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RICHARD J BENEDETTO
800 Fairmount Ave, W.E.

Jamestown NY 14701

 Cell: (716) 665-9403
 Office: (716) 484-2020 Ext. 203
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Home Buying 101

The Basics of Buying Investment Properties

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

Everyone wants a magic and immediate path to wealth. The bad news? The path doesn’t exist. Wealth is attainable through more conventional means. If you come to understand the real estate industry and if you deepen your own firsthand experience as you buy and sell investment properties, you’ll be on the road to success.

Along the road, there are six core principles that will make or break each real estate investment deal. They are the most important concepts you will learn. I call them the Big Six. With each successive deal I negotiated, I grew to recognize the common elements. The Big Six are part of a sequenced step-by-step formula that enables you to identify and purchase the right income property at the right price.

The elements of the Big Six Formula that will guide you into the basics of buying income properties are the following:

Location
Location is the single most important component of any real estate deal. It is crucial in determining your investment success. Look for properties that are situated in an “A” location. Such locations include the socioeconomic levels of the people who live or work in a particular neighborhood, its proximity to shopping centers, public transportation, crime levels, the nearness of prestigious universities and medical facilities, traffic congestion, zoning restrictions, the quality of schools, fire and police protection, and even the reputation of the local government and its officials.

Building Quality and Design Efficiency
Design efficiency interfaces with building quality. When you find an investment property you’d like to buy, you will need to scrutinize both elements. Look for properties that far exceed minimum construction requirements and that have useful and innovative design elements. This will not only make the property attractive to tenants but will add value to the property in the future. Design features on apartment complexes that stand the test of time include walk-in closets, large kitchens with windows, and his-and-her bathrooms. In an office building, a common area factor of 15 percent is desirable as well as a ratio of four parking spaces for every 1,000 square feet of rentable space.

Tenant Profile
Tenants can represent either an asset or a liability in an investment. When you invest, your mission is to make sure your tenant profile is the former and not the latter. Just as you want a well-constructed and well-designed property, you’ll want stable tenants who are a good match for your property and have appropriate lease agreements. Find out how much rent is generated and whether it is at market rate or under market. You want to focus on finding an income property that offers the opportunity to increase rental income and, by doing so, multiply the value of the property so that you can resell it at a substantial profit.

Upside
This fourth element refers to the cash flow growth possibilities offered by a particular property along with the likelihood that the property will increase in value. A property may cost $1,500,000 to construct, but if it brings in only the income of a $900,000 property, then it is worth only $900,000.  The key to increasing value lies in buying a solid Class B property in an “A” location where the rents are under the market, the leases are short term, and there are no options to renew the leases.

Financing
In the musical Cabaret, there is a song with the lyrics “Money makes the world go around.” It could just as easily be used to describe real estate’s role in the economic landscape. The free flow of money and access to credit is what adds vibrancy to property investment. Before you get started, you’ll need to get a number of finance-related items in order. The first thing you should do before applying for a mortgage loan is to review your credit reports and your credit scores. Also, learn the terms, understand the components of a mortgage and how they interact, and be open to the full range of financing options available. Banks and other financial institutions make money from mortgages. They are willing to negotiate. Be creative—you may be surprised at the terms you’re able to obtain from a bank or insurance companies, especially in today’s low interest rate environment.

Price
The successful evaluation of a property’s price has to do with how much information you can gather about a seller and the property than it does about the price tag on the real estate deal. You must look at the value of the property, which is not the same thing as its price. The crucial concern is not just how much the property costs, but what kind of income it can generate for you. A property may be architecturally perfect and engineeringly sound, but if you’re locked into long-term, under-market lease rates, the value will be eroded.

If you master these principles, wealth will be within reach. However, it’s not enough to just understand and utilize the Big Six. You must execute them in order. That’s because they all fit together snugly to form your customized real estate formula.

Author Kenneth D. Rosen, CCIM, is a real estate investor and the president of Kendar Realty, Inc.

Investing in Income Properties, The Big Six Formula for Achieving Wealth in Real Estate, Second Edition is currently available at InvestingInIncomeProperties.com in both hard back and digital versions. It is also available on Amazon and at Barnes and Noble.

This article is intended for informational purposes only and should not be construed as professional advice. The opinions expressed in this article are those of the author and do not necessarily reflect the position of RISMedia.

