The practice of using the Internet to establish voice connections has become very popular in recent decades. Session Initiation Protocol trunking, SIP Trunking for short, is one of the most popular Voice over Internet (VoIP) protocols. VoIP is a system that allows you to make connections similar to those of a telephone through computer networks, that is, the Internet. SIP consists of connecting a company’s telephone system to a private branch exchange (PBX) through Internet servers. It is the most convenient communication solution within large business organizations.

The advantages

SIP Trunking offers several benefits that give it an edge over traditional phone services. The service is provided by an Internet service provider. A public switched telephone network (PTSN) provider uses physically wired connections. In contrast, a SIP trunk establishes physically invisible connections through the Internet network.

The other advantage is the cost involved. Initial setup is expensive for a business that already has a phone system. However, its long-term cost benefits justify the initial setup charge. Session Initiation Protocol Trunking offers multiple phone lines and numbers at better rates and shorter contract lengths. They also offer greater flexibility in their plans. SIP Trunking networks are easier to regulate and maintain. Not only this, by making a network completely internal, it offers the highest level of security that a company needs in the transmission of private and confidential information over the Internet.

Common errors and problems

Moving to SIP Trunking from a conventional phone system has several advantages and there is no question about it. But it also has its share of problems. All of these issues boil down to a problem with your computer, Internet service provider, or business network. And, at the base of everything, there is poor decision-making by the person in charge.

Switching to SIP Trunking is an important process and therefore the implementation needs to be planned properly. One cannot just assume that everything is in place and will work fine. The system needs to be monitored regularly. A strong network, a private PBX that handles calling features and phones, and a good connection to your ISP are all needed if you want to get the most out of your IP phone system. It is necessary to test the quality of the voice, since it has to be perfect. Therefore, negligence is among the top mistakes made by people.

The second mistake people make is choosing the wrong service provider for the job. The ISP provider you choose should offer SIP trunking services and be adept at managing complex telecommunications systems tailored to your business needs. An inexperienced service provider will make you regret your decision to opt for SIP service.

The third mistake people make with SIP Trunking is not paying attention to security measures. Not installing the required protections will facilitate malicious attacks and service theft. It also results in intermittent audibility and frequently dropped connections. Finally, choosing cheap hardware is a serious mistake that people make and it can lead to serious problems. For best results and services, you should use only commercial grade hardware and equipment.

Mortgage’s trial:

A foreclosure occurs when a property owner is unable to make their loan payments. If a homeowner can’t keep up with the payments, he simply has to relinquish the property to the bank that holds the mortgage on the home. A bank can initiate a foreclosure action against the owner. They may sell or repossess (take possession of) a property to recover the amount owed on a defaulted loan secured by the property. The rights of the owner of a property are lost due to non-payment of the mortgage. If the owner is unable to pay the outstanding debt or sell it through a short sale, the property goes to a foreclosure auction. If the property is not sold at auction, it becomes the property of the lending institution. Foreclosures are pretty straightforward sales because banks generally don’t want to be “home owners,” they want to be “lenders.”

Here are the five stages to foreclosure:

• Late payments:

Foreclosure is a long process, which varies from state to state. A repossessed property is a property that has already been taken by the bank. This stage begins when the homeowner falls behind on mortgage loan payments (or sometimes other terms of the loan). This is usually due to difficulties such as unemployment, divorce, death or medical problems. Lenders can wait for a second, third, fourth, or even more late payment before sending a public notice to the homeowner.

• Public notice:

After three to six months of late payments, the lender files a public notice called a ‘Notice of Default’ (NOD) with the County Recorder’s Office, stating that the borrower has defaulted on their mortgage. The notice of default and intent to sell must be mailed to the owner within 30 days of recording. This notice is intended to inform the borrower that he is in danger of losing all rights to the property and may be evicted from the home.

This NOD includes the property information, your name, the amount you are behind, the number of days you are behind, and a statement that you are in default according to the terms of the note and mortgage you signed when you purchased your home. .

The owner has a set period of time to respond to the notice and/or submit outstanding payments and fees. If money owed or other default is not paid within a certain time, the lender may choose to foreclose on the borrower’s property.

The next step for the lender is to file a notice of sale on the property. However, if the borrower catches up on their payments, the foreclosure process can be stopped.

• Before foreclosure:

This stage begins when the lender files a property default notice, which informs the property owner that the lender will take legal action if the debt is not honored. After receiving the notice from the bank, the homeowner enters a grace period known as “pre-foreclosure.” During this time, the owner can work out an agreement with the bank or pay the amount due before the mortgage is foreclosed. Pre-foreclosure property owners may participate in a short sale to pay off outstanding debts. If the borrower pays the default during this phase, the foreclosure ends and the borrower avoids eviction and the sale of the home. If the default is not paid, the foreclosure continues.

• Auction:

If the default is not resolved by the prescribed deadline, the lender or its representative sets a date for the sale of the home at a foreclosure auction (sometimes called a Trustee Sale). The sale of the Notice of Trustee Sale (NTS) is recorded at the County Recorder’s Office. The notice is sent to the borrower, posted on the property, and printed in the newspaper. At auction, the house is sold to the highest cash bidder, who must pay the high bid price in cash, usually with a deposit up front and the remainder within 24 hours. The winner of the auction will receive the deed from the trustee of the property. The executing lender sets an opening offer on the property, which is generally equal to the outstanding balance of the loan and any other fees. The money from the sale is used to pay foreclosure costs, interest, principal, and taxes, etc. Any remaining amount is paid to the owner. In many states, the borrower has a “right of redemption” (can recover outstanding cash and stop the foreclosure process) at the time the home is auctioned.

