They Have Stated That Those Who Are Already In Danger Of Default Will Be Given No Assistance, As Well As Those Who Can Afford To Pay Their Mortages At The Increased Rates

Category: Finance, Real Estate.

The White House has recently unveiled a plan to help mitigate the wave of foreclosures that have recently swept the US as reports continue to predict that an even greater number( some estimate as much as 2 million) of Americans are likely to default within the next year.

These subprime loans have an artificially low introductory rate of between 7 and 9 or more after the grace period, which many real estate owners have been unable to cope with in recent months, sending shockwaves through global markets as investors in mortage- backed securites have been spooked. This plan involves the major US lending companies making an agreement to freeze the relatively low" teaser" interest rates that many Adjustable Rate Mortages are set up with, instead of allowing them to reset at their regular time, usually two years from the loan s issue. As their loans have defaulted, the bonds that have been repackaged and sold have become basically worthless. Since the cost of a forclosure is often over$ 50, 000, the investors have little choice if they want to salvage any of their investment. Bush s talks with mortage companies have been concerned with solving both aspects of this problem by extending the introductory rates to a select cross- section of subprime borrowers, thus preserving some of the cashflow supposedly guaranteed to those investors who believed the AAA bond rating for the securities into which these mortages have been sold off. However, the standards used to judge which borrowers qualify for the rate freeze have been left( some say intentionally) vague.

What is unclear is how the lenders will determine who is able to pay. They have stated that those who are already in danger of default will be given no assistance, as well as those who can afford to pay their mortages at the increased rates. Those who fall into the middle bracket, or who are likely to default at some point if rates increase but who are able to make their payments now, are the targeted borrowers for the freeze, which is proported to last from two to five years past the date at which the rate would normally reset. Many economists have recognized the mortage- related woes as a necessary reassessment of the American economy. Therefore, some foreclosures are still guaranteed, but the specter of falling property values, which threaten to send the entire US economy into a tailspin, will hopefully be offset somewhat. In combination with the falling dollar, recent developments in this crisis make it clear that the housing market of the US has artificially inflated for years, which would have to be corrected somehow anyway. These statistics point towards a reckless tendancy of many Americans to spend because the economy will always grow.

And, while this scenario is relatively unpleasant, the US has had unsustainably high levels of consumer spending, coupled with the lowest percentage of consumer saving in three decades. While this assumption has helped industrialize the world through American spending, it may do harm in the long run. If not, it may just encourage more recklessness by the government s taking responsibility for the market s woes. With any luck, the real estate landing will be softened and Americans will be more apt to work with their lenders. Only time will tell.

Do Not Wait To Buy A Beach Front Foreclosure At Auction

Category: Finance, Real Estate.

It seems like everyone is looking for a great deal in real estate and it is well known that foreclosures make great deals. But the foreclosure market is tight and there is a lot of competition for all types of properties and especially for beach front foreclosure property.

No matter whether you are looking for an investment property, a vacation home or your dream home, buying foreclosed properties can be an ideal way to purchase more property for less cash. Beach front foreclosure opportunities are snatched up quickly by savvy investors looking to make a profit by reselling the foreclosures as highly valued homes and vacation properties. In many cases, they even have a team of researchers that work to find foreclosure properties for them. Investors stay up late into the night scouring listings, and newspapers in, records their quest for the ideal property. All of this means that properties go fast with some of them only being available for days or even hours. The first thing that you need to do before you can buy a beach front foreclosure is to find a property that suits your needs. If you want to find a beach front foreclosure in this competitive market, you need to do your research, and move fast, pay attention.

Again, investors are all over beach front properties so you will need to work harder than they do if you want to buy property. In most cases, finding a property means contacting the courthouse regularly to get all of the latest foreclosure information. Reading published foreclosure listings rarely works because the homes listed have been in foreclosure for days or weeks. Do not wait to buy a beach front foreclosure at auction. This is the phase during which the homeowner still has control of the property and has only received notification of foreclosure. Many times there will be multiple bidders and the price will be driven higher than it would have been if the property had sold during the pre- foreclosure phase.

Often, you can work directly with the homeowner to buy the property at a bargain price to avoid foreclosure. This is the only time that the size of your bid or bank roll does not in itself guarantee you the beach front foreclosure. Remember, there will be many investors also trying to do the same thing so you have to sell yourself. See what you can do to take care of property owner s needs. This will set you apart from the corporate investor types. Be compassionate, be helpful, be understanding. Be sure to explain to the homeowner what you want to do with the beach front foreclosure.

