Florida Keys Articles

The Basics Of Home Improvements added 5-8-2012

Our homes are our sanctuaries from the outside world. It should be a place where you feel happy, comfortable and at peace from the time you walk in the door. Because of this, we should always be looking for ways to improve the home to make it into the place where we want to spend the rest of our days. Get some ideas of changes you can make to your home to make it the place you most want to be each day.

When you walk into a room, you should not be thinking anything negative about the room. If you notice something that you do not like about it, change it. If you dislike how dark it is in the room, put a coat of lighter colored paint on the wall or bring in some up lighting to use behind your furniture. Hanging mirrors around the room could also help to reflect some of the natural light that comes into the room.

If you are the type of person that loves the outdoors, bring a bit of the outdoors inside. Get some plants, indoor trees or some artwork that brings the feel of the outdoors in. If you live in an area where the landscaping outside your house is beautiful, consider installing a big picture or bay window in a couple rooms of the house. Also, think about getting some small water fountains or a wall fountain. They can bring a level of tranquility to the home that no other feature could.

Your bedroom should be more than somewhere that you go to sleep each night. It should be a relaxing escape from the rest of the world. Pick colors that make you feel happy and calm. Use wall scones and dimmers on your light switches so you can adjust the lighting to meet the mood you are in.

Your kitchen should be made to fit your personal needs. If you cannot reach the things that you need to make your meals, you are never going to feel completely comfortable in the room. Make any changes to bring the items lower to where you can reach them. If you are not happy with the amount of counter space in your kitchen, you need to do what you can to expand the workspace you have. This will make cooking less stressful because you will have a place for everything.

If you are lacking inspiration about what you can do in your home, seek help from an interior designer. It may cost you a bit of money, but this is your home you are working to improve. Every penny you invest in it is money well spent.

Every home improvement project is not going to require you to get out a hammer and nails. It could be just changing the layout of the furniture in the room. Home improvement is just improving the home to make it the sanctuary you need it to be. Continue working until you can walk through every room in your house and not find something you do not like.

Deck Building Frustrations Reduced With These Tips added 4-11-2012

It does not take a master craftsman to build a beautiful deck for a the home. It does, however, require a great deal of time, energy and sometimes a lot of money. The tips included in this article will help you reduce the level of stress you experience as you begin and work through the process of adding a deck to your home.

As you are considering the materials that you are going to use on your deck, research both pressure treated lumber and the newer composite decking materials that are available these days. Remember that the pressure treated lumber is going to require much more maintenance than composite decking and will likely not last as many years. Each material has its benefits, so be sure to do your research before making any decision.

Prior to purchasing your materials, measure the area several times to be sure that your measurements are accurate. If you have to get your supplies at different times, the wood or composite decking materials may not match in color as closely as you would like. It will also add to the time of the completion of the project if you have to make multiple trips to the lumber yard to get the supplies you did not get the first time around.

Keep the design of your deck and railings as simple as possible. The more intricate the design, the more difficult it will be to complete the project. If you have to stop and think about the measurements and designs of the intricate details you have incorporated into the plan of your new deck, the length of time it takes to complete the project will increase drastically.

Friends and family members will likely be willing to assist you in completing a project of this magnitude. It will make the project much easier to finish with some helpful hands and more fun to do with friends and family helping. Make sure to offer the ones who offer their help a nice meal, and plenty of drinks as as a thank you.

Different localities follow different building codes. Inquire about the possible permits that you might need before you begin construction. Also learn about the building codes for your area. Many places there are codes that must be followed as to how far the railing rungs are spaced, the angles of the steps and many more aspects of the construction of the deck. Your local courthouse will be able to supply you with the information you need before beginning your build.

Many inexperienced builders will attempt to construct their deck with nails when they should be using screws. Be sure to invest in enough galvanized screws to get the job done right. Do not pinch pennies when it comes to items used to hold your deck together.

The addition of a deck to your home is a wonderful way to add an outdoor living space. Follow the advice given here, and you will be enjoying your deck before you know it!

How To Make A Profitable Commercial Real Estate Investmentadded 3-14-2012

If you are just starting out in commercial real estate investing, you will surely find this collections of tips helpful. This article is a perfect place to learn some tips to help you build yourself from novice to master of the commercial real estate game.

Can You Afford to Buy a House? What to Take into account-added 2-27-2012

There is a lot to take into consideration when buying a residence over and above exactly where, what number of bedrooms or exactly what design and style. Money issues can pop-up when you're least expecting it, so being aware of what you'll end up confronting before you even look at your first house is a major method to safeguard yourself along the way. This article outlines most of the financial situations that could come about once you decide on the property to consider.

Just how much you will need to pay initially depends on were you reside and the financial institution you are going to select, but most will require between 15-20%. A lot of banks may also not allow you to use a second loan, even from a member of the family, to pay for that amount. Keep in mind that credit cards are considered a borrowing arrangement, therefore they can't be utilized either.

How much interest you have to pay starts with a base level set via the market place and then may go up a certain per cent according to your own personal credit score. Anyone with below-average credit is better off leasing, saving up a downpayment and bettering their credit rating over time so they are able get a lower rate.

The amount of interest you pay will depend on which type of mortgage loan you receive, whether it's a mortgage or collaterallized credit line, and whether or not you choose a variable rate or fixed. A fixed rate is typically set to stay the same for a year, after which the price might go down or up based on the actual market and your credit score. A variable rate changes depending on the market rate, so it can go up and down at any time. One bonus which comes from using a variable rate line of credit is that you may pay off just as much as you choose at any given time, while a fixed rate mortgage will only let you pay the regular monthly amount (which is interest as well as a little bit of principle), although occasionally they permit a one-time annual principle payment of a few thousand dollars.

