Real Estate and Homes Real Home Services and Solutions

20Aug/16Off

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8Jul/16Off

How Does a Special Warranty Deed Work

imagesThe seller has several types of deeds, which he can prepare when he decides to sell his property and therefore, his right of ownership. A special warranty deed is one of those deeds, along with the bargain and sale deed, the general warranty deed, and the quit claim deed. This deed, one can say, is a slightly modified version of the general warranty deed.

As the definition will doubtlessly tell you, it is a deed in which the seller warrants or guarantees the title only against defects arising during the period of his or her tenure or ownership of the property. This could be against claims and demands made by him or her and all persons claiming by, through, and under him or her. The grantor does not warrant against any title defects that existed before he or she owned the property.

How it Works

In a general warranty deed, the seller or the grantor promises a set of six covenants. These covenants state that the seller is willing to defend the buyer from any problems related to a bad title to the property, that may have arisen any time since the property has come into existence. Now clearly, there is a dodgy bit of detail as to why the current seller should protect the buyer from a bad title which is not really his doing. If the previous resident and owner gave it a bad title, there is no reason for the grantor to defend it. This sort of arrangement is not realistic at all, more so when the property for sale is a pretty old one and has passed through several hands.

With the special warranty deed, the grantor assumes as much responsibility as he or she ideally should. The grantor promises to remove any encumbrances that may arise due to his ownership, or if he is responsible for a bad title. Such deeds only include the covenant of seisin, the covenant of the right to convey, and the covenant against encumbrances caused by the seller. The other covenants for title are not usually included.

In a way, this sort of deed is more favorable to the buyer than say the quit claim deed or the bargain and sale deed. Unlike the quit claim deed, this document provides a modicum of protection to the buyer. It gives the buyer a bit of security that if the present grantor has conducted some sort of business, all the buyer has to do is point the finger in the direction of the grantor and he will subsequently take care of everything.

Usually, such deeds are not accepted by the buyer when there is a mortgage on the property. They are most commonly employed in property transactions where the seller did not own or occupy the property for a significant period of time and also by executors and trustees.

The special warranty deed form, by way of certain covenants, does promise to save the buyer from any encumbrances that may arise on account of bad title, but restricts the liability only up to the present grantor. The bad title creation by previous owners still remains a matter which the buyer has to make do with.

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19Apr/16Off

Investing in Commercial Property

download (22)In the aftermath of the real estate property market meltdown, people were naturally averse to taking risks, by investing in residential and commercial property. As a seasoned investor would advise you, in such bearish times, there are a lot of opportunities to take advantage of. With the real estate prices hitting rock bottom in recent times, many properties can be bought, at a fraction of the price they would have earned during boom time. While there is substantial amount of risk involved in buying commercial property, with proper research and wise choice, there's profit to be made. At the outset, let me expound some of the advantages of investing in properties of the commercial kind.

Advantages of Investing in Commercial Property

Commercial properties primarily include office spaces, shops, storage warehouses, industrial spaces or any other piece of real estate that is leased out or used for commercial purposes. Location and space are two of the prime requirements of businesses and leasing a property is a much more affordable option for them, instead of buying it. This presents commercial property investors with an opportunity to make substantial profits.

One of the prime advantages of investing in commercial properties are the long leases and high rent that owners can earn. Compared to residential properties, commercial ones tend to maintained a lot more professionally, which automatically reduces expenses. The high percentage of return on investment, in excess of 8% to 9%, justifies commercial real estate investment.

Properties in prime locations can expect an annual hike of 3% to 4% in rent, which guarantees higher returns in the future. By handing over the maintenance and administration to a commercial property management firm, you can simplify your life and reap profits in the long term. Commercial property that are located in prime business zones are always in demand and hence you can expect a decent resale value in the future, when the prices in that locality appreciate substantially.

Commercial Property Investment Tips

You need to appreciate the prime importance of 'Location', when it comes to investing in commercial real estate. Businesses are looking for office, shop spaces, warehouses with all the necessary amenities and resources in their vicinity. So choosing a commercial space in the right location is the first important thing and it requires a substantial amount of market research to find such properties. You will have to network with real estate agents, who have a database of such properties on sale.

