DC Fawcett Virtual Wholesaling – Online Home Estimates,Vacation Home,First Investment Property,Buy A Home

Dc Fawcett Tips – When is the appropriate time to buy a home?

DC Fawcett reviews -When-is-the-appropriate-time-to-buy-a-home

There are some life-changing happenings in our life. One such thing is definitely buying a house. And again, you cannot obviously take it very simply. So now we are posed with the big question: what is the most feasible time to purchase a house?Here Dc fawcett give some tips about appropriate time to buy a home ,then you should see to it that you take a decision for which you won’t repent later. In all ways, it should be a studied decision.

Dc Fawcett Reviews

So now we are delving into the question:When is the appropriate time to purchase a house.

Let’s consider some aspects regarding this:

  • Your money is no doubt the biggest thing that when you contemplate on when to purchase a home. In case you are in requirement of a mortgage you should be cognizant of the fact that generally the lenders will ensure that you have a substantial down payment. Getting that cash can be a herculean task. However, you can have a look at the down payment assistance programs. Besides, the way you pay your previous debts will be looked by the lenders to ensure that you pay their money too in a quick manner.

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  • Well, the bottomline is that you take this life-changing decision of buying a home at the time you are able to pay for it. To be precise, its affordability that counts here. One suggestion is not to place a “timing calculator” on mortgage rates. This can also apply to home values. This is mainly due to the reason that these two factors are quite hard to forecast. So just go for buying the property you desire as soon as you set your eye on it.

Now to have a tight control over your budget you can ponder over the following:

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  • You may think of purchasing the expensive property on the area. But here then the question is, are you bent on reselling the property eventually? When you think of the appreciation factor that goes with these homes, they have the least appreciation. Well, by now you would come to a conclusion which would turn against buying such a house.

  • After deciding on purchasing the house as soon as considering your affordability you can question about property taxes etc.

  • Inspection is one important aspect while purchasing a home. Don’t overlook this since though it may cost you some money it will eventually lead you to save a substantial amount.

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  • Well, you have made that great decision of buying a house. Here then, don’t attempt at involving in any other big investment.

When you are all set for buying your house, keeping into account your affordability, don’t be pre-occupied with the thought of the prices to see a slump. In fact, when purchasing a home it’s about the mortgage rate. Your affordability to pay the mortgage rate even after few years from the current time since the rates have seen a surge, has an impact on your affordability to purchase the house.

Purchasing a home involves a lot of upfront costs and its wise that you don’t carry out selling off the property following the closing of the property deal. Besides, home buyers can reside in their property for atleast a period of five years to fructify the investment.

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Online Home Estimates -Are They Dependable? – DC Fawcett

Computers have made our lives wonderful;  they have made our lives more simpler. But have you wondered whether the set of steps followed can be a substitute to the astute thinking of the human mind? Well, now the topic of discussion given by  DC Fawcett VREIC is none other than real estate valuation.

DC Fawcett Real Estate - Online Home Estimates -Are They Dependable

You may be planning to sell off your home and would have certainly done some meticulous research. You may even used an online tool to give you the quick estimate. Well now the question of the day is whether these sites are really accurate in giving you the exact worth of your home? One of the drawbacks of using these sites is that they overprice the property. Or for that matter these sites will even undervalue the property.

Real estate valuation sites have some smart set of steps to estimate the worth of your property. But that doesn’t mean that it is always correct. In fact home values are impacted by several aspects and the things like public records can’t take note of everything. Can the latest home sales be the total determining factor for finding your home’s worth? Certain things like the home’s features, the likings of the potential buyers etc, can be taken into account only by a human brain. and also know about Deposit on Home Purchase.

Dc Fawcett Reviews 5Now let’s pose this question. Is there any latest sale of comparable homes in the vicinity? If not,  the chance of online estimate accuracy is quite restricted. It may be the case that the home has a distinct facet that the other properties in the area don’t possess. Also, the local market may also have seen a drastic change. These are just some of the factors that imply that the online estimate need not be accurate.

A qualified appraiser can guide you in knowing the true worth of your home. Or for that matter even a licensed real estate agent will help you in this case.

  • The online algorithms have chances of showing errors on the properties that had seen a total rehab. So these online estimates can be just useful when you just want a fast detail about the home.

  • By now you would be wondering why should you overly depend on these online sites. These online sites may not take into account various aspects that will have a profound impact on the value of your property. Now let’s look at some of these aspects.

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  • The condition of your property is one important aspect of your home. In fact the condition of your property also plays a major role in determining the value of it.

  • Generally, a real estate agent will allot enough time to compare your property with those of the similar size and also life in the vicinity. This he does say for the last few years.

  • There are certain aspects of your house that your realtor will consider which the online estimate will not. You may have upgraded your facilities and these will be regarded only by the realtor.

  • The ongoing developments in your area will be known essentially by your realtor and an online estimate will not know this.

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DC Fawcett Suggestions When Buying Your First Investment Property

Many people who have invested in the real estate have turned affluent. So, DC Fawcett Suggestions will help for real estate investment might seem a viable option. But, you need to contemplate much before you make any move. Purchasing the first investment property is not an easy task. When you carry it out smoothly, investment in property could produce a steady income.

DC Fawcett Reviews -Suggestions when buying your first investment property

Browse through a number of properties:

Some investors just make a speedy skimming through the property in the vicinity, and they dive head first into the deal. It is to be noted that these people are spending more than the actual value of the property.

You need to thoroughly go through many properties in the vicinity, and also in other areas before you choose a property. You need to come to terms with the worth of the property, and you need to make sure that it helps you attain your monetary ends. Skimming through hundred properties might seem like a lot. But, as the internet plays a major role, it is much easier to browse through a number of properties. There are a number of websites which enable easy search for properties. Do a fair study, and browse through a lot of properties before buying one.

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Do not become emotional:

Being emotional plays a major role in the purchase of the property, and it could hinder the process of selecting the right property. You will end up paying more than the actual value of the property. Usually, sane decisions are not taken when the emotion overtakes. The fact being that it is your residence, there will certainly be a role played by the emotions. But, take the investment as a financial transaction, and consider it like purchasing stocks.

