Tuesday, October 30, 2012

Barrie Real Estate Investor's Buying Barrie Real Estate

Spring Presents Great Time to Start Investing in Real Estate

With the warmth of spring creeping back and the last of the snow melting, there is a renewed energy and positive mood in the air. The return of spring also means an influx of houses, condos, townhomes, and more to the real estate market. Investing in real estate is often a very safe way of investing your hard earned money, either as a first time home buyer, or looking for a second property to rent. Let's look into each situation as each provides a different type of investment strategy.

Investing in Real Estate as a First Time Home Buyer

You've been paying rent for the last couple of years and while you enjoy the house or apartment you are renting; how much return on that money have you seen? Zero, maybe a small increase on your tax refund, all in all not a whole lot. An average basement apartment in Barrie rents out for between 0 to 00 per month; while an average house rents for 00 to 00 per month, plus your own utilities. That's a lot of money that you'll never see again.

Typically, when paying rent you are paying down your landlord's mortgage on the property and covering the cost of the home insurance on the property; and possibly even putting a little extra cash directly into the landlord's pocket. Seems like a pretty one-sided deal. Why not invest in a home of your own, so you pay down your own mortgage and build equity. That equity can help you do a lot of things, such as providing a down payment on the next house once your family grows out of this one or can help you pay off other debts when you refinance at the end of your term.

A mortgage is often going to be less per month than you would pay in rent, of course that is dependent on purchasing a similar house to what you are renting. Another great reason to look at investing in a home is mortgage rates are still very low, meaning you can get a great rate and be able to pay down the principle of your mortgage even faster.

If you're worried that your credit score or lack of a down payment may hinder you from being approved for a mortgage there is always options available such as co-signers, rent-to-own, and zero-down mortgages. Don't give up on the dream of investing in a home before you've even explored all of your options.

There's also the plus of being able to do renovations to the house that will help increase the property value, eventually putting money back in your pocket when you go to sell, but also turn the house into a home while you are living there.

Investing in Real Estate for Renting

You've already made the smart move of investing in your home but now want to look at real estate as another investing tool to help you make the most of your money. Purchasing a second property to rent can be a solid investment strategy if done right. The first thing you should consider is location of the property and will renters find this a positive area to be in? The obvious choice to purchase a second property in Barrie is around Georgian College or a property in close proximity to Base Borden. These two areas have high turnover rates due to the nature of being a student or in the military. You might have to put in a bit of extra work renting it out every year or two, but the number of renters looking will be much higher.

Once you've found the property, it's time to establish a rental rate. The goal here whether you choose to rent the entire property or rent out rooms individually is to make sure you charge enough to cover your mortgage and home insurance for the property. It's also good to look into landlord insurance as added protection. If you do decide to charge more than the mortgage and home insurance to put some quick cash in your pocket, make sure to set some of it into a savings account for when repairs are needed at the property. Don't forget general repairs are your responsibility to fix as the landlord.

So what's the value of a second property? Well once you look past your responsibilities as a landlord, you have somebody else paying down your mortgage for you. This means you are growing your equity with someone else's money, sounds good doesn't it? The key to investing in a second property is to make sure that you be a great landlord. Renter satisfaction increases if they have a landlord who is responsive and helpful when needed but is not intrusive. Also do your research and make sure your tenants will be respectful of your property while they live there. If your property isn't taken care of you're not helping the tenants or yourself in the long run.

Flipping Properties

Investing in a property to flip and sell is a risky venture and far less stable than investing in a property to rent. There are no guarantees that you will be able to flip the property quickly and you may be stuck holding onto a property you can't afford. There's also the high investment level of cash that is needed to improve the property quickly. Even if you plan on renovating yourself it will still be expensive and time consuming.

If you want to start flipping properties, do your research and invest wisely. Never try this method of investing in a property on a whim, it will never end well. With that said if done well you can sometimes, the keyword is sometimes, turn a quick profit from a property.

