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Monthly Archives: January 2017

Tricked in Real Estate Investing

Let’s face it – real estate investing on the whole is not the easiest thing in the world. And it can really be downright intricate and difficult at times and there are many ways that people can get tricked into making an investment that maybe they shouldn’t make.

So how can we make sure that we don’t make stupid real estate investments? How can we make sure that we aren’t the ones being tricked into making an investment that is stupid and unprofitable? Actually it’s easier than you may think and that’s what I’m going to talk about in this article today.

So here are some things that should send up a warning flag in your mind. If you see these things then you should definitely investigate further and potentially walk away. Of course not all of these things will mean that somebody is trying to trick you, it may just be a bad investment… either way you should spend some time to get to the bottom of it before you make any sort of decision.

The first thing to look at is low operating expenses. Sometimes sellers operate buildings themselves to get out of paying management fees. This lowers their operating expenses but if you purchase yourself, chances are that you’ll need to start paying management fees making this a nice little gray area that many people try to exploit.

Next look at property taxes. If somebody tells you that they’re paying property taxes that seem incredibly low, they may just be lying. You’d be amazed how often people just outright lie about things like this. You should always go straight to the county offices and look up the tax records that are public knowledge so that you can see before hand exactly how much property tax you can expect to pay in any given year. You can also discover if the current owner has not paid property taxes for the previous year or two.

Many times if the previous owner hasn’t paid, you will be liable for those property taxes so be on the lookout for that!

Energy efficiency is another thing to look for. Many times sellers claim that their building is energy efficient when in fact it’s not. Check with a local utility company to figure out the actual energy costs of the building and then check with the regulatory commissions to see whether or not the local utility companies are scheduled to increase their rates anytime soon.

So there you have several ways that people try to trick you in real estate investing. Armed with this knowledge you should be able to fend them off without too much trouble. Remember, knowledge is power and the more you know about an investment, the less the chances are that someone will trick you and take advantage of you.

Adverse Possession In Real Estate

Span Of Possession

While the period of possession is not the only criteria for acquiring adverse possession, it is an extremely essential one. In most countries, the minimum number of years of possession is 20 years. If this tenure isn’t met, you cannot claim a stake over the ownership.

Intent Of Hostile Possession

Another essential requirement for this type of possession is the intent behind the possession. The court deems that it will consider the transfer of ownership valid, only when the adverse possessor has a hostile intention to take over the land. However, hostile intent does not require deliberate, willful, unfriendly animosity. In fact, hostile intent does not depend on the mindset of the possessor at all. Rather, an act is considered hostile when it is inconsistent with the rights of the record owner and not subordinate to those rights.

Original Owner’s Acquiescence

The law states that this kind of possession is valid before 20 years of possession, provided that the original owner of the land willingly gives the title to the current owner. This can save both the parties a lot of hassle, but is usually extremely rare as no one wants to give away their property for free.

Homes for Sale and the Challenge

Just as you didn’t land your dream job by leaving it to chance, you shouldn’t make a career move into or out of homes for sale without thorough research and planning.

For example, consider the neighborhoods you wish to target. Apart from the regular considerations of safety and availability of good schools, think about proximity to your new workplace. Specifically, if you’re moving to or a city of comparable size, you can settle almost anywhere without being burdened by a lengthy commute.

Conversely, the right choice of locations in a large metropolitan area can make the difference between a short drive to the office and a long haul traversing two time zones. Taking a new position is stressful enough as it is, so why compound it with a trip that really puts the “hour” in rush hour?

Relocating for work, like the work itself, is a two-way street. Not only does it benefit you and your family in the form of more opportunity and perhaps better pay, but it also helps the company put the right person in the right position.

That explains why many businesses offer relocation assistance ranging from reimbursement for moving expenses like transportation and storage to free temporary housing that can ease the transition to or from homes for sale. Should they fail to offer anything, ask what’s available and be prepared to negotiate for moving support that’s not currently being given. Remember, if you’re valuable enough to be uprooted from your present life for the betterment of the company, they can darn well help to replant you.

Before you start shedding tears of stress and get overwhelmed with homes for sale, cry for help instead. Ask the realtor who’s assisting you with the sale to connect you with one of their colleagues in your new city. If they don’t know anyone, check with friends, family or your new co-workers for a recommendation.

Once you find someone you trust, they can ease your burden by suggesting neighborhoods that meet your needs, scheduling viewings and offering lots of suggestions to facilitate the moving process. Best of all, since realtor fees are paid by the seller, you can get expert advice and peace of mind without spending a dime.

Stay Away From Real Estate Fraud

a) Foreclosure Fraud

Cash-strapped property owners that can’t afford to meet mortgage payments sometimes get taken for a ride. Deceitful people make an offer to pay the loan on the owner’s behalf, as if to help them out of the situation, but then leave without fulfilling the promises. The trickery usually requires immediate payment for the trickster’s services and an agreement to transfer the property title to him or her. Once this is done, the trickster flees, while you are left behind with piling amounts of debt and no property. This type of fraud is called foreclosure fraud.

b) Home-Equity Fraud

Watch out for those people who are eyeing your house equity. If you rely on your house equity to borrow money, you have to constantly be on the lookout for unscrupulous lenders so you can stay away from them.

When it comes to leveraging properties, there are huge risks involved. The risks must be carefully explained by your lender. Those who want to make extra bucks will embellish their application such that the income, down payment, and property assessment values are exaggerated, ultimately helping themselves to a huge loan amount.

Be Wary Of Money Laundering

Money laundering is another common method of deceit. Illegal money is made to seem like a clean asset. Stay wary of people who purchase a property with illegal proceedings and sell them to other people. On the face of it, the property might look legitimate to you, but only careful inspection and assessment can spell out the dirty secrets.