Make way for investment goals:

You have to set a financial target before you go for acquiring a property. Some people cannot actualize on what property would yield them fruitful results.
It is not a sane decision to choose a property which has not been maintained well. This is particularly the case when it comes to earning a passive income. Ending up buying a property in the rural area is not the desirable out come if you want speedy capital growth.

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Setting a financial goal helps you self-actualize and understand what your needs are. You can buy properties that adhere to the goal.
Putting investment into property is a sound decision when you want to acquire profitable returns.

Do not hasten:

When purchasing the first investment property, some people tend to be impulsive and they get excited. Also, they desire to purchase property as soon as they can. But, understand that the market is there always, and properties for sales are always accessible. Do not go out and pay an exorbitant sum on a property which is not going to get you the profits. Take sufficient time for the research of the property when you are purchasing property in vicinity that you do not know.

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Make a thorough research in the area:

You might be residing in the area for quite a long time. But, that does not imply that you have a full understanding regarding the property. And, you have to understand what the property is going to yield in your desired area.

Make a comparison with other properties in the area and understand what the rental returns are. Go for a property that is desired by everyone in the area.

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Dc Fawcett guidelines for buying a vacation home

Dc Fawcett is a million dollar virtual real estate investor and a great mentor. He has mentored many real estate professionals by offering rich guidance not just on virtual real estate investing but also on various other real estate topics,through his blogs and his proprietary learning systems. His guidance is beneficial, enriched by years of experience as a virtual real estate investor. In this article, he gives suggestions for how to buy a vacation home and read these Dc Fawcett guidelines to gain knowledge on the same

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Determine how much you like it

Once you buy a vacation home, you cannot constantly change the place or sell it immediately so, make sure that you love it before you buy. So, do some outings there with your family or friends and explore. Ensure that you love the vacation spot and then proceed with buying.

Don’t just go by your heart’s desires

Say, you come across a lovely vacation home. You may love the way the home is constructed and the vacation neighborhood may be beautiful as it borders the ocean. Say it is a very busy area and filled with events and people on vacations. Now, it turns out that you are going to get married soon and you are going to spend your honeymoon in that vacation spot.

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Then, is it suitable for you? A quiet and peaceful lakefront property may suit you better in that case as you don’t want to be disturbed by the crowds of people and the roar of the ocean waves. So, it is not enough to just like the home, instead you must think logically and consider whether it suits you.Also think about long-term effects of buying a property.

Budget

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The most important factor is affordability since buying a home is not only about the purchasing price. You have to consider various costs like

  • Property taxes
  • Home owners’ association fees
  • Landscaping expenses like growing a garden
  • Cleaning, which involves garbage removal, interior home cleaning, tidying the basement and the backyard etc
  • Watchmen expenses to eye your home while you are away

You can compare the total costs of buying the home versus renting a vacation home. Consider how many days you will spend at your vacation home in a year and then multiply a single day’s rent for renting some vacation home with the number of days spent. See which is better and this is a very good way of analyzing affordability.

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Rental income

It will be beneficial if your vacation home provides strong income options out of rent. You can actually pay off your mortgage by renting out your home. So, talk to local real estate agents and browse online to find out about the rental market in that area. You should gain knowledge about how often homes are rented in that area and the rental rates also.

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Conclusion:

DC Fawcett is a real estate entrepreneur come trainer, helping all real estate fervents to achieve their goals by means of his seminar and camps. In addition, he also teaches how to develop a real estate business and produce different income streams.

DC Fawcett will guide you in how to get started in real estate through his blogs. He also teaches entrepreneurs the way to develop their business and also the different ways to produce different income streams.

 

 

DC Fawcett Real Estate – Ideas on Home Equity Loans , Housing Bubble ,Family limited partnership

DC Fawcett Real Estate Attributes Of A Financial Adviser

The importance of financial adviser is discussed in this content by DC Fawcett.  We are also going to talk about the significance of the adviser and how much he contributes to the home sale DC Fawcett Real Estate

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His decisions are crucial when you buy a home. The mortgages, asking price, offer and taxes are some critical points in the process of home-buying and selling which is performed with the consultation of a financial advisor.

The financial adviser is easy to find as you can get every piece of information with the help of Google nowadays. You can look into NAPFA (National Associate of Personal Financial Advisors), AICPA (American Institute of Certified Public Accountants) , FPA (Financial Planning Association) are few ways to start your search.

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The traits of a financial adviser can be studied through Fawcett’s review.

  • Many investors just think that financial advisers should be well-versed in handling finances alone, but that not only helps. He should know the value of the investor’s money and his financial status.
  • He should be able to give you alternative suggestions when your plan a fails, in other words an instant plan B should be in the hand whenever there is a mishap in plan A.
  • There are trusts, stocks, REIT, groups etc in the real estate. He should have some knowledge on all the areas. He need not be an expertise, but not half-baked as it dangerous.
  • Make sure you understand all the financial terms explained by the adviser. If not, stop and ask what he is trying to convey you. You can also read about financial terms by making use of the financial guides’ available online and virtual real estate investing clubDc Fawcett Reviews 1
  • Risk is not certain as investors know the outcome; you can predict it and mitigate the effects.
  • Don’t give your consent blindly without knowing what the financial adviser is doing. The qualified advisers will get an informed consent. Don’t sign any document blindly without reading terms and conditions. Sometimes the scammers are in the form of advisers and write whatever they want in the document, check whether the documents are legal or fake first.

Dc Fawcett Reviews 2How to hire a financial adviser?

The first and foremost, the adviser should have completed necessary certification from a reputed educational institution and undergone training which makes him/her qualified. Look out for professional designations so that it makes him qualified and the adviser is supposed to have profound knowledge.

It is merely waste if he either fails to express the skill sets wherever required or doesn’t help when you are in financial crisis.

