Real Estate Cost of Capital – Buying Undeveloped Land

For prospective real estate investors who feel tenants and building maintenance are ongoing headaches, buying undeveloped land may appear attractive. If you buy land in an area that’s expected to experience expanding demand in the years ahead, you should be able to make a tidy return on your investment. This is called buying in the path of progress, but of course the trick is to buy before everybody realizes that new development is moving in your direction.

When you buy undeveloped land your investment may take longer to be paid back and therefore you need to be especially aware of your real estate cost of capital.

You may even hit a home run if you can identify land that others don’t currently see the future value in holding. However, identifying many years in advance which communities will experience rapid population and job growth isn’t easy. Land prices in areas that people believe will be the next hot spot already sell at a premium price. That’s what happened in most major cities with new sports facilities (especially because these decisions often are dis- closed well in advance of the municipality leadership vote or the ballot initiative). You don’t have much opportunity to get ahead of the curve – or if you guess wrong, you may own some costly land for a long time!

Investing in land certainly has other drawbacks and risks:

  • Care and feeding: Land requires ongoing cash to pay the property taxes and liability insurance, and to keep the land clear and free of debris while it most likely produces little or no income. Although land doesn’t require much upkeep compared with tenant-occupied property, it almost always does require financial feeding.
  • Opportunity costs: Investing in land is a cash drain, and of course, purchasing the land in the first place costs money. If you buy the land with cash, you have the opportunity cost of tying up your valuable capital (which could be invested elsewhere), but most likely you will put down 30 to 40 percent in cash and finance the balance of the purchase price instead.
  • Costly mortgages: Mortgage lenders require much higher down payments and charge higher loan fees and interest rates on loans to purchase land because they see it as a more speculative investment. Obtaining a loan for development of land is challenging and more expensive than obtaining a loan for a developed property.
  • Lack of depreciation: You don’t get depreciation tax write-offs because land isn’t depreciable.
  • Cost of Capital: Make short and long term projections for the length of time you will hold your property.

On the income side, some properties may be able to be used for parking, storage income, or maybe even growing Christmas trees in the Northwest or grain in the Midwest! (After you make sure you’ve complied with local zoning restrictions and have the proper insurance in place.)

Although large-scale land investment isn’t for the entry-level real estate investor, savvy real estate investors have made fortunes taking raw land and getting the proper entitlements and then selling (or better yet, subdividing and then selling) the parcels to developers of commercial and residential properties (primarily home builders). If you decide to invest in land, be sure that you:

  • Do your homework. Ideally, you want to buy land in an area that’s attracting rapidly expanding companies and that has a shortage of housing and developed land. Take your time to really know the area. This isn’t a situation in which you should take a hot tip from someone to invest in faraway property in another state. Nor should you buy raw land just because you heard that irresistible opening bid price advertised on the radio for the government excess land auction down at the convention center this Saturday.
  • Know all the costs. Tally up your annual carrying costs (ongoing owner- ship expenses such as property taxes) so that you can see what your annual cash drain may be. What are the financial consequences of this cash outflow – for example, will you be able to fully fund your tax- advantaged retirement accounts? If you can’t, count the lost tax benefits as another cost of owning land.
  • Determine what improvements the land may need. Running utility, water, and sewer lines; building roads; landscaping; and so on all cost money. If you plan to develop and build on the land that you purchase, research these costs. Make sure you don’t make these estimates with your rose-tinted sunglasses on – improvements almost always cost more than you expect them to. (You need to check with the planning or building department for their list of requirements.)

Also make sure that you have access to the land or the right to enter and leave through a public right-of-way or another’s property (known as ingress and egress). Some people foolishly invest in landlocked proper- ties. When they discover the fact later, they think that they can easily get an easement (legal permission to use someone else’s property). Wrong!

Understand the zoning and environmental issues. The value of land is heavily dependent on what you can develop on it. Never purchase land without thoroughly understanding its zoning status and what you can and can’t build on it. This advice also applies to environmental limitations that may be in place or that may come into effect without warning, diminishing the potential of your property (with no compensation).

