Real estate

Real Estate In Spain

2009-09-13T10:13:00.001-07:00

Real estate Torrevieja is a great investment if you choose to do so. There are many possibilities as well as options to consider when looking into investing here. You can look into vacation homes or rental properties depending on your needs and desires. With so much to offer in this town there are many reasons to invest here.

What To Look For

Make sure you plan wisely when investing in Torrevieja real estate. Look at visiting the area many times and trying to determine what the best areas will be to invest in. Look into all of your different options and take the time to do your homework. Look into all of the different options that are available before you jump the gun.

Make sure that you make multiple visits to the area you would like to invest in while in Spain. Try to find some of the different properties on your multiple visits so take notes and try to find all of the different places you can visit as well as the different locations and styles of property that you would like to invest in.

Look into all of the items that the property has to offer. Such as the amenities, or how close you are to the Alicante. Look at the various things that are offered to the people of the community. See how the nightlife is and what type of entertainment is offered in the community. Determine if this is what you want near you and the property that you will be looking into getting.

Determine the future of the property you are looking at. Will it be able to meet all of your needs? Does it have sufficient insulation and cooling system for all seasons if it is going to be a permanent residence or was it a summer home that will be need to be updated to meet your needs.

Applying For Money To Purchase Property

Prices have soared recently for the property in this area. So make sure you are able to find a company that will be willing to loan you the money that is needed for your property investment. You could look into Spain based companies or you may want to look into a company that is local to you.

Make sure you know what the real estate laws are for Spain and you are aware of what you will be getting into so you will be properly prepared for your investment. Also, make sure you know what paperwork you will need to invest in this property so you can get it all together and be ready to close on the deal quickly

Joint Ventures in Real Estate

2009-09-13T10:12:00.000-07:00

Group investment in a property is a growing trend among people who do not individually have the capital to purchase real estate. The benefits can be many, including home ownership, shared expenses and shared equity. However, there are some pitfalls that need to be recognized and addressed before you embark on this venture.

Joint ownership is certainly not a new thing, but it is more commonly seen as a dual investment between a husband and wife or siblings. Multiple people sharing the expenses of a property can greatly defray the individual costs and save more money down the road, especially if one of the parties has some knowledge of maintaining and improving buildings. Also, if one person gets sick or dies or is otherwise unable to make their payment for one pay period, the others are more likely able to take the shortfall. This won't mean that they'll be okay with it, but it will mean that the bank won't foreclose on the house.

Pitfalls with joint ownership usually involve lack of communication between the parties at the time of purchase. No matter how strong the bonds of friendship, family or romantic attachments, it is wise to have everything spelled out in the contract. It helps to get a clear idea of what everybody is looking for in this venture and put down clear guidelines of conduct in the event of a conflict between the owners.

Things to consider before investing with others to buy a property are:

- What are the goals of this purchase?

- What kind of budget is going to be needed?

- What kind of taxes are each of the parties going to be looking at?

- How are the parties going to resolve differences of opinion in regard to how the property is managed?

- How are the parties going to handle repairs/maintenance of the property?

- Is there going to be money set aside for emergencies? Where is it going to be held and how are people going to contribute to it?

- If all parties are living together, are they going to be able to do so amicably? What rules are going to be set out so that this can happen and what consequences will there be for not following them?

- What happens if one of the members loses a job/gets sick and can't make a payment? How will they repay the others?

- What happens if one of the members dies?

Issues that are addressed early stand a good chance of being resolved early, so that differences don't end up splitting up the investors and causing loss of money through mismanagement of the property or legal battles. It would be wise to involve a real estate law professional in your purchase in order to clearly explain to all the buyers what legal and financial ramifications are involved with this kind of purchase and ownership.

A joint purchase of a property can get people a foothold on the real estate market that they wouldn't otherwise have. However, this is not a venture that can be conducted on a whim or without serious discussion on the problems that a group may encounter in the event that things don't go smoothly. With careful planning, budgeting and open communication, though, co-ownership of real estate can bring about significant rewards. It is up to the individual to determine whether this form of ownership is right for them.

Real Estate Agents

2009-09-13T10:11:00.000-07:00

If you are thinking of buying a new home, you must be aware of the difference between seller agent, buyer agent and dual real estate agents. Using the wrong kind of agent could affect the financial wording of the deal and have material legal implications. Read on to arm yourself with an understanding of the difference and how to use it to your advantage when buying a home.

Real estate law has evolved to require that an agent list who they are representing. This is normally done in you first meeting with the agent through a formal disclosure document that you must sign that identifies whether the agent is representing the buyer or seller. A seller's agents represent the seller. Most real estate agents believe it or not are seller's agents. They may be friendly to you as a potential buyer, escort you around town to show you multiple homes and help you prepare an offer on a home. However, the agent is working for the seller and looking out for the interests of the seller. And vice versa, buyer's real estate agent actually works for the buyer and have a fiduciary responsibility to look out for the interests of the buyer. There are also dual agents, but we’ll come back to that in a moment.

More often than not, this has nothing to do with who actually pays the agent. Why is this important? If you are the buyer, you should seek a good buyer agent because of the financial, legal and ethical implications. A seller's agent has a fiduciary responsibility to the seller not to you as the buyer. This means during the negotiations a seller's agent will be working for the seller. Here's a real life case in point to help clarify. Suppose an agent discovers that the seller must relocate for a new job, has become highly motivated and is now willing to accept $25,000 under the listed price. If the agent is a buyer's agent he/she will be obligated and very likely excited to tell you this message. However, if the agent is the seller's agent working for the seller - he/she does not have to convey this message to you and may not give away the data initially in an effort to get the higher offer from you.

Now, back to dual agents. Periodically your will find an agent that says they are operating in a dual role; meaning they are functioning as a buyer and seller agent. Be careful in this situation. As a buyer you may want to stay clear of a dual agent. Realistically, the dual agent is unable to fully negotiate the buyer's interests without adversely affecting the seller and visa versa. There are some outstanding agents that can operate effectively in the dual role. However, as a buyer, you should understand the potential conflict. If you want the lowest price on a home, seek a outstanding buyer's agent whose loyalties are aligned exclusively with you. You may be wondering who ultimately pays for a buyer's agent. Normally the selling agent lists the property in the MLS ("multiple listing service") and shares the commission with the agent who brings the buyer. Generally, the seller's agent and the buyer's agent split the real estate commission with fifty percent going to each agent. This means that although the buyer's agent is working for you, the seller is funding the commissions to the buyer's agent. At various times you may find a listing where the selling agent does not agree to share the commission with the agent who brings the buyer and in that case you would have to settle on who will pay for the buyer's agent. Recognizing the financial, legal and ethical implications of buyer, seller and dual agents is important to you as a home purchaser. Prior to engaging in any real estate transaction as the home buyer, find yourself a good buyer's agent with at least 10 years of experience in your market. They will have a fiduciary responisibility to act in your best interest and have the experience to help you negotiate the lowest price for the home.

Real Estate Investing Clubs

2009-09-13T10:10:00.002-07:00

The real estate market is a profit making and investment generating industry component. The industry works within extensive networking that is handled by the various active contributors like the agents and brokers and most importantly, the buyers and the sellers. The networking results in global connectivity via telephone, Internet and personal contacts. The result of such extensive real estate networking is dedicated lists and real estate investing clubs. The latter, the real estate investing clubs, comprise members who are either or all of the industry components.

The clubs operate online and offline and are managed by dedicated people who are well versed in the nuances involved. These information generators first identify buyers and sellers from across the globe. The next step involves getting detailed information on the properties – their location, utilities and amenities included and facilities near by and the condition via photographs and 3D images. Then, the managers of the real estate investing clubs have to categorize the information and list the information generated on each property according to priority, with profit being the ultimate goal of each listing.

The online clubs comprise of many such listings and user-friendly forums that enable the members to chat and keep in touch. The real estate investing clubs provide extremely useful information to people around the world who aspire to generate a profit from this industry. The clubs operate in away that both, the novice and expert real estate investor, get ample of opportunities to profit from every transaction closed. The real estate investing clubs provide the industry across the globe with a great and versatile forum to gain more information within a network of reputable contractors, brokers, agents, realtors, lawyers and real estate accountants.

The access to membership to the real estate clubs is easy and available 24x7. Each club offers visitors a form and once you fill it in and agree to the terms and conditions, you are raring to go! The real estate investing clubs make available tips and advice on how to close lucrative deals, strategies and surviving the fluctuations within the industry. These clubs are run by and maintained for the community and prospects all over the world. Being part of a club enables investors all over the world to establish contact with counter parts and strategies being tried and tested within the industry in other parts of the world.

Real estate investing clubs are becoming popular across the globe because of the instant access to information it facilitates and the timely action that can be taken on account of the same. There are a number of industry bigwigs who admit to tapping the potential of the information available within these clubs prior to taking any decision. The real estate investing clubs act as industry resources for sensitive data and a forum for sharing vital information across continents. This has enabled the real estate investment enthusiasts to absorb the best and do away with redundant methodologies still being practiced in some markets.

The clubs allow access to listings, names and addresses of buyers and sellers, latest industry news and reviews, laws and by laws that affect the functionality of the system and the latest strategies adopted in different parts of the world.

Real Estate Investing

2009-09-13T10:10:00.001-07:00

Have you begun real estate investing? If you have, congratulations to you; you see, it is one of the most profitable businesses that you can be involved in. Once you know how it all works, you can already reap huge money in the coming months and years.

If you have a weak heart, this is not the business endeavor for you. True enough, real estate investing can give you huge profits but then if you don’t know how it works, you can also lose huge money. In fact, many investors leave the business due to bankruptcy. If you know where you’re going, you will not get lost. Educate yourself about the many areas, foundations, and basics of real estate investing to ensure that you will not lose more money.

What do you need in order to be a successful investor? First, you need to learn from experienced investors. Ask them out politely and they will gladly give you advice and helpful tips.

There are many online real estate courses that you can sign up but just make sure that you don’t end up overloaded with information. Just learn the things that you need to know and you’re all set. One course is enough and as you pursue your career, you can take only certain parts of the courses you don’t know. By following the steps involved in starting the real estate business, you can enjoy successful investing. If you’re overloaded with information, you will find it difficult to start.

By learning only the essentials, you can start immediately and just continue learning as you work your way through various deals and transactions. Choose the real estate investing course carefully. Check if the instructors are investors themselves. To be able to teach other people about real estate investing, they should also be in the business.

Don’t believe in the so called ‘gurus’ online. There may be expert gurus that teach about real estate investing but not all of them can be trusted. If you can find a free real estate investing course online, you can take advantage of that. Do some careful research and choose among several good online courses.

You can even purchase eBooks about real estate but you should choose them well. It’s much easier to learn and acquire new knowledge these days, thanks to the internet. You can also access forums to get helpful tips and suggestions from fellow investors.

Once you’ve devised a strategy or game plan, you can already access the industry. Well of course, by now, you’ve already generated enough capital to cover your investments. It’s already expected that you will spend huge money at first but if you focus in the right area and you’re knowledgeable enough, there is plenty of room for success.

So where are you going to concentrate? Some say that purchasing properties and renting them out afterwards is a good choice because you can expect monthly income from the rent. However, you also need to become a landlord. The value of the properties will continue to appreciate and its up to you whether you will resell the property or not.

So, are you going to enter the real estate industry? Real estate investing may be the thing for you but you need to be prepared. Get adequate knowledge first before you start investing.

Real Estate Investing Tips

2009-09-13T10:08:00.000-07:00

Investing in real estate has long been considered as a safe and high return investment. "Flipping" in real estate investing has become very popular over the last few years especially among the speculative real estate investors. Flipping refers to the buying and selling of real estate property within a short period for quick profits. Though the return on investment appears to be good, there is still a risk that your money could get locked-in in the absence of buyers.

Real estate prices have steadily increased since the beginning of this decade. However many signs point to the real estate boom coming to an end, so it may be wise to put real estate investing on hold. Investing in real estate, contrary to popular thinking, is a slow yielding investment. Hence real estate investors need to do proper planning and to conduct market analyses before investing.

Before investing in any property it is vital to study all the related documents of the property, to see the license of a broker if any, to check for liabilities etc. All contracts have to be in writing. All details such as the names of all parties, address of the property, area, purchase price, consideration etc. have to be entered in the contract along with all parties' signatures. It is also prudent to hire a property lawyer to look into the intricacies of real estate contracts.

One good way of investing in real estate is to buy foreclosure properties. Foreclosure is the process in which a bank or a creditor sells the property of the homeowner to recover the loan, which the owner has not been able to pay back.

A lease to purchase contract is considered the best type of real estate investing. This type of contract basically allows the tenant to lease a particular property for some period, and at the end of the period he has the option of purchasing the property at an amount decided at the signing of the contract. The tenant pays an initial non-refundable deposit. If the value of the property goes up at the end of the leasing period, the he may want to buy the property at its original value. If the value has not increased he can opt not to buy it. During this period he can also rent the property to someone else. By this method, the investor takes a lot of the risk off himself as he does not have to commit a large sum of investment capital not apply for a big loan.

Currently, there are a few areas where the real estate market is just too overheated and investing in real estate is just too risky. They are Miami, Las Vegas, Northern Virginia, Phoenix, Sacramento, Boston, Washington DC, and San Diego. Other "hot" areas also include San Francisco, Chicago, New York, Los Angeles, and Seattle. The safer, less volatile areas for investing with good ROI are Dallas, Cleveland, Houston, Columbus, Omaha, Kansas City, and Pittsburgh.

Real Estate Management Companies

2009-05-25T22:14:00.001-07:00

Real estate management companies can offer you the skills and services you need to maximize your investment properties. These companies are professionals who can market your properties, screen potential tenants, conduct all maintenance repairs and keep your properties running smoothly.

When your investment properties are ready to be rented, you will find property management services are an invaluable resource. Your management company can help you establish a reasonable rent for the area, screen potential tenants, and maintain rental records. The management company will also help to recover rent that is past due, or even begin the legal process of eviction in the case of rent non-payment. The renting process is guaranteed to be smooth when you have a qualified real estate property management team on your side.