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Find how long he has been in this profession. Experience is one of the important criteria you have to check out. As real estate is a vast area, there are lots of issues to be looked into.

Question the adviser as much as you want and extract the information. Check out the adviser’s history; find whether he has been involved in any suspicious activity. He should be a good listener than a narrator. He should be able to fix your problems and not elaborate about his personal stuff.

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DC Fawcett Real Estate What is the need for Family limited partnership?

What is FLP?

Involvement of family members in a business or assets left for them, and then it is called family limited partnership (FLP).DC Fawcett Real Estate The FLP can be established by spending a cost of 5000 to 10,000 dollars.

It is a partnership agreement signed in consent between the family members who are the active participants in trade or business. It is used to divide the income and profit equally among the family members. To administer the objectives of the family members, FLP is required.

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The business can be in the form of real estate property which can be even vacant land or holdings or assets like gold, stocks, and bonds.

The advantage of FLP is to transfer the value of the assets to any member in the family which leads to reduction in the estate.

Types of Partnership

General and limited are two types of partnership. Initially, general partnership is created with interests of limited partnership. Now the general partner has all the ability to gift the limited partnership interest to his or her heirs or other eligible members in the family.

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The general partnership gets the entire ownership over the asset as well as he or she can control the other members in the family whereas limited membership pass on their powers to their heirs and other eligible members in the family.

DC Fawcett discusses about the pros and cons of FLP.

 Pros of FLP

  • Reduces the burden of income tax issues as you can pass on the powers to your heirs.
  • Transfer of ownership is systematic: The value of the shares remains with the value of the estate.
  • Tax benefits
  • Income tax savings from limited membership when you add your heirs onto your limited membership.

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Drawbacks of FLP

  • Heirs are burdened with capital gains liability which is based on the property type, which can be further studied with the attorney’s help.
  • The stepped-up value is not constant.
  • General members are prone to risk as do not have any protection for their asset.
  • Minor (heirs) cannot get ownership easily: it requires the interest of a guardian or a parent membership. General members should control the activities. So, the family members cannot choose them for limited membership category.
  • DC Fawcett complains about the exorbitant tax levied on the assets which are not oriented to business and may lead to capital gain unnecessarily.
  • There is a financial loss when there is a property ownership transfer.

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We infer from DC Fawcett reviews that the benefits are less in FLP but when executed in the right way, the family members can enjoy all the advantages. Don’t become a victim by getting involved in a scam; In order to do that, you need to consult a financial adviser to know in depth about FLP.

The attorneys generally deal with FLP’s and you can also take the help of financial planners. You can learn more about financial advisers and how to hire them by browsing DC Fawcett virtual real estate investing club.

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DC Fawcett Virtual Real Estate Investing Club Collateral And Home Equity Loans

Collateral option is preferred by the investors when the loan amount is huge. The borrower has to be in consent with the lender that he is allowed to take a part of the collateral for selling purpose in case the borrower fails to make the payment. DC Fawcett Virtual Real Estate Investing Club  Usually the borrower pledges his land and the borrower can expect a reasonable amount when he applies for the loan.

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The collateral is used as an assurance from the lender’s perspective. It reduces the risk as he does not lose all his money when borrower falls short on his payment. The lender has all the rights to hold the borrower’s possession when there is a payment default, the possession can be sold and the amount can be used as reciprocal for the loan.

Instead of taking legal action and to avoid lengthy procedures, the lenders just sell off whatever the borrower pledges as collateral and make money.

Not only land, there are different types of collateral which is listed below.

The valuable asset can be in any form which can be made into cash when you sell.

  • Automobiles
  • Real estate
  • Savings account ( the lender takes the amount that is left in your account whichever is due)
  • Insurance policies

Usually the lender only sanctions a loan which is very much less than the value of the asset. There may be certain situations where you may need to add collateral when the existing collateral loses its value.

Collateral loans are usually applied by business men as well for personal use. They are the last choice when the investor has a bad credit score as these loans are expensive.

Similarly, home equity loans are preferred when the borrower is in need of huge amount. These loans are not having much strict guidelines and easy to get qualified. It is more of a second mortgage, when the first home you own has resulted in sufficient home equity.  These loans are considered to be safest and you cannot come across scammers and fraudsters as these loans are provided by the bank. Know you income and expenses before applying for the loan.

The following are the benefits of home equity loans

  • Rate of interest is low
  • People with bad credit score can apply for these loans as getting an approval are easier.
  • The investors get tax deductions

When the borrower fails to repay, his house which is kept as collateral is taken by the bank and the foreclosure procedure comes into force. The risk factor should be kept in mind before applying for home equity loan. The fear of losing your property will stop you from applying the home equity loan at times.

Also the bank should not approve loans having higher amount as bank may face a financial crisis if all those borrowers default in payment. The borrower can avail two options namely HELOC and lump sum, which is more like second mortgage type. To know more about second mortgage, the uses read the blogs in DC Fawcett virtual real estate investing club.

DC Fawcett Real Estate -How 401(k) and IRA schemes are beneficial for investors?

What is 401(k) plan?

401(k) plan is a scheme for employees for the purpose of salary reduction. It can be done on post-tax/ pre-tax basis. DC Fawcett Real Estate The benefit of this scheme is the employees can include profit-sharing feature.

The total amount accumulated is tax-deferred. The salary contribution has a limit which is given by internal revenue service (IRS). The maximum amount that can be contributed is 18,000 dollars. 12 percent of the salary can be saved which is considered to be low for retirees.

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There are some hidden costs like trustee fee, book keeping fee and some legal fee. It is an illiquid form of asset as the money is locked and cannot be withdrawn until the investor reaches a particular age.

There is forfeiture if the money is withdrawn earlier before the contract period terminates. There is only one allowance that is the investor is allowed to withdraw money under certain situations from this scheme provided he or she pays back within the given deadline.

Since 401(k) is alone not sufficient for retirement life, IRA (individual retirement account) should be opened and funds should be deposited every now and then.

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How IRA can be used?

