Tips to Keep in Mind If You’re Thinking about becoming a Real Estate Investor

RISMEDIA

RISMEDIA, February 7, 2011—With homeownership dropping and rental vacancy rates rising, it is clear many Americans are looking to make a change to renting instead of owning their home. Currently, homeownership levels are at 66.5%, the lowest they’ve been since 1998, reported recently by the Department of Commerce, and the rental vacancy rate at 9.3%, the highest its been since 2003. Many prospective investors could take this information and apply it to a very lucrative decision for future investment property purchases.

Nancy Braun, owner and broker-in-charge of Showcase Realty has been a real estate broker for over 14 years. Her expertise lies in REOs, short sales, distressed properties and she recently became a Neighborhood HUD Listing Broker. A large amount of her listings are being sold to real estate investors and she is sharing a few questions and tips to keep in mind if you are thinking about becoming a real estate investor.

What is real estate investing?
Real estate can be a great long-term investment. It is a tangible, cash-generating asset and appreciates in value. Real estate investment has proven to be a powerful method of accumulating wealth over time and investors are getting a return on their investment (ROI) in three ways: cash flow, return on taxes and appreciation.

What are the benefits of real estate investing?
The main benefit of real estate investing is the profit that you can make if you handle your investment correctly. Having a rental property provides a source of regular income, but other than that, investment properties qualify for numerous tax deductions which may include cost of building maintenance and repairs and interest paid on loans related to the property.

Are you looking to rent or flip?
Before you start looking at properties, you should decide on what you are going to do with the property once you attain it.

If you choose to buy, hold and rent it, take into consideration the responsibility it takes to be a landlord. You will need a lease agreement specifying what you will be responsible for maintaining, fixing, etc. and what the tenants will be responsible for like amount of rent, date of payments, leasing length, etc.

Becoming a landlord can turn into a very profitable venture if you make sure you are well-versed in property management, including fair housing laws and eviction and collection procedures. While you can self-manage, it may be wise to outsource this to a local experienced and qualified property management company. Either way, you must maintain the property to best preserve its value so it can eventually be sold at a significant profit.

If you choose to flip the property, you must take into account any and all property updates and repairs that need to be made. The term “flipping” means that you purchase a home, repair it and resell for profit. Both renting and flipping can be substantial financial investments, so make sure you have a reasonable budget in mind for the possible updates that will need to be made. Flipping a home can be considered less of a responsibility than becoming a landlord, but you must keep in mind that someone will be living in the home you are flipping and you want to make sure they will find it worth their money to purchase and move into. Consult your attorney and lender for restrictions on flipping. Keep in mind that flipping may not be the wise choice in a down housing economy.

How are your finances?
The better your credit, the more likely you will be able to get a decent loan. Since lenders know people are more likely to default on investment property, they usually require bigger down payments, higher interest rates and stronger finances for rental property investors. It will also be prudent to have a cash reserve left over after buying the property to put toward unexpected vacancies, maintenance and repairs. Typically the lender will require 20-25% down on an investor loan. In some instances a 10% down payment may suffice.

Additional considerations
-Location, location, location. If you decide on renting your investment property, make sure it is in an area where you can attract tenants. The same rules apply for finding a home to flip. When trying to sell a home, if it is located in a strong resale area, not only will you have a shorter hold time, but you will likely benefit from a greater return. Be sure to seek out a real estate agent that has experience advising investors not just owner-occupants.

-Timeline and budget. Having a reasonable, realistic timeline and budget for repairs will prepare you for success in your investment venture. Make sure to stick to the guidelines you set for yourself so you can end up with as much profit as possible and not overpay for your investment. Do not over-improve. This is not your personal residence. Only make improvements that will either make it more attractive to sell/rent, and/or will reduce your hold or vacancy time and ultimately show a return on your investment. There will always be unforeseen issues that may hold up construction or unexpected costs, but make allowances for such problems and you will stay on track.

Where can I find an affordable home to invest in?
With home prices at an all-time low, we are currently in a buyer’s market. There are many houses on the market being sold well below tax value that are just waiting to have a little TLC given to them to make them shine again. Seek out a real estate professional that specializes in real estate owned (REO), short sale and distressed properties and who also has experience working with investors.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

What will happen with the rail plan in Park Circle?

Park Circle residents turn out for rail meeting

By Daniel Brock
Published Jan. 12, 2011

Residents of a North Charleston neighborhood are mobilizing in their fight against the state’s rail plan.

More than 120 community members attended the Olde North Charleston Neighborhood Council’s monthly meeting Tuesday night, a gathering that usually attracts a crowd of fewer than 10.

Worried faces filled the room on East Montague Avenue as citizens voiced their concerns over the S.C. Commerce Department’s rail plan, which city officials say likely will have a dramatic effect on quality of life in the area.

