Home Improvements that Don’t Add a Lot of Value to Real Estate Investors

The housing market is slowly recovering. Real estate investors are having success again. But it’s still a buyer’s market. Homebuyers are more cautious now. They know better. They’re not going to spring for the luxuries that they may have before the Recession. They know what they can afford.

It’s time for real estate investors to make sensible improvements that add real value, not add luxurious unnecessary features to entice buyers who may be trying to live beyond their means. Banks have wised up and are stricter with their lending. So, just like the homebuyer, a real estate investor should be cautious with their renovations. When flipping property, the following “improvements” should probably be avoided:

Creating a Home Office.

Sure, telecommuting is getting to be a more viable option every day, but home offices tend to offer less than a 50% recoup on installation expenses. They’re not for everyone — some buyers may see more value in the space as an extra bedroom — so it doesn’t make too much sense to add it to an investment property.

Adding a sunroom.

Again, not for everyone. Some people may not think that a solarium is a necessity. Some may not know what a solarium is. Either way, it’s not the best investment.

Adding a bathroom.

Though it may seem like a huge selling point, it’s usually not. The amount of money you’d have to add to your selling price to recoup your investment in adding a bathroom may scare away buyers who see it as a luxury that they’re not willing to pay for.

Luxury bathroom remodel.

Jacuzzi tubs and enormous glass showers with massaging heads may seem enticing, but they’re practically never worth it.

A pool.

Granted, a real estate investor is generally not considering adding a pool to properties that will be flipped, but it should be mentioned as a money-guzzling undertaking that does not offer a return.

Adding a master suite.

It’s not Versailles. It’s an investment property. Most homes don’t have wings, so a master suite may seem a bit much in the average home.

A roof replacement.

Unless this is really necessary, like you’re buying a house that was the victim of the tornado in The Wizard of Oz, you probably don’t need to replace an entire roof.

As a real estate investor, a general rule that you can follow when it comes to property renovations is that luxury may be, well, too much of a luxury.

Bridge Loans for Real Estate Investors

For sellers/real estate investors that want to buy a new home before selling their homes, a bridge loan is a viable option.

The US real estate industry is making a slow recovery, but it’s still a buyer’s market. House prices are on the low side and homes tend to sit on the market. Homeowners looking to sell their existing home and purchase a new property may find themselves in a difficult situation. It’s easier to buy than sell a home.

In this situation, in which an investor wants to buy a home before selling an existing home, a bridge loan is a viable option. These loans provide a means to afford owning two properties for a short period of time. The stipulation is that the recipient is attempting to sell a home. They are an invaluable resource for real estate investors who are flipping property. Often, they use bridge loans when snatching up a great deal on a foreclosure property.

For homebuyers and property flippers, bridge loans enable investors to close on a purchase quickly before the selling process is complete. The borrower uses the funds to repay the bridge loan after the sale of the original property is complete.

There are two basic types of bridge loans. In one type, buyers use the loaned money to pay off the mortgage on the existing home and make a down payment on the new home. Borrowers in this scenario only need to worry about repaying their existing mortgage and will have funds to sink into the new property once the sale closes. In the second type, the homebuyer borrows against the equity of the existing home to use for the down payment. The second option is more complex than the first.

Bridge loans are short-term financing plans that are only used for transactions that involve multiple properties. They bridge the gap between the purchase of a new home and a sale of an existing one. Usually bridge loans must be paid back within six months. So, the state of the real estate market becomes quite important to honor the terms of the loan. If the existing property is slow to sell, borrowers may have to renegotiate the terms of the loan and have it extended.

There are risks, as with any real estate investment and home loan. However, if you’re a real estate investor with something to get rid of and an eye on a property that may be off the market soon, a bridge loan is a viable option.