Decide on how much you are willing to invest, which will automatically limit your choices and help you focus on what kind of properties you can afford to invest in. Once you have shortlisted a few properties, determine the asking price and the projected returns through lease, after accounting the maintenance and taxation costs. If you are thinking of buying commercial property and plan to arrange for the investment corpus through a mortgage loan, do the math and determine the profits you will gain in the future after maintenance costs and loan installments. If the math shows you that the investment is a feasible one and you are guaranteed that your principal is safe with decent returns, go for it!

If you have a commercial space in a prime location, there is always going to be demand from businesses and the chances of your investment being highly profitable are higher. Work out the yearly maintenance costs for the property, research every aspect of the investment thoroughly before going ahead. Here's me wishing you all the very best for your commercial property investment endeavors!

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1Mar/16Off

Things You Need to Know Before Buying Property Overseas

download (21)Did You Know?
Spain, France, and Nova Scotia are favorite destinations among Americans looking to invest in a property overseas.
You are on a vacation to a European or South American destination, and you love everything about the place. The weather is nice, food is great, people are hospitable and friendly, it is not crowded like New York or London, plus the prices are comparatively low by American standards. You like the place so much, that you've considered living here. If not that, at least buy a decent apartment or a condo, so that you can visit whenever you like.

Purchasing a property overseas is exciting, but only after you are clear about one rule - the heart should never rule the head where money is concerned. Also, it is essential that you follow the right procedure, and avoid using any unfair means in securing real estate. Consider doing all the things you would do if you were buying real estate in your homeland. Here are some tips that you can follow.
Know the Market Thoroughly

Be aware of rising and falling trends of the market. Knowledge about the rates can be helpful if you want to buy when prices are down, and sell as soon as the market sees an upward trend. Also, some countries have strict rules that prevent or limit property ownership to foreigners. Hence, it is good to know whether or not you have the legal right to purchase property in that country, to avoid any scams or disappointment. It is important to do your homework before stepping in the market of an alien country.
Beware of Impostors
The global real estate market is filled with impostors who con people, and often get them involved in a financial and legal mess. Even so, this doesn't mean that everyone you come across is a thug, but being aware of what is right and wrong is a smart move. If you are dealing with a real estate agent who does not carry business cards, and does not have an office, he/she is probably someone you should avoid. Also, there are certain countries that don't regulate their real estate industry; hence, agents don't even require a valid license. Be extremely careful here, and proceed only after doing thorough research.
Only Purchase What You See

Real estate agents are idealists. They will make you dream about well-built roads, world-class amenities, and other facilities that are nowhere in plain sight. The catch here is, once you have signed the contract, you are the owner of the area and the illusions surrounding it. I have nothing against agents here, but it sounds risky to invest your hard-earned money for just barren land. Consider all the things that can go wrong here. Hence, only buy what you see.
Always Seek Professional Assistance

Great deals at an affordable price can be achieved if you buy a property directly from the owner. Nevertheless, don't forget that you are in a foreign land, and taking the help of a reliable professional can be useful to avoid various pitfalls when buying property in a foreign land.
Signing a Contract

Never sign a contract that you don't understand. Always ask for two versions of the contract - one in English, and the other in the local language. Bring along your legal adviser to confirm that the English version is a true translation, and does not contain any errors, extras, or omissions. Read the contract thoroughly, and ensure that you and the seller both agree to the different terms and conditions decided.
Try to Pay Cash

If you really like the property and know that this is the final deal, try paying the owner cash. It is a tough decision to take, but it is important to understand that financing mechanisms, like mortgages, aren't as stable in foreign countries as they are in the US. In most European vacation spots, property transfers are mostly done in cash. For those who can't do without a mortgage, seek the help of your real estate agent and lawyer to know more about such destinations.
Verify the Title
In the US, if you acquire a property you get a warranty title that states you are the legal owner. However, in countries outside the States, this title can create quite a problem. This is highly possible in European countries. You see, World War II had created many boundaries in the world, and it is quite possible that once you purchase the property, a recent descendant of the family can suddenly appear to claim his/her property. The situation sounds dramatic, but it can surely happen. This crisis can be avoided by taking the help of a notary. A notary can help verify legal documents, and also ensure that there are no gaps in the property's history, and you are the rightful owner.
Knowing the Native Language
Relocating to a country without knowing its native language can get quite difficult. The best thing to do is to join a language course, and get things in motion soon. However, if you are not up for this challenge, a better idea would be choosing a country where English is spoken in large numbers.
Valuating the Property
Property valuation is an important step, especially in a foreign land. You need to know all the pros and cons of the property before signing the papers. Hence, ensure that an independent valuation of the property is carried out in your presence.
A Local Bank Account is Necessary
You will have to open a bank account in the country where you have chosen to live, and apply for a Certificate of Importation, so that bringing in money from your home country won't be a problem. Also inquire about online money transfer facilities, so that you can pay the bills and taxes associated with the house from time to time.