This potential for surprise is why you must research the disposition of the planning department and nearby communities. Attend the meetings of local planning groups, if any, because some areas that are antigrowth and antidevelopment are less likely to be good places for you to buy land, especially if you need permission to do the type of project that you have in mind. Through the empowerment of local residents who sit on community boards and can influence local government officials, zoning can suddenly change for the worse – sometimes you may find that your property has been downzoned – a zoning alteration that can significantly reduce what you can develop on a property and therefore the property’s value. See the sidebar „The dangers of downzoning“ in this chapter for more details.


Determine Your Real Estate Cost of Capital

Immobilienmakler Heidelberg

Makler Heidelberg

Which Real Estate Strategy Is For You?: 5 Options

When, a homeowner, decides, it is time, for him, to sell his existing home, it may be, for any number, of possible reasons! Some are obvious, such as financial challenges, job relocation, changing personal needs, priorities, etc, while, other motivations, may be, more – personal, etc! Regardless, however, in my, over 15 years, as a Real Estate Licensed Salesperson, in the State of New York, I have learned, and strongly, believe, a primary, initial decision, which, often, has significant impacts, is the initial, listing price, when the house, originally, is, put – on – the – market, to sell. Basically, there are 5 basic strategies, for pricing, your home, for – sale. With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, what these are, and, why, it matters.

1. High – end of range: Especially, in these times, where, we see, a combination of limited, available inventory, near – record – low mortgage interest rates, and a sellers – market, many homeowners, seem, to prefer, pricing their houses, at the higher end, of the range! In, some cases, this strategy, achieves its objectives, but, often, risks, houses, which don’t end – up, selling, Using this strategy, should, only, be considered, when the seller, is willing to take some risks (hoping for greater rewards), and isn’t under, time – pressure!

2. Middle, of the range: In most cases, the smartest approach, is, to price a house, in the middle of the range, suggested, by preparing, a professionally, designed/ created, Competitive Market Analysis (usually, referred to, as a, CMA). This, usually, creates, a strong – demand, by, qualified, potential buyers!

3. Lower third of range: There may be, several reasons, for this approach, to listing price! Usually, it creates, a significant demand, from qualified buyers, and, helping, to sell the house, for the best – price, in the shortest – period, with a minimum of hassle!

4. Pricing above the high point: During certain, real estate markets, such as the one, we have witnessed, for several months, currently, we often, witness, listing prices, set, above the higher – end, of the indicated range! When, prices, are rising, quickly, this may help getting more money, for one’s house, but, since most buyers, use a mortgage loan, to help finance/ pay – for, the home, doing this, risks, home appraisals, which don’t, perhaps, justify, the size of the desired loan!

5. Below lowest point: Setting an initial, listing price, below, market – levels, may be indicated, under certain circumstances/ conditions. This approach may be effective, when a seller wishes for a speedier sale, and, believes, creating, a so – called, bidding – war, may, make sense! It may also be a good approach, for marketing houses, with some, unusual circumstances, needs, goals, and priorities!

Whichever strategy/ approach, used, it is important to realize, there is a significant different, between, listing, and selling, prices! Will you be an educated, informed, smarter home – seller?

Immobilienmakler Heidelberg

Makler Heidelberg

Are There Lizards in Myrtle Beach?

As real estate agents in the Myrtle Beach and The Grand Strand, area we often receive routine questions from prospective home owners regarding housing, neighborhoods, schools, weather, etc,. However this question from a lady in Europe caught us off guard.

Q: Are there lizards in Myrtle Beach?

A: Myrtle Beach is known worldwide for sun, sand, surf, fun, dining, nightlife, golf, and entertainment but not for it’s lizards.

Yes, Myrtle Beach does indeed have lizards. Primarily „lounge lizards“ but also a healthy population of green anoles and other small harmless lizard species. There are no large iguanas or iguanadids like those found in Southern Florida, the Caribbean and other tropical areas.

Myrtle Beach has a moderate seasonal climate that supports a wide range of plants and animals including lizards.

The green anoles are very common to this area, so common in fact that after a while you hardly notice them. Anoles are cold blooded reptiles and can often be seen basking in the warm Myrtle Beach sun. They rarely grow over 5-6″ and change colors from a brownish gray to a bright lime green. They’re really very pretty in the bright green state and the males are spectacular when they show off for the lady lizards by extending their vermilion throat fan.

Most Myrtle Beach area locals consider it good luck to have an anole or two hanging around their deck or back door. They earn their welcome by consuming massive quantities of flies, mosquitoes, bugs and other creepy crawlers.

