Real Estate News

Some thoughts on real estate as investment vehicle…

4-22-2015: Excellent US NEWS article on real estate investment = The Good, Bad and Ugly of Real Estate Investments

Some experts advise against holding any more real estate than 5% of your total investment portfolio.

Investors should own a home for about 10 years for fluctuations in prices and use at least an 8% annual return based on net profit on sale and rental net income by factoring vacancy and non-payment of rent too.

Investors will probably pay alot over the years not only the initial investment, but for maintenance, property insurance, and property taxes.

Research the local market and be prepared for wort cases – called over to the property by tenants or neighbors at odd times for emergency repairs or get charged by the property management company.

Sometimes it’s good to be close to the property since you can visit easier and if trouble happens, you can reach the property faster.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Hold your noses and close your windows – that cool, fresh, fall air will be smelling like burning wet leaves!

Some of the requirements are as follows:

Open burning is allowed October 1 – April 30 of each year. During this time, you may burn limited yard debris (leaves, pine straw, and small limbs no more than 2” in diameter from growth on your property). The following restrictions for burning also apply:

• Burning is allowed between the hours of 10:00 a.m. and one hour before sunset (no smoldering or hot coals remaining).
• No burning is allowed on windy days (10 mph or higher) or on days when the atmospheric conditions (cloudy, overcast, or raining) would cause the smoke to remain low to the ground.
• Burning must be attended by an adult who must be watching the fire at all times. Never leave a fire unattended.
• A water hose must be on hand that can reach the fire, and can be ready to use if needed.
• Fires must be at least 50 feet from all structures, including fences of combustible material, etc.
• Fires may not be started with petroleum-based products.

You may not burn refuse or other combustibles, such as garbage of any kind, construction material, plastic products, fiberglass, tree trunks, stumps, kudzu vines, or corn stalks. Any material that is moved from one location to a different property cannot be burned. Burning for recycling wires (to access metal) or tires (to access wheels) is not allowed. For information regarding alternative methods to dispose of yard waste, contact the Georgia Environmental Protection Division at 404-362-2537.

Please understand that even if you follow all of the guidelines for burning, you may be required to extinguish the fire if it adversely interferes with another’s enjoyment of life, use of property, or if someone with a health problem is affected.

NOTE: During the burning period, a fire official may prohibit burning at times when atmospheric conditions or local circumstances make burning hazardous.

Please visit http://fire.cobbcountyga.gov/marshal_burn.htm for more details.

In short, the Business Judgment Rule is defined by Georgia Case Law, that presumes a business decision by a company employee (who acts in good faith and exercises ordinary care) that fails to achieve its desired outcome is protected from a legal challenge by owners, employees, vendors, and other stakeholders. But actually, it’s only protected from a legal challenge if you document the acquisition and type of information, and prove its reliability and of the sources, and prove that it wasn’t simple negligence. Experts advise the decision maker to keep a log of what information is used to make the decision and meetings/discussions with the sources of the information.

I guess the 3 most important words to use the Business Judgment Rule in the decision maker’s defense are: Document – document – document!

Source of post: Atlanta Business Chronicle, September 5-11, 2014.

This is not a complete list by any means, and I will modify the list as time allows, but just want to share a few of the “potential” Seller considerations.

NUMBER$$$

• Listing price and range of acceptable net$
• Amount of closing cost$ to pay for the Buyer (if any)
• Payment for a home warranty for Buyer – $400+
• Payment toward the condominium or HOA fees to entice Buyers to buy
• Pay for or offer price reduction any other requests related to house before or after a home inspection – appliance, flooring, HVAC, etc.,. (Note: In the current mortgage environment, $ allowances for such improvements will not be allowed by the lenders.)

INSIDE THE HOME

• Properly stage the home – everything in its place and organized to show lots of space
• Pets – crate or remove them during showings
• Laundry-furniture-kitchen counter-bedding === keep all areas clean and neat upon short notice
• Painting or remodel projects that you can simply finish making inside look better
• Floors clean and shiny; walls clean; light bulbs work; etc,.

