Book real estate coach or not?

Just google “real estate coaching”, you will get ads and hundreds of websites that want nothing but your money! You can see that already in the structure of so-called landing pages. These are websites that offer hardly any info, but only a “button” to “enter”, “buy” or to “get free info”:

Here you will learn:

1. Recognize serious (unserious) coaches
2. You get 3 concrete tips for good coaches

For:

• Real estate beginners
• Homeowner:inside
• Entrepreneur:inside
• Financial freedom and passive income
• Real Estate Sales
• …

Coaching for entrepreneurs – example

An example instead of a thousand words – If you already turn over 1 million euros a year and instead of ~ 25% you only pay ~15% tax, through the right legal form and corporate structure, such as family foundation, the effect is enormous.

• 1 million turnover, 100,000 profit at 25% = 25,000 euros tax burden
• 1 million turnover, 100.000 profit at 15% = 15.000 Euro tax burden ( 10.000 Euro more profit / year )

If the costs of coaching are now 2,000 euros for 1 day in a master class – why not! Scaled to 5 million turnover, assuming 500,000 euros profit already 50,0000 euros more at the end of the year.

A simple example! If we stay here, other benefits are added such as allowances, etc..

Now you are probably already starting to rake!

It doesn’t always have to be the Masterclass, but you should pay attention to a few things to find good and reputable real estate coaches. Or you can just have a look at my recommendations.

Coaching for beginners: learning to get started

The most blatant experience I’ve had myself was in Berlin, a 21-year-old Teinehmerin. She had previously set up a fund in Switzerland, and now she wanted to get into the real estate business. Extremely interesting person! She then started as a tipster, so without investing or brokering herself. Now she is 22 years old and has built up a wealth of knowledge and asks punky questions, wow. Whether it’s BGF calculation, tenant lists, and skepticism of overly generous calculations. Impressive what becomes possible with the right ambition and training.

Real Estate Coaching in Germany

Here you will find once again my list of recommendations in Germany:

• Alex Fischer – my allround tip
• Real Estate Coaches

Serious real estate coaching: What to look for?

For me there are only two quality criteria

1. experience

2. success

Why does success come second? Anyone can have a “one trick pony” that you can talk about for years. But who creates continuous success? Here you can find good coaches.

Experience and success count!

How do you find good real estate coaches? These are my 3 tips!

1. Tip – Participant voices in quantity and quality
2. Tip – North Data Online Check in 1 minute
3. Tip – My Coach Recommendations

Participant comments: Quantity and quality – Tip 1

Trust in what? Participant testimonials are good, but they can also be fake, especially if it’s purely text-based.

• Many participant voices
• Ideally in video format with clear name
• On the spot from coaching or after, not only from “home”.

Falsify opinions of participants: This is how it works

I myself am an SEO, so I (also) deal with online marketing and search engine optimization. Nothing is easier to “fake” than opinions of participants. Especially now with AI (artificial intelligence) and programs like ChatGPT.

Example?

These aren’t real reviews, but they look convincing! Especially if you do not expect it.

“My name is Markus and I booked the real estate coaching a few months ago. I had already bought my first apartment and wanted to learn how to scale my real estate portfolio. The coaching was absolutely amazing! The coach helped me optimize my strategies and showed me how to successfuly invest in more condos. Thanks to the coaching, I was able to grow my portfolio to 12 condos and exceed my financial goals. I am so grateful to the team at Online Coachings for Real Estate and highly recommend them!”

Sorry for the long example, but that’s exactly how it goes!

So, what to do?

North Data Check: What can your coach do? – Tip 2

Tip, just check the person with North Data. Here you can already see whether it is, for example, a sole proprietor or a person with several companies, ideally also asset management or real estate GmbHs or family foundations.

This is what you should look for when checking:

• Extensive structure, not “just” a UG or GmbH
• “Real estate limited companies” (asset management for real estate)
• Asset Management
• Family Foundation

Background check online: 2 examples

The more professional and comprehensive the setting, the better.

Example: Small entrepreneur, “only” a UG.