DC Fawcett put forth his reviews on how to use IRA and nominating the beneficiary. You can nominate a person who will be eligible to receive the fund after your demise. It is called adding an IRA beneficiary.

IRA is the outcome of 401(k), because when you are an employee the company offers 401(k) scheme which becomes IRA in the future. It is called rollover. In this process, the funds are transferred from 401(k) to IRA.

The primary beneficiary receives the funds being the first nominee. Only if primary beneficiary passes away first, then the IRA is subjected to probate process, the decision is taken by the court.

The judge will give the verdict about to whom the money should be given to. This process is time-consuming and expensive. To avoid this, the contingent designation power is used, where second beneficiary is nominated who will receive the funds if first one passes away. Adding multiple beneficiaries is not possible.

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How Roth IRA influences real estate?

DC Fawcett explains the positive aspects of Roth IRA to the investors. Roth IRA is a better investment strategy than 401(k) retirement plan. The best thing about the scheme is it is tax-free.

The investors who want to invest on real estate in the retirement period by buying a property or living in rented apartment needs money. For this Roth IRA is recommended.

Apart from that, the other benefit is self-directed Roth IRA offers the opportunity to invest on real estate or gold which is a form of expanding the investment boundaries.

Investors are allowed to withdraw money without forfeiture. So when you are facing a financial crisis, this money can save you from getting disabled completely. There is no age bar to withdraw money which is yet another advantage.

This scheme is scam free, so investors can take up this plan to use for retirement purpose.

From this review, we infer that Roth IRA is more flexible and has more advantages than 401(k). To learn more about retirement plans, visit DC Fawcett virtual real estate investing club.

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DC Fawcett Virtual Real Estate Investing club – Real Estate Housing Bubble

In the first quarter of 2017, 60 percent of the houses were affordable. Most of them availed 30–year conventional mortgage scheme and secured good credit score. DC Fawcett Virtual Real Estate Investing club

Affordability factor

Three factors to check whether a home is affordable or not

  • Median home price nationwide
  • Average 30-year fixed mortgage rates
  • Median household monthly income

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An affordable home is a property whose debt-to-income ratio is 28 percent or less than median household monthly income. If you are planning to invest on a real estate investment property, it’s not the right time and you need to procrastinate. Low mortgage rate and affordability factor may not last for a long time.

When you are about to purchase the property, the prices would have become historically high. FHA loans require only 3.5 percent down payment, but there are new loan programs offer financing. Getting a pre-approval before the rise of mortgage rate is a good idea.

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Purchasing a property is a challenge for millennials. If the home price goes up along with mortgage rate, it creates a negative impact on housing market. The demands are reduced whereas supply increases.

At one point of time, the home prices come to a standstill when rates are fluctuating. The homes price will not increase after a point of time when mortgage rate keeps on increasing. 5.5 million Homes were sold in 2016 making one of the best years in home sales.

The “5” forces in 2017 housing market

  • FHA mortgage insurance
  • Rising mortgage rates
  • first-time home buyers
  • Low inventory
  • High prices

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October 2016 witnessed highest hike in the property value. Seattle, Portland, Oregon and Denver were few cities experienced the inflation.

The home-buyers either couldn’t afford to pay down payment or qualify for a mortgage which in turn reduced the percentage of affordable homes available for sale. With more buyers entering the market, there is a bidding war for homes with more demand and less supply.

Millennials prefer rental homes over home ownership as prices have inflated. 40 percent of the home buyers are millennials.

Different stages of Real estate bubble

  • PHASE I: RECOVERY

Characteristics of a recession: high unemployment rate; decreased investment, price of land is at its lowest point. With increase in population, the demand for homes increases.

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We see a vast increase in vacancy rate across all types of real estate – office, retail, residential. This is happening due to investors opting for already vacant homes for the commercial and office space purpose rather than searching for new location. Already vacant homes charge less than new development.

  • PHASE II: EXPANSION

The phase changes to expansion when the market witnesses a change in the housing trend. The change is when most of the properties are occupied; vacancy rate must be historically low or nil. When supply meets the demand or there is an excessive demand for properties.

There must be scarcity for new homes. The profit is the key factor for developing new properties on the vacant land or rehabbing the existing properties.

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Adding a new inventory to the real estate market is not a cakewalk. We all know the process of constructing a property is a lengthy formality.

Negotiation of land sales, permission and approval for zoning regulations, financing has to be sanctioned. Building a home takes a lot of time which depends on location, builder and other factors. By the time it is up for property listing, the phase II is already in the process. Along with that occupancy rate and rent would have increased.

  • PHASE III: HYPER SUPPLY

When the occupancy rate exceeds long-term average, there would be pressure on the rent. The first hindrance point in the real estate cycle is increase in unsold inventory. Growth rate is decelerating.

  • PHASE IV: RECESSION

The second hindrance point in the real estate cycle is transition from hyper supply to recession. The surplus inventory leads to lower occupancy and low rent which reduces the revenue for landowners.

The Third hindrance point in real estate cycle is increase in rate of interest. Though there are shortcomings, there is a drastic increase in borrowing cost. Lower occupancy and low rent is a buyer’s market.

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The downturn in real estate trend has huge impact on the local economy. Recession is an unexpected event. The expansion phase occurs now and then and investors get to enjoy the benefits of home ownership.

Conclusion:

From the review, we infer the different phase of housing bubble. To prevent from real estate scams, visit DC Fawcett virtual real estate investing club where DC Fawcett has explained about the investment properties, pros and cons, tips for beginners. His articles have been read widely by all aspiring investors.

DC Fawcett helps people to learn what’s working best in the real estate market and how to grow in real estate investment business. He does this job efficiently with his proprietary virtual real estate investing systems.

 

Dc Fawcett Real Estate – Benefits of Timber frame in condos and town homes

Introduction

Benefits of Timber frame in condos and town homes

We have already seen how brick homes are sold and the standard quality maintained all these years when constructing a property.  DC Fawcett Real Estate explains the investors about using a timber frame in the construction of properties in recent times.