SELLER’S PROPERTY DISCLOSURE STATEMENT – GAR contract form (Not legally required unless it’s made a part of the Real Estate Contract.)

• What you want to leave in the house – what you are taking?
• Any major problems happen during your ownership that required repair (i.e., structure, ceilings, walls, floors, or damage requiring insurance report)?
• Be sure to briefly explain any YES answer

For example:

Plumbing Repair explanations: “Leak in joint of pipe in garage was repaired – No other plumbing repairs” or “Bathroom faucet leaked and we replaced faucet.”

OTHER THINGS

• Showing times or drop ins (with an agent) – usually from 9:00 am to 9:00 pm (Note: Worst thing to do is to require appointments and restrict times of Buyer availability but you can ask contact info of agent the Buyers are working with and call the agent to verify.)
• Home Inspection – within 7 to 12+ days of contract acceptance
• When do you want to close the sale?
• When do you want to move out? (usually within 2 days of closing.)
• Do you have any paperwork on newer systems/appliances?
• Do you have a list of your utility expenses?
• Do you have a property survey we can give Buyers as a copy?
• Do you have any other information to share with Buyer as to what makes this home special for them or their use?

Swimming pools can be fun -therapeutic – a safe, convenient place of tranquility/sources of release from the daily grind – exercise for your family, etc,…but they are not inexpensive to build, operate, or eliminated. In fact, many people say the two happiest days of their lives is like owning a boat: (1) first day you get a pool, and (2) the day you get rid of it by selling your home or covering it up!

In Atlanta, where the temperatures soar and humidity levels are high for 6+/-months of usable time, there are plenty. Several are even found at homes inside subdivisions with an existing pool facility within the Homeowner’s Association. But it has been my experience that as many or more people choose to fill them instead of maintaining them. Because this love/hate relationship for pools exists, there really is no additional value you can assign a pool at a house to the prospective home buyer. Even appraisers don’t necessarily give much of a boost to the home’s value when appraising the property.

Possible negative/cost factors to consider besides reminding yourself how much fun it was to maintain your family’s pool when you were old enough to help maintain it (ha-ha):

• Building a new in-ground pool can cost from $25,000-100,000.
• Pool covers cost $2,000-5,000 if replacement is needed.
• Opening and closing the pool for the seasons change will either take $ for a pool company to manage or your time and effort.
• Maintaining the salt or chemical levels costs hundreds per season. More so with chemicals, but the installation cost and eventual replacement of the diodes for saltwater pools runs high.
• Daily inspection and maintenance of the pool including any chemical testing, retrieving the leaves and other items found in the pool, emptying the skimmer baskets, subbing the tiles, or vacuuming the pool.
• Pool equipment should last many years before replacing, but should be monitored daily or a few times per week to ensure proper operation including back-washing the filters once in a while.
• Budgeting for the maintenance or replacement of the pool equipment (filter, pump, heater, etc,.) and any of the PVC water lines that crack during freezes in the winter.
• Paying a few $100s in extra homeowner’s insurance.
• Building or maintaining a fence around the pool required to get insurance may take thou$and$.
• Pool accessories like skimmer poles & paddle; skimmer baskets; plastic skimmer caps; pool toys; vacuum hose & wand; plugs for vacuum holes; drain caps; handles for entry and egress; etc,.
• Extra daily water (pools lose water during evaporation or leaks) and electricity costs to run the equipment.
• Repairs of cracks in wall or flooring inside a pool, or on the exterior of a wall surround the waterfall to the pool if one exists.
• If major repairs require draining a pool, cost of refilling them with water could cost hundred$ (and no, fire departments/communities won’t necessarily refill your pool at no charge).
• Friends, neighbors, other family (including their children) come over expecting to use it…and stay!

