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Real Estate

How to Profit in Real Estate While Others Shy Away

May 22, 2017 by · Leave a Comment 

Summary: Real estate investing is an aggressive market that has profound potential for solid gains.

If you’re new to the world of real estate investing, you’ll find in time that there’s a lot to learn. Investing in real estate is much more complicated than investing in stocks because of certain requirements such as financial, legal, and due diligence. This is why it’s a good idea to educate yourself before getting involved with your first investment property. This guide will help you become familiar with the fundamentals of investing.

Keep an Eye on Location

Location does matter when it comes to real estate investing. Before you place that down payment and put yourself in a significant amount of debt over your tenure of ownership, find the right location beforehand.

Many real estate investors tend to look for the worst house on the best street. It’s a principle that comes across quite a bit as one dives deeper into the world of real estate. By doing so, you obtain the opportunity to build equity. Furthermore, you can invest money to fix it up and sell it to another individual that’s looking for a house that’s ready. This route is known as the fix and flip.

Wholesale Properties Can Result in Profit

Now, there is one similarity when it comes to real estate investment and stock market investing – you’re looking to find the best deal. If you’re a savvy stock investor, you’re probably not going to purchase that many stocks at their high if you’re looking to hold for a long period of time. Instead, you’ll look to find wealth when everyone becomes fearful at the sight of it. Stocks that are beaten down to the pulp can revolutionize your wealth and you’ll end up making a large profit. That’s what you’ll want to do in real estate investing. Don’t pay the full price for a property, but instead search for wholesale properties that are offered at a discounted rate. Yes, they will most likely need work, but if you wanted a premium property you’re skipping out on the most important factor of investing: work.


Bio: Omar Amanat is a philanthropist and entrepreneur famous for his investments in technology and finance companies.

Common Mistakes Homeowners Continue to Make to Jeopardize their Future

August 31, 2016 by · Leave a Comment 

These costly mistakes tend to add up and harm your financial future.

homeowner-mistakesA home is a great investment that provides you with a significant asset once the property value starts to increase. In addition to this, it can also pay huge dividends in the long run. Unfortunately, there are numerous mistakes that homeowners continue to make that ultimately jeopardize their overall property value. Fortunately for you, this guide will help set you on the right track so you can keep your financial future safe and sound.

Don’t Keep a Short-Term Investment Mindset

Numerous individuals cherish being a mortgage holder so much that they quickly want to buy and sell a home, regardless of the fact that they know they are going to move in a short period of time. While it feels wrong to persistently compose checks to a landowner and pick up no value when living in a condo, it’s additionally essential that you assemble every one of the accounts that you have to plan for living in a home. Try not to bounce ahead without setting yourself up.

Try not to Blow Through a Budget

Numerous homebuyers promptly lose sight of their financial limitations once they see a house that is essentially ideal for them. Ideally, it might appear like a chance for you to get the property you had always wanted, be that as it may, in case you’re inadequate with regards to the best possible long haul financing, you’re going to watch your fantasy gradually slip out of your hands and into the paws of another proprietor. Feelings ought to never be included with regards to lodging. Rationale and monetary limitations need to be deliberately viewed before signing the deal on a home. This is for both the fate of the mortgage holder and the estimation of the property that he or she is buying.


Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm that has been rated as one of the fastest growing companies by INC. 500.

Tax Consequences When It Comes to Real Estate Heirs

June 29, 2016 by · Leave a Comment 

inheritance-taxThere are numerous financial considerations when it comes to taxes.

If you would rather not sell your home prior to retirement, there is always the option of considering whether you prefer to leave it in the hands of an heir. You can also leave other assets – such as bonds, stock, mutual funds, and annuities. However, there are many tax consequences that you need to think about carefully when weighing your options. Look into the tax rates and decide whether or not you have the financial funding to take such a large hit before making the decision.

Federal Tax Exemption

If your estate is essentially below the federal estate gift and estate tax exemption – which is typically $5.45 million for 2016 – you can avoid capital gains tax on the appreciation. So, for example, if you bought a house for $100,000, and the value has made it go up to $500,000, your heirs’ tax basis on the house will typically be the difference between the value on the that you die as well as the sales price.

