New York Real Estate

Any property can become empty at any time under many different circumstances. When a property is unoccupied a standard house insurance policy will only usually provide cover for up to 30 days. This is when one must obtain an empty property insurance policy to keep their asset properly insured against risks such as fire, storm damage, theft etc.

There could be any number of reasons why a property may become vacant. The property could be a recent purchase by a landlord and is undergoing renovation prior to either letting it or selling it on. The property owner may have moved on and their current property has become empty until a new purchaser is found. The property owner could be erecting a new extension and has decided to move out of their property whilst the works are being carried out. What ever the reason it is still crucial to ensure that the empty property is sufficiently insured. If there is a mortgage outstanding on the building then the lender will insist on some form of insurance cover on the premises.

There are specialist insurance companies and brokers in the UK that specifically cater for the needs of a property owner with an empty building. Insurers and brokers that offer unoccupied property insurance quotes will normally have extensive knowledge on this subject and can help with risk management advice. Under an empty property insurance contract, the terms and conditions will differ from those of a standard home insurance policy. Get your advisor to go through with these in detail. There could be conditions on locks, how the water is left and how often the premises need to be visited etc. These conditions will vary from insurer to insurer.

Normally a property may be empty for 3 to 6 month but in certain scenarios it could be vacant for a year or even longer. If the property owner is certain that the property is not going to be empty for longer than 3 or 6 months then some insurers will offer a short term policy. A short term unoccupied property insurance policy can also be purchased online from some insurance companies. The property may be empty but as a property owner you still have duty and care to treat the premises as if there is no insurance cover in place.

A few basic rules in taking care to minimise the risks to your empty property include making sure all accessible windows and external doors are fitted with good locks, turning off the water supply and draining the system, installing an alarm system if budget allows it. Also visiting the property periodically to clear any post and to keep the lawn mowed. Give the property a look that says it not unoccupied. Install timer switches for the lights to turn on and off at random times.

Some insurers will also convert the empty property insurance policy to a landlords let property policy if you decide to rent the premises during the term of your policy. Or it could be converted to a standard home insurance policy if you move in yourself. Insuring a property that is vacant is essential and expert advice is crucial to ensure that the level of cover you obtain meets your exact needs.

By: Mark D'Monte

About the Author:

Create a video blog

Second mortgages are an increasingly popular way for homeowners to raise finance by using the equity in their property. Second mortgages are also known as “home equity loans” and “secured loans.”

Essentially, second mortgages are loans secured against properties on which there are already first mortgages from different lenders. As an alternative to second mortgages, applicants could receive a further advance on their first mortgages instead.

Second mortgages are used extensively throughout the UK by homeowners who wish to release equity from their homes in order to fund activities such as home improvements, debt consolidation, purchasing a new car, or funding a holiday.

Lenders are willing to approve second mortgages for almost any purpose so long as the combined loan-to-value ratio of the first and second mortgages does not exceed their allowable upper limit.

Basically, home owners who have equity in their properties can secure second mortgages against them in addition to the first mortgages. The funds from the second mortgages will be deposited into the borrowers’ bank accounts which can then be used for any purpose.

It is important to note that second mortgages are usually secured against the borrowers’ homes. Taking out second mortgages could therefore lead to home repossession if the borrowers do not keep up with their repayments.

Secured loans normally have a shorter term than first mortgages and also attract higher interest rates due to the perceived increased risk by lenders. Therefore the monthly repayments on second mortgages can seem excessive when compared to first mortgages.

If the repayments on second mortgages seem too high, borrowers should instead consider releasing equity be increasing the balance of their first mortgages. Because the interest rate will probably be lower, and the term of the first mortgage longer, the increase in the monthly repayment should be less than for the monthly repayments on second mortgages of the same amount.

If applicants would prefer to not put their homes at risk they may wish to consider applying for unsecured loans instead. Unsecured loans, or personal loans, are not secured against the equity in the borrowers’ homes and therefore do not put their properties at risk.

It should be noted that unsecured loans usually come with higher interest rates than second mortgages.

If borrowers are in any doubt with whether or not to use second mortgages to raise funds, they should consult with an independent mortgage adviser.

By: Michael Sterios

About the Author:

Website content

Finding a green architect to build your dream home is not an easy task. With the rise of the “going green” movement, many eco-friendly designers and architects are now available to you. However, more is not necessarily better. How do you choose the best architect for your project? How do you know that the architect is truly green? And where do you look? Here we discuss these pressing questions.

