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3 Big Costs in Real Estate That You May Not Have Considered

by | Jul 1, 2016 | CRESTICO

Real Estate is a great investment, it really is. Oh sure you’ll hear people who will tell you that it’s tougher than it looks, and it is, and others tell you that it’s really not worth it. But the people who usually say that are the ones who don’t own any property. Really properly evaluating a property investment and then planning correctly can lead to a huge pay off, so why do some people seem to get in over there head? It’s because a lot of people don’t realize how many other fees there are that they need to pay for.
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1. Appraisal Fee
Now this fee is not huge in comparison to the other fees we will talk about or even the house, however, all fees are important. Every bit of money that you spend will be eating into your profits and you’ll want to account for this. You need to get someone to appraise the house so you can get a loan. An appraisal will cost you anywhere from $200 to $1,000. This is not something you want to forget about, having to suddenly fork over an extra $1,000 while your in the middle of budgeting to renovate is not fun, make sure you add this in the budget.
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2. Insurance
Just like getting a car insurance quote before you buy a car most real estate investors forget to calculate in home owners insurance. Now most Real Estate investors figure that if they’re renting they’ll have the rental fee cover this, or if they’re flipping the house the profit will cover this. As anyone who has invested in real estate will tell you don’t count your chickens before they hatch. In other words don’t count on money you don’t have yet, make sure you include these costs in your calculated costs, this way you do’t get bit by any surprises towards the end. In order to calculate this into your costs give companies such as Geico a call to gather quotes.
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3. Repair Costs
While trying to calculate a return on your investment make sure you include in your estimated repair costs. Now this may be easy for the obvious repairs that you see needed on a piece of property before you buy it, but if you are planning to rent out you need to calculate in the future repair costs as well. If you don’t take into account these repair costs you could find yourself running at a loss due to charging to low for rent in comparison to the repairs that you make. The cost of future repairs will of course depend on the type of property you buy as well as location.

In conclusion there are plenty of costs that people new to investing in real estate don’t expect. Don’t let this deter you from your investments. Instead take into account these costs so that you can ensure your investments end up being profitable for you. This way you can sleep peacefully with the knowledge that your investments are safe.

Self-Directed IRAs: A Smarter Way to Invest in Real Estate

by | Apr 19, 2016 | CRESTICO, Mortgage

moneygrowthFor more than three decades, The Entrust Group has provided account administration services for self-directed retirement and tax-advantaged plans. The Entrust Group continues to assist people in purchasing alternative investments with their retirement funds, administering the buying and selling of assets that are typically unavailable through banks and brokerage firms such as Real Estate.

The Entrust Group even created its own Real Estate IRA Center for individual investors and real estate professionals who wanted something more from their IRAs. The aim of the program? To help break down the Real Estate IRA investment process, explain the paperwork required, and walk people through the various IRS regulations.

It was back in the early ’80s when Bill Keller, a broker with Coldwell Banker in the Napa Valley region, first became familiar with The Entrust Group as his interest in assets, such as residential and commercial real estate and other non-traditional investments, continued to grow.

“I was looking for some way to do my own investment, self-directed, and I couldn’t find anything like that,” says Keller. “Whenever you looked into retirement, you had to buy stocks, and I wasn’t a big fan of that,” he adds. “I wanted to do my own thing. I discovered The Entrust Group and learned that I could do some investments on my own.”

For almost three decades, Keller has been a happy client of The Entrust Group, and being in the real estate game himself, he understood the money he could make by investing in real estate. Still, while investing in real estate with a self-directed IRA isn’t too different from a regular real estate purchase, Keller needed guidance regarding the rules and processes that had to be followed to do it right.

“I started with notes and deeds of trust, and I was able to really build up my retirement portfolio,” he says. “There were never any problems. It worked so well that I convinced most of my associates to open up an account with The Entrust Group, and many of us have bought notes together thanks to their help.”

In the beginning, Keller had a dedicated agent on behalf of The Entrust Group who was very knowledgeable about the business, and these days, he says The Entrust Group’s entire team is just as aware of what’s going on. In fact, Keller feels that service is one of the key features that makes the company stand out.

“They are always responsive and get the job done,” says Keller. “They knew what we wanted to accomplish, were willing to listen and make things work for us. They are flexible and accommodating.”

Keller estimates that he has done more than 100 deals with The Entrust Group over the years, and has seen his retirement portfolio grow exponentially.

“It’s so important to get started on planning for retirement, and the sooner you do, the easier it is,” says Keller. “These folks know all about it, and have made a big difference for me.”

Find out how you can generate more referrals, leads and repeat business with your free download of How to Help Your Clients Invest in Real Estate Tax-Free.

For more information, please visit www.theentrustgroup.com.

Just a Few Reasons to Invest in Real Estate

by | Apr 14, 2016 | CRESTICO

To invest or not to invest in Real Estate? – While Shakespeare didn’t really coin such a popular line, he may have done so if he lived in the modern day and age where real estate has become such a perplexing space to break into, investment-wise. For the novice at heart, here’s a few reasons why it’s a worthwhile market to add to your portfolio and how you can succeed in your venture. Bear in mind that these reasons are purely objective and are unbiased towards the real estate market.

