Real estate investment trusts
UNTIL JUST NOW, most investors couldn't have cared less about real estate investment trusts, or REITs. Morgan Stanley Dean Witter's REIT index lost 5% in 1999--the second negative year in a row. But lately REITs have been edging up as most U.S. stocks head down. Since bottoming last December, property-owning REITs have risen an average of 4%. And with their prices still so depressed, these stocks are terrific investments for people who need spendable income--dividend yields average 8.5% for property-owning REITs and 11.7% for those that hold mortgages. Examples of the new life in REITs abound (all those listed here trade on the New York Stock Exchange). Equity Residential Properties Trust (symbol EQR) rose from less than $29 in mid December ....

Old House? New House? Weighing Your Options
Maybe it has something to do with a childhood home we fondly remember. Many of us long for old homes built with solid construction, quality craftsmanship and beautiful details. We wax poetic and wistfully recall the hand carvings, plaster walls and eyebrow dormers of homes we’ve known. On the other hand, how do the old homes we admire compare with newly minted models—and what should we consider before deciding which to buy? Location. Typically, old homes sit on generous plots of land in or near town. The neighborhoods are established and usually more central to schools and shopping. Mature trees and plantings provide shade and beautify the property and neighborhood streets. New homes are generally found in new developments outside of town and homeowners who buy into an early can expect to contend with dust and construction sights and sounds as the remaining phases are being built. Landscaping may be skimpy or nonexistent, but a buyer has the opportunity to design the décor from scratch. Layout. New homes tend to have a more spacious functional layout with higher ceilings, bigger windows, family kitchens, walk-in closets, and family rooms. Some even have media rooms and come pre-wired for cable and computers...

Victorian. Modern. Colonial. What’s Your Architectural Style?
You are attracted to a home for more than its number of bedrooms and square footage. Whether consciously or subconsciously, you are drawn to the individual character of a home. Part of what makes up that character is its architecture style. During various periods of our history, different architectural styles were prevalent with builders. If you were to take a home tour around town, you can get a feel for when different neighborhoods were built based on the architecture of the homes. Today, many new homes incorporate different aspects of these styles on the exterior and interior. The Queen Anne, Gothic Revival and Empire homes are all variations of the Victorian style. Popularized after the Civil War, these homes were most popular in the South and West. With its intricate shapes, elaborate trimming, and fish-scale shingles, these homes truly reflect the Victorian age. Inside, the homes are finely detailed with stained glass windows, elaborate trim and molding, and side-by-side entry doors. Other common elements are wraparound porches and bay windows. Greek Revival-style homes were built during 1820-1850...

Fantasy Gap [fast money in real estate]
I was in the rental business for seven-years, made 1.3 million dollars the first five years, got ill, and had to get out of it slowly, but had the money to do it. I could have made five million had I stayed in another five years. But my point in is this: I watch TV, on all these quick ways to make money, and people really belief this crap. I mean, I owned seven buildings, but I worked 24/7. Ended up in court a dozen times; fought with the State over this and that. I mean, you don’t get it for nothing like these TV fantasy folks would have you belief. Just buy this and that and don’t invest, and you’ll make it. First of all you need credit. Second, if you don’t have $20,000-in the bank, if a furnace goes out, or your gas pipes go out, or whatever, who is going to pay for it? What can happen, will happen; the fantasy people forget to add that little equation into the formula. But why do people fall into this group? I thought about it, and being a licensed counselor, I met a lot of people who fell into this gap. I call it the fantasy gap. Everyone herds to them like wild geese. These TV folks tap into your fantasies. Easy to do, even Hitler said: “It is easier to fool the masses than...

Real Estate: Choose a Realtor You Can Trust
Today’s volatile real estate market involves complex laws and fluctuating financial conditions. Maybe you’ve outgrown your first home; maybe you’re in the process of turning over your fourth. Whatever your unique set of circumstances, you want to be well-informed every step of the way. Thus, it pays to choose your real estate advisor carefully. Your realtor should no doubt hold considerable, first-hand property investment experience. The more financial and legal knowledge he or she has, the better equipped to guide you in your home-buying and selling decisions. If you can find a realtor who is also a licensed attorney, hang onto him for life! Did you know: home equity yields a 10-12% investment rate with every transaction. If you put 10% down on a $300,000 home, you’ll be able to sell the same residence for $600,000 in approximately 7.2 years. The more homes you buy, the higher you build your home equity-- and the lower your interest rate drops. That means the more real estate you turn over in your lifetime, the greater your net return. It’s called compound growth, and it’s a win-win situation...