Use These Tips To Fix Your Credit added 1-24-2012

It is easy to lower your credit, whether it be with shopping sprees or having too many credit cards. Luckily, there are some things you can do to make things better. Here are just a few of the ways you can do that.

Look at your credit report to see if you have any missed payments or outstanding debt. Ensure that all information is accurate, then begin to address discrepancies and problematic accounts. Pay down the balance on your credit card or account with the highest interest rate first and then work towards the subsequent ones.

Create a plan to begin paying your debt down. Your current credit score is depressed by existing debts, which are also a financial and psychological burden to you. See what bills you can lower or even pay off entirely to relieve the burden on your credit score. If you are debt free, it will increase your credit score.

When looking to improve your credit, avoid companies claiming that they can remove negative information if the debt is true. Negative entries on your record stick around for a term of seven years at a minimum, even if you take care of the debts involved. Incorrect information may be erased though.

To protect yourself from credit card fraud, it is essential that you carefully review each monthly statement from your credit card companies. Go through line by line for accuracy, and to prevent getting charged for an item or service you did not actually get. You are the person responsible for checking that there are no errors.

With some instruction and some hard work you can help your credit get back where it needs to be, so don't be fooled by how hard it may seem. Apply the information you learned within this article to help you recover your credit score.

Reap The Rewards Of Well-Managed Personal Finances-added 12-12-11

Do you finally want to take control of your money? Being financially responsible is an important life skill. The article below is going to get you started on being a financially independent person.

Don't fall for moneymaking scams that sound too good to be true. Don't waste your money on a program consisting of nothing but empty promises. Spend some time learning, but remember that the most important thing is to use that knowledge productively.

Make sure you stay on top of your credit score. Retaining a higher rating ensures lower interest rates and credit cards. A low credit score can hamper your chance to rent a house and it will be harder for you to get a cell-phone plan and other utility services. Use your credit proficiently to protect your credit score.

If your money is gone once your bills are paid, you may want to find a way to cut back on certain novelties. For instance, you may not be able to handle not going out to eat dinner at all for long. By eating out half as many times in a month as you normally would, you will save money while still getting to go out.

Save a ton of money while traveling abroad by avoiding the touristy areas and opt for local restaurants and cafes. Any restaurants in a tourist area, as well as the hotel, will be vastly overpriced so eat at the same place as the locals. Food that is higher in quality and lower in price can always be found.

You need to know what is going on with your credit report. You have the ability to check into your credit report free of charge. It's good practice to review your credit report twice a year. When you review it, check for charges that you aren't aware of or any other information that does not seem correct and look into it immediately.

Some people believe that by not doing maintenance on their homes and vehicles they are saving money. Good maintenance can help you prevent costly expenses. By taking care of the things that belong to you will save more money as time passes.

As made obvious, your financial stability is extremely important. If you apply the information from these tips, you can improve your current financial situation. Not only will you finally be able to get your finances under control, you can reach your goals and make efficient use of your money.

Advantages of Getting Home Warranty Insurance-added 11-21-11

Home buyers and sellers can greatly benefit from getting home warranty insurance. This added protection has many redeeming values and makes either buying or selling a bit more worry-free.

What is Home Warranty Insurance and What does it Cover?

Simply put, home warranty insurance is a policy that covers what home owner’s insurance does not. Think of a home warranty insurance policy like an automobile extended warranty. While car insurance generally covers the cost of property damage and medical bills, it won’t pay to fix the alternator. Or the starter. It will not pay to have the fuel pump replaced. Nor will it cover the cost of replacing the timing belt. But, if you purchase an extended warranty for your car, all those repairs are covered.

Home warranty insurance is much the same thing. Say your home is damaged by a natural disaster. Your home owner’s insurance will cover the repair expenses. But if a major appliance breaks down, your home owner’s insurance won’t be of any benefit. A home warranty insurance covers the cost of major appliances and fixtures. Including but not limited to: air conditioning and heating, plumbing systems, water heater, cooking range, microwave oven, refrigerator, dishwasher, electrical systems, ceiling fans and garbage disposal.

What Advantages are there to Home Warranty Insurance?

Sellers that purchase a home warrant insurance policy put potential buyers’ minds at ease. A home warranty insurance policy allows a home buyer to move in with the same peace of mind a renter has--some else will pick up the tab when something goes wrong.

Are There Other Benefits to Home Warranty Insurance?

There are other benefits to home warranty insurance. Some of which, you might not have considered. For a seller, this includes:
• Avoiding possible legal costs over disputes. When you sell a home, there are certain warranties attached and the responsibility to disclose facts about the home.
• Selling the home more quickly and for more money. Properties with home warranty insurance statistically sell in less time and for a higher price than properties without home warranty insurance.
Buyers likewise benefit from home warranty insurance:
• Protection of cash flow. After a buyer purchases a property and takes possession, everything inside the home is his. With home warranty insurance, buyer’s won’t have to foot the bill for replacing major items.
• Provides access to qualified technicians. Not only will home warranty insurance cover the cost of replacing major items, a buyer will have them professionally installed.

In short, home warranty insurance is a win-win for buyers and sellers.

ADVANTAGES OF USING AN EXPERIENCED AGENT TO SELL YOUR HOME added 10-25-11

In any real estate market, you need an experienced real estate agent to sell your home. Regardless of “buyers” or “sellers” market conditions, a proven track record will best serve your needs. Homeowners wanting to sell in a down market can find success where success has been demonstrated. With the right real estate agent listing your home, you’ll be privy to several advantages.

