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Basics of Real Estate Law

Real estate is such a broad topic. This topic covers almost the whole world and every individual has concerns regarding this.

Like any other things in this world, certain laws govern real estate, the so called real estate law. Nevertheless, to fully understand what real estate law is, it is necessary to define real estate. What is real estate?

Real estate is a legal term that includes land along with anything permanently affixed to the land such as buildings, fences and things attached to the buildings, such as plumbing, heating, and light fixtures. The properties not affixed are regarded as personal property.

Just like real estate, the real estate law is such a broad topic as well. If you are going to discuss it in a very simple way, real estate law is only the law, rules, regulation and other legal matters that governed real estate.

Real estate law entails things like owning real property, the typical restrictions imposed on owning real property, the common forms of property ownership and many others. As said earlier, it is very broad.

In this article, real estate will be discussed through the basics of real estate law. The basics of real estate law include understanding real property, the ownership, the restrictions, and the forms of property ownership. The basics discuss the topic regarding ownership of real estate.

Understanding its basics, you will definitely have the right thought about real estate law.

One of the basics of real estate law is real property. What is real property? Real property is simply the real estate. The real property is used interchangeably with real estate.

However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from the real property, referring to ownership rights over real estate.

Real estate also entails about owning real property. What is owning real property about? Owning real property allows you the right to do with the land as you please aside from those subject to restrictions imposed by real estate law.

Owning a real property means you can do anything with it such as use it; give it away; sell or transfer it; use it for a collateral for loan; bequeath it to intended beneficiaries or let it sit where it is without doing anything to it. In other words, owning real property is having total rights on a land and no one can ever question you for it is yours.

In owning a real estate, some typical restrictions are being imposed by law. There are countless laws that restrict what you can do with the real property. It may be federal, state, county and local laws. The enforcement of these laws resides with the various agencies.

The most common restrictions imposed by government are zoning. It is an environmental hazard, public easement, right of way.

If there are restrictions imposed, there are also forms of property ownership. These are joint tenancy; tenancy in the entirety; sole ownership; tenants in common and community property.

In joint tenancy, two or more people own the property at the same time in equal shares. In tenancy in the entirety, some estates have especial form of joint tenancy when the joints are husband and wife- with each owning one half.

In sole ownership, the property is owned entirely by one person. Two or more persons own common tenants’ property at the same time. Meanwhile, community property is only recognized in the estates. It is a special form of joint tenancy between husband and wife, each owning one-half of their properties. Upon death, the decedent’s interest passes in a manner similar to tenants in common.

The basics of real estate are the best information needed in order to understand real estate law. With this basics information, although real estate is very broad, you have the capabilities of understanding it into its deeper sense.

Investing in Rental Properties

Many people say that what you know best, you are able to do best, but this is not always the case. Most people that are in the business have an idea of how to evaluate the rental property, which are mainly residential housing properties. This is because they have had the experience of comparing mortgages and getting a buy to let mortgage is not really much different.

Since many home owners have rented houses before, or have bought or sold a des res house before, they generally are good at evaluating real estate. In this case, investing in rental property is a good idea and it proves to be beneficial, but it might not be for everyone. You should not try to get into this business if you are not interested in it; by being enthusiastic about the whole thing you might find that your job is slightly easier. There are other pressures, such as you may need a buy to let bridging loan if you do not have the finance to complete your transaction.

The prices of houses are often too expensive for many couples, young or old, but seen as they have no choice but to find a place to stay in, many of them turn to renting instead. Sometimes you have to save up forever in order to buy a house for you and your partner to stay in and if you are planning on having children in the near future, you will have to think of that too so buying a bachelor flat won’t really help your situation. Renting houses may be one of the soundest regions of investing, especially for the average family.

When it comes to investing in rental property, there are other aspects that need to be taken into consideration before you make the final decision. First of all you have to find the correct residential housing in your area or an area that you know is good. The key factor that one has to remember when they are considering investing in residential property is the location.

After you have that sorted, next is making sure that it is a fair deal for both parties. Next is having the correct attitude towards investing in residential property, you have to have the nature to be a good landlord to your tenants. Once you are sure of that, make sure you have sufficient equity to guarantee a superior cash flow. You should also make sure that you have enough funds to pay for the property should there be no tenants for a long period of time. Then lastly, you need to ensure that you have funds for maintenance and any repairs the property might need and the landlord is responsible for. This will all depend on the agreement between the landlord (you) and the tenants.

If you are interesting in investing in residential property with a buy to let mortgage or remortgage, you have to understand that you might have tenants that are unable to pay their rent from time to time. This is not always that case, it happens sometimes and you are going to have to be able to deal with it accordingly. You shouldn’t be too hard on them if it only happens once but then again if you are too soft they will think it’s alright to do it again. It also depends on what kind of relationship you have with your tenants. But remember that you have to be strict to a certain extent.