Green Rule Number 1: green architects don’t grow on trees

Most green architects list themselves on green design web directories, environmental magazines and design books. Begin your search on the web. You are likely to come up with many names. One way to limit your search is by checking weather your prospective green architects have a LEED certification.

In order to be considered green, architects must pass the LEED exam (leadership in environmental and energy design), which is composed by USBC (The US green building council). It is also a good idea to verify any diplomas, certifications, and professional affiliations of your candidates.

Green Rule Number 2: Talk to your prospects

Once you narrowed your list to five candidates or so, call or arrange for a meeting (don’t forget to ask if your candidate charges for a meeting). Tell your prospects about your ideal home and ask them for an estimate. Remember that the meeting/phone call is mainly for you to get a feel for your candidates. Since you are going to be working with your architect closely for the following months, you want to make sure you are comfortable with whomever you choose.

Green Rule Number 3: Visit a finished home

Ask to the architect visit a house similar that they designed in style/design to what you envision. There is nothing quite like seeing a finished home when you choose an architect. Take the time to talk to the homeowner about the architect. Were they aware or deadlines? Were they available for questions between meetings? and so on

Green Rule Number 4: Take your time Building a home is a long process, and you want to make sure you have all the right components to build the best home. Finding a great green architect is one extremely important step you should take. Searching for the right architect may be time consuming, but do not rush it. You will spend a lot of time and money with an architect so you want to be sure that your chosen architect is the right one for you.

By: Moti Gordon

About the Author:

Caffeinated Content

Home sellers need to be aware of certain important details when they decide to carry back a note in a real estate transaction. When the complexities of traditional financing are removed from the sale of real estate transaction and seller financing becomes the solution, the process is so simple that it is easy to over look some of the details.

The only difference between traditional lending methods and seller financing is who the lender is. The financing process should be the same in both instances but with seller financing it is easy for seller to get overwhelmed and lose track. Sellers should follow the same process just as if a third part lender were involved.

Fires do happen and if you are the note holder of a property that just went up in flames, you want to have piece of mind that the payor has adequate property insurance to cover for the loss. If property insurance with adequate coverage has not been put in place then you just watched the collateral secured to your note go up in flames. What are you going to foreclose on if the payor decides to quit paying you and walk away?

The policy should designate the note holder as the Loss Payee. This designation will ensure that the he or she is informed on the status of the policy and receive a certificate of insurance with each renewal. Every year the note holder should insist that the policy be renewed with adequate coverage for property loss.

Often when seller financing is the solution to a real estate transaction, the insurance policy is the item that is overlooked because it is the responsibility of the payor. Note Owners should require home buyers as a part of the contract to purchase adequate property insurance. Selling a note that does note have adequate property insurance or no insurance at all would be very difficult to sell on the secondary market. Expect to take a deep discount if a seller is willing to purchase without insurance. This is why it is so important to have a note professional on board to verify each element and protect the structure of the note and the creator.

Story: The Texas Note Company recently assisted a customer with the sale of an owner financed note in Pflugerville Texas. A mobile home note with land. The note had a face value of $50K with a balance just over $42K. We were able to give her a full purchase offer for the note which she accepted. She provided us with all the necessary documents we needed for the sale of her note.

Deed of Trust
Note Document
Warranty Deed
Settlement Statement
Property Insurance
Social Security Numbers of the payor
Payment History with Bank Deposit slips
Pictures of the property

(Just a little note: If you are considering selling your note or want a note quote we will need these documents t)

Upon reviewing all the documents it was determined the the property insurance policy was only for $5,000.. This was an issue because if the home burned down or was destroyed the home owners policy would have not been able to replace/rebuild their home with just $5,000. The risk to an investor would have been to great and to find a buyer without the proper coverage would have been very difficult. If the home was destroyed and the payor walked away what would be left to foreclose on? This story ends well, Texas Note was able to work with the payor and their insurance agent to increase the amount of the policy to the required level of $45K at a cost increase of just a dollar a day to note payor. Additionally, we amended the Deed of Trust to include the clause that the proper amount of property insurance must be maintained each year. Then the deal was closed and the note seller received a lump sum of cash.

By: Robert E Young

About the Author:

Property Insurance

Property rental is one of the best ways to make a short term income from your long term investment. And the more properties you own, the more demands on your time you’ll have. That’s where property management software can release you from this burden. Read on to find out why we believe that property management software can really benefit landlords:

ONE: Automate Tasks

Save time and the repetition of boring tasks by automating as much of the financial side of the letting process as possible. Allow the property management software to take the dull and time consuming tasks and automatically perform them while you work or sleep! When those tasks are automated, you’ll find renting your property a piece of cake.