Real Estate Management companies are not all alike

Some management companies specialize in managing certain types of properties. You will want to make sure you hire one that specializes in your type of property. Types of properties include single-family houses, condos, apartment complexes, commercial and Community association properties. Some companies manage all types of properties while other may manage single-family houses up to small apartment complexes only. Make sure to ask, as each type of property can require different skill levels and qualifications to manage.

On-site and Off-site Property Management

Most of the time, you will use one of the off-site property management companies to help you maintain the rental of your properties. The off-site management companies can help you determine reasonable rents for the area, as well as screen any potential tenants. If you own apartment buildings, then you might prefer an on-site real estate manager take care of the rental process for you. An on-site manager hired through a management companies in your local area can help you maintain your apartment buildings, and keep them occupied to their full limit.

Benefits of Using Real Estate Management Companies

The main benefit of using real estate management companies is that you can save time. Time is especially valuable if you own several properties in a different state, and cannot easily oversee those properties. These companies are found throughout the nation, and can often oversee properties that are quite some distance from your local area. Also, using management companies to monitor your properties is useful when you do not have the expertise or the desire to perform these tasks yourself. You always want to screen your applicants carefully, but without professional knowledge you may have a hard time choosing the right tenants. You know that the wrong tenants can cause a lot of problems, and you may take longer and longer periods of time to find a tenant to fill your vacancy. This is when you need real estate management companies to step in. A professional company knows what you need to look for in a tenant, and can fill your vacancies quickly.

Another Perspective

A management company can also offer their professional opinion when you are considering making a new investment. Bringing a true professional with you to inspect your potential properties can help you by giving you another, more objective and professional opinion. These companies are trained to spot any potential problems with the property, such as when a property needs intensive repairs. Also they can make sure that you are paying the right price for the properties that you are interested in. Being prepared with your own real estate management professional can help you with all your management needs.

Business Aspects

In addition to knowing which properties make the best investments, real estate management companies also know all of the laws pertaining to real estate in your state. While the law may not seem important when you are just beginning to invest in real estate, all you need is one troublesome tenant to know the law is a vital aspect of renting property. Qualified management companies are dedicated to helping you receive the cash flow you need from your properties. All of your management needs can be met by one of the real estate management companies in your area, from buying real estate to renting your properties.

Rules to Maximize Your Rental Business

2009-05-25T22:13:00.000-07:00

Most landlords in today's world own only few rental properties, and most work full-time jobs in addition to owning their one or two rental properties. The prevailing attitude among these part-time landlords assumes that, after signing a lease agreement, the rental income will simply arrive on time each month and the landlord simply has to use the rent to pay their mortgage. Unfortunately, there are plenty of pitfalls for part-time landlords, but most are avoidable by following a few simple rules of landlording.

Rule 1: Screen Tenants Carefully with a Rental Application

Finding the right tenant for your rental property is the single most important decision a landlord makes. The tenant screening process should include a comprehensive rental application, which includes a release clause allowing the landlord to pull background and credit information. After a prospective tenant has completed and signed the rental application, landlords are wise to pull credit reports, verify employment and income, and verify rental history with prior landlords.

Rule 2: Sign a State-Specific Lease Agreement

While it's tempting to use a cheap lease agreement from the office store, the fact is each state has different landlord tenant laws that affect the regulations that can be included in a lease agreement, and has their own legal language that should be included. Landlords who use a generic lease agreement run the risk of not being able to enforce it in rent court, which is a landlord's worst nightmare.

Rule 3: Be Responsive to All Repairs/Maintenance Requests

By being extremely responsive when a tenant calls about a repair issue, you can prevent two types of problems: further damage to your rental property, and a possible dispute with your tenant. This does not mean you have to do every repair your tenant requests, but it does mean you should either do the repair immediately or tell them immediately that you can't afford to make that repair at the moment, which will settle the matter without further aggravation.

Rule 4: Be Responsive to Tenant Disputes

Tenants and landlords will always have disputes, due to the nature of their relationship, but the important point is to address these disputes quickly and fairly. If left to fester, these disputes can quickly become expensive lawsuits, so make it a point to sit down with your tenants in person to discuss any grievance they may have. Bring a copy of the signed lease agreement, so you can refer to it to resolve the dispute, as many disputes are already covered by the lease agreement. Finally, consider that helping a tenant to move out amicably can be far less expensive than having to evict them, or having to go to court over a lawsuit with them.

Rule 5: Keep All Communications in Writing

When you do have a conversation over the phone or in person, follow it up immediately with a written correspondence that summarizes the conclusions of your conversation, and sign it with your tenants. This will prevent any he said/she said disputes down the road, and will help you keep a paper trail of evidence to reference if need be.

Rule 6: Automate Your Rental Collection

Collecting rent is an area where many new landlords struggle, as many tenants will push the envelope of sympathy to see how much they can get away with. It's important to think of your rental business as a business, just as your mortgage lender who collects your mortgage runs an automated business. When a rental payment is officially late, immediately send an eviction notice to pay rent or quit, and as soon as legally allowable, file in rent court for the eviction. This may sound "cold" or "heartless," but the fact is you will send a strong message to your tenants that you will not tolerate late rental payments. In response, you'll find most tenants will bring their rent current, and will think twice before paying their rent late again.

Whether you're a novice landlord or a seasoned one, these basic rules will help your rental business run more smoothly as a business, and not simply a part-time real estate investing gig you do on the side. By investing the effort and following these rules, you will see each lease agreement perform better, and your monthly costs associated with your rental properties reduced to a minimum.

Earn money from real estate in 2009

2009-05-13T11:48:00.000-07:00

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Every segment of the economy has taken a beating over the course of the last year or so. Consumers are afraid to spend money, borrow money, or even go to work. The “irrational exuberance” of years past has been replaced by fear, trepidation, and a sense of foreboding. You, too, may be considering whether real estate makes much sense, given the state of the economy and other factors. 2009 can be the year that you turn the economic corner and create the kind of future for yourself and your family that you dream about, but in order to do that you’ll have to overcome your fear and take the steps necessary to achieve your hopes and your dreams. There are three simple things you can do today that can make it happen.
Recognize the Fear – First, fear is a natural impulse, especially in uncertain times. The source of your panic may be a stock market that has known more downs than ups in recent months, confusion about whether real estate markets will ever bottom out, or doubts about your ability to locate profitable real estate deals – or precisely when you should invest to reap your share of the profits available in real estate. Realizing what you’re afraid of is a critical first step in overcoming this fear. Are you afraid to invest because you’re not sure if you’ll make money – or is the source of your fear because you’re not clear about what specific techniques can help you succeed regardless of what the real estate market does next?

Embrace the Fear – It’s natural to be cautious and a certain amount of fear is actually good for you. It forces you to take a step back and take your emotions out of what should be purely economic situations. Instead of allowing yourself to be controlled by fear, embrace the fear – and find a way to overcome it. Real estate can be a scary place to be, especially when there’s some uncertainty clouding your vision. When you were a kid you were probably afraid of the dark. If not, you were afraid of helmeted men on motorcycles, clowns, or something else that seems silly to you now that you’re much older and wiser.

Overcome the Fear – If you look back on your life you’ll discover the key to unlocking the door to your fear. In each case, the one factor that has allowed you to overcome fearful situations has been education. Once you learned that there really weren’t monsters under your bed you were able to go to sleep each evening without trimming years off of your parents’ life expectancy with your blood-curdling screams. Education is the key that will unlock the door to real estate investing success, too. By learning where to invest, how to invest, when to buy and sell, as well as how to guarantee that you can still generate cash monthly regardless of what the real estate market does, you will have in your hot little hands all of the tools necessary to create the kind of future you dream of.
There are lots of ways of using education to overcome your real estate investing fear, but they all involve learning. Instead of trolling around on the Internet looking for educational resources you can trust, there is an easier way. While you have the freedom to do anything you like, it doesn’t make sense to pop from site to site, trying to judge whether the content on each site is timely, actionable, and worthy of your precious time resources. There are thousands of resources on the web – some better than others.

With a single mouse click you can have a valuable resource at your fingertips that can melt your fear and actually make you look forward to getting started today. www.reiconferences.com is just this sort of resource. Success in real estate today doesn’t have to take tens of thousands of dollars or years of searching. The process is simple. In fact, it’s so easy that I’ve broken it down into 10 easy steps that anyone can do from the comfort of their own home. To learn more about how to profit from today’s real estate market without risking your life, your income, or your security, point your web browser to www.REIconferences.com
You’ll be glad you did, especially when you finally wrap your brain around the idea that such simple concepts can be so profitable – to you and your family – with nothing more than a little bit of time, a telephone, and an Internet connection.

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Flipping Real Estate

2009-05-11T13:24:00.000-07:00

If you been in the real estate investing business, or more specifically been flipping real estate, for more than a few days, you’ve inevitably gotten an email that reads something like this:

“Investor’s Dream. This property will go QUICK.

- Property Address: 1234 Main Street

- Asking Price: $100,000 (Add or subtract zeros!)

- After Repair Value: $150,000

- Repairs: $15,000

- Profit: $35,000

- Details: Needs paint, carpet, tile, new kitchen, update bathroom, some roof damage.

- Tenant occupied. Need to evict!”

STOP! Before you read on… Take a guess at what you think the “real” profit’s going to be on this real estate investment…

If you haven’t ever gotten an email or fax broadcast like this, then rest assured, you will! I’m about to probably tick off all of the late night infomercials and pitchmen out there! Sure, I understand that when you’ve got 30 minutes (or 90 minutes, for that matter), that you’ve to sell what’s sexy… not what’s real!

Now it’s my turn to expose the real deal on real estate investing! This goes for flipping real estate itself (i.e. properties) or simply flipping the contract (also known as assigning the contract). When you’re flipping real estate, you need to be able to calculate the “real” bottom line and if your assigning the contract, you need to know your numbers so you don’t get blacklisted from investors! This one piece of information will keep you from getting into trouble because of any “real estate bubble”!

Purchase Costs

Here goes… Have you EVER purchased and sold a piece of real estate for FREE? If you're not sure what the answer is… It's an emphatic NO... You are going to have costs to buy, costs to hold and costs to sell. This holds true even if you are buying a property for all cash. (Think title fees, attorney’s fees, recording fees, etc.)

If you’re not getting a mortgage, your purchase costs are obviously much lower, but nonetheless, there are costs associated with any real estate transaction. Plus, more than likely, if you’re relatively new, you’re probably not paying all cash for property anyways. You’re probably going to be using a hard money investor for your initial real estate investing financing!

For a quick calculation, you can estimate anywhere between 3% - 5% for closing costs to just acquire the property. That’s 3%-5% of the purchase price.

Holding Costs

How much is it going to cost you each and every day to own this piece of real estate? See, if you’re making money in real estate, you’d better believe that there are a lot of other people that are going to expect to get paid and they get paid in the form of mortgage interest, property taxes, utilities, property insurance, etc. Each of these is an expense each and every day that you own the property. Here’s an example… A hard money loan on a bread and butter type piece of real estate might run you 15%. Let’s say you got the property for $100,000. Every month, you are paying $1250 in interest alone. Let’s say that taxes and insurance are another $200/month and then utilities at $100. Right there, the property is costing you $1550/month – or roughly $50/day. See, why it’s important to know your not only your holding costs on a real estate investment, but also how long it’s going to be on the market before you can flip the property.

Selling Costs

Here’s the third part of the real estate investing puzzle. When you want to turn around and sell this piece of real estate, it’s going to cost you yet again! Are you going to use a real estate agent and pay a commission or 3-4-5% or even more? On $150,000, that’s anywhere from $4500 to $7500 chopped of the top. Then, you can figure 1-2% in closing fees.

If you can remember this… and apply what you’ve just learned to each and every real estate deal that you do, you’ll be safe flipping real estate in any market. You see, if it’s a hot market, you can calculate less time for holding cost. But, in a slower marketFree Articles, make your offer based on 6 months or 9 months of holding costs. It’s really simple math! And real estate really is a numbers game…

Commercial Real Estate Loans

2009-05-11T00:33:00.000-07:00

By far the most positive aspect of commercial real estate financing
is now SBA loans. Via the Obama Stimulus Package, SBA loan are still funding and the banks that are still in the market, are pushing all of their customers to go this route.

For banks, the Stimulus Package increased the guaranteed portion of the SBA 7a loan from 75% to 90%. Though many bankers will tell you this doesn’t mean that much, because the government can get out of following through on the guarantee, having some type of backing is a lot better than none at all.

For borrowers the main benefit is having a closed loan. A lot of borrowers don’t realize the significance of this point. Others include the widely published reduced fees (for example on the SBA 7a program, the normal fee of 2.75% has been temporally eliminated ). Other major benefits include 90% financing and 25 year amortization schedules.

Conventional financing continues to tighten, whether for owner occupied or investment properties (non multifamily). What we are seeing actually close, on the conventional side is loans below 60% loan to value, with very strong borrowers. Most banks now want to see strong secondary sources of income and high levels of post close reserves. Though there’s no set number/ratio a lot of banks want to see 30% in liquidity, compared to the proposed loan amount… Some are establishing it as 12 months of mortgage payments in reserves or more.

Another issue on conventional financing that keeps appearing, for borrowers with investment properties, is lease term. Banks now want to see a minimum of 5 years left on leases. Just a few months ago, there was still flexibility with this, now it seems to be gone.

Real Estate Investors

2009-05-11T00:31:00.000-07:00

The No. 1 asset for real estate investors is good credit. Without it, it’s more difficult to make deals go through, although it is possible.

Beginning investors often don’t even know what their credit rating is. They don’t understand the importance of it and therefore they don’t understand what types of loan programs and financing they can use.

But now, more people than ever seem to have not-so-good credit. There really is no shame in that. People who try to set up their own business sometimes end up in over their heads financially. We all do from time to time. Think Donald Trump, for example. So don’t feel embarrassed or think that you have to justify your situation.

Yes, credit problems and bankruptcy will be red flags to some lenders, and they will put you in a very high interest rate category for any loans you may qualify for. That’s just what you get stuck with if your credit is not so good. But you still can get help; it‘ll just take a bit more effort and determination on your part.

What that means, of course, is that you have to be persistent. Don’t give up and think that just because one, five, or even a dozen lenders turn down your loan application that they all will.

So, one of the cardinal rules of real estate investing is, “Know your credit.” By that I mean there are specific things you must know about your credit report before you attempt any real estate deals.

