Real Estate

Have you always wanted to invest in real estate but don’t know where to start? Here are some of the different areas of the industry that you can invest in:

Areas That You Can Invest In

Residential: these are properties such as townhouses, apartment buildings and vacation houses. Here a person or a family will pay you in order to live in your property. The length of time that an individual lives in your house depends on your rental or lease agreement.

Commercial: commercial real estate consists mainly of office buildings. When you construct office buildings you can rent them to companies and small business owners. Again the length of time that the business owners use your property depends on your agreement.

Industrial: this one consists of car washes, storage units and any other special type of real estate where customers use your facility on a temporary basis.

Retail: it consists of trip malls, shopping malls and any other retail storefronts. When you construct a mall, you can rent it to a person interested in running it or you can run it yourself.

Mixed-use: this is where you combine any of the above categories into one project. For example, you can construct a storied building with offices, malls and residential areas.

Real estate investment trusts (REITs): this is where you invest in real estate trusts. When the mortgages generate profits, you get a share of it.

Tips on How to Be Successful In The Industry

For you to be successful in the real estate business you need to do a number of things:

Involve an attorney: regardless of the area of the industry that you are interested in always involve an attorney. A good attorney will help you in finding the right construction company. The attorney will also help you in writing professional rental contracts.

Neighborhood: the area where you invest in greatly determines the amount of money that you will make from your investment. To be on the safe side always go for a neighborhood that is growing or has the potential of growing.

Run the numbers: many investors assume that when they construct a building they will have a tenant, which is usually wrong. Before you invest in a building you should run the numbers and find out if you will be able to pay the mortgage if the property sits empty. If you find that you can’t be able to repay the mortgage in the event that the property doesn’t have a tenant for a month or two, chances are that you are stretching yourself too thin.

Real Estate

You have bought a beautiful house and everything’s working perfectly. But lo, it rains and your house is flooded with water! Yes, waterlogging issues can be an unforeseen problem that can arise after you have moved into your new apartment. Most common during seasonal rains, waterlogging can leave you stranded when you get out of your house. It’s true that most of us are still in the dark when it comes to dealing with this issue. Keep reading to find out some of the most effective techniques that you can use!

Understanding The Issue

Waterlogging in your house can be caused due to many reasons such as storm runoff, sullage, or damaged drain sewers. Apart from the short-term effects like hampering your daily routine, it also causes other serious damages like weakening the foundation of the entire house. When water mixes with other garbage and wastes, this can pose a great threat to your health. So, it is always important to understand these risks and deal strategically with water logging issues.

Effective Precautions And Strategic Troubleshooting

Once you know what the problem is, it becomes easier to take steps to troubleshoot. Some effective solutions to prevent water logging in your home are given below. Depending on the reach of the issue, you can employ any or all of the following solutions.

Solution 1: Rainwater Harvesting To Cope With Flood

It may be impossible to prevent the huge amount of water entering the premises during heavy monsoon rain or flood. But, it is possible to direct the flow of the water and treat the problem of waterlogging judiciously. Rainwater harvesting is the most effective way to cope with the issue of rainwater flooding your house.

Solution 2: Downspout Extensions For Basement Flooding

Installing downspout extensions is an effective solution to keep your basement dry. This helps in redirecting the water flow from the rooftops as well as basements to a safer location, such as a dry well or any other rainwater harvesting system.

Solution 3: Dry Well For Cheap Water Logging Solution

If you are looking for an economical way for solving water logging issues, nothing works better than a dry well. Standing water can be directed to the dry well using downspout extensions. The dry well is usually filled with stones, gravels, and pebbles so that water does not seep back into your lawn.

Solution 4: Installing A Sump Pump

Foreseeing the issue of waterlogging, you can install a sump pump that can pump out the standing water from your basement. This is a simple solution that can help you tackle waterlogging issues effectively.

Solution 5: Rain Gardens For Rain Runoff

Rain gardens are an ideal solution for apartments, schools, and other residential premises where run-off rainwater poses a major issue. Creating rain gardens in well-drained/sandy soils can be perfect for capturing storm water.

Solution 6: French Drains For Plain Surfaces

When you cannot judge the slope of your lawn to construct a dry well, a French drain, also known as the weeping tile is an effective alternative. A French drain is nothing but a trench filled with sand and gravel. It has pipes that drain the stagnant water and direct it away from the area.