Proven Success

Closings are proof-positive of a listing agent’s ability to best describe a property. Highlighting the best features of your home attracts not only buyers’ agents but attract asking price offers. Hiring a listing agents without such a career record can cost you needless months of waiting for a valid offer.

Command of the Marketing Process

Experienced real estate agents understand the marketing process. Your home will be featured where it gets the most notice. A well adept listing agent will know which digital and paper publications are the most beneficial. Proven agents know how to use the Internet to their client’s advantage. Moreover, a professional agent will bring more people to open houses.

Aggressive Representation

Your decision to sell your home in any market can be a stressful experience. But an experienced real estate agent will know when to advise you to accept an offer and when to reject one. A good agent won’t just look at the offer, but will evaluate the true qualifications of the buyer. Good agents know how to work circumstances to a seller’s advantage.

Network Connections

Inexperienced real estate agents won’t have the strong industry connections necessary to generate a buzz about your property. Your listing will sell faster and for more money if your agent is already “plugged-in” to the circle of local market professionals.

Top Ranking Websites

The Internet has changed every facet of life, including the real estate market. Buyers can tour your home from another county or country. But they’ll only find your listing through top ranking search results. An experienced real estate agent with an attractive, informative website will provide a more diverse dissemination of your listing.

If you are serious about selling your home in a down market for the best price, you need an experienced real estate agent to list your home and represent your interests. An agent that knows the market through good and bad as well as the other real estate professionals, will help you achieve the results you are looking for.

For expert help regarding Key Largo Real Estate conatct Sal Livoti

Tips and Tricks of Real Estate Investing added 9-26-11

Numerous people have made lot’s of money in real estate through investing. But this venture is only for those who have a complete knowledge about how investing in real estate works and how return on investment can be made. People who have real expertise in this field are able to take this on and generally be successful. So, new entrants who wish to engage in real estate investment need to learn specific professional skills.

• Investing in the world of real estate involves lots of hard work especially at the outset. It is therefore necessary for people, to be really serious about it and their approach.

• Individuals who intend to invest in real estate must typically have a fair amount of working capital and credit. There are plenty of finance firms from whom loans can be taken but it is also necessary to have enough money or funds to back them up when surprises happen.

• It is necessary to do complete market research about a specific property in which you wish to invest.

• More importantly, it is necessary to have information about legal procedures where money is to be invested.

• It is crucial to possess strong negotiation skills and asset management techniques. This is essential to persuade property owners to sell their properties to you at a reasonable price in order to provide adequate returns on investment or ROI.

• A Highly professional approach towards the work is very necessary. Access to skilled work personnel, assistants, legal minds etc, is needed in case any issues come up.

• A professional property inspector, is necessary in finding out about any issues that need to be cleared up prior to signing a contract.

Investing in real estate can be a great endeavor,. In order to invest safely, investors can look at the lucrative realty options of foreclosures or fixer-uppers which can also supply real benefits.

For expert help regarding Key Largo Real Estate conatct Sal Livoti

Buying and Closing on a home-what are the costs involved? added 6-20-11

Settlement costs tend to be the very last concerns that many of us consider when they're in the act of procuring their very own perfect home. Closing could be the wonderful time when you're getting to acquire the property nevertheless the expenses relevant to this could be very surprising.

Whenever you purchase a property or home for instance a residence or even a condominium, you're going by means of a thing referred to as an escrow. During this time period, you and also the owner workout concerns that relate to closing the home and property. Closing day will be the last day that your escrow exists and this also is the place where you'll pay the actual settlement costs.

There are numerous forms of this. Some are very costly whilst the balances are generally a little less expensive. A single kind will be the escrow charge.

Your escrow representative is yet another individual who works jointly with the owner and also the purchaser to be able to complete the operation of switching the home and property. Because the individual is helping the actual people involved, she or he charge you a cost for any products and services delivered.

Depending on the area and also on the actual representative employed, the actual costs could be from a couple hundred to a 1000 dollars or maybe more. Determine what service fees your escrow representative will bill you before employing anyone.

Additionally, there are expenses connected for the home finance loan. The largest expenses, which have to do with mortgage loans, are referred to as 'points'. They are charges, which you shell out or maybe position into your mortgage loan to enable you to possibly be allowed to receive the funds. Generally one point is one percent of the loan amount borrowed. In the event you be lent $200,000, just one percentage point is actually $2,000. Individuals that have good credit standing can potentially acquire loans which require virtually no points repayments.

Closing time can certainly be a truly joyful event in a property purchaser's life particularly when this is actually the first-time she or he is purchasing the property. We will help you Discover all these expenses so that you'll really know what to expect.

First-time Customers Mortgage Application Guidelines added 5-25-11

When you have an aspiration about proudly owning your own house and applying for home financing then you might be a bit nervous at the present moment. While having your own property will be the American dream the high prices involved can be mind-boggling. Furthermore, most financiers may well be more occupied with generating a return than with helping you locate a house that will fit your income. Below are steps you can take to properly make an application for your first mortgage loan.

Obtaining a mortgage used to be straightforward. People would compare the costs and interest rates on houses they wanted, and when they found a financial institution they were comfortable with, they'd make a hefty down payment after which move in. Today important things have changed, and going over the quantity of possibilities can be extremely traumatic. One thing you might want to do before shopping for a residence is to educate yourself.

