Find Homes and Houses for Sale in Lexington
You can sell your home in a matter of weeks or months rather than years or even decades. But before you take any action, you should consider several factors like location and the value of the property.
A good location for a home is well visible from public transport. It is close to schools, shopping malls, work, and other businesses. You can also get a good view of your property of your surrounding area. For those who own a second property, the view of their old property can be useful.
The location of the house can also play an important role in selling a house. If the home is too far away from your main place, it may not get any bids. On the other hand, a home that is too close to main roads will attract less attention.
The location of the house also plays an important factor in how much you can sell it. While houses with less expensive properties are usually easily sold, homes with more expensive properties tend to be a little more difficult to sell. The price of the property also depends on the size of the house.
Another factor that you need to keep in mind when selling your house is its value. There are certain properties that do not appreciate as fast as others. Thus you should be careful enough to assess the value of your house in order to determine whether you should move forward with the sale of the property. If you find the property to be worth less than you initially estimated, you should think twice before proceeding with the transaction.
The value of your house can be assessed by comparing it with others in your locality. If there is a similar property located next to yours, you can try to sell the former property. It may also be a good idea to see if you can get a good price from a buyer who has bought a home in the same neighborhood as yours.
Should You Sell Your Home Yourself? A blog post about selling your home.
So how does the all-money-down technique work by purchasing a home with cash? First of all, let me repeat that I really didn't have any cash, but I had a significant amount of equity from Terry's home and several homes that I owned put together to give me a substantial cash down payment. Banks and mortgage companies alike will accept money from a home-equity line of credit as cash to purchase a home. At least they did in 1997 under the financial guidelines of the day. What you must remember about mortgages and lending is that the guidelines change constantly, so this technique I used in 1997 may or may not be able to be used in the future. Whether it is or isn't able to be used again doesn't really matter to me as I believe that there will always be a way to buy real estate with limited money down sooner or later. There will always be a technique to acquire real estate but exactly how that will be done in the future I'm not completely sure.
I began purchasing homes in the Mayfair section of Philadelphia with the prices in the $30,000 to $40,000 per home price range. I would purchase a home with three bedrooms and one bathroom on the second floor with a kitchen, dining room, and living room on the first floor and a basement. What we call a row home in Philadelphia would consist of a porch out front and a backyard the width of the home. Most row homes in Philadelphia are less than twenty-two feet wide. For those of you who are not from Philadelphia and can't picture what a Philadelphia row home looks like, I suggest you watch the movie Rocky. Twenty-two homes on each side of every block will really test your ability to be a neighbor. Things that will usually cause an argument with your Philadelphia neighbors often stem from parking, noise your children make, where you leave your trash cans, parties, and the appearance of your home.
In 1998 my girlfriend and I moved in together and to the suburbs of Philadelphia called Warminster. After living on a street in Tacony, much like Rocky did, I really looked forward to having space between my home and my next-door neighbor. I told Terry not to even think about talking with the people who lived next door to us. I told her if one of them comes over with a fruitcake I am going to take it and punt it like a football right into their backyard. I believe I was suffering from Philadelphia row home syndrome. My new neighbors in Warminster turned out to be wonderful people, but it took me eighteen months before I was willing to learn that.
So you just bought your row home for $35,000 in Mayfair, and after $2000 in closing costs and $5000 in repair costs, you find yourself a good tenant who wants to rent the home. After renting the home with a positive cash flow of $200 a month, you now have an outstanding debt of $42,000 on your home equity line of credit that will have to be paid off. When purchasing the home, I did not get a mortgage as I just purchased a home for cash as it is said in the business. All monies I spent on this house were spent from the home-equity line of credit.