The plan calls for construction of an intermodal rail yard on 71 acres near the Clemson University Restoration Institute’s wind turbine test facility at the former North Charleston Navy base. The rail yard would provide near-dock access to the S.C. State Ports Authority terminal under construction at the base’s southern end. The region’s two Class I railroads, CSX Corp. and Norfolk Southern Corp., would use the yard.

North Charleston officials warn that the state’s plan would triple train traffic in the Park Circle area while greatly expanding the trains’ size — to almost two miles long in some cases. Residents questioned how the plan would affect emergency services, traffic patterns and property values.

City officials contend the Commerce proposal goes against a 2002 agreement with the SPA prohibiting that agency from using track that runs out the base’s north end and past areas North Charleston has spent millions to redevelop in the past decade.

Norfolk Southern trains would access the Commerce facility via tracks that run next to Park Circle, and CSX would arrive at the yard from the south.

“We’re going to spend a lot of money” on a legal fight against the plan, North Charleston Mayor Keith Summey told the crowd.

Summey said that the city has spent $15 million on its Waterfront Park, $2.1 million on another park on the south end of town and $3 million on redevelopment of the East Montague area, based on the belief that heavy trains would not rumble through the area.

He added that a renaissance in the area that includes extensive business and residential growth would have never happened had people thought they would one day have a rail yard as a neighbor.

Asked who had moved to Park Circle during the past eight years, nearly everyone in attendance raised a hand.

“We’re in for a fight folks, and we need your help,” said Summey, who said he wanted to bring 250 residents on a trip to address the state Legislature.

Already, a group of residents has formed a Facebook group, which is growing rapidly, and a website has popped up. The site allows users to sign an online petition and write letters of support.

A large e-mail list was compiled by meeting organizers during the gathering, and 100 bumper stickers that read “Save Park Circle No More Rails” were long gone moments after the crowd was dismissed.

Nicholai Burton, 28, lives in Park Circle and operates a nonprofit movie theater on East Montague Avenue. He helped design the website and said that TV ads and more Internet campaigns are on the way.

“We’re going to do what we can,” Burton said.

8 Tips for Finding Your New Home

By: G. M. Filisko

Published: February 10, 2010

A solid game plan can help you narrow your homebuying search to find the best home for you.

1. Know thyself

Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look

List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order

Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline
Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term

Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®

Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic

It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit

It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

Parkway would complete I-526

DOT unveils plan for low-speed 4-lane with bike access

By Diane Knich
The Post and Courier
Thursday, July 29, 2010

The completion of Interstate 526 from West Ashley to Johns Island and the James Island connector likely will be a low-speed, four-lane parkway that includes a path for bicycles and pedestrians, according to the S.C. Department of Transportation.

But transportation officials said the proposal is not final and could be modified after the agency gathers input from the public.

The Transportation Department released its preferred route Wednesday at a meeting in Charleston County Council Chambers. The proposed "parkway" extends from the end of I-526 at U.S. Highway 17 in West Ashley, across the Stono River to Johns Island and James Island, where it ties in to the James Island connector at Folly Road. The road would have speed limits between 35 and 45 mph, and most sections would have a planted median. The plan includes two 65-foot-tall bridges over the Stono River.

In 2009, the Transportation Department presented to the public six alternative routes for finishing I-526. The preferred alternative presented Wednesday is a hybrid of two of those proposals, project manager David Kinard said. "It's a lot different than anything we've proposed before," he said.

Kinard said the proposed parkway would cost about $489 million, which is lower than any of the other "reasonable" alternatives. There is $420 million from the State Infrastructure Bank available for the project, he said, and he didn't know yet where the Transportation Department would get the additional money.

The S.C. Department of Transportation's recommended preferred alternative for the completion of Interstate 526 includes:

--A four-lane parkway with a 15-foot, center median.

--Posted speed limits between 35 and 45 mph.

--A multi-use path along the entire length to accommodate bikes and pedestrians.
--Connection to James Island County Park and the West Ashley Greenway.

--Two connector roads onto Johns Island.

--The lowest cost of the seven reasonable alternatives at $489 million.

Public officials and citizen groups already were beginning to weigh in on the proposal Wednesday afternoon. Charleston Mayor Joe Riley and a consultant to the town of Kiawah Island were pleased with the plan, while the Coastal Conservation League and James Island Mayor Mary Clark came out against it.

Riley said he's "extremely happy with the wonderful solution. It's a quieter, more appropriately scaled road." Riley also said he was impressed with the bike and pedestrian path.

Paul Roberts, former chairman of the Kiawah Island Community Association and a consultant on road issues to the town of Kiawah Island, said "it's wonderful to see this thing is still alive."

