JP Morgan, an original Robber Baron and one of the richest men of his time said it best. ?The time to buy is when there is blood running through the streets!? While the blood is not running through the streets yet, it is trickling!

• Housing appreciation is flat or even negative in some formerly hot areas
• Time on market, the amount of time it takes for a property to sell is increasing dramatically across the country.
• Inventories of unsold homes are up 30-50% nationally
• Developers and builders are offering deals unheard of 1 year ago

On the horizon is an avalanche of home mortgages about to ?reset? payment levels, up from ?teaser? rates of 1-3% to market rates of 6-7%. When you realize that the only way many of these people were able to buy their homes was because they could afford only the 1-3% payment rates, you can imagine what will happen when those loans reset.

Also, historically, more mortgages go into foreclosure at 3-5 years after origination than in any other period of their terms. More than ? of all mortgages in the US were taken out in the last 3-5 years. Another negative factor is that, according to one study, almost 50% of all homeowners have less than 25% equity in their homes.

This has come about because of the large numbers of home buyers that put zero down when they purchased and the fact that homeowners pulled out $333 Billion in cash with refinances in the last 3 years. If someone, particularly an investor, (nearly 25% of all purchases were investors over the last 3 years!) can no longer afford their mortgage payments and they have little or no equity, they will not have much incentive to try to hold on, meaning foreclosures will soon spike. Many, many people will be trapped in their homes by the foregoing circumstances. They will not be able to sell:

• Real estate agents will not list their properties if they have little or no equity as they see no means of collecting their fee
• They will not be able to reduce their selling prices without having to bring cash to the closing to pay closing costs, cash they probably don?t have.
• The market will be cluttered with similar properties for sale
• Investors will not be interested in their properties because there is no equity

People who have to sell their homes for financial, personal or emotional reasons will be especially hard pressed to find a solution. If these people are not able to afford their homes and are not able to sell them, they will face financially disastrous foreclosures or personal bankruptcies. You will be able to solve their problems and they will Give you their properties in return! In fact, some will even pay you to take their properties! Why on earth would you want properties with no equity in them? Because they can become Automatic Cash Machines, spewing cash into your bank account so you will not have to work anymore! Here is how:

First, you sell the property! You line up Motivated Buyers as your potential clients.

Then, you find a Motivated Seller and acquire his property Next, you put the Motivated Buyer into the property as the new owner with a private, seller financed mortgage.

Lastly, you collect Automatic Income for the next 5-10-20 years or more while your buyer handles all the maintenance and other duties any home owner is faced with OK, what is a Motivated Buyer and how do you find them? A Motivated Buyer is someone who can not or will not pass the bank?s scrutiny to qualify for a mortgage. These may be owners of small businesses, especially if they are cash based. They could be self employed professionals or even foreigners. They could also be people with really stinky credit! These people will jump at the chance to buy a property with private, non-bank financing and will pay you a premium for the opportunity. To find them, you simply run an ad highlighting private, seller financing. Something like:

Owe too Much to Sell Your Home?

Investor can help! XXX-XXXX

You won?t need money to acquire these homes in most cases! Have a lawyer or a person experienced with land trusts, set one up for you. This is the secret that makes this strategy work. The land trust will allow you to take over the property and sell it without paying off the seller?s mortgage!

You tack on a profit for yourself and this total becomes the Motivated Buyer?s new mortgage, less the 5-10% cash down payment you require upfront on the new purchase price. Your buyer moves in and makes payments to you until he pays your mortgage off. You take his payment and pay the seller?s original mortgage. You pocket the difference. Let?s look at the potential.

You pick up and sell 1 property per month after a 2 month learning curve. The properties average $250,000 each in market value.They produce $300 per month in positive cash flowYou receive $10,000 cash down payment from each one With 10 of these, you have:

An income of $3,000 per month, or $36,000 per year. You received $100,000 in cash down payments$2,500,000 in assets, with equity accruing monthly as the mortgages are paid off Could you Quit the Rat Race with $130,000 per year? No? Repeat the above!

Copyright 2006 Bill Young. Bill is an experienced real estate investor and personal financial consultant. He writes and lectures on advanced real estate concepts and is an expert on the formation and use of land trusts. He can be reached at 877-291-3542. His web site is http://MotivatedSellersOnline.com/SellforMore

Posted in: on Sunday, August 31, 2008 at at 9:38 PM 0 comments  

You have gone through bankruptcy and you do not owe anyone. Now is the perfect time to purchase that home you have always wanted ? right? Wrong! Yes, you can probably locate a real estate mortgage lender, since you cannot declare chapter 7 bankruptcy again for at least 6 years. The problem is that you will pay the highest finance charges for the privilege of obtaining that real estate mortgage, charges that will extend over the life of the real estate loan.

Before even looking at real estate, get your credit straightened up first. The bankruptcy will appear on all three of your credit reports from seven-to-ten years, which will make you a higher risk to real estate lenders. You cannot do anything about this; however, you can show real estate lenders that you are handling credit much better now by rebuilding it. This can lower your risk factor, when obtaining a real estate mortgage. Using the following improvement steps, you actually can rebuild your credit in a relatively short time.

First, get copies of your credit report from the credit agencies, and clean them up. You have the right to one free report from all three agencies annually, which can be obtained through www.annualcreditreport.com.

Ensure that creditors, who were listed in your bankruptcy, have cleared their information from your credit reports. Otherwise, it will appear as if you still owe them money and are not paying.

Ensure any creditors not listed in your bankruptcy and you are paying regularly have been reporting your good credit record to all three agencies. Contact any not reporting this and ask them to do so. This will increase your chances of getting a loan for your real estate.

If there was a specific event or cause for your bankruptcy, you can add up to a 100-word explanation to your credit report at each agency. The real estate lender will get this explanation as part of your credit report.

It will look especially good to real estate lenders if you have received credit counseling, and the counseling will help you in several ways. A good credit counseling agency will help you create a budget and counsel you in how to use and stick to it. They offer counseling on using credit in your future, as well as how to re-establish your credit. They can help you move toward your goal of buying real estate. Once you have successfully completed credit counseling, ask them for something in writing to that effect. It can help when applying for your real estate loan

The problem is finding a reputable agency. Some are downright questionable. Here are a few ideas to assist you in locating a reputable agency:

?They should be a member of either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies. Both are national trade associations.

?Agencies approved by the U.S. Trustee?s office (part of the Department of Justice) are good agencies. You can see those for your area at: http://www.usdoj.gov/ust/eo/bapcpa/ccde/ccapproved.htm.

?Interview the agencies, asking what they offer and the cost for each service. Good agencies should meet with you for 60-to-90 minutes, reviewing your financial situation and offering budgeting advice ? before doing any credit repair.

?Ask for costs in writing from the agency you choose. They should charge around $50 or less, with budget counseling sessions for less than $20 each.

?Steer clear of those who push their debt management program, where they want you to pay all your remaining creditors through them.

?Check http://www.ftc.gov/bcp/conline/pubs/credit/fiscal.htm for more ideas from the Federal Trade Commission.

Use the credit counseling agencies to help you rebuild your credit the right way. It can take less than a year to achieve; yet, it will make a big difference when you obtain that real estate mortgage.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

Posted in: on at at 4:38 PM 0 comments  

A house is the most important thing to purchase for your family or for you (if you are living alone), but due to the increasing prices and credit rating checks we end up not being able to get one.

There are other means of getting your own house, one of this is purchasing a house from auctions. Most of the houses that the government is selling are foreclosed. Foreclosed homes are houses that were once owned by people who had difficulty paying for their mortgage.

So the house is confiscated by the government and after the given time frame and the payment was still given, the house is finally put for auction and sold.

As with any house purchase, there are important things you need to reflect on to check on to before the actually bidding and buying.

1. Research

The most important thing you need to remember to do is to research. You need to find out the actual price of the house and the lot, you need to look at the actual situation of the house and see if it its still fixable and won't cost you much.

You also need to find out how accessible the area is and the past he house. Make sure also that the starting bid is very low and worth it for the house you are eyeing for.