Solid real estate investor with smart corporate structure and investments:

Advantages and disadvantages

Let’s honestly summarize again the advantages and possible disadvantages (depending on the coach you work with), the pros and cons:

Check: How to find good real estate coaches

Let’s summarize the 3 tips once again:

1. Tip – Participant voices in quantity and quality
2. Tip – North Data Online Check in 1 minute
3. Tip – My Coach Recommendations

Example: thousands of participants, huge community (100,000+) can’t be wrong (photo: Alex Fischer Event).

Real Estate Coaching in Germany

Here you will find once again my list of recommendations in Germany:

• Alex Fischer – my allround tip
• Real Estate Coaches

Prepare purchase contract: Important data, attachments & Co.

To ensure that your purchase contract is ready for notarization, you need to collect all important data, documents and commitments in advance. Let’s go through the most important points here chronologically.

Master data: Buyer and seller

At the beginning of the contract, the master data of the buyer and seller must be listed.

The master data includes:

• Name
• Address
• Date of birth

Master data: House, apartment & multifamily

The same applies to the property. The master data of your property includes the exact address of the property and, in the case of condominiums, the residential unit. The location and the land register sheet number must also be listed here.

Summarized here:

• Address of the property
• Housing unit, if applicable
• Location
• Land register sheet number

Purchase price and payment term including additional costs

The final purchase price is then displayed here. Important: This is not just the purchase price of the property itself, but the final price including ancillary purchase costs, such as notary, broker, land registry entry, etc. The payment term should also be recorded here. The payment term should also be recorded here.

Reading tip: Calculating the purchase price including incidental purchase costs

• Purchase price
• Payment term

Tenant data and list: Appendix

Important for rented properties: The tenant list and data. These are attached as an appendix to the purchase agreement. Finally, all information regarding the tenancy and the respective deposit must be set out. Rent arrears and house money arrears must also be listed here. If there are no arrears, this must be confirmed.

• Tenant data / Tenant list
• Current status of tenancies
• Deposits paid by tenants
• Confirmation: No rent arrears
• Confirmation: No house money arrears

Commitments made by the seller in the purchase agreement

Also important: All promises made by the seller must be included in the purchase agreement. If, for example, renovation or refurbishment work still has to be carried out, this should be documented here. This prevents misunderstandings later on.

Land charge documents from your bank

Finally, you will need the land charge documents from your financing bank. If you do not yet have them for your appointment with the notary, then include the power of attorney for the land charge appointment in the purchase contract instead.

Economic transition: billing and costs

If ownership is transferred to the buyer, this also entails an economic transfer. The economic transfer involves both the settlement of tenants’ accounts and contributions from residents. Important: If you buy the property before the middle of the year, the seller must take care of the settlement. If you buy the property in the second half of the year, you have to take care of it.

You will need the following additional documents for the economic transition:

• Documents for the settlement of tenants
• Receivables due to contributions from local residents
• Assignment of claims against craftsmen

Checklist: How to draw up the purchase contract

So here again summarized all the important data and attachments for the purchase contract:

1. Buyer & Seller Master Data
2. Master data of the property
3. Purchase price and payment term
4. Tenant data and list
5. Commitments from the seller side
6. Land charge documents
7. Documents for the settlement of tenants
8. Receivables due to contributions from local residents
9. Assignment of claims against craftsmen

You want to buy an apartment and still have some questions? Then you will learn everything from A-Z here: owner-occupancy or renting, financing a condominium, apartment search, real estate portals, brokers, valuation, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide.

✓ A guidebook
✓ All facts
✓ Insider tips
✓ Purchase checklists

Learn step-by-step the home buying process and lots of insider tips!

• Buy apartment

Valuing existing real estate: age & year of construction as a factor

Older properties are charming – no question about it! Apartments in old buildings are attractive because of their high ceilings and villas from past construction years because of their awe-inspiring architecture. The age of a property is also a decisive factor in real estate valuation. After all, the different types of houses and apartments have their own individual defects, depending on the year of construction. So what are the advantages and disadvantages of old existing properties?