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Timber beam homes

Construction time is quick, prefabricated timber frame takes less time than a traditional home built using bricks. Usually, it takes seven to ten days to bring a team of experts specialized in this type of construction to the site. The work can be done only weather conditions are perfect. Extreme weather conditions are not suitable. It is a dry construction process; the moisture has to be stabilized after it is weather tight. The walls are clad used during board containing a dry plaster. The land should be in dry condition. Structural insulated panels are used for air tight construction which makes a home efficient. Vulnerable to pest attacks.

How timber frame can be used in condos and town homes?

Timber frame influence in real estate is relatively high; it has a significant contribution to properties like steel and brick homes. To sell a home fast, sellers need to construct homes being eco-friendly. Timber frame has insulation capacity and the walls are thin. The timber structure is known for its thermal performance. They prevent moist air. The heat resistant capacity is another exclusive feature which you can highlight while selling the home.

These timber frames can be used in condominiums and town homes as these homes lack sound-proof quality and privacy is not ensured. To minimize loudness, properties can be constructed using timber beams. Dense materials are used to reduce the sound. The party wall is the separating wall in town homes; the sound can be muted by using timber frames.

Dc Fawcett Real Estate Reviews About Timber Frames

Advantages of timber frame

  • The timber frame is rot resistant. The cladding is well-protected. Insects cannot attack this cladding, provided moisture content is less than 20 percent. You can prevent from fungi.

  • The properties built using timber frame are fire proof

  • Strong and durable, the properties remain strong for even a century. It can protect from extreme weather conditions and natural calamities.

  • Renewable nature
  • For winter, these homes are preferred as the timber frame structure protects from coldness with its moisture content. People frequently turn on and off the heating to maintain the warmth in winter. It gives an aesthetic appearance.

  • Low maintenance
  • Few interior walls are possible.
  • Porches, decks, and patios timber log cabins are designed for outdoor areas to adorn the lawn.

Cost of timber beam homes

It is considered to be slightly higher than steel and bricks. The design is mostly pre designed. If you want a bespoke design, consult an architect. Customized design is quoted with fixed price. Hire skilled carpenters to do repair work. The cost varies from 150 to 175 dollars per sq.ft.

A basic timber-frame home costs $200-$325 per square foot, $300,000-$650,000 for a 2,000-square-foot home. Home appraisal takes few to several weeks. Approach lenders who have prior experience in handling timber frame condos and town homes; else you become a victim for the scam as many scammers are fooling the first-time home-buyers.

Where can you find timber beam homes?

Minneapolis is known for timber frame homes. They use age-old methods having an open floor plan, high ceilings and beams are crafted. The cathedral beauty of timber frames can be seen in historic monuments which are still strong after several centuries.

Apart from that, you can use for constructing single-family homes, farm house and resorts near the shore.  The timber frame is preferred by the investors for their second homes or vacation homes. The baby-boomers also love this structural cladding for their retirement homes.

We infer that timber has both advantages and disadvantages through this review. To learn more about cladding, visit DC Fawcett real estate virtual investing club.

 

DC Fawcett Real Estate Reviews – Housing Market , Market Corrections , Market Cycle

DC Fawcett Real Estate Reviews – Cities topping in 2017 housing market

When you are looking out for a property, there are many factors like job market, tax values apart from location. To reside happily, there should be peace and it is attained when your neighborhood is a safe community and the residents can enjoy their life to the fullest. DC Fawcett Real Estate Reviews brings a list of cities that have been considered as the best places to live.

First-time home buyers can join the virtual real estate investing club to know more about quick home sale and real estate scams to be avoided.

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New York City, Seattle and Houston metro areas are considered to be safest. Madison is attracting tech companies, thus providing solid job opportunities for all the people, followed by Austin, Dallas, Boston, California. Virginia, San Francisco, Seattle, Orlando and Columbia are emerging to be strong contenders in providing job opportunities. Boise, Idaho is a city that is growing in tech sector and proving solid business opportunities.

DC Fawcett Reviews:

DC Fawcett complains that there are few cities that charges heavy rent and not suitable for first-time home buyers and low-income community.

  • For renters, some cities aren’t suitable owing to high rent levied by the landlords for example; Miami which is known for its waterfront and luxury properties tops the list. On the other side, the income of an employee in that city is relatively low.

  • From seller’s perspective, Miami is considered to be one of the best real estate investments as they can sell it off at a higher price as it has got potential growth. Landlords in California are quite lucky as the house rent is rapidly increasing every year.

  • Manhattan is considered to be the costliest place to dwell apart from Miami. San Diego, Los Angeles, Seattle, San Francisco, New Jersey are few cities where rent is quite high.

  • Indianapolis is considered to be most affordable city for rental as it costs just 800 dollars approximately followed by St.Louis, Omaha, Iowa, Houston are most affordable cities which are recommended for millennials as these cities have a rental-friendly lifestyle.

  • Minneapolis and North Carolina have ranked top in low cost living. Florida tops in the fastest growing cities list.

  • Taxes play an important role when you own a property; there are tax deductions, and benefits etc. Consult your tax advisor for more information. The effective property tax rate in Alabama is 0.38%, second lowest in the country.

  • Homeowners in San Francisco pay the highest median property tax. Hawaii County residents pay just $820 whereas in Madison it’s $1,464. Homeowners in New Jersey pay the highest effective property tax rate in the country 2.13%.

The property tax rates are Colorado 0.5%, Arizona 0.66%, Virginia 0.83%, Georgia 0.89%, Florida and Washington 0.93%, Massachusetts 1.13%, New York 1.38%, Ohio’s 1.57%, Texas 1.63%, Wisconsin 1.72%.  Investors can prefer Dallas, Florida and Texas as housing market sounds profitable.

Retirement communities like Boise, Brevard, Colorado, Texas, and Iowa ranks top and retirees can prefer one of these cities preferably.

Safest neighborhoods are Connecticut, New Jersey, Indiana, and Massachusetts. These places are highly suitable to raise your child in a safe environment and crime rating is low.

