If you have the knowledge there are many ways you can get some money back from the seller when buying real estate. One of these ways is to get the seller to pay for the closing cost. The closing cost may not be a lot of money compared to the price of the property so it is a good thing to negotiate. If a seller is eager to sell a small thing like the closing cost will not let him or her leave the bargaining table.Another way you can get some money back from the seller when buying real estate is getting the seller to pay for the taxes for the rest of the year in which you are buying the property. Again this will not be a lot of money compared to the property which makes it a good thing to put on the bargaining table. One last way to get some money back from the seller when buying real estate is getting the seller to pay for the things that need to be repaired or replaced. This can be a lot or a little, it all depends on the shape the property is in. This is harder to get a seller to agree to than the first two, but it is not impossible to find a seller that will. If the property needs a lot of work it is a good idea to see if you can get the seller to pay for half or more of the repair cost.Always make sure that if you do get the seller to agree to give you back any money for any reason that you get it in writing. It is a good way to make sure everyone is on the same page. Getting money back when buying real estate is not an easy thing to ask for, but if you know what to ask for it can make the process a lot easier. These are some good ways that can help you save a lot of your hard earn money.
Real estate investing is still a great way to earn extra income. The past several years has brought about massive drops in home and investment property prices. This means you can find better deals that garner much greater monthly cash flow. The rents charged have not dropped nearly as much as property prices. For example in Las Vegas, NV property has dropped up to 60% in some areas while rents have dropped only 10-12%.I recently saw a 4 unit property listed for sale at $195,000 but in 2004 sold for $330,000. This is a massive drop in price and will make for a massive drop in monthly payment. The rents have not dropped nearly as much and this property still brings in nearly as much rent as in 2004.There is no evidence that real estate is not a great investment even after the housing meltdown. The advantages of owning real estate far outweigh the disadvantages and if you are serious about making money and improving your prospects for the future, you need to start learning the real estate business. You can start as a part-time investor and just get one property, get your feet wet and learn the details of managing property for profit. Once you try it you will realize that most renters are good people and are excellent tenants.Everyone has heard the horror stories from a disgruntled landlord who has left the business after years or weeks of headaches. Of course they all advise everyone to stay out of the rental real estate business. However, this is not the advice you want to take because most of it is just not true. Typically you will get good tenants if you treat them well and treat your property for what it is: It is someone’s home. Your rental property is your tenant’s family home. It must be treated with respect and care. Your tenants should always be treated with respect, care and dignity as well. If you treat your tenants well, in turn, they will do the same.Of course there will be issues with tenants if you are in the business long enough but most tenants want a nice place to live and a good landlord. It is so rare that you will find someone trying to get free ride or who refuses to pay rent if you provide them with a clean, well cared for home or unit.I have done this in more than one area of the country and have seen it first hand. It is a myth to say that tenants are going to always give you nightmares. I have had wonderful tenants over the years and many have been wonderful people.You likely will have to address some of your own misconceptions and fears if you are going to enter the real estate business but it is well worth it. It is well worth it because you can set yourself up for a fantastic future. It will be hard work but anything that is worth doing usually ends up being hard work. The rewards of investing in real estate are much greater than the drawbacks.
When buying Real Estate, it is important to take into consideration the additional costs of the transaction other than the purchase price itself. So many times I have buyer clients looking to purchase real estate in Toronto yet they forget about all the additional costs that go along with the purchase. Put aside some additional cash for the following one time expenses:1) Lawyer fees – Your lawyer will charge you for the closing fees and title insurance if you elect to purchase it.2) Adjustments – Depending on what is in the agreement of purchase and sale you may have to pay for property tax, hot water tank adjustments etc.3) Land Transfer Tax Fees- Buyers of real estate in Toronto must pay the Toronto Land transfer tax and the Ontario Land transfer tax (for purchases only). If you are a first time buyer, you will get a break on the tax.4) Moving expenses – Don’t forget about the costs of hiring movers and a moving truck, and if you are moving into a condo then you may have to pay a fee for booking the condo elevator.5) Services such as the TV, Phone, Internet must be set up.6) Home insurance Once the transaction has been completed, there are other expenses to consider as well.On top of your every day living expenses budget for the following:1) Monthly mortgage payments2) Annual property tax3) Monthly maintenance fees – monthly common expense plus reserve fund4) Utilities – Don’t forget about the monthly water, heat, hydro and central air bills. Some condos cover all or a portion of these.