First Mortgage loan Application form Actions

The first thing you really need to do is take a look at current income. Simply how much do you make each year? How secure is your own job? Don't forget, if you attempt finding a mortgage the standard way, it could take 15 to three decades to pay it off, and if you get in back of on your obligations, you could lose your home and have your credit ruined. If you can't find the money for a home, it's best not to move into one unless you can. This will prevent you from agreeing to debt you can't manage to pay for.

How Much Could You Give?

If you think that you can afford a mortgage the next matter you should choose is how much could suit your budget. Lenders have a tendency to give you mortgages which are more than you can afford, and this is essential to don't forget. In addition to the cost of the home loan itself, you will have to pay taxes, insurance and other expenses in addition. These costs has to be included in your monthly expenses.

Submit an application Directly Or By Way Of A Brokerage service?

Once you start hunting for a mortgage loan you may confront two types of loan merchants; mortgage brokers and direct loan providers. The direct lenders are the those who have got the income to lend you. It seems in the long run the individual's who decide if you will be approved for a home. The mortgage loan officer acts as a intermediary, venturing out and finding direct lenders who can provde the lowest price.

Get The Paperwork In Order

Once you've found mortgage finance by way of a direct loan service or real estate agent the next step is to submit an application. There are numerous of items you have to have to submit the application form and it'll help when you've got some supporting paperwork. You will need to provide details about your wages, amount of work, as well as your assets. They will want to know what other loans or store cards you might have.

Once these facts has been provided, the financial institution will look for your credit reports. In addition, they're going to need to see your bank statements and check slips from a job. You might also must demonstrate to them tax information and data about your insurance. Should your credit is good, an appraiser will be hired to make certain the home is evaluated at the loan amount that will be presented to you.

Foreclosed Homes added 4-29-11

There are now more foreclosed homes on the market than in previous years due to the effects of the global economic crisis. These properties can seem like a real bargain and often allow people to move to neighborhoods that were once too expensive or purchase a house much larger than they could afford in the recent past. Sounds great, but before you sign any paperwork or hire your moving company, there are a few issues you need to explore. Otherwise you may be buying more than you bargained for!

Firstly, remember the circumstances that put this house on the market. The previous owners could not afford their loan and therefore probably did not put time or money into the maintenance of the property. Always ask the realtor for any known problem areas, as many houses are sold on an "as is" basis. This means that whatever the state the property is in when you buy it, it is now your responsibility. There are no legal comebacks should you discover any issues that were not disclosed or did not appear as significant as you come to realize they are in actuality. So you need to investigate thoroughly.

If the previous owners tried to sell the property themselves before eviction, ensure you check for any recent patches of decoration. A newly painted area of wall, for example, can hide an emerging damp problem. Mold is one of the major problems that foreclosed homes suffer because they do are not heated or air-conditioned once empty. As well as having significant financial implications because you will need to replace any infected drywall, there are many medical concerns over its effects. Some problems, such as a leaky tap, will not be a danger to your health if you moved into the property and fixed them afterwards, but you may be endangering your family`s health if you move into a mold infested property. Be sure to take expert advice on this matter to safeguard your money and your wellbeing.

Heating and ventilation systems are commonly neglected by previous tenants because of the costs associated with their upkeep. Investigate how old the systems are as you may need to budget for their full replacement. As foreclosed homes are sold for a lower price you may find this is acceptable and it is not necessarily a deal-breaker. Always ask for money off the asking price if you do find this to be the case though; often times the bank will say no, but if they want to sell the house quickly so may just agree. It is worth a shot for sure, if you don`t ask you don`t get!

Other issues that you may come across include vandalism by previous tenants, who often blame the banks for their bad luck and rip out items and generally create mess. If the house has been empty for a while there may be other vandals or squatters - of the human or animal variety! Nature loves empty, quiet spaces and you may find the house has bats, foxes, rats, snakes or other wild species, depending on your location. A call to an animal removal firm will be in order unless you feel able to do this yourself! After all your investigations, move in and enjoy your new home. Congratulations!  

Fishing the Florida Keys-entered 3-28-11

There is probably no other fishing area in the country that offers such a variety of fishing than the Florida Keys. There are numerous area to fish: The reef fishing, deep water/off shore fishing, bay fishing, flats fishing and what I would term, “wilderness fishing” in the ten thousand Island chain, north of the Keys and South of the Florida Peninsula. Of course, you can also add spear fishing and lobstering (in season via SCUBA or snorkel). For the most part, most of the fishing you’ll find In the Keys is not dependent upon seasons, although flats fishing is mostly productive during the winter months.

• Reef Fishing can be easily undertaken and enjoyed by a novice. There are numerous, very tasty fish such as grouper or yellow tail. Often you can take party boats or charters.
• Deep sea fishing almost always occurs with a charter operation for the tourist. There are numerous and larger game fish such as dolphin, blue marlin, swordfish, sailfish, kingfish, dolphin, wahoo, tuna, barracuda, amberjack and shark
• Flats fishing is almost purely done for sport and the three types of fish one normally might catch are: bone fish, tarpon and red fish. These are true game fish and the fight to catch them is what it’s all about. Flats fishing almost always requires a guide with the appropriate boat and equipment.
• Fishing in the 10,000 Island chain would normally require a guide with the appropriate radio, boat and expert knowledge of the area. It is easy to get lost and ultimately, dangerous. There are a variety of fish and your access point from the Keys would be in the Key Largo area.
• Spear fishing can be done on any reef that is not in protected waters. This will be mostly in the lower and Middle Keys. There is a variety of fish to spear: hogfish, grouper, snapper and jacks
• Lobstering is subject to the state season and can be done almost anywhere during the season, In fact, in many of the bay areas on the northern sides of the Keys, lobsters can be found and taken. Where appropriate gloves. While Florida lobster do not bite, the spines on their shells can be treacherous.

