The L Steps – 6 Steps of Real Estate Investing

Real estate investing in Miami real estate is now becoming popular again as there are many properties in foreclosure, short sale, bank reo's, and government foreclosures. With such an overwhelming inventory of homes available for sale a real estate investor must be able to determine which one to purchase. Investors must follow six steps in order to learn, understand and achieve Miami real estate investment success.

These are the six L steps to Miami real estate investing:

1. Location – Location, location, location is still the key of buying Miami real estate. Buying Miami real estate just because the price is low in a declining area is big mistake that should be avoided. Look for homes in an excellent location like, good schools, economic stable and growing neighborhoods, near shopping centers and malls, near bus stops and metro rails, near hospitals and restaurants. Sometimes it is better to pay a little more for a property in a good location than getting a bargain in a place where it is very hard to sell or rent the asset. Location is often overlooked in purchasing real estate as many investor think they can exceed a bad location if the price is low enough. Out of two homes that are exactly the same, the one in the best location will command a much higher sales price and rental income. Location is the number consideration when purchasing Miami South Florida real estate.

2. Long Term – Real estate investing is a long term proposition. Do not think you are going to be a millionaire over night. It takes years of hard work and dedication in order to succeed. Hold any property at least one year before selling it. Capital gain taxes will be greatly reduced. Consider renting the property for at two or three years. The rental income generated will help you to properly repair and renovate the property. Many investors purchased properties in the middle of real estate boom with no money down and no equity. These investors were thinking of flipping the houses fast and making a killing in the process. Many homes now in foreclosure are due to investors that were caught in the middle and now realize that real estate investing is very hard to time. Long term Miami real estate investing is the secret to a successful real estate career.

3. Lease Option – Never rent a property with a lease option to buy. Either sell or rent it straight out. A lease option is usually a disaster for both buyers and sellers. The tenant will demand a large discount of the rent to go towards the down payment and closing costs. The problem is that tenant will not buy the property at the end of the lease and the landlord / seller will have wasted a lot of money in rebates given to the tenant / buyer. Demand a 20% or 30% deposit from the tenant / buyer and a clause in the contract that if they default on the purchase they will lose the deposit. This technique will force the buyer / buyer to purchase the property or lose the deposit. The risk of losing the deposit will eliminate the tenant from taking advantage of the landlord by walking out of the contract after receiving a monthly rental discount.

4. Local – Buy real estate close to where you live. Do not buy real estate in another state or in another country. Keep real estate investing local. Buy in your own county and in your city. The more you know about the area where you are buying the better the decision will be. The investor should always be close to the investment property. The Miami real estate investor should inspect the property often to determine any repair, roof and other problems. The landlord must inspect the property every month when collecting the rent. Check for the number of tenants actually living in the property, check for damages and destruction of the property and overall condition of the place. The investor / landlord will not be able to inspect and determine the condition of the property if it is located far away. Keeping real estate local is an essential step in real estate investing.

5. Leverage – Most real estate books and seminars tell you to use other people's money when purchasing real estate. This technique is not the best and buyers should try to buy the property in cash if at all possible. Buying a house in cash will help you get a better deal and allow you to negotiate from a position of strength. A cash buyer will always have the upper hand in negotiating with banks, property owners, and other sellers. Cash buyers will not suffer and go into foreclosure if the market turns and they are unable to sell or rent the house right away. Like Dave Ramsey always says "cash is king and debt is dumb". Buying an investment property in cash is an excellent way to avoid Miami real estate investment errors.

6. Learn – Research the property and learn everything about it before you buy. A mistake in Miami real estate investing can be very costly. Usually you make your money when you buy not when you sell. Buying the property at the wrong price the wrong place and at the wrong time could be detrimental. One mistake could wipe you out and put you out of business before you start. Ask questions to the experts, real estate agents, appraisers, mortgage brokers, and other real estate investors. Learn, research, educate yourself in all aspects of real estate investing before you purchase the asset.

It is definitely a buyers market in Miami-Dade County. Miami real estate investors have more choices than ever before when it comes to real estate investing. Investors must follow the L steps, the 6 steps real estate investor guide to successful real estate investing in order to achieve their investment goals in the Miami real estate market.

All About Online Shopping

Identification

The process of online shopping is really easy. It allows people to shop for products and services from the comfort of their own home with the help of a computer and internet connection. A person can visit an online retailer and purchase an item with their credit card. The products or services are then delivered to the address that was provided. With a growth of 33% in 2005, online shopping is continuing to gain popularity all over the world.