2. Money

You need to have sizeable money to buy that winning bid or a loan with you. Make sure you know how much deposit is needed in purchasing that house. Make sure to save up for it eventually to because there are deadlines for the payments for the housing.

3. Limitation

When auctioning you need to have a limitation as to what you can only afford. You just might end up with a winning bid that will eventually be taken from you because you could not pay for it too.

4. Silence

When auctioning, it is sometimes better to keep quiet on the process and move when it is about to end (especially if the almost ending bid is still within your budget). You do not want to add to the increase in pricing do you?

Having your own home is the best gift you can ever give yourself and your family as a form of security. All you need to do is find the right house and pay for it.

To search for cheap repossessed homes, please visit www.buy-cheap-houses.info.

Posted in: on at at 11:38 AM 0 comments  

The building of new homes has fallen to the lowest level in nearly two years, according to the Commerce Department on Wednesday.

Housing starts fell 2.5% for July to 1.8 million on a seasonally adjusted annual basis. This marks the fifth decline in housing starts in the last six months. It is also the lowest level seen in construction of new homes since November 2004.

Economists had expected a decline, just not as large as today's report indicated.

Building permits fell drastically in July, by 6.5% to 1.75 million units. This is the largest drop seen since September of 1999. Building permits are an indication of future construction activity. Permits are at the lowest level since August 2002.

The Commerce Department also revised June's housing starts downwards, to an annualized rate of 1.84 million, down from 1.85 million.

When compared to one year ago, housing starts are down 13.3% for July.

The confidence of US home builders has continued to fall, according to the National Association of Home Builders. At 32, confidence is at the lowest level since 1991.

Economists agree that the housing market is changing. The debate continues as to the size of the decline and the potential impact to the economy.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Posted in: on at at 6:38 AM 0 comments  

TREC or Texas Real Estate Commission is a government body that was created in 1949 to administer four specific laws such as real estate license act, real estate inspector act, residential service company act and Texas timeshare act.

TREC regulates activities of real estate brokers, salespeople, inspectors, residential service companies, timeshare developers and education providers for real estate and inspection courses. Main purpose of TREC is to protect legal rights of citizens of Texas and provide them with honest, trustworthy and competent real estate service. The commission reviews programs dealing with education providers for real estate and inspection courses. It tries to identify and regulate errors and drawbacks present in it.

TREC has made it mandatory for real estate brokers and salespersons to maintain specified levels of education in order to hold a valid license to work as a real estate agent. Provisions of real estate license act and rules of Texas real estate commission are binding on all real estate agents and professionals in order to provide customers with a competent and honest service. TREC also gives licenses to real estate inspectors, agents, residential service companies and real estate schools. This commission also does registration of timeshare properties.

Texas Real Estate Commission has statutory relations with three state entities namely, real estate center at Texas A&M University, Texas department of savings and mortgage lending and Texas appraiser licensing and certification board. The commission has partnership with Texas A&M University's real estate center for conducting research along with some education projects. It also appoints two members to mortgage broker advisory committee of Department of savings and mortgage lending. Issues relating to real estate licensees and mortgage brokers are resolved by cooperating with this agency. Commission also has signed a memorandum of understanding with Texas appraiser licensing and certification board under which it provides administrative support to them, which is approved by their governing bodies.

Texas Real Estate provides detailed information on Texas Real Estate, Texas Real Estate Commissions, Austin, Texas Real Estate, Houston, Texas Real Estate and more. Texas Real Estate is affiliated with Houston Real Estate Schools.

Posted in: on at at 1:38 AM 0 comments  

Buying a home or office is a major decision with several long-lasting implications. It cannot be denied that the most important one is the financial aspect. Real estate brokers help a buyer gauge and select the right property to suit his needs.

For this reason, almost all real estate buyers enlist the services of a real estate agent or broker to help them with this complex procedure. A real estate agent is a person licensed by the state to handle real estate sales. A real estate broker, licensed by the state, is a person who may own a real estate company, or has overall responsibility for the agent's actions. A real estate agent may also require the services of a real estate appraiser to determine the fair market value of a home for sale. In order to practice the profession of a real estate agent one must pass a licence course from a real estate school.

The courses offered by the school contains 12 review sessions of over a 100 questions each. Each state specific prep course includes over 200 US state specific questions in addition to national questions. Major areas of study include license law, principles and practices of real estate and real estate math. This also includes reviews, express study, live exams and final exam modes. Online real estate schools offers up-to-the-minute information regarding the most recent state law changes.

The real estate courses offered by online real estate schools provide high quality, time-saving, and effective real estate license exam preparation tutorials to assist future realtors in passing their exam. On application to an online school, the student gets a starter kit which includes a ?virtual tutor system? (VTS). It is an interactive CD-ROM that prepares the candidate to take and pass the real estate exam. This enables the student to study at his own pace. This software is specifically designed to be used in conjunction with the home and office computer.

Online real estate licensing courses are the fastest, and most convenient way to get a real estate license. With up-to-date courseware and state-of-the-art teaching tools, these online schools are increasing in popularity with every passing day.

Real Estate Schools provides detailed information on Real Estate Schools, Online Real Estate Schools, Phoenix Real Estate Schools, Scottsdale Real Estate Schools and more. Real Estate Schools is affiliated with Real Estate Agent Courses.

Posted in: on Saturday, August 30, 2008 at at 8:38 PM 0 comments  

Maybe you?re buying your first home in Tennessee, or perhaps you?re relocating to Tennessee from another state. Either way, it?s important that you educate yourself on Tennessee home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Tennessee:

The price of homes in Tennessee varies widely between zip codes. For example, in Nashville, Tennessee, the median price of a home in the summer of 2005 was $209,000; however, the median price of a home in Knoxville, Tennessee, was $175,000. Overall, the median price of a home in Tennessee in between July 2004 and July 2005 was $166,400.

Tennessee has a very active housing market, and home prices in Tennessee appreciate at a rate comparable to the national average. Between July 2004 and July 2005, home prices in Nashville, Tennessee, rose by 9.5% from the previous year. However, the rate of job growth in Tennessee during the same year was only half of the average national job growth rate.

Many Tennessee organizations banded together to create the Tennessee Home of Your Own Program -- a program to help people with disabilities purchase their own home. Through this program, Tennessee residents with disabilities can get technical assistance with the home-buying process and assistance with down payment and closing costs. Additionally, this program offers home-ownership classes to people with disabilities.

Before closing on the purchase or sale of a home in Tennessee, buyers and sellers need to be aware of a Tennessee law that prohibits the use of personal checks in amounts greater than $1000 for costs associated with loan closing. If loan-closing costs are going to be greater than $1000, the buyer or seller will have to pay by a cashier?s check, wire transfer, or cash.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Tennessee Mortgage Rates and Loans.

Posted in: on at at 3:28 PM 0 comments  

What is a property developer?

A property developer makes improvements of some kind to property, builds on land and thereby increasing its value. The developer may be an individual, but is more often a partnership, a Limited Company or a Public Limited Company.

There are two major categories of property development activity: land development and building development (also known as project development) the later being the most popular with the smaller developer.

Land developers typically acquire raw land (i.e real property with no improvements or infratucture) and improve it with utility connections, roads, etc. Building developers acquire raw land, improved land, and/or redevelopable property in order to construct building projects. The buildings are then sold entirely or in part to others, usually for a significant profit.

This is all well and good but how does the small property developer get started?

Small projects, terraced properties, shops, small offices, buying property in auction, these are all areas that the small property developer can consider. There is an old saying that goes, ?you should start in the area that you know best.? The reasoning behind this is obvious, as the area will be known, prices will be easier to determine and profits can be readily calculated.

Cashflow is king for the property developer as capital should be available for the initial purchase, as well as the cost of improvements, purchase costs and sale costs.