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22Jul/16Off

Gift Deed

As we all know, where the word 'deed' is involved, we are no doubt dealing with something related to property and real estate. But while this may be the most popular context of this word, a deed is an important bit of documentation where transfer of a certain right is concerned. The right of ownership, or indeed its transfer, requires every bit of documentation which it can get, and hence, deeds are more popularly seen and heard of in this context. Moving on to the issue about property, a deed is usually used to indicate that the seller is giving away his right of ownership over a property to the buyer, for certain consideration. But with a gift deed, you're going to have to scratch out the last bit.

Explaining a Gift Deed

If you have any inkling of knowledge about the Contract Law in most countries, you will know that contracts without any consideration (cash or kind) are considered null and void, save for a few exceptions. Let us take an example to explain this slightly complex statement. When you want to get a new house, you go to a homeowner who no longer wants his, and quote a price so that the homeowner should relinquish the ownership. So this 'consideration' from the point of view of the seller is the cash he gets, while the consideration from your point of view is the ownership of the home. Furthermore, the contract law in most countries doesn't recognize deals done without consideration for both parties and where there is only one benefactor.

Except in the case known as a 'gift'. When one person 'gifts' his large, plush, and priceless property to another, he receives nothing in return by way of consideration or compensation. The receiver of this property pays nothing. The consideration here is said to be 'love', and hence, the contract stands fulfilled.

When you give your immovable asset to another person, which is, you grant your right of ownership over an immovable property to another, for no consideration, or in other words 'for free', the gift deed is the piece of documentation which records that. The deed shows that the buyer has received the property for no consideration, as a gift and its ownership for all practical purposes, rests with him.

The Format

A deed is a legal document, which means that it needs to follow a certain format, and can be contested in the court of law. Being a legal document, there are a few things to be kept in mind when drafting it.

The deed is drafted by the person giving the property as a gift, or the donor. It speaks of his willingness to give that specified asset away, in return for no consideration and completely out of love and affection for the person receiving the gift, or the donee. The donor's signature is often not enough, and signatures of witnesses are essential. While the number of witnesses may vary depending on the rules of the state, normally two witnesses are enough to seal the deal. The witnesses, of course, cannot be people who have material interest in the property themselves, and as such, need to be disinterested parties that stand to gain nothing from the contents of the deed. For example, the donee cannot pose as the witness as he directly acquires the ownership as a result of the deed. Lastly, it also contains the signature of the donee signifying his acceptance.

A gift deed is basically made when deals without consideration for immovable property are made as they serve the basic purpose of establishing the transfer of the right of ownership.

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17Jul/16Off

What are Deed Restrictions?

Be it home buying or selling, you have to carry out several formalities for the transfer of ownership. This may include a lot of paperwork, visits to the court, and other legal formalities. If you are thinking of buying a house or a plot for constructing property, along with all these formalities, you also need to think about obtaining and going through an agreement known as a deed restriction.

About Deed Restrictions

These are written documents, which relate to the conditions of using the property. These restrictions can include anything that is not supposed to be done using the property, or to the property itself. A good example of a deed restriction is a restrictive covenant. The conditions mentioned in it can differ based on the builder of the property, the type of real estate, and the location. For example, a developer may put restrictions regarding the number of floors in one building, what materials should be used for the construction, the building's distance from the street, and business carried out from the premises.

Developers may even mention the materials to be used in making fences around the house, how many or what kind of pets can be allowed in the house, if surrounding trees can be cut, certain conditions for gardening and landscaping, etc. Similarly, there can be many such restrictions mentioned in the deed. Remember that the conditions remain with the property, and are to be followed by all property owners.

Who Carries Out Their Enforcement?

In case of land with subdivisions, the builder or developer initiates the restrictions on the property. After he prepares the restrictions, he then files them at the county office for them to be operational on subsequent property owners. However, the entity who prepares them should keep in mind, the comfort of the homeowners. Generally, the homeowners' association is responsible for supervising: if people follow the obligations properly. However, in order to oversee these restrictions, there is no formal authority as such.