• Post foreclosure:

If a third party doesn’t buy the property at the foreclosure auction or there are no bids higher than the opening bid, the lender takes over. The property will be purchased by the attorney making the sale, for the lender. If this occurs and the opening offer is not met, the property is considered Bank Owned or Real Estate Property (REO). This occurs because many of the properties for sale at foreclosure auctions are worth less than the full amount owed to the bank or lender, or when no one bids on them. “Bank-owned” property is put back on the market for sale, usually listed through a real estate broker.

To arrive at their list of best-fit web pages, search engines use a combination of on-page and off-page factors to determine the ranking of specific keywords. On-page factors are those elements that can be evaluated directly from a web page document (such as title tag, keyword frequency, and also details about the website the page is on). Off-page factors basically refer to link-based analysis, or rather, analysis of web pages that link to that particular document.

Page Ranking Factors

How relevant is this document to the search query? This is determined through the following factors. Please note that I am putting only those that are MOST important:

title tag

The title tag reflects the content of the document. This is elementary, and yet many people get it wrong. How you refer to the document makes a big difference, and if you’re not putting your important keywords in the title tag, search engines will think this isn’t a relevant page (for those keywords).

For example, if you have a website about exercise equipment and one of the pages is a ProForm treadmill review, what do you think would be a better title tag?

* ProForm Treadmill Review >> URL.com

Prayed…

* URL.com >> Treadmills >> ProForm Review

The former is much better optimized for that page’s keyword term: “ProForm Treadmill Review.” The second will only confuse the search engine and as a result of the unclear title tag, that page would have ranked much lower.

Put your keywords (focused and specific to that page) first.

Use of keywords in the document text

Keyword density has been abused ever since search engines became popular. Search engines no longer measure density: they analyze your content for various types of ways your keywords are present (keyword concurrence, related words, keywords in tags (headings, style, image), keywords). as anchor text to other pages) and base your decision on it.

Using keywords correctly is difficult when you are also trying to write for your readers and therefore trying to maintain a natural flow in your writing. Most people tend to resort to search engine spam, forgetting their readers and writing highly optimized pages that are tailor-made for search engines but drive readers away.

The solution to this is to make sure your page topic is extremely focused and specific; This will allow you to talk in depth about one thing at a time: the optimal keyword usage you want will emerge from this kind of focused writing. .

Document Accessibility

Accessibility here refers to two things:

1. How accessible is your website:

* easy to follow links (simple html links, not hidden behind javascript redirects or embedded in flash)

* common navigation structure (menu)

* sitemaps (google and regular)

2. And how accessible are the pages:

* no extra-long URLs with multiple parameters (like [http://www.url.com/random.php?id=1&x=2&y=3..]. (and so))

* Keep all javascript code in an external .js file.

* Minimize the amount of flash and other non-indexable content on your pages.

Main theme of the site

The theme of your website is very important (usually determined from the main page, but also through an analysis of your web pages as a whole): for a search engine, the more focused the site is on a theme , the better it will be to provide information. on that topic – this knowledge, of course, is combined with link wealth (what everyone else is saying about that site) to give definitive answers.

keyword spam

In short, keyword spamming is the easiest and stupidest way to get search engines to discover your website. This includes keyword stuffing in meta tags, title tags, alternate image tags, etc. White-on-white text is also another form of keyword spam and is quite easily spotted by search engines.

Avoid keyword spam – You can spend your time doing something much more important, like adjusting your title tags.

Off Page Ranking Factors

Everything I’ve said about on-page factors is relevant, but the reality is that with an overwhelming wealth of links, you can overcome all of those factors (in most cases, just get the title tag right, use the word key once or twice in the text and boom, your link profile can take care of the rest).

Off-page factors are important because of a ‘real life’ analogy (link-based analysis) that Google brought to the world of search engines and that other SEs have subsequently adopted to some extent. Google’s analogy with the real world:

Links act as quality editorial recommendations/votes for web pages. As each “editor” is different in terms of knowledge, experience and main topic, these votes also have different values. Experience in an industry is measured by the number and quality of votes received.

This is democracy in search: a good idea in theory, but in practice quite unwieldy, especially given the temptation to game the system and create inflated link wealth by searching for links via spam blogging at one end and buying links. in the other one.

In this context, what are the key off-page factors that search engines consider most important?

link anchor text

The anchor text of links pointing to a web page is just as important as the title tag of the page itself. This anchor text acts as a quick identification mechanism of what the linked page is about. If you can somehow control your anchor text, you can ensure that you get optimized links.

One way to make sure you stay in control of your anchor text is to remember that when you’re trading/buying links, it’s more effective to give people the exact html code to insert into your website. People are lazy and for someone who is not very handy with html/site coding, this little step may be the reason you get that link.

Be sure to vary your anchor text considerably – use related words and extended keyword phrases as much as possible.

Links to documents from the internal pages of your site

This refers to the links that the web page obtains from the internal pages of the host website. Essentially, although internal links are not as important as external links for ranking purposes, they can give you a huge boost, especially if the anchor text is optimized and these links are within the content.

This is one way you can use to transfer your site’s link richness to your most important pages.

External links to the document

How many links does this page get from other websites? While your internal pages may not get many links from outside of your website, any page that automatically does has a strong chance of being ranked for your key terms.

When you’re trading links, getting a couple of links to your internal pages is always a good idea, especially if they’re focused on a popular keyword. Also, once you start creating good, linkable content, people who visit your website will gradually start linking to your pages as well.

Learn more about each of the above categories and apply for your own website. With a better understanding of on-page optimization factors and off-page optimization factors, you will surely increase your website’s search engine result placements.

When it comes to commercial real estate investing, investors often want to know what types of properties they should consider investing in. This article is about 5 groups of properties and the reasons why you should or should not consider them.