Depreciated Security

An example of something that you shouldn’t do when it comes to assets it pass on depreciated security to your heirs. If you purchased a stock for $40,000 and it depreciates to $28,000, there’s essentially a $12,000 capital loss deduction. Once you die holding onto that loss, it is no longer an option. But, remember that tax consequences do vary, so it’s important that you consult with a financial planner in order to proceed in a financially smart manner.


 

Kuba Jewgieniew is the head of Realty ONE Group, a real estate brokerage firm with offices in California, Nevada, and Arizona.

How to Study a Neighborhood Before Moving In

January 17, 2016 by · Leave a Comment 

You’ve probably heard the saying that you should drive your neighborhood a few times before you consider buying a home there. That’s probably pretty good advice, but what should you look for? There are obvious elements, like people causing trouble or loud music in the neighborhood, but what about less obvious things? How can you tell what neighbors are like, what your commute will be, how schools function or where the sun rises and sets in relation to your home? These aren’t easy questions to answer. They require multiple drive-bys with a keen eye for what you’re looking for.

Study-Moving-even-to-a-nicer-neighborhood-puts-children-at-risk-of-not-graduating

Meeting the Neighbors

Notice we didn’t say “judging” the neighbors. You should try to drive by the neighborhood and introduce yourself to some of the people already living there. Ask them how long they’ve been living in your prospective area, what they think about it, and any information they have about other neighbors around the block. Be careful to avoid neighborhood politics during these early discussions, keep things friendly.

Amenities

Scout the neighborhood, and the surrounding community. Are there any parks within walking distance? Having one close by is a wonderful outlet for relaxation on weekends. What about supermarkets and chain stores you’re used to? If you’re crossing state lines, make sure the brands you know and love are still available to you. Also, spend an evening in the surrounding area. Take your spouse to dinner and get to know the area. Once you know what’s around your home, you can make a better decision regarding whether it’s a place you’d ever want to live.

Drive Your Commute

It’s a hassle, but you ought to commute to your new neighborhood and drive that route to your job. If you can, do it more than once so you get a feel for what traffic is like throughout the day. You might find that owning a home closer to work can be a hassle if you live in a major city. Lack of parking, backed up streets and other elements might make it easier just to walk to work. If you don’t evaluate, you’ll never know.

What About Schools?

There are plenty of resources online where you can explore the school system in your new neighborhood, and you can gather quite a bit of information too. You can learn teacher names, get school ratings from parents and faculty, and find out which districts and schools your child is eligible to attend.
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Realty ONE Group was founded in 2005 by Kuba Jewgieniew, and is focused on helping clients find the home of their dreams.

Why You Shouldn’t Overprice Your Home

December 22, 2015 by · Leave a Comment 

Why You Shouldn’t Overprice Your HomeThe average homebuyer is going to value their house far above what its actual worth is. This is due to the many emotional attachments that they have with that home. It isn’t common for someone to overvalue their house but when they actually list it on the market, chances are that it’ll be looked at as overpriced. If you want to avoid all of the pitfalls of pricing your home to high, here are some tips that will help you out.

No Deal

One of the problems with overvaluing your house is that most buyers aren’t going to pay with cash, they’re going to need a mortgage to afford it. In order for them to receive that mortgage, the house can’t be priced over what the current market value is. Banks and lenders are becoming pickier over who they approve for a mortgage. Even if there is an agreement between you and the buyer, there is a high chance that it won’t follow through because the bank won’t approve it.

Depreciation

One of the worst things that can happen to a home is for it to sit on the market without any bids. In most cases, sellers that overvalue their home will risk it languishing for weeks, or worse months. Once a buyer sees that a home has been listed on the market for months, they’re going to throw a bunch of lowball offers at you, insisting that you’re going to need the home taken off sooner or later. You can go for the home run and risk the amount that you’re going to receive, or you can play it safe and come out with, still, a positive gain.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that offers their team goal-driven, entrepreneurial associates the opportunity and tools to achieve the highest level of success in today’s competitive real estate market, with the support of our knowledgeable and experienced management team.

Using Your House as a Retirement Aid

November 27, 2015 by · Leave a Comment 

Money in your handsSaving for retirement is an important priority at a younger age. You want enough for sustenance as well as a comfortable and free life. If you’re considering using your home as an aid to your retirement fund, here are some suggestions that you should consider that will help.