Most of the time if you’re on vacation in the Keys, you’re not likely to have your own boat. In this case, whatever type of fishing you choose, will not require a license because the party boat or boat charter’s license will cover any passengers. In the event that you wish to rent a boat or have towed your own boat to the Keys, then you must definitely purchase a fishing license. If you’re not a Florida resident, a temporary of vacation fishing license can be obtained at any bait and tackle store. If you try spear fishing, you will still need a license. If you do lobstering, then a special lobster license is required on top of the regular fishing license. Word of caution: never fish without a license, the fines are stiff and the waters are patrolled! Other than the foregoing precautions, it is easy to have a safe, exciting and fun fishing vacation in the Keys.

entered 1-19-2011

How to Set Up a Vacation Home as a Rental

One of the best real estate deals nowadays is to own rental property. Is that really possible? Yes, however, it must be a certain type of property. The property should be a vacation property able to support short term

rentals throughout the year. In order to be effective at turning a second home into a vacation home, there are a series of considerations and steps that you will need to be aware of and undertake. These will be described in more detail below.

Legal Considerations
Most of what is stated below will deal with Florida and local laws. However, most vacation homes in other states will have similar rules that are applicable. The author’s previous experience has been with short term rentals, for the most part.

Florida basically permits an individual or corporation to rent a dwelling, whether a condominium or home. In some cases, the local county where the property is located, will insist on an inspection of the property, however for the most part, this isn’t the case. In the case of condominiums, often the condo association will handle some of those issues.

The major interest the state and county has is whether or not the owner of the property is collecting and paying sales tax on the rentals and remitting it on a regular basis. One other consideration: before trying to rent your property out, make sure that the local ordinances support short term rentals. One further consideration is that it might be advisable to set the property up as a corporation for both tax and legal protections. Consult an accountant or attorney for advice in this regard.

Sales Tax
Sales tax on short term rentals are applicable to hotel rooms, rental homes and condominiums for stays of less than 180 days. With declining local tax revenues throughout the country, states like Florida, are now more vigilant in their efforts to collect sales occupancy taxes. In Florida, sales taxes on short term stays are especially important because the “occupancy” sales tax is typically double the regular sales tax rate.

For instance, if a county has a sales tax rate of 6% or so, one expects that the occupancy sales tax would be approximately 12%. Obviously on a week long stay with rentals of $900 or so, the sales tax collected for the state would be approximately $90. This will add up over the course of a year and is an extremely attractive source of revenue for the state. Therefore, a prospective owner must collect and pay the taxes or face strong legal action by the state.

Licensing – Any type of business activity must be licensed in the county where the business activity occurs. This is an occupational license. The fee for one may be anywhere from $75 and up. Sometimes in the case of a condominium, the condo association’s license is all that is required. Second, you may have to apply for a state license for your rental property. This will of course, entail another fee. This is renewable every year. In certain case, the state may insist upon an inspection of the property before granting a license.

Rental contracts – In line with the above, it’s important to have a well written, short term rental contract that protects you as the property owner. It is worth one’s time, expense and avoidance of future problems to have an attorney craft such a document

Safety Considerations - Most of the safety precaution are common sense, but it’s important that the property conform to the letter of the law. Additionally, there are some safety considerations that will be applicable. A short term rental home must have a fire extinguisher and a working dead bolt lock for all entry doors. Typically, the home must also have a fire alarm and an emergency light that automatically illuminates, if power is lost. The home must be easily accessible or easy to exit in cases of an emergency. If the home is a condominium on an upper floor and there is a balcony attached to the property, there must also be a restraining fence to prevent someone from accidentally falling.

Billing/Payment – Renting out a vacation property is a bit different from most other types of rental arrangements and business activities.
• It is such a short term transaction that it is important for the owner to obtain all payments well in advance of the rental period. If someone decides to rent your property and fails to pay in a timely manner and then cancels right before they were due to arrive, you’ll not usually be able to replace the rental.

• If they pay by check and the check doesn’t clear and the renter has already left, you might have a difficult time forcing him to make good on the rental and is certainly not worth the hassle. Therefore, insist on payment either by check (long in advance of the rental) or Paypal. Even funds transfer is open to abuse. Although in some cases, if the renter is arriving from another country, you may not have a choice.

Insurance – It is always vital to carry good insurance to protect against damage, weather disasters and liability in the case of accident.

Rental Season Profitability - In most case, if a vacation rental can accommodate virtually all seasons, such as the Keys, Tampa Bay area or South Florida, the total yearly rentals generated will be significantly greater on average, than properties that may only be rentable within a single season, such as a ski area or more northern lake properties. Typically, properties that have a year round rental attraction can usually show a profit within the first few years of ownership. This may be a major consideration when you are planning to purchase such a property.

Rentals Policy – When you are setting up a rental property, you will need to decide if you are interested in longer term seasonal versus shorter term vacation rentals. Most that wish to rent their property should avoid the spring break situation, for obvious reasons. Longer term rentals, one to three months, tend to be less profitable because rents will always be lower than a short term weekly rental. Also, short term renters usually spend minimal time at a property, while longer term renters will normally consider your second home to be their second home when they rent. The advantage is that because weekly renters are spending more time outside there will almost always be less wear and tear on the inside of your property.