Buying a beach front foreclosure in today s competitive real estate market is very tricky. They may be more likely to sell to someone who wants to use the property as a home rather than sell it to a corporation who wants to rent it out as a vacation property. You need to be one step ahead of the competition at all times and that means that it takes a lot of hard work to find the property you want.

Read more...

The Key To Finding The Best Real Estate In The Orlando Area Is Checking The Property Listings Against Your Personal Needs - Finance and Real Estate Articles:

There s no doubt that Florida s one of the hottest real estate markets in the United States.

At The Meeting, The Creditors Will Ask You Questions About Your Financial Situation - Finance and Real Estate Articles:

When you decide to file a Chapter 13 bankruptcy, the legal process grinds into gear.

Buying Property In Slovakia Is Straightforward - Finance and Real Estate:

Hidden in the heart of Europe, Slovakia is one of the continent s best- kept secrets, with its proximity to Poland, Hungary and Austria, it s a country of many contrasts, fabulous mountains and, with beautiful scenery winter- sports, friendly people and medieval towns. This small country is set to become the next property hot spot and possibly the most exciting new location for second home ownership or investment in Europe today.

What Makes Costa Del Sol Such A Sought After Place

Category: Finance, Real Estate.

Spain has always been a country where people go to relax and unwind. All the cities of Spain are beautiful and a tourist destination in their own right, but Costa del Sol is the one that is most popular.

Full of sunny and beautiful beaches and an abundance of natural beauty, it is a tourist s delight. The increasing number of tourists in Costa del Sol all the year round, has not only placed it at the top of global tourist destinations, but has also boosted the real estate scenario. What makes Costa del Sol such a sought after place? It is most certainly the best time to invest in Costa del Sol property. The main reason is that the climate there is extremely pleasant for a major part of the year. It is a perfect weather for holidaying and spending a relaxed and leisurely vacation.

It settles around 18 degrees Celsius on an average annually. In fact, it is mainly the affable weather that draws tourists to the city and is the main reason why more and more people wish to invest in Costa del Sol property. The Malaga International Airport is extremely close by. The other main reason behind the rise in the Costa del Sol property rates is that it is Spain s most well connected city. It is also close to neighbouring towns and villages. They may invest in the land either for commercial purposes( like building resorts, villas, hotels, etc. ) or even for settling down in a quiet place in the city. Not only Spanish people, but even people from other countries are buying Costa del Sol property.

Costa del Sol still has the old world charm of a slow and relaxed pace of life, it has moved, but with the times and has equipped itself with supermarkets, bars, restaurants, theatres, tennis courts, night clubs, beauty spas etc. to cater to the basic amenities of people who live and visit the place. All these factors have further increased the demand and the rates of Costa del Sol property.

Read more...

It Is Free And Easy To Obtain A Copy Of Your Credit Report - Adriana Neighbors about Finance and Real Estate:

You should check your own credit before searching for a home in the San Fernando Valley. A mortgage lender will run your credit in order to" qualify you" for a mortgage so it is recommended that you check your credit preliminarily to eliminate any future problems.

Mexico Golf Could Be No More Perfectly Placed Than In The Baja Peninsular - Finance and Real Estate Articles:

Mexico golf could be no more perfectly placed than in the Baja Peninsular. One stretch of the Baja Peninsular coast which is home to several internationally renowned golf courses is the 20 mile stretch of coastline leading from the popular tourist destination of Cabo San Lucas to the culturally rich San Jose del Cabo.

Old Buildings May Not Be Properly Maintained - Finance and Real Estate Articles:

There are a few things you need to be aware of before buying a condominium in Thailand.

Keep That In Mind When Pricing Your Home

Category: Finance, Real Estate.

Sunny Florida, the land of beaches, celebrities and Disney World!

With its beaches and bright weather, Florida has become one of the most popular tourist destinations in the world. Owning a house in Florida is a dream for most people, and the very thought can instill excitement in anyone. Hence, selling your house in Florida will not be a difficult prospect because of the ever- increasing demand for housing. Selling a home in any part of the world is a tedious procedure, which requires time and patience. However, strategic planning is required to sell your Florida home fast. A house that is to be sold should first be repaired, renovated and evaluated properly to get the best possible deal from the buyer.

It is important to note however, that you cannot just tag on the value that you think your home is worth. When you decide to sell your home, one of your primary concerns is probably how much money you will make from the sale. You need to price your house by the actual market value. They often think that by overpricing the home, they can always accept less in negotiations. Some people decide to go the route of overpricing the home in hopes of making a bigger profit. What they may not consider though is the fact that some people have very specific price ranges in their minds, and they may not even come and view your home if it is out of their price range.