Jason Cohen Pittsburgh's Jason Cohen Pumps $1.5 Million into Pittsburgh

Jason Cohen, Chief Consultant at Jason Cohen Pittsburgh, has completed the reinvestment of proceeds, obtained from a sale on March 28, 2013 in the South Oakland area of Pittsburgh, back into the Pittsburgh economy, with the closing of an 18-unit apartment building on Friday, August 30, 2013 in Regent Square.   At a time when the Pittsburgh real estate market is finally being noticed by the masses, having experienced its first population increase in over three years, this reinvestment only adds fuel to Pittsburgh’s fire.  By utilizing the services of a 1031 exchange qualified intermediary and by choosing to reinvest the proceeds from the sale back into like-kind property (selling multi-family property then buying multi-family property with those funds), Mr. Cohen was able to maximize the amount that he could reinvest back into the local economy.  

When asked about his experience with this process, Mr. Cohen said, “We made a promise to Pittsburgh several months ago, that selling the property in South Oakland was not a sign we were divesting, but rather just the opposite; that we would put that money right back into the Pittsburgh real estate market.” That he did. With today’s closing, Jason Cohen’s reinvestment into Pittsburgh ends up being more than double the amount of the proceeds from the original sale outlined in a press release on April 22, 2013, featured in the Wall Street Journal.

This reinvestment, totaling $1.5 million, afforded Jason Cohen Pittsburgh the opportunity to take part in the acquisition of five more local properties. The acquisitions occurred in some of the most premiere neighborhoods of Pittsburgh. One purchase was a 7-unit property in Shadyside and a 4-unit property in Squirrel Hill, another was a 3-unit property in the South Side, and the last was two properties totaling 18-units in Regent Square. While this is Jason Cohen Pittsburgh’s first delve into the Regent Square area, this purchase already positions Mr. Cohen as one of the largest multi-family owners in Regent Square.

Regent Square is an up and coming area of Pittsburgh and runs through four municipalities: the City of Pittsburgh, Edgewood, Swissvale, and Wilkinsburg. It has a unique shopping district and is comprised mostly of family and independently owned businesses.  While predominantly smaller multi-family properties exist in this neighborhood (6 units and below), Jason Cohen was able to combine two of the larger properties in the highly sought after Braddock Avenue section of Regent Square.

Shadyside and Squirrel Hill are also ideal locations for living. Shadyside is home to many upscale stores, boutiques and businesses located along three corridors: Walnut Street, Ellsworth Avenue and South Highland Avenue.  The majority of Squirrel Hill's business areas are located along Forbes and Murray Avenues. In addition to these, there are a number of longtime, non-profit organizations in the area and many annual events are hosted in Squirrel Hill by various community organizations.  The South Side of Pittsburgh is also a model place to reside offering plenty to explore along bustling East Carson Street, and plenty of green spaces to enjoy (South Side Park, South Side Riverfront Park, Armstrong Playground, Ormsby Recreation Center).

Jason Cohen Pittsburgh is one of the largest and most rapidly growing small to mid-size multifamily investors in specific Pittsburgh markets, with the first commercial property being acquired in 2004. The company is a consulting forum for Jason Cohen and others to unite and package together specific real estate strategies tailored to the unique financial situation and goals of each client. Jason Cohen Pittsburgh represents, and has provided, real estate consulting services to everyone from private citizens to seasoned investors and real estate professionals. Cohen’s group is set apart by the customized process designed exclusively for each client to succeed in their real estate activities.

Jason Cohen Pittsburgh's Jason Cohen and Team Give Back to Habitat for Humanity

On August 8, 2013, Jason Cohen Pittsburgh worked together, alongside Habitat for Humanity of Greater Pittsburgh, on rehabbing a home in the Sharpsburg area of town for a family of 7, from Burundi, who had been recently displaced by war.

The home, built in the early 1900s, was sold to Habitat for Humanity of Greater Pittsburgh at a very low cost from a Sharpsburg police officer. It was purchased specifically for this family in need and offers 5 bedrooms in order to accommodate everyone in the family. The majority of the renovations consisted of minor demolition, updating electricity and plumbing, and bringing things up to code.

This project is being funded by the Episcopal Diocese of Pittsburgh and various church groups within the Diocese have raised money for the renovations to this home. The Archbishop blessed the home as well. The Fox Chapel School District also holds fundraisers throughout the year, with proceeds benefitting Habitat for Humanity of Greater Pittsburgh, and for this particular home.