Buying a Small Terraced House for Development
Lets look at the classic case of buying a small terraced property with potential. The fees for the purchase will be as follows:-

?Initial Purchase Costs- ?75,000
?Initial Surveyors Fees- ?200
?Purchase Solicitors Fees- ?400
?Improvement Costs- ?3,000
?Cost of Sale (Estate Agent)- ?800
?Solicitors Fee (Sale)- ?300

Total Cost- ?79700

On the assumption that the property can be sold for around ?90,000 - ?95,000, the property developer could make a tidy net profit of between ?10,300 - ?15,300 and depending on the timeframe from purchase to sale, this could be the equivelant to earning of around ?50,000 to ?60,000 per year.

All this is well and good if you have the capital to be able to buy the property for cash but what if you haven?t. Well, let?s assume in this case that the property developer can only lay his hands on ?25,000 as a maximum. This is how this could work:-

?Initial Purchase Costs- ?75,000
?Initial Surveyors Fees- ?200
?Purchase Solicitors Fees- ?400
?Improvement Costs- ?3,000
?Cost of Sale (Estate Agent)- ?800
?Solicitors Fee (Sale)- ?300

Total Cost- ?79700

Less the cost of borrowing ?56,250 for say 3 months- ?2,109
Less extra Solicitors Fees- ?500
Loan Arrangement Fees- ?1,125

Total extra cost of borrowing- ?3,734

Based on the assumption that the property developer was borrowing 75% of the property value for a three month period would reduce the profit margin to a net profit of between ?6,566 - ?11,566.

This hypothetical situation shows that ideally the small property developer is better off financing the scheme from his/her own funds but as well as this, profits can still be earned even though the majority of the money is borrowed by the property developer.

The author has been in the UK Financial Services Industry for more than 20 years and has worked on both small and large projects with clients in many parts of the UK. Follow the link http://www.commercial2.co.uk for further information.

Posted in: on at at 10:38 AM 0 comments  

According to the Mortgage Bankers Association Weekly Mortgage Applications survey, loan application volume has decreased for the week ending July 28.

The Market Composite Index saw a decrease of 1.2% on a seasonally adjusted basis, landing at 527.6. This is the lowest point for the index since May 2002.

On an unadjusted basis, the Index was down 1.4% when compared to the previous week. When compared to the same week last year, the Index was down 29%. This indicates that the housing market is indeed in the mist of a severe slowdown.

The seasonally-adjusted Purchase Index saw a decline of 3.3%, down to 376.2 from 389.0 the week earlier. This is the lowest point for purchases since November 2003.

However, the Refinance Index experienced an increase of 2.3%. The Government Index also saw an increase of 0.9% for the week.

The four week moving average for the Market Index is down 1.5%. The purchase index is down 2.3, while the Refinance Index is down 0.1%.

Refinancings accounting for 37% of all mortgage activities, up from 35.6% the week earlier. The ARM share of activity fell to 27.8% of total applications, down from 28.6%. This is the lowest share for ARMs since March 2004.

The average interest rate on a 30-year, fixed-rate mortgage fell to 6.62%, dwon from 6.69%. Points also decreased to 1.00 from 1.07 for 80% mortgages.

The average interest rate for a one-year ARM fell to 6.18%, down from 6.25%. Points decreased slightly, from 0.83% to 0.81% on 80% mortgages.

Overall, the market is slowing. Sales of new homes are down 11% in the past year, while existing home sales are down 8.9%. Housing starts have decreased 11% in the last year. The home builders sentiment index -- the report of builder confidence -- is down 41 points in the past year, to a low of 39.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Posted in: on at at 5:38 AM 0 comments  

As soon as prices go up in Miami, more and more investors and even home owners decide on selling their property for a fortune so they could get yet another quality home from one of Miami?s real estates. But this is never easy. Often times, sellers want to receive lots of cash for their property, but not all of them would do anything to make sure they would get what they planned for. The market today especially in Miami real estate business, is so aggressive that?s why it is so important to have the place in proper order and in a competitive status.

Realtors classify second houses into a stated house and a on-staged house. The main difference between the two classifications in Miami is the price the buyer is willing to shell out for the property.

If the property is sold ?as is,? then the seller can name a price that maybe preferred. However, if the buyer does not see the cleanliness then money to be paid is also trimmed down from the original asking price. This is true for every blemish they see. That is why it is important to prepare the home and really clean the house to get the full price.

Better begin with cleaning the exterior part of the house. The outside of the house often gives the first impression and believe it or not, there are more than a hundred things that fail to be noticed. Keep all the tools and other equipment in the outside, especially the toys and the sweeping materials in the sidewalk organized by putting them in a storage box or the toolkits.

Show the beauty of the Miami house and take away the trashcans out of the visible areas during the tour. Make sure that the porch light are working bright for the house lighting plays a major role in making a person feel special or uneasy in a house and don?t hesitate to buy new door mats if it?s really needed.

Check the doors and the glass windows. They should be spotless. The frames should also be cleaned including the switches of lights and outlet covers. Put all the dirt and garbage away but never damp the clutter inside the closets.

Also polish the kitchen counters and see to it that there are not clutters on top as well. Hide the other appliances in an organized way especially the papers and other stuff not really meant for the kitchen.

Most importantly, make sure that all doors and windows especially the sliding ones are working smoothly. Vacuum the carpet and remove the visible stains. Replace all dirty curtains to show the view of Miami. In taking these simple steps, it is safe to assume that reselling a Miami home in one of Miami?s Real Estates will be next to a hundred per cent. Keep in mind that the property to be sold must look like it was really cared for and will need the same care from the new homeowners.

Cleo Capili

http://www.miamirealestateinc.com

Florida Real Estate Expert Cleo Capili specializes providing assistance to buyers in Florida. She guides families who would like to invest and purchase their dream home in the exciting warm paradise of the Real Estates in Florida. Her skills in negotiating and inventory to make sure that sales and experience bring out the best for each purchase sets her apart from the different common realtors in her location.

Cleo have good background in marketing, business, real estate financing, and advertising to give clients the best options when buying a Florida property. No matter what your needs are, Cleo could share her professional and interpersonal skills for outstanding results on each of your property purchase in Florida.

Posted in: on at at 12:38 AM 0 comments  

Whether you are looking for a place to retire, property for investment purposes or a place to call home, Hawaii is a good place to start looking. The real estate industry in Hawaii is currently at an all time high. Hawaii offers you whatever you are looking for in a property. Whether it is a beach side property, or a plantation type home inland, Hawaii can give you what you need.

A beachfront property in a beautiful place is a dream come true for many. Imagine sitting on your own front porch looking at the sunset, watching dolphins playing in the surf. That dream could become a reality for you.

With any type of purchase that spending a large amount of money, you need to do a lot of research about real estate property in Hawaii. Find an agent that can help you. You?ll want to know about all the different areas and islands that offer property, as well as information on business trends, school systems, etc. You?ll also want to familiarize yourself with the customs and laws of Hawaii. Property is not cheap in Hawaii, so you?ll want to know exactly what you?re purchasing before you make a commitment.

Knowing the current property values of the land you intend to purchase, the applicable taxes you are required to pay and making sure there are not liens against the property are also very important information you will need to obtain before committing yourself to the property. Hiring a lawyer is highly advisable, as it will make the entire process easier for you. However, even with a lawyer you should be well on every aspect of the sale. You are dealing with an expensive piece of property and one of the most important decisions of your life.

Hawaii Real Estate provides detailed information on Hawaii Real Estate, Honolulu Hawaii Real Estate, Maui Hawaii Real Estate, Big Island Of Hawaii Real Estate and more. Hawaii Real Estate is affiliated with Hawaii Real Estate.

Posted in: on Friday, August 29, 2008 at at 7:38 PM 0 comments  

A housing downturn may be imminent, say economists and real estate investors alike ? presenting problems for many people, but opportunities for others.

You?ve probably heard about the coming slowdown in the housing market for a very long time. Real estate is cyclical, and in the United States it has been in an upswing for at least five or six years, which is how long housing prices have exceeded the rate of inflation, says Susan Wachter, professor of real estate finance at The Wharton School at the University of Pennsylvania. That means it?s only a matter of time before we experience a downturn.