Quick Recap of Items to Consider When Using Real Estate for Investing

Carrying a mortgage is often less than what you'll pay for rent
Options like rent-to-own, zero down mortgage options can help you achieve home ownership faster
Find the right location for a second property that will consistently be able to find new renters
Be a good landlord and you'll get good renters
Flipping properties is risky but profitable, only try this after doing your research and making a plan

Mark Turcotte
Sales Representative
Sutton Group Incentive Realty
Office:705-739-1300
Cell:705-309-5300
Fax:705-739-1330
Email:

SeeItOnTheWeb.ca/MarkTurcotte.asp

Thursday, October 25, 2012

How To Master Property Valuation Of A Self-storage Facility

The numbers have been crunched, a broker has been hired, and the marketing has begun. It's official: it's time to sell the self-storage facility. Whether it's retirement, cashing out on a successful investment, or simply a search for a new business challenge, many self-storage professionals are busy navigating their ways through the murky waters of commercial real estate buying and selling. And those waters are becoming increasingly rough. The real estate slowdown and equities market woes seem to lead the evening news nightly, and many self-storage investors are left wondering how well their properties will fare on today's open market.

With this in mind, pricing is becoming an increasingly important part of ensuring a successful sales transaction. Of course, pricing a self-storage property correctly is easier said than done. Over the past several years, values assigned to self-storage facilities have increased dramatically as the asset class has become more desirable to investors.

Class A properties have become especially pricey as more institutional investors have entered the self-storage market. Looking at the sales prices from previous years, many believe values will continue to rise exponentially, while others feel their areas have topped out and even become overpriced. This adds to the overall confusion over what the correct asking price is for a self-storage asset.

Determining Price
It is important to carefully examine the facts and data to determine a facility's real value. Generally, net operating income is the driver of value of an existing self-storage property, says Pierce Owens, senior associate at CB Richard Ellis in Houston, Texas. However, many people calculate net operating income in different ways. For example, some buyers include a third-party management fee in calculating income. There are many different opinions as to what the right net operating income should be.

Not so long ago, many buyers used projected rent and income figures to determine a self-storage property's value. However, this practice has become less common. Buyers now have more of a focus on historical performance, rather than more of a focus on historical performance, rather than a rosy proforma, says Owen. With the current credit market, most lenders will no longer provide funding based on future estimates. Instead, they focus only on actual net operating income figures.

A property's place in the market also has an affect on its value. In an area with huge barriers to entry and a high cost for building new facilities, a property may be worth more than a similar store in a less restrictive market. In addition, the number of nearby competitors and the store's name recognition are also important indicators of overall worth.

Another methodology for the valuation of self-storage property involves the use of optimal underwriting. With optimal underwriting, buyers determine the appropriate expense load a facility should carry, says Steve Ekovich, first vice president, regional manager, and national director of the self-storage group at Marcus & Millichap in Tampa, Fla. The expenses would then be factored to derive a CAP rate. Next, income figures are calculated using both the gross potential rent of the facility and the site's current vacancy rate. Both physical and economic vacancy rates are analyzed as well.

You have to look at the collected income on a monthly basis for two to four months to get a feel for occupancy, Ekovich says. This takes into account the length of time it takes to turn the units and concessions offered to tenants.

The result effective gross income would then be analyzed using the expected expenses for the new owner, including taxes, insurance, and management fees. In addition, salaries, maintenance expenses, and comps would also be studied to ensure they are in line with current market averages. These numbers all serve to give the new owner a realistic picture of what their expenses will be.

Looking At The Market
Over the past few years, self-storage prices seemed to skyrocket. There was an 18-month period where the laws of supply and demand took over, explains Aaron Swerdlin, senior managing director at Houston, Texas-based Storage Investment Advisors. At that time, there were many more buyers than sellers.

As a result, prices rose dramatically, and many people believed property values were ballooning too quickly. There is perception that prices were going so high that things were getting out of hand, says Swerdlin. But, for a long time, self-storage was ignored by the institutional investment community. Once it caught on, it took a while for values to catch up. People weren't overpaying or making deals that they shouldn't be doing. We weren't seeing properties selling for more than they should.