For the latest real estate news and trends, bookmark RISMedia.com.

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Easy Tips to Stage Your Home With Toddlers Around

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

Selling your home can be an exhausting, overwhelming process, and it is even more so when you have toddlers in the house. Ideally, your home will look as close to a model home as possible and will be in pristine condition when buyers tour the home; however, as a parent, you may understand the need to have toys and games available for the kids.

You may want the home environment to be comfortable for your family, and you may also have concerns about keeping your home in pristine condition when your little ones are constantly making messes in various areas of the house. While staging a home with kids in the house can be challenging, you can accomplish your goals more easily by following these tips.

Think About Hidden Storage Areas
As soon as you first learn you are expecting a child, you may begin gathering toys, clothes, gear, furnishings and more. Your house may now be filled with their items, as well as their artwork, projects and more. Your kids will continue to need access to these items on a daily basis, but you must find a way to conceal them during showings. After all, a primary goal of staging is for buyers to see themselves living in the home, rather than to see signs of your family life all around.

Consider clearing out closets and cabinets with unnecessary items so that the kids’ items can easily be stored in them. Use storage bins with a lid that you can easily pull out of the closet or cabinet as needed. When a buyer opens up closet or cabinet doors during a home tour, they will only see the neat organization of storage bins. As a side benefit, this will make it easier for you to move out of the home, as well.

Re-Decorate Bedrooms and Playrooms
Your kids’ rooms may be painted pink, blue or other bold shades. These may be cute for your kids, but they are often undesirable for most buyers. Buyers will see these walls as a to-do project, and they may even have trouble envisioning their family living in the space. It is best to re-paint these rooms a neutral shade before you list the home.

You should also focus on the playroom. Store away most, or all, of your kids’ toys. Bring a couch, a TV or other items into this space to make it less age-specific. This can broaden the appeal of your home.

Create a Routine to Follow Before Tours
Some sellers can easily run out the door at a moment’s notice when an interested buyer wishes to tour the home. In most cases, these are single adults or couples who do not have kids and who are able to keep their home perfectly clean on a regular basis when listing their home. For parents with young kids in the house, you may need to sweep, mop and vacuum before a house tour.

You may also need to put the kids’ toys back in their storage bins, ensure there are no messes in the bathroom, wipe down the counters, empty dirty diapers from the diaper pail and more. It is wise to create a checklist of items that you need to do before each home tour. In addition, tell your agent that you need a notice of at least two hours before a tour to ensure that your home is ready to show.

Selling your current home and moving into a new home can provide you with great benefits. For example, you may have plans to move into a larger home, a more desirable neighborhood, a more affordable home or something else; however, before you can move forward with your relocation plans, you must find a buyer for your home. These simple staging tips can make the sales process much easier for you and your family.

For the latest real estate news and trends, bookmark RISMedia.com.

The post Easy Tips to Stage Your Home With Toddlers Around appeared first on RISMedia.

6 Easy DIY Projects That Will Boost Your Home’s Value

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

Your house is likely to be the biggest investment you make in your entire life. Whether you’re planning to sell it or you’re there for the long haul, it is important to take care of your investment. As any real estate agent will tell you, the first thing people notice about your home is the exterior. You need strong curb appeal to make a good first impression.

With that in mind, here are six simple DIY projects to help boost your home’s value:

Invest in Your Landscaping
Landscaping is often regarded as one of the top three ways to add value to your home in terms of return on investment. HomeGain.com conducted a survey of 2,000 brokers in 2007. The results indicated you could possibly quadruple an investment of $400-$500 on well-planned landscaping.

That said, just throwing a couple hundred dollars at plants is not a good approach. Instead, focus on creating a healthy, vibrant lawn. Fill in dead or sparse areas, fertilize, and clean up edges along your sidewalk, pathways and gardens. Trim overgrown bushes and shrubberies and cut down tangled tree branches. Plant flowers and plants to brighten up your landscape—just be sure to plant perennials that will come back year after year, not annuals that will die within a year and never return. Also, look for plants that are native to your region or are drought-tolerant. They need less water and maintenance, saving you money in the long run.

Upgrade Your Front Door
Your front door is the entryway to your home and it sets the tone for the rest of the house. Make a good impression by ensuring your home’s entry point (including the area directly surrounding the door) is attractive and eye-catching.