A seller could be flooded with offers. Underpricing a home carries similar risks. It is important to think rationally when pricing your home. One good way to do so is to browse information for homes in your neighborhood in the last six months to a year. How do you determine the market value of your home? If the homes are similar, you can evaluate whether or not you are considering a fair listing price.

If you want to take the process a step further, you can do a bit of research and look at past listings. Make sure to compare homes that have similar structure and square footage. From this information, you can compare the list price with the actual final sales price. Think about the special features included in your house that might affect the price. You can gather information on the average difference between the two prices. Brainstorm about why some houses sold for more money than the others did. Many people find it helpful to tour homes for sale in their neighborhood.

You can also gauge how long it took to sell the home. What do you like and dislike about the homes? Redecorating or modernizing your home can help you make more money from the sales. You may want to copy some of the features. You are in direct competition with other homes for sale in your neighborhood. When it comes to selling your home, remember to do your homework. Keep that in mind when pricing your home!

A lot of research will go a long way toward maximizing your profit.

Read more...

They Have Stated That Those Who Are Already In Danger Of Default Will Be Given No Assistance, As Well As Those Who Can Afford To Pay Their Mortages At The Increased Rates - Willie Mak's Finance and Real Estate blog:

The White House has recently unveiled a plan to help mitigate the wave of foreclosures that have recently swept the US as reports continue to predict that an even greater number( some estimate as much as 2 million) of Americans are likely to default within the next year.

These Actions Beg The Question: Why Is The Fed So Darn Sluggish - Finance and Real Estate Articles:

In recent months, fallout from the sub- prime mortgage scandal has been estimated in the hundreds of billions, up from figures of$ 100 billion maximum from the Federal Reserve only three months ago.

Your Lender Will Send A Closing Statement - Sabrina Marak's Finance and Real Estate blog:

For many people, owning a home is a sign of accomplishment.

Now, Is A Better Time Than Ever To Buy Real Estate In The Florida Area

Category: Finance, Real Estate.

When it comes to buying a new home, many people find this to be the most capital intensive purchase they make in their life.

That is why, for those in Florida, taking advantage of the a home buyers rebate can leave you being able to get the house of your dreams for cheaper or, being able to, better still buy a new home that you otherwise would not be able to afford. For that reason, saving a couple of percentage points can make a real difference. Why Offer a Rebate? It is also the case, that when some real estate agents start offering rebates, that the other real estate agents will inevitably follow. Real Estate Agents offer a rebate because it gives buyers an incentive to choose them, rather than an alternative real estate agent. At the moment, you can take advantage of a buyers rebate, by ensuring that you choose a real estate agent that is willing to sacrifice their profit margins, to ensure that they get more customers, and happier customers. A rebate is called a new home buyers rebate for a reason- it can only be reclaimed on new homes.

Where Does the Money Come From? When a building company completes a development, they are looking to sell as much property as they can, as fast as they can. That is why they offer real estate agents 3% off of the value of the property. In order to do this, they try and give the real estate agents an incentive to ensure that they do whatever it takes to shift their new property. Now, you may ask yourself what happens with that 3% ? The reason for this is that, people are more likely to go with a real estate agent who is offering a 2% cash rebate and real estate agents are making similar margins than they do at the moment, when selling houses that have already been lived in. Well, before it would go into the deep pockets of the real estate agent, however now some real estate agents have decided that they will only take 1% and give the other 2% back to the person who is buying the house.

Why Buy Now? Not only will you be able to save money now, but you will not able to into the future. Now, is a better time than ever to buy real estate in the Florida area. Why? Since real estate agents are showing they are currently being overpaid, by having so much money to give back to their customers, the development companies may end up reducing the price that they pay out- meaning, that you will not be able to get a rebate. The reasons are two fold. The other reason is that, as more people hear about the rebate, property prices will continue to rise until such time as we reach an equilibrium- which means that nobody will save anything and real estate agents will end up with weaker margins.

Read more...

The Report Notes That There Is More Than Just Supply And Demand Driving Rental Rates In The City Up - Finance and Real Estate Articles:

For a good number of years now, renters of NYC apartments have had the extreme displeasure of paying the highest rents in the country.

Everything From Junk To Real Estate Can Be Sold At Auction - Finance and Real Estate Articles:

Everyday we watch as the rising number of bank owned properties increases.

You, As A Home Buyer, Must Receive A Good Faith Estimate From The Lender Or Mortgage Broker - Finance and Real Estate:

Sadly, dishonest activity exists in the marketplace. As a home buyer, there are certain rights granted to you as you search and apply for a mortgage loan for your home.