Investors are still actively pursuing self-storage properties in spite of the current real estate slowdown. One reason for this is that capital is generally less expensive for institutional investors than it is for private individuals to obtain. Another driving force behind the influx of investors includes the fact that self-storage is both a business and an investment.

There are more groups looking at self-storage than there were three ago, says Marc Boorstein, principal at Chicago, Ill.-based MJ Partners Real Estate Services. One of the reasons so many new groups are looking to invest in self-storage is that there are fewer defaults in storage than in any other commercial property. You're not dependant on one tenant like you are with retail.

Many investors believe that self-storage is more stable than other business classes. Investors like self-storage because they perceive that the risk adjusted profile on returns is attractive compared to other assets, says Owens. There is also a perception that self-storage is more recession proof than other assets.

For the most part, however, institutional investors tend to target the newer properties located in the largest markets. Over the last couple of years, institutional investors have increased their appetites for Class A, fourth-generation properties, Ekovich says. The more leverage you have, the more someone can pay for an asset. Leverage also affects the CAP rate and has had a profound affect on underwriting.

Although institutional investors seem to be focusing most of their attention on Class A self-storage facilities, Class B and C properties are also seeing a bump from investors' new found interest in the industry. There is a pretty big disparity between Class A properties and Class B and C, says Owens. As the industry welcomed an ever increasing number of new participants, sellers of A Class sites were getting top dollar whenever properties changed hands. Nevertheless, the supply of these assets is limited. There are not a lot of Class A properties, says Owens, so buyers end up chasing B Class properties.

Last year, the price gap between Class A and B was narrower, he adds. This year, it has widened more. Banks and lenders have much tighter underwriting standards today, and they are most likely to lend on very attractive Class A properties.

Knowing The Players
Occasionally, institutional investors will go after a grouping of B and C class properties. Institutional money is going after B properties, but only if you can get a portfolio together, says Boorstein. As you get to smaller markets, you must have a portfolio of three or more properties. It gives the buyer a presence in the market and the advantages of economies of scale.

If self-storage sellers believe their properties will attract the attention of commercial investors, they should set their asking prices accordingly. Sellers need to have a strong understanding of who their buyer might be-a private individual, a regional buyer, or an institutional investor, advises Owens. They should also know how a lender will underwrite and lend on their property.

In general, buyers prefer to use debt financing when possible. However, the cost of funds and debt is going up and, as a result, CAP rates are climbing. Sellers need to understand how that plays into what buyers can pay for the property and how it will be funded.

The benchmark is the 10-year T-bill, and the T-bill has gone down but spreads have gone up, causing interest rates to increase, Ekovich says. The more leverage you have, the more someone can pay for an asset. Leverage also affects the CAP rate and has had a profound affect on underwriting.

With the problems of tightening credit standards, sellers are unlikely to see the same type of debt structures available that were easily attainable only several months ago. Today, most buyers must use more of their own money to close a deal. You used to be able to get 10-year interest-only financing, but now you can only get interest for 2-years, says Boorstein. Very aggressive loans are now less aggressive. Now, the buyer has to put in more equity, and interest rates are higher.

In spite of credit concerns and a softening real estate market, many buyers are still aggressively pursing high-end self-storage properties. Sellers with solid portfolios or successful Class A properties are still likely to garner strong offers. However, sellers who are simply interested in testing the waters may not like what they find. The choppy tides can be extremely unfriendly as property prices have dropped off in some areas.
Nevertheless, the best stores will always attract the attention of a variety of buyers, ensuring smooth sailing for those who are staying the course to get the highest prices and best returns when selling their self-storage facilities.

Wednesday, October 24, 2012

How The Government Can Assist You To Start Your Business

When beginning your online business you should utilize all the help you may get, and the federal government is usually a great supply for assistance. You could surprise in what ways can they allow you to get started. Listed here are three areas the federal government presents help in getting your new business off the ground.