First, you'll want to get a copy of your credit report. The most comprehensive is a “3 in 1” report from all three of the major credit reporting agencies: Trans-Union, Equifax and Experian. Finding their websites is a simple matter of Googling them.

The main thing you want to look for on your report is whether it has any adverse information. "Adverse information" includes late payments, collections, judgments and so forth. If you have this type of information on your credit report and have the money to pay off any bad debts, do it right away.

If you don’t have the means to pay off those debts, you may want to call up the collection agencies you owe the money to and ask if you can be set up on some kind of small repayment plan. Even if you can put only $10 a month toward a debt, that shows you are trying to erase the debt. More important, when the credit bureaus get their updated information each month, it may boost your score. It’s really that simple.

You also need to know your credit score number, or FICO score. Your credit score is basically a risk-scoring system that banks and lending institutions use to see how good or bad of a credit risk you are. Be sure to specify that you want your credit score included when obtaining a copy of your credit report, because sometimes it’s not automatically provided.

The following table will help you understand where your credit ranks:

Credit Score / Rating:

700 or over – Excellent (A+ credit)
Usually signifies no significant (60 days or more) late payments on any credit payments in the prior 3 years. People with A+ credit typically receive better rates on certain loan types.

699-660 – Very Good, and 659-620 – Good (A credit)
Usually signifies no significant (60 days or more) late payments on a mortgage loan in prior 2 years and only isolated minor “lates” on credit payments in the prior 2 years. People with A credit typically can receive "market" rates on all loan types. Bankruptcies must be cleared and discharged for 4 years to qualify you as having "good" credit.

619-590 – Fair (B credit)
Usually signifies some significant (60 days or more) late payments on a mortgage loan in prior 2 years and widespread minor lates on credit payments in prior 3 years. People with B credit typically will receive slightly higher rates on all loan types, except government loans (FHA and VA), which will not rely solely on credit scoring. Bankruptcies must be cleared and discharged for 2 years to qualify you as having "fair" credit.

589-480 – Bad (C credit)
Usually signifies many significant (60 days or more) late payments on a mortgage loan in prior 2 years and widespread major (60-90 DAYS) lates on credit payments in prior 3 years. People with C credit typically will receive higher rates and higher required equity or down payment on all loan types except government loans. Bankruptcies must be discharged at the time of loan application to qualify you as having "poor" credit. Current charge offs, bad debts and judgments sometimes need not be paid off to get a mortgage. The penalty is a reduced pool of lenders, high rates, and stiff prepayment penalties if you refinance within 3 years.

A word about credit scoring. Basically, credit scoring is a statistical method of assessing the credit risk of a loan applicant. The score is a number that rates the likelihood that an individual will pay back a loan. The score looks at past delinquencies, derogatory payment behavior, current debt level, length of credit history, types of credit and number of inquiries.

Credit scoring will place borrowers in one of three general categories:

** First, a borrower with a score at 680 and above may be considered an A+ loan. The loan will involve basic underwriting, probably through a "computerized automated underwriting" system and be completed within minutes. Borrowers falling in this category may have a good chance to obtain a lower rate of interest and close their loan within a couple of days.

** Second, a score below 680 but above 620 may indicate lenders will take a closer look at the file in determining potential risks. Borrowers falling in this category may find the process and underwriting time no different from in the past. Supplemental credit documentation and letters of explanation may be required by lenders before an underwriting decision is made. Loans within this FICO scoring range may allow borrowers to obtain "A" pricing, but loan closing may still take several days or weeks.

** Third, borrowers with a score below 620 may find themselves locked out of the best loan rates and terms offered by lenders. Mortgage professionals may divert these borrowers to alternate funding sources other than FNMA and FHLMC. Borrowers may find the loan terms and conditions less attractive than the "A" loans, and it may take some time before a suitable funding source is located.

I can't begin tell you how important it is to learn how to read your credit report before buying your first real estate investment property. Knowing your credit score is 100 percent essential. You really won’t be able to move forward with building your real estate investing business until you have that score.

But please don’t throw in the towel if you find that your score is worse than you thought. It can always change, and when you start closing deals and paying those lenders back, it will start to increase.

Costa Rica Real Estate

2009-05-09T15:08:00.000-07:00

If you'd like a place in the sun, this Central American jewel is a place to consider and Costa Rica real estate is a great way to start your search for your second home, vacation home and simply your retirement dream.

Costa Rica is often called the 'New Hawaii'. This usually means that is that it is similar to Hawaii as far as climate and beauty is concerned but, importantly, that this Central American country nestled between Nicaragua and Panama is how Hawaii used to be fifty years ago! Then Hawaii had huge sugar plantations. Now, however, Hawaii gets most of its money from tourism. Costa Rica has coffee and pineapple plantations but its tourist industry gets bigger every year.

Located in Central America, Costa Rica is an emerging nation who are working hard to get rid of their 'third world' status. Surrounded on the east by the Caribbean Sea and on the west with the Pacific Ocean, The country is truly beautiful and is famous for its bio diversity and indeed even the sand comes in all colors, from volcanic black, browns, reds to spectacular white. The ocean is warm and you can either enjoy a good book on the beach with the occasional swim or go all out with a great variety of water and sand activities from scuba diving to wind surfing to beach volleyball. There are many varieties of insects, birds and animals and this alone is a huge source of eco tourism.

There are two seasons - wet (green) and dry. On the coast it's usually hot and humid - although even that varies from north to south where it is more arid in the north. However, the Central Valley which surrounds the capital, San Jose, has spring-like weather all year round.

People that visit often think of returning to live there - be it for a vacation home, a second home or even to relocate there for good. Prices are still reasonable but the place already booming, so now is the time to buy.

Buying real estate can be as simple or challenging as you like. There are so many options. Land and housing come in all forms and prices! You can buy a simple hut on a piece of land or go all out and have a villa built overlooking the ocean.

It seems that everything is available if the price is right. Even North American realty companies are there to help you - Remax and Century 21, for example are well represented.

There are also companies from the U.S. or Canada who have bought up a large tract of land in Costa Rica and then put it into plots for sale. You can buy this land in various stages, from the original land, the land with roads and infrastructure in place and many companies facilitate building a house for you and take care of all the legalities. Everyone here is Spanish speaking, getting a lawyer that understands what you want and can speak and understand English can be challenging.

These North American companies take care of all that and even after you have your home built, some companies offer furnishing options as well as maid and gardener services. To put icing on the cake, they often offer rental services - i.e. they will rent out the place for you and keep it maintained and cleaned for the time you are not using it personally.

This is a great place to be and Costa Rica real estate is booming so make your decision soon.

Real Estate Recession USA

2009-05-09T15:03:00.000-07:00

The real estate recession in the USA is upon us. Property values are likely to get a lot worse before they get better, as we see the biggest housing crisis for 50 years. Foreclosures are mounting and debt is a huge burden. The good news however is - you can protect the value of your property from further falls right now.

How can I Protect against further falls?

The answer is contracts that are being provided by a number of companies called:

"Lock in value property equity"

Essentially for a small affordable fee, you "lock in" the value of your property at a set price, when the contract is signed. This is the minimum price that you are guaranteed for your property should you wish to sell it.

How Am I protected?

The company giving you the "lock in" value gives you the option to sell your house to them at anytime after 2 years after the contract has been signed and you can protect yourself for up to 10 years.

Regardless of how far property prices fall, the company is obligated by the contract to buy your property at the agreed "locked in" price.

That sounds good - but what about if the market turns up?

Well if it does, you have the right but not the obligation to sell to the company granting the "lock in" value. If prices rose, you can sell your property to whom you wish and take advantage of any increases made.

So essentially I have a set locked in price which no matter how far the market falls I am guaranteed that price but if the property rises in value gains on mine?

The above summary is correct.

This contract allows any property owner to gain peace of mind for a small affordable fee. Real estate prices can be volatile as we are seeing now and we are arguably in the midst of a real estate recession.

People are worried and want protection.

In life we protect many of our assets yet, one of the most important and biggest assets we have is our home and we don't. Companies are now offering contracts such as the above so you can protect probably one of the most important assets you have - your home.

As we have seen the country is fighting not to fall into a recession - but even if it doesn't, the real estate market has a lot of problems ahead and is unlikely to recover quickly.

Real estate recession USA - it sounds frightening and for many property owners it is - but the good news is contracts like the above, can help you "lock in" the value of your property and gain peace of mind which is well worth considering.

Dubai & Abu Dhabi_Booming Real Estate

2009-05-09T15:00:00.000-07:00

The property market market in the United Arab Emirates, one of the hottest in the world, is set to continue until 2015 and beyond, according to new reports. Real estate and construction markets in the UAE are primarily focused on Dubai, which has been booming for several years, and the newer market of Abu Dhabi.

Two recent studies by HSBC and Damac Capital International of Dubai both indicate that supply will not catch up to demand for a number of years, keeping the markets strong. Traditionally the most popular locations with second-home buyers and British investors are Spain and France but Dubai is beginning to rival them. Dubai investment property is attractive due to its tax-free status, excellent facilities and low crime rate.

International investors buying property in Dubai need to concentrate their search for properties in Dubai to the many Freehold Areas in Dubai.

Properties that are suitable for foreign buyers include the following freehold zones: Dubai Sports City , Dubai Marina, I.M.P.Z. International Media Production Zone , Jumeirah Village , The Palm Jumeirah, Shaikh Zayed Road, International City, The Lagoons, Palm Deira, Jebel Ali Airport, Emirates Road, Dubai Land ,Business Bay ,Downtown Dubai and much more

Recently Dubai developers have had to comply with a new piece of legislation Law No 8. This makes escrow accounts compulsory for all Dubai off-plan developments, with money released only on the order of the Dubai Land Department. This move marks an end to the days when any developer could launch a project and collect deposits without a guarantee that the funds would be used correctly. Many pundits feel that this could slow the Dubai market but increase confidence with investors

Middle East online news website Gulfnews.com reports that Dubai will continue to be a strong real estate market, while Abu Dhabi is set to take off. Rental yields in Abu Dhabi are expected to be in excess of 7% until at least 2013 and perhaps beyond.

According to Damac Capital's analysts Hany Seif and Pamela Chikhani, Dubai will remain a major Gulf real estate market for years to come. By some estimates, over the next 10 years both local and international real estate investors will pump in almost $300 billion into Dubai's real estate developments. According to HSBC's real estate analysts, Walid Khalfallah and Majid Azza, Abu Dhabi is becoming a major regional real estate market. "The Abu Dhabi story is gaining credibility. After a slow start to the year, sales activity has picked up in the second half of 2007. The market remains extremely tight, with stronger-than-expected growth in rents [22 per cent] and prices [18 per cent]," they said in a recent report.

Abu Dhabi does not have the liberal international property laws that neighboring Dubai has yet, but things are improving there. The office market is particularly strong and vacancy rates are below 1%. With increased deregulation, Abu Dhabi will continue to gain ground on its more prominent neighbor. Both should see strong growth in the coming years.

Real Estate Secrets

2008-11-20T00:05:00.000-08:00

Which Builder Is The Best?

When clients come to their agent for advice it's not uncommon for the client to ask the agent which builder is best or which builder builds the best homes and the like. Any agent who gives the name of a builder as the answer to this question is taking the easy way out to answering a difficult question. As for qualifying a builder to enter the running there are a number of items to address.

Is the builder financially stable? How would you like to end up with a half finished house and a bankrupt builder?

Does the builder have reference clients? Ask for references from several subdivisions and ages of homes. You don't want to have a zillion problems 2 years after you move into the home.

What does the builder do in-house versus subcontracting? Who manages the home construction? Who does the actual work. You'll want to know who the subcontractors are because they will be the ones building the house for the most part.

How does the builder ensure quality construction? The answers to this vary widely and anything that sounds made up or contrived should set off every alarm in the prospective buyer.

Take copious notes on the answers. Any misleading or untruthful statements here may be important to your cause later and could even trigger Texas' Deceptive Trade Practices statues should you need to play hardball later. So long as you get satisfactory answers to the questions above you can begin to focus on ensuring the builder you selected is building a safe and quality home for you and your family.

You Are The Quality Control

As you may have already figured out there is no best builder. The process of taking a parcel of raw land and creating a family's home is long and can be complicated. As with all projects communication is key. As new build clients you should feel comfortable contacting your on site sales representative and Realtor as often as you like. The on-site agent and your agent are there to help and make sure your purchase is smooth. Don't be afraid to engage them.

Set a time for a weekly update call with the builder and your agent. Even if your call is 2 minutes on Monday morning and consists of a "Nothing has changed. We're still waiting on the permits from the city.", you'll know the latest and greatest.

Get the building schedule and hold the builder to the schedule if time is important to you. You may give here to get other places if timing is not critical in your situation.

Visit the site often and take photos. If you see anything that looks odd or is not what you expected tkae a photo, document the question in email, and contact the builder and your agent IMMEDIATELY. Waiting to see why the builder is clearing a section of the lot that you thought was going to be your treed hideaway may turn out poorly.

Hire an independent inspector to conduct phase inspections. The builder should be notified before your inspector arrives. Ideally, the builder will notify the inspector a few days before each phase is ready to be reviewed. The inspector typically will come after the slab is poured, after framing is complete, after plumbing and electrical is installed, and after the home is completed.

Be detailed, but not unreasonable. If you notice something that is just plain sloppy or that will cause you issues later, bring it up with the builder. A lot of times the agent or superintendent may not have noticed what the subcontractor is doing or maybe a change order was missed and you are the first to find out. You are buying a new home, NOT a perfect home. No home is perfect, but a new home should be of high quality and to your specifications.

Be Dilligent

As you've discovered, your involvement in the building process can make all the difference. Stay on top of the ball and 9 out of 10 builders will meet your needs and build you a quality home. Sometimes you'll even run across a builder that will build you a great home, nearly perfectly without your involvement, but why take the chance?

Happy building!

Pick A Category Of Real Estate You Want To Own

2008-11-17T09:27:00.000-08:00

Becoming a commercial real estate market expert is all about focus. An important part of being successful in this business is focusing on a type of income producing property you want to acquire.

This strategy sounds simple until you start looking at the available properties, and your mind starts to think about all the possibilities.

Stop--this is a strategic mistake. It will cost you big time if follow through with it.