Dealers, Buy And Sell, By Contrast Contracts, Not Properties

Category: Finance, Real Estate.

Most of us are smart enough to realize that no real estate system is foolproof, and if anything seems too be good to be true, it probably is. Here are some strategies for financially constrained aspiring investors to begin generating real estate cash flow.

However, that doesn t mean that you need excellent credit and a surplus of cash to get started in real estate. You don t have to own a property to profit from it. Retailers buy properties outright and sell them for a quick profit. There are two types of quick- sale real estate investors: Retailers and dealers. Their risk is highest, but so is their potential reward. Dealers, buy and sell, by contrast contracts, not properties.

Retailers typically need substantial cash for a down payment and at least decent credit. They find bargain properties and sign purchase contracts with their sellers. This is known as assignment of contract. Dealers then sell these purchase contracts to retailers, making a solid profit in the process. Usually, the only cash required is the earnest money to secure the deal. Use a double closing for greater profit potential. A good dealer can then flip the contract for a quick$ 1, 000 to$ 3, 000 without ever taking possession of the deed.

A double closing allows a dealer to earn a higher profit margin than an assignment of contract. The dealer is protected because she has already received her proceeds from the sale of the contract. With an assignment of contract, there is always potential that the deal will ultimately fall through. But the retailer who buys the contract is wary of the deal falling through and will factor it into the price he is willing to pay. However, with this greater risk comes a greater reward. With a double closing, the dealer assumes more risk because if the deal falls through, she receives nothing. A double closing begins with the dealer signing a purchase contract with the property owner.

The property owner signs the deed to the dealer, who then signs it to the retailer. Then the dealer signs a contract with the retailer, in which the retailer agrees to buy the property from the dealer at a higher price and deposits that amount in escrow. The retailer then signs the loan documents, and the process is complete the property owner is paid his asking price, and the dealer is paid the difference. Be a scout no cash or credit required. Note that the dealer came to the table with no money, and her credit was never an issue. Scouts are a third type of real estate flipper. Scouts face even less risk than dealers and have almost no cash or credit concerns.

Instead of flipping actual properties or contracts, scouts flip information. They simply gather information about distressed properties and sell it to interested dealers and retailers. Typically a scout will gather the following data on a potential deal. In effect, scouts do the dirty work for real estate investors, and investors are willing to pay them handsomely for doing it. The owner s name and contact information, information about the, the asking price mortgage and whether payments are current, outstanding liens on the property, A photograph of the house, Pertinent information about the owner s motivation to sell. Investors typically pay scouts$ 500 or$ 1, 000 for good information. Is he in the middle of a divorce, job transfer, foreclosure, etc.

But what happens if an investor doesn t pay? Don t take any more deals to them. Simple. Successful investors realize the value of good information, and they are more than willing to pay for it. Prior to 1989, almost all home loans were freely assumable. Take over the seller s mortgage payments. This meant that anyone could take over the payment of the loans without objection from the lender.

This means that when ownership of a property is transferred, the lender can demand payment in full of the outstanding loan. However, due to rising interest rates that began in the late eighties, virtually all home loans issued since then contain a" due on sale" clause. However, due on sale is merely a clause not a law. If you buy a property and take over the loan payments, there is a distinct possibility that the lender won t even notice. It is the lender s prerogative whether or not to exercise this clause. There s an even greater chance that the lender will choose not to exercise the due on sale clause, as long as you make timely payments.

You can potentially buy properties without a credit check. After all, the cost of enforcing the clause is significant, and as long as the lender is being paid, it is unlikely to care who signs the monthly checks. Real estate success always requires an investment. That is not to say that success comes free and easy. There are ways to profit from real estate without significant financial investment. At the very least, you will need to make a substantial investment in yourself. Even with a million dollar real estate portfolio, your brain will always be your# 1 asset.

In order to succeed, you must be willing to work hard. Be sure to invest in your education on a daily basis and learn as much as possible about your local market, and investment strategies, real estate law.

Read more...

There Are Several Ways To Learn More About Foreclosures - Lula Westergard's Finance and Real Estate blog:

The number of foreclosures rose 50 percent between February and March this year, and this seems to be the current trend that is continuing to grow this year. With the flood of houses on the market, prices are falling- especially foreclosures.

I Think With The Rail Link And New Infrastructure You Will Probably See Property Prices Rise, " Said Hetal Shah, Director Of Investors Provident - Imogene Wilde's Finance and Real Estate blog:

A report in the press says that prices in France are set to rise significantly in the latter half of this year. "Property prices across France are likely to be impacted by the current initiative to improve the rail infrastructure in the country, experts have predicted. It is generally believed that improved rail services are unlikely to have as great and impact as new low- cost flights to previously little- known regions of the country, he nevertheless expressed his confidence that prices will rise, particularly in popular holiday destinations. "Any kind of interest definitely does have an impact because people who have been very sceptical about those areas will start to see that there is more new development coming in, and more infrastructure means more money coming in to the area as well, " he said.