Note: Even saltwater pools require daily maintenance of skimming and cleaning skimmer baskets. And sometimes salt will corrode the diodes and they’ll need replacement.

Bottom line: If you’re willing to take on an asset to maintain but get enjoyment from using it, then it will depend on your level of enjoyment v. the negatives. And there is no formula to determine that – just a SWAG!

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

I will update this post from time to time with information and news about these three credit reporting agencies.

Suffice it to say, these three credit reporting companies virtually hold your financial, employment, and personal life in their hands.

Just a note: Fair Issac (producer of FICO scores) agreed to modify severe hit on FICO scores if you (a) paid off a debt balance/settled with a collection agency, or (b) had unpaid medical bills that are with a collection agency. The person’s revised FICO score shouldn’t be reduced as much in the future as they have in the past. This should mean relatively higher scores and more credit issued.

Equifax, TransUnion and Experian are being sued by the Attorney General of Mississippi, New York, Ohio, and 31 other states including the Consumer Financial Protection Bureau for errors on individual report and delays in correcting those errors that impact obtaining credit and financing. MDJ, 6-17-2014, 5B

The Fair Credit Reporting Act requires the three nationwide consumer credit report companies, Equifax, Experian, and TransUnion, to provide you with a free copy of your credit report and FICO scores upon request once a year. You can obtain your credit report from https://www.annualcreditreport.com/.

Clark Howard’s thoughts on Credit Freeze and Thaw – the best way to protect your credit status.

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Are you ready to move yet? Maybe you will after McCullum Airport starts round trip international flights with larger Boeing 737s…or when the Braves move and traffic comes to a standstill..

But before that….This is an estimated $834 Million project…for now…but don’t think it will cost that little…And it will be a tool lane that ill never end…

Like any project, the costs will escalate. Not only will there be two reversible toll lanes to ease traffic on I-75, but there will also be 7 additional on/off ramps located in places along I-75 & I-575 that don’t have exiting access ramps. Lots of changes ahead.

There’s a force bigger than all of us pushing for mass transit – and they keep pumping more and more people into Cobb, more justification to take it downhill and install mass transit.

Source for blog post: Opinion of MDJ, 8-13-14, 4A.

One-third of adult homeless men and nearly one-quarter of all homeless adults have served in the armed forces. About half of all homeless veterans suffer from mental illness and more than two-thirds suffer from alcohol or drug abuse problems. Nearly 40 percent have both psychiatric and substance abuse disorders.

Homeless Veterans Programs are located at the following link:

http://www.military.com/benefits/veteran-benefits/homeless-veterans-programs.html

I just wonder how many of the veterans programs listed in the link above have been investigated and reviewed by the Office of Inspector General?

I also wonder how effective they are at solving the issues of Veteran Homelessness?

Based on this 8-26-2014 HUD Press Release, The U.S. Department of Housing and Urban Development (HUD), U.S. Department of Veterans Affairs (VA), and U.S. Interagency Council on Homelessness (USICH) today released a new national estimate of veteran homelessness in the United States. Data collected during the annual Point-in-Time Count conducted in January 2014 shows there were 49,933 homeless veterans in America, a decline of 33% (or 24,837 people) since 2010. This includes a nearly 40 percent drop in the number of veterans sleeping on the street. Also, the Federal government has provided significant new resources to help communities pursue the goal of ending homelessness among veterans. I just wonder how effective those funds are or if they are wasted and miss the target?

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.

Summary of the Unsheltered No More program Initiative

I wonder how this program is performing?

More than 6,000 homeless people live in metro Atlanta, according to a point-in-time count in January. Atlanta’s “Unsheltered No More” initiative compliments a national movement toward a “housing first” approach which is focused on getting the homeless off the streets, and then providing them with any services and other help they may need.

Note: Atlanta housed more homeless veterans than any other city participating in the nationwide challenge while also speeding up placement process by one-third.

Atlanta initiative finds hundreds of homes for homeless

References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.