By not getting in touch with a professional broker, you miss a lot more than you think. Brokers are useful sources of information. They are in the industry for a long time and can assist you with tips, suggestions and ideas. They also know the market trends better than you.
Before you make a decision to become an agent, talk to licensed agents out in the field. Consider what they say about their earnings, brokers and how friendly or unfriendly the local market is to agents. Many areas simply cannot support the number of Brokers and Agents trying to eke out a living there. In California, for example, it’s said that there are more Real Estate Agents than Lawyers and less than a third of them actually see a profit.
At any rate, stay away from “war zones” with large tracts of run down, vacant houses, high crime rates, etc. These areas can be tempting because people do live there (generally renting) and the ratio of rental income to property values provides the landlord with a much nicer “spread” than is achievable in nicer areas. Some investors literally make a fortune in these neighborhoods. However, it’s probably the toughest segment of the business to operate in. And, alas, 90% of us cannot pull it off.
Raise your retails – Do some comparison shopping and raise your prices. You’re in business to make money. Provide good service and customers will pay a little more.
To have a chance at getting approved for a commercial loan, you need to have the income to prove you can afford the payments, and a down payment of at least 20% of the loan. Also you need to have a good credit score. A bad one may not cost you the loan, but it will cost you thousands of dollars with higher finance charges. To fix that simple go with a credit repair company. Credit repair is fast, simple, and effective.
There have been times we have suggested a seller just pay the tax! Sometimes depending on your particular situation it may be a better route to just pay the tax. For example: You have a pension and social security and just want a junk of money in a safe CD. The gains tax is 15% of the difference of your basis value less capital improvements. Your gains tax is much less then income tax, but the cash flow decreases to whatever the CD offers.
Be sure your inspector specializes in what you want him to do. In this case, make sure they specialize in residential / home inspections (instead of commercial property inspections).
Insurance companies often appraise homes based on what it would cost to build a similar home today. This determines the replacement value. Often, the cost of replacement is more expensive than the cost of purchasing an existing home. After all, the cost of entirely new building products is high.