Why? Because the commercial real estate investors that do well focus on a specific type of income producing property.

Successful commercial real estate investors aren’t distracted by the money burning a hole in their pocket. They are discriminating. They want to fully understand whatever type of property they focus on that it is a good deal, perhaps a great deal.

And the only want to do that is to do your homework. To do your research and due diligence.

Admittedly, this is hard to do especially when the pool of available deals is overwhelming large that your eyes get really big, OR when there are slim pickings at the time and you start to wonder where the good properties are.

It is vitally important to stick to the strategy. Pick a type of property and learn all you can about this type of property.

Types of Commercial Real Estate

Now, if you are new to the commercial real estate game, you may be thinking all commercial real estate is the same. They are not. Let’s start with the 10 types that are available:

1. Retail Space – Shopping Malls, Strip Plazas, Free Standing Retail Stores.
2. Office Space
3. Hotels and Motels
4. Multi-Family Dwellings such as Apartments and Condos
5. RV Parks
6. Mobile Home Parks
7. Industrial and Manufacturing
8. Warehouse
9. Mixed Use Property
10. Raw or Agricultural Land Which Can be Developed

Pick one, or at most two of these categories of commercial property and focus on them exclusively. Learn as much as you can about them within your market. Dig, really dig.

Remember what I said in my previous article—become an expert, an authority… a specialist.

Make this type of property your passion. Join a group, club or association and start mingling with people who are just as passionate about this type of income producing property as you. You’ll find no matter which one you focus on, there are people who have made a successful career of investing in that type of property.

Now, one question I am asked of people who are new to commercial real estate investing is this: What’s the best type of property to focus on?

My answer is raw land or agricultural land that can be rezoned. Why? Because while the challenges are many, the profit upside is huge.

So in closing, while there’s opportunity everywhere, it will pay to remember the words of the Zen monks:

“He who tries to catch two rabbits, don’t catch any.” Focus on specific type of property and give it all your attention.

San Diego Real Estate Agent

2008-11-14T02:43:00.001-08:00

If you are selling your home in San Diego, or looking to buy, finding the right San Diego real estate agent can make a big difference in whether or not you get a good deal. But how do you find the San Diego real estate agent who is right for you? Here are a few points to consider when choosing a San Diego real estate agent:

Go for Experience

You may have heard it said that the three most important aspects of selling your home is location, location, location. Well, when choosing a San Diego real estate agent, probably the most important quality to look for is experience, experience, experience. The real estate profession is one with a high rate of turnover, and many San Diego real estate agents you come across will be newcomers. When buying or selling such a large investment as real estate, it just makes sense to use a real estate agent with several years of experience. DonвЂ™t even consider using a San Diego real estate agent without at least two years of experience, preferably more. An experienced real estate agent should have an established track record of buying and selling homes in the San Diego area. This professional expertise will definitely benefit you as you buy or sell your San Diego real estate.

Consider Personality

One thing that many people overlook in choosing a San Diego real estate agent is personality. Make sure to work with a San Diego real estate agent who has a compatible personalityвЂ”meaning they understand your goals, are willing to be patient, and are good at maintaining communication with you about your real estate. If all they seem to care about is selling the first house they take you to, or tell you that your asking price is too high just to make a quick sale, then you know that the San Diego real estate agent you are working with is not really serving your needs. Look for a San Diego real estate agent who listens to your wants and responds by showing you houses that actually fit your criteria. Make sure they are comfortable with being patient until you find the real estate agent that satisfies you. Doing so will make the buying or selling of your real estate a much more successful experience.

Finding the Right Agent

You may be wondering how to find a San Diego real estate agent who has the characteristics mentioned above. The most effective way to do this is by word of mouth. Talk to other people you know in the area who have recently bought or sold real estate and find out who they would recommend. You can also use online websites, such as, to find a local realtor with the background and experience you desire. Once you do come across a San Diego real estate agent you think you would work well with, make sure to set up an interview. Try to interview at least three different realtors before deciding on which one would work best with you. Following these recommendations should make it much easier for you to find a San Diego real estate agent who will work diligently for you, and will help to make the buying or selling of your home go as smoothly as possible.

Steps to Selling Your House

2008-11-12T06:50:00.000-08:00

Selling your house is one of biggest transactions you'll ever make, so it is vital that you get it right.

Before actively marketing your property you will need to have available (or at the least applied for) a Home Information Pack (HIP). This can be arranged through your solicitors, estate agents or even direct with a HIP provider.

Once you have found a buyer and have accepted an offer on your property, here's what happens next.

1. Preliminary Matters

Once you have instructed a solicitor to act on your behalf, you will need to provide proof of your identity to comply with Governmental and Law Society guidelines.

Your solicitor will also ask you to complete standardised documentation that will form part of the contract package to be delivered to the Buyer's solicitors which are called the Property Information Form and Fittings and Contents Form (an additional form called Leasehold Information Form may also be needed if the property you are selling is held on a leasehold tenure).

If you have a mortgage on your property you need to provide the solicitor with your mortgage account number. This will enable them to obtain the Title Deeds from your lender.

2. Before Exchange of Contracts

If your property is registered then a copy of the Title for your home will be ordered electronically through HM Land Registry. If your Title is unregistered then it will be up to your solicitor to present a Title to the Buyer's legal advisor based on the historically documentation within the Title Deeds.

The solicitors representing you in the sale transaction will then provide a contract package to the Buyer's solicitors. This comprises of a draft contract, copies of the Title to your property and the Property Information Form and Fittings and Contents Form referred to above.

Once a contract package has been issued to the Buyer's solicitors it is normal for them to raise a number of enquiries concerning the Title for the property as well as its historical and present physical state. Your own solicitor will deal with these enquiries on your behalf (as many of them may be technical and difficult to understand!) however, there may be some questions where your input is required.

You will need to make sure that the information you provide in any documentation is accurate and that the responses to any questions asked by the Buyer or your own solicitor are true.

Your Buyer is likely to instruct their solicitor to carry out searches through the Local, Drainage, Environmental and the Chancel Check authorities. This is to ensure that there are no hidden surprises within the said authorities records that would prevent the Buyer's from proceeding with the transaction.

Once the Buyer has received a Survey report and their solicitor is in receipt of search results, replies to enquiries and offer of mortgage (if applicable) then they are in a position to effect exchange of contracts.

3. Exchange of Contracts

When the form of the sale contract has been agreed between solicitors, your legal advisor will ask you to sign your copy of the contract. Just because you have signed your contract, it doesn't mean you have sold your house - the agreement is only binding once the contracts have been exchanged.

Immediately prior to exchange the completion date is agreed with all parties in the chain. There is no set period between exchange and completion. Completion can even be arranged a year in advance if appropriate! It may also be possible to agree a simultaneous exchange and completion date. However, this date depends upon the availability of all parties in the chain to physically move out of their existing house and into their new home.

Once exchange of contracts has been effected you are in a legally binding contract to sell your property.

4. Preparing for Completion

You'll need to arrange a removal firm to empty your house, and inform the relevant utility and other companies that you are moving.

Your solicitor will arrange for your mortgage to be paid off and settle your estate agents commission account (if applicable). In addition you will be asked to sign one final document by your solicitor called the Transfer Deed. This document will be utilised by the Buyer's solicitors to register their clients interest in the property at HM Land Registry following completion. Rest assured your solicitor will not release this document without first having received the full balance of the sale proceeds.

5. Completion Day

The sale will be completed once the purchase funds have been received from the Buyer's solicitors. Everything from the house must be removed, except for any fixtures and fittings that you have agreed to sell to the buyer or will be including in the sale price.

You will need to leave the keys to the property with your estate agent, unless you have agreed differently with the buyer. Once this has been done you have successfully sold your house.

Selling your home can be made much easier when you know what is going to happen next. Now you know what to expect of you, you can continue to look for your dream home.

Profits From Flipping Commercial Real Estate

2008-11-06T09:22:00.000-08:00

If you have ever thought about real estate flipping you are not alone. But instead of only looking into residential flipping, why not consider other options as well?

More particularly, flipping commercial real estate as a way to make money. Commercial real estate is property where people can do business. For example, office buildings or retail properties are considered commercial real estate.

This is how it works:

You will buy a piece of commercial real estate for a low price, and then fix it up. When you are done with all the repairs, the last thing that you have to do is sell the property. This is when you will realize how much money you are going to make. Sometimes you can make hundreds of thousands of dollars flipping commercial real estate, and other times you may not come out on top at all. In other words, there are not guarantees when flipping commercial real estate.

In addition to flipping commercial real estate when you sell it during the last step, you may also want to look into the option of renting the property out as well. Of course you will not get a lot of money up front if you do this, but in the long run you may make more than you ever thought possible.

The key to being a success when flipping commercial real estate is finding the right properties. After all, if you buy properties that cannot be fixed up and sold for a profit you are not doing yourself any good. When you first start out with flipping commercial real estate you may not know exactly what to buy; this is to be expected. But as you become more experienced with flipping commercial real estate you will know which properties are the best for your needs, as well as which ones you should stay away from.

Flipping commercial real estate is not quite as popular as dealing with residential properties. There are usually fewer commercial properties available than residential properties. But with that being said, if you keep an open mind flipping commercial real estate is more than possible.

Overall, flipping commercial real estate can be quite profitable. You may not come into the big money early on, but if you stick with things you will be a success sooner rather than later. And who knows, you may be the next person to make millions by flipping commercial real estate. It could happen to you!

Overseas Property Search

2008-11-03T06:23:00.000-08:00

Buying a property is simple, as long as you do follow a checklist. It is really difficult to spend time in
researching property overseas, but if someone found the property exhibition in a desired region would help them a lot in relation to meet the developers and real estate agents, and get first hand knowledge of about their properties and locations.

Generally I suggest before you made up your mind on a type of property, it is important to decide what is your reason for buying a apartment, villa or land. Even you could classify yourself in three types; direct investor, 2nd line investor, and holiday maker. By knowing in which category you are falling helps you to decide buying a property as an investment but using it for holidays or you could also buy a travel home and look at living their permanently or you can invest in the property and rent it out. But remember it’s not always a price and building when buying international (overseas) one also need to check the climate, political stability, economic conditions, health care, letting potential & law n order situation.

For instance, if choose UAE as desired destination for our overseas property investment, then what market facts we

have that either move forward or backward with investing intentions.

1. Property market in the UAE is witnessing continuous growth.
2. Lot of local, regional and international investors intensifying current property market.
3. Government guarantee and security for property buying
4. Influx of development projects with new & exciting architectural designs
5. Controlled law n order situation
6. Economical & Politically stabled region
7. Multi Cultural Society
8. Middle East Business & Tourism hub

When you found all these in one place and also you understand which category of buyer you represent, you will find searching of your property much easier and afterward in investment.

Real Estate Investment Analysis Software

2008-10-31T09:42:00.000-07:00

Investing in Real estate is acquiring an increasingly critical profile with advancement in technology. Like other businesses all aspects of real estate investing also have become technology oriented and complicated. You may find handling day-to-day operations quite stressful and difficult to handle without obtaining expert support. The easiest way to cope with such a situation is to use real estate investment analysis software.

The software is user friendly and will prove to be the ideal option to manage your high profit ventures in real estate investing. To make it easier for you to handle the software, a detailed user manual and a CD are provided along with it. This will let you clearly comprehend the application and procedure for using the software.

The software consists of many features that are of immense use to committed real estate investors, brokers, real estate agents and developers. It allows quick and easy real estate investment analysis presentation for individual investors that help them in understanding implications of their investment moves and lets them make an informed decision on real estate investing.

There are many companies that sell real estate analysis software. Good quality software is a powerful tool that will let you determine your return on investment and analyze cash flows. It provides a near accurate estimate of future wealth/net worth and allows comparing multiple income properties through an executive summary. Using an executive summary you can run assumptions against different income generating properties and then make a comparison of the financial data derived through the executive summary to determine the property that will give the highest return. This caters to systematically building wealth through your real estate investments by making quick and better-informed decisions.

This user friendly software is available for all types of real estate like apartment buildings, single family rental housing, office buildings, industrial properties, ware houses and mini warehouses, commercial buildings etc. The software will help you generate all types of related financial reports like income statements, cash flow statement, rent roll, mortgage and equity, sensitivity analysis, executive summary, operating expenses etc. It can also let you have a breakdown of operating expenses in the form of expense item amount expressed as a percentage of total operating expenses and a percentage of effective gross income as well.

Real estate investing analysis software provides you with the flexibility of entering 2/3 mortgages on a one property to let you make a mortgage analysis of your investment real estate. It can take into account interest only mortgages, fully amortized mortgages, one future mortgage or refinancing, interest only mortgage with balloon payments, fully amortized mortgage with balloon payments etc.

You must look for real estate investing software that allows powerful sensitivity analysis by incorporating variations in purchase price, loan interest rate, appreciation growth rate, income growth rate, expense growth rate, vacancy rate and reinvestment rate of return.

In the real estate business you may come across terms that may appear to be complicated or confusing. Good real estate investment analysis software will invariably include an encyclopedia to help you out with this. It will clarify and help you understand the various real estate terms as well as its principles, concepts, practices and calculations with explanations to financial indicators like return, cap rate, IRR, GRM, DCR, DSR etc.

Investing in Real Estate With Government Grants

2008-10-23T19:53:00.000-07:00

Not all people interested in real estate know that there are grants for real estate especially from the state and federal government. Billions of dollars are available as grants and there are many ways to put this money in to good use.

Grants from the government are offered to help them outsource and distribute the workload of providing homes to the people. While it is mainly the job of government housing agencies, many real estate businesses and non-profit parties can help make it possible for the government to reach out those who need it.

Loans and Grants for Real Estate Investing

The government provides grants for real estate investing as well as low cost loans. Grants and loans for real estate investing programs such as property acquiring, building homes, purchasing land, rehabilitation and refurbishing properties, are just to name a few. And real estate grants and loans are accessible provided that you meet the requirements set by the government.

The availability of grants for real estate investing from the government is also meant for non-profit organizations. One good example is investing in senior homes. The government has supported projects for the senior citizens and has continually given considerations to most projects that involve them. Non-profit organizations can work with real estate investors in these home building projects and they can utilize the grants for real estate investing programs and such.