Some Molds Can Be Deadly - Shari Arreguin's Finance and Real Estate blog:

Molds are part of the natural environment. and is certainly a problem in houses in the Nashville, Tennessee area. But indoors, mold growth should be avoided.

Now, 000 New Rental, Even With 92 Units This Year, The Stock Is Still Too Little To Meet Rising Demand

Category: Finance, Real Estate.

You don t have to read several media sources to notice that there are two growing trends affecting the leasing and rental market.

Lauderdale( 168% ) Atlanta( 163% ) Detroit( 158% ) New York( 157% ) Tampa( 156% ) Orlando( 153% ) 1San Jose/ Silicon Valley( 144% ) Note that Los Angeles and San Jose, which are cities located in California, show a booming increase in online searchers looking for affordable rental housing. More and more renters are searching for their next apartment online as opposed to traditional methods and rental prices are rising as consumers choose to rent rather than buy in order to wait for home sale prices to improve in affordability- - as is clearly evident in California where the median sales price of a home is at$ 560, the median sales, 69Across the nation price of a home is at$ 248, 00 According to Apartments. com, the company reported nearly 45 million visits in 2006, an increase of 20 percent over 200The top searched markets on the site with the highest growth over 2005 were: Chicago( 214% ) Los Angeles( 203% ) Phoenix( 182% ) Ft. Unfortunately for many renters, as reported in a 2/ 4/ 07 online article in USA Today, landlords are expected to raise apartment rents for a third- straight year in 200By no means are we attempting to take pot- shots at landlords, the objective is to give the perspective of how national rental rates compare to those in California. "With the projected rise of 5% this year, rents would be 14% higher than at the end of 2004, the report says. To feed that buying frenzy, 000 apartments were, about 300 converted to condos for sale in the past three years. From 2000 to 2004, most landlords couldn t raise rents because so many tenants were leaving to buy houses or condos. Now, 000 new rental, even with 92 units this year, the stock is still too little to meet rising demand. Even with this year s increase, the national median rent will be$ 943 a month, only 60% of the median mortgage payment of$ 1, 56" In California, the median rent is at approximately$ 1, 400 per month which is 47% of the median mortgage payment of$ 2, 52 And data from a Census Bureau report in 2000, showed that the highest rental markets were in Irvine, Santa Clara or, Sunnyvale Fremont, where median gross, all California cities rents all topped$ 1, 200 a month.

Rents are rising because the payment gap between renting and owning remains wide. That was six years ago. S. cities. California cities claimed nine out- of- ten spots on the Census 2000 s list of highest rents among large U. The only non- California city in the top high- rent tier was Stamford, Connecticut, at$ 1, 007 a month. Irvine, Calif. - $1, 272.

Ten Highest Rent Cities. Sunnyvale, Calif. - $1, 270. Fremont, Calif. - $1, 196. Santa Clara, Calif. - $1, 238. Thousand Oaks, Calif. - $1, 131. Daly City, Calif. - $1, 074. San Jose, Calif. - $1, 123.

Simi Valley, Calif. - $1, 058. Huntington Beach, Calif. - $ 985. Stamford, Conn. - $1, 007. Keep in mind that Southern California is a sprawling geographic area dotted with several hundred communities, it would be ridiculous to claim that there are no affordable rental areas. In order to get a good perspective on rental prices and desirable areas to live in, conduct a few online searches and check out sites such as Realtor. com, com and Rent, Apartments. com. However, as a renter you can realistically expect to pay higher rents in more desirable neighborhoods or communities located by the coast. If living in the" Golden State" is your dream, there are now more online rental websites available with virtual tours, mapping tools and other information, so you can shop for a California rental from your desktop.

Everyone Involved, The Bank And, The Owner The People Who Rented For A Holiday Are Happy

Category: Finance, Real Estate.

When the economy is good and people are taking two or three holidays a year, letting out an overseas property and getting good occupancy levels isn t that difficult. Everyone involved, the bank and, the owner the people who rented for a holiday are happy.