The move now is to pay off your home-equity line of credit so you can go do it again. We now go to a bank with your fixed-up property and tell the mortgage department that you want to do a cash-out refinancing of your real estate investment. It helps to explain that the neighborhood you purchase your property in should have a wider range of pricing as the neighborhood of Mayfair did in the mid-90s. The pricing of homes in Mayfair is quite unusual as you would see a $3000 difference in home values from one block to the next. This was important when doing a cash-out refinancing because it's pretty easy for the bank to see that I just bought my property for $35,000 regardless of the fact that I did many repairs. I could justify the fact that I've spent more money on my home to fix it up, and by putting a tenant in, it was now a profitable piece of real estate from an investment standpoint.
If I was lucky like I was many times over doing this system of purchasing homes in Mayfair and the appraiser would use homes a block or two away and come back with an appraisal of $45,000. Back then there were programs allowing an investor to purchase a home for 10 percent down or left in as equity doing a 90 percent cash out refinance giving me back roughly $40,500. Utilizing this technique allowed me to get back most of the money I put down on the property. I basically paid just $1,500 down for this new home. Why did the mortgage companies and the appraisers keep giving me the numbers I wanted? I assume because they wanted the business. I would only tell the bank I need this to come in at $45,000 or I am just keeping it financed as is. They always seemed to give me what I wanted within reason.
This whole process took three to four months during which time I may have saved a few thousand dollars. Between the money I saved from my job and my investments and cash out refinancing, I had replenished most or all of my funds from my home-equity line of credit that was now almost back to zero to begin the process again. And that is exactly what I intended to do. I used this system to purchase four to six homes a year utilizing the same money to purchase home after home after home over and over again. In reality, the technique is a no-money down or little money down technique. At the time maybe I had $60,000 in available funds to use to buy homes off of my HELOC, so I would buy a home and then replenish the money. It was a terrific technique that was legal, and I could see my dream of being a real estate investor full-time coming to an eventual reality even though I wasn't there yet.
During the years from 1995 to 2002, the real estate market in Philadelphia made gradual increases of maybe 6 percent as each year went on. I began to track my net worth that was 100 percent equity, meaning I had no other forms of investments to look at when calculating my net worth. Generally speaking, the first five years of my real estate career did not go well because of the bad decisions I made purchasing buildings and the decline in the market. Furthermore, my lack of knowledge and experience in repairs made it a rough. The second five years of my real estate career that I just finished explaining didn't make much money either. I supported myself primarily through my career as a salesman, but I could definitely see the writing on the wall that down the road real estate was going to be my full-time gig.
Realty Professionals of America
I own an office building that has a real estate company as a tenant called Realty Professionals of America. The company has a terrific plan where a new agent receives 75 percent of the commission and the broker gets only 25 percent. If you don't know it, this is a pretty good deal, especially for a new real estate agent. The company also offers a 5 percent sponsorship fee to the agent who sponsors them on every deal they do. If you bring an individual who is a realtor in to the company that you have sponsored, the broker will pay you a 5 percent sponsorship out of the broker's end so that the new realtor you sponsored can still earn 75 percent commissions. In addition to the above, Realty Professionals of America offers to increase the realtor's commission by 5 percent after achieving cumulative commission benchmarks, up to a maximum of 90 percent. Once a commission benchmark is reached, an agent's commission rate is only decreased if commissions in the following year do not reach a lower baseline amount. I currently keep 85 percent of all my deals' commissions; plus I receive sponsorship checks of 5 percent from the commissions that the agents I sponsored earn. If you'd like to learn more about being sponsored into Realty Professionals of America's wonderful plan, please call me directly at 267-988-2000.