Investors gear up and find the best real estate agents to purchase a property in any of these cities.

DC Fawcett Reviews – What are the strategies to prevent from market corrections?

Investors are taking steps to protect their portfolio as interest rates have dropped historically low. There is still hope that when there is a rise in the rate of interest, all the loss will be compensated. It’s not the right time to invest in stocks and bonds as there is an overall drop in the stock market and analysts says there are constant fluctuations. DC Fawcett Reviews  says that the investors’ should expand his horizons by concentrating beyond the stocks as there are various forms of alternative investment like  real estate, commercial, gold etc.

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DC Fawcett  advises them to use fund strategies which are volatile. In private equity, the hedge funds are not liquid. The loss can be minimized with proper planning and it’s not wise to indulge yourself in panic selling. 5 to 10 percent of your funds should be allocated for future reserves as portfolio diversification is essential. Annuity is not considered to be an alternative form of investment; it helps in potential market growth. It can be used only as an indirect form of investment. There has been no stock market crash after 2008, so experts are predicting it may happen over a period of time. Identify your financial goals and how much return you need to make it in a fiscal year.

One of the best and safest forms of investment is purchasing a real estate property to protect from inflation. When there is inflation, the investors will witness and overall rise in national median rental income and median property price. As we all know about REIT, and for investors who doesn’t have an idea can browse through DC Fawcett virtual real estate investing club. They are well-known for purchasing property holdings through private equity or members of REIT can claim direct ownership.

DC Fawcett strategies to prevent from market corrections

Commercial real estate investments are recommended for high return+s and you can expect a fixed income. The only drawback is the money is withheld for a prolonged time. Investing in Commercial real estate debts is a good option when you apply for short term loans where you preserve your collateral for 5 to 10 years. The professionals have come out with a report saying that private equity‘s performance is much better than public equity as it is less volatile. Public equity involves day to day investment whereas private equity investments are made as per investors’ choice. Investors can choose restricted access in order to prevent themselves from panic-selling, at the same time it also reduces work for investment manager as he need not hold funds.

Other risk management strategies include hedging with futures contracts, buying low beta investments Corrections are viewed less problematic than actual recessions. Investments should be diversified enough so that no single commodity can sink the entire portfolio. Learn more about market corrections and fluctuations to prevent from scam.

Counter-Cyclical Investing

Purchasing stocks or mutual funds that belong to an industry negatively correlated with major indexes, you can see your portfolio appreciate in value when the market struggles. These investments are described as “counter-cyclical.”

Hedging

The general concept is to reduce the risk of a security losing value by making a complementary investment. Counter-cyclical stocks could be considered a hedge. Purchasing real estate, gold or other alternative assets can be considered hedges. One common hedging strategy is to sell futures contracts on a stock.

Dollar Cost Averaging

DCA’ing is a method of making long-term investment purchases in a systematic way to prevent from market corrections.

Low Beta Investing

Invest in securities that have a low beta coefficient.

To overcome the market fluctuations and to diversify the portfolio, investors can make use of these strategies.

DC Fawcett Real Estate Reviews – The real estate market cycle

The real estate market cycle

Investors would have come across the word “market cycle” and wondered what does it mean and how much it influences your portfolio, assets and other investments. DC Fawcett Real Estate Reviews explains about the 4 stages of market cycle in this article.

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Accumulating the Assets :

The first step is “accumulating the assets”. The market cycle terminates when the asset value declines. At this juncture, investors are quite unwilling to do some investment pertaining to the dip in the market. The experienced investors consider this as golden opportunity and purchase these properties at low price just like a foreclosed home. When this process repeats, it becomes like a cycle and steadily the market grows and negativity fades.

DC Fawcett Reviews Market cycle

Markup

Having said that, we enter the stage two of the market cycle and the investors call it “Markup”. This phase is usually characterized by frequent fluctuations. At this point, many sideline investors join the market to do some investment. This will probably instill some confidence in the investors’ mind that have stopped involving themselves from stage 1 considering the current market situation is not healthy. This in turn makes the market competitive as retail investors join the race as they find the market to be potential at this point of time. At the end of this phase, we conclude that market has been recovered almost and new targets are set for the investors to accomplish.

Disbursement

The 3rd phase of the market cycle is called “disbursement”. This is the period where all their investments start to liquidate which is done to optimize the profit. The new investors or first-time buyers make use of this opportunity to accumulate their assets which results in volatility owing to fluctuating prices. Experts step away as they know the in and out of real estate market cycle. The fluctuation results in lows and the disbursement cycle get terminated.

DC Fawcett Market Cycle Overview

Mark Down

The final step is the opposite of step2, “mark down”. The investors realize that they will face both ups and downs in the process and in order to cope up, the start selling their stocks, which leads to downward trend. Investors who hold assets further may face panic selling situation, resulting in decline in prices. A pool of investors joins to buy properties at discounted price and thus the cycle moves onto step 1.

Investors must understand this process as it is quite complicated, it can be either profit or loss. The risk quotient is totally unpredictable in the real estate which is determined by volatility index marked by bear and bull periods.

2017 is characterized by bull market so far, in other words the market is optimistic with 20 percent raise in the stocks. The nation is also witnessing low unemployment rate which is another positive sign of the optimistic market. The bull market ends when bear market commences with the fall in stock market prices.

DC Fawcett Real Estate Physical Market Cycle

DC Fawcett Virtual Real Estate Investing club – How to use a Jumbo CD

A normal CD (certificate of deposit) will have a denomination of minimum 100,000 dollars whereas Jumbo CD’s have large denominations and investors are getting benefitted by receiving an interest for the amount deposited.

In this content, you will find DC Fawcett advising his investors about the usage of Jumbo CD, pros and cons.

DC Fawcett Real Estate Jumbo

 Why are they preferred?

DC Fawcett Reviews about the benefits of jumbo CD. The jumbo CD’s are preferred because of risk-free nature and considered to be a stable real estate investment.  The jumbo CD’s are sold by institutional investors like bank, pension funds.