You want money to start out your corporation and the government can assist you get the cash you need in ways. First option supplied could be a loan. The federal government has lots of of tens of millions of dollars in authorities funding set up for small business and entrepreneurs. There are loans created particularly for low-revenue companies, handicapped people, military veterans and more. The second possibility for funds could be one of the fifteen hundred grants which can be accessible via fifty- authorities agencies. The grants are separated and grouped by state and business category. Such classes embrace but will not be restricted to agriculture, general enterprise and real estate. You can too discover grant money for analysis and development of your business. Many of those grants start at five thousand dollars and can finish in the six figures. Best of all these shouldn't have to be paid back. It's like receiving free money.

So you already know that money may be found, however what about different assistance. The federal government has this coated also. They offer assistance for small enterprise enlargement, growth and renovation. There are fifteen hundred authorities sources to provide the needed assistance for small businesses. A place to start out searching for this data would be the SBA, or small enterprise administration office. You could find this in your cellphone e-book, online or the help desk at your local library. By means of the federal government you may obtain counseling, training to improve expertise to help manage and function your business. There are some types and guidelines which are to be completed. For some examples of those kinds and more detailed info you may read supply books on finding authorities as well as personal foundations. These books can be found at your local library also.

Cash and assistance are now not a concern. Lastly the government gives advisory companies to you. These providers will help you in improving your management expertise and labor administration relations. This is essential knowledge when beginning business.

There may be a lot the federal government can do that will help you get your online business up and running. It's just a matter of taking the time to search out your local sources and get the process started. Remember to benefit from these offers. It's not everyday someone will hand you free money that may go to creating yourself more money. So don't wait any longer, get the method started and you'll be properly in your approach to a flourishing, profitable business.

Friday, October 19, 2012

$10,000 Signature Loan Fast No Questions

The amount up to ,000 can be suitable for many purposes such as car purchasing, home remodeling, paying education, wedding, setting up any new business, combing multiple debts and so on. Out of the blue, your business will be collapsed then the main question crops up in your mind how to execute the mischief of business break down. In that situation, ,000 signature loan fast no questions is proved a great boon to get you out from any serious situation especially business collapse.

Deriving this loan you have no questions of pledging assets, displaying credit history, faxing foremost manuscripts. But for providing ,000 signature loan fast no questions, lenders have got quick and easy mode of providing cash. Lenders need only your signature on the signed activation letter. This kind of process carries you to meet the amount up to ,000. This amount is provided you on the basis of unsecured loans. That's why the repayment period of this loan is varied from 6 months to 7 years. The rate of interest is slightly higher than secured loans to cover the risk factor.

No quota of your security as home, jewelry, land, bank account, etc is necessitated for this kind of loan. Therefore, borrowers who are fear to lose their valuable property in the loan security; they can also apply for ,000 signature loan fast no questions and can get cash in no time. Borrowers with bad credit history can also entertain the benefits of this loan to enhance their low credit scores. If such borrowers repay the amount before approval date, they can find themselves in the good credit borrowers' calendar of the lenders and the next time of availing this loan. They are gifted with the feasible rate of interest.

To meet the terms and the conditions of this loan the applicant must be 18 years old in age; he must have a regular earnings source of at least 00 per month or he must be government jobber in any department. He must be the citizen of United State of America in current and possess an active checking account of at least 90 days old in any registered bank. The bank account is important part of this loan because this kind of loan is deposited directly into the bank account of the applicant with the help of online technique.

Thursday, October 18, 2012

Mortgage After Bankruptcy

It is easier to redeem from a bankruptcy today than it was years ago. Now, people are some-more open to the idea as bankruptcy is one of the best solutions in saving one's assets. However, recuperating from it in the viewpoint of the lenders is not easy. This is why one has to work hard in order to repair the damage to his credit scores right away.

Although one can still apply for a loan, it would not be auspicious for him. The lenders would offer aloft interest rates and will require a bigger down payment. This is because they want to protect their interests. If you need to apply for mortgage loan with your current state, afterwards you can. Just make sure that you take care of your credit scores and so that you can refinance it better in the future.

Here are some other options you can do in obtaining mortgage after bankruptcy.