Before you retire, and if you can afford it, you have the option to pay off your mortgage. Doing so will take a huge weight off your shoulders and also allow you to have more financial flexibility upon retirement.

If you are currently in a large home that has excess rooms and space, you might want to consider downsizing to a smaller house. Doing this can save you thousands and help put that towards your retirement account. For example, an increase in cash flow can come out of selling a home for $400,000 and buying one for $200,000. That excess $200,000 can be put towards investments or a savings account – not to mention the smaller mortgage payments on your downsized home.

Another option is to rent out the rooms in your house. If you want a passive stream of income, this is a good choice as you’ll most likely be renting out to someone that you trust and also receive a monthly check for a room that’s actually being put you use instead of just gathering dust.

A reverse mortgage is an option for retirees to live off the equity that has been built up in their home. It’s paid in either a lump sum or in installments and is an option if you want a steady stream of revenue.

Bio: Kuba Jewgieniew heads Realty ONE Group, a full-service residential real estate brokerage firm.

A Guide on Paying off your Mortgage Early

October 8, 2015 by · Leave a Comment 

Trevor and Rebecca MacKenzie decided enough was enough. With a little over $100,000 left from their mortgage, they wanted to become debt-free. By taking a more money-saving approach to their lives and constantly looking over their finances, they’re savings are increasing while their spending is lowering. Prior to becoming more cost-efficient, Rebecca explains that they paid the near minimum for their mortgage monthly payments. After bumping that number up by $2500 more, they’ve put themselves in a position where their mortgage is going down and their net worth is coming up. If you want to pursue a mortgage-free life like the MacKenzie’s, here are some tips that will help you out.

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Choosing a 15-year mortgage over a 30-year mortgage is a sacrifice as it will require you to pay a much higher monthly payment. If you can afford to do so, your mortgage term will end up being much shorter. There are also better interest rates to be had with a 15-year loan.

Another mortgage payment option that you have is making bi-weekly payments. The concept is pretty simple actually. You pay half of your mortgage payment every two weeks. This could be advantageous for you as the total mortgage cost will be reduced mainly because of the lower interest. Making bi-weekly payments throughout the year is equal to one extra payment every year.

If you are stuck in bad loan terms, consider looking into refinancing. By obtaining more favorable terms and a better interest rate, you could potentially finish your loan’s terms sooner. Only if the savings outweigh the fees should you refinance. The fees for refinancing could end up pushing you back costing you more money.

An adjustable rate mortgage could tempt you with their low interest rates and monthly payments, but there is a risk involved. Because the interest rate can always change in this loan, you’re trusting that the market will favorably swing your way. There is a risk that you’ll end up paying more in the long run.

If your mortgage doesn’t penalize you for making early payments, then this is a great way to reduce the cost of your mortgage. By paying early, you reduce the interest amount which ends up in your mortgage being paid off in a shorter time. Again, this option should only be done if you can afford to do so. In your mortgage a little goes a long way. An extra $50 a month could reduce your loan term by 3 years.
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Kuba Jewgieniew is the head of Realty ONE Group, rated one of the fastest growing companies in America by Inc. 500

http://www.businessinsider.com/couple-paid-their-mortgage-in-5-years-2015-2


 

A Guide on Paying off your Mortgage Early

October 7, 2015 by · Leave a Comment 

A-Guide-on-Paying-off-your-Mortgage-EarlyTrevor and Rebecca MacKenzie decided enough was enough. With a little over $100,000 left from their mortgage, they wanted to become debt-free. By taking a more money-saving approach to their lives and constantly looking over their finances, they’re savings are increasing while their spending is lowering. Prior to becoming more cost-efficient, Rebecca explains that they paid the near minimum for their mortgage monthly payments. After bumping that number up by $2500 more, they’ve put themselves in a position where their mortgage is going down and their net worth is coming up. If you want to pursue a mortgage-free life like the MacKenzie’s, here are some tips that will help you out.

Choosing a 15-year mortgage over a 30-year mortgage is a sacrifice as it will require you to pay a much higher monthly payment. If you can afford to do so, your mortgage term will end up being much shorter. There are also better interest rates to be had with a 15-year loan.