Habitat for Humanity of Greater Pittsburgh was established in Pittsburgh in 1986, and their belief is that “all God’s people deserve a simple, decent place to live.” It is through this belief that they have been able to help 73 low-income families with affordable housing. In order to qualify for housing through Habitat for Humanity of Greater Pittsburgh, a family must first meet certain income criteria, and fill out an application and necessary paperwork. Next, a committee must accept or deny the application.

If accepted, family members begin earning “Sweat Equity” by working 350 hours of labor at house construction sites. After 50 hours of working on another family’s house or at Habitat for Humanity of Greater Pittsburgh’s ReStore, which sells reusable donated house building and home improvement materials to the public, a site is chosen for their home. Next, an army of enthusiastic volunteers works side-by-side with the family to build the house, which will become their home. This construction experience helps families learn to maintain their new home and fosters a sense of pride, accomplishment, and responsibility to their community. The home is then purchased by the family through a no-profit, no-interest mortgage. This entire process typically takes about a year to complete, from start to finish.

Jason Cohen Pittsburgh has had a relationship with Habitat for Humanity of Greater Pittsburgh for approximately 3 years now, working on several projects a year. In fact, Habitat for Humanity of Greater Pittsburgh is the only charitable organization who can do roof repairs, and that is due to its relationship with Jason Cohen Pittsburgh.

Jason Cohen is the Chief Consultant of Jason Cohen Pittsburgh, one of the largest and most rapidly growing small to mid-size multifamily investors in specific Pittsburgh markets, with the first commercial property being acquired in 2004. Jason Cohen Pittsburgh is a consulting forum for Jason Cohen and others to unite and package together specific real estate strategies tailored to the unique financial situation and goals of each client. Jason Cohen Pittsburgh represents and has provided real estate consulting services for private citizens, from doctors, teachers, and single parents to the seasoned investor and real estate professional. Jason Cohen Pittsburgh also offers extensive services to small- and large-cap businesses. Cohen’s group is set apart by the customized process designed exclusively for each client to succeed in their real estate activities.

New site!

Jason Cohen Pittsburgh In a Blog by The Pittsburgh Business Times

Jason Cohen Pittsburgh in The Pittsburgh Business Times

http://m.bizjournals.com/pittsburgh/blog/socialmadness/2013/06/jason-cohen-pittsburgh.html

Jason Cohen Pittsburgh in The Pittsburgh Business Times

Jason Cohen Pittsburgh in the Pittsburgh Business Times for First Place Standings in the Small Category of the Social Madness Challenge where companies go head to head to compete for bragging rights as the Best Social Media Company in the Nation and the winner will get $10,000 for their designated charity. 

Jason Cohen Pittsburgh's Charity is Habitat for Humanity.  Vote for your favorite Company here http://www.bizjournals.com/pittsburgh/socialmadness

Help us win for our charity!!

http://m.bizjournals.com/pittsburgh/blog/socialmadness/2013/06/jason-cohen-pittsburgh.html

Jason Cohen Pittsburgh Chief Real Estate Consultant Jason Cohen in CBS Money Watch This Morning June 05, 2013

Jason Cohen Pittsburgh Chief Real Estate Consultant Jason Cohen is talked about in CBS Money Watch this morning.

See It Here:

http://markets.cbsnews.com/cbsnews/news/read/24350004/Jason_Cohen_Pittsburgh_is_at_the_Peak_of_the_Game!_Cohen_Purchases_4_More_Buildings_in_Pittsburgh_Areas_Dormont

Jason Cohen Pittsburgh Launches First Podcast

http://jasoncohenpittsburgh.podomatic.com/entry/2013-05-24T13_44_07-07_00

Jason Cohen Pittsburgh Launches its first of many podcasts.

