Q. I have been doing research about real estate investing and have a few questions about the process. Is the first thing I need a broker, banker, or a seller? Do I need to see mortgage company or can I just take a loan out form the bank? What kind of down payment do you need? Does anyone have any information about tax break, cuts, or property taxes regarding real estate. Any additional information would be helpful, I'm still in a learning phase.
Thank You
Thank You
A. First thing you need is a plan. You ask a lot of good questions, and as Eddie G said, a real estate book may be your best bet. Once you are done with that, meet with an financial planner and an accountant. This way you have a better idea of what is your strategy and what direction you want to go in.
Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.
You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.
Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don't have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.
As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.
Good luck!
Are you looking at long term residual income? If so are you looking at Commercial, residential, land opportunities, easement options? Do you want to flip properties for short term capital growth? Do you want to start off on your own home and growth from there? Know the tax advantages of all as well as exit strategies.
You can go to your own bank for a loan, but you probably want to work with a lender that knows what they are doing and can help direct you. You also want to make sure you get the best rate/service for the price. Banks have less options then mortgage lenders.
Down payment depends on what you buy: Land and commercial can be difficult to impossible to get now: the were requiring about 30-50% down. Residential properties that are rental require a larger % down then residential that is owner occupied. Owner occupied can be al low as 3.5% for FHA loans (be prepared for closing costs so up to 5%), or for conventional loans where you don't have to pay for PMI (private mortgage insurance) it is usally 20% but can be 25% is you live in an area that is considered trending down.
As you can see, from the few questions I answered, you have a lot of options. Read some more and make your plan.
Good luck!
How do I deduct my hand tools for my real estate practice and client party?
Q. Two in one question. I am a real estate broker and I manage properties. In the process I have to do repairs on certain properties and have purchased hand tools for this purchase. I don't want to have to capitalize and all that for a 3.99 screwdriver so how do I deduct these purchases.
Part two. If I throw a client party at my house, can I write off the entire amount or is it subject to the 50% entertainment stuff.
Thanks in advance for your answer.
I have several hand tools so the screwdriver is an example. I can't imagine I have to fill out a sect 179 deduction for each one
Part two. If I throw a client party at my house, can I write off the entire amount or is it subject to the 50% entertainment stuff.
Thanks in advance for your answer.
I have several hand tools so the screwdriver is an example. I can't imagine I have to fill out a sect 179 deduction for each one
A. For these kinds of questions it is best to call: 1-800-829-1040 or do a search on the following website: www.irs.gov
How do real estate agents get leads?
Q. I am looking into getting my real estate license in CA. I had so many questions, but thanks to yahoo answers, i was able to find most of them here. But i still have one question that i cant find the answer to... How does the agent find houses to sell? Do they get the leads from the company they work for? Do they post in the paper that they are an agent and looking to sell someones home? How does that whole situation go down? Thanks
A. Most of us will start as a buyers agent, your first year you will represent many buyers. When your name gets out, assuming that you are good at your job, those buyers will have friends that may be looking to sell. Occasionally, you may get a duty call (where you basically at as a secretary for a few hours) from someone wanting to sell. Also, you have a sphere of influence, people you already know, people that they know, folks you run into while doing things that you do on a regular basis. Don't be afraid to talk to them and let them know you are an agent and are always looking for someone who may be in need of your services. When you get your cards, drop them everywhere...you never know who may call you. Once you get your license part of your process will be you need to find an agency, talk to the broker and see what kind of advertisement the firm does. Some do more than others. I would be happy to talk to you off line about my agency and why I think it's the best.
Can real estate agents in California enter a home when you are not home while the tenant is still paying rent?
Q. We rent a house in LA. Our landlord has given us 60 days to vacate (completely fair). However, in those 60 days he plans on having real estate agents and prospective buyers tromping through the house regularly (often while we are not there). Is this legal? I don't want strangers in my house when I am not there. Can someone refer me to a legal statute that would help answer my question definitively (the lease has no relevant clause).
A. It's not your house.
The landlord usually has the right to reasonable visits for potential purchasers or renters. They may be required to give 24 hours notice and I think it's murky whether he can give standing notice for the entire 60 day period.
His right to show the house is independent of you being there. In other words, he can show it when you're home or not and you don't have any say in the matter assuming he's satisfied the other requirements.
The landlord usually has the right to reasonable visits for potential purchasers or renters. They may be required to give 24 hours notice and I think it's murky whether he can give standing notice for the entire 60 day period.
His right to show the house is independent of you being there. In other words, he can show it when you're home or not and you don't have any say in the matter assuming he's satisfied the other requirements.
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