  • Investors are paid with a sum of money as reimbursement during the contract period as they cannot withdraw money over this period. The longer the time period, the higher the denomination, the higher the rate of interest will be.

  • It is considered to be one of the reasonable options for savings as the investor is bound to receive significant amount as returns. Investors can prefer CD’S over savings account in a bank.

  • The most important aspect of jumbo CD’s is the guaranteed return on investment, though there is a bankrupt or market fluctuates, the investor is assured with the principal amount at the time of maturity.

  • For investors having high net-worth, Jumbo CD’s are offering an option to segregate the investment into parts and deposit in two banks. The amount which is not needed for next 5 years should be only deposited to avoid penalty.

  • Some banks offer a week or two as the contract period to make quick earnings. They are also called negotiable CD’s because you can sell off the CD to someone else; this option is not available for a normal CD.

Jumbo CD’s

  • They are used as collateral without the interference of the bank. We have already learnt about collateral loans, you can check out the piece of content in DC Fawcett virtual real estate investing club,  the investors must also learn how to prevent from real estate scams  as there are many fraudsters who pretend themselves as bankers and offer loans.

  • Consult with your financial adviser before you invest and ask how much can be invested as well. Learn which bank offers a nominal rate of interest and then invest.

  • The investor complains about the issues faced while using a jumbo CD. If the time period of the deposit is longer as well as the denomination, then high rate of interest have to be paid. It cannot be used for retirement savings.

They are not suitable in an environment where there constant inflation. To earn significant amount in return, you need to sign up a contract period for a pretty long time.

DC Fawcett Reviews jumbo cd

High penalty fee is charged if the investors wish to withdraw the money before the maturity. When you withdraw too early, along with the interest, a portion of the principal amount is deducted.

The amount of interest you incur at the time of maturity is taxable, so investors who like to pay only less tax will not choose this as an investment option. Not every investor can make such a huge capital investment.

Conclusion:

These are some of the emerging trends in real estate for 2017 and beyond as reviewed by Dc Fawcett. Real estate professionals must upgrade their knowledge about  real estate and face what is in store for them with ease.DC Fawcett virtual real estate investing club consists of blogs where investors can learn more about market cycles and sharpen the investment choices. Apart from market cycles, you can learn more on real estate scams and other marketing strategies.

 

Dc Fawcett Real Estate – Methods of calculating NOI ,Profit Earning,Tips On Saving Money

Introduction:

Net operating income is used for the purpose of analyzing the income generated from real estate investments.Dc-Fawcett-Methods-of-calculating-NOI-Net-operating-income-768x543

NOI can be found on cash flow statements and property income. If the end result is negative, then it is called net operating income loss. It can be increased by hiking the rental payment or by decreasing operating expenses. Operating expenses are insurance, property management fees, utilities, property taxes and repairs.

Dc Facwett Real Estate formula

NOI is non-taxable income and it helps in calculating cap rate,  ratios like debt coverage ratio (DCR) which t

ls whether the property income includes debt and operating expenses or not. It measures the ability of income generation of a property. Lease analysis is the initial step to analyze how income is generated; it helps out the investors as it indicates both who has paid as well as the source.

Dc Facwett Real Estate formula 1

DC Fawcett Reviews further explains how to calculate NOI.

NOI formula

Potential rental income- vacancy and credit loss = effective rental income

Effective rental income +other income =gross operating income

Gross operating income – operating expenses = net operating income

Net operating income is positive when operating income exceeds gross operating income.

Dc Facwett Real Estate formula 14

Lets breakdown the formula of real estate

  • Potential rental income is also known as PRI is cumulative of rental payments if occupied entirely. If not, market based rents is used.
  • Vacancy and credit loss means income lost due to renters vacating the property or when they don’t pay their rent every month.
  • Effective rental income is the amount that the seller /owner gets in hand
  • Other income refers to laundry, parking etc.
  • Gross operating income is sum of all income generated from a property.
  • Operating expenses include personal and property taxes, insurance, management fee etc.

Dc Facwett Real Estate formula 2

Net operating income doesn’t include the following expenses

  • Debt: financing powers remains with owner /investor.
  • Depreciation: accounting entry alone so excluded
  • Home improvements: These changes are done according to tenant’s wish. So charges are not taken while calculating NOI.
  • Commission is paid to brokers and agents
  • Amount is allocated for repair and renovation work. Those funds are excluded.
  • Capital expenses are also part of repair work; it may happen in irregular interval.Dc Facwett Real Estate formula 15

NOI is used to

  • Measure the profit of an investment
  • Calculate underlying cash flows

Fake loan scam is a typical scam where scammers pretend to call from a renowned bank and say they offer a loan, some may get attracted and say yes meaning they are willing to avail the loan. You will know it’s a scam, when the amount deposited is with a low rate of interest.

Dc Facwett Real Estate formula 3

You can take help of the real estate professionals, tax advisors to calculate NOI for your property.

DC Fawcett Real Estate Tips – Methods Of Profit Earning

Real estate market helps the investors to earn profit in several ways. DC Fawcett, the founder of virtual real estate investing club has stated his reviews on how to earn profit. Let’s have a look at it.

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  • Inflation in value

The property is considered to be an asset, it can appreciate in its value only if it is sold or refinanced. Refinancing can be calculated using mortgage.

  • Raw land

Purchasing a raw land and constructing buildings on it. If the land possesses mineral content, it adds value to the land.

Dc Facwett Real Estate formula 4

  • Location and furnishing

The location is one of the striking factors; the property value depends on the area in which you purchase the property. So having a land in the heart of the city with all basic facilities in the surrounding will attract the buyers. The value can be further increased if your property is renovated and furnished at proper intervals.
Dc Facwett Real Estate formula 5

  • Commercial investment and lease

Investing on commercial property fetches more profit than any other type of investment. Many startups and organizations are in need of space, giving out for lease will gain you profit steadily.