And with low interest rates, the rentals will cover the mortgage and often leave enough for a profit, and at the end of the mortgage the property is owned outright by the buyer, leaving him or her with a valuable asset good for a pension, or for a retirement home in the sun. But in times of economic troubles the picture isn t so happy, and it s at these times that potential buyers should really way up if the area they are considering buying in is a good investment. But even in times of economic downturns this can lead to a new generation of overseas property owners picking up properties on the cheap, ready to rent out when times get better, and perhaps sale at the top of the next economic cycle. The number of people renting villas and apartments abroad drops, the mortgage payments aren t covered, and if the owner hasn t got deep enough pockets to pay the shortfall between the rental income and the mortgage the home is repossessed. So where is a good place for new overseas property buyers to look for? One UK based villa holiday specialist company has analysed which areas produced best booking returns for the 2007 villa holidays season, and Spain came out top. The answer is where the holiday markets are still strong despite the recession, where rental incomes might not dip as much as in other areas.

Within Spain it s important to know which regions- and even narrower- which areas are performing best. The Canary Islands of Tenerife, Gran Canaria and Lanzarote were also popular last year and expected to be so again in 200 On the Spanish mainland the Costa Blanca was the most popular region, the Costa Blanca being made up of areas like Torrevieja, the Jalon Valley and Denia. The regions of Spain showing good villa holidays rental potential include the three Balearic islands of Menorca, Ibiza and Majorca. Once in a region where holiday villas are for sale look for something that has general appeal but also appeals to a particular market- a golf course is a good example. The island only has one golf course, and if an, Son Parc overseas property buyer was to invest in an apartment or villa close to Son Parc the occupancy rate could be higher than other parts of the island, and the rental prices could be higher than those areas further away from the golf. Menorca is a prime example of where it could make sense to buy close to a golf course. Menorca is the second largest of Spain s three Balearic Islands.

Daytime summer temperatures hover around 27C in Menorca. The other two islands are Majorca and Ibiza, Majorca holiday villas could also benefit during any recession as it is becoming increasingly popular and taking market share away from other holiday rental destinations. Lovely peaceful days are on the menu on this island, a pace that attracts holiday makers in their 50 s and 60 s- who often have the spending power to rent a villa for a week or two, helping the owner with mortgage and other costs of maintaining an overseas property. Do some research- and don t accept estate agents high occupancy levels at face value- the estate agent is after a sale and acting for the seller, not you- do your own research locally first before committing to a sale- and use a lawyer to complete the sale to try and make sure there are no hidden problems. Overall the message is clear- in times of an economic downturn be careful where you buy a holiday home if you need to take a mortgage out to finance it.

To Understand What Risks An Investor Takes, Let Me First Explain What They Are Doing

Category: Finance, Real Estate.

No Experience, No Problem!

No experience, no problem. Don t worry if you have no construction or maintenance background, you can still buy and sell houses without having to do any major repairs yourself which allows you to make good money quickly in the real estate market. To understand what risks an investor takes, let me first explain what they are doing. First, is the fix and flip method which typically involves more extensive remodeling to take place before the house can be sold to an end buyer who will actually live in the property. There are basically two ways to flip( wholesale) a property. This strategy is what is typically portrayed in all of the reality shows that have become popular in the past couple of years such as Flip This House, Property Ladder, Flip That House, etc.

What the reality shows fail to share with viewers is the behind the scenes action which takes place in order to actually find a profitable deal in the first place. Behind The Scenes- What Really Happens? Most of the so- called investors portrayed on TV usually like to throw out figures which represent their purchase price, expected fix up costs and anticipated sale price but they never seem to disclose how they actually found the deal. These excluded details leave the viewer thinking that they can easily do the same as seen on TV. Viewers are left in the dark and only see various phases of the remodel and then the investor concludes the show by stating how much profit they think they ll make. Typically, this is not a good idea. Breaking It Down- Step By Step.

Okay, the second method of wholesaling( flipping) a house is the preferred strategy for seasoned investors as well as novices who want to only focus on finding deals and moving on to the next one quickly, not getting bogged down with expensive remodels that often take months to complete and a ton of cash reserves. Okay, here s a basic primer on the behind the scenes of wholesaling or flipping a house. Once the property has been located and a deal has been made with the seller( homeowner) , the investor then offers the property for sale to either another investor( in the case of a complete junker property) or to an end buyer if the house only needs light cosmetic work or can be sold in its as- is condition to a hopeful homeowner. An investor finds a property s/ he can buy and resell for a profit quickly using various search strategies. Investors can usually find a buyer in a timely manner or already have someone in mind that is looking for that particular type of property. The Nitty Gritty Of It- A Case Study. This simultaneous transaction can oftentimes be accomplished by a double closing through a title company who understands these types of deals.