Wait some time before you apply for a new mortgage. If it is possible for you to apply for a loan a couple of years after the bankruptcy, afterwards do so. This will give you plenty time to repair your credits. After you have softened your credit ratings for the said period, you will have some-more chance of subordinate for 100 percent financing. You will most likely be offering with the average interest rates.

If you need to apply for a mortgage right away, you will have to deal with down payments. You can borrow from friends and family. You can ask them to give you some-more time to pay them back. If you can arrange a much lower interest, afterwards do so. You can also seek the assistance of the different agencies. Programs like the Neighborhood Gold can help you with this. Other assistance will also help you with the down payment without requiring you to pay them back. Use your search engines to find such down payment assistance.

Identify how much you can spend. Most lenders will authorize as much as 28% of your pre-tax income. Many online lenders do this. However, you have to be honest with your financial assessment. You can be back in trouble if you plan to spend some-more than what you are earning.

You should also start pciking up papers that will show how much you are earning in a regular basis. These papers are essential when you apply for a loan as lenders will be checking on these.

Most importantly, look for the best lender online. There are lenders who are willing to lend certain amounts to those who have similar conditions. Compare the rates and the other mandate to ensure that you land the best deal for your current state.

It is not easy to obtain mortgage after a bankruptcy. Although that may be the case, you can still find financing. If you can no longer wait for two years, expect your interest rates to be higher. You will be asked to make a down payment as well. But do not worry. You can search online for programs that give this kind of assistance.

Sunday, October 14, 2012

The American Dream- Is Home Ownership Even Possible Anymore?

There are numerous individuals struggling in the current economy and as such it's becoming ever more difficult to attain the American dream of home ownership. While you may think that this dream is well out of reach it's likely that you just haven't found the right avenue to help you purchase that dream home quite yet.

While it is definitely a difficult housing market there are quite a few homes in and around Chicago for instance that are available at a very reasonable price. For individuals that have even some money towards a down payment and reasonable credit there is a definite possibility to purchase homes, apartments, and even condos for a lot less than you would think. Most people are surprised when they begin to look at the market because with so many properties being foreclosed on there are actually numerous opportunities available for home ownership.

And even in the current economy banks know that they will have to give mortgages to people at fair rates to help them to be able to afford to buy but they are willing to do so in order to get some of the properties currently on the market occupied. Of course, these days first time home owners have a leg up as most mortgage lenders would like to help people get into their very own home and with so many available they are offering numerous different enticing offers to those who are looking to buy in the current market.

Quite a few people are choosing not to sell very simply because prices have plummeted but this of course makes it a buyers market and offer some incredible deals especially to individuals who are looking to purchase Chicago homes or apartments. There are a wide variety of different homes to choose from and they range from inexpensive to elaborate depending on your budget and individual tastes.

It is a good time to purchase a home and if you're in the market, even if your credit is mediocre you should certainly consider taking a chance and applying for a mortgage loan. You might be surprised to come across that lenders are not as inflexible as you might think and that the American dream is within your reach. Everyone should have the opportunity to own his or her own home and if not in the lovely area in and around Chicago well then in just about any other city or town in the country. Prices are down and now is definitely the time to buy.

Friday, October 12, 2012

Instant Cash Loans: Important Factors To Keep In Mind

There was a time when talk of getting instant cash loans crossed dangerously into the realm of fantasy. That was the time when traditional lenders, like banks, still ruled with an iron fist and willingly set tough criteria from which they could make the best profits. But the arrival of the internet, and specifically online lenders, has change the situation completely.

Today, it is possible for some lenders to advertise guaranteed loan approval, but how is this possible? Well, the fact is that instant approvals are a reality and a guaranteed approval is too. This is because the approval process has been cut down to a mere few seconds, thanks principally to computer technology.

However, there are still criteria to meet, basic though they might be. And even if bad credit histories are ignored through the adoption of no credit check processes, the likelihood of securing a cash advance loan is extremely high.

Advantages of Instant Loans

Getting instant cash loans has real advantages, especially when time is of the essence and a financial emergency needs to be dealt with. Perhaps a medical bill needs to be paid, or a late mortgage payment reminder. Access to the required funds then, is essential.