Jason Cohen Pittsburgh Chief Real Estate Consultant Jason Cohen Featured in Today's Daily Herald

http://finance.dailyherald.com/dailyherald/news/read/24107901/Jason_Cohen_Pittsburgh_

Jason Cohen Pittsburgh, Chief Real Estate Consultant Jason Cohen and his team was Featured today in the Daily Herald for just completing a complete turnaround of what was a dilapidated and over occupied building in the highly desirable Southside area of Pittsburgh, Pennsylvania. Learn more about Jason Cohen and his group's work in the article. Click Here.

Top Ten Real Estate Investing Tips by Jason Cohen of Jason Cohen Pittsburgh

Jason Cohen of Jason Cohen Pittsburgh publishes his Top Ten Real Estate Investing Tips on Squidoo.


http://www.squidoo.com/jason-cohen-pittsburgh-chief-consultant-jason-cohens-top-10-tips-in-real-estate

Jason Cohen Pittsburgh: Chief Consultant Jason Cohen Takes Real Estate Home Flips to a New Level by Flipping a Community in Bethel Park near Pittsburgh, PA.

http://www.prweb.com/releases/2013/4/prweb10646386.htm


A recent article by Donna Fuscaldo bursts, for many, what is clearly a real estate bubble. What is seen on “Flip this House” and similar shows with recent traction might seem like an opportunity for a quick buck, but as a FoxBusiness report notes (at http://www.foxbusiness.com/personal-finance/2013/04/03/tips-for-making-money-off-your-first-house-flip/), according to Eric Dale, CEO of the National Fix & Flip Network, "People get in the market thinking it’s a great way to make money, and that’s not the case,” 

Pittsburgh, Pennsylvania (PRWEB) April 23, 2013

The article presses to its readers that flipping houses is certainly not as casual as TV suggests. However, the promoted approaches with “flippable” real estate have garnered the attention of Jason Cohen, Chief Consultant at Jason Cohen Pittsburgh http://www.jasoncohenpittsburgh.com.

Cohen knows too well about the FoxBusiness article’s claims, as he has newly wrapped up flipping an entire community of condominium units, just one of his many recent projects. Within two years of acquiring an entire community in foreclosure, Cohen bought, renovated, and sold all twenty-two individual units at what most in the industry would consider neck-breaking speed. “While past experience flipping houses is a must, a tough skin is probably the key ingredient,” he explains. “What we did in Bethel Park [in Pittsburgh], I hadn’t seen before. We took a dilapidated street in an otherwise beautiful neighborhood, an obvious eyesore, and transformed it completely in a matter of months. Each one of the 22 units presented unique problems, but the experience of having flipped houses several times prior allowed us to be well prepared for all that came our way.”

Cohen is currently working on flipping another similarly sized community in the highly sought after Southside neighborhood of Pittsburgh, Pennsylvania. It is profitable conclusions and informed decisions that allow him to prolong successful investing and maintain the ability to assist others in similar and smaller endeavors.

Jason Cohen Pittsburgh at http://www.jasoncohenpittsburgh.com is a forum for Cohen to provide his expertise to those that have decided to jump on the real estate-flipping bandwagon. He has recently responded to the FoxBusiness report with a new statement to the press, in which he explains just how flipping a house can be a risky gamble for the rookies in the business: “These TV shows have certainly fueled the entrepreneurial passion within us all.” Cohen continues, “However, when the cameras shut down and the glitz and glamour fade away, you could just be left with a financial horror reality show. While in theory it sounds easy enough: buy low, renovate, sell high, it never really does turn out that smoothly."

Purchasing real estate of any class can be the most significant investment one will make in their lifetime. Before making such a principal decision, it is important for buyers and investors to understand, minimally, the general business of real estate or be represented by someone who does. According to Cohen, Jason Cohen Pittsburgh was created for just that purpose. “I've seen too many come and go in this business,” he explains. “I learned through trial and error, and why not save people from similar war wounds by letting them build on what we know?” Cohen reflects that Jason Cohen Pittsburgh is a resource he could have only dreamed of when he launched his career.