Real estate investors can also take advantage of the grants for real estate investing. They may apply for a loan from the government or they can be a partner and offer their services to ongoing real estate investing programs.

Real estate investors who have partnered with the government can benefit from sharing their services and expertise. Since there are billions of dollars in funds for grants, chances are these investors spend almost nothing in these real estate investing programs.
Furthermore, if the partnership thrives and shows a promising future, more grants for homes and non-profit real estate programs can benefit from the government funds.

For new real estate investors, getting a grant for real estate investing may pose some challenges. But never fret because the government is there to help everyone. Offer your services and expertise to them and ask for their specific requirements to become a partner. Who knows, you might thrive and succeed as a real estate investor right away when you put your knowledge into good use while servicing your fellow citizens.

Commercial Real Estate Investing

2008-10-23T19:52:00.000-07:00

The term commercial real estate means real estate assets that are used for business operations. Commercial real estate can be leased or owned. Commercial property may include a wide variety ranging from office buildings, retail space, and large warehouse to industrial facilities.

Nowadays commercial real estate investing is considered as good investment opportunity because recent market trends have pointed out that it has the capability to support a weak economy. The factors that contribute to the strong commercial real estate market are consistent consumer spending that is good for retailers, increased business travel which is good for hotels as well as rising land cost.

Commercial real estate investing is riskier and more costly than others, but it can be very profitable too. Today the commercial property is a $4 trillion market that has increased by about 20% over the last five years. The brightest part is that most of the smaller investors are able to profit from commercial real estate investing.

Initially there was a notion that commercial real estate investing involved a huge amount of risk. But those who understand the basic or the fundamentals of commercial real estate investing know that the real risks which were evident a few years back have reduced over the last ten years. In fact now the present investment climate indicates that commercial real estate investing has the opportunity to grow a risk premium from activities that have became very stable. This means that when a deal makes a good economic sense then all the people involved are benefited.

The prospective profits of commercial real estate investing are affected by several factors. Keeping in mind the terms and length of any lease, the impact can be huge on local economy and market considering the reliability of tenants and the overheads involved with the property. In order to make profits, one should go for a long-term lease from a major tenant.

Florida Real Estate Listings

2008-10-18T11:19:00.000-07:00

Florida, also called the sunshine state, is known for its sunny weather, beaches, emerald green water and a plethora of entertainment activities. It has evolved as a real estate paradise. The sudden increase in its popularity as a vacation destination has led to the demand of realty listings in Florida. People who intend to shift to Florida need to check realty listings in order to find all the possible information.

Elements of Real Estate listing:

Real estate listings serve as a information bureau to customers. The listing provides complete information regarding the property owner, size of the property, details of the property such as number of rooms, halls, balconies, bathrooms, fittings and fixtures, swimming pool, whether it has a bench front or hilltop view, cost and other important information that you would probably need to consider before making a purchase. The ideal place to get a complete list of details related to property in Florida is The Florida Association of Realtors.

Multiple listing services:

Multiple listing services, commonly known as MLS, offer a directory of properties for sale in the area that could easily be accessed by real estate agents and buyers. The widespread multiple listing services came into function in the 1950s. Generally, it is subdivided into various categories that are:

. Residential for sale: It consists of single-family and condo-homes.
. Residential rentals: It refers to short-term or long-term rentals of condos or single-family homes.
. Acreage or lots: It means commercially zoned and residential lots and acreage.
. Residential income properties: It includes condos and apartments.
. Commercial improved: It refers to commercial properties for sale.
. Commercial space for lease.
. Commercial unimproved: It includes commercially zoned land for sale
. Business opportunities for people seeking established business on sale.

The common myth regarding MLS is that people selling their own houses are generally not aware that they could get themselves enlisted in the MLS even without the help of a realty agent. This service is very helpful to people who want to sell, buy or rent their properties on their own. MLS has become a comfortable concept as it can be accessed through the Internet as most of the buyers conduct research on the website.

Realty listing through agents:

Realty agents could also provide listing information along with the feedback on the latest trend in the Florida realty markets. They are able to suggest the best available locations in the city. But, it is an expensive proposition, since the agents charge high rates of commission from a client. Generally, they charge six percent of the amount of sales or purchase cost.

You could ask your realty agent to enlist your home in the multiple listing services, for a fee. Real estate listings have made buying, selling and renting homes in Florida an extremely convenient task. People have developed considerable interest regarding the realty listing and incorporating it in a sensible manner.

Real Estate Listings Online

2008-10-18T11:17:00.000-07:00

With real estate markets struggling in tumultuous waters, real estate sellers are looking toward more non-traditional venues to widen exposure for their properties. You can now look at a real estate listing online rather than going through traditional agents. Using a free real estate listing has its ups and downs; here are some tips for evaluating online properties and how to make your search work for you!

With traditional newspaper listings, you will read through various listings and segregate the ones that seem the most appropriate for you. You then have to write down the phone numbers and contact data on a piece of paper and then call up the owners/brokers to make an appointment to see the property. Without a photo, your work may be fruitless when you find yourself driving up to a shanty or a piece of property that does not at all resemble the parcel that was advertised.

Also, newspaper listings normally run on a weekly basis. So if a parcel has sold during the week, there is no way you can check it without actually calling up the owner/broker. On the other hand, a free real estate listing online is updated every day or possibly twice a week.

As we all know, presenting a timely offer can make a huge difference when it comes to negotiating the price for your new home. When you employ online listings, time is on your side. You don’t need to go through all the listings in order to determine the ones that meet your needs. You can specify various search criteria to view only those that you are interested in. This is an enormous advantage when compared to newspapers, where listings are sometimes presented in no particular order. You can save a lot of time online by browsing only through listings that are of interest to you.

There is also no need to take down phone numbers etc; you can easily get printouts of the real estate listing online you want. Some websites also furnish facilities to track those real estate listings. You could even contact the sellers by placing a message through the website (some websites offer this type of email feature). An additional significant feature of online listings is that a lot of them have images of the property. You can browse through the images and see if you like the property before contacting the owner.

A real estate listing online offers a lot of ease. But along with the convenience, a free real estate listing has some caveats. Use the websites wisely for compiling information or finding a realtor. Remember that in some cases sellers who choose to advertise may be a little more dedicated about making a sale. Use the ease of the Internet to help you save time and simplify your selected properties. Whether you are looking for commercial real estate, an industrial property or apartments in other states or cities, the Internet offers many opportunities for prospective buyers to compare and contrast the latest listings, increasing your choices and your purchasing ability!

Real Estate Developers at a Glance

2008-10-18T11:16:00.001-07:00

A ‘real estate investor’, who can be also called as ‘real estate developer’ is a business person who buys and sells properties like land and houses. He is the person between the seller and the buyer. In countries like United Kingdom, a real estate developer is also called a ‘real estate broker’. A real estate investor meets many financial and business choices everyday, like capital gains, tax credits and interest rates. For this he needs to have a deep knowledge on real estate investing, he should also be capable of understanding things and a hard worker. A real estate investor gets his knowledge only through years of experience in real estate investing; he also needs to have deep interest and dedicated. He should to be patient while dealing with his clients and ready to wake up at 2:00AM to speak over the phone!

A real estate investors or brokers frequently have sales people, who are also called as ‘agents’, who help and assist real estate investors in the process of selling properties and even carries out other legal activities, refers legal documents and supervise things. To work as a real estate investor, the investor needs a license as the money is been exchanged between parties and the broker needs to be in presence as the agents work. Real estate investors without license will not be allowed to work unless the property buyer is working with his real estate developer. In this case, there is no necessity of any paperwork. Initially you need to be accredited as a real estate investor to obtain a license which is followed by a mandatory ninety hour course and you have to pass the real estate law exam.

A real estate investor generally targets either residential real estate or the commercial real estate. But there are investors who can handle both. If you need to survive with commercial real estate investing, then you need to have gain lot of experience and knowledge through residential real estate investing. But in many cases the experience which you obtain in residential real estate won’t be enough! Investors dealing with commercial real estates must have enough capital and they need to learn more things as they handle rich business people who will be quite analytical and expect better things from you. Compared to residential, commercial real estate investing is known to be more rewarding and challenging.

Real Estate Development Agreement

2008-10-18T11:11:00.000-07:00

Of all of the legal agreements that you will have to go over in your lifetime, a real estate development agreement is one of the longest and one of the most complicated. Many of the other forms we've looked at here are short; usually one or two pages and they can be filled out and read over in only a few minutes. With a real estate development agreement, you will likely need hours to wade through one of these dense, 10-50 page documents. Let's take a look at what a real estate development agreement is and why they are so lengthy.

A real estate development agreement is just that, an agreement to develop a parcel of land for personal or commercial use. The agreement can be between an individual and a construction company, a commercial builder and a city or town, a city and town and a retail business or other combinations of the above. Some real estate development agreements between large companies like Wal-Mart and a city or between a company that will be dealing with hazardous chemicals, like a gas station and a city, can be extremely long as they need to cover any eventuality that could arise during building or later on if there is an accident.

The typical real estate development agreement starts off with simple definitions of who is involved with the agreement, the date and where the piece of property that is scheduled for development is. The agreement will also spell out the municipality that is in charge of overseeing the development. The next part of the contract is often the "Witnessed" section that lists all of the necessary steps the builder has had to complete up to this point to have the development agreement approved by the city. The city will make sure that the area you've chosen to build on is properly zoned for the type of building you intend to do and they will also check that you've submitted a development plan, which is different than this agreement, to the city in advance of this form. Once those steps are met, the meat of the contract is spelled out.

The first section is the definitions that simply spell out what each term used in the contract refers to. For example, the city or builder will likely define what "total cost" means so it can be used throughout the contract. If it is a simple home building contract, there will only be two or three definitions, if the contract is for commercial property, there could be dozens.

Next, the development plan sketches out the project. This section is often short and simply lays down the ground rules of the build, such as the time frame, property limits and so on.

The improvements section can be quite long as it outlines all of the improvements this development will do with the city like improving sewer lines that it hooks up to.

The final sections of the contract go over deadlines for building and things like landscaping rules, parking rules and what rules are in place for further building on that parcel of land. Overall, a real estate development agreement is often as complicated as your plan is: simple for homes, complicated for commercial properties.

Money Rules for Real Estate Investors

2008-09-21T11:44:00.001-07:00

If you're going to invest as an investor, you need to play with investor money rules. It's the same in any kind of sport. You need to know the game you're playing to know what rules to follow.

If you're going to play hockey, you need to play by hockey's rules. If you're going to play tennis, you need to play by tennis' rules. If you're trying to play hockey with tennis rules, you're not going to have a very successful hockey game. That's what often happens when people start to invest in real estate. They try to play this game called real estate investing with consumer rules. They mix apples and oranges, and end up with lemons.

What are consumer money rules? First of all, when you buy real estate as a consumer, it's all about you and your money. In order to buy a property using consumer rules, you need to have excellent credit. You need to have enough money to make a down payment.

When you want to become a real estate investor, you will find that those consumer money rules often get in the way. They hinder you from making money in real estate. One of the primary reasons people are unsuccessful when they attempt to invest in real estate is that they think they have to invest in real estate the same way they invest in their own personal property.

In an expensive market, many people can't even get into the game to buy their own homes. And in a very expensive market, it is almost impossible to charge enough rent to pay the mortgage. The result is that when people try to buy investment property using consumer money rules, most people cannot even get started. They can't pay the down payment or they don't have enough credit.

It is possible for people to build real estate portfolios following consumer rules. The problem is that buying real estate this way ties up your money and depends on your own credit. As a means to create financial independence, this is a long and laborious way to build wealth.

Investors live in a world that is different than the world of consumers. Even though we're all living here on the same planet together, investors think differently. They know that there are different rules of money.

The first rule of successful real estate investing is to invest with investor rules rather than consumer rules. As a consumer, it's all about you. As an investor, it's about the property and the deal. The focus is taken away from you, your money, and your credit and directed to whether or not the deal makes sense. This is very good news for people who want to invest in real estate. You don't have to have a lot of money or excellent credit to invest. You do need to know the investor money rules.

Use Your IRA For Investing in Real Estate

2008-09-21T11:43:00.000-07:00

One of the best, most secure, most certain to grow investments you can make is real estate, but with an IRA, investing in real estate never seems to be an option offered. That's not, however, because you're not allowed to invest in real estate with your retirement cash; rather, it's because most IRA funds don't take advantage of a little-known IRS rule that allows for it.

If you're like most people holding IRA account, you have your funds invested with a bank or a brokerage. That means you're limited to stocks, bonds, annuities, and other paper securities - not real property. In today's market, that may mean your IRA funds are tanking, and it certainly means that they are not growing as robustly as they were five years ago. The real money to be made right now is in real estate.

You can get into IRA real estate investing by looking for custodians that specialize in real estate IRAs, using the rules contained in Section 408 in the Internal Revenue Code. These special IRAs build a portfolio around all kinds of cash-generating and appreciating real estate: commercial, residential, rental, industrial.

It is not legal to hold your own 408-based IRA; investing in real estate with your retirement funds must be done by special custodians. However, you have freedom in many ways to work with your IRA real estate. For one thing, your custodian holds your property, but doesn't necessarily administer it, select properties to purchase, or even set and collect rents. These may all be your tasks, and they give you a great deal of leeway in how your own money gets invested.

It's easy to see that an IRA investing in real estate gets very complex. Do rents get re-invested in your IRA? Can you charge yourself for administering your own properties and make cash from your IRA in that manner? What kinds of property can you purchase to include in your real estate IRA? Is it possible to hold foreign real estate in your domestic IRA? A good custodian can tell you the specific rules governing your IRA; real estate investing through this route is more complicated than just doing it yourself but the tax advantages make it worth it.

While if you work it properly you can benefit to a certain degree from IRA real estate investing beyond the simple IRA, you cannot put your own home into your IRA, nor can you lease space in one of your IRA properties for your own business. You also can't put properties you or your immediate family already own into your IRA.

IRA investing in real estate rules do allow you to purchase property in conjunction with others to put into your fund, and it allows you to include some leveraged property as well, provided your custodian allows for it. You can also sell properties while they are in your IRA, provided you don't sell them to yourself or to a family member.