Investment Concerns for Selling Your Home
Besides the emotional upheaval of uprooting from your home, your property is most likely the biggest investment you have ever made, and its sale causes financial stress as well. You must protect your investment nest egg and secure your future. Not only do you want the highest sales price, you want to make sure you don't pay too much in selling costs. If you feel comfortable showing your home and handling some details yourself, check out flat-fee real estate brokers who list homes on the MLS for a lower price than the usual six percent commission. However, note that a great listing agent may be able to sell your home for more money and make sure that you don't pay more than your fair share of closing costs. A friend of mine just sold her home. The first offer brought to her had her paying the seller’s closing costs. Her listing agent didn't make this clear to her. This is why you must understand what the sales contact means to you, in detail. Her second offer--the one she signed--has the buyers paying their fair share of closing costs, plus they put up a $5,000 deposit and $140,000 down. This secure offer will pay her thousands more than the first offer. Do some research and reading about the selling...

Home Staging Strategies
You, as a home seller, have two initial choices. 1. Sell your home as a bargain to investors or bargain shoppers with limited income, or 2. Sell your home for top dollar to your target market. To prepare your home to sell to investors and bargain shoppers, all you need to do is look for a real estate agent who does a lot of advertising of fixers and handyman specials. This agent will list your home under market value. Then sit back, watch TV, and sell your home for a rock-bottom price. Don't be surprised when you get many offers for lower than your asking price right away. If you want to work a little, or perhaps a lot, you can sell your home for top dollar. Explore ways to create a buyers’ dream home. Because buyers let their emotions rule their decisions, stage your home for your specific buyer profile. To sell your home for market value quickly, remove all your personality from the home. Besides getting rid of clutter...

Why Move to the Poconos?
Awaken to the sounds of softly rustling trees and tranquil gurgling streams. Stroll along quiet lush wooded mountain trails. Fish, golf, camp, and explore to your heart’s content... all within minutes of your own home. Have you ever vacationed in a beautiful natural setting and dreamed of living there permanently? Now you can make that dream a reality. The Poconos invites exciting new settling options... safe communities and quality modern housing developments, sequestered in the breathtaking mountainside of Eastern Pennsylvania. Today, the Poconos is more than a weekend getaway; it’s thriving communities of people leading active, full lives. What better place to raise a family than one that offers clean air, gorgeous landscape, friendly faces and trusted community members; plus a host of recreational activities? Weary of the metro hustle and bustle? Take the long road home to peaceful surroundings... where the only noises you’ll hear are crickets, songbirds, and your own sigh of relief. Choose the Poconos with confidence...

How to Use Design Psychology to Stage Your Home for a Top-Dollar Sale
A new business venture to help home sellers, home staging, assists property owners in preparing their home for the best possible sale. Home stagers visit your home and either tell you how to redesign it or actually do the work for you. These services do great work, but they don't always understand interior design. They know what sells houses, but many home stagers could benefit from a little interior design and marketing psychology training to assure the homeowner of a top-dollar sale. How does design psychology help stage your home for a top-dollar sale? Design psychology helps you with emotions: yours and your prospective buyers. You must learn to love your house at the same time you learn to let go of your home. When you remember why you bought your home in the first place and clean it up with love, your care radiates throughout. Your buyers pick up on the undercurrents in your home; they want to buy happiness and a new lifestyle. You need to let go of your home so that you can be objective about staging your house. Thinking of your house as an investment or product for sale clears your emotions to pack up your personal treasures, which showcase your personality...

Get Rich With Mobile Homes
Does the myth that mobile homes depreciate in value keep you from investing in them? Well, they do lose value in a park, on a rented lot. Mobile homes with real estate, however, are an entirely different investment. My mobile home doubled in value in the twelve years I lived in it. The home deteriorated a little (don't all houses?), but the value of the land continued to rise. Also, by renting rooms, I took in far more money from my home than it originally cost, and I was living in it! Forget your prejudices and look at the numbers. In this town, for example, a two bedroom house rents for $800/month, and costs about $120,000. A mobile home gets $500/month, but you can buy one on real estate for $50,000 or less. The cash-on-cash return on investment is obviously higher with mobile homes. What about the long term return from appreciation? House rentals here typically have negative cash flow...