By Lisa Scontras

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• Prudential Locations • Sotheby's

Whether it's flipping a fixer-upper, finding a foreclosure or buying and renting apartment buildings, the mere possibility of making as much money on one house deal as in a whole year at the job has wannabe investors' mouths watering.

The fact is that investors who practice sound risk-management techniques have indeed had some "too-good-to-be-true" paydays recently. Of course if it was easy, everyone would be doing it. So what separates the actual real estate tycoons from those who are just wishful?

Real estate agent Patti Takayama of Prudential Locations says it's not unreasonable to be successful with the right coaching and a clear idea of what you want.

"Some want to accumulate rental properties that will bring them income in their retirement," says Takayama. "Others want to build enough equity to buy their dream home. We tailor their plan to meet their needs and just keep doing what's necessary until we achieve the ultimate goal."

It's important to keep that ultimate goal in mind, says Takayama and remain focused.

"I know how to pick properties that appreciate," she says. "I have many happy clients. But initially, the properties I show you may not look as beautiful as you think they should."

Takayama explains, "Remember, this is a property that you're going to make a profit on — so it's OK that the carpet needs to be replaced or the walls need painting."

The climate remains positive for real estate investors, she maintains.
"The economy is still strong, you can still find reasonably-priced properties, demand is high and interest rates are stable," says Takayama, who adds the biggest obstacle for folks is fear.

"Am I getting in over my head? Am I doing this at the right time? are normal questions budding investors ask themselves and why they need someone to walk them through each step," Takayama recommends.

Lynn Sato purchased her third investment property under the guidance of Takayama seven months ago.

"I sold one," says Sato. "I used that money to buy the other two. I want to continue to keep doing that — buy, sell, buy, sell — and use the money to keep accumulating more property."

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The benefits of home ownership

Are you trying to make up your mind whether to "move up" to a bigger home or purchase your first house? . . . but it's too expensive?

What's is the price? $300,000? $400,000? $500,000?

If you had bought that $100,000 house or condo 10 years ago, national averages say it would have cost you around $56,000. Locally, some markets have experienced even more price growth.

In 1994, today's $500,000 house would have cost approximately $280,000.

That's because the national median sales price ten years ago was 56 percent of today's price.

Once you buy a house, your payment remains stable. If you get a fixed rate loan the payment will remain exactly the same throughout the mortgage term.

It doesn't make sense to rent. Rent keeps going up. House payments don't.

Plus, houses appreciate.

No one can predict the future, but since 1968, houses averaged an appreciation rate of 6.34 percent per year. That may not sound like much.

But if you purchased a condo today at $250,000, based on an annual 6.34-percent appreciation, that home could be worth $1.5 million in 30 years.

Source: Real Estate ABC

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Staging tips help you prepare for home sale

Minimize selling time and maximize profits with these three tips to staging the inside of your home like a pro.

1. De-clutter.

This is one of the most important things you can do when selling your home. It might be easier to think of de-cluttering like this: You're moving anyway, so why not start packing now.

Pack up everything you don't need and store the boxes out of sight in the garage. You may even consider renting a storage space temporarily.

2. Organize your closets.

Put similar colors together, pants together, skirts together, shirts together, etc. This trick will make your closets look bigger. It really works. An organized closet appears bigger and makes your home look as spacious as possible.

3. Make your home look like a model.

You want to de-personalize as much as possible so potential buyers can imagine themselves and their own belongings occupying the space. That means minimizing — put away everything you don't need or use. Clear off the kitchen countertop as much as possible and put miscellaneous small clutter in a few attractive baskets or boxes.

Staging a home can be compared to setting the scene for a prospective buyer to imagine himself, his family and his possessions happily occupying your home. In order for that to happen, the seller has to take herself out of the picture. HS