Furniture, Equipment & Flooring – In order to make a vacation property attractive, the furniture should be of a reasonably high quality to accommodate years of rental abuse. In the case of sofas, the material should be treated with a stain resistance compound. Further, the appliances should be relatively new and modern and not prone to break down or malfunction. In most cases, avoid whenever possible, carpeting. It is a magnet for dirt and stains. Instead, install a good ceramic or porcelain tile which is worth the expense to avoid future headaches. Wood floors are attractive, but expensive and will require more maintenance.

Maintenance and Repairs – Typically, the short term renter pays for the exit cleaning. Therefore, it will be of paramount importance to locate cleaning people to come in and change the linens and perform the basic cleaning after guests have departed. In line with the above, a potential vacation home owner will need to have a working relationship with local maintenance people that can unblock a sink, repair damage or fix any appliances, when necessary.

entered 12/23/2010

Evaluating Real Estate Investments Like a Pro: Present Value

When you consider that there are many real estate opportunities where you think you could make a killing, how can you really be sure that one investment is better than another? Many would-be investors jump into real estate without a good way of determining whether a particular piece of property, a single family home, resort condo or a multi family dwelling is really and truly a good investment. The end result is often disappointing. Maybe you should have bought investment B instead of investment A. And so it goes…What is the best way of evaluating real estate? The following approach is the way large companies utilize a very important, yet relatively simple evaluation tool for comparing competing investments.

A Couple Fundamentals, First
Obviously, if you are a real estate investor, you probably have decided on a minimum rate of return or minimum amount of money that you would expect yearly on a real estate investment. Of course, there are some investments that you can immediately jump into without doing very much evaluation. Suppose you can snap up a home that is selling for 60% less than its current value and you’re very sure that without upfront repair/refurbishment expenditures, you can immediately sell it, realizing an attractive profit. The answer is obvious upfront. Most times, these opportunities are hard to find and often the listing real estate agent is in the best position to takes advantage of these situations.

Also, we’ll need to assume that there are no legal barriers, potential zoning regulations or other problems that would immediately preclude one investment over the other. Moreover, you as an investor will need to assume that all of your information is imperfect and the future is almost always unclear about investment choices you make. Thus, the following approach to evaluating competing real estate investments is based purely on financial returns. Let the numbers do the talking!

Present Value Overview
The basic approach to present value boils down to an obvious fact: a dollar today is worth more than a dollar that will be received at some time in the future. For instance, what would you rather have: a $100 return now or $100 return in 2 years? Obviously now, but when you start making that future $100 grow, there will be some point at which you will decide in favor of the latter.

Assuming the worst is always a safer strategy. In present value, it is more reasonable for you to assume that any rents, receivables, rates of return, rate of appreciation and occupancy rates will typically be less than you want and expect. As you assemble the facts for your analysis or business plan, be very conservative and this is especially the case if you’re seeking funding from a bank, venture capital source or investment group.

Present Value Internal Rate of Return Methodology
As mentioned above, money has a time value. Albert Einstein was quoted as saying, “The most powerful force in the universe is compound interest”. The so called internal rate of return analysis is all about that. The Microsoft product, Excel allows a relative financial neophyte to analyze side-by-side alternative investment cash flows in terms of its compound interest time value

A Basic Example
Let us say that you have two properties that you’re might considering. The first is a home that you can purchase for $100,000 with $25,000 down. The second is a condominium that has a price of $75,000, but can be purchased directly from the builder with only $7,500 as the down payment. Let’s assume that both will appreciate at 5% per year and by the end of three years, you would be able to sell either for a 15% profit over your initial cost. Let is assume that you can rent these properties resulting in the following:

1. You receive a net $100 per month profit after your mortgage payment on the single-family home.
2. You can realize $50 per month net profit on the condo.

Which is the better investment?

Home Condo
$100,000 $ 75,000
Down Payment: 25000 7500
Yr 1 1200 600
Yr 2 1200 600
Yr 3* $41,200 $19,250
IRR 21.1% 41.6%
*Year 3 includes the yearly net rent, the return of the principal ($25,000 and $7,500, respectively) and profit.
The image on left shows what the Excel format would look like.

In the basic financial terms, without even considering individual any federal or state income tax rates that apply, the best investment would obviously be the condo’s rate of return which is more than double the rate of the investment on the home.

Now extending the investment horizon to 6 years, with the same sales price and the same rents, the condo is still the best investment, but the rates of return falls drastically. The home has a rate of return of 12.2% and the condo has a return of 22.3%.

How to Use the Excel function
Using Excel to set the example up is simple:
The Excel formula is IRR(Cash Flow1, Cash Flow2. Cash Flow3,Guess at Rate). On the Excel spread sheet it will be expressed as follows: =IRR(-C2:C5,19) where C2 is the initial investment (down payment with a bracket surrounding it, designating that it’s a negative flow) and C3, C4, C5, etc. which are the yearly (or monthly cash flows).

The last number, 19 is a ‘guessimate’ of the what the rate might be. I could used 5, 10, etc. Excel uses this as a function, but it really doesn’t matter whether you’re accurate or not.
You can obtain additional information about IRR directly from Microsoft.

Obviously you can make this as complex as needed. For instance, you might want to use a factor for federal income taxes, a factor for expected repairs and even increases in rent and real estate taxes. You may also assume occupancy rates. It really doesn’t matter as long as the formula is set up in the correct Excel format. You can make it as precise as you need. But keep in mind that too much precision into the future is largely wasted effort. This approach to analysis only requires you to be reasonable in all your assumptions.

