Lee Morof's Real Estate Blog

Investing in real estate is not a get rich quick scheme by any means.  Late night infomercials claim to show you how to retire in months after trying their methods for investing in real estate. Unfortunately, the only one getting rich is them.

But, you can build for your future by investing in the right Bloomfield Hills real estate and in the right way. Here are five tips to give you some guidance on how to buy that second, third or even fourth piece of real estate as an investment:

1. Shop smart. Look for homes or land in desirable neighborhoods or in up-and-coming neighborhoods.
2. Keep your property. You should not buy Bloomfield Hills real estate for the purpose of flipping it.  That was a short-lived fad that ended up costing many people thousands of dollars and more.  Instead, buy real estate with the intent of holding on to it.
3. Buy rental property. Rental property can be a great way to add to your income and give you the means to do things you might not have been able to do on your current income.  It is also a great way to set your children up for the future by giving them their first home. You don’t want to be a slumlord so be prepared to invest some time and money into the upkeep of your Bloomfield Hills real estate.
4. Exchange properties without paying capital gains. You don’t have to fear the tax man if you decide you want to get rid of one property for another.   By using a 1031 exchange, you can sell one property and buy another without paying taxes on the first one. This is not something you want to do as a “For Sale By Owner;” you need to use a real estate professional who is skilled in the 1031 exchange.
5. Enjoy your free time. You don’t have to give up all your free time to manage your investment property. There are professional property management companies that can handle some or all of the day-to-day tasks for you. There is a fee for their services but it is often well worth the cost.

For more information on buying investment properties or 1031 exchanges, contact me at 248-514-2640 or by email at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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If you own Bloomfield Hills real estate that you rent out, you already know how much work it is to juggle all the responsibilities of being a landlord.   Being able to share that work with someone else is an obvious reason for hiring a property management company.

Here are five additional benefits to hiring a company to manage your rental properties:

1. Stay up to date on legal issues: It’s difficult to stay on top of all the ins and outs of rental ordinances and tenant rights.  Property management companies ensure tenant and landlord rights are not violated and that all state and local laws regarding rental property are followed.  To help with this, property management companies often have an attorney on staff or on retainer.
2. Free up more of your time: The property management company is responsible for the day-to-day operations of your rental homes.  If the furnace goes out in the middle of the night, the management company gets the call not you.  They schedule routine maintenance and handle any repairs that are needed.  Some management companies perform monthly inspections of your Bloomfield Hills real estate to identify any problems or tenants that are damaging the property.
3. Screen potential tenants: Instead of spending your time interviewing potential tenants, running credit reports or checking references, you can spend your time on other things that you need or want to do.  The property management company advertises your rentals and screens all potential tenants.  Their job is to get you the best possible tenants for your rental home.
4. Collect rents: The management company collects and deposits rent on all your rental properties.  This cuts down on the accounting you must do on a monthly basis.  Each unit is tracked separately, so you know which rentals are making the best return and which ones you might want to sell.
5. Remove unwanted tenants: The management company is responsible for evicting tenants for non-payment of rent or improper care of your Bloomfield Hills real estate.  They handle filing the paperwork and going to the court hearing, as well as the follow-up process.  This is probably one of the most unpleasant landlord duties and one of the most difficult to implement without violating the tenant’s rights from lack of knowledge.

Want to buy Bloomfield Hills real estate for income property?  I can help.  Give me a call at 248-514-2640 or send me an email at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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With home prices nearing their bottom, now might be a great time to buy Bloomfield Hills real estate as income property. Many more people will be looking to rent now that pre-approved mortgages are harder to come by. But, before you become a landlord, you’ll want to make sure your potential rental property won’t remain vacant for long.

6 tips to help you evaluate your Bloomfield Hills real estate investment:

1. Determine if your area has a strong rental market. See what kind of homes are for rent and track how long they remain vacant. If the same properties are listed week after week, it might not be the best area to purchase a rental.

2. Get a feel for the stability of the population.  It’s good to find a rental property in a transient community because residents are less likely to purchase their own homes, and more likely to rent, if they know they’re only going to be there for a couple years.  In particular, look for areas with military installations or colleges nearby.

3. Keep an eye on Craigslist and the local Classifieds. Track how many rentals are available at any given time, and get an idea of the size of houses most commonly listed. You won’t want to be trying to rent a 1-bedroom house in a neighborhood that is full of young families.

4. Make sure your potential rental property is located in a good school district. Potential renters with children could be turned off by the quality of the local schools if they have a poor reputation.

5. Check around with local property management companies. They’ll often have the best information about what sort of properties are the easiest to rent out. You can also check their websites to see the properties they have available.