1.Earth: People who invest in virgin land often expect to buy farmland near commercially zoned land for a few thousand dollars per acre. They dream that their lot will be rezoned as commercial in the near future, which is worth hundreds of thousands of dollars or more per acre. People who convince you to invest in virgin land are often trying to sell you on this dream. While this dream actually happens as if it is possible to hit the jackpot in Las Vegas, the reality is that most investors lose money or get little return on their land investment. It is a very risky investment as the land generates little or no income. From an income tax standpoint, the value of the land does not depreciate, so you cannot claim depreciation. In addition to that, the interest rate on the land loan is also very high compared to other types of commercial properties. Therefore, each month, you would need to get money to pay the mortgage without charging anything. You should consider investing in land if

– Know how to develop in order to convert vacant land into a shopping center.

– Know exactly what you are doing and have a deep pocket.

– Own the land of a shopping center (you do not own the buildings).

2. Apartments: this is an intensive management investment as the turnover rate is high. Leases are short term often one year month to month. As tenants move in and out, you will need to spend money to prepare the unit for occupancy. Apartment renters tend to have a higher history of late payments than other renters, as they tend to be on a tighter budget. If you don’t like the headaches of dealing with lots of tenants, you probably want to stay away from apartments. The key to a successful apartment investment is

– Control or minimize expenses. This may seem like a trivial task until you see the list of expenses provided by the property manager. These expenses include: advertising, accounting, bank fees (for non-sufficient funds), capital improvements, money laundering allowance, cleaning, collection fees, garbage disposal, insurance, landscaping, legal fees (eviction), maintenance, administration of off-site property, on-site property management, pest control, painting, repairs, sweeping, security, property, utilities and water.

– Invest only in properties in a good location without deferred maintenance.

– Stay away from rent controlled areas eg Berkeley, Los Angeles.

Otherwise, you may end up with little cash flow or even negative cash flow. If high cash flow is one of your investment goals, you may want to stay away from apartments. In California, if you own an apartment with 16 or more units, you must have a manager on site. This further increases expenses. In general, apartments are easy to buy and more difficult to sell. There are always plenty of them in any market. The advantage of apartments is that they tend to have a high occupancy rate, as everyone needs a roof over their heads. Because of this fact, the interest rate on apartments is typically ¼ to ½ percent lower than other commercial properties.

3.Special purpose properties: These are properties designed for a specific business, for example, restaurants, gas stations, and hotels/motels.

– Restaurants: Some investors like to invest in brand name fast food restaurants like Burger King, Pizza Hut, Jack In The Box, KFC. These are single-tenant properties with a long-term absolute triple net lease that often do not require management responsibilities on the part of the owner. However, the rental income or cap rate for these restaurants is typically lower, in the 5-7% range. Emerging regional branded restaurants like Johnny Carino’s, Back Yard Burger, Zaxby’s or Tia’s TexMex tend to offer a higher cap rate in the 7-8.5% range. However, when you look deeper into the financial statements, they still may not be making a profit. Restaurant operators sell the real estate to investors with a higher capitalization rate and lease the property for 20 years. In turn, they use the proceeds from the sale to expand their business by building more restaurants. So if you are willing to take higher risks, you will be rewarded with high income with these pop-up restaurants.

– Gas Stations: When you buy a gas station, you buy both the property and the gas station business. Most gas stations also have convenience stores and sometimes multiple auto repair shops. Gasoline markup is set at 10-20 cents per gallon [many customers wrongly blame the high gas prices on the innocent gas station operators] but it is quite high for a convenience store. This is considered an owner-occupied property that qualifies you for an SBA loan with as little as a 10% down payment. If you are not planning to get involved in running gas station, car repair and convenience store business, you may want to stay away from gas stations as gasoline is a chemical that could pollute the soil. Once a leak occurs and pollutes the environment, it takes years and a lot of money to clean up the ground. You may even be liable for damages to adjacent property owners, as the contamination may spread to their properties. It is almost impossible to sell your property as no lender wants to lend buyers the money to buy it.

– Hotels/Motels: once you buy a hotel/motel, you buy real estate and a business 24 hours a day, 365 days a year. This business requires hard work and marketing skills to fill the halls. The rooms are worth nothing if they are empty. Business tends to be seasonal and can be immediately affected by economic downturns and political events, for example 9/11. Many of these properties are owned by Indians with the surname Patel, as they seem to work the hardest and know the business well.

4. Office buildings: These properties are single or multi-story buildings. Older two-story walk-up office buildings tend to have trouble finding tenants on the top floor, as many service businesses may have clients with physical disabilities who are unable to climb stairs.

– Single-tenant buildings: The properties are used as corporate headquarters for large corporations such as Cisco. These large buildings tend to be more sensitive to the economy. Once vacant, it is difficult to find a replacement tenant.

– Multi-tenant buildings: These properties are rented by small businesses, eg real estate, tax accountants. Investors who buy these properties want to spread the investment risks. When a tenant vacates a unit, he only loses a small percentage of the rental income.

– High-quality tenants: Most of them have good credit, many assets, and pay their rent on time when it is due.

– Leases: Office building leases range from full service [landlords pay property tax, insurance, maintenance and utilities] to NNN [tenants pay property tax, insurance, maintenance and utilities]. The NNN lease is a litmus test as to whether the office building is in high demand from tenants or not.

– Medical buildings: These properties are leased primarily by doctors and dentists. A good medical building should be across the street from a hospital. This makes it convenient for doctors to go back and forth between the hospital and their offices. Some investors prefer medical buildings as medical tenants are very recession resistant.