Higher Leverage

Property is one of the few financial assets that can easily be leveraged through a loan. The ability to make a small initial payment, leverage your investments, and as a result amplify your overall ROI is quite impressive. With all else being equal, property investors are able to borrow more when using real estate as collateral relative to using a stock portfolio. In fact, banks and private institutions will lend up to 30 percent more of the value of a property portfolio than they will the value of a stock portfolio.

Simpler to Research

Unlike stocks and currencies that have all sorts of fundamental drivers and data points you need to keep updated, investment property involves only a few key factors for buying and selling your holdings. Stocks, on the other hand, involve a steep learning curve before one can methodically and consistently extract profits. Depending on the property niche you are looking to partake in as well as future investment goals you have in mind, the research data you will be collecting and analyzing may vary. Luckily, real estate software is nowadays very high-tech and covers all the fundamental and specific steps crucial for investing.

Diversified Portfolio

Investing in real estate effectively distributes capital risk. Properties have had historically low if not negative correlation with other financial assets. This means times of volatility can still produce higher ROI relative to the risk involved. Balancing your portfolio with properties and stocks can be difficult, albeit. Make sure to plan ahead and look for property investments that can hedge against future stock volatility.

High ROI

One of the most attractive characteristics of real estate investment is its stable income return. Over a three-decade period which began in 1977, nearly 80 percent of overall US real estate returns were rental income-based. Income-based assets are actually less volatile as an investment compared to assets whose returns are based on capital valuations.

High Safety Rating

Housing is a relatively safe investment hence the age-old phrase “safe as houses”. According to http://www.yourinvestmentpropertymag.com.au/, the rate of increase in property valuation was comparable to that of the stock market since the late 1920s, approximately 11.4 percent per year. What makes this even more remarkable is that the consistent boost in valuation occurred during a series of economic disasters including wartime and recessions.

Attractive Tax Benefits

Rental units provide investors with a great opportunity to write off personal expenses to valid business deductibles. Keep in mind that rental properties are a form of business, which means expenses incurred in visiting and maintaining the units can be legally deducted from your annual taxes. This increases not only the tax benefits for your cash flow but also for the future resale value of the property.

Huge Retirement Nest Egg

Rental properties act somewhat as a forced retirement plan. People are naturally horrible financial planners and, even worse, money savers. People lack the willpower and self-discipline to deposit money into their IRAs and 401Ks. As a result, the tax benefits and the compounding effect tend to be weaker than the potential growth from maximum monthly deposits. A rental property is a big-ticket item, which ultimately forces you to be wiser, more disciplined, and more committed towards your portfolio.

Summary

There are many other advantages to picking up property as an investment. Aside from the ones aforementioned, you also have the fact that demand for rental units owned and managed by private landlords is increasing. Investing today also strategically positions you to acquire homes that were recently foreclosed and are therefore substantially cheaper. To get started with your real estate investment, start drafting a short-term and long-term plan. Attend open houses and talk with brokers who can help show properties that are up for grabs.

 

Listing Your Home in Today’s Market Requires the Help of the Best Agent to Get You THE BEST PRICE

by | May 12, 2009 | CRESTICO

To sell your home, you'll need more than yard signs and advertisements. You need a Crestico Agent who will work as your full-service advisor and negotiator to get you exactly what you need to sell your home more quickly and easily by:

  1. Helping you set the right price on your home to attract the right buyers and the sales professionals who work with these buyers.
  2. Gathering data that will present your house and neighborhood in the best light.
  3. Targeting the market where the most likely buyers will be.
  4. Qualifying calls from people who may be more curious than serious about buying
  5. Showing your home to the best prospects
  6. Skillfully representing you during the offer process
  7. Doing the necessary paperwork and legwork in a timely manner.
  8. Guiding you through settlement.

To sell your home, you'll need more than ads and signs. When you work with a Crestico Agent, you'll receive top-notch, priority service, in addition to ads and signs. When working with you to sell your home, the goals of our Real Estate Agents are:

  • To obtain the best possible price for your home
  • Negotiate the most favorable terms
  • Secure a buyer in the shortest period of time
  • Relieve you of the stress and inconvenience that can occur when selling a home

If you are thinking of selling a home, or want to talk with an expert Real Estate Agent, please work with a Crestico Agent. An agent at one of our local offices will be glad to talk with you, and help you in all of your Real Estate needs.

For More Information Please Visit http://www.crestico.com – http://www.cresticorealty.com

Crestico Realty: Careers in Real Estate Community

by | Jan 31, 2009 | CRESTICO

Real Estate Career?

TREAT YOURSELF to the best new year’s resolution ever by moving your practice to a young energetic brokerage where you are still your own boss but get all the benefits of being associated with a nationally recognized brand!  Crestico Realty is looking for licensed Real Estate Agents like you to come down and interview!

Crestico Realty is a boutique Real Estate firm that focuses on handling all forms of real estate transactions. We offer *NO DESK FEES* and have great relationships with our business partners who work with us on a day to day business.  If you are an independent visionary and get excited by the limitless possibilities of today’s market, then give us a call.   At Crestico, we treat our agents like family, offering unprecedented support, generous commissions, the best training and mentorship for new agents, additional incentives & bonuses, and further opportunities to grow and expand your career.

We are looking for agents who are more than just agents – we want real estate specialists, who love their work and see income potential in every conversation they have!

Please send your resume, along with cover letter to careers@crestico.com.

For more information please visit www.crestico.com or call (818) 784-2929

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