One of the best ways to realize a great benefit from IRA investing in real estate is to hold a property that will become your retirement home in a Roth IRA. Upon maturity, you have the custodian distribute the property in-kind - assigning the title of the home directly to you. If you did this with a traditional IRA, you'd be liable for income tax based on the value of the property at the time of distribution; with a Roth, you owe nothing outside of costs associated with the transfer. There are few nicer gifts to give yourself to celebrate retirement.

The Three Cardinal Rules of Negotiating Real Estate Transactions

2008-09-21T11:42:00.000-07:00

You can find hundreds of books on the art of real estate negotiation . . . but pardon my frankness, many of these books offer stale strategies and tactics that just do not work.

For example, in many books you can find the ABC rule - "always be closing." That is, you want to have a bunch of deals in the works and you want to get to "yes" as quickly as possible in order to close that deal.

However, getting to "yes" ASAP means you leave out a bunch of steps in the middle, such as carefully pre-qualifying your prospect by asking lots of questions. (I call this process "Getting to 'no' first - meaning, you weed out those who aren't serious about a deal).

It's also why I've simplified negotiation down to three cardinal rules: the person who mentions price first loses, get to know your opponent before meeting with him or her, and always get your agreement in writing.

Negotiation Cardinal Rule #1: The person who mentions price first loses

When I first started doing lease options, I had a woman call me to see if I had a specific type of property that she could then lease to own. She had $8K put aside but unfortunately at the time, I didn't have anything in inventory that met her requirements. A few weeks later I found a property and called her about it and said that if she liked what she saw after doing a drive by, we could do business that very day.

She ended up loving the property. We did the walk through and as she and I talked, I knew that $8K was sure money in my pocket.

"Jim," she said. "I have a problem. Remember how I said I had $8K? The problem is I don't have $8K."

My heart fell clear to my stomach and my knees went soft. "Uh oh," I thought.

She then went on to say, "I don't have $8K, I have $10K. Is that ok?"

Now, I if had opened my big mouth and had said at the beginning of our negotiation talk, "I'll need a check for $8K," I would have never learned she had an additional $2K in her pocket. The moral being - never be the first person to talk about price.

Instead, ask lots of open-ended questions that will give you solid information in order to determine where people stand. For example, when I'm talking to a person who is looking for a house or a lease option, I ask questions such as, "It sounds like you're living in a great place. Why do you want to move?" (What I'm really asking is, "Are you a deadbeat?")

Or, if I'm sitting at someone's kitchen table and he's spilling his guts to me about his house going into foreclosure, I ask, "If you're able to sell the property, what you would you be comfortable asking for it?" Having the property owner tell me first what he wants for the property is akin to him showing me his cards before he makes a bet. In other words, it gives me the advantage.

Negotiation Cardinal Rule #2: Learn about your opponent before meeting

One of the first things lawyers do when preparing to negotiate is consult a lawyer's directory. They want to know which school the opposing lawyer attended, what firm they work for, if they've made partner, etc. And, if you're the lawyer who works for a larger firm, you'll have the opposing lawyer come to your office in order to intimidate him or her.

The same principal - know you opponent -- works in real estate negotiations. For example, if you're working with a bank on a short sale, you'll want to get to know the bank and its methods of operating and whether its personnel are "user friendly" or they're a bunch of pit bulls. One bank I work with is very confrontational and negotiating with them is like pulling teeth. I learned very quickly that I have to have all my facts, comparables, etc. ready and at hand when dealing with them because if I screw up, I do not get a second bite at the apple.

Knowing your opponent also means learning what kind person he or she is. For example, analytical people or number crunchers will want you to substantiate and document everything. Touchy-feely people, on the other hand, will want to talk things out.

To learn more about your opponent, talk to people in your network, do some online research (i.e. do a Google search), and attend your local REIA meetings - people love to talk and by asking questions and being a good listener, you're sure to pick up some good "off the record" data.

Negotiation Cardinal Rule #3: Always get everything in writing

Although we all want to believe other people are good and honest, the sad truth is that disagreements can and do occur in real estate negotiations, which is why you need to put all agreements in writing. This is especially important in Massachusetts, where verbal agreements are not enforceable.

If you do get a verbal agreement, at the very least follow it up with an email or letter outlining the conversation and what was agreed to by each of you. If you're dealing with a bank regarding a short sale, send a quick fax to whomever you spoke with stating something like "These are the parameters of the deal and this is what we agreed on" and then list everything discussed in the conversation. Be sure to sign and date it and call the person to ensure he or she received your fax.

Developing your negotiation skills takes time but is well worth the effort. In order to negotiate your way to better profits, don't blurt out a price first, get to know your opponent before you step into the negotiation arena, and always get everything in writing!

Four Ways to Boost Property Value Quickly and Inexpensively

2008-09-18T21:12:00.001-07:00

This real estate investing post wants to show you four ways real estate investors can increase investment real estate value quickly, easily, and inexpensively.

1) Upgrade Vacant Land

If your investment is vacant land (not improved rental property), there are several things that you can do in an effort to add value. For instance, you might consider getting a temporary use so the land can be utilized maybe as a U-Pick strawberry patch, or an overflow parking lot for a used car dealership. Clean out any junk or debris littered on the land, and try to get the neighbors to clean up their properties, as well. If the lot is barren, consider strategically planting some trees or plants. Finally, check with the local authorities and see whether the land can be rezoned to a higher and better use.

2) Spit-Polish the Exterior

Curb appeal is the property's calling card. The first impression a prospective buyer gets as he or she drives past or up to your income property can mean the difference between a sale with a profit and no sale at all. Start with the landscaping. Pruning or replacing plants and shrubs around the building is a good way to add very positive results immediately and in the long-term. In fact, landscaping is probably one of the best elements for you to consider first.

Redesigning the property's entrance can also dramatically impact the property's appearance. As can a new walkway or the installation of a new door (many consider the "front door appearance" one of the very best single expenditures). New door hardware, a new brass mailbox, and a new brass doorknocker around a freshly painted or new door, for instance, can be all it takes to give an overall impression of quality throughout the building and the kind of "remodeling" that can turn a dull, drab property into a fresh vibrant one that seems to beckon new buyers.

How should you handle things that need "fixing"? If you're new to real estate investing, you might shy away from properties that need a lot of repairs unless there's ample capital to handle hidden problems that could surface. Otherwise, here are some tips.

Small items that need to be fixed should be completely repaired with quality material. Broken toilet seats, doors that stick, cabinets that will not open or close, plumbing that drips, and so on, are all minor things found in most income property that can be fixed without much cost. Just be sure to do it right and to use quality material.

3) Dig for Interior Treasure

If you're looking at an investment property that's priced below market, chances are it's because the previous owner failed to care for it. Turning around a property that hasn't been cared for can take ample cleaning, fixing, and painting, and may take time, but it will be worth it.

Here are some quick and easy things that you can do during the inspection process to determine whether the property is hiding a few "gems" that might give the interiors of the rental income property a fresh and more expensive look.

Look under the carpet for hardwood floors, tile, or marble. These may be much easier to bring back to their natural state than replacing the carpet, and can add value. While you're at it, also look for rotten floorboards, termite damage, and worst of all, asbestos. The key is to know what you are dealing with in all eventualities, and if a problem is encountered, you can get an estimate on what it will cost to deal with it, or walk away from the deal by using one of the outs in the purchase contract.

Check under the paint on doorplates, hardware, and railings. Countless brass fixtures and other brass items have been discovered in older properties under blankets of paint that you wouldn't be able to replace today for less than a fortune.

Tap on the doors and walls to see whether they're solid. Solid wood doors in good shape can be restored and add value to a neglected building. Solid-sounding walls might indicate block or heavy plaster, which are more costly building materials than cheap wallboard, and therein capable of adding value to the real estate. Plus, these better-quality features are sure to provide you with good marketing copy later.

4) Exhibit Pride of Ownership

Any owner making an effort to maintain a property in top condition and shape is an owner exhibiting pride of ownership. Thus giving the impression that the property was purchased to be "owned" and not for a fast turnover, and in turn making the most positive statement to tenants and future buyers. Moreover, how a landlord maintains his rental property becomes public knowledge in a short period within small communities, and even in larger cities, eventually becomes known inside real estate circles.

Just be clean and neat. Pride of ownership doesn't have to be lavish or extravagant, nor should it be unless the rents and property location warrants it. The idea is to draw interest in the property and at the same time to eliminate any doubt that things are not well maintained.

My Prediction For UK House Prices

2008-09-18T21:10:00.000-07:00

I've been absolutely inundated today with different Interest groups littering my inbox with their house price predictions. Here is a snapshot:

-Hometrack HPI - Annual house prices fall 5.3 per cent.
-Halifax HPI - Annual house prices fall 10.9 per cent.
-Nationwide HPI - Annual house prices fall by 10.5per cent.
-Land Registry House - price growth fell for the 11th month in a row in July.
-Bank of England Number of mortgages approved falls to new low.
-Rics survey - Over the last three months, the average number of transactions per surveyor has fallen to 12.7, the lowest figure since the property survey began.

In a nutshell, here are the facts you need to understand from this data:

First of all, there is no such thing as a UK property market. With Mars Bars the price is going to be pretty uniform across the country. With beer, the price is going to differentiate from bar to bar but stay within a certain band. Property is something else altogether. Take two identical houses next door to each other. Both vendors want to move. One vendor has no mortgage on his house and sells up for £90,000. Does this mean that next door will automatically sell for £90,000? The answer is no. It may be the case that the next door neighbour has remortgaged some of his equity. He may have a secured loan that needs to be paid off. He may have to achieve £98000 in order to have enough cash to use as a deposit on his next home. Just because one Newsagent decides to sell his Mars Bars at 10p as a promotion does not mean that every Mars Bar in the UK is now worth just 10p!

Prices will continue to fall. This House Price crash has been caused almost entirely by the increased difficulties in finding mortgage finance. At the moment banks just don't want to lend mortgages unless you have a seriously big deposit to put down. This situation will not carry on forever. Eventually, some bright spark will say, "wait a minute; we could make a killing if we helped out FTB's with some more creative finance!" At this point a light bulb will appear above all the Banks and Building societies HQs and the rush to lend will start all over again. Remember - it is mortgages that make banks money! It is mortgages that provide the profits that allow banks to give you interest on your deposits. It is mortgages that allow you to enjoy free banking. It is mortgages that keep bank employees in work. Basically, mortgages put food on the table. When the banks remember this lending will recommence in earnest - and prices will shoot higher than ever before. This situation will come about at some time in 2009, or perhaps take as long as 2010 - but it will happen, guaranteed.

Real Estate Marketing Ideas That Attracts Listings & Gets Properties Sold Fast

2008-09-17T07:09:00.000-07:00

Implementing effective real estate marketing ideas is very important if you want to be successful. It doesn't matter if you are selling a small home or a large building that could be used for various types of businesses. Chances are you have though about various real estate marketing ideas that people have used in the past. Some of them may work for you but others won't.

You need to make sure you don't get yourself too wrapped up in any one real estate marketing idea though. Should that happen you may find that you are having a hard time moving the property. You may blame it on the location, the economy, or the price but it may all come down to the marketing for it not being effective. With the right marketing you can get that home or building sold in no time at all.

Things That Don't Work

One of the main reasons why individuals and business owners decide to list their property with a real estate agency has to due with marketing. The owner of the property may be intimidated about such issues so they turn to those with experience. They know that some of the best real estate marketing ideas that a real estate agency have include posting the property online as well as listings in a newspaper and in their office.

All of those make sense as people will be turning to them for resources. However, the marketing ideas being used right now are not working at all. 98% of realtors would list their properties the following way:

• List the property on MLS or a local newspaper
• Put up a sign on the lawn of the home for sale with your picture and info
• Host an open house and wait for potential buyers and other agents to show up to see it
• Hope for an offer to be submitted when an offer comes in seal the deal
• Collect your commission once the paper work and title work has been finalized.

The problem is this strategy is just a small drop in the bucket on getting your listing sold in this real estate crisis. You have to think outside the box and you have to use proven marketing ideas that will turn this market to your advantage.

Real Estate Marketing Ideas That Work

The key to using successful real estate marketing ideas is to really think about what you want to accomplish. You will go about it differently for long term real estate business versus a one time effort. For example if you plan to have a healthy career in real estate you will wish to use the real estate marketing idea of using the internet to your advantage to gain expert status in your area. You want to become to the go to expert to buy or sell a home.
The days of personalized interactions aren't a thing of the past. For on going marketing you can even set up a booth at various events. Have pictures of current listings and ask people to fill out information to contact them. You can even offer a drawing for a nice prize to entice them to sign up.

But the key is using the internet to your advantage and here's how you do that. Offer potential clients something of value that they can use immediately to attract more listings and buyers. You can provide clients with a report on the current stages of your area, what's working on getting a home sold, what's working on getting the best price of a home etc.

Take advantage of the Spring Real Estate Season!

2008-09-17T07:08:00.000-07:00

When I was involved with New Home Sales and Marketing we would literally sell 60% of our total annual new home sales by March 31. I remember what a revelation it was when we realized this. If the percentage sales numbers and date was accurate did it not also stand to reason that we should be concentrating 60% of our marketing budget and efforts to that same time period? Of course it did! The same theory holds true to the real estate re-sale market.

While I can understand this phenomenon in northern climates where winter's icy fingers keep prospective buyers at home in their cozy confines - but why do states like Florida and other southern climates experience the same strong "Spring" market? I personally think it comes down to a state of mind. Spring is like being re-born, a time of year when change is not only welcomed, it's embraced. Not to mention the fact that Realtors are just getting home from their lengthy winter vacations to their southern condos (and now they have to pay for it). The same principal holds true for home owners that decide to sell their own home. For Sale by Owner listings see the same incremental increases in Spring as conventional Realtor listed properties. More importantly "demand" goes up - buyers also get into the "Spring has Sprung" mode and start their search for that new home.

That all said - it's important to "prepare" your home for this Spring Real Estate "rush". Use the winter months to start and complete any interior renovations. There are many projects that can be completed over the winter months. Both Kitchen and bathroom remodeling is ideally suited to the winter months. You can install new flooring, new light fixtures, towel bars, door knobs, kitchen pulls etc. You can also do interior painting or wallpapering (remember - always stay neutral). Obviously, the more work you can do yourself the more equity you add to your home. I find it very helpful to start one project at a time - and don't start a new project until it is done. This approach ensures that you "add" equity to your home.