It?s hard to believe a downturn is really here. On March 1, the Office of Federal Housing Enterprise Oversight (OFHEO) announced that average U.S. home prices climbed 12.95 percent in 2005, despite rising mortgage rates in the second half of the year. That?s about double the historical average of 6.4 percent, according to Bankrate Inc.

But while the housing market is still appreciating, it?s appreciating more slowly. The Commerce Department announced on March 23 that new home sales tumbled 10.5 percent in February to an annualized rate of 1.08 million units, the biggest one-month drop in nine years.

That means properties are sitting on the market for much longer than they used to. You might expect that in California, where Bruce Norris of the Norris Group, a California-based real estate investment firm, says ?we?ve gone from a three-month supply to almost a seven-month supply.? But examples are pouring in from all parts of the country. In Miami, at the Jade Residences at Brickell Bay, 117 of the building?s 352 units are reportedly on the market. And in Manhattan, at Donald Trump?s 120 Riverside Boulevard condos, more than 20 percent of the building?s 250 units are up for resale, according to The New York Times.

And increasing supply almost always leads to falling prices, says Norris. For the first time since the third quarter of 2003, one of the regions in the much-followed OFHEO index showed a four-quarter price decline: Prices in Burlington, North Carolina, fell about 1 percent between the fourth quarter of 2004 and the fourth quarter of 2005.

That may not seem like much, but economists see it as a foreboding sign ? and it?s not just due to rising interest rates. ?Housing valuations have become somewhat stretched in some areas over the past year,? says Josh Feinman, an economist with Deutsche Asset Management in New York. ?Some cooling is likely.?

The slowdown will affect anyone who?s buying and selling property, of course. But real estate speculators ? individuals who buy property with the intention of re-selling quickly, or flipping it, for a profit ? are likely to suffer the most. That?s because they could be paying mortgages and maintenance costs on properties they can?t sell and can?t rent out for enough money to cover their costs. According to Redbrick Partners, a New-York real estate investing firm specializing in single-family homes, half of the rent an investor can potentially collect does not flow to the bottom line, because it gets eaten up by vacancies, taxes, maintenance, etc. And as supply has increased over the past decade, demand has decreased. Today, Redbrick Partners says rental yields on single-family homes have declined from 7 percent in 1976 to under 5 percent today. And Norris says that in areas of California, a $500,000 house would rent for just $1,400 per month.

There is some good news, however. First, the housing market often fluctuates in different geographical locations. Miami, Florida, is an often-cited example: The number of condos worth $500,000 or more for sale in Miami is reportedly twice what it is in Los Angeles, where the population is four times as large. ?If you ask me if the housing marketing is going to experience a downturn, I have to ask you ?Where??? says Norris.

In general, the markets that have had the greatest appreciation over the past five years are most vulnerable to a downturn, say real estate experts. ?When affordability is at an all-time low, as it is in California, where housing prices have appreciated 300% over past eight years, you lose velocity, or the ability to sell a house at a brisk pace,? says Norris. ?And prices start to come down.?

As for specific areas that are likely to experience downturns, on December 16, CNNMoney.com reported that Las Vegas property values will fall by 7.9 percent in 2006 and another 5 percent in 2007; San Diego property values will fall by 3.4 percent in 2006 and another 5.7 percent in 2007; and Santa Ana/Irvine property values will fall 3.1 percent in 2006 and another 6.1 percent in 2007.

Second, wherever the housing market does cool, it isn?t likely to do so overnight, so sellers needn?t get desperate. Some individuals, of course, will have to sell ? those who need to move because of a new job, or a divorce, for example. But others can take some time, as a softening or declining market often takes years.

Finally, it?s also important to remember that one man?s troubles are another man?s opportunity. Some of the best real estate investors buy when everyone else is selling. The theory: As prices decline, it becomes easier for investors to buy properties that create cash flow. They can take their time and negotiate lower prices; they don?t have to waive contingencies, such as appraisals and home inspections; and the income they can realize from renting the property is greater than what they?re paying for it.

In fact, for some investors, like Jonas Lee of Redbrick Partners, buying in a downturn is a way of business. Lee says in a January 22 CNNMoney.com article that his company has succeeded since 1993 by employing this strategy. The typical single-family home the company buys ? usually in the downtown residential areas of rust-belt cities such as Baltimore and Philadelphia ? costs just $80,000. He hopes a downturn in the housing market will give him even more opportunities to buy low.

Experienced real estate investors offer two pieces of advice, which vary depending on your plans for the property.

If you?re buying to sell, Norris agrees that buying low is a good idea, but you have to understand the real estate market first. ?You have to be able to determine when a down market is about to switch and go up again, and buy then? he says. ?A lot of time people will see the market softening and buy too early. For example, someone in California might see a house go from $700,000 to $625,000, think it?s great deal, and buy it. But three year?s later the place will be worth $500,000.?

If you?re buying to rent, Redbrick Partners suggests looking at urban single-family housing. According to the firm?s research, nationwide single-family housing returns have averaged 12 percent since 1976, and volatility has been low, with not a single year returning less than 6 percent. The key to success for small residential landlords trying to calculate the yield for a property costing $250,000 or less, according to Redbrick Partners co-founder Tom Skinner in an October 2, 2005, Chicago Tribune article, is ?rent divided by two divided by price.? Typically, that gives landlords their yearly rental profit on a property to within 1 percent. It doesn?t account for any estimate of future appreciation or depreciation, but it is a pretty accurate measure for someone trying to determine if he or she will be make any money by buying a house and renting it out.

Sandy Shuad, Producer, Real Estate TV.com www.realestateinvestmenttv.com

Developed and launched in 2006, for real estate agents, brokers and investors, old and new, www.realestateinvestmenttv.com has exploded into a diverse website covering the latest news and information in the world of real estate investing, Check out the Real Estate Monthly Update Program, the latest Trends and Data or listen and learn from a free PodCast. Choose from over 50 different ?Channels? of specific content to watch, or upload your own ?Street Report? and become a REITV.com correspondent. By utilizing impactfull, original, and valuable content, via articles, advice, news, information, videos, Podcasts and professional reference, Real Estate Investment TV is being touted as ?the? place to go on the web for Real Estate Investment news and information. Check out the latest Trends and Data, choose from over 50 different ?Channels? of specific content, or upload your own Street? Reports and become a REITV correspondent.

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Atlanta, comprised of numerous distinct neighborhoods, cities, and counties, has a good choice of furnished apartments - garden-style apartments, lofts, town homes, studios, and many others. Center city apartments and more suburban apartments come with features such as ample parking and swimming pools.

Furnished apartments are ideal for corporate housing and extended-stay rentals. These are available in any size, and equipped with kitchens, fully furnished bedrooms, air conditioning, fireplaces, dining and living rooms with or without bathrooms, hardwood floors, backyards, and parking areas. Some apartments in Atlanta are particularly designed to cater to the needs of short-term contractors or European business personnel. Almost all private apartments are located close to Atlanta's business areas, shopping malls, and restaurants.

Extended stay apartments are available on monthly invoice payments and are perfect for business travelers, those on temporary assignments, consultants, and visiting family and friends. Furnished short-term apartments feature the most comprehensive short-term and temporary housing facilities. These are available in all price ranges and sizes, and on one-month to twelve-month leases. Furnished apartments are popularly marketed to businesses like movie studios and film production companies that frequently employ visiting, temporary workers.

The town home in Atlanta is one of the popular styles of apartment buildings. Town homes are generally built on more than one level with living areas on the first and/or second levels, and bedrooms on the levels above living areas. Town homes are perfect for those who are willing to live on multiple levels and are able to maneuver stairs.

The rapid growth of this metropolitan area and its economic development have both contributed to the increase in the number of new apartments. Although Atlanta is one of the world-famous industrial centers, Atlanta apartments are affordable and the average monthly rent is below the national average. If you are looking for a living space, Atlanta has a number of well-established property management companies offering furnished apartments. They assist you with computerized apartment searching and apartment rental services to search for a fully furnished apartment, whether it is traditional or modern, according to your taste.

Atlanta Apartments provides detailed information on Atlanta Apartments, Loft Atlanta Apartments, Atlanta Apartment Rentals, Cheap Atlanta Apartments and more. Atlanta Apartments is affiliated with Apartments for Rent in Chicago.