Benefits

There are a number of benefits attached to online shopping. The most important advantage is that of convenience. Customers can buy whatever they want during breaks at work or while they are at home without going into crowded malls. Online shopping allows people to shop at any time of the day. One can also book mark a page and come back when they think that the time is right without feeling rushed.

Warning

Always make sure that you are shopping on websites that are legit. You can do so by looking up their names in the Better Business Bureau database. Be careful of phishing. Make sure that the website is secure by ensuring that the address starts with ‘https’. Only give out information about your credit card once you are sure that it is secure. Try and use a credit card as opposed to a debit card or checking account as it is easier to have the theft stopped as compared to the other two alternatives.

Considerations

Don’t get carried away with the cheap rates that you are getting online, as they may pad up process in the shipping. So, be careful and ensure that you double check the shipping rates and compare them with postal rates from UPS, Unites States Postal Service or FedEx. Also, make sure that you do not over pay your shipping charges and look for other details like cancellations, return policy etc. Make sure that you have the contact information of the online retailer in case you have any questions or want to track your shipment.

Types

Today, you can buy absolutely anything online. People buy groceries, food products, medicines and even herbal remedies. The most popularly bought products online are books. According to an online article by Nielsen in January 2008, 41 % of internet users bought books online. Clothing, DVDs, electronics, games and tickets are a few other things that are popularly bought through the online medium.

Why You Need Title Insurance

Protecting your Home Investment

A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Homeowner's insurance protects against loss from fire, theft, or wind damage. Flood insurance protects against rising water. And a unique coverage known as title insurance protects against hidden title hazards that may threaten your financial investment in your home.

Protecting Your Largest Single Investment

Title insurance is not as well understood as other types of home insurance, but it is just as important. You see, when purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property – the right to occupy and use the space. That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss. Title insurance protects against these types of title hazards.

Other types of insurance that protect your home focus on possible future events and charge an annual premium. On the other hand, title insurance protects against loss from hazards and defects that already exists in the title and is purchased with a one-time premium.

Two Kinds of Title Insurance Benefit You in Two Ways

There are two basic types of title insurance:

  • Lender or mortgagee protection,
  • Owner's coverage.

Most lenders require mortgagee title insurance as security for their investment in real estate, just as they may call for fire insurance and other types of coverage as investor protection. When title insurance is provided, lenders are willing to make mortgage money available in distant locales where they know little about the market.

Owner's title insurance lasts as long as you, the policyholder – or your heirs – has an interest in the insured property. This may even be after you have sold the property.

Depending on local practices and state law where the property is located, you may pay an additional premium for an owner's policy or you may pay a simultaneous issue charge – usually a smaller amount – for the separate lender coverage. You may even split settlement costs with the seller for the lender or owner's policy.

What does Your Premium Really Pay For?

An important part of title insurance is its emphasis on risk elimination before insuring. This gives you, as the policyholder, the best possible chance for avoiding title claim and loss.

Title insuring begins with a search of public land records affecting the real estate concerned. An examination is conducted by the title agent or attorney on behalf of its underwriter to determine whether the property is insurable. The examination of evidence from a search is intended to fully report all "material objections" to the title. Frequently, documents that do not clear transfer title are found in the "chain," or history that is assembled from the records in a search. Here are some examples of documents that can present concerns:

  • Deeds, wills and trusts that contain improper word or incorrect names;
  • Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes;
  • Easements that allow construction of a road or utility line;
  • Pending legal action against the property that could affect a purchaser; Egypt
  • Incorrect notary acknowledgments.

Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. However, even the most careful preventive work can not locate all hidden title hazards.

Hidden Title Hazards – Your Last Defense

In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:

  • A forged signature on the deed, which would mean no transfer of ownership to you;
  • An unknown heir of a previous owner who is claiming ownership of the property;
  • Instruments executed under an expired or a fabricated power of attorney; Egypt
  • Mistakes in the public records.

Title insurance offers financial protection against these and other covered title hazards. The title insurer will pay for defending against an attack on title as insured, and will either perfect the title or pay valid claims. All for a one-time charge at closing.

Your home is your most important investment. Before you go to closing, ask about your title insurance protection, and be sure to protect your home with an owner's title insurance policy.