5. Shopping Centers/Retailers: These centers are mostly single story and can accommodate a wide variety of tenants: retail and service businesses, restaurants, doctors, schools, and even churches. As a result, this is the most popular type of commercial property sought after by investors. They are always in high demand as there are more buyers and fewer sellers.

– Multi-tenant strip: the advantage of this investment is that when a tenant moves, you only lose a part of the total income while you search for a new tenant. So you spread the risks on this property.

– Single tenant building: The advantage is that you only have to work with one tenant. Some of the tenants — Costco, Home Deport, Walmart, CVS Pharmacy, for example — sign a 10- to 20-year lease and guarantee their corporate assets that could be worth billions of dollars. This makes your investment very secure.

– High-quality tenants: Most of them have good credit, many assets, and pay their rent on time when it is due. They often sign long-term leases from 5 to 30 years so you don’t have to worry about finding new tenants every year. They keep their property in good condition and sometimes even spend their own money to make it look better in order to attract customers to the stores.

– Triple Net Leases (NNN): the leases of shopping centers are usually in favor of the lessor. Tenants pay a base rent and reimburse the landlord for property taxes, insurance, maintenance, and sometimes even property management fees. This takes a lot of risk off you as an investor. The NNN lease, in a sense, is a litmus test as to whether or not the property is in high demand from tenants.

– Land Leasing: Occasionally a shopping center is sold with a land lease. When you buy this hub, you only own the improvement, but not the land underneath. It could be a trophy property, but you should think twice before investing. Once the land lease expires and the landlord refuses to extend it, you own nothing! So it is easy to buy this center but very difficult to sell.

The neighborhood mall is the first level of retail investment property and is closely integrated into the community. The combination of tenants must be of a commercial convenience nature. That will be the key to your success.

When designing your tenant mix strategy for the neighborhood property, think about the convenience and basic needs of the immediate community. Is the surrounding community growing and how? What do they spend their money on and how often? Are they younger families or older retired families? These questions dictate how they will spend their money.

Sometimes, to really answer these questions, it is necessary to conduct a survey of surrounding households and families. They know the neighborhood better than you do and can usually tell you what the community thinks about the property and what’s missing.

Once you have the answers to these basic questions, you can continue your search for the right tenants. While you’re at it, pay due attention to nearby competitor properties and new real estate developments, as these will have an impact on your property.

Once you know who you want for your combination of tenants and property, it’s time to look for them:

• Set up your target companies by type. Since your property is convenient in nature, you will likely need tenants in the categories of fast food, produce, bakery, newsstand, pharmacy, hair salon, liquor store, smaller supermarket. Choose your tenants wisely based on the established business history of other properties.
• Cold call small family businesses in the area, and in particular competitor properties, as they are likely to be interested in talking to you about your offer. They will also tell you about the performance of the other properties. This market intelligence is invaluable.
• Follow up with property managers and franchise managers or retail franchise chains. Breaking into a well-known retail chain may require several follow-up letters and phone calls. The seeds of interest you plant today may take weeks or months to germinate, but consistency and persistence will get you through the door.
• Follow-up with supermarket chains for relocation or opportunity for new stores. The supermarket industry is highly competitive and most chains would like to prevent the opposition from entering their ‘patch’. Supermarket anchor tenant rents are lower than specialty tenants and they will be selective in paying their share of the cost of ownership, but you will get an anchor tenant for a long-term lease to support your property. Choose well.
• Pay attention to local media in new ways, with your ears and eyes open to business prospects. Even in a slow economy, there are companies that are successful. Convenience shopping doesn’t go away; it simply changes the priority and the offer to the buyer. Read the newspaper every day, listen to the radio, and watch your local TV stations not only for business news, but also for commercials from retailers that seem successful. You will find out who is growing, who is moving and who (due to his absence) is almost dead in the water.
• Use local phone books, the Internet, industry groups, chamber of commerce directories, and publications from local economic planning offices to find out who’s who in the market and who might be interested in moving. Make the calls and ask the questions. It’s the secret to building a great mix of tenants for your property.
• Visit other malls at different times of the week to examine the operations of potential tenants. Learn to think like your target retailer, understanding the strengths and weaknesses of the operation. Learn what it’s like to turn the key in that store and what it takes to stay in business.
• Always return all phone calls from a potential customer or an inquiry. A potential tenant with a dynamic operation may be prospecting you and your property. It doesn’t matter how outlandish or strange a person or an idea sounds. You can find some occupation gems among the strange and different ideas.
• Learn about their business patterns for the property in question, i.e. peak trading days, traffic patterns on the property, popular established tenants, how the community uses common areas, how parking allows quick access to the property for the convenient buyer.
• What is the brand of the mall? Do you need to do any renovation of the common areas? Tenants will not move into something that is run down, without identity, and poorly maintained. Poorly presented properties are a common problem in owner-managed facilities where the owner is inexperienced or on the smaller end of the investment scale. He must spend money on the presentation of the commercial property, otherwise the rent, the client interest and the tenant base will decrease.
• Existing tenants and potential new tenants of a property are likely to talk before making the decision to accept a new lease offer. Therefore, harmony and relationships with tenants are critical to future property occupancy and rental success. Happy tenants generally mean a well-performing property.

Understand how real estate leasing brokerage can fit into the big picture of the local mall. The leasing broker or property manager can always open the door to valuable prospects, but it’s also up to you to sell the mall and your future in the community. When you know the community well, you have the keys to a great mix of property ownership and performance.

America is officially in a recession. What is a recession? A recession is a business cycle contraction or general economic decline due to a significant drop in spending and other business activities. Most pundits and politicians will blame the Covid-19 crisis for the recession, but even before Covid-19, the proverbial writing was on the wall.

