Saturday May 28, 2022

Is it a world of men?

Time and time again, we’ve all heard it before, the old saying, “It’s a man’s world.” But these days, you have to ask yourself the question, “Is it really still just a man’s world?” As the economy evolves and technology improves, so do the roles of women in the workforce and in business. Women are taking an increasingly active role in both their careers and finances. The number of women CEOs is constantly growing. Thirty percent of CEOs in nonprofit organizations are women, and there are a growing number of women CEOs in other fields, including health care, legal services, finance, and real estate.

Strong women are taking on a more dominant role in business, politics, and finance. The old cliché that it is a man’s world we live in will just be a memory sooner rather than later. It is a common misconception and also an overused excuse that women are not as good with finances and/or investments as their male counterparts. For these reasons, women are often less confident in their abilities to make investments and achieve financial freedom.

Fear is also a factor when considering making an investment or buying property. This fear factor often deters women from fighting the investment animal. Women seem to shy away from the “risk” of investing because they fear losing their money or becoming financially unstable.

In more recent years there has been a general progression of empowerment with respect to women. Women’s roles in society are changing, as are their levels of confidence and fear. A higher level of confidence and a lower level of fear combined with other key ingredients, such as great advances in technology, Internet opportunities, and increased knowledge of the business and real estate industries, is an inevitable recipe for success for women. who are willing to delve into these sands.

More and more people are turning to real estate due to the instability of corporate America or simply because they want a piece of the action. Investing in real estate, as with any business venture, always involves risk. This risk should not discourage anyone looking to invest. Getting started is probably the hardest task of all. Anyone hungry enough to jump into the real estate market needs to form a personal real estate strategy, which is based on how much time and money they’re really willing to spend.

Doing your homework is key for any smart investor. As mentioned above, the Internet is an excellent resource for gaining knowledge about the real estate market. There are many more opportunities for women in real estate than ever before. There are real estate investment clubs available that offer women the education, networking opportunities, and contacts that are essential to success. For example, the National Real Estate Investment Association (NREIA) has more than forty thousand members and two hundred REIA chapters across the country. These clubs offer women the opportunity to take the pulse of the market and allow them to receive up-to-date information not only on the real estate market but also on the law.

Other organizations that offer information via the information superhighway include, where women share information with other women, and, which offers free financial information on a variety of topics and also hosts a blogging radio show. . Also, the National Association of Women Business Owners (NAWBO), which offers an overview of business, is a good resource. Learning and working with other women provides a great benefit and advantage for women in the market.

In addition to gaining knowledge through the Internet, women can also learn DIY basics at local hardware stores that offer such courses. Knowing these basics can only be beneficial when looking to purchase a home or property. Knowledge is power, and the more you know about home essentials like plumbing, construction, flooring, and electrical wiring, the better. Not to mention that it would be more cost effective and could save you money in the long run.

Once a strategy has been established and the knowledge and research about the market has been done, the next step is to take action. Women are naturally the most relationship-oriented of the sexes. As nurses, they tend to build relationships more easily than men. This can be used to your advantage, as building and maintaining relationships is critical, be it personal or business.

To move forward in taking action, you need to start by deciding what type of financing will be incorporated into the investment. There are a variety of methods available to the investor. The traditional method of financing is to obtain financing through banks, credit unions or mortgage companies. It also typically requires about ten percent of the purchase price as a down payment and a credit score of about six hundred and eighty.

Due to the subprime dilemma we are currently experiencing, lenders are tightening their budgets and are not as eager to lend money as they were in the past. Because of this, many investors opt for more creative financing methods. For example, the seller’s return initiates an OPM (Other People’s Money) approach to financing. Here, the owner takes care of the financing and the seller agrees to make the note of the purchase from him. A typical scenario would generally be where the owner owns the property free and clear and no longer wants it. The owner receives a monthly payment and usually has a fixed time limit, usually three to five years, in which he expects full payment. When choosing this type of financing, make sure that he can refinance the loan from him, as it is much easier to do so than to receive a purchase loan.

Another creative method of financing is subject to existing financing. This involves purchasing the property with the understanding that the existing financing on this property remains in effect. Title passes to the buyer but the loan remains in the seller’s name. This type of financing is best if you don’t want to make a down payment. It’s usually a short-term option, as many sellers aren’t necessarily comfortable with their name attached to the loan for a long period of time. This method is also common with pre-foreclosure properties.

The seller’s second method requires the seller to provide a second mortgage, which is usually in the amount of the down payment. A buyer makes an offer to the seller, which depends on the amount of loan the buyer has qualified for. With this type of financing, the buyer does not have to use their own money in the transaction. When receiving financing in this way, one must ensure that their loan allows the option of receiving a second mortgage.

The leasing option is another route an investor can take. With this process, there is little to no down payment and it allows the buyer the option to purchase the property in the future. Leasing a property allows the buyer to save money and set up financing in the meantime. An arrangement for a monthly lease payment can be made with the seller where this payment can be put towards the eventual purchase of the property.

After deciding which financing method to apply, the buyer must also remember not to overlook a variety of additional costs. Maintenance costs are linked to owning a property. These include mortgages, property taxes, insurance, business license fees and taxes, maintenance costs (gardeners, property repair), vacancy charges (for times when the property is not rented), and administration costs ( manager, tenant finder). Additionally, if a buyer plans to repair and remodel a property, other rehabilitation and construction costs must be taken into account, as well as utilities paid by the owner as it pertains to rental properties.

Closing costs, also known as transaction costs, are additional fees that affect both the buyer and the seller. Buyers should expect to pay between three and five percent of the purchase price, while sellers should expect to pay between seven and ten percent of the sales price. Closing costs also include the mortgage, title insurance policies, homeowners insurance policies, real estate services, mortgage brokers, attorneys, inspectors, and escrow and real estate agents. closing.

Another additional cost is a type of “special” tax. This transfer tax depends on the particular city or county jurisdiction of the property and the sale price of the property. It usually amounts to one percent of the total sale price.

Capital gains tax is also an additional cost to consider. This tax has a rate of fifteen percent and is applied when a seller sells a property for more money than the total amount for which he bought and invested in it. Researching section 1031 of the Internal Revenue Code for feasibility and guidelines regarding capital gains tax deferral would be a beneficial action.

Commissions also play a role in the additional costs associated with buying or selling properties. Commission costs, also known as origination fees, typically range from five to six percent and are split between real estate agents representing the buyer and seller. The buyer typically pays the smaller commission to their own mortgage broker at about one percent of the purchase price. If the buyer decides to fix up and remodel the house, he can plan to subtract about six percent of the sale price for the realtor’s commissions.

Once the homework has been done and the financing has been established, the real estate investor is ready to start the relationship. Establishing a relationship with the investment itself is of paramount importance. Selectivity is key. Just as one is careful when choosing a mate for her, a buyer must also be equally careful when making an investment. Making an investment is a big decision, and an investor must be clear about how much time, energy and money he is willing to spend. Getting involved in an investment relationship is like getting involved in any other type of relationship, it requires a lot of effort and a severe commitment.

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