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Buying real estate can be a great investment if you are looking to create long term, sustainable profits. It can also be one of the biggest moments in your life if you are just buying a single home, as a home not only provides you with a lifetime of memories, but it can be the biggest single investment and piece of collateral that you own in your entire life. You buy real estate in the hope of making substantial gains or securing your future and the future of your children if you are looking to pass down real estate to them.

But estate law is perhaps the most needlessly complex and tedious of all laws. This is largely because of its wording, which most people don’t fully understand because of the legal jargon, as well as contracts being intentionally vague. The result is people getting conned or buying properties that end up being financial liabilities.

It’s All in the Details When it Comes to Real Estate

Buying is not the only major concern in regards to the complexity of real estate law, as the fields of management, repair and foreclosure all fall under the expansive and complicated world of real estate law. Foreclosures in particular are difficult to deal with for a number of reasons. Firstly, they bring significant hardships on families, in terms of financial, emotional and personal anguish. Secondly, zoning and housing regulations can change fairly regularly, which can result in costly penalties and unnecessary fees whether you are buying, selling, or own a house. The difficulty of this subject is only exacerbated by the fact that housing and zoning codes can be influenced by neighborhoods, counties, states and even federal matters. The end result is a myriad of legal issues that will leave you burned out and frustrated.

All of these reasons should encourage you to do two things. The first of them is to take your time, regardless of whether you are selling or buying. Knowing the market is incredibly important. If the market is bad, you should look more into buying, rather than selling, and if the market is good, you should look more into selling. If you sell or buy at the wrong time, you can end up costing yourself a small fortune!

The second and by far the more important thing to consider, is looking into hiring the services of a firm. Given the complexity of the legal codes, and the volatility of the market, you are going to want an expert assisting you every step of the way. They can assist you in all matters ranging from codes and regulations, buying, selling, and even in the unfortunate event of having to foreclose on your home.

Real estate firms are the unquestioned masters of their craft, and if you make the decision to pay for their services in the short term, you are likely to end up saving a tremendous amount of money in the long term. So if you are looking to buy or sell real estate, contact your local law firm today!

The Conundrum of Investment Properties

Investors seeking diversification have frequently turned to a rental property or a collection of rental properties to even out and spread risk across their investment portfolios. As with any investment people should consider all of the issues, problems, and pitfalls along with the potential returns. Unfortunately, a lot of investors aren’t aware of the potential problems and do not take the time to investigate these issues before they close escrow. A property management course and a course in basic real estate investment would be great investments of time for someone considering rental properties as a source of investment income and long-term investment. Some of the problems and concerns are discussed below.

Inexperienced Agents and Uneducated Investors Make a Deadly Concoction

Rental property investors often utilize the services of an unseasoned realtor who does not fully understand rental properties, who does not fully understand return on investment, and who does not fully comprehend what cap rates are. Most of the time these investors just turn to their friend ‘the realtor’ or use any realtor they are familiar with or are comfortable with to purchase these types of properties sad as that may sound.

The fact is most real estate agents are not savvy enough to understand rental properties, cap rates, return on cash, return on investment, leveraged investing, and the common terms associated with investment properties. To compound this fact most investors initially are equally inexperienced and lack the proper expertise to locate and purchase a high performance investment property. No one needs to look further than this question: Why would an owner be selling a high performance investment property? That question should be the first of many asked by both the agent and the investor. One problem is that some investors are just so excited to get into a property they look beyond the truth and the numbers and just want to get control of the property. Oftentimes this is a flawed approach because most agents will hesitate to stop the eager purchaser for fear of missing out on a healthy commission.

The Property Management Profession is an Equalizer

After an investor has closed escrow, if the inexperience agent hasn’t offered to ‘manage’ the property for them, many of them decide to manage the property themselves (only licensed real estate brokers can manage rental properties). When these unsuspecting owners are faced with the subtleties of Fair Housing laws, Equal Opportunity issues, civil rights issues, anti-discrimination issues, bad tenant screening issues, notice of default issues, eviction issues, and finally collection issues many times they turn to a professional property manager or property management company to help rescue their sinking ship.

If rescued timely a professional property manager can turn around an investment property and help make the investor’s decision pay dividends. With a competent property manager the return on investment can actually be realized and the owner actually can have time to enjoy the investment, not dote on it or worry about it. The property management company will take care of the investment, the maintenance, the tenants and all of the concomitant issues associated with the property.

Property Management Education Course

Educating both inexperienced real estate agents and beginner investment property owners about prudent property management is critical for maximizing the investor’s return on investment. It is rare for an owner to successfully manage their property or properties and make the maximum possible return available in that particular marketplace. The reason it is rare is because the typical manager-owner is not utilizing the latest and greatest property management techniques, software, screening procedures, and most importantly is not keeping up with the ever changing landlord-tenant laws. Each January there are several seemingly ever increasingly tenant-debtor favored laws enacted which most people are not aware of. When a new law takes effect that is another potential pitfall for the lone-ranger owner to violate and end up on the wrong side of the complaint.

The sure-fire way around this potential issue is to hire a property management company to manage and protect the owner’s investment, and most importantly maximize the return on investment. One other way around this problem is to have every owner take a property management course and learn the profession from the ground up without going through the hard knocks of experiencing tenant problems first hand.

Finally, an owner could hire a property management company that in addition to all of the typical staff also has a real estate lawyer on staff who can solve and answer all of the legal questions that seemingly end up front and center. This would be a truly educated decision and an easy one for the owner to make.