TWO: Keep Accurate Records

Renting a property is a form of income and you must keep adequate records of all payments that you receive from the rental of your property. Property management software will keep your records accurate and accessible at a moment’s notice. All this offers a stress-free approach to bookkeeping for your business.

THREE: Identify Tax Deductibles

Identify where the money you have spent on renting the property can be deducted from the income you are earning by renting them. By seeing a clear picture of your income and expenditure, you’ll be able to adjust your spending and manage your rental prices to ensure that your properties are offering you the most competitive income possible.

FOUR: Keep Track of Payments and Rent Arrears

With multiple properties, it may be a bind to keep track of all the rent payments and difficult to stay on top of things if the unfortunate situation of rent arrears occurs. Track every aspect of the financial side of your property rentals effortlessly.

FIVE: A Slick Portfolio for Property Investors

Using property management software, you can take a broad overview of your portfolio of property investments. Quickly access any information that you need to keep a close eye on your investments.

SIX: Produce Reports

Property Management software will easily produce reports without spending hours at the computer. Simply hit a button and wait for the printer to whirr, quickly you’ll be able to take away your property rental reports to make future property investment decisions upon.

SEVEN: Compare Properties

Without great property software, you may struggle to see which of your properties is making you or losing you money. Which property causes you the most problems? Is it time to sell a property that’s always costing you money? Are you letting properties for less than they are worth? By using software, you’ll get to see the big picture.

Let Property Bookwork help you to run the financial aspects of managing your property with our unrivalled property management software designed for landlords, accountants and bookkeepers.

By: Gail Nelson

About the Author:

Caffeinated Content

It has been estimated that over 95% of the world’s millionaires have made money through investing in property. It has also been said that the best way to become successful it to find someone who is, and copy what they have done. With this in mind, once you are aware of the huge potential that property investment has for creating wealth, and have decided that you would like to follow this course of action, how do you know where do you start?

The most important thing you can do is become informed. Learn how to research the property market, so that you will be able to purchase properties that will not only give a good rental yield, but they will also return the best capital growth possible. Read as many investment books as you can. Read auto-biographies of successful people. Learn what they did right, and even more importantly what they did wrong, so that you won’t make the same mistakes. Speak to people who have succeeded in doing what it is that you want to do. The more you learn, the easier it will be to recognise a good investment.

Find out about Negative, Neutral and Positive gearing – and why gearing is such an invaluable tool, which will enable you to build up a wealth base in accelerated time, compared to if you only invested your own hard earned dollars.

Once you have educated yourself and understand why investing in property is such a powerful tool, you will be able to embark on the road to financial security.

In Australia, and many other countries less than 5% of the population reach retirement able to support themselves, without government or family assistance. If you want to be one of the elect who are self sufficient at retirement, then now is the best time to start striving toward financial security.

By: Debra Lohrere

About the Author:

Caffeinated Content

Investment leverage is the concept by where you leverage the value of borrowed money to increase the overall profit of an investment. When looking at property investment this would involve borrowing money from a bank or lender to supplement a lump sum or deposit to purchase property. Your profit or equity increases at the rate of the overall property increases, the increasing value of the property becomes your profit. If used properly, property investment leverage can be an effective tool for real estate investors to increase their return on investment. The key to success is to avoid making decisions without proper consideration of the key areas of risk in leverage.

1. Don’t Bank on High Levels of Appreciation

If the market crashes, or levels out you don’t want to be left out of pocket. If the numbers mean you will be in trouble if the value of your property doesn’t increase then it probably isn’t a smart investment. As appreciation is where you will gain your profit in property investment, it is fine to simply stay a float in a level marker situation.

2. High Repayments Can Be a Killer

High repayments can be crippling especially when coupled with lack of tenants, and ongoing costs such as maintenance. Although, a lower deposit essentially means more leverage of other people money, there comes a point when you need to look at repayments, and ask your self a few serious questions.

3. OK So You Got Finance Approved

Just because you have finance approved, it doesn’t mean that you should go ahead with an investment if other numbers don’t add up. Many an investor has overpaid for a property because they found a great finance deal. Just because you can get a property with low cash outlay doesn’t mean that it’s a good buy. It is still very important to look for good value in the property, and examine other market trends. If you have overpaid for property, appreciation will be minimal or worse be non-existent.

4. Cash Flow Helps

At the end of the day cash flow is the king. If once all your mortgage costs and expenses are covered you still have extra cash flow coming in from a property, then it’s got to be a winner. Even if the value of the property doesn’t increase, you still end up gaining through positive cash flow.

By: Simon B Smith

About the Author:

Create a video blog