Who Should Follow Them?

They are to be followed by all subsequent owners of the property/real estate. If you are thinking of buying a home, it is necessary to obtain a copy of the deed restriction from the seller/realtor. You may find some deeds overly restrictive, which may affect the quality of living.

You also have the option of obtaining a copy from your respective county's courthouse. When you are buying the property, you have to follow the obligations mentioned; and when you are selling the property, you have to make sure that the property buyer follows them carefully. If the home buyer is thinking about removing such restrictions, he should get them released from the parties, who enforced them initially.

Deed restrictions are written agreements that are drafted for the purpose of maintaining the quality and value of the property. However, the maker should consider, if the living conditions of the real estate would be appropriate after the restrictions are enforced. If you have any doubts, it is recommended that you get in touch with a real estate agent, who will explain to you all the details regarding the same.

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2Jul/16Off

Tenancy by the Entirety

A concurrent estate is a legal concept that describes the various methods, through which a real property can be owned by more than one person. It is the specific type of ownership (of a concurrent estate) that determines the rights and liabilities of the concerned parties. So it is highly important to understand the basics of the different types of concurrent estate, before choosing the right one. There are many different methods of owning a property jointly, like joint tenants in common, joint tenancy with the right to survivorship, and tenancy by the entirety.

Salient Features

It is one of those types of joint ownership of property, which is recognized in some states only. Tenancy by the entirety is meant for married couples, but in some states, legally registered domestic partners are also allowed to form this type of concurrent estate. According to this concept, the spouses are treated as a single legal entity and each spouse owns the property as a whole and not in the divided form. While in some states, the transfer of title or ownership of real property to a married couple is presumed to create a tenancy by the entirety, in other regions, it has to be specifically mentioned in the deed.
Each spouse has equal rights to enjoy and possess the property that is jointly owned by them as tenancy in the entirety. Only real property comes under the ambit of this provision. In some cases, even personal property is found to be included.
As in case of joint tenants with the right of survivorship, tenancy by the entirety too attributes a right of survivorship on each spouse. This means, on the death of one spouse, the other is entitled to the entire interest in the whole property.
However, the parties cannot unilaterally make any decision to sell or divide the property or to end the tenancy or to dispose off the property by will. Any decision regarding the property must be the joint decision of the spouses.
In case of a divorce, the tenancy automatically gets converted to tenancy in common, wherein the parties will be entitled to individual shares in the property.
One of the greatest advantages of tenancy by the entirety is that this type of concurrent estate can be a protective shield against creditors of any one spouse. In other words, the creditors cannot touch a jointly held property as a tenancy in the entirety.
However, this clause is applicable to those debts that are contracted outside or before the marriage and not those that are contracted within the marriage. It may happen that a spouse with a huge personal debt inherits property as tenancy by the entirety, then also the property may be seized. If one of the spouses file a petition for bankruptcy, then also the property will be shielded partially.
Another important aspect of this clause is that if the debtor spouse dies, then the lien cannot be enforced against the property, which will be owned by the non debtor spouse. But in case the debtor spouse survives, the lien can be enforced against the whole property.
In short, a tenancy by the entirety is meant for married couples, who acquire their interest in the property at the same time and through a single title. Both spouses must have equal interests and the right to possess and enjoy the property. This type of concurrent estate may not be touched by creditors. However, such property cannot be partitioned, as per the request on any of the parties. If one of the spouses disappears or becomes incompetent, then the other may find it difficult to transfer the property. If you are interested in this type of concurrent estate, try to understand the state laws regarding this concept. Seek legal advice from an expert lawyer and understand the pros and cons beforehand.

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26Jun/16Off

Buying Real Estate With No Money Down

We all know that most of the funding for real estate transactions come from mortgage loans, as cash buyers are very rare. Most of the lending institutions require the borrower to arrange for a down payment (usually 20% of the purchase price), as a condition to secure the loan. So, an average home buyer has to make this payment, and then qualify for the home loan. In other words, you must have at least 20% of the purchase price, for securing a loan, to buy that property. Is it possible to buy the property with no money down? Yes. You can go for real estate investment with no money.