The United States had more than 120 months of economic growth, which was the longest expansion in modern history. Other indicators, such as the negative yield spread on Treasuries (long-term bonds with lower interest rates than short-term T-notes), pointed to an imminent turnaround in the business cycle and an impending recession. The only real question was: when and how bad?

Then came Covid-19… If the cycle was going to change anyway, Covid-19 acted as a huge and unexpected accelerator to make the recession that much more immediate and severe.

Inevitably, during recessions, all classes of real estate, including residential homes and condominiums, will be negatively affected as lower consumer spending and higher unemployment rates affect real estate prices and prices. marketing times.

Here are the six costly mistakes sellers of homes and other real estate make during recessions and how to avoid them:

Mistake #1: This will pass and the real estate market will be hot again soon

The first thing to remember is that real estate cycles are much longer than general business cycles. Even if the general economy recovers, which it always does eventually, a typical real estate cycle takes 10 to 15 years. The cycle has four key stages: upper, declining, lower, and ascending.

Consider the last real estate cycle, which lasted approximately 14 years:

• 2006 – Prices peak
• 2006 to 2012 – Price decrease
• 2012 – Prices bottomed (trough)
• 2012 to 2019 – Price increase*
• 2020 – Prices reach the top
• 2020 to? – Price decrease

*NOTE: In 2016, the National Residential Real Estate Price Index reached its pre-recession highs of 2006. The housing market took 10 years to recover.

The way to avoid this mistake is to recognize that real estate cycles take years to run and plan accordingly. Also, no one knows for sure when prices will top or bottom until after the fact.

Mistake #2: Low interest rates will cause the economy and housing market to recover

Between 2006 and 2011, interest rates (federal funds) were continuously cut by the Federal Reserve Board and went from low 5% to almost 0%. However, that did not stop the real estate recession and the depreciation of property values.

Low interest rates undoubtedly made the economic downturn and housing recession less severe and saved some properties from foreclosure, but it still took a painful six years for the housing market to bottom out and then four more years for investors to hit bottom. prices returned to normal. their pre-recession levels.

Some markets had never fully recovered. For example, residential home prices in parts of California, Arizona and Nevada are still below 2006 highs.

To avoid this mistake, one must realize that although low interest rates help stimulate the economy and the housing market, they do not cure them.

Mistake #3: I don’t need to sell right now, so I don’t care.

If you don’t need to sell until the cycle is over, which typically lasts more than ten years, then you won’t be as affected, especially if you have a strong capital position, limited mortgage debt and solid liquid assets.

However, it is good to keep in mind that “life happens” and professional or personal circumstances may change and we may have to sell the property before the recession runs its course.

Also, if a property has a mortgage and its value declines to the point of being “inside out,” meaning that the balance of the mortgage loan exceeds the value of the property, then the options of selling, refinancing, or even getting a line of capital credit, will be reduced. be significantly limited.

This does not mean that everyone should rush to sell their real estate if there is no need to, just be aware that circumstances can and often do change and ownership options will be affected, so plan ahead . As a wise proverb says: “Dig your well before your thirst.”

Mistake #4: I’m selling, but I won’t sell below my “bottom line” price

This is a common and potentially very costly mistake. Generally speaking, every seller wants to sell at the highest price and every buyer wants to pay the lowest price. Thats nothing new. When selling real estate, most sellers want to hit a certain price and/or have a “bottom line.”

However, it is important to understand that the market does not care what the seller or their agent thinks the value of the property should be. Market value is a price that a willing and able buyer will pay when a property is offered on an open market for a reasonable period of time.

Overvaluing the property based on the Seller’s subjective value or what is sometimes referred to as “aspirational pricing”, especially in a declining market, is a sure first step to losing money. When a property remains on the market for an extended period of time, maintenance costs will continue to accumulate and the value of the property will depreciate according to market conditions.

Additionally, properties with long time-to-market tend to become “stale” and attract fewer buyers. The solution is to honestly assess your sales goals, including your desired time frame, evaluate your property’s attributes and physical condition, analyze comparable sales and market conditions, and then decide on market-based pricing and marketing strategies. .

Mistake #5: I will list my property for sale only with the Agent that promises the highest price

Real estate is a competitive business and real estate agents compete to list properties for sale that generate their sales commission income. It is not unusual for the Seller to interview multiple agents before signing an exclusive listing agreement and go with the agent who agrees to list the property for the highest price, often regardless of whether that price is market based.

Similar to Mistake #4, this mistake can be very detrimental to sellers as overvalued properties remain on the market for extended periods of time, costing sellers expenses such as mortgage payments, property taxes, insurance , utilities and maintenance.

Also, there is the “opportunity cost” as the principal is “frozen” and cannot be used anywhere else until the property is sold. However, the most expensive cost is the loss in property value as the real estate market deteriorates.

During the last recession, we have seen several cases where overvalued properties sat on the market for years and ended up selling for 25-40% below their initial fair market value.

The solution is to make sure your pricing strategy is based on the market, not on empty promises or wishful thinking.

Mistake #6: I will list my property only with the Agent that charges the lowest commission

Real estate commission rates are negotiable and not set by law. A commission generally represents the highest transactional expense in the sale of real estate and is typically split between the brokers and agents working on the transaction.

Some real estate agents offer discounted commissions to induce sellers to list their properties with them. But does paying a discounted commission ensure savings for the Seller? Not necessarily.

For example, if the final sale price is 5% to 10% below the highest market value of the property, which is not that unusual due to improper marketing, poor pricing strategy, and /or poor trading skills will easily wipe out any commission savings. and actually cost Seller tens of thousands of dollars in lost revenue.

