real estate investment

The 7 Tips Entrepreneurs Need to Know Before Investing in Real Estate

Why should entrepreneurs invest in the first place? The answer is: to have enough money to live on when we no longer can or wish to work. To put that money aside, however, we have to accumulate enough to offset inflation and the taxes that erode our savings. And for that purpose, real estate is an excellent solution.

The great thing about real estate is that even in a bad economy, it will usually fare better than stocks. Land, after all, is a finite resource. People need a place to live, work, shop and play — so real estate is really just a matter of supply and demand.

What’s more, real estate will continue to appreciate despite occasional slow-downs in the economy. In fact, it’s proven to be the best way to create wealth, and an investor need not be a genius or a millionaire to succeed. Here are some tips, then, for entrepreneurs on getting started and succeeding in real estate investing:

1. Do — plan your financial goals.
Before you buy that first property, or do your first analysis, determine what you expect from your investments. What are your financial goals? We often discuss the “time vs. money” concept: The more you have of one, the less you need of the other to reach your financial goals. This means that you shouldn’t shy away from taking the time to understand your goals and make sure each investment is a step toward achieving them. If you are unsure exactly how to create financial goals, meeting with a financial advisor is an excellent first step.

2. Don’t — spend a fortune on books, tapes and seminars, then just put all that information on a shelf.
You absolutely do need to learn some basics before venturing into investing. So, be sure to do some studying, but don’t let “buying and collecting” information become your endgame. Again, having goals in mind will make the process much more straightforward. It’s easy to get so tied up in the “research” phase that you never actually take action. Instead, write down specific questions you want answered or goals you want to meet before delving into the latest book/seminar/etc.

3. Do — look at plenty of properties.
Don’t just grab the first property you look at. Too many investors buy properties because they “look nice,” or the investors don’t want to put the work in to look at what’s really out there. Remember, you won’t be living there, so don’t make your investment decision based on your personal preferences. While you shouldn’t fall into the trap of analysis paralysis, make sure you are thorough in looking through properties. Give yourself a wide range of options, then narrow them down based on the criteria (goals) you have set for yourself.

4. Don’t — postpone starting your investment program because you’re waiting for that perfect “unicorn” deal.
That’s the flip side to number 3, of course. Plenty of beginning investors suffer from “a-better-deal-may-be-just-around-the-corner” syndrome. This can backfire in a big way, and you could potentially let a great deal slip just because you’re holding out for something better. Your task may feel difficult if this is your first property, but you must realize that the “perfect deal” rarely (if ever) exists. Better to execute on a deal that meets most of your criteria than wait for another that may never come.

5. Do — a thorough financial analysis.
Be realistic. Look at different alternatives to determine which makes the most financial sense. And never buy property at a higher price or on less attractive terms than your analysis says made sense. Be wary of sellers that try to over-estimate the value of the property through pro-forma (estimated) data. While you can certainly use a pro-forma to start the conversation, make sure you know the real numbers before closing. Look at previous years’ tax returns, property-tax bills, maintenance records, etc. to get a good idea of the real income and expenses.

The most important figures you should know are:

Net income (income/expenses)
Cash flow (net income/debt financing payments)
Return on investment (cash flow/investment)
Cap rate (net income/property price)
Cash-on-cash return (cash flow/investment)
Total ROI (total return/investment)
In each case, “investment” refers to how much you invest in the property. “Debt financing” refers to any loans you may have to take out to buy the property. And “total return” refers to cash flow, equity accrual (i.e., equity gained from your tenants paying their rents), appreciation and taxes.

Once you have understood these figures, you should have enough information to determine whether or not acquiring the property fits with your financial goals.

6. Don’t — try to buy property that the seller is not motivated to sell.
If the seller is motivated to sell, you’re not likely to get the price best aligned with your financial goals. So, how do you know if a seller is motivated? Look at the asking price. For example, If the property has been on the market for a year for, say, $200,000, with little-to-no price reduction, the seller is clearly not very motivated to move the property. However, if that same property has been on the market for a year and has had its price moved down considerably, the seller most likely wants to do whatever it takes to get the property off his or her hands. Of course, this raises the question of how to find motivated sellers. There are many approaches, and not all of these will work for you, depending on what property you want. But a few trusted methods include:

Attending open houses
Looking for vacant/unattractive properties that are for sale
Spreading the word about yourself and what properties you are looking for — truly
Going the old-fashioned route and looking in the classifieds of your local paper
These are just a few ways to find sellers, but there are potentially dozens of other methods, depending on what type of property you’re looking for.