It also provides a sense of accomplishment that can carry you to and through the next project at hand. I have seen many homes where projects are started and just left incomplete, they would have been better off just leaving it alone - you certainly don't add value - in fact more often then not, incomplete projects actaully de-value your property. If you don't feel comfortable taking on a project - don't - hire a professional. Sometimes it's just as rewarding to stand back and say "I paid for that".

The important thing is to get your home ready for Spring Real Estate season, but don't feel you absolutely have to list it if it isn't ready. You only get one chance to make a first impression - so make sure it's ready. Better to get to the party late then arrive not looking your best.

Ready, Get Set - GO!

8 Specific Advantages to Investing in Real Estate

2008-09-17T07:07:00.002-07:00

There are several advantages to invest in real estate over other investment vehicles.

Financial Leverage

Leverage is simply the extent to which debt is used to finance real estate. Successful real estate investors optimize (not maximize!) their leverage. The general rule is "Borrow to buy, sell for cash." More leverage can make a good investment a great investment. Wise real estate investors generally look for those properties that provide the most financing.

To optimize leverage, many investors have a specific strategy that they use in identifying investment opportunities. This involves acquisition strategies that minimize the cash necessary to get into a project and divestiture strategies that look to all cash exits.

Operating Leverage

Operating leverage is a characteristic commonly found in real estate properties due to its large proportion of fixed cost to total costs. This characteristic can be described in terms of the relationship between sales volume and profitability of a piece of property. Commercial real estate generally has a large degree of operating leverage due to its fixed costs.

When fixed costs are large relative to variable costs, then small increases in sales will generate large increases in profits. The other side of the coin is that large fixed costs require a substantial volume of sales to break even.

Inflation Resistance

Real estate values tend to rise with inflation. In fact, much real estate often rises faster than inflation because it is in relative limited supply compared to other consumer goods and services. Because real estate supply tends to be inelastic (insensitive to prices), as demand increases prices will rise faster in this sector.

Of course, a word of caution is necessary. Much depends on location and the demand for property at that location. Great care must be exercised in the selection of specific commercial real estate opportunities.

Tax Advantages

Two important advantages come into play here. The first is interest costs. Interest costs can be fully tax deductible for your personal residence (up to a limit) or for any commercial real estate investment. This means the cost of funds is reduced by your marginal tax rate.

The second important tax advantage to owning real estate is the ability to depreciate any property being rented. Depreciation is a legitimate (non cash) deduction used to offset revenue that would otherwise be subject to taxes. This means you can show a loss on your real estate investment, use that loss to reduce your personal income, and thus lower your taxes.

Investing in Real Estate Is Like Owning Your Own Business

Many individuals want to gain more "control" over their lives. It is not uncommon for such individuals to want to "start their own business" to gain more control over their lives. Commercial real estate is an activity you control entirely. You find the opportunities, arrange the financing, bring all the elements together, and create something where there was nothing before.

An individual can enter this business starting small and staying small, with the real estate investing being a profitable hobby. As an alternative, an investor can start small and over time, with a few good moves, grow his or her business into a high-paying full-time job.

Debt in an Inflationary World Is Good

Commercial real estate investors are debtors. They borrow money now to pay it back later. In an inflationary environment this confers a tremendous advantage to the buyer. In theory, interest rates adjust for the level of inflation by adding an inflation premium to the real rate of interest. In the real world, this adjustment process appears slow and uncertain.

There have been a number of times within the past two decades where the rate of inflation exceeded the nominal rate of interest. The effects of inflation are so powerful and pervasive that economists see inflation as a primary factor in redistributing wealth in our society. The real question is which side of this transfer will you be on?

Compounding Cash Flows

A hallmark of commercial real estate investment is that such investments yield compounding cash flows. Taking advantage of this requires a fairly long-term horizon, but that gets back to the tortoise and hare metaphor. An individual can put $10,000 down on a well-located duplex apartment that will earn 21% annually over the next 15 years with very little risk. It takes a long time, but the $10,000 turns into $174,494!

This is the miracle of compound interest. In finance, the tortoise not only finishes the race, the tortoise wins the race too! Rabbits show a burst of speed that looks good for a short time, but they rarely finish the race and almost never win the race. Compounding cash flows are the surest way to wealth creation.

Starting Small

Social policy in the United States encourages home ownership. This has resulted in financial and banking policies that make acquiring a home relatively easy. This happens because houses can be bought for very little cash up front and interest payments are subsidized by making them deductible against earned income. Even a person with very little income can enjoy the benefits of financial leverage.

The really good news is that much of these benefits can apply to the purchase of a second (vacation) home. This is a great path to becoming a successful real estate investor. Mortgage interest on a second home may be deductible if the mortgage does not exceed the fair market value of the home and the mortgages on both your primary residence and the second home do not exceed $1 million.

Private Real Estate Money - The 5 Advantages of Private Money Over Hard Money Loans Or Mortgage Loan

2008-09-17T07:07:00.001-07:00

For real estate investors there are numerous benefits and advantages to private real estate money versus hard money loans or mortgage loans to fund your real estate investing business. Knowing the advantages can mean the difference between making a real estate deal work or losing a good deal to your competitors.

As the credit-bubble continues to unwind, traditional sources of real estate financing are drying up and real estate investors need to find alternative sources of capital such as private real estate money.

Advantage #1: Speed and Cash Flow

The ability to close a real estate deal in less than two weeks is a huge advantage over having to wait weeks or even months for a typical bank loan approval. The importance of speed cannot be overstated in a competitive market and quick cash gives you a big edge over other investors.

Imagine if you are the seller and someone comes to you to buy your house and has a two or three month escrow period before closing plus several financing contingencies versus another investors who will close in two weeks with no contingencies. Not hard to tell which offer the seller will accept. And the real power of this offer is the seller may accept a lower price to close quickly with no contingencies.

So not only do you get the deal from the other investor, but you get it at a lower price. The power of private real estate money is the ability to close quickly and drive better deals terms to your advantage.

Advantage #2: Simple Paperwork

Have you ever gone to a closing on a traditional mortgage loan and had to sign 2 inches of paper work. Now image going to closing and only signing two or three documents (yes that is not misprint).

Private real estate money deals are incredible simple and the total paperwork is normally less than 10 pages and includes two or three simple documents. The documents included in a private real estate money transaction are a mortgage (Deed of Trust), an installment note and possible a disclosure statement. The only other required paper work is to name your lender on your property insurance as you would in any normal loan situation.

Advantage #3: You Control Terms and Conditions

One of the incredible advantages of a private real estate money transaction is you control the terms and conditions of the loan. For example, you can offer a very short term loan of only 6 months if you know you are going to flip the property for quick profit. Or you can offer a 5 or 10 year term if you plan on holding the property for a long term rental.

You can also control the conditions of the loan such as not allowing a prepayment penalty for early prepayment. Most normal mortgages and hard money loans require a 1% to 10% prepayment penalty to pay a loan off early. With private lending transaction you control the conditions and can simply add a clause that allows an early prepayment without a penalty. That can mean a huge savings down the road.

Advantage #4: Reduced Fees and Costs

Private real estate money is less costly than mortgage loans or hard money loans. For example, most hard money loans can ultimately have total interest cost of 20% or greater by the time you factor in all the fees, points, interest and other costs. Even mortgage loans can be very costly with fees and upfront points factored in and the high interest rates most investors must pay versus home owners. Loans from private real estate money sources usually have no points and very few costs. The total cost of most private loans is somewhere in the 9% to 15% range with little upfront or back-end fees.

Advantage #5: Flexibility

Private real estate money provides tremendous flexibility for both you the borrower, but also for the private lender. The private lender can invest small amounts of $5,000 or less in deals or large amounts to fund larger apartments or commercial property purchases. You can also work with lenders to structure a term that fits the lenders needs.

Advantage of Buying Pre-Constructed Miami Real Estate

2008-09-17T07:06:00.000-07:00

Miami has some of the most sought-after properties available in America which justifies high prices.

It is still possible to have your dream of having sunny days and living near white sand beaches all-year round without going broke and losing sanity. You will be very pleased to know that there are so many advantages that come with buying pre-constructed Miami real estate.

Building Advantages

With pre-constructed real estate, you don't have to wait so long or constantly keep watch over building procedures since everything is already made. All you have to do is find the structure and space that best fits your needs and aesthetic taste. There are so many designs and structures to choose from in Miami with varying ages, locations and prices. You get to spend less compared to making drastic changes that people usually do when constructing something from the rough.

In addition, you don't have to worry about sewage, energy and water supply since all these are pre-fixed and perfectly adjusted to keep the real estate as low maintenance as possible. The living space is already adjusted according to the estimated number of people who will be staying.

Most pre-constructed homes are also more ecologically friendly and energy-saving because of the materials and techniques used. Examples are pre-built insulation and the use of recycled constructive material that lasts as long as regular steel and wood.

Security Advantages

Choosing pre-constructed Miami real estate like a condominium will guarantee safety of inhabitants. Most Miami condominiums hire professional security guards for the convenience of their tenants. Neighborhoods are also relatively safe and secure especially gated ones. There are actually streets and communities that are mostly comprised of pre-constructed real estate and homes. In that sense, there are always people around who can help you in every way.

Several banks in Miami are also actively supporting pre-constructed projects. You can get financial security by acquiring a loan that you can conveniently cover depending on the kind and duration. All pre-constructed real estates are also insured so you get protected against natural calamities and other untoward disasters like fire and theft. Documentations on purchase or lease will be provided to ensure that the property is legitimate and you can avail of the other benefits covered in the policy.

The Pre-Construction Market Today

At present, there are a lot of local and international transactions in Miami specifically focusing on pre-constructed homes, apartments and condominiums. The market is getting bigger since people especially foreigners like the idea of getting worry-free ready-made real estates at very affordable prices. About half of all pre-constructed real estates in Miami are acquired by foreigners. Units are usually in the $200,000 to $300,000 range but prices can change depending on the location, structure, inclusions and policies.

Commercial Real Estate Mortgages - Basics to Getting Your Loan!

2008-09-17T07:05:00.003-07:00

There is quite a difference in the process of obtaining a commercial real estate mortgage versus obtaining a loan to buy or refinance residential property. In this article we will examine some of those differences and basic qualifying criteria.

Lending guidelines have tightened recently because of the sharp upswing in defaults and foreclosures. Residential mortgages, though, are still easier to qualify for, because it is felt by most lenders that a homeowner will struggle hardest to retain their residence. That is why "owner-occupied" homes get a lower interest rate than second or investment homes. If times get tough, an owner might walk away from a vacation cabin or investment property, but would probably persevere to the last degree to keep the home they live in.

Similarly, someone is more likely to let go a commercial property than their own home. Additionally, most businesses are incorporated. A corporation is a legal "person" separate and distinct from its owners/shareholders. It has its own credit rating and shareholders, except in the case of brand-new corporations, are not usually on the hook for the liabilities of the corporation. If the corporation defaults on a loan, the lenders can only attach assets of the corporation itself, not the assets of the owners.

For this reason, increased risk, commercial real estate mortgages are made at higher interest rates than residential loans. They also require more paperwork.

For purposes of this article, we will examine the typical loan process for a small business corporation, not a Fortune 500 company. Let us use the following scenario:

James and Grayce own a store that sells newspapers, magazines, cigarettes and lottery tickets. The store is located on the ground floor of a three story building in a commercially-zoned part of Main Street. They live upstairs on the second floor. The third floor is divided into several offices they rent out to an attorney and some other small businesses. They have owned this building and their own business for 5 years. They have made good money and feel they are now in a stronger credit position and would like to refinance the building and lower their monthly mortgage payments.

This type of structure is termed "multi-use" because there are both commercial and residential portions in one building.

Their bank asks for the following documents from James and Grayce:

Past 2 years personal income tax returns including 1099 or W-2 forms, depending upon how they pay themselves
Copy of all business licenses and permits
Past 2 years corporate tax returns and audited financial statements prepared by their CPA
Copies of leases for the third floor commercial tenants
Past 6 months personal and business bank statements, all accounts
List of all other real estate they own including value, mortgage balances, etc.
Copy of previous year's property tax bill and copy of property insurance policy and invoice
Appraisal - a commercial appraisal can cost $1500 or more, compared to $300 or so for a residential appraisal

The bank is going to analyze these documents to see the following:

Have James and Grayce made their personal as well as business debt service payments on time?
How much is the building worth and how much do they owe? This is called Loan-to-Value Ratio (LTV)
What is their income versus how much they pay out for debt service? This is called Debt-to-Income Ratio (DTI)
How much rent do they collect? 75% of this amount will be able to be considered as "income" and 25% is disregarded to allow for vacancy, repairs, etc.
Their net worth: Assets-Liabilities=Capital

James and Grayce are fortunate to have been in business five years so they can provide good, solid documentation of their income from the business. They have paid all debts on time. The tenants on the third floor have been there for years and always pay on time. The building has appreciated quite a bit since they first purchased it so their LTV is low. They will most likely be approved for their refinance.

One word of caution concerning financial statements for self-employed persons: it is understandable and normal that your CPA will endeavor in every legal way to reduce your tax bill by minimizing your net income. This done by making sure to document all business expenses and deductions, among other methods. The tax return prepared will give you the lowest possible tax bill. But when it comes time to use those same tax returns to prove your income to a lender, you may feel frustrated because your "real" income is much higher than what is reflected on those returns. Well, "you can't have your cake and eat it, too." However, many lenders will look at other income documentation such as bank deposits to verify what you "really" earned. If you did not deposit a lot of cash you not only probably broke the law but you are now going to be unable to prove your "real" income to prospective lenders. So bear this scenario in mind if you are self-employed and own or wish to own commercial property or even for purposes of purchasing and refinancing residential property. The tax savings from "creative" tax strategies may be eaten up down the road by your being forced to accept higher interest rates on loans. Just something to ponder...

As always, you may wish to consult with a Mortgage Planner and a CPA before any purchase or refinancing of commercial or residential real estate.

Going Back to the Basics on Marketing Your Real Estate Services

2008-09-17T07:05:00.001-07:00

Mortgage and Real Estate Marketing - Tips for going back to basics and getting your business Jump Started again.

