Renting an Affordable Furnished Apartment

Are you among those whose job requirements demand working at far-away places? If so, then this article has something interesting for you which would not only save you a lot of money in transporting your household items but would also avoid the botheration of making security arrangements of your house.

The good news is that you do not have to invest your hard earned money in purchasing new accommodation for your living but you can now rent a furnished apartment at affordable rates. Real estate market is flooded with options of single or multiple bedrooms, you just need to list down your requirements to find an appropriate apartment for you and your family.

Renting a furnished apartment not only eliminates the need of transporting the bulky furniture but also eliminates the need of arranging the old furniture into a new apartment. Moreover, you will have no worries for making security arrangements of your apartment and belongings since proper door locks and alarms are already fitted in those apartments to protect you and your family.

Apartment authorities also take care of plumbing and electrical faults that are not only time-consuming but also strains your monthly budgets. So, now you can enjoy the benefits that an apartment authority offers to all the tenants. Use the internet to search the right apartment for you to make the stay comfortable and pleasurable.

You must think twice before making an investment in acquiring an apartment when affordable furnished apartments are available on rent.

Hurry up! It’s the right time to make the decision!

Mending the Broken Family Unit

Mending the broken family unit begins with just one person. It may be you especially if you have been the rock of the family so far. You may be the mediator of the household. If so then you need to make use of this role, and instead of using it to smooth things over use it to assess and rectify the problems that are ripping your family apart. Start with dealing with each of the family members individually. Talk to them to find out what is bothering them, why they are doing the things they are doing that is upsetting the other family members. Even if they can’t provide the answer right now determine if they are willing to help put the family back together again. You need to do this with everyone that lives within your home.

The next thing to keep in mind is to take small steps. What may have started out as a very small incident a long time ago that was left to fester could be the root cause of all the damage that has been done to your family. You need to work both ends against the middle here. You need to go back and mend the gap that first started to ruin your family, and at the same time you need to begin to undo the damage that is taking place now as a result of it.

This is no easy task and the biggest mistake would be to believe that just because everyone has come to the agreement that they want to pull the family together again that you will all live happily ever after. There is a lot of hard work ahead of every person in the family.

A mistake that you don’t want to make is to forget about yourself either. You are part of the family, and even if the relationship strengthens amongst the rest you have been wounded along the way, but just too busy to deal with it. You must include yourself in this healing process as well.

Mending the family is like trying to put together a huge puzzle. Each piece interlocks and its just a matter of finding the right pieces and where they fit. Think about it though, if you have ever put a puzzle together how did you begin? First you laid out all the pieces so you know what you had to deal with. Then you grouped the pieces together that were similar. By identifying all the issues in the family you are laying out the pieces. Then by putting these issues into categories you are grouping them. Then the next step in the puzzle is to do the outside frame. In your family the framework is built around calling a truce while you work on fitting the pieces together.

How To Determine What Is Destroying Your Family

If you are living in a unsettled household eventually you are going to come to the realization that you have to change things. It may be the point in time where you are contemplating leaving your partner, because things have become so bad that being on your own with the kids couldn’t get any worse. It is the present situation that is driving you to these thoughts but the current situation is not the beginning of the destruction to your family although it may be the end.

If you have any hopes of salvaging the family unit you must find the cause of all the problems. No doubt they have been going on for some time and have just been mounting up. Its almost like an argument that goes on for so long that in the end both parties forgot about the real reason they were fighting to begin with.

There is no way you can fix the problem if the cause of the problem still exists. For example, lets say for a period of time you found your husband just didn’t seem to be the same anymore, and eventually you found out he was having an affair. He ended it but it really hasn’t changed the family atmosphere much. There are many different scenarios that could be taking place here. Did your husband give up the other woman because he truly wanted to make his marriage work? What were the factors present that caused him to start seeking out attention from another woman to begin with? Were these issues that were dealt with at the time the agreement was made between you two to patch things up? Did you come up with any solutions to help to prevent it from happening again? Or did nothing change and your husband has remained in the home out of remorse and guilt and for the sake of the kids. Many times in a cases like this all you have done is put a band aid on the marriage wounds.

Problems that occurred five or ten years ago and were swept under the carpet could still be tearing your family apart. If you have young teens they may not be aware of what happened all those years back and are totally confused and lost as to what is happening in their home.