'No Money Down' Concept

As mentioned above, borrowers have to make provision for down payments, in case of mortgage loans. Then, what is the meaning of no money down? Does it mean that you don't have to make the down payment on a house? No. It denotes a down payment that is remitted with none of your money. In other words, the concept of 'no money down' simply refers to a down payment that can be made by money, which may be borrowed from friends or relatives or from a money lender. In short, you don't have the money to make the down payment, but you borrow it from other sources. So, the concept of 'no money down' actually means a down payment made with money obtained from other sources. It can also be termed 100% financing, as you are buying real estate with none of your money.

How to Buy Real Estate With No Money Down

Now, you know that even if you resort to the concept of 'no money down', you have to make the down payment, but with the money obtained from other sources. What are the other sources? Here are some guidelines regarding the possible sources, from which you may obtain the money for down payment.
The easiest way is to borrow the required amount from your friends or relatives. You can pay them back in installments.
Another option for buying real estate with no money down is seller financing. The seller may agree to make the down payment, so as to sell the property as soon as possible. It may also happen that some sellers agree for a down payment, which is remitted as monthly payments with a higher interest rate.
You may also take over the seller's existing financing as part of the purchase price for buying commercial property with no money down. In other words, you can buy the property in return of making the mortgage payments of the seller, regarding the concerned property. This will be beneficial for the buyer, if the interest rate of that loan is lower. However, make sure that you go through the documents of the existing loan, as some of the loans have a due on sale clause, which inhibits the new buyer of the said property from taking over the mortgage. However, the lending institution may not exercise this clause, even if it is incorporated.
There are some rental properties that are attached with an option to buy. In such cases, a lease option to buy home or option agreement is made, in which the owner of the property and the lessor agree for a specific sum to be paid at regular intervals and the latter is allowed to use the property. The lessor can purchase the property within the lease period for a predetermined price. It has been observed that a partial or total rent will be adjusted towards the purchase price.
Sometimes, personal property or professional services of the buyer can be used as a substitute for down payment.
Another option for buying real estate with no money down is to get a partner, who can dole out money for the down payment.
You may borrow against insurance policies or other property. You may also apply for down payment assistance for first time buyers.
Negotiate with the lending institution for a 100% financing. Otherwise, you may also opt for a second home mortgage loan, that can be used for down payment.
However, it will be always better to have a good idea of the various options, before adopting any of them. You have to think of the pros and cons, and then decide.

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20Jun/16Off

Real Estate Investing Business Plan

Real estate is one of the booming sectors and everyone wants to make a mark here. There is a lot of competition and only those with vision, passion, and the ability to work hard can achieve this success. In this field, one of the most important things a businessman should be aware of is a business plan. It basically includes creating a written outline that evaluates the economic viability of your business venture based on real estate investment. It helps you define your objectives, i.e., what you want to achieve from this particular venture. It also helps you to focus on your goals, aims, and targets.

A carefully designed plan can also help you attract more lenders, investors, and banks. It makes you look neat, professional, and reliable, which is very important for the investors so that they can trust you and believe in your abilities. It also helps you to find out probable weaknesses and shortcomings in your plan that you can improve. Mentioned below is a template for it that would help you to create one on your own.

Main Elements

Executive Summary
In this section, you are supposed to write the long-term vision and mission of your venture. Here, you should provide the reader with a brief introduction to the entire business plan. As the name suggests, you should pen down the overall plan in a summarized manner. You must also mention your objectives and start-up details, along with some general information about your business.

Company Background
In this section, you should write about the entire history of the company, the people associated with it, and its journey so far. The kind of ownership of the company, something about its owners, achievements of the company, etc., should also be mentioned here. If it is a new company, then why and how it is/was established, who is it inspired by, etc., should be mentioned.

Market Research and Business Strategies
Here, you should write about your target industry, customers, and real estate financing status. You should give the detailed description of the real estate investing industry you wish to work with. Apart from this, you should also mention about your understanding about the industry and how you would like to work with a difference. You should also write about the business model you have already established or planning to design. Also, mention the strategies you have formulated for the same based on your market research analysis.

Marketing Plan
Here, you should mention everything about this aspect, including how you are going to market your new venture. Provide detailed information about promoting and marketing strategies, including which medium you will choose to advertise, how frequently you would engage in this activity, how much budget is allotted for advertising, etc. And to decide these things, you need to study the opponents, identify your USP, and plan accordingly. All these aspects have to be mentioned, so that readers come to know about the viability of your business plan.

Financial Plan
You must write how you are going to start this venture and from where the initial money is coming. You also need to mention the probable profit and loss you are expecting. You must describe the entire begetting plan with adequate details. Also, mention the sales projection and implementation strategies of all the projects. This helps the investors ensure that you are not involved in any illegal activity and that it is safe to be associated with you.