The solution is to hire an agent who is a “trusted advisor,” not just a “salesperson.” A trusted advisor will take the time and effort to do the following: 1) Conduct a Needs Analysis: Listen and understand your property’s needs and concerns; 2) Prepare a Property Analysis: Thoroughly evaluate your property and market conditions; 3) Execute Sales and Marketing Plan: Prepare and implement a customized sales and marketing plan for your property; and 4) Obtain optimal results: be your trusted advocate throughout the process and achieve the best possible result.

Finding such a real estate professional may not always be easy, but it is certainly worth the effort and will be worth it in the end.

In conclusion, this article outlines six costly mistakes real estate sellers make during recessions and how to avoid them. The first mistake is not understanding that real estate cycles are long and take years. The second mistake is the misconception that low interest rates alone will create a recovery. Another mistake is not realizing that circumstances may change and not planning ahead. Mistakes number four, five and six relevant to understanding market value, proper pricing and selecting the right real estate professional.

By understanding and avoiding these mistakes, real estate sellers have a much better chance of minimizing the negative impact of a recession while selling their properties.

Although homeownership is considered by many to be a major component of the American Dream, all too often, we witness many people not being sufficiently prepared and/or ready to prepare, from a financial perspective! When you identify how homeownership might meet your needs and aspirations, and make sure your choice is the best one for you, to make sure the process, from finding a home to closing, is as stress free, as possible! Given that, for most of us, the value of our home represents our single largest financial asset, wouldn’t it make sense to proceed wisely? With that in mind, this article will briefly attempt to consider, examine, review, and discuss 6 steps that could help in the process of preparing for many of the financial considerations involved, from the step of buying a home, to home ownership, one.

1. Do not add more debt/credit: If you really want to own a home, in the lead up to your search/search, make sure you avoid taking on more debt and instead try to pay off all debt. , you currently have. Your overall credit is key in determining whether you qualify for a mortgage and, if you do, whether you’ll qualify for the best possible rate. Evaluate your credit report, correct any errors immediately and address any weaknesses. Do it yourself or hire a professional to better position yourself in this area!

two. Pay off existing debt: Mortgage lenders/home financiers use various ratios to determine their decisions as to whom to lend funds to! They consider one of these significant factors to be the percentage of one’s total debt to income. To prepare, use the lead up to your quest to pay off this debt!

3. Check credit report: Take your credit and your credit history seriously! Before you begin, obtain a copy of your report and review it carefully for errors, mistakes, or matters that require explanation. Either go through the process yourself, to fix them, or use a professional, to make sure you’re better positioned. Take a look at your FICO score, know what it takes, and work to improve!

Four. Build/accumulate the necessary funds, necessary to Deposit: Although, in most cases, it might require 20% Deposit, To qualify for a mortgage loan, there are, today, certain loans, which require less. However, when you deposit less, you will have to pay more each month and it can be more difficult to qualify! Take the time, between the moment you make the decision, to search and, when you find, the right house, for you and your needs, to save so much money, so that you are ready and prepared!

5. Prepare for contingencies/Reserves from 3 to 6 months: When you buy a house, there are often many unexpected expenses, etc. It is wise to prepare for contingencies and create various financial reserves, including for repairs, renovations, appliance repair, major components, and unforeseen employment interruptions. Three to six months’ worth of money should be reserved for these considerations!

6. Bookings: When you have all the reserves you need, you significantly reduce your potential, stresses and unnecessary tensions!

Congratulations on making the decision to buy a home. Now proceed, wisely!

Have you ever felt like a home just doesn’t feel right? Or that he had bad vibes? Sometimes the signs of good and bad Feng Shui are not so obvious. What makes Feng Shui good and bad in a home is described below. You can use them as a general guideline when buying a home.

Even when it comes to Feng Shui, it’s still location, location, location. Why? Because you can’t change it! You can change the price and condition, but not the location. So that’s where we’ll start:

1. Used? Good Feng Shui if the previous owners move to a bigger house, get a job promotion and move or win the lottery – these would all be good energy.

2. Lot: Wider in the back or square is good Feng Shui. Reverse circular batches are not. Square or rectangular shaped lots are considered ideal.

3. Dead End: Make sure you are not at the T-junction of the dead end to the road; this is considered bad Feng Shui. You will end up getting glare from headlights in front of your house at night.

4. Fire Hydrants: You can’t have the ones in front of the house: Bad Feng Shui, as it represents your wealth being ‘washed away’.

5. Bedrooms: should not be located above the garage, kitchen, or laundry room. Also, beds must not share a common wall with a toilet. Ideally, master bedrooms should face north and the bed should be against the south wall facing north. Also, there should be no mirrors on the other side or next to the bed.

6. Bathrooms are not allowed over the dining room or kitchen. (This would seem like a no-brainer: no leaky toilets during my turkey dinner!)

7. Home office: It should be in the southeastern part of the house. The morning sun brings good energy and the southern sun provides daytime sun to keep you energized throughout the day.

8. Houses facing south and north are ideal.

9. The flow of the home matters. The entrance door should not open directly onto the stairs above or below. The front door must also not ‘see’ the back door (have a direct line from the front door to the back door). This allows the chi or energy to walk directly through the back door. The energy must be allowed to flow back and forth throughout the house. You also don’t want to see the fireplace from the front door.

10. The kitchen, nor the stove, should be in the center of the house. The kitchen should also not face the door of a toilet (bathroom). This door must be closed at all times.

11. Office desks should be backed up against a solid wall, not a window. A desk or bed should also not face an angled wall.

12. Living too close to a cemetery brings pain to the air, not a good thing.

The goal of Feng Shui is to balance all aspects of our lives by creating an environment that has good chi or energy. You can do this by first searching for a house that fits the location aspects. The interior of the house can always be changed. But the more you know about good energy, or Feng SHui, in advance, the sooner you’ll be able to recognize it in your next home.

Happy house hunting!