As we all are aware the Mortgage Market has taken quite a beating in the last couple years and we are in a declining market. Some Markets are still staying steady and stable. Florida is definitely had it the worst of all markets.

I am here to give you some advice and tips and tell you that people are writing business and deals are closing. I am closing loans every month. Am I closing 10 loans a month like before ? No but I am still in the business and closing loans.

Why is this? Because we have to be a little more aggressive and get off our butts and go get the business. The problem is we all got spoiled and the phone was ringing. It was so easy we became good "order takers". Now we have to change gears and our strategys and actually work hard . Roll up our sleeves and get our hands dirty. The old saying anything worth having is worth working for. Well here you go-TIPS TO SURVIVE BY!

I see alot of negative press on the news and a lot of doom and gloom amongst my peers. I saw the need to do something about this.

I see way too many people spreading this destructive negative energy around to each other. The simple fact of the matter is that the Real Estate Market is cyclical. If you have followed the cycle past and the economy you will see history simply repeating itself. Everything that goes up must come down. I am a firm believer that we need to stick together, and be positive. Because the simple fact of the matter is that we cannot control what is going on in the market and sitting around crying about it is not the answer either. Instead of wallowing in the problem, I say OK lets find the SOLUTION. Do we all agree the Real Estate Market has changed? There is a saying by buddha and it goes something like this"be the change we want to see in the world". I say "Be the change we want to see in this business".

There are only 2 ways to handle it. Stay in and change with the market or get out and start a whole new career.

We all need to happy up, and change the way we look at the situation. This is actually a positive thing here. The business is going through a natural cleaning out process. All the brokers who got in just to make a quick buck or two and put their client in harms way in bad loans and were not in this business for the long haul are getting out. Many of your competitors are getting out of the business. What does that mean? The survivors need to step up the plate and take advantage of the leveled playing field. You have to get an attitude of survival. Recession is not an excuse, business is still happening, homes are closing. Home sales were actually up 3%.

Yes there is ample inventorry but what does this all really mean? GREAT OPPORTUNITY. More homes to help Realtors sell and market, all time LOW interest rates, Low housing prices and an incredible opportunity to pick up a great deal.

That means we get the Market Share. There is more for us. The serious minded professionals. So when you change the way you look at things, the things you look at change.

TIP#1 - Go out an Market yourself- Join Organizations and Build Strong Relationships-Set up rules and ask for the business.

TIP#2- Pick up the Phone-Call on Realtors, set up appointments to go see them. Believe it or not they need you right now. It is up to you as the professional to keep them up to date with what is going on in the market and the loan programs, especially since guidelines are changing daily.

TIP#3- Learn everything you can about this changing market. Read everything, take classes. Become an EXPERT in your field. Create that image for yourself and you will be taken more serious and you will increase your business.

TIP#4- Work your database. Studies have shown you should be touching your data base 33 times a year. If you are not constantly reminding them you are there, they will forget you. Send them emails and cards. Call them too.

TIP#5- Get Serious and manage your time. Get a day planner or use your outlook calendar and use a strict regimen of good old time management. If you dont have a plan and you are not doing this you will be "all over the place", scattered and unproductive.

TIP#6- Build stronger Referral Partners. Go out and get Attorneys, CPA's, Insurance Agents, Title Agents. Give them value based information about the market and convince them why they should work with you.

TIP#7- Go back into your warm network. This is your family, your friends, your neighbors, your hairdresser. Let all these people know you are still here, standing, and in the business. Remind them what you do.

TIP#8 -Advertise your services. Partner up with Realtors and run ads and split the cost. This also strengthens your relationships with your referring agent.

TIP#9- Get creative, Put on home buying seminars, offer to do Open Houses. Bring some cookies and juice. Prequal the people right there on the spot.

TIP#10- Go visit for sale by owners and introduce yourself. Build a relationship with them. Educate them and be there to prequal anyone who does come by to look at their home. If the house does not sell, educate them on the value and benefits of using an agent and refer it to a Realtor partner. That will definitely help strengthen an existing referral source.

Stay away for TOXIC AND NEGATIVE people !

The bottom line is you cannot live by the door and wait for the phone to ring. You must GO GET WHAT YOU WANT. The business.

Go back to the basics.

Commercial Real Estate Financing Basics

2008-09-17T07:04:00.001-07:00

Applying for commercial real estate financing is a big step. It's not easy to get commercial property loans, especially if you are a first-time borrower. Before you apply, there are some things you should think about in order to be fully prepared.

Commercial real estate financing is different from residential real estate in a big way, according to the lender. With residential real estate, they are looking at how much the property is worth, and not overly concerned with how much it will make in the future. Residential property generally appreciates over time. With commercial real estate, however, they'll be looking at future profits.

This means that they will be concerned less with the current worth, and more with the possible worth. As a result of this, they will be very concerned with what sort of profits the venture will generate. This is why it is very important for you to sit down and do the math. How much do you think it will make?

This means also that you should be clear on how you will use the property. What kind of business will this be? Is it going to be all for one business, or are you going to rent out units? These will be major considerations for the lender, so make sure you have a detailed plan all set out.

The actual geography of the property will also be a factor in determining whether you get your loan or not. Look at the location of the property and how that will effect the business. You will have more trouble getting financing for a place located way out in the sticks than a place on a highway off-ramp.

The size and type of the property will also be factors. You will want to look at the history of the place and make sure there aren't any minor details that might cause trouble, like environmental problems.

Risk is the most important consideration to lenders. They will be looking at the future of the venture and, in particular, at possible things that could go wrong with the business.

A big part of this is the condition of the overall market. You can save yourself trouble later with your commercial real estate financing by studying the market and understanding its current trends. This is what your potential lender will be looking at, so it's good for you to understand it as well. If the future is uncertain for the type of property you are trying to buy, they may be worried about making back the loan.

Before the deal closes, they will send you a "commitment letter." This is a notification from the lender letting you know officially that you have been approved. More importantly for the lender, the commitment letter will have the terms and conditions of the loan. In other words, these are the rules.

It will tell you details about the closing conditions, rules for what you can and can't do with the property, as well as a summary of all the terms you agreed on, making it official. Take a good look at this and make sure that it will not prohibit you from doing the things you intended when you requested the financing.

Finding commercial real estate financing is a long and drawn-out process, but if you can consider a few things before you apply, you can save yourself the headache of dealing with something unexpected later.

Basics of Real Estate & its licence

2008-09-17T07:03:00.000-07:00

Real estate refers to immovable property such as land, which also includes rivers or streams that may be part of the land, as well as any physical structures that may be affixed to the land like houses, buildings or commercial establishments.

The terms "real estate" and "real property" are often understood to mean the same thing, although in some circles, real property refers to the rights of the owner over the real estate. Both terms are used mainly in common law, which is further divided into property law, the laws that refer specifically to the property, and contract law, the laws which refer specifically to the rights of the person over the property.

For centuries, people have viewed land as the primary measure of wealth. Even today, land comprises a large part of the fortunes of the wealthiest individuals and nations. Developing countries who are rich in real estate use this to attract foreign investments that can spur economic growth. However, in recent years, economists have noted that the key real estate investments into developing countries have been derailed by the lack of effective laws to safeguard such investments.

The leading source of capital for purchasing and developing land real property is mortgages. These are loans that banks grant to individuals who use the real property as collateral. Mortgages are favorable endeavors for banks because they can't lose: either the borrower successfully repays his loan with interest or if the buyer cannot pay his loan, the bank can claim the rights to the property through foreclosure, which is an action that is decided in a court of law. Once the property is foreclosed, the bank can sell it to recoup its loan.

This is where economists raise a howl. An analysis of international banking and real estate laws reveals that, in many developing countries, there is no effective way for a lender to foreclose. With no legal or institutional protection, many investors are discouraged from investing in real estate in developing countries. Often, the mortgage loan industry is only open to a select few, mostly engaged in by a cabal of well-connected families who frequently use their social connections in matters of foreclosure.

Real estate is an industry that can help people experience great wealth. Many of the worlds richest people have made their money through real estate. It is no surprise that many people are looking into real estate as a career. Getting a real estate license allows you to help people buy and sell real estate. Each state has its own procedure on how to get a real estate license.

A real estate license is required in every state in order to practice as a real estate agent or broker. To get a license a person must be 18 years old or older, graduated high school or have a GED, and pass a written licensing test. Some states require schooling or college course work. The reason for testing and licensing is that real estate can be complicated and the laws can be hard to understand.

There are two levels of licensing in each state. A real estate agent can be a broker or salesperson. A broker can act on behalf of a client and a salesperson can only perform under the supervision of a broker.

The license test is administered by a state agency and the name of the actual test varies form state to state. You should go to the testing agency to determine your states exact licensing procedure. There are many variations on requirements like age, background, and education.

If education is required you should find out the specifics about this requirement. Some states require college course work, while others only require special real estate courses.

The test format can change at any time, so be prepared for any format. Basically, though, most states have a multiple choice test. The test will either be one part or broken into two parts. If in two parts, one part will generally cover key points and the other will get into specifics.

If you are wanting to persue a career in real estate the first step is finding out how to take the licensing test and how to prepare for it. Once you obtain your real estate license you are on your way to an exciting career.

Buying And Selling Real Estate: Basics Of The Transaction

2008-09-17T07:02:00.000-07:00

A real estate transaction is, first and foremost, a customer service business. Buying or selling a home is one of the largest transactions most people make in their lifetime, and in many cases, it makes someone’s dream come true. A real estate transaction is a large ongoing financial commitment, so buyers and sellers should spend time to know the basics. It always pays to be cautious and analyze your requirement and how much you can afford. Making the right choices while buying or selling a real estate property can be a complex and time-consuming process. Having the overview of basic steps involved in a real estate transaction can help you avoid potentially expensive mistakes.

Any buyer or seller should carefully consider the practical and legal complications of a real estate transaction before proceeding. Whether you are a seller or buyer, you should understand the contract terms in a transaction and how they affect you. Following are the basic tricks of the trade in a real estate transaction:

· Information is Essential: You should be informed about your options. Don’t make the mistake of getting carried away and investing in something that looks great but doesn’t meet your requirements. Learning as much as possible about all aspects of real estate property buying and selling is essential for a satisfactory transaction. Find all you can about the market value of the property by attending auctions, speaking with agents, reading the latest releases of auction results and the prices of properties listed.

· Shop around for the Best Price: Apart from being informed about the current market value of the property, you also need to be informed about products and services offered by real estate agents, solicitors, and conveyancers, and loan providers.

· Don’t Hurry: Never rush or feel pressurized to take any haste decisions. Always keep in mind there is a lot of hard work and a lot of money at stake. Make sure that you are making this commitment for the right property. Once your homework is done you will feel confident that you have found the right house at the right price, the right agent or the right loan when it comes your way.

· Read before Signing: During any real estate transaction you may come across several types of contracts such as loan agreements, authorities to sell, contract notes and contracts of sale of real estate. The rule of thumb is not to sign any document without reading and fully understanding its contents including all terms, conditions and fine print. Seek professional advice whenever required and make sure whatever has been agreed upon verbally are put into writing.

· Negotiation: Negotiation is an art. Learning to practice it in a real estate transaction is very much essential. Many terms and conditions are negotiable in the actual process. Estate agents, loan providers, solicitors and conveyancers, as well as buyers and sellers are usually adept at it.

During the process of buying or selling real estate, you may find it helpful to have a professional real estate agent assist you. Real estate agents can provide many useful services in a transaction. The seller and buyer may each have his own agent. They help you in purchasing land and real estate with built-in equity. Professional agents provide their clientele with land and real estate consulting services that ranges from acquisition to research and development.

Miami Beach Real Estate Basics - How To Get Into The Business

2008-09-17T07:01:00.000-07:00

The cycles of boom and bust have come and go for cities Like Miami Beach. In the 80's, the area was famous for the TV show Miami Vice, and it did quite resemble the one on TV. Unemployment was rife, nearby Miami was full of rundown neighborhoods, and crime rates were up. Fast forward to today, and you'll see a totally different scene.

The city's vibrance and energy is back, the once rundown sections have been remodeled and reinvigorated, and businesses are booming. The tourists from all over the world are coming in droves, and the property and real estate market has risen dramatically.

What To Take Note Before Becoming A Miami Beach Realtor

While entering real estate is generally not that hard, succeeding and rising to the top is much a much harder goal to achieve. Usually, most new agents are told to make sure that they have at least six months wort of savings and extra money for marketing to prop up their business. At the start, realtors need to work an estimated 60 to 80 hours a week, and they need to really analyze the market, learn professional work ethics, efficiently organize themselves and learn to work with different types of people.

The attrition rate however is high, not many stay in the business, and roughly 30 to 40 percent who get their license stay in the field. Recent data from the Florida Department of Business and Professional Regulation show 18,221 people with active sales associate licenses in Miami-Dade and around 17,257 in Broward County.

Budding real estate brokers are reminded to be prepared to work hard, expect to earn a little at the beginning, and regularly work on their contacts. The best thing, however, of being a Miami Beach property broker is that you work at your own pace, you get to bask in the beautiful beaches and wonderful scenery, as well as the fact you are in one of the best places to work as a realtor.

How To Become A Real Estate Broker

To legally join the real estate business in Miami Beach, one needs to first get official state accreditation and approval. In order to become a licensed Miami Beach broker, one needs to follow these steps:

- Submit a state application. The application can be obtained from real estate school. The application must be notarized, and the applicant must be at least 18 years of age, and have a high school diploma or equivalency. The applicant must have been an active sales associate for at least 12 months within the past 5 years, with a broker, or approved government agency.

If the applicant is licensed in a state other than Florida, he or she must obtain a history letter from the state or province that he or she is licensed in. The license history letter must state the applicant's name, employer, business and residence address.

It must also indicate that the applicant's license was held active for at least twelve months within the preceding five years, as well as the type of real estate license held by the applicant and the real estate license number and the date of licensure and expiration date of real estate license.

- Applicants must complete the required 72-hour course. The passing rate is 70%, and students should miss no more than 8 hours of classroom time. Any missed classes must be made up within 30 days of the scheduled course completion.

- Upon approval of the application, the agency will send an approval letter to the applicant. The applicant then calls to schedule a state examination date. The applicant must pass the examination, and obtain a score of at least 75%.