And if there are fears over missing loan repayments, they are misplaced. The single repayment is automatically withdrawn from the bank account of the borrower, so there is no risk of defaulting on the loan. And of course, with guaranteed loan approval none of the concerns over application rejection can be put aside.

And since the approval on the cash advance loan takes only one hour, a 10 am application can see cash in the bank by 2 pm. It means that a financial emergency really can be dealt with by the end of the day.

Understanding the Costs

What should be considered carefully before starting the application process, however, is the cost of instant cash loans. The relief securing much-needed funds comes with considerable pressure to clear the same debt in as short a period of time as 14 days. Also, the interest rates that are charged are typically very high.

It is not unusual, for example, for rates between 20% and 35% to be charged. Lenders claim this is acceptable, partly because they are vulnerable without credit checks, and partly because the speed of approval is an advantage for borrowers. Of course, having guaranteed loan approval is essential in an emergency, so the cost can be worth it.

Still, the repayments can cause havoc with the rest of the financial budget. For example, at 30% a ,500 cash advance loan would cost ,950 to clear. When that much is take from one paycheck, it leaves very little over to meet the regular bills.

Choosing an Online Lender

Finding the best loan deal does require searching online. This is essential when getting instant cash loans, especially if the most affordable is to be found. Thankfully, the job is made simpler by comparison websites, which clearly lists and compares terms relating to interest, fees and other charges.

What should never be taken for granted is the promise of guaranteed loan approval. It is important not to be distracted by this feature, and look at the interest rates charged. Make sure to carefully calculated the figures and that they fit into your budget. But still, a cash advance loan is the fastest to access anywhere, so in times of financial emergencies, they are still the best option.

Tuesday, October 2, 2012

Eliminate Debt From Last Year's Gift Giving Season

The slowing economy took a turn for the better this past shopping season, as retailers reported an increase in sales compared to the same time periods of the past few years. Considering that many stores depend on the holiday gift giving season for up to 40% - 50% of their annual sales, this was welcome news.

Sadly, a majority of people were still using credit cards for a majority of purchases, increasing account balances that were already too high. For the ever-increasing online purchases, paying with cash is never an option. Now, the time has come when the reality of those higher balances appear as the credit card monthly statements arrive.

The upswing in sales is a direct result of rising consumer confidence. People believe their personal economy is going to improve. When that improvement happens, the bills will get paid. However, when someone's personal economic condition does not improve, the cycle of debt begins.

Unless a person can payoff their card balances within a few months, then the amount of spent on those 2010 gifts will grow as interest on those purchases continues to accumulate. That 00 spent on holiday gifts could balloon from 00 to 00 once those purchases, plus interest, are paid for.

The unfortunate truth is that most people never know how much money they are actually spending. Current purchases are simply added to previous balances, interest, future purchases, and future interest. When a consumer does not know the actual cost of purchased items, it becomes nearly impossible to know how those purchases fit into the gift giving budget.

How do consumers survive in 2011 when the debt begins to grow out of control? First, put away the credit cards. Use cash or debit cards. This helps you spend less than your income. If a family's monthly income is not enough to cover the monthly expenses, then that family cannot survive. Period. Difficult choices must be made on which expenses must be cut out their lives.

Secondly, eliminate the debt burden left behind. Many people continue to discover that debt elimination programs are very real. These elimination programs take advantage of consumer protection laws which have existed for many years. To accomplish this, it is again imperative that the commitment is made to live without credit cards. Just stop to imagine the saving if you were not losing money on interest payments. That's greater spending power for you.

When using cash or debit cards for your purchases, you are less likely to make that un-needed purchase when you can actually see the money disappearing from their wallet, or when there is not enough money in the wallet to begin with.

Using cash for a majority of purchases makes it easier to eliminate foolish purchases, and save money. When using cash, your conscious is clear because the decision not to buy an item is made for them, so the guilt about buying, or not buying, an item is relieved. No money in the wallet? Oh well, no new pair of shoes for me today. Walk away without the guilt of a larger debt load.