Assumptions
In this section, you would mention the assumptions related to your business venture and the industry. For example, you can make assumptions about the interest rates or growth rates, etc., based on the background research of the industry and your business plan. This helps the investors to understand your confidence level, as well as your risk calculation abilities. It also provides them a chance to know about your thinking process and your perception about the industry.

Management Summary
In this summary, you should appeal and motivate the people to work with you. This is quite similar to the closing statement, where you should mention that goals are realistic and you have the manpower and strategies to reach them. You have to write this last piece in such a way that your faith in this venture should be reflected clearly from your words. You should use promising and regressive language that would make the readers live your dream.

You can personalize the above template as per your needs and choice. Use a catchy and simple language that is easy to understand. A rightly and precisely designed and formulated business plan is sure to fetch great success to you.

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10Jun/16Off

Tips For Buying a Commercial Property

If you are considering investing in brick and mortar and are thinking of buying commercial real estate, there are many points of consideration. Unlike any other investment, putting your money here, can be a tough decision to make.

Investment Tips

Commercial real estate investment is all about creating a cash flow generating asset and all your efforts need to be directed towards ascertaining its potential value. It's no secret that these are times of economic recession and the real estate market has taken a beating. However, if you think optimistically, this is a time of opportunity, as a piece of real estate, which was beyond your reach in boom time, can be bought at a substantially lower price today. Here are the major points of consideration, while purchasing a commercial property. These are certain pertinent questions, which need to be asked, that help you assess the profit potential of a real estate investment and make your choice simpler.

What Kind of Property are You Looking For?
Even before you can start thinking about this investment, you need to have a plan about the revenue generating mechanism or business plan, that is going to reap cash for you, through this investment. Are you planning to buy a rental property, business premises for your company, or a shop? If you make up your mind regarding this, you'll know what type of property to look for. That will simplify your search.

What's Your Budget?
The next thing to ponder upon is to come up with a maximum purchase limit. If you are planning to make the purchase using a mortgage loan, then you need to decide on the maximum down payment, that you could make. A knowledge of your purchase limit will see to it that you don't go overboard, when negotiating on price and land up in a soup. Start looking for banks that offer commercial real estate mortgage loans, once you decide the property, which you plan to buy. There are many financing options to choose from.

How to Search For Them?
There are various channels through which you can search for such properties. Online and print classifieds are a place to start your search from. Approaching a real estate agent is one of the best ways of searching, as they have extensive databases of properties for sale. They can find you a property, that fits within your price range and requirement. Be on the lookout for properties being auctioned.

How to Evaluate the Revenue Potential?
When it comes to evaluating the value of real estate, with respect to commercial gain, location matters. Consider what is the scale of profits, that you can hope to make, from those premises. If it's a rental establishment, calculate what is the cash inflow. If you plan to open a shop or your company office there, location is the most important factor.

Ensure that title of the property is clear and get an architect to evaluate the structural solidity of the building, if it's an old one. See if there are any pending tax payment issues associated with it. Get a real estate consultant to provide you with a valuation of the property, according to current market prices. This is known as an appraisal. When all of your homework is done and you choose a property, make an offer to the seller yourself, or via his real estate agent.

Negotiate for a fair price and arrange for a mortgage if the deal goes through. See to it that all the legal formalities are handled properly. A real estate attorney can handle it for you. Once you buy the property, you could either opt to manage it on your own or let a management firm handle it for you.

To sum up, leave no stone unturned in evaluating the earning potential of a property before you buy it. If the potential is substantial, the risk you take while opting for a mortgage loan, is lessened.

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5Jun/16Off

Adverse Possession

There are many rules and regulations regarding acquisition of land by adverse possession. Till today, this method has helped many people own properties around the world without buying them with their own money or making any kinds of investment. In the next section, we shall know more about this method of real estate possession.

When is Adverse Possession Possible?

In order to become an owner of a piece of land by this method, a person needs to actually possess it by physically using it. The claimant must have something to show in court which will prove that he has actually utilized the land. For instance, if as a user of the property that belongs to someone else, the person has paid taxes on it regularly, it might be considered by some courts. There is a statutory period which is the number of years for which the person needs to hold the land in order to claim ownership for it.