For those looking to get into real estate investing in today’s market, there is a unique way to earn profits without the need for cash or credit, and without the risks or headaches of owning rental property. In this article, I’ll show you how you can put unsaleable homes under contract subject to the existing mortgage, and then assign the contract to a buyer who has been unable to qualify for a mortgage. Your profit is on average around 5% of the purchase price.

This is NOT Mortgage Assignment

One of the latest fads making the rounds on the internet right now, and the email inboxes of many investors, is a concept called Mortgage Assignment. For those unfamiliar with this, it appears that you are just assigning a mortgage from one person to another. Note that this is not the same as a mortgage assumption in which the lender legally transfers responsibility from the seller to the buyer. Rather, a mortgage assignment is nothing more than assigning the payments to the buyer, while the seller holds the mortgage in their name. In the Mortgage Assignment program, the underlying transaction remains a dirty deal for the existing mortgage. In any case, the seller of the property is still in trouble, credit-wise, if the mortgage is not paid. What you will do is find sellers who are willing to sell their property subject to the existing mortgage and market that property to a buyer who has some cash, but may not qualify for a mortgage under today’s more stringent underwriting standards.

Why you don’t need to be a real estate agent

One of the first questions that comes up is how can you do this without being a real estate agent? Well, it’s simple. What you will do is get the seller to agree to you placing a call option on their property. You will market his interest in the property to other buyers. This is not unlike marketing your property to buyers as a FSBO.

Description of offers “subject to”

In a “Subject To” or “Sub2” offer, you are purchasing the property subject to existing financing. This means that the existing mortgage will not be paid. If there is equity in the home that the seller wants to collect, the buyer would need to have the cash on hand or the seller may agree to make the payments in the form of a second mortgage. Typically, a Sub2 deal is done when there is little or no equity in the property, because the seller is unable to pay the mortgage at closing, or pay fees and commissions, or both. The alternatives to this are a short sale or foreclosure, and neither is easy or pleasant.

The biggest problem one faces with Sub2 offers is something called the Expiration of Sale Clause. What this means is that when the property is sold, the lender has the right to claim the mortgage due, which means the buyer would have to refinance the seller’s property facing foreclosure. However, in the experience of almost all Sub2 investors, not once has a mortgage been required to mature on the sale. Many gurus teach all sorts of tricks to prevent the lender from being notified of the sale, including a land trust and deed contract, but others will teach you to be honest with the lender and not lie or hide anything. The way a lender usually finds out about the sale is not when the new deed is recorded, but when the homeowner’s insurance policy has a new owner. In my Find and Assign package, I explain the sale expiration clause in more detail and why it’s not something you need to worry about.

The seller’s dilemma

Right now the market is perfect for making Sub2 assignments. Many homes are now underwater, which means the seller owes more on the mortgage than the home is worth. There are sellers who can no longer afford their mortgage payments and are struggling to make the payments each month or are behind on their payments and facing foreclosure. In Find and Assign, I have a matrix showing the various options a seller has to dispose of their property, along with the costs of each. If you can show a seller how they can walk away from their property and make mortgage payments without hurting their credit, you have a motivated seller who is receptive to your offer.

The buyer’s dilemma

In the past, all you had to do to get a mortgage was fog up a mirror. This means that you simply had to be alive! Banks and mortgage companies made loans to anyone who could fill out an application. There were undocumented loans, declared income loans, and subprime homebuyer loans. Initial payments are as low as zero. Fast forward to today. Now, you must prove your income, provide two years of tax returns, bank statements, and have a credit score above 680. What we have now are buyers who a few years ago could get a mortgage, but now they can’t. . Therefore, you are in the perfect position to sell unsaleable homes to unloanable buyers, all by simply having the seller make a purchase option subject to the existing mortgage and assigning this deal to a buyer for a assignment fee. The new buyer gets the deed at closing and pays the closing costs.

find sellers

There are many ways to find sellers, including posting ads on Craigslist and newspaper classifieds. A sample ad might say, “We buy homes with little or no equity. Don’t make any more mortgage payments.” A great way to find sellers is to call real estate agents and ask them to provide leads on those who want to sell but can’t because they can’t muster the cash to make a deal. You can offer the agent a referral fee. If the agent is honest and says they can’t accept a referral fee, you can still legally pay the agent by having the agent become your buyer’s agent. When you get the house under contract and then assign the contract to the final buyer, at the time of settlement, the agent will receive their legal fee, depending on what you agree to. In Find and Assign, I review many other ways to find vendors for the Sub2 Assignment program.

find buyers

Of course, you need buyers to complete the deal and make money. You can find buyers by posting ads that say “Buy a house that doesn’t qualify for a mortgage. 10% cash needed.” You can run these ads on Craigslist and newspaper classifieds. You can also call mortgage loan officers and ask for leads on those who want to buy a home but can’t qualify for a mortgage. What you may have to do is simply give these loan officers your information and ask them to give it to would-be buyers. You can offer a fee to the LO on any deal you make.

Writing the Agreement

There are two ways to do this. One way is to write a simple real estate purchase contract, where you write “and/or assigns” after your name. In the purchase price section, you would write the price, then “subject to existing financing as detailed in Appendix A. In the appendix, you would list the balance of the mortgage(s) on the property and the existing monthly payment.” no special forms are needed. It’s just the wording you should use. The second way is to write a purchase option on the house, using the same theme for the language. It would then assign the purchase contract or option to the new buyer. If you use a purchase agreement, you need to make sure you have the right escape clauses in place that allow you to walk out of the agreement if you can’t find a buyer. You do not want to actually buy the property. And that’s what the contract says. With a purchase option, the seller is giving you the right to purchase the property, but you are not required to do so. If you can’t find a buyer to assign the property to within a 90-day period, you just walk away.