They’re really quite harmless and a beneficial part of our environment. When we were kids we used to catch them and let them bite onto our earlobes (no it doesn’t hurt and they don’t break the skin as they don’t have teeth, just rough raspy lips). Then we’d go inside wearing 5″ live lizard earrings and „freak“ our mommas out.

Though not as common as the anoles, you may occasionally see a blue tailed skink in the shadows or a six-line racerunner in the sand while visiting Myrtle Beach. Myrtle Beach is also host to North America’s largest lizard, the American alligator. Warning! DO Not dangle baby alligators from your earlobes.

Yes, someone really did ask this question. They were severely affected by Scoliodentosaurophobia (fear of lizards) and did not want to live in an area that had lizards. By the way, the only state in the U.S that does not have lizards is Alaska.

So, if you suffer from Scoliodentosaurophobia, Myrtle Beach might not be the best place to relocate to or invest in a vacation home. However, if you can tolerate a few anoles, an obnoxious lounge lizard or two, and an occasional gator, The Grand Strand is a wonderful place to live, retire to, and invest in.

Immobilienmakler Heidelberg

Makler Heidelberg

4 Main Objectives Of Most Home Sellers

Let’s begin this article, by agreeing, no two homeowners, considering selling their homes, are exactly the same, nor necessarily possess precisely the same motives and reasons. However, it might be helpful, if we realized, most homeowners find the process of selling their houses, and relocating, to be a somewhat tense, emotional, stressful period. Perhaps, identifying the four major reasons people sell, and looking at their objectives/ goals, might be a beneficial one, because it will help create more empathetic real estate agents, who focus not only on the technical aspects of the transaction, including marketing, promotion, etc, but on the client’s needs, concerns, and priorities, as well. Here are 4 main objectives, it has been found, most home sellers, possess.

1. Best possible price: Obviously, most people would want to end up, with the highest possible price, when selling their house. However, there is more to this, than simply a number. Some of these factors to consider, when comparing offers, include: 1) Will it comp – out? Since most people buy homes with mortgages, an offer which far exceeds, the appraisal from the lender, will often create a deal – breaker!; b) What are the terms? Is this a true all – cash deal? An all – cash deal can either be; all – cash; or simply, no mortgage contingency!; c) What will be the downpayment? Obviously, the greater the downpayment, the better the chance of the deal going smoothly; d) Are they pre- qualified or pre – approved? The difference is the first means, based on merely the preliminary information provided, the applicant will be approved, while the latter means the applicant is approved for a mortgage up to a certain dollar amount, as long as the house also qualifies.

2. Shortest reasonable period of time: Recognize the opportunity cost of money. Every month extra it takes will mean the homeowner will have to continue to pay taxes, utilities, his mortgage, overhead, etc. Doesn’t it make sense to agree to a shortest – possible wait, for the closing date?

3. Least hassle: Hire a real estate agent, who informs you, every step along the way, and holds your hand, throughout! Have the possibilities and ramifications explained to you, so you are ready and prepared, because less uncertainty, usually equals less hassle!

4. Successful transaction: Remember, it doesn’t count, until it closes! What steps will your agent take, and have you take, to assure, as smooth a transaction period, as possible?

Some homeowners primarily care about one of these, while others care deeply about several. The more you know, and the better you prepare, the better the end – result!

Immobilienmakler Heidelberg

Makler Heidelberg

Home Security – Best Value In Security Camera Systems – The Top Two

Home invasions and home burglaries are two of the fastest-growing areas of crime in the country with one out of six homes being burglarized every year. Do you really want to become a statistic? There are so many simple things that you can do to make your home less attractive as a target for burglary and home invasion.

You can start by locking all your doors and windows. Police tell us that 60 percent of all home burglaries happen through unlocked doors and windows. Start or join a neighborhood watch. If you don’t have one in your neighborhood get one going. They are free and they work. Put up a sign in your front yard that warns of a nasty barking dog. Eliminate darkened areas around your home that may be hiding places by installing some motion activated spotlights.

And the best thing you can do to protect your home is to install a home security camera system. They are not as expensive as you might think. For under $400.00 you can get a four channel wired USB DVR surveillance system.