Real Estate Marketing

When most investors talk about real estate marketing their main objective is to generate more sellers calling them or as a method to find more buyers for a property they are selling. Since most investors struggle in finding properties to buy wholesale we’ll focus on real estate marketing to find motivated sellers.

The biggest mistake real estate investors make is becoming one dimensional in their lead generation. And “one” is the loneliest number especially in real estate marketing because if something goes wrong and what you’re doing stops working you are screwed.

Another to phrase it “Would you rather have one way to find motivated sellers or ten ways to find motivated sellers?” The goal with your real estate marketing is to have multiple ways to generate leads so there is always a surplus of potential deals and sellers.

An important part of successful marketing is standing out and being remembered. Have you ever noticed the wild headlines in the National Enquirer? It is no accident that this is the number one selling periodical in print. Do you know who Howard Stern and Rush Limbaugh are? Howard and Rush understand marketing and this is why they make the big bigs.

In your real estate marketing I want you to remember the following:

“Love me, hate me, but never tolerate me!”

If your real estate marketing is so bland and boring that you are tolerated don’t waste your time or money. You want to be be loved AND hated because that is what great real estate marketing does. Ok, let’s go over several real estate marketing methods that you should be using.

* Real Estate Marketing Method #1

Business Cards. You’ve got to let people know what you do and when you are networking it is natural to exchange cards. Use both sides and make sure you’re card stands out and will be remembered.

* Real Estate Marketing Method #2

Car Signage. I’ve had magnets and my entire car done up with vinyl lettering. As much as I’d like to tell you that it was great real estate marketing and generated a plethora of deals I simply can’t. But what it did do for me was increase my credibility and nobody wonders if you have the money when your car is plastered with “I Buy Houses. CA$H!”

* Real Estate Marketing Method #3

Yellow Pages. There was a time when the yellow pages were a consistent and steady source of my lead generation. But with the arrival of the internet a phone book is almost obsolete. Still, in some rural areas it may be worthwhile bit in most metro’s I would be cautious about committing to many dollars to this form of marketing.

* Real Estate Marketing Method #4

Letters & Postcards. One of my favorite forms of real estate marketing. Even with rising postage and terrible delivery from the post office a well written letter or post card can be a very lucrative form of marketing. In fact a well written mailing piece is something you can literally live on for years.

* Real Estate Marketing Method #5

Yard signs. These days everybody has seen the “I Buy Houses” yard signs and they are a great tool to use because they work. Be aware that they are not cheap, have a short lifespan, and can be illegal to place in many areas. Because they are effective many real estate investors have signs placed out on Friday and collected early Monday morning to avoid the city sign Nazi’s. Another effective way to use yard signs is to place them on properties you own, are buying, or vacant houses you want to buy. Some people leave cards on vacant houses so when an irate owner of a vacant house calls just let them know you left your card at their house, it was 18″ X 24″ and said I buy houses. They’ll laugh and now you have a seller to talk with plus the sign is working the neighborhood for you! Remember what I said “Love me, hate me, but never tolerate me!”

* Real Estate Marketing Method #6

Web Sites. In this day and age they are a requirement and I recommend one for buying houses and one for selling houses. When you have your own websites there is no limit to the number of words and pictures you can use. Many sellers want to check you out before calling and a website can be your silent 24/7 workhorse.

* Real Estate Marketing Method #7

Newspapers. Can be very effective and inexpensive/cheap depending on the area. In large metros it may not be cost effective to a daily ad in the paper but in other areas being in the paper is a great form of real estate marketing. Ideally you want to be in the paper 7 days a week. Most calls come on Friday-Sunday editions but you may be the only ad running on the weekdays. Just one deal will pay for itself for several years.

* Real Estate Marketing Method #8

Radio. As you grow and become more aggressive you’ll want to consider the radio. I’ve ran ads and even had a weekly radio show in Phoenix Arizona. The key to success on the radio is bribing customers to call you by offering a free report, free widget, or something of value.

* Real Estate Marketing Method #9

Television. Similar to radio and a possibility for you to consider. When you start to deal with TV and Radio advertising make sure you can track the response rates and measure the results. Could be extremely effective or a real estate marketing bomb.

The most important thing to remember for your real estate marketing is to be diversified and have several methods working for you all the time. And just like fishing the more lines you have in the water the more likely you are to catch a fish and eat dinner.

If you are starting in real estate investing read “Real Estate Magic 101 - How To Get Rich In Real Estate Even If You Are Dead Broke!” This unique book should be read by every person considering a real estate career, whether it be as Realtor, investor, or developer. Especially impressive is the amount of detail and how to advice that can be found in the book including samples on real estate marketing.

Mortgage Broker- How To Spot A Good One

With a spontaneous attitude inherited from my father I’ve always enjoyed learning new things and exploring ideas. My latest search for something different and unique has brought my attention to the profession of being a mortgage broker.