When making these deals, there are also some statements that must be signed by the seller, namely disclosing the fact that the sale is subject to the existing mortgage and that the mortgage will remain in your name. It also discloses the potential of the Expiration in Sale Clause. What I always suggest is that before you start on this, find a real estate attorney who has done Sub2 deals before. You can find one the same way I did, on Craigslist! In Find and Assign, I share with you how I did this and what questions you should ask. You may also need a title agency to close the deal, and I cover that at Find and Assign. Your real estate attorney should also know which one to use.

Close the deal

All you really have to do is get the end buyer to write you a certified check for your assignment fee after doing your due diligence on the property, including a title search, inspection, etc. The title search will show you any and all liens that are attached to the property, along with judgments on the owner and any back taxes that are owed. You can use any title agency to do a search. The fee would be around $60 or less. You can have the buyer do this or have the seller do it and make it available to potential buyers.

When you have a buyer for the property, you want to refer them to your real estate attorney to close the deal. In this way, you have done your part to unite the two parties and thus earn your allocation fee. The key is to have a real estate attorney involved in these deals and not try to close a “kitchen table.” You don’t want the seller or the buyer to approach you because you didn’t reveal everything you should have. If you do this right, you can make a reasonable income by assigning just one or two properties per month. If you search online, you can find just about anything you need on forums and other sites. There are no special forms, other than the purchase option, the purchase option assignment, the purchase agreement, and of course the CYA disclosure form. Other forms that are involved are an Authorization to Release Information and perhaps a Power of Attorney. If you find a real estate attorney who has done these deals, this person can provide you with all the forms you need.

Learn more

In my Find and Assign package, I give you much more detailed information on how to do Sub2 Assignments. This is all in one of the bonus packages in the form of a 42 page guide, plus all the forms and agreements you need, including a very detailed disclosure form. I teach you many ways to find sellers and buyers, and even show you how to have others search for properties for you with no money up front. Along with this, you get a PowerPoint package that you can use with vendors, along with other helpful tools and resources. There is no need to spend hundreds of dollars on courses or workshops. Once you understand how to find buyers and sellers, and know what forms to fill out, you can get started with very little cash. All you really need is the motivation and dedication to place ads online and what to say to callers from your ads. In Find & Assign, you even get scripts and information to send to sellers and buyers.

There are tons of loans available for real estate investors. One type of loan commonly used by investors is the hard money loan. These loans allow investors to purchase and repair investment properties. If used correctly, it can definitely put money in your pocket right away. But keep in mind that there are some pitfalls you’ll need to avoid in order to be successful. Here’s how Hard Money works and what you should be aware of.

1. Scope of Work: For these specific types of loans, lenders will require the investor to provide a scope of work sheet. Every repair he plans to make should be noted on this sheet. The scope of work worksheet is what the Hard Money lender will use as a guide to pay for the project. If repairs are made that are not on the worksheet, you may have trouble getting the money back from the Hard Money lender. The lender will want to see everything in writing to make sure everyone is on the same page. Lenders will typically allow investors to change the scope of work in the middle of the project if possible and necessary.

2. Requirements: Most hard money lenders now want a 20% investor discount on all projects. The lender will also want to see reserve money at a bank. The monthly income of the investor will play an important role with the lender in the approval of the loan. Credit score is a factor, but they don’t require a stellar score to approve a loan. The last hard money lender I used didn’t even get my FICA score, they just wanted to see a copy of my credit report, which I was able to request for free. There will be requirements for the value of the loan, but each lender will have their own set of guidelines.

3. Overestimated repairs: Repairs on an investment property are always just an estimate. When rehabilitating a property, nothing goes according to plan. Overestimating the repair that must be done to be covered if repairs are added later in the rehabilitation. If you did a good job with the initial inspection and no further repairs were needed, you can return the money or keep it. If you decide to keep it, don’t spend the additional funds. Keep the extra money as an additional reserve.

4. Process – The process of receiving money for repairs is called a lottery. After your contractor completes a percentage of the work, he will call your hard money lender and tell you that he is ready for an inspection. The lender will send an inspector to verify that the work has been performed and completed within code guidelines. Once the inspector approves the lender, the lender will release funds equal to the amount established for the cost of the work. For example, if he listed carpet repair $1,500, painting $1,200, and new light fixtures $100; When the inspector marks all the items: The lender will write you a check for $2,800. He can now understand why it is important to have all the repairs and costs listed on the worksheet. If the repairs are not listed, you will not be paid. Typically, the lender will give you 3-7 inspection dates, depending on the size of the project. Unless he can convince the contractor to start work without putting up any money, he will have to put up the money to get started. Expect to receive payment from the hard money lender through your drawing checks.

5. Refinancing – This is the most important part of rehabilitating a property through a hard money lender. Hard money loans are short-term loans with high interest rates. These interest-only loans will carry an interest rate of around 15%. That may seem high, but these types of lenders understand how important it is to make money and get out. We need these companies to rehab properties if we can’t finance our own projects. Hard money lenders realize the risk they are taking, which is why lenders ask themselves “WIIFM” (What’s in it for me?). They compensated with a high interest rate for the risk they took. Hard money lenders expect you to sell the property quickly for a profit, or refinance it into a long-term loan and rent it out to a tenant. Whatever your exit strategy is, make sure you do it fast. Hard money loans typically mature in full 6 to 12 months after origination.

Hard money lenders have enabled many investors to make money on real estate. These types of lenders are more flexible compared to the traditional ones. They allow investors to make things happen when no other lender wants to take a chance on them. Their guidelines are losing and allow an investor to spread their wings. These types of loans are expensive, but can allow for more deals due to the amount of money they have access to.