The system has four day night color wired bullet cameras, 100 feet of cable for each camera and the USB DVR that hooks up to your computer. You can have a global wide video surveillance system in five minutes or less. This system does not work with Windows 7.

Or, there is another four channel DVR complete system. You can install up to four wired cameras that record all activity. The DVR is fully networkable. Cameras are fully weatherproof and are day/night indoor or outdoor cameras-two dome style and two bullet style.

They are the best value in home security camera systems.

A burglar or home invader would have to be absolutely crazy to pick on a home that has cameras at the front door, back door and another at the side of the house when there are so many other homes that are less protected to choose from.

Take that next step to protect your home with a home security camera system.

Immobilienmakler Heidelberg

Makler Heidelberg

How to Buy a Car? 10 Step Strategy for Buying a Better Car Without Overpaying

Buying a car is a major purchase and can be a daunting task, but to convert that daunting task to an easy task you should learn some essential car buying tips. Deciding on what you exactly want and what you are willing to pay ahead of time will save you more money and make you avoid a lot of hassle and common pitfalls. Follow the 10 step strategy to get a better car deal with the most appropriate price:

  1. Check your budget: Setting a budget is the first crucial step. A budget will let you choose only the cars that you can afford, so stick to your budget and choose only the cars that you can afford.
  2. Choose the right time: At certain times of the year there will be a huge car inventory at car dealerships. At those times you can find competitive prices, more incentives and better deals. Best time could be the beginning of the year and from July to October. So it is much better to look for the most appropriate time when you buy a car.
  3. Research the prices: If you want to save as much money as you can when buying a car, research car prices. By now, you are limited to the cars that fall into your budget scale, try to research the prices of those cars by visiting online websites such as, Kelly Blue Book and NADA to research the prices of those cars. The most important thing is collecting as many price quotes as you can so you can extract an average price for each car you are interested in. Bear in mind that cars have many different price, but the invoice price is the most important thing to know when starting the process of negotiation.
  4. Make two lists: New and used cars have advantages and disadvantages. For example, new cars are stocked with new features, but as soon as you buy it, there will be a depreciation in price as much as 11% to 15%. On the other hand, used cars are considered a field for best deals with good prices, according to their conditions, but they may cost you more if you finance them and may cost you much more for the maintenance. So consider making two lists each one contains the collection of cars you are interested in buying along with their respective average prices.
  5. Choose car requirements and model: Now that you have two lists and a collection of cars, try to organize each list in terms of requirements and model. For example, which aspects you need the most: Do you need a towing package with the car? Do you need a big car for your family? Do you want a fuel-efficient car?
  6. Consider payment options: Obviously there are two ways of paying, either you pay in cash or you finance the car. If you finance the car, you will pay a down payment, then you pay a monthly payment until you finish the total price of the car. If you afford to pay in cash that is great, but many people choose the financing option. If you are going to finance, try to make the down payment as high as you can. Some people choose a financial plan at dealerships, but it is not recommended because you can find better finance options with a good interest rate at banks, Credit Unions or online by visiting websites such as E-loan and Lending Tree.
  7. Consider insurance premiums and warranty: Insurance is a major factor in the overall price of the car. Bear in mind that if you buy a sport car or popular car, the insurance premiums will be higher than the conventional cars. Warranty is something that will guarantee maintenance for your car if something wrong was ever happened. Whether you buy new or used car, make sure that it has the manufacturer warranty, so you do not have to pay extra money for the extended warranty.
  8. Inspect and test drive the car: You must inspect and test drive the car before you buy it. If you are buying a used car, inspect the car by a trusted mechanic to disclose any potential problems the car may have. Furthermore, have a vehicle history report to detect any major problems the car may have to check whether it has salvaged, stolen or has been involved in an accident. When you test drive the car, take enough time on it and focus on the driving experience and whether it will suit you in the future or not. If you do not feel good, leave it and try another car. Do not be impulsive instead, be calm and focused and do not let the dealer or the salesperson sway you to another choice. You did your homework, and you must stick to it to get the best deal.
  9. Negotiate the price: Depending on your research and the two lists you have in hand, you can negotiate with confidence. Now you have price quotes and loan rates to help you with negotiation. If the car you are going to buy is new, make sure that you know the „invoice price“ so you will be in a better position when you negotiate. On the other hand, if the car is used, make sure that you know the recent resale price for that car.
  10. Rethink before you sign: Finally, if you have made up your mind and picked a car to buy, rethink before you sign. Make sure you do not sign „as is“ statement until you have thoroughly inspected the car and checked its performance and comfort level. Read the fine print carefully and do not sign until you know all the details in the contract. Do not let the dealer or the person who sells you any car make you sign quickly instead, take your time to read each clause in the contract better yet, take an attorney with you to finalize the paperwork for you.

