ready to allow inspection, and is firm on the price as is, the likelihood of a fast sale or a sale at all is very small.

A home inspection gives confidence to both seller …