7. Do — know the difference between real estate investing and the business of real estate.
As an entrepreneur, you already have a business, and real estate investing is best used to support that business, not replace it — unless that’s your intention. In other words, don’t get so caught up in executing transactions that your core business falters. If that happens, you’ll be facing a bumpy road to get back to stability. Unless your business is itself real estate, or you’re looking to get into the business full-time, always remember that pursuing these deals is a means to an end, not an end unto itself.

So, if you’re interested in staying ahead of taxes and inflation while building security for the future, real estate investing may be for you. What are you waiting for?

Source: Entrepreneur.com

maintenance company

Ultra Fixed LLC

Our broker Victor Taurizano, is always looking for ways that allow him to better serve our client base and the community. That is why he decided to branch out and create a new company designed to assist in all maintenance requests called Ultra Fixed LLC. The sole purpose of this company is to focus on any maintenance issue that may arise at a particular property.

Having a company available only for maintenance requests gives confidence to our absentee property owners that a designated person is in charge of the whole process when something comes up in their property. All steps are measured beginning with the phone call, obtaining a qualified contractor, quoting the right price and making sure the job is done in a timely and efficient manner.

In addition, the company provides 24/7 access to all tenants by placing immediate work orders online or through our hotline. This allows for us to have constant communication with the tenants and better response time for maintenance issues. Also, by having a quick response to maintenance issues it results in better prediction of future repairs and cuts the chances of other things being damaged as a result of a prior issue.

Last but not least, Ultra Fixed LLC is able to provide services to anyone who owns a house, townhouse or apartment. Ultra Fixed is currently serving the areas of Miami, Doral, Miramar, Weston, Pembroke Pines and Davie. Make sure you contact us for a quote, the maintenance manager is Renata Campos and she is available Monday through Friday during office hours at (954) 871-2515 and anytime by email at rcampos@ultrafixed.com or via web at www.ultrafixed.com

refinance mortgage

When Should I Refinance My Mortgage?

Refinancing your mortgage could save you a considerable amount of money, shorten the time until your loan is paid off, or increase your cash flow. This is especially true if you bought your home during a time when rates were exceptionally high or have an adjustable rate mortgage (ARM). However, timing is important when you’re asking yourself, “Should I refinance my mortgage?” Refinancing comes with a new set of closing costs, and sometimes the prudent thing is to continue paying on your existing loan. Other times, you might need cash for a major purchase, and accessing your home equity can make good financial sense.
In the end, you need to determine what your goal is before deciding on a solution. Learn more about finding the best time to refinance your home.

Refinancing to Lower Your Payment

For many homeowners, the primary motivation is to lower their monthly payments. This can be accomplished by refinancing if the rate is significantly lower or if a term restructure is practical. The question is, how do you know if you should refinance? You can expect closing costs for a loan size of $200,000 to be about $2,400 not including title insurance, taxes and other prepaid items. What’s more, these are the fees for someone with excellent credit; lower credit scores could mean higher upfront costs. When considering a refinancing, it’s essential to learn about current refinance rates, loan terms, and closing costs. How many months will it take you to break even, considering your upfront fees? Are you planning to stay in your home long enough to recoup your investment? These are important considerations – knowing as much as you can about the market helps you make the right decision.

Refinancing to Consolidate Debt

If you have debts with high interest rates, it can be practical to refinance and withdraw some equity from your home to pay them off. Likewise, if you have a home equity loan in addition to your first mortgage, refinancing to combine them into one fixed-rate mortgage loan could make sense.

Refinancing to Make a Major Purchase

Another instance when you might consider a refinance is when you need a large sum of money. A cash-out refinance can give you access to cash at closing to finance a major purchase or expenditure. For example, your daughter is getting married or going off to Yale after high school. Now that the kids are out of the house, you may even want to add a huge party room to your house to celebrate your empty nest.
Regardless of the reason, refinancing for these types of events can provide a relatively inexpensive way to borrow. Consider all of the variables before deciding whether to refinance your mortgage. To help make the decision easier, use our refinance calculator to estimate your payments with a mortgage refinance. Simply input the costs and terms, and you can see at a glance if now is the right time to refinance.