There are numerous ways of performing real estate investment analysis. While you can’t ever know the future, you can assume typical terms, conditions and the types of rates that most banks or investor groups will demand of the real estate investor.

entered 11-28-2010

Real Estate Investment: Vacation Home or Condo?

With the historic decline in real estate values, many are wondering, “Which is the best investment, a home or condo?” To be sure, in some parts of Florida, the real estate market for condos is like Dresden after the allied fire bomb attack in World War II, a disaster of biblical proportions. But should one still shy away from a condo investment? The answer, believe it or not is, “Absolutely not!”

The Real Advantages of Condo Ownership in Florida There are several key advantages that one need consider. There is a key qualifier: the following pertains to properties that are located within coastal/vacation areas.

1. Cost/Return on Investment – Vacation condos in coastal areas that are both South of Tampa and Daytona Beach have an almost year round vacation market. Further north and the weather during the winter months is really too cool to attract tourists. Therefore, given the relatively low upfront cost in purchasing a vacation condo versus a single family home, weekly rental rates for condos are often a net positive cash flow, almost from the outset with a real positive return on investment.

2. Market Size – The market for short term condo rentals in the Florida vacation market is much greater than the market for single family vacation home rentals. The rental rates are much lower and the probability of keeping a condo rented on a continuing basis is much greater, because in the current market, fewer can afford the relatively high cost of renting a three or four bedroom home near the beach or waterfront areas.

3. Views – One of the other advantages of vacation condo is that condominium complexes near the ocean, gulf or in the Florida Keys usually have better views than would a moderately priced single family home in the same area. In other words, it is significantly less expensive to purchase a condo with a “decent” view than a single family home with the same view. 4. Condo House Keeping Cost – Typically, in mid sized to large condominium complexes that are rented to vacationers, it’s relatively simple to find reputable and dependable individuals to perform cleanup services after a one or two week vacation stay. Also, the clean up cost of a typical condo is a fraction of what it might cost to perform the same services on a single family rental home.

5. Facilities – A key advantage of a condominium over a single family home is that because there are so many units sharing the cost of all the facilities (a pool, recreation room, and work out room, etc.) the number and quality of facilities usually far exceeds that which might be found in a typical single family home.

6. Ease of Management – If one buys a condo situated in one of the Florida vacation destinations and the owner is located in Texas or New York, maintenance problems are an absolute annoyance. Even if the owner is only 15 minutes away, it still is an annoyance. With a condo, often there is an on site manager who normally handles a vacationer’s problems, like a jammed toilet or sink. Also, local maintenance companies can be contracted to respond to a problem when summoned by a tenant resolving the problem without ever bothering the owner.

7. Ultimate Sale of a Condominium – As mentioned above the market for vacation condos to purchase is significantly larger than the market for single family vacation homes. When an owner of a condo elects to sell his property after having owned it, it is certainly easier to find buyers with the necessary down payment and financial resources to purchase a condominium as opposed to a much more pricey single family vacation home.

Like anything else, doing the background work in purchasing a condominium is of key importance. A potential investor must research the area, the rental history, the condition and the suitability of purchasing whatever condominium in which he might have an interest. Even in today’s market and perhaps, especially in today’s market, a Florida vacation condominium has so many obvious advantages as an investment.

Entered 9-28-2010

Destination Resort Spectacular: The Florida Keys

Destination Resort Areas
Some shining example of real destination resorts are The Florida Keys, particularly Key Largo, Key West, Nassau and ski vacation locales such as Telluride and Aspen. What makes the Florida Keys a premier resort location is the fact that it offers vacationers a year round destination. While it’s true that Nassau, like Key West are cruise destinations, Key West and to a lesser extent, the rest of the Keys have incredible vacation attractions year round.

This is the key advantage that Florida Keys resort properties enjoy over ski resort properties in Colorado, California or Utah. The winter vacation season in Florida starts in late January and ends sometime in April. Beginning in June, the summer season kicks in until Labor Day. However, if you walked on the streets of Key West during the “off seasons” you couldn’t fail to notice tourists taking snapshots, fishing off the pier or enjoying the sights and sounds of old Key West. Cruise ships typically make port year round in Key West, probably to a greater extent than even in Nassau.

Other Keys Resort Areas
One shouldn’t overlook other Keys destinations such as Islamorada located about 78 miles from Key West and 53 miles from Miami. That’s a one hour drive to the airport. (Key West has its own airport, albeit somewhat small with limited service). The major advantage that Islamorada offers is its beauty, easy going life style and ready access to excellent restaurants and even some funky night spots.

There are other locations worth mentioning in the Keys, especially Key Largo, with its proximity to Miami, great diving and fishing. Certainly, Marathon and some of the lesser known Keys are certainly worth considering as investment opportunities which also offers an owner a great place to stay while not rented. However, Key West will still be the major draw in the Keys as an income producing vacation area.

Investment Points to Consider
It’s a fact that more than 50% of the vacation properties owned (condos and private homes) are owned by Florida residents. Another interesting fact about the Keys, is that more than 55% of the properties that are sold in the Keys are sold to people that visited there loved and loved what they saw. Therefore, the key point (no pun intended) is that the Florida Keys are an important vacation choice for people wishing to own their piece of paradise.

At the same time, the rentals on most of the properties can be used to defray most, if not all of the costs of owning a vacation property. In fact, after a few a years, the typical owner will have a net positive income based on vacation rentals. Of course, there is a trade off: how much does one wish to use their property versus how much income they do wish to generate with their property?