Getting My Real Estate License
One of the things that I did in the summer of 2005 after leaving my full-time job was to make plans to get my real estate license. Getting my real estate license was something I always wanted to do but never seemed to have the time to do it. I'm sure you've heard that excuse a thousand times. People always say that they're going to do something soon as they find the time to do it, but they never seem to find the time, do they? I try not to let myself make excuses for anything. So I've made up my mind before I ever left my full-time job that one of the first things I would do was to get my real estate license. I enrolled in a school called the American Real Estate Institute for a two-week full-time program to obtain my license to sell real estate in the state of Pennsylvania. Two terrific guys with a world of experience taught the class, and I enjoyed the time I spent there. Immediately after completing the course at the American Real Estate Institute, I booked the next available day offered by the state to take the state exam. My teachers' advice to take the exam immediately after the class turned out to be an excellent suggestion. I passed the exam with flying colors and have used my license many times since to buy real estate and reduce the expenses. If you are going to be a full-time real estate investor or a commercial real estate investor, then you almost have to get a license. While I know a few people who don't believe this, I'm convinced it's the only way.
I worked on one deal at $3 million where the commission to the buyer's real estate agent was $75,000. By the time my broker took a share, I walked with $63,000 commission on that deal alone. With the average cost per year of being a realtor running about $1200 per year, this one deal alone would've paid for my real estate license for fifty-three years. Not to mention all the other fringe benefits like having access to the multiple listing service offered too many realtors in this country. While there are other ways to get access to the multiple listing services or another program similar to it, a real estate license is a great way to go.
Some of the negatives I hear over and over again about having your real estate license is the fact that you have to disclose that you are realtor when buying a home if you're representing yourself. Maybe I'm missing something, but I don't see this as a negative at all. If you're skilled in the art of negotiation, it's just another hurdle that you have to deal with. I suppose you could end up in a lawsuit where a court of law could assume because you are realtor you should know all these things. I don't spend my life worrying about the million ways I can be sued any more than I worry about getting hit by a car every time I cross the street.
From his first investment property over 20 years ago to his relentless search for the next great deal every day, Falcone is a non-stop real estate investment machine!
Sometimes addiction is a very good thing. In this book Phil Falcone, the ultimate real estate addict, will show you how to achieve amazing success as a real estate investor:
Delve into the details of actual deals he negotiated and learn why his methods were so effective
Discover why his residential to commercial real estate strategy will create ultimate wealth
Learn how he used apparent liabilities (OCD, insomnia, and workaholic behavior) to help him achieve his goals
Explore why he can't stop investing in real estate, and how you can start controlling your own financial destiny through real estate
Should You Sell Your Home Yourself? A blog post about selling your home.
It is important to present your house in a good condition so that a prospective buyer can see and inspect it. Make sure that the doors and windows are in working order and the plumbing system is efficient.
Once you know how much the property is worth, it is time to decide whether to proceed with the sale or not. If you want to buy a house at a cheaper price, you can approach a real estate agent or a bank that offers real estate loans. When selling your home, do not forget to include all relevant details such as information about the home’s features, location, size, and structure, and any improvements you have done to it. These details can greatly improve the chances of being accepted.
It is also a good idea to prepare a short description of your property and include photos. This will enable a buyer to see the real estate better. You can also write down any repairs that you have done to the house such as the kitchen or bathroom improvements. Be careful not to overstate the problems or make the property look worse than it actually is.
The last thing that you need to do in order to sell your home is to advertise it. A classified advertisement in the local paper can get more results. You can also put an ad in a local online listing site. This will let you get the best deals in terms of the number of people who are looking for a house near the place where you are trying to sell your house.
The amount of money that you get for your house may vary. The more you are willing to pay, the higher your chances of getting more money. You will probably get a good price if you advertise the home in as many places as possible. But if you are willing to go low in terms of the amount you are willing to pay, you can also bargain with the seller.
Good luck in your effort to sell your house! Enjoy the experience and good luck in buying a house in your area.
When it comes time to get the deal done for both buyers and sellers in Lexington, we line up all the legal documents (there are many!) and make sure the train runs on-time. You can expect us to carefully manage the process. Most importantly, you’ll be apprised of the deal’s progress each step of the way. We’re friendly, competent guides who’ll help you reach the best possible outcome and achieve your real estate goals.
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