Sources: US Bank

2017

New year, new meetings, new projects

As we welcome 2017 into our lives, it is a perfect time to set up all the new goals and activities that we will follow through in the following months. Great things are coming in 2017 and we are more than ready for them and much more!

This new year is full of new project presentations that we will share with you along the way. More monthly meetings with our agents for everyone to keep up to date with the latest trends. In addition, we have several expos and career fairs that we will be attending in 2017.

One of the new best things, has been the migration of the MLS (Multiple Listing Service) into our website. This tool is a great addition for our clients to be able to look at REAL TIME market listings right from our website! No more wasting time on real estate websites that are filled with old, inactive listings that make you waste your valuable time.

New and exciting things are up on our website with the MLS or Multiple Listing Service. This offers our customers the most efficient tool that realtors have under their sleeve to see REAL TIME market changes and updates to all listings that are being sold and or rented. Studies show that most of us start our search for properties on the internet. Most of these websites available are not updated on a regular basis and can end up in a waste of time for agents and customers since most of the properties have already been rented or sold. We encourage you to check it out and give us any feedback or opinions.

 

2017, NOVUS REALTY IS READY FOR YOU !!!

cooperator expo

The Cooperator Expo – South Florida

The Cooperator Expo of South Florida is described as “A must attend for all board members, property managers, condo & HOA decision makers and apartment building owners.”

This years convention was held December 6th and Novus Realty said present at their booth this year along with over 300 exhibitors. The Expo gave us the opportunity to discuss new solutions with current decision makers and how to better their services in Property Management and Community Association Management.

At Novus, it is our belief that face to face interaction is a must for successful business relationships. When dealing with HOA’s and condos, it is really important to have open conversation and immediate response to our client’s needs. The expo gives us the opportunity to keep in touch with them and help future clients resolve or better any current issues or complaints.

Another great opportunity from the expo iis to meet with possible new vendors that offer great services for our current managed properties. Innovative technologies are on the rise. It our priority to keep in touch with the latest technologies and most efficient procedures to have at our clients fingertips when the need arises to fix anything on their current properties.

NAR convention

NAR (National Association of Realtors) Convention

The NAR convention is held every year in November, it is considered the largest Real Estate Trade Expo. This year’s convention consisted of 425 exhibitors and took place in Orlando, Florida. It is incredible to see how every year the convention gets bigger and new things are developing in our Real Estate market.

Most of our brokers got together to assist the convention and were very impressed on the new tools and software that are available in order to make their job easier and more efficient.

In our broker’s perspective, the most impressive aspect of the convention was to see the advancements in technology. It is surreal to see how so much can change from year to year. One of the coming software, it is called Matterport. Matterport offers full 3D pictures or videos of a home which offers prospect clients the chance to have a full walk through of the property without ever leaving the comfort of their own home.

These types of softwares are really making a difference in the way we have always done Real Estate. For clients, it gives them the opportunity to look around and be more certain of the properties they are interested in seeing before making an appointment. For agents, it saves them time and the possibility of having a client that already knows exactly what they want. It seems like a win-win for both!

Our team is really looking forward for what is in stock for next years convention.

rentals team

Rental Procedures

At Novus Realty, we start every month strong with a meeting on different topics that are relevant to our current work load. For October, Emiliano Reynoso lead the meeting and the topic selected was Rental Procedures. It is very important for all agents and lessees to be aware of the procedures when they are interested in renting a property. It was great to see some of our agents get together to share different experiences that can help each other avoid future delays when renting a property.

As a lessee, some of the key points to keep in mind is that a lessor is looking for a solid, reliable tenant. This means they will check your credit in order to make sure you do not have prior evictions or things of that nature. Proof of employment is also vital when submitting an application.

For the most part, it has become a rule of thumb to ask for First month, Last month and Security Deposit. Timing can be tricky since you don’t want to start looking too early or too late, but it is always a good idea to start searching for your new home about 6 weeks prior to your estimated moving day since some locations have a Homeowner’s Association or HOA approval process.

For HOA approval, you can expect to send proof of employment , letter of recommendations and a background check. This is usually a standard process to confirm the character of the person applying to reside within their community.