From both ends of the spectrum I’ve witnessed colleagues of mine who wanted to try their hand at bring a mortgage broker. One end had tremendous success while the other end held the remains of broken dreams of big money. I was curious to find out what made those that succeeded succeed and what made those who failed fail. I’ve now gathered that there are a few key things that a successful and sustainable mortgage broker should have.

First, as a top-notch mortgage broker, I wanted to be a premier solutions provider who understood the individuality of each mortgage situation. A lot of times people seeking to obtain a mortgage a herded in and out of mortgage brokers’ offices like identical looking cattle. I wanted to create a unique and memorable mortgage exploration experience.

I know that may sound corny or clich-ish but people tend to be loyal to people that use a more personal approach to business. And in a life filled with personal shoppers, preferred health care providers and the like, I wanted to be my clients’ personal mortgage broker.for life.

Familiarity With My Business Was A Must

In order for a mortgage brokering career to be in the cards for me I would need to know my craft. If my clients had heard about it and then came and talked to me, I wanted to be one with them.

Truth be told I really had a desire to possess an abundance of mortgage knowledge. So much so I often saw myself delivering answers to questions that hadn’t been asked yet by my clients.

Be An On The Spot Johnny

When large amounts of money are involved-especially when I’m spending money, I expect a certain level of accessibility from whatever professional I may be dealing with at the time. So true is this when dealing with your mortgage broker too because if he isn’t reasonably accessible to you who knows if you’re getting valuable service.

Now I haven’t decided if becoming a mortgage broker would be a good fit for me, but I have seen what I’ll be looking for in my mortgage broker of choice when it’s time to settle on a permanent home. I hope you’ll use at least some of this when finding a right-fit mortgage broker for you and your family.

5 Elements to Jumpstart You Into Real Estate Investing

So, you wanna be a real estate investor, but aren’t sure where to start. You’ve heard all the stories of people becoming self-made millionaries through real estate. You know that some of the richest people in the world have achieved their dreams through real estate and you want to be next. If you are thinking about getting involved in real estate investing, this article is for you so please read on.

Being a real estate investor can be extremely exciting and lucrative. Whether you want to be a full time real estate entrepreneur or just invest in a few properties to make some additional income, real esate investing can help you achieve your financial goals. It is something that can be done full time or part-time while working another business or job. The opportunities in real estate investing are endless.

What exactly do you have to do to become the next Donald Trump? Here are the steps I would recommend to any individual wanting to make the leap into the exciting world of real estate investing.

1. Invest in education. Take a real estate seminar and learn the basics of how to buy and sell property. The risks are too high not to be educated. The last thing you want to do is to go out and buy a property and lose money. You must know the rules to find good deals. All deals aren’t good and all houses aren’t meant to be bought. You will want to get familiar with the local laws and regulations on buying property in your area or any area you are interested in.

2. Join a local REIA (Real Estate Investors Association). This will give you to the opportunity to network with other real estate investors in your area. Always go to the meetings early to network with as many people as you can. You will get many helpful hints from experienced investors and learn many tips that will help you in your own business. You may even find a mentor or a partner for you deals. Many REIAs also have special opportunities to get in on some good deals. REIAs are a great opportunity to be in tune with what’s going on in your local market and meet great contacts.

3. Set goals. Decide what you want, write it down on paper and set a plan to achieve it. For example, you may want to figure out how much money you want to make in a year. Break it down to a monthly goal and see how many houses you need to buy in a month in order to meet your goal. It is always easier to break down you larger goals to smaller goals. That way you are more likely to attain them.

If you have goals that are too big, you might be setting yourself up for failure because they don’t seem attainable. It is great to have big goals, but just break them down into smaller goals that are realistic to achieve.

4. Create a marketing plan and set a budget. Let’s face it. If you want to buy houses, you are going to need a marketing plan and budget. Figure out what marketing methods you want to do to attract those deals.

There are many marketing strategies to choose from like newspaper ads, car signs, bandit signs, direct mail, and cold calls to name a few. You’ll have to test each marketing method to see what works for you. When you find something that works, keep repeating it! A good marketing budget that will get you a good amount of calls each month is $1,000/mo.

5. Tell everyone you know you are looking to buy houses. This is the most important thing. If you want to buy houses, you must let everyone you know you are looking to buy houses. Now is not the time to be shy.

Print up business cards and pass them out to everyone you know, like the cashier at your grocery store and your waiter at a restaurant. Wear a t-shirt that says you buy houses to the mall and allow curious passer-byers to ask about what you do.

It’s the simple things like this that have the most impact sometimes. You never know who you will meet that may lead to you next deal.

So, I’ve given you a list of things you can do to get started. The final thing you must do it take action! Nothing will happen if you don’t take action to make it happen.

Real estate investing can be extremely profitable and allow you to have the lifestyle of your dreams. You can gain control of your future by implementing these steps. Now go out there and buy those houses!



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