A Contrast: Owning an Investment in a Non Vacation Area
One of the primary reasons people elect to rent properties in non vacation locales versus vacation properties is the belief that those renting an apartment or home are less likely to damage the property where they reside. This is a specious argument, notwithstanding the problems that might result from renting to college spring breakers. Typically, if you judiciously rent your home or condo, carefully screening to whom you rent, there is little chance of major damage occurring.

This raises the question: why? Those visiting vacation properties in the Keys are spending most of their time outdoors sightseeing, fishing, diving, swimming, etc. While those in non vacation areas in their homes, spend the vast majority of their time (24/7, as it were) within that property. Breakage and damage is statistically more likely to occur, as a result of family problems and/or the wear and tear on a dwelling occurring with daily use. Another factor is partially socioeconomic. When a vacationer throws down $1,000 or more per week for a vacation rental in addition to a sizable security deposit, they are less likely to damage a well maintained vacation rental and may typically be more advanced in their career or job.

It’s Better in the Keys
In almost all ways, Florida Keys destination properties are certainly on a par with Telluride or Nassau. However, the Keys offer the added benefit of having an extended vacation season. Moreover, whether you’re interested in the Upper Keys (Islamorada) or Key West (the Lower Keys), property values have not depreciated nearly as much as they have within the rest of Florida or the rest of the country. There are two good reasons: 1. There is an overabundance of vacant properties throughout the U.S. as homes go into foreclosure. 2. Key West or Islamorada are vacation destinations and will perpetually produce income.

With an ongoing recession, vacations within Florida will be an even more attractive alternative to vacations outside of the country. Thus, a property purchased in the Keys will be an income producing property (zoning permitting) in the foreseeable future. As an investment vehicle and as a place to enjoy some ‘fun in the sun’, few vacation destinations top Florida Keys real estate.

Entered 8-18-2010

Benefits of Owning a 2nd Vacation Home

Looking for a tropical get-away that does not require a passport? Look at the Florida Keys. Stretching from around fifteen miles south of Miami to less than one hundred miles from Cuba, the Florida Keys offer a multicultural living and vacation experience to fit every budget.

Financing a Tropical Dream

Once reserved for the rich and the famous, a second vacation home can now be part of a smart investment portfolio. Mortgage rates are low, making financing a home in the Florida Keys more affordable than ever. Also, unlike the rich and the famous, the average individual is likely to rent his vacation home out to tourists when he is not using it himself.

Waterfront property is especially popular as a vacation spot. It offers the amenities of the local community – restaurants, attractions, transportation, security – and the beauty of communing with nature. The income from these rentals often covers the entire mortgage, enabling the owner to enjoy a free vacation in the Keys whenever he pleases.
Waterfront property also tends to appreciate in value over the long term due to its lasting popularity. The savvy homeowner of a Florida Keys waterfront vacation home is also building equity while he vacations there and rents it out – equity that can either be cashed in at retirement or lived in on a full-time basis.

Peace of Mind

Ask any therapist. The soothing sounds of the ocean provide the perfect background for relaxation. With a vacation home in the Florida Keys, no tapes or compact discs are needed.
Simply open the windows to enjoy the ocean’s relaxing sounds.

Also, as stress is a significant risk factor in elevated blood pressure, a vacation home in the Florida Keys benefits the homeowner physically as well as mentally.
Stress melts away with the ebb and flow of the tide, with the beauty of the sun rising or setting over the ocean, with the gentle ocean breeze.

One can almost feel his blood pressure lower with the laid back lifestyle. Or, if the need for some company arises, the Florida Keys offer a variety of restaurants, museums, parks, and attractions to amuse and entertain.

Add to the scenic view, soothing sounds, and peace of mind that comes with knowing that. No matter how stressful life becomes, a little slice of paradise awaits. It is a reward at the end of the summer, or at the end of a career.

Entered 8-18-2010

Importance of using an experienced Real Estate Agent

There is a lot of hard work that goes into buying or selling a house.
With today’s market and economy, that hard work has become even tougher.

That is exactly why it is critically important that you hire an expert to help you navigate through all the details and negotiations.

Yes, there are lots of Real Estate Agents, but not all of them may be looking out for your best interest. Therefore the first thing you need to do in this process is to find a real estate agent that you can trust, that has experience and importantly has great negotiation skills.

From the experience side of things.

A few things to ask a prospective agent?
How long have you been in Real Estate?
Do you do this full time?
What are your sales stats for the last couple years.
(These may seem like intrusive questions, but any top-producing agent will actually welcome them)

The importance of Negotiation.

Negotiating is probably the most important skill that an agent can possess. The agent could be an excellent salesperson, but without negotiating skills you might not be getting the best deal for your dollar.
A really great agent will listen to the concerns of both the buyer and the seller and then work on something that benefits both parties.
A great negotiator will ask the proper questions to find out exactly what those concerns are, and in addition what each side wants to ultimately accomplish.
The goal being, to turn your transaction into a win-win situation for both parties.

Area knowledge.

An agent should have in-depth knowledge of the area in which the property is located.
From a seller’s perspective, knowing the actual value of the property and how much the sellers could get for it is vital.
From the buyer’s perspective, the agent should know about schools, local amenities and even which local business are in the surrounding area. On the subject of tax rates, building codes, home repairs and insurance costs, an experienced agent can also point out exactly where to get the information.

In conclusion, picking an agent that has the experience and negotiating skills to help with selling or buying a home is an incredibly important step. Be careful to choose a strong partner in your pursuit of either selling or buying.

Wouldn’t it be nice to vacation here and not have to leave?