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Dc Fawcett Real Estate – Deposit on home purchase – The ABC’s

Deposit on home purchase – The ABC’sIntroduction

You may think that buying your dream property is as ideal as signing a contract along with the owner and eventually giving the down payment. But the actual scenario is that you have to prove that there is “earnestness” attached to the buying of the property. Well what is the earnest money deposit?

This deposit is a portion of the down payment. This shows the buyer’s interest to implement the agreements that is set forth in the contract. An escrow account will take care of the deposit. This escrow is a form of trust fund that is managed by both the parties and has effect till you close the transaction.

Now let’s see some of the important aspects of an earnest deposit:

  • As soon as the purchase agreement is signed the buyer and seller will make deposit payment. This check or money order is then kept aside in an escrow which is maintained by the specific real estate brokerage. There are strict laws from the state regarding the dealing of these monies. It should be made clear that this money should never go in the hands of a broker through his business bank account.
  • Just as you are careful in getting a receipt for any financial transaction it is essential to ask for a receipt, for the earnest deposit which would be provided to the real estate agent.
  • With regard to the question of how much earnest amount one should pay, it has lot of variations. Having said that, different states have their legal limits for the earnest money. In case of a purchaser who can pay only less down payment he has to spend lot of earnest deposit. This is as a surety that he or she will get through a mortgage.
  • Generally the experts feel that the earnest money can be somewhere between 2% to 5%. This percentage is calculated from the purchase price. But again the actual money depends on the thriving of the market.
  • In case the purchasers decide on paying a large chunk as earnest deposit the lender will be interested to confirm the source of these monies.
  • One important thing to be kept in mind is that the earnest deposit is not in any way an additional expenditure of purchasing a property. At the time of closing the deal it will be added with the down payment.
  • Earnest deposits aren’t simply some random money paid. These sums enunciate the earnestness of the buyer and show that they are capable of carrying out their promises as per the purchase agreement. The real estate transaction conveniently commences with the earnest deposits that safeguards the seller in case the purchaser gives problems in the specific deal.
  • You would be investing some money in your bank account. Similarly an earnest deposit will provide you with interest through its escrow.

Conclusion

Dc Fawcett, the real estate expert, and also the founder of the Virtual Real Estate Investing Club, is well-equipped in the real estate scenario and assists people develop their real estate investing business.

 

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Making a profit via sale of investment property – DC Fawcett

Making-a-profit-via-sale-of-investment-property

Property is by no means a trivial investment. Every step you consider pertaining to your portfolio should adhere to the comprehensive goal of the portfolio. If you mission is to gain money, selling off an investment property is reasonable.

Selling off your investment property is not as easy as selling a stock. When you are in the process of selling your own home it can be daunting when you are not aware of where to commence. In fact selling off an investment property is also par to the process of selling off your home. The capital issues as well as the tax implications add more difficulties to the sale.

Investment Property

Now let’s see some of the factors that are important so that you can make a profit out of your sale of investment property:

  • You will first list your property for sale. Here then, confirm whether you have looked up all the possibilities so that it makes a good sale. You may be having different reasons to part off you with property but be cognizant of the tax concerns which will eventually burn some extent of your income.
  • Real estate investors are those who are mainly interested in investment properties as far as promotion concerned. But this doesn’t mean that the other types of purchasers are not interested in your property. Your property might have given use to you to give you a stable profit. This would have been done through rent. But again there are different types of purchasers too who would be the target of the deal.
  • A real estate agent comes to the aid of you and will help you in expanding the options as far as promoting your house for sale is concerned. By this you have keen interest in the property and get in a substantial deal.
  • When you possess investment property, capital gains is one of the many major benefits. What is its main benefit? These gains are taxed at a lesser rate and there are no fixed limitations on the frequency of utilizing these rates. At the time of selling your investment property you will have the responsibility to pay a capital gain tax. You would be paying a tax when your primary property is being sold off. The capital gains tax is in fact more than this tax.
  • You can avoid expending money on capital gains on the income generated from the sale of your investment. This is done by using the escrow which is utilized straightaway to buy another investment property. There is a section IRS 1031 which gives the benefit of this tax deferral.
  • For instance you have taken the help of property managers to assist you in dealing with your portfolio of income-generating properties. Here then you can use incorporation to get the benefit of more advantageous tax rules. But again if the investment property falls under your corporation your means of monthly income will not be simple.
  • While selling off your investment property if you do it at the right time and with appropriate methods, you would surely get a substantial profit.

Conclusion

Dc Fawcett, the real estate expert and founder of the Virtual Real Estate Investing Club, has rich experience in virtual real estate investing deals. One can watch his free videos to get more idea of real estate deals.

 

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Advantages of hiring custom home builders to raise luxury home – DC Fawcett

Advantages of hiring custom home builders to raise luxury homeThere are many advantages in hiring a custom home builder.  The most important fact is that people can acquire what they desire, the way they want it to be.

There is no requirement to venture out in the neighborhood with a real estate agent by the side, browsing home after home, desiring to locate the vicinity what the buyers require – the exact layout, a very alluring design, the wonderful look and feel.  That particular method may be very cumbersome.  The other choice is to hire builders of custom home to construct what one exactly requires.

Some construction companies look into the development of luxury real estate and custom homes.  They create many great buildings in the vicinity of Miami and it is spread across the entire region.

The main advantages of hiring professional builders:

  1. Custom design

In fact, the most accredited advantage of a custom-built home is that the owners obtain what they exactly require.  They opt for a floor plan and customize it to their personal choices.

There are a wide variety of options to choose from – hardwood floors, granite countertops, tile, and the marble. The client has the accessibility to select the color and style of the carpets, walls, cabinets and shelves. There is no need to worry about where the outlets are situated.  One can choose the styles of doorknobs, windows and fixing of the lights.  The entire process can be very alluring and it is of course a fun.

  1. Getting to acquire what one requires

Another main advantage of custom building is that the homeowners retain most of their finances.  No requirement to put in money for the wasted rooms, unused space or spending for the aspects of property that one does not desire.  Within the stipulated budget, they obtain the most from their luxury home.

  1. No requirement to pay for remodeling:

By raising a custom home, the homeowners select choices that might not be available otherwise.  Maybe, they require an office above the garage, or they would like to add four feet to the desired bedroom or have an additional bathroom.

Particularly, these are decisions to be made during the phase of design, so there is no requirement for difficult or exorbitant changes.  Possible buyers do not require skimming through the real estate market, browsing for a home that adheres to unusual needs or preferences.

There are few other reasons why people choose custom home builders.

  1. People opt for custom homes since they are cost-effective and economic than the other builders.

  2. When a custom home builder is employed, the homeowner gets an opportunity to take charge of how their home would appear like. Then, the home can become a direct reflection that the owner makes.

  3. When one works with a custom home builder, the home that is raised can be above par and unique.

  4. It also assists the homeowner to select the quality of materials they require to use for the home. The custom home builders assure that the residence is raised and designed to meet the minutest information.

 

The above listed are few of the advantages that are provided to an individual who requires a custom home builder.

 

Dc Fawcett, as the founder of the Virtual Real Estate Investing Club, offers a number of solutions with regard to raising a custom home.  One may go through his blogs to get a better idea regarding the real estate scenario.

 

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