Hostile possession of land which means the person claims its ownership and occupies it in opposition to the owner's true rights is one approach that can be taken. The application of the person for permanent ownership of land can be rejected if he does not have exclusive possession of the concerned land. The claimant needs to hold the land personally even though there is opposition from other people.

Understanding the meaning of exclusive possession of land is important for all those who wish to benefit from the laws related to adverse possession. One can prove exclusive possession of land easily if he has made any significant changes to the property such as building a fence, leveling the plot of land or any other construction work on the plot.

The claimant needs to establish his intention to possess the land during the time he was controlling the land. Most states allow possession of land to a person who has lived there for 10 to 12 years at a stretch. Many places require people to be in possession of the land for 15 years. However, one must note that this requirement (number of years of possession) can change from one place to another. So, confirming about the same from local authorities and knowledgeable people would be a good idea.

Getting the property back is possible for the real owners from the person occupying it by approaching the local court with proof supporting their statements. At some places, adverse possession may not be considered hundred percent legal as it involves getting the property without making payment for it. There have been instances when cases have been filed against people for making false or illegal claims over properties of other people.

Another thing to note here is that claims of possession cannot be made against council owned land. This is really a very complex process and may require much more time than expected. So, do not be in a hurry to get the desired results and be patient so that the entire process is completed smoothly. The claimant or the owner must take help from real estate attorneys and realtors for clearing doubts. The Federal laws, rules and regulations related to it are subject to change anytime and hence one should keep an eye on the latest real estate news.

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20May/16Off

Land Investment Advice

It must be noted that land investment does not mean investment in property. Land investment means investment in land without any construction over it. The piece of land or real estate that has certain construction or structure on it has been classified as property.

Mark Twain jokingly once said that, one should buy land, because its production has been stopped. In a literary sense the statement is hilarious, and from the point of view of economics it is a fact. Land which is one of the most important resources, is needed for the simplest purpose - human existence.

Demand and Supply Analysis of Land

Land has an inelastic and non-growing supply, and at the same time it has an infinite and ever-growing demand. In simple words, the total area of land in the world is limited. In short, higher demand and limited supply of land has escalated the land prices throughout the world. There are several reasons such as vicinity to amenities, utilization resources, cultivable characteristics of land, or other such features tend to escalate the cost of land even more.

This is also the reason for the different price levels in the different parts of the country. The rule of thumb is the more convenient and resourceful the land, the more is demand for it and vice versa. More demand means that the price of the piece of land is going to steadily rise.

Hence, as an investment, you will need to hunt for a piece of land that has very good value projections. To do so, you will have to conduct some market research and analysis. While researching, there are a couple of channels such as realtors and estate planning experts, who you can approach if you are dealing in a mammoth investment.

Locations and Features of the Land

The best pointer to the value projection of a particular piece of land is its features. When you decide to invest in land, you will have to look up and research the different features of land. First, the geographical and geological characteristics have to be observed such as is it an industrial, barren, agricultural or mountainous piece of land.

Usually the barren and mountainous piece of land would not get much of a high price projection. The second aspect is the significance of the surroundings. For example, if the plot of land is situated on one of the main roads of the city, then the projection is magnificent, if it is situated near an industrial belt then you got a lot of returns, if it is barren and still next to or in the vicinity of an urban region, then again there is good chance that you have struck gold there.

The features of the land itself, and even the ones of the surroundings is a great pointer so as to learn how much will the value of land will increase. Your analysis should thus be precise and in detail. Hollywood Boulevard is one of greatest examples of how the features of land and its surroundings affect its price. Reading more and more real estate investment tips, land for sale columns, and land investment advice that appears in the newspapers, magazines and websites will certainly help you a great deal.

Mortgages and Loans

One of greatest worries of buying a plot of land is the financial consideration. There are three things that you can do to make the investment a really rewarding success. Point number one, get in touch with banks and public lenders and get pre-approval of the real estate loan. Calculate the installments, closing cost, add up potential interest rates and then, compare the same with your research. If you feel that the investment cost is much lesser than the sales costs that you are anticipating, then the purchase is worth it.

The best thing about land investment is that the demand and price are always going upwards, and there is going to be no dearth of potential customers once you decide to sell the land. There are many options that you can execute even before selling the land, for example you can develop the land, or construct an entire set of buildings or some houses, or some commercial place before selling. Developing a farm or any other commercial place before selling that one piece of land is also a great idea to have a side business, till you decide to sell the place.

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