Found 7 blog entries tagged as Investment.


 

Once you start talking about real estate investing, everyone wants to join the conversation. There are a lot of opinions thrown around on how to do it, personal experience, and maybe even their family’s strategy for investing.

At Precision Home Group, we base everything off of facts and thorough research. We make sure to fully understand an investment, before we present it to potential clients for sale or purchase. We make sure that whatever deal we put our name on is well thought out, ran efficiently and well represented.

Overall, we have seen a trend of people purchasing small deals, and trying to make a quick buck through flipping, wholesaling. We have also seen an increased utilization of people trying to invest with other people's…

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All too often, realtors use jargon that the average person isn't familiar with. The term “CMA” is one of those terms you may have heard, but wasn’t sure what it meant. CMA stands for Comparable Market Analysis. This is how real estate agents determine the market value of your home before they get it on the market.

Real estate agents come up with these values through research of your home’s location, comparable properties and the market. Unlike most commercial properties, whose value is determined by income, residential properties take a different approach.

There is a difference between “tax assessed value” and “market value.” Tax assessed value is what you pay taxes on and, depending on where you live, can be above or below market value.…

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When working with sellers, one of the things we advise is to get a home inspection done before getting the home on the market. Now, typically this is a cost that a buyer would incur during a home sale transaction, but there are several reasons why a seller would want to do this.

During a home inspection a licensed home inspector will meticulously check out the entire home from foundation to roof. They provide a report, typically next day, with complete recommended repair items with thorough pictures and descriptions. These reports are usually broken into three categories: health and life safety, significant repairs, and recommended repairs. By getting the home inspection before you get it on the market it allows home buyers to be at ease,…

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When looking to lease or purchase a commercial property, you want to start the process by walking the property, looking at financials and making sure the property use fits your needs. The next step is to submit a letter of intent, or LOI, to start the process of negotiating terms with the property owner. Below are five things to be addressed in the LOI.


5 Things to Know About a Letter of Intent (LOI)

 

1. Purchase Price and Terms

One of the first things that the owner will want to know is what the buyer is paying for the property. This can come in a variety of different ways, but at the end of the day it needs to be specific how the price is going to be settled.

In a lease, this is typically calculated in a dollar amount per square foot and will have a set percentage escalated…

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 Updates vs. Maintenance

 

We work with a lot of people who want to sell their homes. One of the most common questions we get is in regards to home value, and recent renovations and maintenance.

Many people think that because they recently had their roof, furnace or other items replaced, they can include that cost into the price and recoup some of that expense.

Additionally, people ask about their remodels and renovations and how that influences the price of their home. Let’s dive deeper into this topic and explain what items affect price.

 

How Are Homes Priced?

Before we begin talking about how maintenance and updates, let's talk about how homes are valued. Homes are priced based on the sale of recent comparable home sales that are similar and in close…

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“We Can't Sell During the Winter”

 

I talk to people everyday about buying and selling homes. This is one of the most common objections and myths I hear, from about August until March. Alaska is a very seasonal place and things typically slow down during the winter. Many people think the same is true for the real estate market. But is it really?

Currently, it is mid September as I write this, and already people are talking about shorter days and colder nights. I hear of people taking their homes off the market because their friends, neighbors and self-proclaimed experts are telling them to do so. But, here are some facts:

  • Active Homes on the Market= 952

  • Homes with Accepted Offers = 451

  • Closed Homes Since Sept.1 = 52

  • Closed Homes Since Aug. 1 =…

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Real Estate Investment Trusts (REIT)

Part three of our Real Estate Investing Basics series is all about Real Estate Investment Trusts, also known as REITs. Let's dive in and discover what a REIT is, how they are used, and what the pros and cons are in comparison to the other real estate investments we have talked about.

 Real Estate Investing Basics: The ins and outs of REITs.

 

What is a REIT?

REITs were created by Congress in 1960. This was done to give everyday people the benefits of owning real estate. REITs are companies, treated by the IRS as corporations, who own various types income-producing real estate investments. Investors can buy into these companies by purchasing shares, which in many cases are publicly traded like stocks. They are modeled after mutual funds and bought and sold in…

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