6. Find a house that’s in good shape. Would you live there? If not, either move on to a different property or immediately fix it up to good, livable conditions.

Owning a rental home can be a great investment. Do your homework, and purchase a home people will be clamoring to rent — not one that continues to sit vacant.

If you have questions about purchasing Bloomfield Hills real estate as income property, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com for more information.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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The availability of Bloomfield Hills real estate and real estate throughout the U.S. is tremendous. Whether you’re looking for investment real estate or a vacation home, you can get great deals when buying U.S. real estate.

Here are 5 reasons why now is a good time to invest in U.S. and Bloomfield Hills real estate:

REASON #1:  More for your money.

With the decline in the value of the U.S. dollar, foreign investors get a lot more for their money when purchasing U.S. real estate.  For example, on April 21, 2011, if you had $250,000 Canadian dollars to invest in real estate it would purchase an American home worth $262,109 U.S. dollars.

REASON #2:  The average American home price has dropped.

With the days of inflated prices for American real estate gone, so is the worry of huge losses when the market falls.   The American real estate market has reached an equilibrium allowing it to once again be a safe long term investment.

REASON #3:  America is diverse.

From ski slopes to desert dunes to ocean waves, America has it all.  Whether you love warm sandy beaches or rolling hills lined with grapevines, the choices are numerous.  Not your style? Try Brooklyn’s delicious diners or California’s Rodeo Drive.

REASON #4:  Earn income from your U.S. real estate.

Purchasing American real estate opens up the opportunity to gain rental income.  There are many property management companies that can oversee the day-to-day operations of your property in your absence.

REASON #5:  Sun and fun all year long.

If you live in Canada or other cold-weather areas, you can escape the long winters when you purchase real estate in warm-weather areas like Arizona, Florida, New Mexico, Texas or California, to name a few.  Year-round golf and warm beaches can make any winter worth looking forward to.

If you’d like more information on purchasing Bloomfield Hills real estate, give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call:  248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com

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If the Bloomfield Hills real estate you are looking to buy is going to be your primary residence, you probably know the features that are important to you.  However, in today’s economic environment, the resale, or investment value, of Bloomfield Hills real estate is as important as the practical value of the number of bedrooms or bathrooms and the size of the kitchen.

In the past, a home buyer rarely worried about the resale value of a property because homes were always considered good financial investments. With today’s fluctuating home prices, property values are as important for home buyers to understand as they are for real estate investors to understand.

Location and Property Values

Before the housing and mortgage crisis, even if the home that suited you was not in a prime location, it would likely increase in value over time.  Now, you want to be sure you research a potential home before purchasing it to be sure:

1. The home is in a great Bloomfield Hills neighborhood.
2. It’s at the lower end of the market value for that neighborhood.
3. If you buy a home in a neighborhood that is already considered a lower value area, it’s possible that those prices will not recover as quickly as better areas.   Or worse, home values could decline more leaving you with a home worth less than what you paid for it.

Now more than ever, it’s important to work with a real estate agent who specializes in the neighborhood where you’d like to live.  As a specialist in Bloomfield Hills real estate, I can give you the insider’s scoop on that neighborhood.  Contact me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

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There are several important criteria to consider when buying Bloomfield Hills real estate for investment. Some of the items will vary depending on the reason you are buying and the type of investment you are looking to make.

Long term investments such as rental properties can take longer to pay off but the income is consistent.  Short term investments such as buying for quick flips may pay off larger but can be a less regular form of income.

When buying a home for either long or short term real estate investments, it is very important to know exactly what your costs will be compared to potential income. That should be your primary deciding factor when buying investment properties. 

Short Term Bloomfield Hills Real Estate Investments

When you are looking at short term investments like re-sales and flipping, the potential profit needs to be larger to cover both the inconsistent nature of that type of investment and the slightly larger risk. Bloomfield Hills real estate purchased for short term investment also needs to be very appealing to ensure quick turnover. Languishing on the market once you have relisted it eats away at your profits.

Vacant Land as Real Estate Investment

Another type of investment property is vacant land you can subdivide and resell, or develop on your own. If you’re considering that type of real estate venture, know that it requires quite a bit of homework.

1. You will need to check out the zoning laws to be sure your plans are allowable without going through the hassle and possible failure of rezoning. 
2. You also need to pay close attention to the initial and long term costs associated with developing your vacant land.
3. You need to know exactly what is possible such as how many units can be placed on a given parcel to be sure the property can accommodate the number of resale units you require in order to make a profit.

If you would like more information on investing in real estate, please call me at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

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When looking for property that will be a good investment either as a rental, resale, flip, or even a home that will eventually be worth a great deal more than you originally paid, location is a paramount concern. For the very best in Bloomfield Hills real estate investments, location means more than just being situated in a good neighborhood—it means a location with perks. 