Another mortgage payment option that you have is making bi-weekly payments. The concept is pretty simple actually. You pay half of your mortgage payment every two weeks. This could be advantageous for you as the total mortgage cost will be reduced mainly because of the lower interest. Making bi-weekly payments throughout the year is equal to one extra payment every year.

If you are stuck in bad loan terms, consider looking into refinancing. By obtaining more favorable terms and a better interest rate, you could potentially finish your loan’s terms sooner. Only if the savings outweigh the fees should you refinance. The fees for refinancing could end up pushing you back costing you more money.

An adjustable rate mortgage could tempt you with their low interest rates and monthly payments, but there is a risk involved. Because the interest rate can always change in this loan, you’re trusting that the market will favorably swing your way. There is a risk that you’ll end up paying more in the long run.

If your mortgage doesn’t penalize you for making early payments, then this is a great way to reduce the cost of your mortgage. By paying early, you reduce the interest amount which ends up in your mortgage being paid off in a shorter time. Again, this option should only be done if you can afford to do so. In your mortgage a little goes a long way. An extra $50 a month could reduce your loan term by 3 years.

Bio: Kuba Jewgieniew is the head of Realty ONE Group, rated one of the fastest growing companies in America by Inc. 500

 

The Perks of Hiring an Estate Manager

September 11, 2015 by · Leave a Comment 

Estate ManagerIf you are one of the lucky wealthy individuals that are in a comfortable financial situation, you have options for investments. There is a chance that you will consider becoming a landlord for an apartment complex. Did you think that you could do it all on your own? There are a vast number of responsibilities that one man/woman might not be able to accomplish on their own. This is where hiring an estate manager helps.

Hiring an estate manager will help you maintain a smooth and fully-functioning operation. Their role is of a leader, they manage the staff and the services of your property while maintaining a professional relationship with you.

You can say goodbye to properties that are giving you massive headaches when you hand over the reins to your estate manager. Their duties are dependent on what you require of them. They can supervise your staff and guide them to what goals that you set. They can also handle your finances and act as a bookkeeper.

One of the best things about estate managers is their versatility. They work carefully in planning out your property structure, from finances to duties. Once a plan is in place, you can leave the rest to them. If managing is not your forte, then consider looking into hiring a manager.

By hiring an expert that you feel has the skill, knowledge, and personality to get the job done; you will definitely take a load off of your shoulders. This means more time spent with your family. Running multiple residences or estates is time-consuming. Your career obligations can get in the way of your family’s needs. If you feel that the possibility is a strong one, take some time out of your schedule and look into getting some property assistance through a manager.

Bio: Kuba Jewgieniew is the CEO of Realty ONE Group, a real estate brokerage firm that provides an innovative platform for entrepreneurs to succeed and thrive.

How to Tell a Home is a Good Buy

July 12, 2015 by · Leave a Comment 

Home is a Good BuyWhether you are buying to flip a home, or you want something that will appreciate in value so you can leave it to your kids, it’s a good idea to try and exercise some judgment for whether a house will be a good buy or not. While there is no substitute for an appraisal, these tips will help you make some fair assessments based on market conditions.

Amenities

What the home offers to you can help determine whether it is a good buy or not. Bathrooms are a great example. Full baths, that is bathrooms with a bathtub/shower combo, tend to add more value than a half or quarter bath. Extra bedrooms are nice, especially for people who frequently have guests come to stay. Those extra bedrooms can also serve as a home office.

Think Outside the House

Consider how you can utilize the space outside of your home. Adding a deck or patio to the rear of your house would be a good way to utilize that space, create a seating area and potentially add a barbecue for an outdoor kitchen. In the front yard, a small seating space that runs flush along the house can give you a porch you didn’t have before.

Kitchen Space

Kitchens with more space always tend to sell for more, but you can turn a long and skinny kitchen into what you need with proper cabinet space. If you are willing to compromise on some of these features, you can get the dream home you want with features that won’t run you broke.

Bio: Kuba Jewgieniew, a former stockbroker, founded Realty ONE Group in 2005. By the end of the firm’s first year, over 300 agents were closing deals under the Realty ONE Group brand.