Advantages and disadvantages of older real estate

A very clear advantage with older properties is the favorable purchase price. Thus, many investors buy the property for a favorable purchase price, renovate and refurbish it and sell it again at an immense profit. The disadvantage of older real estate lies in the maintenance costs. These are quite high compared to new construction. After all, in the past decades, little attention was paid to heat and sound insulation, as well as sustainability.

• Advantage: Favorable purchase price
• Disadvantage: High maintenance costs

Tips capital investors and owner-occupiers

The year of construction of a property and its age are important for both capital investors and owner-occupiers. Depending on your investment strategy, the advantages and disadvantages can affect you differently.

Old existing property for owner occupation: personal preference

As an owner-occupier, your well-being comes first. The same applies to your personal preferences and your very individual taste: Do you prefer a modern new apartment, a beautiful old building with stucco and high ceilings? A condominium in the old town, a townhouse in the suburbs, a country house in the countryside?

When thinking about your perfect property, take into account the defects that can occur depending on the year of construction and check properties before buying, using the checklists in the guide of the

• Real estate year of construction: checklists

Old existing property as an investment: return & cash flow

Old properties have a lower purchase price, but increase in yield and thus provide a fast and efficient cash flow after acquisition. However, caution is also required here: Depending on the year of construction, you must expect immense maintenance and repair costs. After all, not only a poor location has a negative impact on the value of a property, but also poor building fabric.

Conclusion: How old can a property be?

A general answer to this question cannot be formulated. It depends both on the age of the property and its respective defects, as well as on your individual preferences and goals. In any case, one thing is certain: the age of a house or apartment always affects the value of the property in the real estate appraisal. With sufficient reserves and maintenance, there are virtually no limits here.

You want to buy a property? Learn everything from A-Z: owner-occupancy or renting, financing a condominium, apartment search, real estate portals, brokers, valuation, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide.

✓ A guidebook
✓ All facts
✓ Insider tips
✓ Purchase checklists

Learn step-by-step the home buying process and lots of insider tips!

• Buy apartment

Calculate purchase price: Important factors

To calculate the purchase price depends on several factors. The location of the property, its location, as well as its year of construction are important. Once the purchase price of the property has been determined during the property valuation, the ancillary purchase costs must be added.

The final purchase price is therefore composed of

1. Purchase price of the property
2. Incidental purchase costs

Incidental purchase costs: land transfer tax, broker & Co.

Not all incidental purchase costs are the same in all federal states. Some incidental costs, such as the real estate transfer tax, differ from state to state. Sometimes it also depends on whether you are buying a house, an apartment or an apartment building. The investment strategy, i.e. income property or investment property, can also have a different effect on the ancillary purchase costs. If you also buy through a real estate agent, you will also incur a broker’s commission, which also varies by state.

Reading tip: Real estate transfer tax by federal state

So what counts as an incidental cost of purchase?

• Real estate transfer tax (3.5-6.5%)
• Notary fees (1.5%)
• Land register entry (0.5%)
• Broker commission (3.57-7.14%; 50:50 for private purchase)

in a home of one’s own in a dreamlike setting. What are the ancillary purchase costs here?

Example: Buying a house in NRW including incidental purchase costs

We will show you how these ancillary purchase costs add up to the original purchase price using this short example. Let’s assume you want to invest in a single-family home in NRW. To keep the example simple, let’s assume that after technical and commercial inspection the purchase price is 100,000 euros.

• Purchase price for house in NRW: 100,000 euros

Calculate real estate transfer tax in NRW

Depending on the federal state, the real estate transfer tax ranges from 3.5% to 6.5%. Our property is located in NRW. One look at the table and we find out: The property tax in NRW is 6.5%.

• Real estate transfer tax in NRW (6.5%): 6,500 euros

Notary costs: sealing the purchase contract

You will also incur notary fees. After all, the purchase agreement must be sealed. You can estimate this amount at 1.5% of the purchase price of the property.

• Notary fees (1.5%): 1,500 euros

Land register entry Costs: Transfer of ownership

The land transfer tax has been paid, as well as the notary? Very good! Next comes the land register entry. Here, the property you have purchased is now registered as your property. For this transfer you should calculate 0.5%.