1. Lakefront Property – There is something about a home that sits on a lake that makes it an amazingly popular property. Perhaps it’s the ability to wake up in the morning and have coffee looking out over soothing waters. If you’re looking for one of the very best selling homes, consider lakefront or other waterfront properties.  However, be absolutely sure that the Bloomfield Hills real estate you purchase on a waterfront is built so that it is not going to flood should the waters rise.
2. Gated Communities – Privacy and security are worth their weight in gold—or at least you’d think so considering what people are willing to pay for the peace of mind of knowing their neighborhood is secure.
3. Great Communities in Major Metropolitan Areas – Big cities mean big bucks and lots of need for housing. People living in large cities typically have more disposable income and are willing to pay for the convenience of living in the middle of the action.
4. Rapidly Growing Communities – If you’re lucky enough to know when an area is in a growth spurt, buy investment property there.  Click here to learn more about Bloomfield Hills.

If you’d like help locating the best Bloomfield Hills real estate investment opportunities, I can help. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

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If you’re thinking of listing your Bloomfield Hills real estate for sale and know it needs a little sprucing up, here are a few tips on the smartest home improvements you can make to help sell your home faster and for more money.

• Kitchen remodeling stands at the top of any list of most attractive projects for re-sale value. Crisp clean new cabinets, fresh tile and countertops all make for buyer approval and is money well spent.
• Bathroom remodeling is a good bet but not nearly as good as adding additional bathrooms, unless your home already has a lot of them.
• Adding central heat and air to replace floorboard or radiator heat is a huge selling point for any Bloomfield Hills real estate home for sale.
• Installing a deck or patio. This one hovers close to the middle of the do/don’t numbers but it is still a nice investment that can make your home feel more comfortable and give it more ‘space.’

Items that are less likely to be worth the money include:

• Installing a backyard pool. Some people think a pool is attractive.  To many buyers, it’s nothing but additional work and expense.  Unless you live in a climate where the majority of people want a pool, steer clear of this investment.
• Converting your basement into a finished living space. Many buyers like a finished basement, but it’s the main living space that counts most to them.  Your money would be better spent above ground.

It is important to fix up your home to get it ready for buyers.   But with money tighter than we’ve seen it in a long time, you need to focus on those improvements that will give you a good return on your money.

If you’d like more tips on what works and what doesn’t when fixing up your Bloomfield Hills real estate for sale, I can help you Sell Your Home for the Max. Call me today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

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Vacant land is like a blank canvas and the ultimate in the American dream of property ownership. When you purchase Bloomfield Hills real estate, you can build the architectural style of home you wish without the limited design styles of a developer. However, buying vacant land is very different from buying property with a building already on it. There are certain qualities to look for in vacant land.

1. Buildability. Vacant land comes in many different forms and conditions. Will the property need to be cleared or built up? Is it uneven? Is it on solid rock?  Any work you have to do will cost you more in time and money.
2. Check the water and sewer codes. Each municipality has its own set of regulations for water and sewer. These regulations even specify what kind of system you need for the property. You need to know if you can hook up to the local sewer and water systems or if you need your own septic system and well.
3. Zoning. Land parcels are zoned for certain uses and buildings. Before you buy vacant land, check the zoning. If the Bloomfield Hills real estate property isn’t zoned for the type of home you want to build, you’ll need to find out what you need to do to request a zoning change. Sometimes this is a simple procedure; sometimes it is a complicated process.  You may be better off finding another piece of land that is zoned for what you want to build.
4. Total cost. When you purchase vacant land, you have to take into consideration more than just the purchase price. Unless you plan to use the land for grazing animals, you will probably need to add sewer, water, and electric hook-ups. You will have to pay for this and need to include it in your budget.
5. Building restrictions. Environmentally protected lands have restrictions as to what you can and cannot build. You may not be able to cut down certain trees or fill in parts of your property that are too low. There may even be limits to what size or style structure you can build on the property.
6. Location/Accessibility. You have to carefully consider where the vacant land is located before you buy it. Living on a country estate away from the busy city means longer drives to everywhere. Make sure there is an access road so you can easily reach your property.

As one of the best Bloomfield Hills licensed real estate brokers and real estate lawyer, I can help you find and buy the perfect Bloomfield Hills real estate to build your dream home on.  And I can keep you from making mistakes that could cost you thousands of dollars.  Call me today at 248-514-2640 or email info@NorthWoodwardHomes.com now!

Lee Morof
RE/MAX Showcase Homes
Birmingham, Michigan
www.NorthWoodwardHomes.com
info@NorthWoodwardHomes.com
Call:  248-514-2640

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