You need to first assess how much damage has been done, then determine ways to fix it, then put damage control in place along with prevention.

Closing Costs When Buying a Multi-Family Apartment Building

When buying a multi-family building as an investment property, closing costs can add up to a large amount, and thus should be calculated with careful attention since the investor needs to estimate if he has enough funds for the down payment and the closing costs prior to closing the deal.

It is also important to estimate how much cash is needed to put aside for the closing costs prior to closing since one of the bank’s conditions when approving a mortgage is making sure the buyer has enough funds for the down payment and closing costs together.

Appraisal Fee: This requirement is helping the bank to assess the market value of the property, so that it can estimate the LTV (loan-to-value). If the appraised value is $500,000 and the LTV is 80%, then the bank is willing to loan $400,000 out of the total assessed value. Appraisal fee is usually a must with insured mortgages, but for conventional mortgage, it can sometimes be waived at the discretion of the bank that provides the mortgage. Appraisal fee depends on the size of the multi-family buildings and other considerations. The appraisal directly correlates to the size of the building: the larger the building, the higher the appraisal’s fee.

Phase 1 Environmental Fee: Environmental analysis of the property and all surrounding uses or conditions to make sure the property and its surrounding aren’t contaminated from any past use of chemical, oil tanks and other hazards. Usually this fee is associated only with insured mortgages only and not with conventional ones.

Inspection Fee: Inspection fee includes careful inspection of each unit in the building to make sure there is no structural problem with any of the units and the building overall. Inspection should be done only by a professional, since missed issues by him can later on cost you a lot of money to repair. The more units to inspect, the higher the fee that is charged by the inspector.

Land Transfer Tax (LTT): This fee depends on the province the multi-family building is purchased in. Specifically, if the property was purchased in Toronto, the land transfer tax needs to include Ontario LTT and Toronto LTT.

Legal Fees & Title Search & Disbursements: Each transfer should be reviewed legally by a lawyer. A lawyer is in charge of completing the transfer of the deed, preparing the mortgage, and conducting various searches such as, title search.

Land Survey Fee or Title Insurance Fee: A recent survey of the property is usually a requirement of the lender. If non is available, then title insurance can replace it.

Mortgage Application and Processing Fees: This overall fee depends if the mortgage is insured or not. If the mortgage is insured, then the investor needs to pay both the insurance company (CMHC or GE) and the lender itself. CMHC charges processing fee and mortgage insurance premium depending on the amount being loaned and the amortization period. On top of that, each lender charges application fees as well. The lender’s application fee depends on the institution the money is being lent from.

Reserve Fund: Reserve fund should be added to the closing costs to make sure that in the first couple of years (before any cashflow has been accumulated) there is enough money to be spent in case “big item ticket/s” need/s to be fixed/replaced, such as leaked roof, furnace stopped working, etc.

It is very important that you search around for different professionals before deciding on which one to go with. Your considerations when choosing should include price, reputation, and efficiency.

In conclusion, the total amount spent on closing costs can start from 2.5% of the purchase price and go up to much higher amount depending on various factors, such as the amount put into the reserve fund, the province you choose to buy your investment property in, etc

How To Start Investing In Multi Family Apartment Houses

I’ve been asked many times what is best way to begin investing in commercial multi family real estate. To decide what is best for you you need to keep the following in mind: How much money do you have, your skill set, and of course your expected profits.

The task of a new real estate investor who wants to learn about multi family investing takes much time and involves developing new skills sets that can be prone to mistakes. This is probably why many people either fail to start, or fail to succeed. I have found that most people would rather be part of a multi family apartment house deal where they can learn about multi family ownership, and secondly also put money into an investment that gives them a fantastic return. I suggest that the best way for a new investor to succeed with the least risk, and best return is to piggy back on the experience of others investors who have already been successful

What is The First Step and How?

You should simply create a commercial multifamily investment fund and bring in experienced partners for a share of the profits! This is very simple to do. Now, before you solicit the first membership, you need to sit down with an SEC attorney and ask them to create an investment fund that allows for the collection of investment dollars for the purpose of acquiring multi family property. You do not even have to have had a property identified; just the purpose of the fund would have been established and documented.

Then you will open the fund to potential investors. Then anyone you speak to about the opportunity, you hand them an “accredited investor questionnaire” that they would have to sign. Once that is returned to you, then you give them an “Offering Memorandum” describing the fund and how it worked. There is one more important document to create and that is called a “Private Placement Memorandum” that will satisfy the SEC’s requirements of complete disclosure. Here’s the real catch, this is the one that would keep you out of jail.