These are usually properties in pre- foreclosure status but not necessarily. The buyer is offered the home at a little( or a lot) below market value to generate a fast sale. The home owner is motivated to sell for whatever reason and needs to get out from under the mortgage to save his or her credit, etc. The investor is then basically a middle man at this point, simply locating a seller who wants to sell and a buyer who wants to buy but remains a principle in the transaction to avoid being mistaken for brokering without a license. For example, a house has a retail value of$ 200, 000 and the investor agrees to buy the property for$ 120, 000 because of the seller being highly motivated to sell. She or he then gets paid the difference between the asking price of the original seller and the selling price of the new owner.

The seller agrees to this price because he has to get out from under the mortgage before the bank forecloses. If the investor agrees, the deals are closed with the investor pocketing$ 10, 000 for doing nothing more than knowing what to do and setting the deal in motion. The investor then markets the property for maybe$ 130, 000 and finds a new buyer willing to pay that price. There are other fees and out of pocket expenses, but in the long run, the investor has made a nice, quick profit using none of their own cash or credit in the process. That s how it is supposed to work in a perfect transaction. Not So fast! In reality, when an investor is flipping real estate, there are complications which can surface costing quite a bit of money.

At that point, the cost of the house just went up. For example, the seller may not have disclosed a tax lien, or equity line, second mortgage of credit. Your buyer may not have good enough credit to obtain the loan as it was originally quoted. The investor may be forced to pay points to lower the interest rate for the mortgage to be accessible to the new buyer. You did check ahead of time, right? At that point, the selling price just went down.

Unfortunately, the deal just crumbled before your eyes. Then there is the problem with the lender or title company not being willing to do a double closing. In the real estate investing game, it s important to remember that when an investor wants to start flipping real estate, the best way is the old way. Fix it up and find a buyer quickly. Buy the vacant house. Then put it on the market for a reasonable price.

This is a more stable way of doing things when investing in real estate if you have a firm understanding of remodels or a basic construction background. Pocket the difference. However, rules were made to be broken and you may be willing to do just that if the potential profit is high enough. In closing, remember that you should always be prepared for any crisis when it comes to investing in real estate. Remember The Boy Scout Motto- Be Prepared! Understand that houses can be vacant, which means you are responsible for the payments, and insurance until, taxes you sell the house if that s what you promised the seller. The danger comes when you try to over price a house in an area that will not support it.

The key to profiting in real estate is to put as little into the house as possible and sell it for the highest price available- quickly. When it comes to flipping houses, common sense and a clear understanding are the best insights to profits.

Short Sales Are The Real Estate Equivalent Of Repossession Auctions

Category: Finance, Real Estate.

Many new investors thrilled by the novel idea of making money by buying and selling real estate, are persuaded by short sales or sometimes called" foreclosures" .

Occasionally, homeowners are forced to sell their property for less than the mortgage they own on it. Short sales are the real estate equivalent of repossession auctions. This is what a short sale is. Banks and other mortgage suppliers dislike short- selling so it can take a long time for them to approve any offer made on a short sale property. The main consequence of a short sale, for the property owner in particular, is that the bank sets the final guide price and the terms of sale. This usually amounts to a wait of up to six weeks for the mortgage- provider's approval. Interest rates will have risen and it is possible that you will be unable to buy the property that you bid on six weeks previously.

During this period, in the current market, mortgages will have changed. Obviously, for any sort of speculator, time is money. Fortunately, there are other strategies available to investors that allow for changes in the market. Even for buyers interested in personal property as a home, this is a lot of time on such a risky deal. Investing in a buoyant market such as the one in Las Vegas now, is sure to build a very positive portfolio in the years to come. A true investor understands this and so will usually avoid the temptingly low prices of short sale real estate.

There is no harm in buying property for a high price if you are confident that the value of that real estate will grow. In fact, Las Vegas provides decent profits for any sensible real estate investor for reasons pertaining to the current market. You are likely to find many examples of short sale properties in Las Vegas because to the current market conditions. Constant developments and new employment opportunities make it a reliable market. There are a lot of people that paid too much for his or her property originally. The key point to take away from this article is while short sales are risky, the can be very profitable if you have patience in the market. Or who has altered the real property state in a way that was damaging to its value.

The key is to find a buoyant real estate market like the one that exists in Las Vegas. Equally, people buying real estate as a permanent home may want to ensure that they don' t waste their family's time on short sales or markets that will lose them money. Sensible investments in a good market will repay you with a nice profit margin. I hope this has helped you in your efforts to make money from real estate.

This Process Means You Have Been Approved For A Specific Loan Amount On A Home

Category: Finance, Real Estate.