As you can see, if you want to get a better deal when buying new or used car, there are a lot of things that are taken into consideration. It is always best when you know what you want and what you are deciding to pay before you buy. So do your homework ahead of time to enjoy your favorite car.

Immobilienmakler Heidelberg

Makler Heidelberg

How to Get Super Cheated While Your House is Being Foreclosed

You have seen that bandit sign at the intersection that says STOP FORECLOSURE call Mr. Miracle at 555 BIG SCAM. Here is an opportunity. Mr. Miracle who looks talks a lot like P. T. Barnum and Elmer Gantry all rolled into one, suggests that you deed your house to him subject to the mortgage. What does that mean? In Florida, it means that you have deeded your house to Mr. Miracle He owns it. It is his. You need to move out or pay him rent. He owns the house but you owe the mortgage. You owe the mortgage. You signed a promissory note when you got the mortgage. You personally promised to pay back the money. If you don’t, the bank will sue you for a deficiency judgment. What is a deficiency judgment? It is when the bank sues you and gets a personal judgment against you for the difference between how much you owe and what the house sold for at public foreclosure auction on the courthouse steps when Mr. Miracle did not catch up and make the payments like he said he would.

Oh well. You can always declare bankruptcy unless you have already done that and the bank waits until you have done that to sue you. Don’t those judgments expire? Yes they do in twenty years. In Florida the creditor can take your assets. take your bank account, garnish your wages, aggravate you for a long time

Wouldn’t it make more sense to get a little more information before you deed your house to Mr. Miracle.

Here is another idea. Let’s do nothing! Yeah do nothing. Just sit back and wait for the foreclosure auction. It’s not your fault that you are in this fix anyway. It’s the bank“s fault. It’s the real estate agent’s fault. It’s the government’s fault. Do nothing is just a little bit better than deeding your house to Mr. Miracle. If you do nothing, in Florida, it will take about six to ten months for the foreclosure process to happen.Your house will be sold on the courthouse steps. It will sell for pennies on the dollar or the bank will buy it. You will probably be sued for a deficiency judgment. Your Problems have just begun.

Deed it to Mr. Miracle. That is not a good plan. Do nothing. That is not much better. What can you do?

Here is a novel idea. Catch up the back payments and continue making the payments. I am amazed at how many people are being foreclosed on that aren’t working. Go to work. Earn some money. Do something beneath your dignity. Sell something. Sell everything you own. Sell your car. Sell your jet ski. Sell your furniture. Sell your jewelry. Sell your motorcycle. If any of this stuff has payments, sell that first. Get the money together and make the payments. Unless you committed fraud to get this mortgage, you could afford this house when you bought it.Afford it now. Make the payments. Don’t take this lying down. If you did commit mortgage fraud to get this loan, that is an even better reason to make the payments. After foreclosure a fraud investigation could really make your life miserable. Google that,

Many people that come to my real estate school are there to learn how to learn to make money so they can make the payments on their house that is being foreclosed. Real estate, insurance,pre paid legal, Avon, Mary Kay, Pampered Chef and a bunch of other products are sold on commission only. Anyone that wants to earn money can learn to make money by selling one of these products. It is easy to get hired because the recruiter can’t tell if you are going to work. Almost all products that are sold on commission only can be sold by anyone that works hard. Get such an opportunity and earn some money. Make your payments.Most of these products including real estate can be sold part time. If you are currently employed but need more money, find such an opportunity. Make your payments.

Call your mortgage company or bank. Talk to them. Ask them what you can do. They might amaze you. I have heard some amazing stories.

Here is a plan that I am certain will work. Sell your house. If you can’t afford it, sell it. What could be more simple than that. Find a buyer. He gets a new mortgage, pays your mortgage off. Your problem is solved. What if your house is worth three hundred thousand and you owe four hundred on your mortgage.?