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Many people not only love to spend their vacations in Colorado, they also buy real estate there in all its forms, whether it is a vacation home, rental real estate, or a permanent residence. There are many different reasons why people want to live in Colorado. From outdoor activities to world-class shopping and entertainment venues, Colorado has a lot to offer to everyone.

If you are a property owner in Colorado, it is not that difficult to sell your property; the Colorado real estate has a great market. Colorado is known as a state with a healthy economy, so it is not hard to start a new life there if you decide to relocate. The real estate also appreciates in a few years? time, which is why many people are enticed to buy property there. If you have Colorado real estate to sell, just post its details with a real estate listing agent so that more clients will know about it. You will have a bigger chance to sell it quickly.

Meanwhile, if you are looking for Colorado real estate, you can begin your search by going through the Colorado real estate listings. Here, you can find quite a few choices such as luxury real estates in Vail and prime pieces of land in Colorado?s fastest-growing city, Denver. However, if you want to be away from the big city atmosphere, you can check out Colorado Springs real estate. If you want to be near the University of Colorado, you can look at Boulder real estate listings.

Whether you are selling or buying a real estate in Colorado, you can certainly rely on real estate listings. You can even go online since many real estate companies have now taken advantage of the Internet for easy access and convenience.

Colorado Real Estate provides detailed information on Colorado Real Estate, Boulder Colorado Real Estate, Colorado Springs Real Estate, Colorado Luxury Real Estate and more. Colorado Real Estate is affiliated with Colorado Vacation Rentals.

Posted in: on at at 4:38 AM 0 comments  

Whether it?s a buyer?s market or a seller?s market, real estate is always a hot business. Sure, everyone likes a good deal, and many buyers choose to purchase a home when prices are low, but the fact is people always need places to live; that doesn?t change just because property prices are high at a particular time.

There are ways to save money when shopping for real estate that go beyond just shopping during a buyer?s market. Once you?ve figured your budget and have a general idea of what kind of home you?d like to buy, it?s time to go house hunting. This is where saving money comes into the picture.

In order to save money on real estate costs, many people opt to purchase ?fixer upper? real estate. A ?fixer upper? is a home that needs a lot of work; maybe new floors, new windows, even a new roof. Buyers choose a ?fixer upper? not only because the price is less than that of a home that?s in move-in condition, but also because they see great potential in the home.

While it?s true that buyers can save money by purchasing ?fixer upper? real estate, they can also lose money in the long run. Aside from the costs of repairs during the ?fixing up,? homeowner?s insurance tends to run much higher for people whose homes aren?t in the best condition. Homeowner?s insurance isn?t usually mandatory, but if a buyer has to borrow money from a bank in order to purchase the real estate, the bank may just require the buyer to purchase homeowner?s insurance until the debt is paid off.

So, the next time you head out to purchase real estate, keep in mind that you may be required to purchase homeowner?s insurance, as well. A ?fixer upper? might sound good when you?re making your offer, but it might not sound as good once you start looking for homeowner?s insurance.

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Posted in: on Thursday, August 28, 2008 at at 11:38 PM 0 comments  

post?mor?tem (p st-m?r t m) adj. 1. Occurring or done after death. 2. Of or relating to a medical examination of a dead body. n. 1. See autopsy. 2. Informal An analysis or review of a finished event. That is the definition you will see in most dictionaries.

We use the term to forensically examine the property that you have purchased, rehabilitated and resold. It is a necessary tool in your administrative toolbox if you want to become a better real estate investor.

The Post-mortem will do the following if you examine it:

1) Show you the way to price your next rehab project down to the penny.

2) Indicate a spike in either goods or labor during the time period.

3) Allow you to correct any deviations in your pricing formula when you purchased the property.

4) Indicate whether you are pricing the resale correctly.

5) Identify training problems.

6) Indicate if you are purchasing the right properties.

7) It is a great tool to show to your lender when you are attempting to finance a property.

Each property you purchase must be examined to indicate whether you are performing your job correctly. How do I do a post-mortem? Well here is the rub? First you have to have a system of pricing in place to examine the results against.

For example a client purchased at auction the property below in Groveport, Ohio on January 20, 2005 and then resold on April 26, 2005, for a profit of just over $19,000 or 20% return. Why would you want to analyze a win like that?

Because the client made several mistakes that can not be repeated if they intend to continue to make profits. So we teach them to analyze everything to make the next deal more lucrative and to get used to having a system.

First they learn to create a summary page. It summarizes the transaction and we usually use this page to show to the lender along with the prediction regarding resale (market index) and our rehabilitation analyzer.

In this situation the home was purchased for $82,150.00 at the auction. Prior to the auction our client had an estimated rehabilitation of $9,700 for the property. In actuality they spent in the neighborhood of $16,000.00! Way out of line with the analyzer. Why were they so off budget? They failed to account for items that were needed. They were over budget on electrical, kitchen, appliances, flooring and failed to account for a new furnace and water heater.

This is simply a training issue or as we call it honest eyes. The client failed to account for items that were required to be in the fix-up budget.

So do yourself a favor and learn to do a post-mortem on every property you purchase. Or let us teach you to perform them.www.blog.frontgateconsulting.com

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A mortgage is a mortgage is a mortgage. NOT! Not only do mortgages differ between lenders, but they also differ greatly by the lenders, themselves. There are two types of real estate originators ? brokers and loan officers.

Brokers generally are self-employed professionals, who work to secure a real estate loan for you. They work through a variety of lenders and earn a fee for the transaction. Most of the mortgage lenders who advertise on the Internet are brokers.

Loan officers are employees of a bank, credit union, or other lending institution, such as a mortgage company. They sell and process mortgages and other loans only for their employers. They are usually local and in a physical location.

There are advantages and disadvantages in using both brokers and loan officers for your real estate purchase, so you need to shop for the one that is right for you and your particular circumstance.

Brokers

The advantages to using a mortgage broker for your real estate purchase are many. Usually, the better deal they get for you, the buyer, the more they are paid on the transaction ? a big plus for you. If your local bank, mortgage company, or credit union has refused you a loan, a mortgage broker may be able to find a lender, even if you have bad credit ? just expect to pay a higher interest rate. If your real estate is unique or commercial property, using a mortgage broker to secure a loan is at times easier and faster.

One downside of using a mortgage broker is that your mortgage loan will be sold to another lender immediately after closing. Another is that brokers choose to do either non-conforming loans, which are higher risk and usually higher interest rates, or conforming loans. This limits your loan options. Brokers do not have to disclose a ?good faith? estimate on what closing costs will be, nor are they regulated by the Fair Credit Act. Additionally, they seldom have a physical office with employees offering you face-to-face customer service, and they generally are in another town or state than where your real estate is located. This means they may not understand the local market in which you purchased your real estate. Important issues may arise from the real estate classifications and terms used by your appraiser, for example.

Loan Officers

Though loan officers offer a variety in the types of loans available, you are limited to only those products offered by one institution. Usually a local institution, the loan officer will be familiar with all local regulations and issues will not arise over lack of knowledge in local market terminology.

Banks and Mortgage Companies

Bank and mortgage company loan officers will give you face-to-face customer services, at least before the closing. Like brokers, banks have the option of selling real estate loans on the secondary market. Some banks sell only low-end mortgages or those that require too much servicing with little return. Some sell the loan but keep the servicing portion, making it appear that your mortgage continues to be owned by the bank or mortgage company. They are required, however, to tell you during the initial paperwork if your mortgage may be sold. I suggest you ask before you ever get to that point, if this is a deal breaker for you.

Bank and mortgage company loan officers are licensed and must meet certain criteria. They have more criteria that you must meet, as well, in order to secure a loan (banks usually require the most). Many real estate buyers are refused mortgage loans by these institutions. Both banks and mortgage companies generally do offer better rates and terms. They also must disclose a good faith estimate on what closing costs will be, and they are regulated and audited under the Fair Credit Act.