Real Estate

Choosing the perfect investment avenue for yourself can be a strenuous experience, if you are not aware of the various options available. According to most investment experts, real estate and stocks are the best bet, when looking for a new investment. While both have their advantages, you cannot overlook the negative aspects as well. Here is a comparative analysis of property investments and stock investments-

Real Estate

The Benefits

1. Middle-Class Friendly

Real estate includes houses, apartments, hospitals, and other tangible things that middle-income and even lower- income groups are familiar with. This is in stark contrast to stocks, as the general population knows minimal about the latter. Hence, they prefer investing in property over stocks.

2. Safer Investment

Compared to stocks, which have a higher risk factor involved, property investments are relatively safer. While both real estate markets and stock markets are quite turbulent, the former has a bigger safety net. The reason being that with property investments, not much is left to chance.

The Drawbacks

1. More Research Involved

Stock investments are pretty straight forward and don’t require excessive research on the investor’s part. However, real estate investments involve a lot of hard work. From deciding on the property type to finalising on the mode of payment, there are a lot of tough calls to make.

2. Eligible For Tax Payment

Property investments are eligible for tax payments, which is not the case with stock investments. So, unless you rent out your property, you will stand to lose due to tax payments.

Stocks

The Benefits

1. Greater Profits

Most market analysts have agreed that stocks provide more profits as compared to property investments. Also, holding a stock for a long period of time has been one of the greatest wealth creators that puts stocks ahead of real estate in terms of the profit earning capacity.

2. Easier To Diversify

When you invest in the real estate market, you can only choose one property type at a time. This is not the case with the stock market, due to the availability of mutual funds. Mutual fund is a type of professionally managed investment fund that pools money from many investors to purchase securities. This gives investors a wide basket of stocks to invest in.

The Drawbacks

1. Ever Changing Price Trends

The biggest challenge for stock investments is that the stock exchange is fickle, as there is no telling when stock prices may soar or fall. While there are constant changes in the property market as well, the effects of the change are not as substantial.

2. Psychological Factor

Stock investments share some attributes with gambling. Like gambling, stocks investment also invites investors to invest more money with every gain that they make. Inevitably, this can be psychologically unhealthy.

Deciding on the type of investment depends upon a lot of factors. So, before investing your money, you must measure the advantages and disadvantages of real estate and stocks very carefully.

Real Estate

An important aspect of hiring a contractor to do work in your home is to understand what permits, special requirements or licensure are required for each job. Once that’s understood, you can know whether it’s best to hire a licensed contractor or a handyman.

REFERRALS
Be sure to ask for referrals and references and know the relationship of those referring parties to the contractor. Ask for pictures of installations on similar jobs that have been performed for others and give those referring parties a call or visit to ask how the work was performed, the attitude during the job, coming in on budget and wrapping up on time. Discover if there are any negative remarks online or with the BBB. Be sure he or she is qualified to handle the scope and type of work needed, especially with regard to special conditions such as lead based paint, asbestos, mold, etc.

IDENTITY
If the home is occupied, if personal items are stored there or is otherwise notid_verified vacant, be sure to qualify your contractor if he’s unknown to you through online services such as mysmartmove.com or others. Get a copy of the contractors driver’s license and have him sign a w-9 to include his social security number. If you’re an investor and renovations are common for you, you may want to investigate the Verify Photo ID app recommended by Inman News.

CONTRACT
Next, execute an Independent Contractor Agreement with your contractor. Be certain it has no verbiage or requirements to suggest the contractor is an employee of yours.

PHASES
Now is the time to outline and understand the three phases of the renovation. The initial Phase One is paid on day 1 of the job. The subsequent draws for Phases Two and Three should be paid by the week, on a Monday or Tuesday. In constructing the phases, the contractor should budget for each item and any overages or misquote is the responsibility of the contractor, not the homeowner. Make sure your agreement covers things such as milestones, and outlines the scope and sequence of the work to be completed. The contract should include the description of all work, and condition of Customer Satisfaction such as all items completed in a workman like manner, job site left clean and tidy daily, and no items incomplete.

MATERIALS
Ideally the home owner should have chosen paint colors, sheens, types for each space, cabinets, granite and whatever materials will be used in the project at the source. Have your Independent Contractor pay for those materials and have that provider deliver the materials to the job site, then reimburse the contractor immediately – this strategy avoids any appearance of establishing an employee/employer relationship. Do not pay for routine tools and supplies the contractor uses in his everyday business such as paint brushes, ladders, tarps, etc.

UPDATES
If you’re not the owner occupant at the job site, require the contractor to provide daily pictures and videos of each phase when complete before scheduling a personal inspection and before payment on that phase is released. An investor can use this in the future or marketing.

COMPLETION
In exchange for the final payment the homeowner should sign off that he is satisfied with the job, and the independent contractor should sign that he is releasing all liens in exchange for final payment.