All the funds you are going to collect should be held by an escrow agent. You should not take control of the funds personally and if an investor wanted their money back before you purchased a property, they would be entitled to because it was clearly stated in the Private Placement Memorandum that they could do that up to thirty days before the scheduled closing date of a property. So that’s all the legal stuff! You want to make sure this is in place before you even start to talk to investors.

What about buying the property?

The type of property that you are going to go after is to be clearly stipulated in your Private Placement Memorandum.. This is where it gets fun! I believe that with the impending commercial foreclosure crisis, you should be looking for either a B+ to an A class multi family property that can be purchased for pennies on the dollar. None of this no-money-down stuff. The number one criteria is that you are going to buy a great asset at a ridiculously low price from a bank who is desperate to get these non performing loans off their books.

Why would you be able to do this?

Because since you are shopping with cash; no schemes, no seller-carrybacks, just cold hard cash will give you the upperhand in negotiating. Here is how it works. Let’s say that 100 investors put up $35,000 apiece into the fund. When the fund closes, you can contact several lenders and say that you have $3,000,000 available to help their balance sheet and take some troubled assets off their books. The remaining $500,000 should be kept in reserve to run the property. I can assure you, there are many banks right now that have been told by the FDIC that they need to raise cash fast. These banks should be your first stop. Your objective should be to buy good property, property that you would want to live in yourself, fix the problems with it and then sell it and do it again. Every step of the way, the investors would be involved and would see how the process works and everyone gets paid accordingly to their proportional investment.

Real Estate Investing In Multi-Family Apartments

Some investors find investing in multi-family apartments rewarding as they yield more long-term returns. An average individual investor cannot invest in multi-family apartments by himself; they make use of specialized REIT’S to do it for them or form a partnership with an experienced associate as it takes up time and needs an experienced person to see to the due-diligence, to take control and manage the property wisely.

Tips on How to Invest In Multi-Family Apartments:

It is necessary to identify a stable, profitable multi-family apartment, have a good idea of the local market and the have the ability to estimate the land value as well as the building value properly.

It is essential to make a financial as well as marketing analysis of the property.

Present a well thought out irresistible offer to the seller once you have made sure the necessary finances are in order.

Proceed with the due diligence and not be satisfied until you have studied in detail every document relating to the building and the maintenance of its equipments etc. The title deeds, tax returns of last 3 years if possible, insurance policies, financial records, information of any existing liens, all leases and all contracts for equipment maintenance, parking lot contracts, all utility bills, fire systems, litigation history, tenant and associated problem records etc. will be appraised. Engineering inspection, environmental inspection etc. will be conducted on site.

Have an attorney study all the documents and explain them to you.

Once the due diligence matters have been cleared it is time to bargain for as low a price as possible and legally purchase the property if it suits your needs and seems a profitable venture.

Try, and get a triple net multi-family apartment, as it could be a hassle-free investment as the owner just has to receive monthly rental checks and does not have to worry about maintenance etc. as the tenants are in charge of that!

People like investing in multi-family apartments because of increased cash flow, competition is less, if indeed you are in charge of maintenance because of the big cash flow it will be easier to hire a manger to take care of the property and deal with its problems. Multi-family apartments are also in demand because the property appreciates better than a single-family property. Some creative real state investors make fortunes rehabbing run down condos and giving them a face-lift! Thus, multi-family apartments are ideal suited for those who have large sums of money on hand to buy and invest in high yielding properties. They should have the expertise to deal with tenants and collecting rents on time and know what action to take incase the tenant defaults on payments.

There are firms offering products as well as services to help run businesses successfully.

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Practical Guide in Multi-Family Apartment Investment

When you have reached the level of competency and confidence to handle multi-family property investment, it is best that you seriously consider this strategic investment shift. Seasoned real estate investors usually graduate to this type of investment option to improve their cash flow and earnings. This goes beyond the opportunity of receiving higher rental earnings as a result of a greater number of units for rent. The earning opportunity is associated to economies of scale. This means that with higher number of rental units in one location, there will be more opportunities to cut cost through several means.