Credit Unions

You must be a member of a credit union to apply for a loan with them. Many credit unions do not offer real estate loans. The major advantage of securing a loan from a credit union is that they pass on only actual costs of the loan to you ? no broker fees or commissions. They also never sell their loans on the secondary market, they always are local, and give you continuing face-to-face customer service.

What to Do

The time to begin looking for a mortgage lender is before you begin looking at real estate. Ask family and friends for referrals, as well as their experience with the real estate lender. Ask your real estate agent for referrals. Then, contact each prospective lender and ask questions ? lots of questions! Compare interest rates, terms, after the closing mortgage sale policies, and what criteria do they require that you meet in order to qualify for a real estate loan.

If you are a residential real estate buyer, consider getting pre-approved for a loan. You will know exactly what you can afford to buy, which usually turns out to be much more than you expect.

Spend as much time shopping for a mortgage lender as you will for your real estate. The deal you get can save or cost you thousands or even millions over the life of the mortgage. Get the best deal possible, as well as the right lender for your real estate purchase.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

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There are alternatives to conventional bank financing for land development deals.

OPM, Others People's Money

But I know you've heard all that before, but there are little known secrets that Major Land Developers have been using for years which I want to share with you.

My clients are absolutely amazed when I share these secrets with them, they always respond so that's how they do it.

So why would a commercial financial broker want to share these secrets with you?

The reason is very simple, at the opening page of this site I told you I wanted to educate you, and so I am.

Also if you're able to implement some of these strategies, you're eventually going to need capital to build out your project.

And we'll be here to help you. There are three ways in which you can secure your land development deal without closing a conventional loan. The last way you must seek professional accounting and legal assistance, and will not be discussed here.

Work Directly with the Seller

Use Options to Control The Property

Arrange a 1031 Exchange

The above are three methods or ways to get a commitment to sell the property with little or no cash at time of opening an escrow.

Working directly with the Seller

By working directly with the seller you can help the seller solve many of their problems, and in return he becomes your partner in the land development transaction.

Sellers often believe that they can get a better price for their real estate if they carry the paper that evidences the debt themselves. Here are some of the reasons

Buyers may have qualification issues, and if that's the case you as a buyer may not be as concerned about the interest rate, price and terms and therefore the seller as the one assuming the risk will get a higher price and you get the deal that you were not bank qualified for.

The Seller will get greater after-tax profits.

By the seller carrying paper they will not be taxed on the amount of the sale, but their tax will be based on the installments paid over the years.

In other words a large capital gain may push them into a higher tax bracket, but if the sale is spread out over a period of years, the seller may not be pushed into a higher tax bracket.

Use Options to Control the Property

An option is an agreement specifying some future performance in exchange for a benefit.

Simply stated, give some money control the property!

You offer the owner a price for the option to buy the land. That price (the option premium) buys you the right to buy the land at an agreed upon price at a certain time in the future.

You can exercise the option by closing the sale at any time before the expiration date of the option. The seller must sell, when you are ready to buy, no matter how much the market value may have escalated during the holding period.

A more sophisticated approach is to acquire a rolling option for large land development transactions.

This is much more complex then a simple option agreement. Rolling option is utilized when there is a great deal of property that an individual needs to control. We usually see the use of rolling options in large master planned communities, where developers are planning to phase the development project into numerous phases with an absorption of the homes exceeding five years typically.

In a Rolling option the buyer controls the entire tract but only puts up the option for the first portion of the land, after each execution of the options, the buyer is able to take down more land, until the developer controls all the property of the original contract.

If you do not exercise your rolling options ass they come due, the entire contract is cancelled as to future property that is secured through the initial option agreement...and of course the seller retains the entire premium, and he can immediately offer the property to another buyer.

Benefit to the Buyer is that they can now plan an orderly development of the entire acreage, as well as knowing exactly what the land costs for the entire project are for the proforma and any Return on Investment calculations.

Benefit to the Seller is that the seller can get the price he wants for the property, and he knows that at the least he received a sizable option premium, and at the best he receives the price he wants for his land.

Harlan A. Friedman, Esq., is president of Lightning Commercial Funding Inc., a California mortgage broker. He has more than 25 years of experience as an investment banker and financial consultant, issuing municipal debt for his clients. Lightning Commercial Funding specializes in financing commercial projects exclusively, from the startup of new business to large commercial transactions. Reach Friedman at (858) 592-0659 or harlan@loanforbiz.com. Visit his company at http://www.loanforbiz.com.

Posted in: on at at 8:38 AM 0 comments  

Do you live in a Mobile Home Park and rent a mobile home? Do you want your rent gauging stopped? Did you know that Rent Control Ordinances and the Mobile Home Residency Law could be lost if the initiative passes.

We the people that live in Mobile Home Parks must all unite and defeat Proposition 90. If we do not defeat Proposition 90, we the owners of our Mobile Homes are in a world of trouble.

We could lose our homes.

For more information on Proposition 90 - Go to Californians Against the Taxpayer Trap =>http://noprop90.com/facts/

There will not be any rent control and the park owners can raise the rent anytime, and any amount.

We the Mobile Home owners must speak out. Have meetings in your own individual park and discuss this matter. Make sure everybody in your park votes. If there are home owners who do not drive set up transportation for these people to get to the poles or make sure there book is filled out ahead of time and mailed.

Every vote counts:

We are the people Proposition 90 will affect. We must band together park to park and vote NO, on Proposition 90.

Thank you for reading my article. Please feel free to read my other numerous articles.

Copyright Linda E. Meckler 2006

Linda is the author of her first book, ?Ghost Kids Trilogy.? Christy, 12 and her Brother Brad, 16 moves into an old house on top of a mountain and meet two Ghost Kids. Become involved with all the characters and all the adventure and mystery.

Then we have a mysterious, magical Blue Vase where Uncle Charlie the villain is trapped. He wants out of the Blue Vase and exchange he will tell Christy and Brad where Pirates? Treasure is Hidden.

Take a walk with Christy and Brad down a dark hall hunting for Pirates? Treasure. You will think were you there right there with them.

Love, Family Values and Charity burst off the pages.

4 E books to be added to my website soon. How To Appeal Medical Bills - Appeal and Collection Letters for Medical Providers - Boost Your Self Esteem and Blosssom - Computers Cause Pain. You can purchase Love My Hand Pad on my website www.lmeckler.com

Check out my website http://www.lmeckler.com

Posted in: on at at 3:38 AM 0 comments  

Every single year, the moving industry charges into action (usually during the summer months) as millions of people move from one place to another.

There are always war stories shared by those that have lived through a move, usually detailing experiences that could have been avoided.

Here we investigate the process of actually performing the move, and doing it safely and successfully. Afterall, so many take real care in the financial aspects of buying or selling a home. Why then, is there so much less concern with moving your home from one place to another? Aren't the things inside your home as important as the home itself?

Step 1: Take inventory of the items in your home!

Very often, there is little to no time to actually determine what items are really worth taking to the new home. Therefore, the typical approach is to PACK EVERYTHING! This is a safety mechanism that can add serious dollars to your cost of moving. To move those items you no longer want or need may require a larger vehicle, or more moving supplies.

Some items you may offer to the buyer to help increase the sale price. Other items you may be able to sell on eBay or at a garage sale. Did you ever consider that the money made from a garage sale could actually pay for your move?

Step 2: Organize and Pack your valuables wisely!

The most organized person I have ever met was my sister, who sorted all items into boxes by room, even if it was the attic or garage for storage. She had separated everything based on which room they were going into, not where they came from, packed them into boxes and used marker to write the contents and designated room.

Step 3: Buy the right moving supplies!

The one thing everyone needs, but no one wants to buy are moving boxes, moving supplies and packing materials. Consider how much your valuables are worth, and then consider whether or not it is worth spending some money to ensure that your valuables are kept safe during the move. Whether you have your big buddy helping you or a professional moving company, you are still much safer if your valuables are packed securely. DON'T use your friend's recycled boxes as they may no longer be sturdy.

You can find moving boxes, moving supplies and packing materials you need online at wholesalers like www.promovingboxes.com. Sites like these are all over and offer fast free shipping. Imagine, that old bike or furniture set you sold on eBay may even pay for your order!