A Worm Farm on a Budget

Have you wanted to set up a home worm farm, but been put off by the high cost of purchasing one of the neat “designer label” multi-tiered ” vermicomposting” kits, promoted by garden centers and mail order companies? Well, let’s cut through the crap! – ITS ACTUALLY NO SECRET !!! -You can easily make your own DIY three bin kit for a just a few dollars and your worms will be as happy as little pigs in the yellow stuff, with no big bad wolf in sight. Moreover, you do not need to be an expert handyman to achieve this!

  • Hardware stores, supermarkets and camping outlets sell tough, general purpose black (opaque) plastic storage containers for a very reasonable price. These are usually tapered so that they can be nested to facilitate stacking on the retailer’s shelves and come with a ” snap-fit” ce lid. For your worm farm, you will need three of these tapered containers (but only one lid). For a simple home worm farm I would advise going for 12 gallon (45 liter) containers. Typically, they will be about 15 inches deep (400mm). You can go smaller, if you want.
  • In the first storage container, drill a 3/8 inch (15mm hole), centrally placed, in the side of the bin, just above the base. Insert a inch inch (12mm) cheap plastic barrel or irrigation tap (with washers) into your hole and tighten fast with lock nuts – make sure you get a good seal – test by filling the container with tap water. This container is to be the lowest one in your stack and will retain the highly nutritional ” worm tea ” leachate, that will start dripping down from the composting bins above. Worm tea is a valuable liquid organic fertilizer, that can be diluted and used directly on your organic vegetables.

The two upper bins will actually hold the worms. They are to be identified and are prepared as follows: -

  • Drill a pattern of inch inch (6mm) holes across the entire base of each container for drainage and to allow drainage and the upward migration of the compost worms, these holes should be regularly spaced at approximately two inch (50mm) centers in either direction.
  • For aeration, drill two rows of inch inch (6mm) holes at two inch (50mm) centers, in a continuous band around each of the bins. This band of holes would be about four inches (100mm) below the top rim of the bin.
  • It is not essential to drill holes in the lid, which is closed tightly over the upper bin. As you should get enough air through the sides.
  • You first set up the lower (sump) bin on bricks or blocks, allowing enough space to tap off the fluid from beneath it. Choose a shady location for the worm farm (in a shed or garage, if you are subject to frosts).
  • The second and third bins are “nested” within each other and dropped into the sump bin. To maintain a working space for the worms, and for accumulation of compost, you need a few spacers or packers of about six to eight inches height, between the two upper bins and some smaller packers of about four inches in the lower (sump) bin . You can use wood blocks or sealed food jars for packers. The packers also prevent the tapered worm bins from jamming together.
  • To prevent “nasty bugs” from squeezing in between the bins, you should close ( caulk ) the small gap between them with strips of shade cloth, or mosquito netting.

Now you are ready to go into production. Spacevents us from giving fully detailed notes here for the fine points of operating the system, such as selecting and feeding your worms, eradicating pests and maintaining the worm farm etc – you can visit our website for this information. However, just make sure that you cover the following points: -

  • Set up your worms in the top bin with a good (damp) fibrous bedding (or even shredded newspaper) and after a few days you will be ready to start feeding in your kitchen scraps. Cover the food with more bedding material to discourage pests and keep the lid closed.
  • Make sure the worm farm is never allowed to dry out, by sprinkling water over the bedding periodically, if there is not already enough moisture coming from the food scraps.
  • When the top bin has been fully productive for a while, the worms will multiply and compost will be start accumulating from the worm castings. When the quantity of compost is meaningful, stop putting feed into this bin and swap over the upper two bins by putting bin No 2 to the top of the stack, with bin No 1 now in the middle. Set up this new top bin with clean bedding, a small amount of the old castings and immediately start feeding your kitchen scraps into it. The worms will naturally migrate upwards towards the new food source, leaving the lower bin with only a few stragglers and ready for the harvesting of your compost within about three weeks after the swap.
  • All you need to do is to keep repeating the process of alternating the top two bins on a regular basis, taking out the compost, whenever it accumulates, and tapping off the worm tea from time to time. Use both products in your garden and grow delicious fully organic vegetables and stunning roses. Sit back and enjoy the fruit of your labors – your worms are doing most of the work anyway!

To see a detailed diagram of this simple worm farm, as described, and some illustrative photos, you can visit our web site at http://www.working-worms.com/

Happy worming!