• Land register entry (0.5%): 500 euros

Broker costs: commission & distribution

If a broker is involved, the broker’s commission is still due in the last step. It is important to note here: If it is a private real estate purchase, the broker’s commission is split 50/50 between the buyer and seller. However, if the real estate purchase is a commercial purchase (for example, on behalf of a company), then the commission and distribution are freely negotiable. The amount of the broker’s commission varies depending on the federal state. In NRW it is 3.57%.

• Brokerage commission (3.57% [3,570 / 2]): 1,785 euros

Conclusion: Purchase price and ancillary purchase costs at a glance

The actual purchase price of the property is therefore 100,000 euros. If the ancillary purchase costs are added, we are then at 110,285 euros, which must be invested in total. Our tip: Right from the start, make a concise checklist of the ancillary purchase costs that you will incur and add these to the original purchase price. This prevents any nasty surprises with regard to financing.

You want to invest a property and are looking for a suitable guide? Find here everything from A to Z: owner-occupancy or renting, financing a condominium, apartment search, real estate portals, brokers, valuation, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide.

✓ A guidebook
✓ All facts
✓ Insider tips
✓ Purchase checklists

Learn step-by-step the home buying process and lots of insider tips!

• Buy apartment

Equity investment in the purchase of real estate

Whether for personal use or capital investment, equity capital is required for every real estate purchase. Especially when buying your first property, the amount of equity you need to contribute is important. If you are buying a property for your own use, you should contribute as much equity as possible. If you are investing in a property as a capital investment, less is more.

As a basic rule:

• Self-interest = As much equity as possible
• Capital investment = As little equity as possible

Why is that?

Equity as a safety mechanism

In order for the bank to give you a loan for your property, it needs a certain security to get this money back in full later. That is why your creditworthiness is checked in advance. The more liquid your finances are, the less equity is necessary. However, if your expenses outweigh your income, you will need more equity. Once you have received your loan, you pay it back monthly through repayments.

The better your credit rating, the less equity you have

Important: As an owner-occupant, you have to pay back the interest on your loan yourself. Investors, on the other hand, can deduct them from their taxes.

Self-interest: This is how much equity you need

So as an owner-occupier, you need to put in as much equity as possible. In addition, the higher the equity, the lower the interest burden. Because the more equity you bring in, the less risk there is for the financing bank and the lower the interest rates are calculated.

As a general rule: 20% equity for owner-occupiers

Monthly Costs & Income

So how much should you earn each month? Our tip: The monthly cost of your loan should not exceed 40% of your net income.

Here is a calculation example:

• Income (net): 3,000 euros
• 40% = 1.300 Euro

So the monthly repayment including interest should not exceed the 1,300 euros.

Capital investment: This is how little equity you need

While you need as much equity capital as possible for owner-occupation, as an investor you enjoy the advantage of having to contribute far less equity capital. In addition, you can deduct the interest from your taxes. Ideally, even the tenant indirectly pays your interest. As a buyer of a property as an investment, your equity covers only 10-15% of the costs.

These include:

• Incidental purchase costs
• Real estate transfer tax
• Notary fees
• Court costs
• Brokerage costs

Rolling equity: Fast investments

Our pro tip: Make use of your rolling equity. But how does it work? It’s simple: You buy a property and contribute equity. Now this is paid out again through redemption and you can use it directly for your next investment.

Conclusion: This is how much equity you need!

So here is the rule of thumb once again:

• Self-interest = As much equity as possible
• Capital investment = As little equity as possible

In the case of personal use, your equity serves as security for the bank that it will definitely get your money back sooner or later. In principle, the equity you put in should not exceed 40% of your net salary. As an investor, on the other hand, you only need to contribute 10 to 15 percent as equity. The interest is to be borne by the tenant and with the help of rolling equity, you can invest directly in the next property.

You can find more about equity and real estate financing on my new project for real estate buyers (Immobilien-Erfahrung.de):

• Equity (external)