Step 4: Hire a Moving Company!

Bluto the large may be a close personal friend, but very often should not be relied on to supplant a professional moving company. For one thing, favors are always repaid with other favors, which involve some manner of costs. Also, either your stuff, or worse your friends could get hurt in the process. Professional movers are insured, and so are your valuables. If a mover drops grandma's china set that was given to you as an heirloom, you may remember it forever, but you'll probably never see that person again. Your friend may not be so lucky. They could wind up with a permanent black mark when all they were trying to do was help you out.

Step 5: Take time Off before and after!

Don't leave a deadline of a weekend to move your home. It is never long enough. True, that most people take vacation to simply go on vacation. But here, you have 1 opportunity to get it all right! From start to finish, you have the opportunity to do everything right! Ever hear of someone who wanted to paint their new home first but couldn't because they had to get their stuff out of the moving truck?

Leave yourself plenty of time to perform all of the steps in your move. You will feel much better for it in the end. Those who take off often find that they have accomplished so much more. Either by organizing their new home, or cleaning their things as they unpack them. Most importantly though, those who take off can take time to enjoy their new home, and begin to plan for their future there.

We wish you the best on your move, and hope that you learn from the experiences of the many who have gone through it already

Robin Campbell - EzineArticles.com Author

This author writes articles that are typically published at www.promovingboxes.com. Directives and objectives for the near term include becoming an authority on the moving industry. His main website is 'promovingboxes' -- offering wholesale moving boxes and supplies with free shipping and next day delivery.

Posted in: on Wednesday, August 27, 2008 at at 10:38 PM 0 comments  

Maybe you?re buying your first home in Kentucky, or perhaps you?re relocating to Kentucky from another state. Either way, it?s important that you educate yourself on Kentucky home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Kentucky:

The price of homes in Kentucky varies widely between zip codes. For example, in Louisville, Kentucky, the median price of a home in 2005 was $225,000; however, in Lexington, Kentucky, the median price of a home was $156,000. In 2004, the median home cost was for the entire state of Kentucky was $179,000. Additionally, in the last few years, average interest rates on home loans in Kentucky have been higher than the national average.

The rate of job growth in Kentucky is lower than the national rate, and the number of bankruptcies and foreclosures is higher than the national average. The rate of home appreciation in Kentucky is also lower than that of the nation. Homes in Kentucky appreciate at less than half of the rate of average national appreciation.

Kentucky is one of the many states that have enacted laws in order to counteract the rate of predatory lending. Kentucky?s high-cost home loan law subjects loans that are considered high-cost to certain regulations. High-cost loans include mortgages in which the total points and fees required to be paid by the borrower at closing exceed eight percent of the total loan amount and residential mortgages in which the APR exceeds the Treasuries securities rate by eight percent on first mortgages and ten percent on second mortgages.

Kentucky high-cost loan laws apply to purchase, refinancing, and second mortgages. Lenders may make high-cost home loans, but they must abide by certain restrictions. For example, lenders may not collect repayment penalties after the borrower has owned the home for three years, they may not create a repayment schedule that results in an increase in the principal amount owed, and they must reasonably believe that a borrower will be able to make the payments on their mortgage.

Because Kentucky officials are attempting to counteract predatory lending practices, the penalties of not abiding by Kentucky high-cost home loan laws are very strict.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Kentucky Mortgage Rates and Loans.

Posted in: on at at 5:38 PM 0 comments  

Few places can boast the unadulterated beauty and seaside charm of Newport Beach, California. The sumptuous golden sands, sparkling clean ocean water and unrelenting sunshine all combine to make the Newport Beach real estate market one of the most prosperous in the wonderful state of California. It is fair to say that this seaside city is awash with people who love the ocean and enjoy all the recreational options that the beach offers.

With a residential population of around 85,000 and rising, it is clear that the Newport Beach real estate market is enjoying many prosperous years. There are many properties available and though the style and size of the homes vary, the quality of the properties on the Newport Beach real estate market is never compromised. The people who make up this beachside community are rightly proud of the safe, secure family atmosphere that they maintain and that is of course one of the main selling points in the world of Newport Beach real estate.

Having a gorgeous, Mediterranean climate and some of the most pristine beaches in the country means that outdoor pursuits play a major part in the lives of many who invest in Newport Beach real estate. From the beach to the golf course, from boating to snorkeling in the pristine waters, Newport Beach is a recreational paradise. With tennis, volleyball, surfing and more, it is no surprise that outdoor enthusiasts continue to buy Newport Beach real estate.

The warm sunshine and the breathtaking ocean views are all part and parcel of why discerning buyers are increasingly interested in securing their home from the array of properties in the Newport Beach real estate market. With a climate that is the envoy of many and a community that enjoys fresh ocean air and some of the most wonderful beaches in California, the interest in Newport Beach real estate just keeps growing.

Newport Beach also offers much in the way of culture, nightlife and the fine amenities and facilities you would expect from in a modern city. Great restaurants, excellent shopping and a number of great little bars to enjoy a cool beverage after a long day on the beach. No wonder people are rushing to secure some Newport Beach real estate.

Kyle Menic is a writer whom specializes in Southern California real estate, which includes Newport Beach real estate and Orange County real estate.

Posted in: on at at 12:30 PM 0 comments  

Unlike residential loans, commercial loans require more robust credit and down payment from buyers. Typically the terms of these loans are less attractive than residential properties. While these impediments reduce the number of qualified commercial real estate buyers, there are many investment trusts and corporations fully capable of qualifying for and carrying such debt service successfully.

Borrowers will be faced with a large variety of available loans. In the beginning, a deposit receipt needs to be provided which represents the terms of purchase of a commercial property. It will list the amount to be financed, estimated interest rates and terms of the loan. A loan is applied for by completing a loan application with a mortgage broker or loan company. There will be a non-refundable loan application fee, usually around $200 to $400. A commercial mortgage broker represents several lenders, and will submit the application to a lender he believes most appropriate for the situation. Representatives for banks and other lending institutions usually represent only one institution, and will submit the application to that institution. There are advantages to each type. The lender will verify the statements of assets, liabilities, employment, and salary. The subject property will be appraised.

The loan approval takes about 20 to 30 days on an average. The actual time depends upon how quickly the lender can process the application, get the appraisal, and obtain verification of employment and bank balances.

A commercial loan eases the burden of paying huge sums of money at a single instance. Finance options spread the paymet towards the loan amount over a period of 25 to 30 years. New businesses are increasingly opting for commercial real estate loans.

Real Estate Loans provides detailed information on Real Estate Loans, Commercial Real Estate Loans, Investment Real Estate Loans, Residential Real Estate Loans and more. Real Estate Loans is affiliated with Refinance Home Mortgage Loans.

Posted in: on at at 7:29 AM 0 comments  

It?s officially a buyer?s market in Miami. Miami FL real estate market conditions have been less than favorable lately if you are a seller in Miami. According to data supplied by the Coral Gables, Homestead-South Dade, Kendall-Perrine, and Northwestern Association of Realtors or their MLS, in June of 2005, there were 3,261 single-family homes on the market in Dade County (which includes Miami, Miami Beach, and a number of surrounding smaller cities), with 1,196 sales. In January of 2006, there were 6,364 single-family homes on the market, with only 687 sales. In August of this year, there were 10,579 single-family homes for sale in Dade County, but there were only 705 sales. September of 2006 saw 11,103 single-family homes in Dade County, for sale; with only 758 homes sold.

The condo market in Dade County has been similar. In June of 2005, there were 5,550 condos for sale in Dade, and there were 1,564 sales. However, moving into January of 2006 there were 11,800 condos listed on the market for sale, but only 915 sales. In August of this year, there were 18,133 condos in Dade for sale, with the number of sales falling to a 15 month low of 823 condos sold. September of 2006 fell lower with a total of 18,974 condos for sale in Dade County, and 805 sales.