Banks are in business to make money. If they foreclose on your house, it will probably sell at public auction on the courthouse steps for $200,000, or the bank will buy it at the courthouse steps. Then they will list it with a real estate agent and he will make a commission. They will also pay the normal closing costs of the transaction. They will also have all the normal expenses of home ownership; taxes, HOA dues, insurance, maintenance, etc. They don’t want to do that. However, if it is the most profitable option available to them they will do that.

Another choice for you is called loss mitigation, slangly called „short sale“. The way this works is, you find a buyer, the best way to do that is to list with a good real estate agent. The real estate agent finds a buyer at a proper price. Participate in that decision. After all the expenses of the sale have been paid, the bank accepts the proceeds of that sale and satisfies the loan.

Have an attorney represent you and be certain that the bank waives their right to a deficiency judgment.

Please understand you are in a very bad spot. It is going to take a lot of discomfort to get out. Be good to yourself. Be good to your spouse. Do not sign any papers that you don’t understand. Legal advise is cheap compared to what can happen without it. Think. These are big important decisions.

Immobilienmakler Heidelberg

Makler Heidelberg

If You Own Iraqi Dinar Currency, Selling It Won’t Be Easy

If you are among the thousands of people who have bought Iraqi Dinar currency in hopes of scoring a big profit, you may now be wondering what options there are for liquidating your Dinar holdings.

The Iraqi Dinar investment dream has been around for nearly a decade now. The dream is promoted by a slew of websites that sell Iraqi currency – that is, actual physical bundles of currency – to „investors“ through mail order. The websites‘ sales pitch goes like this: „Before the 1990’s Gulf War 1 million Dinar was worth $3,200,000 USD; today you can buy 1 million Dinar for just $1,150.00 USD“. As the Iraq economy improves the Dinar will likely be revalued. If the revalue is at a level approaching it’s pre-war exchange rate, today’s small cash outlay could return millions for those savvy enough to get in now. Iraq’s vast oil resources, well-educated population and guaranteed rebuilding aid from the US make buying Iraqi dinar almost a sure bet.“

This rationale has proven compelling for thousands of people who’ve taken the plunge and bought Iraqi currency.

But people who buy Iraqi dinar are not buying a liquid, actively traded investment; rather they are buying a numismatic „collectible“ that has very high transaction costs. For example, today you can expect to pay about $1,150 USD for 1,000,000 of Iraqi Dinar (IQD) currency from on-line dealers. The same 1,000,000 IQD has an official exchange rate value of just $854 USD – a hefty 30% markup. Dealers justify this margin by noting the high costs of transporting and safekeeping foreign currency bundles.

Similarly, if you are a holder of Iraqi currency and have decided to convert your Dinar back into US dollars, your options are limited and costly. One Dinar website makes the following noteworthy disclosure in its fine print Q&A page: Until markets develop for the resale of Iraqi Dinars, it may be difficult for you to liquidate your Iraqi Dinars or exchange them for US Dollars.

One option is to sell the currency back to a Dinar dealer. Typically, online Dinar dealers who advertise 1,000,000 IQD for sale for $1,110 are willing to pay $800 to buy back the same 1,000,000 IQD. In other words, when you drive the Dinar off the lot, it’s instantly worth 32% less in the eyes of the dealer that just sold it to you! Selling Dinar back to a dealer is the option having the highest transaction cost but least amount of hassle.

A second option is to sell your holdings on eBay. With eBay, transaction costs should be 10% or less (meaning you might pocket $1,000 if your 1,000,000 IQD can fetch $1,100). (This eBay fee calculator will give you a good idea of your transaction costs.) However, for the newcomer, eBay can be intimidating and entail a substantial learning curve. You should be aware too that eBay has a very active community of Iraqi dinar dealers who you will be directly competing with.

A third option is to sell your Dinar holdings on Craigslist. Craigslist is free, easy to use and very effective for selling items. However, the audience is primarily local and the number of listings for IQD is relatively small – even in the larger Craigslist communities.

The Iraqi Dinar dream may someday become reality for those investors willing to buy and hold dinar for the long-term. But people looking to liquidate their Dinar holdings today will likely take a significant loss on their „investment“.