Buying a home is a huge investment so you don' t want to commit yourself to it without doing your homework. Money generally talks though so taking the time to get your loan pre- approved means the seller will be more likely to accept your offer.

Since you will likely be financing the property you want to get the very best possible price for it. This is better than waiting for a higher offer but not knowing if the person will be approved or not. This process means you have been approved for a specific loan amount on a home. Getting pre- approved is more in depth than getting pre- qualified. All of the background checks and financial verifications have already been done. Find out what other properties in the area have sold for on the market recently to get a good idea of what you should offer for it. All that would remain to be done is for both parties to accept the offer and for an inspection of the home to be completed.

You can also check public records at the county clerk's office to find out what they deem the property to be worth. It is harder to buy a home through a private seller because you have to do all the negotiating on your own. You can either purchase a home from a private seller or through a real estate agent. You also have to be very knowledgeable of the material in your contract to ensure you are getting what you think you are getting. However, many owners that sell their homes privately are able to offer you a lower price because they don' t have to cover the fees of the realtor. Most people are much more comfortable buying a home through a real estate agent. You can have someone in the legal field or a real estate agent read over the materials for you for a low fee to verify everything is accurate.

This is done so the lender can get the money that is due to them. Homes that are in foreclosure are generally sold at an auction for what is owed on them. You will need to have a line of credit or loan money in place as you will need a percentage of the money down at the time of the auction. You will need to have the home inspected as well to make sure you are getting a great price on the home.

How Much Home Can You Really Afford

Before purchasing a new home, the smart home buyer will take several things into consideration. Researching local communities and obtaining information on schools, and amenities, community services.

There are decisions to be made in regards to finding a good realtor and/ or a reputable home builder. And if this is not a first home purchase, decisions on how to market and sell their current home. Evaluating your credit report. It is, financial preparation that, however is most important for the smart home buyer. Your credit score can determine the type of loan you get or if you get a loan at all. Before you begin shopping for a home, you should obtain a copy of your credit report and ensure that there are no major blemishes that will stand out to a lender.

Individuals with low credit scores are not excluded from obtaining a mortgage, but it definitely makes the process more difficult. You may already know that reduced credit scores are the result of late payment or non- payment of credit accounts, but did you know that lenders also look at your available credit vs. balances owed? Some individuals make the mistake of consolidating and canceling credit accounts because they erroneously believe that too much credit looks bad to lenders. The closer your credit balances are to their maximum limits, the lower your overall credit score. This is not necessarily true. This is why you should make sure that you have more available credit than balances owed.

The most important factor that the lender takes into consideration is how close the applicant is to being" maxed out" on their credit. Debt to income ratio. Basically, your debt to income ratio is how much money you bring in vs. your total amount of debt. Another major factor in a lenders determination of whether to extend a mortgage is the all- important debt to income ratio. This includes credit cards, car payments, real estate, student loans, and any other debts that you may have incurred. If at all possible, you should sell your existing home before purchasing a new one. Debt to income ratio can make it difficult to buy a new home before selling your existing home if your lender does not think you have the income to cover two mortgages.

Also, you should pay off as many outstanding debts as possible before applying for a new mortgage. After evaluating your credit score and debt- to- income ratio, you should have a much better idea of whether you can afford a new home, how much you, and if so can afford to pay for your new home. How much home can you really afford? Be sure to take insurance and tax payments into consideration, as these are often added to your monthly mortgage payments. Once you have your financial information in order, it is time to find a lender. If you decide against the monthly addition, you will need to produce a lump- sum payment and should plan accordingly. You can choose your personal bank, a private mortgage broker, or one of the many online services which provide quotes from several different lenders.

Pre- approval puts you ahead of the game. Your realtor or home builder can help with finding the best mortgage broker. After choosing a lender, it is a good idea to complete an application and obtain pre- approval for your mortgage. This information is critical when deciding the ideal price range for your new home and saves you the time and trouble of looking at homes outside your target price range. This does not obligate you to accept a mortgage or terms, it simply gives you an estimate on the maximum loan amount you can obtain from that particular lender. If you find credit issues or blemishes in the course of your preparations or during the pre- approval process, it doesn' t necessarily mean that a new home is out of your reach. Take this into consideration when evaluating your target price range.

Some lenders will approve a mortgage for the buyer with imperfect credit, but it often comes at the price of a higher down payment and interest rate. Reaping the benefits of preparation. You now have a target price range for your new home that suits your individual budget, and pre- approval for your mortgage. By completing these simple preparations and realistically evaluating your financial situation, you will be starting out ahead of the game when it comes to purchasing your new home. Now you can put all of your focus and energy into finding the perfect new home.