Cohen also states that since real estate investment is not a business for the inexperienced, professional consultation can save someone from having to risk everything on the “little-known”. “It's not just about buying real estate for sale,” Cohen explains. “You really do have to know a little bit about everything: property valuation, acquisitions, contract negotiations, due diligence, financing, title work, and closing. Why not have a real estate consultant to navigate such a treacherous ride?”

Imagine someone buying PA real estate at a foreclosure only to discover that the person foreclosing on the property was the second mortgage holder. The day after they thought they had just won a home for a great price, they get a call from the bank holding the first mortgage stating that they will also foreclose unless they are paid $100,000. “It’s happened before, and could have been prevented with doing a quick online search for relevant consulting, had you been give that advice. Isn't avoiding that type of debt worth the cost of some professional consultation? These debts can outweigh the cost of a consultation tremendously. Don't go at it alone, and if you do, be sure to have seriously done your homework,” says Cohen. “It's just not worth it. One little mistake can truly ruin your financial life, and that is just never talked about on ‘Flip This House’ or those other shows.”

According to Cohen, Jason Cohen Pittsburgh offers services that can help first time buyers or the savvy real estate investor. “We don't have a secret list of real estate for sale or any get-rich-quick ideas,” he explains, “but we can provide some rationale and professional advice that comes from the unsurpassed combination of education and experience.”

ABOUT:
Jason Cohen is the Chief Consultant of Jason Cohen Pittsburgh, one of the largest and most rapidly growing small to mid-size multifamily investors in specific Pittsburgh markets, with the first commercial property being acquired in 2004. Jason Cohen Pittsburgh is a consulting forum for Jason Cohen and others to unite and package together specific real estate strategies tailored to the unique financial situation and goals of each client. Jason Cohen Pittsburgh represents and has provided real estate consulting services for private citizens, from doctors, teachers, and single parents to the seasoned investor and real estate professional. Jason Cohen Pittsburgh also offers extensive services to small- and large-cap businesses. Cohen’s group is set apart by the customized process designed exclusively for each client to succeed in their real estate activities.Prweb Article

Jason Cohen Pittsburgh - a Real Estate Consultant

Known to his friends and his colleagues as a leader among leaders, Jason Cohen assumed the position of entrepreneur after a stint with the corporate world left him feeling uneasy. In his role as the leader of the Pittsburgh multi-family acquisition scene, Jason Cohen has been the leading force behind Jason Cohen Pittsburgh, but also the de facto spokesman for the industry as a whole.

Cohen’s work at Jason Cohen Pittsburgh is fueled by both his extensive managerial experience, and his passion for the industry itself. Cohen is committed to the idea that individuals and real estate firms alike should have a say in how they are represented—and a set of resources for combating those that take advantage of others with lack of knowledge or experience and other acts of betrayal. Says Cohen, “In this where is mine, era, it is a good and necessary service to give people and companies control over a real estate transaction by feeding them experience based knowledge that others either fail or deliberately choose to leave out.”

His success as Jason Cohen Pittsburgh comes on the back of a lifetime of experience as a top-tier manager. Cohen with the Jason Cohen Pittsburgh team has over 10 years of management experience in the Real Estate Industry. His most public acts of managerial service and Real Estate experience came during his complete transformation of a run down, dilapidated town house community in the heart of Bethel Park. In true Flip This House mentality, Jason Cohen became the face of Real Estate transformations in Pittsburgh, With his tireless work ethic, organization skills, and leadership, Cohen  has proven himself to be a manager and business executive utterly without peer.

Cohen continued to show his first-rate management abilities through his 8 year stint managing over 6 Real Estate Firms transforming from barely breaking even endavours to strong cash flow performing entities. Cohen  then went on to lend his Real Estate expertise to Habitat for Humanity, based out of Pittsburgh, by giving them the necessary tools and resources to allow them to tout being one of the only Western Charity offering.Roof Repair.

Ultimately, Jason Cohen is famous for keeping Jason Cohen Pittsburgh at the top of the industry, both in terms of best-in-class ideas and the most advanced acquisition strategies in the business. For Cohen, the chance to bring fairness and control to a buyer in the Pittsburgh Real Estate industry is ample reward, in and of itself