• Savings in Repair and Maintenance

The unit cost for repair and maintenance can be significantly reduced in multi-family property investment whether you are contracting the volume work from a service provider or hiring your own in-house service personnel. If you will consider the savings that you generate over a period of time, the amount will definitely be very significant.

• Upgrades and Purchases

Whether it is brand new painting units or refrigerators, you can leverage for better deals and discounts from suppliers and dealers when you negotiate for volume purchases. The potential number of units to be purchased is one great equalizer for property investors to clinch good deals and substantial cutbacks on the purchase price. With this significant leverage, you achieve a certain degree of clout when dealing with dealers and suppliers of furnishings, appliances and other items that you will need in the operation and maintenance of your property.

• Property Insurance

Building apartment units is less expensive than building single detached homes. Thus, it is logical that the property insurance will also be lower for the former. In addition to this built-in advantage of apartment units, there is also that leverage of owners of multi-family property investment when negotiating for insurance. With apartments, you will only have one single policy to cover all the units of your apartment property. The significant reduction on the price of the property insurance is due to the distribution of the overhead cost to a greater number of units compared to individual single detached units where each will have to bear the brunt of the full amount of the overhead cost.

Financing Options for Apartment Property Investments

Capital requirement for a property investment of this scale is one of the major challenges. Property investors must really need to have deep pockets if they intend to enter into this kind of venture. Property construction is not easy and it requires substantial amount of capital. In most cases, not many people have this amount of money available to start such a big project. However, with proper planning and careful management of available finances, one can avail of financing to support multi-family property investment. Those who don’t have sufficient amount of capital can opt for multi-family property refinance loans.

You can check out potential financing programs for your property investment online. You can easily get a quote for a particular loan amount in addition to the details and terms of the financing programs on offer in these websites. This makes it easier for property investors to shop around and weigh their options without having to physically coordinate and consult with all these banks and mortgage companies. It also simplifies the process as you already have all the information that you need at your fingertips, and you can confidently make your decision and come up with your short list of choices or options.

Investing in multi-family apartment is not a piece of cake. It requires years of experience, training and sufficient amount of cash. However, with proper planning and support, you can enjoy better earning capacity and maximize the returns of your investment in real estate properties.

How To Determine What Is Destroying Your Family

If you are living in a unsettled household eventually you are going to come to the realization that you have to change things. It may be the point in time where you are contemplating leaving your partner, because things have become so bad that being on your own with the kids couldn’t get any worse. It is the present situation that is driving you to these thoughts but the current situation is not the beginning of the destruction to your family although it may be the end.

If you have any hopes of salvaging the family unit you must find the cause of all the problems. No doubt they have been going on for some time and have just been mounting up. Its almost like an argument that goes on for so long that in the end both parties forgot about the real reason they were fighting to begin with.

There is no way you can fix the problem if the cause of the problem still exists. For example, lets say for a period of time you found your husband just didn’t seem to be the same anymore, and eventually you found out he was having an affair. He ended it but it really hasn’t changed the family atmosphere much. There are many different scenarios that could be taking place here. Did your husband give up the other woman because he truly wanted to make his marriage work? What were the factors present that caused him to start seeking out attention from another woman to begin with? Were these issues that were dealt with at the time the agreement was made between you two to patch things up? Did you come up with any solutions to help to prevent it from happening again? Or did nothing change and your husband has remained in the home out of remorse and guilt and for the sake of the kids. Many times in a cases like this all you have done is put a band aid on the marriage wounds.

Problems that occurred five or ten years ago and were swept under the carpet could still be tearing your family apart. If you have young teens they may not be aware of what happened all those years back and are totally confused and lost as to what is happening in their home.

You need to first assess how much damage has been done, then determine ways to fix it, then put damage control in place along with prevention.

Apartment Buildings Investment – Make More Money During Inflation

Those in the field of real estate investment know that it is a wiser option to spend money for apartment buildings than buying houses. It is less risky, much easier, and more profitable. Owning a multi-family apartment is considered as a fabulous real estate investment idea today, especially when the world economy is going through a dreadful low-phase. When prices increase, people need more money. There need to be more choices for a long term financial security than stocks and bonds. Apartment buildings prove to be the right investment vehicle that offer a steady flow of cash even at the times of economic downturn.