Other key things to keep in mind is to ask about pet policies if it applies to you, assigned parking, guest parking, and commercial vehicles if it applies to you. It is of utmost important to always keep an open communication with you Agent so that they can better help you find the most suitable home for you and your family.

Novus Realty has a great team of over 50 qualified agents that can assist you every step of the way until you find the perfect home you are looking for call us today!

tamarac career fair

Career Fair Gold Coast Schools (Tamarac)

Last week we had the pleasure of being part of the Gold Coast Career Fair at their Tamarac location. It was great to see all the new and existing agents come forward to meet our team and the great things we have to offer. People from other professions also assisted the fair such as mortgage loan originators, insurance licensees, CAM licensees, appraisers and many others who are expanding their horizons into different fields of the Real Estate Market.

The outlook of the Real Estate careers are very promising as new people are moving into the state every single day, new constructions are on the rise and the demand keeps growing at a steady pace. Our team is always looking to grow and we hope to have many of the attendees become part of this wonderful team.

Presently, Novus Realty LLC is a one stop shop type of company that offers multiple services such as listing, renting, purchasing, investment solutions, market analysis, maintenance, CAM (community association management), and property management. Helping others is always at the top of every step that we take. We take pride on offering the best service to our clients and a respectful family-friendly environment for our employees.

“Alone we can do so little; Together we can do so much” – Hellen Keller

FAMP logo

Annual FAMP Convention 2016

Incorporated on July 7, 1960, the Florida Association of Mortgage Professionals (FAMP), formerly known as the Florida Association of Mortgage Brokers(FAMB), is the oldest and largest Mortgage Brokers Association in the nation. The Association was formed to promote the following:

  • Common business interest of those engaged in the mortgage profession

  • Encourage the highest standards of professional practice in the industry

  • Promote public awareness of the industry

  • Enhance the image of the mortgage brokering and mortgage lending industry

  • Enhance the knowledge and competency of its members

  • Protect the mortgage brokering and mortgage lending professions through legislative actions

Every year, a convention and trade show is hosted in order to promote all things related to the mortgage profession. Novus Realty makes it a priority to be present at every single convention in order to obtain the most current information available for mortgage brokering and the lending industry. The 2016 FAMP Convention took place last week in Orlando, FL and some of our brokers got the pleasure to attend this great event and come back to share with the rest of our team all the new and exciting practices that are going to benefit our realty group in order to excel at helping all of our current and future clients with the best and most up to date practices regarding all of their mortgage needs. We are really excited about the new things that were shared at the convention this year and look forward to the FAMP Convention of 2017!

Sources:
mortgage

What are the minimum Mortgage Requirements?

Novus Realty is a one stop shop for all your Real Estate needs. Our team is always focused on keeping up to date with the latest trends along with laws, policies and procedures that are changing on a daily basis. Keeping ourselves relevant is a major priority for our company. Today, we had the pleasure of meeting with Alex Castillo our in house Mortgage Broker. Alex offered a quick training for our Realtors on the basics of Mortgage Lending and the minimum Mortgage requirements for our clients. Here is a summary of the things that Mortgage Brokers are looking for in order to qualify a potential borrower:

 1. Down payment – always related to your LTV or loan-to-value-ratio, the more down payment means less money  that you will be financing and paying interest over time.

2. Affordability – determines your total budget or maximum purchase price.

3. Pre-qualification – does not require your social security and allows you to compare preliminary loan details before running a credit check.

3. Pre-approval – lender will run your credit and examine your finances, this will be the most accurate measure before shopping for a property.

4. Debt-to-income-ratio – total monthly debt and usually it should be no more than 36 percent of your gross monthly income.

5. Credit Score-lenders are always looking for credit scores over 700 to offer the best mortgage rates even though you may still get approved if you fall on the lower end but may not qualify for the best rates available at that point in time.

6. Employment History – a job history can be a great indicative of your ability to repay your mortgage. Borrowers are usually required to have at least two years working in the same field to be considered. As a self-employed individual, you may be asked to provide bank statement information for consideration.
As stated in the beginning, procedures and policies are constantly changing so it is always a good idea to keep an open mind and open communication with all the people involved in your transaction. At Novus Realty, we strive ourselves with all the knowledge and information necessary to make it a smooth and positive transition into purchasing your brand new home!