Immobilienmakler Heidelberg

Makler Heidelberg

Property Agents Help You Find The Right Tenant

If a landlord has a property to rent out, he has the option of looking for a tenant on his

own. Instead of exploring this option, he can seek professional help to find the right

tenant. It is advisable to hire a property agent though many landlords are tempted to

save brokerage fees. The consequences of not having a property agent are disastrous

as the landlord ends up with a tenant who proves to be a source of trouble. Hire a

property agent who is an expert in the rental business segment to avoid regrets later.

Best price

Since a real estate agent has the latest updates regarding ongoing rates in various

localities, he is able to provide a tenant who pays the highest rent for the property.

Saving in Cost

A real estate agent can place advertisements on behalf of the landlord at zero cost.

He uses his superior marketing services and network to generate leads. But a

landlord has to spend his money on releasing advertisements in the papers to find a


Client base

A real estate agent already has several clients looking for a good rental option and

this saves time and resources. His database is useful.

Undue advantage

A real estate agent handles negotiation with the tenant and ensures the terms and

conditions set by the landlord are not modified by the tenant. When a property agent

is involved, a tenant cannot take any advantage or put forth clauses.

Multiple responsibilities

A real estate agent bears all the responsibilities related to the rental

process. Advertising, showing of the property, tenant screening, preparing the

lease document, and collecting funds are his key duties.

Background check

A property agent digs up the past of a tenant – the relationship he shared with his

previous landlord. He is able to know whether the tenant behaved well with his

earlier landlord, paid rent on time, and maintained the property well or not. Getting

the right tenant is the prime reason why you need to hire a property agent. Seek a

tenant who cares for the property and maintains cordial ties with neighbours.

Employment history

A real estate agent can seek employment details and visit his office to verify facts.

He can speak to his employer and colleagues to know the kind of job he has – full-

time, consultant or contractual. His salary figure gives an idea of his capacity to pay

the monthly rent. Stability and tenure of the job are important considerations.

Transferable clients

Many landlords prefer tenants with transferable jobs as the property gets vacated

after a couple of years. A property agent has a long list of clients with transferable

jobs. Even if they do not get high rent, they are happy because they do not have to

go for litigation to get the property vacated.

Support system

Many aged landlords living on their own need tenants who become their support

system. They want to have a family that takes care of them, do many errands for

them. Their definition of a right tenant includes a person or a family they can

approach during emergencies. Some landlords want to have tenants who take full

care of the property since they live far or abroad. A good, educated, cultured family

is what they need.


Many landlords prefer a family instead of letting it out to bachelors who cause a lot of

trouble. The marital status of a tenant becomes the key consideration. A landlord

can specify what he needs to avoid and what he prefers. Once he defines his

expectations, a property agent can filter out the options and conduct a focused


Real estate agents possess information and technology that landlords do not have.

They lower the risk, negotiate well and ensure quick completion of the transaction.

Immobilienmakler Heidelberg

Makler Heidelberg

Real Estate Buyer Leads – How To Find More Leads

There is immense potential in real estate and the market is usually moving upwards. I started my real estate company around 4 years back and went through the motions of disappointment, stress, and de-motivation before I could actually find success staring me in the eye. Some people will find success as a cliché because it is interpreted differently by different people. For me, success translates into vertical and lateral growth with increase in profits and market stronghold.

In the last 4 years, I have understood that real estate buyer leads are of prime importance because it drives growth and success in the real estate industry. There are many real estate agents who believe that a lead means a real estate buyer or seller but for it is a little different. I firmly believe that a lead is someone or anyone who will be able to use my services today, tomorrow and even after 4 years. The process doesn’t finish when you find a lead, the process actually starts after that. It is not necessary that your lead will get converted to a client and I have experienced the trauma of not being able to convert leads into sales because convincing a client and selling a property is one of the most difficult aspects of real estate.

If you look at the real estate market, you will find that only 20% of real estate agents have been successful in the industry and 80% real estate agents have either given up on their dream or joined some other industry. This is because the 80% have not realized that a lead is a prospective client and hence should be treated like one. I have clients who came to me after speaking with 5 to 10 other real estate agents. The same clients have provided me with more leads. Honestly speaking, I don’t have a magic wand nor do I have any special ability. All I have done is walk the extra mile for my leads and they automatically got converted into clients. It is all about understanding the buyers psyche. The result is that today I am among the 20%!

Immobilienmakler Heidelberg

Makler Heidelberg

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