A lot of facts go into making apartment buildings the most desired real estate investment option. First and foremost, the truth remains that even though the value of assets have gone down considerably low, rents are on the rise. In the view of the increasing rents, the decision to invest in multi-family apartment is sure to bring pots of money for the buyer. Another fact is that more and more people are forced to live in rental property as a result of mortgage and foreclosure issues; many consider living as renters a less expensive option. There is a great demand for rental property. It is expected to continue to rise in the coming years too. And, no one else can make more profit from this trend than the wise investor who has bought an apartment building.

There is an obvious benefit in buying an apartment building. The cash flow is quite stable for an apartment building owner. Even if one tenant fails to pay or leaves the apartment, there are many others who live there and pay on time. That is not the case with single family homes; if the tenant does not pay, that is the end of your profit. If the single family moves, the owner has to find another one to live there to continue to get rent. Though you may be dealing with many tenants in a multi-family property, it is good as it provides a steady income when compared to the uncertainty of cash flow with single tenants.

Again, rent is higher for single homes and many would prefer to rent a place which is cheaper like apartments. Maintenance cost is also less in the case of apartment buildings. Banks are willing to provide loans for buying apartment buildings. Most banks provide up to 80% of the price for buying multi-family properties. As you own more apartment buildings, your profit increases and it is also easier to pay off the mortgages. If the money you earn after paying monthly mortgage installments and operational costs is considerable, then be sure that you are in the right path of investment.

When you have bought a multi-family property, it is always better to get the services of a property management company to take care of the day-to-day issues of the tenants. This will give you more time to concentrate on your investment matters than worrying about managing your property and its residents.

How to Buy an Apartment Building and Create Wealth

With the real estate market in the unstable state that it is, investors need to look further than the tradition methods of gaining capitol. One of these investment opportunities that is little known, but is worth taking a second glance at is the purchase of a multi-family apartment building. Surprisingly, owning an apartment building doesn’t mean the tradition misconceptions of hounding tenants for rent, and spending weekends performing upkeep on the property. Owning an apartment building is great for novice investors, or those looking to diversify their portfolio.

With foreclosure rates at an all time high, financial connoisseurs are investing. Warren Buffet, one of the biggest names in investing prefers times like this when the real estate market is in an uproar. Like all things, the real estate market will inevitably turn around – and this is when the gurus look for investments, and find some of the best ones – when others aren’t looking!

Many people are making the transition into multi-family investing with the high foreclosure rate, and the high cost of owning a home. Savvy investors are taking advantage of this information. As prices decline in homes, multi-family prices continue to remain steady. There are always going to be people seeking shelter, it is a fact of life. Why not buy into an investment that can provide shelter to as many people as possible, creating larger value for the investor.

Rental property has never been at a higher demand. According to the most recent census more than a third of the country is residing in rented housing. This is thirty six million households choosing to rent, rather than own, in this uncertain time. 83% of those under 25 are currently renting their home. 55% of those over 25 are renting their home – and as well, growing numbers of senior citizens are choosing to rent their home. Demographics are on the side of the investor choosing to purchase a multi family apartment building.

Purchasing newly developed multi-family buildings may come at a high cost, but the rent will also be higher – this makes older apartment buildings more manageable, cheaper and more popular with those seeking ap lace to live. There are many ways that the investor can increase the value of the home – or raise rent to increase monthly cash flow. Contrary to popular belief, older buildings are indeed in competition with those newly developed buildings.

The banks are also on the side of investors that choose to use their money to purchase multi-family buildings. Lenders are willing to finance up to eighty percent of most multi-family properties. The bank will often make adjustments allowing the homeowner to put as little as ten percent down towards the cost of the apartment building. This is done by creating a second mortgage, allowing the owner flexibility within regards to payments.

Seeing as the bank will provide up to eighty percent of the purchase price, leverage becomes one of the main benefits to owning an apartment building. Purchasing a property for as little as ten percent down can increase your initial investment up to four times per year, if the apartment building gains value.

A multi-family property becomes an even more attractive investment option when the cash flow theory is introduced. Cash flow is the amount of money that is left over each month after the mortgage and operating expenses have been paid. Cash flow can be used in a high interest saving account, or can be used to pay down the mortgage increasing the equity within the investment.

If you are looking to expand your investment portfolio and you would like to learn more about the many benefits of an apartment building investment then I suggest that you read my free mini course on apartment building investments that can be found at Apartment Building Investor

If you are really serious about learning exactly how to find, buy and manage very profitable apartment buildings then you must enroll as a student in my Buy Your First Apartment Building E-Course