Roberts said the proposal represents "a compromise that might be embraced by a larger number of people."

For people who live on Kiawah and Seabrook islands and parts of Johns Island, it means shorter trips to West Ashley and downtown Charleston, he said.

But not everybody was happy with the proposal.

Josh Martin, the Coastal Conservation League's program director for land use, said his group is opposed to building a new road, and instead would favor making improvements to existing roads to relieve traffic congestion.

He also said he doubted the proposed road would alleviate traffic problems and that drivers would actually drive 35 to 45 mph on "a four-lane highway."

Martin also questioned why the Transportation Department was holding public hearings on Aug. 31 and Sept. 2 at Burke High School on the Charleston peninsula. Most people who would be affected by the new road live in West Ashley or on James and Johns islands, he said.

Kinard said the Transportation Department hopes to have a final plan by the spring of 2011.

Clark, who with Town Council has voted twice to oppose I-526 coming to the island, said the plan to bring the route in as a parkway is a thinly veiled Transportation Department effort to get its project through. "Whether you call it a parkway, an avenue or a boulevard," she said, "it's still intruding across James Island and bringing traffic here."

Ron Barber is a retired teacher who lives in West Ashley near the starting point of the proposed extension. He said he wasn't surprised by the proposal but still opposes the plan.

"I have a Florida room, and I don't like the idea of people driving by and waving at them."

Edward C. Fennell and Melvin Backman contributed to this report. Reach Diane Knich at 937-5491 or dknich@postandcourier.com.

Tidal Creek Lot in Seaside Estates

Owen Tyler Carolina One Real Estate owen@owentyler.com (843) 224-5398 0 Sea Bass Cove, Charleston, SC Waterfront Lot in Seaside Estates 0.23 acres Vacant Land offered at $299,000 Lot Size 0.23 acres DESCRIPTION Great views of Clark Sound and Morris Island Lighthouse. Lot is located on quiet cul-de-sac in upscale Seaside Estates. Neighborhood has dock and lakefront park for the use of the residents and a private boat launch with a crab dock. Wonderful opportunity to build your dream home in an established James Island neighborhood with unbelievable views. see additional photos below LOCATION FEATURES - Dock - Tidal Creek ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 4 Photo 5 Photo 6 Contact info: Owen Tyler Carolina One Real Estate mailto:owen@owentyler.com?subject=0 (843) 224-5398 For sale by agent/broker Equal Opportunity Housing Posted: Jul 17, 2010, 1:01pm PDT

SC Safe Home program issues more than 1,000 grants in coastal counties

Staff Report
Published Feb. 22, 2010

The S.C. Department of Insurance's SC Safe Home program has awarded 1,018 grants to S.C. homeowners, according to Scott Richardson, the department’s director.

"In the little more than two years since it began, the SC Safe Home program has helped more than 1,000 homeowners with mitigation projects aimed at strengthening their homes against the destructive winds of a hurricane," Richardson said.

SC Safe Home offers coastal homeowners grant funds to assist in the strengthening and fortification of their homes.

Grants of up to $5,000 are available for owner-occupied homes. They may be awarded on a matching or nonmatching basis. To date, SC Safe Home has awarded grants totaling about $4.57 million to homeowners in Beaufort, Berkeley, Colleton, Charleston, Dorchester, Florence, Georgetown, Horry, Jasper, Marion and Williamsburg counties.

According to the Federal Emergency Management Agency, every $1 spent on mitigation saves $4 in possible losses and the resulting reconstruction costs.

“Structures retrofitted through SC Safe Home are more attractive risks to insurance companies,” Richardson said. “Homeowners that completed mitigation projects have reported premium reduction savings of up to 24% on their property insurance.”

Of all the grant recipients, 76% chose to retrofit their roof systems. Homeowners who replaced their windows with impact-resistant systems and hurricane shutters report an average savings of 29% in their energy costs.

For more information, call 803-737-6207.

JAMES ISLAND PRICE ADJUSTMENT

Just reduced on James Island to $380,000.

Sellers are also offering a $2,500 towards Buyer's Closing Costs or Decorating Allowance, with acceptable offer. This is a must see on James Island, call today to schedule a private showing!

CHARLESTON NAMED #2 "NEXT CITY"

NGC has recently published a ranking of these cities in its 2009 Next Cities™ list, which includes the 80 best cities for young professionals in the United States and Canada. This article discusses the Next Cities™ list and its implications for employers and site selection professionals


Read the full article http://www.areadevelopment.com/siteSelection/august09/next-generation-cities-knowledge-workers.shtml

For more information on Buyer and Selling real estate in the greater Tri-County area please call or e-mail Owen Tyler at 843.224.5398 or Owen@OwenTyler.com.