The first thing to consider here is whether to replace your existing door or not. If the door you have is good quality and a style you like, you can save some money by just freshening it up a bit. Refinish the wood or paint it for a pop of color; clean and polish the hardware or replace it with something that will add more of an accent; and replace the hinges if they are worn. If you decide to replace the door, look for a well-insulated, energy-efficient, secure door; this is not something you want to cut corners on by going with a cheap alternative.

Illuminate With Outdoor Lighting
Outdoor/exterior lighting adds value to your home in three important ways. First, it helps keep you and your family safe. It’s important to be able to see where you are going to avoid a fall. Second, it adds a layer of security. Keeping your property well-lit is a good way to deter a would-be thief from targeting your home. Third, it enhances the aesthetics of your property. Show off your beautiful home and well-maintained landscape.

Consider which of these aspects are important to you. If safety is your goal, focus on pathways, entryways and steps. If you are more concerned with security, perimeter lighting set on timers and motion-activated flood lights are your best bet. If you want to add curb appeal, light up your trees, unique landscape elements, and water features.

The second thing to consider is what type of lighting to go with. Solar is great because you don’t need wiring and don’t have to pay for power. LED lights produce a bright, crisp light and are energy-efficient. Halogen lighting, though affordable, is being phased out for the most part. Consider replacing existing halogen bulbs with LED replacements (also called LED retrofitting).

Discover the Magic of Pressure Washing
You see your home every day, so you might not notice as it slowly gets dirty and the colors and features become dusty and dim. Just spending an afternoon with the power washer can dramatically add some pop and resuscitate your curb appeal.

First and foremost, read the instructions and specifications of the pressure washer you purchased or rented. Check the water flow in gallons per minute in addition to the PSI, and get one with different pressure settings if possible. Confirm it is okay to use on all the areas you are planning to wash to ensure nothing will be damaged. You’ll probably be okay on things like sidewalks and driveways, but double check that your siding and windows can withstand the pressure. Turn off power to electrical outlets and fixtures and cover them. You may also want to cover plants and flowers if they are close to your house or the area you’ll be cleaning. You’ll likely want to use detergent (only use detergent that is specifically made for pressure washers) for the grimier parts of the job.

Create a Beautiful, Functional Space With a Fire Pit
Adding a fire pit is a cheap, simple way to help get the most out of your outdoor space by breaking it up into different areas. Fire pits consistently poll well among potential homebuyers (especially younger ones), and came in first in expected popularity of design elements, according to the Residential Landscape Architecture Trends Survey. One of the great things about taking on this project is that it can be as simple or as grand as you like. You could DIY a very basic one for as little as $150, or you could go all out and include a gas line (with professional help) and a fancy fixture if you have a bigger budget at your disposal. If you are not as handy, you can get a kit with everything you need and step-by-step instructions. However, building your own fire pit is not overly complicated and will allow you to completely customize it to fit your personal taste.

Upgrade Your Home’s Technology
These days, homebuyers want the latest technology. It’s easy to understand why when you look at all the amazing things technology can do for your household. Having these advanced features can be what sets your home apart from similar ones on the market.

You can install smart locks for added safety and convenience. You’ll never have to stumble around trying to get your keys out of your pocket while carrying groceries again, thanks to Bluetooth technology that will pick up on your phone approaching—and you’ll never stress again wondering if you forgot to lock the door when you rushed out. Smart sprinklers can save time and money. The sprinkler system can adjust based on weather patterns and temperature so you’ll save money by not wasting water.

These are all projects that offer a good return on your investment and can be done without a professional, saving you around 40-60 percent of what you might be charged. Plus, these projects can be wrapped up within a couple days, meaning you could conquer them over the course of a weekend or two. Get out there and start building some sweat equity the smart way!

For the latest real estate news and trends, bookmark RISMedia.com.

The post 6 Easy DIY Projects That Will Boost Your Home’s Value appeared first on RISMedia.

© 2017 Chautauqua County Board of Realtors All rights reserved. Information deemed to be reliable but not guaranteed. The data relating to real estate for sale on this website comes in part from the Broker Reciprocity Program. Real estate listings held by brokerage firms other than Real Estate Advantage are marked with the BR logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Information last updated on 2017-06-25.

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