  • Types of income

Renting is the easiest way to gain profit but you can be a way ahead by splitting the apartment into different rooms which can fetch you more rent.

  • REIT and MIC

REIT and MIC are firms which owns, manage and represent real estate market. REIT provide source of income to commercial property owners whereas MIC acts as the source of funding for mortgage.

Dc Facwett Real Estate formula 6

  • Under market value

Investing in properties having under market value can earn you good gains in addition to that if you possess negotiation skills.

  • House flipping

House flipping may either hit or flop , refer DC Fawcett blog to know more about house flipping strategies on virtual wholesaling.

  • Fore closured areas

Lenders may sell the non-performing notes (fore closured properties) to investors at discount rate, but it involves lot of risk. You can proceed if you are confident in paying the debt, title fee etc and make the property free from fore closure which the borrower failed to.

  • Wholesaling

Find an undervalued home under contract; assign a buyer who has to find another buyer who is willing to pay more than the (undervalued) price which is almost similar to the job of a real estate agent.

  • Real estate brokerage

This is for real estate agents who want to level up in his career. You can become a broker and      appoint few agents under you in which half of the commission is all yours. You can also run property Management Company, buying a vacation property, becoming a home inspector, investing in short sales.

DC Fawcett Real Estate – Tips On Saving Money For A House

Purchasing a property is not an easy task; it requires lot of time and huge amount of savings. DC Fawcett Real Estate reviews on how to save money in order to purchase a property. They are as follows.

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  • Mortgage

Mortgage plays a vital role while saving money for your house. The investor must know how much he/she can afford before applying loan. In order to make accurate calculations, investors can approach tax advisors.

  • Credit points and other payments

If the credit points are high, interest rates will be low. Down payments are essential since 20% of the deposit should be paid to the lender by the borrower, failing to do so, he /she will be asked to pay private mortgage insurance (PMI). Along with the down payments, the closing cost and title fees requires huge amount of savings. Hence, the purchaser must start allocating money for these payments before buying a house.

Dc Facwett Real Estate formula 8

  • Monthly savings

Cultivate the habit of maintaining monthly budget; make a note of trivial expenses and cut down on unwanted expenses that are pushing forward the dreams of buying a house. Try to save on your electricity bills, restaurant bills, vacation and other leisure activities.

  • Creating account for savings

Maintain a separate account in your bank for saving money for the house. This will help you to track down how much you need more. Also don’t use any money for your personal purpose or emergency. While you are saving money for your down payment and closing cost, the capital can fetch you good amount of interest which is sufficient for future to make repair work etc. you can also make savings automatic by contacting your payroll department to make fixed deposit every payday. In case, you get any bonus, don’t spend instead transfer to this special savings account so the dreams of purchasing a house becomes easier.

Dc Facwett Real Estate formula 9

  • Rental saving

In case you live in a rented 2 or 3 bedroom apartment which cost you more and you feel luxurious for a small family, try to move to a smaller house which will help you to reduce your rental expenses.

  • Working in part time

In case you have more idle time, you can work overtime or join part time jobs which will fetch you more money.

While saving money, make sure you prevent from scam going around.

  • Credit card scam: Scammers obtain your credit card information by installing spyware and other methods.

  • Fake loan scam: Amount deposited with low interest rate

  • Phishing: This scam is very tough to even find out since they make use of official logos and create havoc to your bank account, send emails to your official mail address.

    Dc Facwett Real Estate formula 10

DC Fawcett Reviews – Overview on risks of overpricing Method

To earn profit in a short span of time, overpricing is not a good strategy in real estate. Every seller should set the right price as every property falls into a particular market value range. If sold at right price, the buyers will make an offer else it will remain in the market unsold for long period of time.

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Dc Fawcett Reviews – The risks of overpricing a property which is as follows

  • Buyers lose interest on your property since they can judge that property has been overpriced as investors can make use of real estate blogs to know about the ongoing scenario and trends in the market. In return, you get a low offer for an overpriced property and you also eliminate the buyers who might be interested on your property.

    Dc Facwett Real Estate formula 11

  • Real estate agents are the first one to get price listing right after the property is on sale. Once he makes a realistic pricing, he will not offer you a deal with lower price, similarly if he overprice, it is clear that the buyer must ask a drop in the price. Negotiations are must when you deal with a real estate agent in order to save money from your pocket. Since the agents know about the property value, it is the buyer duty to make a proper assessment before purchasing a property. Many agents give an inflated estimation to the buyers; make sure you appoint ethical agents who can give the best estimates.

  • Listing services provide information about how long the property is on sale, if buyers notice that the property is unsold for long period of time, it creates a suspicion that something is wrong.

    Dc Facwett Real Estate formula 12

  • The price is determined finally by the seller, so the real estate agent or the purchaser cannot determine it. The returns don’t have any impact on market value. The market value is chosen to be the price the purchaser is willing to pay.

  • Overpricing creates an illusion that market is down, so they have overpriced it to earn huge profit.
  • It is must that the property should not be priced more than 20% of the selling price. Purchasers can research and make comparisons before they make an offer considering the factors like resale value, accommodation features.

  • Beware and not bargain, as buyers may turn down your offer. If the house is unsold for a long time, cleanliness and maintenance takes a backseat.

  • The seller must keep in mind that the buyers not only have a look on his/her property alone, he visits several other properties and can judge if it’s priced rightly or overpriced.

    Dc Facwett Real Estate formula 13

  • New laws have been enacted that if a property is overpriced; it will neither appreciate in its value nor will be eligible for loan.

Conclusion:

Dc Facwett Real Estate formula 16

Overpricing is considered to be a scam actually as realtors aren’t supposed to price their property more than the market value. In case you are looking out for a property and want to have an idea about pricing, DC Fawcett, founder of the virtual real estate investing club has written blogs on overpricing, investors can have a look at it before purchasing a property.

To know more about Net operating income, visit DC Fawcett virtual real estate investing club where several blogs has been written for the new investors. Virtual wholesaling is also recommended for new investors as it doesn’t involve money and no risk involved.

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