This is all good news if you are looking to buy real estate, because there is so much to choose from, and the savvy buyer can make a wonderful deal in this real estate climate.. Thousands of luxury homes and condos available for sale in the real estate marketplace can be viewed on Miami FL real estate.

Alex Shay is an experienced real estate broker, who specializes in luxury real estate in Miami, and Miami Beach, as well as Coral Gables, Key Biscayne, Aventura, Bal Harbour, Indian Creek, and all of the surrounding South Florida community. He has been licensed to practice real estate in the State of Florida for over 20 years, and he brings his expertise and negotiating skills to his clients, whether they are his neighbors, or clients from as far away as Taiwan.

Posted in: on at at 2:38 AM 0 comments  

The number of people on the lookout for real estate notes are increasing day by day, as the profit involved in the business is great. Lots of websites provide real estate note listings. Business, commercial and residential notes are the major categories of real estate note listings. Real estate note listings are ideal for both buyers and sellers. They are also used by real estate note brokers to improve their business.

Real estate note listings provide buyers a wide range of selection. Through these listings they can purchase real estate notes at a higher profit margin. Location is another great advantage with this type of listings. You can purchase real estate notes from your locality or any other locality you prefer. Another advantage is the variety of listings available. If you are interested in commercial real estate notes, you find them in a separate category and you don't have to search all real estate note listings. The greatest advantage you get from real estate listings is that your real estate note would be displayed to different types of investors. Prices offered by different types of investors vary. Sometimes you could enter into a deal beyond your expectations with the help of these listings.

Real estate note listings are also ideal for people who need immediate cash. With the help of real estate note listings, you can quickly find a buyer who would be ready to release cash immediately for a good discount. Real estate note listings allow you to easily sell a part of the note or the whole thing. Real estate note listings have much flexibility, and they can be used by both sellers and buyers. Blindly believing real estate note listings can be dangerous. It is better to take each single note in the listing and see whether it matches your selling or buying criteria.

Sell Real Estate Notes provides detailed information on Find Real Estate Notes, Real Estate Note Brokers, Real Estate Note Buyers, Real Estate Note Listings and more. Sell Real Estate Notes is affiliated with Sell House By Owner.

Posted in: on Tuesday, August 26, 2008 at at 9:38 PM 0 comments  

Costa Rica property investment has provided investors with great capital gains over the last few years with low downside volatility.

Many investors now see Costa Rica property investment as expensive and are looking at other Central American countries such as Belize and Nicaragua, but Costa Rica still looks a better investment in terms of risk to reward due to the following:

1. An established market

Costa Rica property investment still looks to have excellent capital growth potential because it is an established market.

The fact is once foreign capital buys in more follows, as it instils confidence and there is a track record to look at and this encourages further investment

The Expat community continues to grow and the gains are too made in new up and coming locations as existing established locations need to expand out .

2. Stability

Costa Rica is a stable investment environment and unlike Nicaragua for example, there is no threat to this stability such as the Sandinista party, there is a track record of stable democracy.

3. Standard of living

Many people coming from abroad want the lower costs of a new location but they also want similar facilities to the ones they have at home, such as clean water, good roads, entertainment and shops and infrastructure and Costa Rica property investment gives them access to this.

A property market can provide good upward growth for many years and Costa Rica property investment is no different, the key is location.

As foreign capital continues to come into the country, the way to enhance capital growth is to pick locations wisely, in up and coming areas.

Look at changes in the infrastructure that benefit the expats and if you buy in these areas then capital growth potential to risk will be maximised.

Value Capital growth potential in a secure country

Costa Rica property investment is no longer the cheapest in Central America but offers value for money and good capital gains potential, linked to low downside volatility.

This after all what most investors are looking for from property investment.

Will countries such as Nicaragua and Belize for example grow like Costa Rica?

Only time will tell, but the amount of capital being invested in Costa Rica property investment points to the fact that a lot of smart money still sees great potential.

Costa Rica property investment for retirees, second and holiday homes remains a solid investment and the future looks bright for those investors looking for great upside with low downside volatility.

FREE Report

On the potential for investing in property in costa Rica visit http://www.costaricalandlots.com

Posted in: on at at 4:38 PM 0 comments  

With the advent of Web 2.0, many real estate Web-sites are offering new services and new hype. Though well-funded national Web-sites can offer staggering technical services, much of real estate remains local and beyond their ken. Additionally, South Bend is a secondary market, so many services aren?t active in our area. Below is a look at four of the best new real estate Web-sites and their performance in South Bend. The sites are often entertaining and useful, but they lack the local knowledge and human touch real estate often requires.

Zillow

Experience: Zillow offers a map based search of homes, allowing you to learn Zillow?s estimated value of each property. While the idea of easy access to every homes value is compelling, these estimates reportedly vary wildly. Phoenix based Greg Swann recently wrote a lengthy article about the inaccuracy of their ?Zestimates.? Regardless of their accuracy, Zillow has NO data on South Bend homes.

Analysis: A great technical format with a possibly flawed premise. Estimated home values created sight unseen or by a formula should not be considered authoritative. You can check the assessed tax value of your South Bend home to see another often innacurate formula-based valuation.

Realtor.com

Experience: This is the most established player, run by the National Association of Realtors. A quick search returned 1,644 properties for sale in South Bend. Their ?request a showing? button summons a form for you to enter your contact information, which will be sent to a Realtor as a ?lead.? Searching for a realtor in South Bend returns seven pages of Realtor mug shots and Web-site links with little to differentiate them.

Analysis: An ad-heavy but functional way to view properties in the area, but a poor way to choose a Realtor.

Redfin

Experience: This is a limited service online brokerage with the motto ?we refund 2/3 of your commission.? It?s an interesting addition to brokerage options where it is available, currently only in San Francisco and Seattle (not in South Bend). It is also for those who are already VERY comfortable with buying and selling homes. If successful it will eventually reach Indiana.

Analysis: The search is akin to Realtor.com with a limited scope but better technology. You use a map and search for active listings based on your criteria. After you find a property the difference is stark. Redfin offers only on-line and phone support. This is as close as you can currently come to buying a home on the Web. Don?t expect much guidance or much of a personal touch.

Craig?s List

Experience: This is the local version of the popular, text-based on-line classified. It?s worth scanning for hidden gems, but contains many ads which are not for South Bend real estate, e.g. ?great leads for Realtors? and ?Invest or Retire in Arizona.? Analysis: Craig?s List?>South Bend?>Real Estate has its place, but is better for apartments and rentals than for residential homes.

Nick Molnar is founder and editor of the South Bend Area Blog, and resident of South Bend, Indiana. He can be reached by e-mail at nick@realst8.com.

Posted in: on at at 11:38 AM 0 comments  

A rental agreement is a legally binding contract between the landlord and the tenant that outlines the terms and conditions of the rental.

This contract document is made up of many components. They are:-

1. The rental agreement should be very specific on the subject of abandonment. It must clearly define the landlord?s options if the tenant leaves the property without notice?

2. It should outline the alterations that a tenant can make to the property. The rental agreement should clearly state the kind and extend of the alteration that is allowed or not.

3. The rental agreement should touch on the subleasing. As subleasing is very popular today, the rental agreement should state your stand very clearly on this subject to avoid future misunderstanding.

4. The rental agreement should also state very clearly what will happen in the case of defaulting on a payment. The late fees should also be outlined in the rental agreement. The tenant should know up front how much they will be penalized.

5. As a landlord you should have access to your property for inspection. The rental agreement should detail when and how you will be able to enter the property in order to inspect it, etc. State laws vary on this subject and your rental agreement should conform to the law of the state.

6. The rental agreement should state who is responsible for the maintenance of the property. If it is a joint responsibility, it should clearly state who is responsible for what.

7. Payment methods should be outlined on the rental agreement so that the tenant knows how they can pay the landlord.

8. Like maintenance, utilities are a huge part of any rental agreement. It should be clear on who will pay what bill, as well as which utilities are included in the monthly rent.

All of the above are important components to any rental agreement. In addition since state laws differ, a rental agreement can have additional clauses depending on where you are located.

The first place, and usually the best place, that you may want to search for a rental agreement is on the Internet. There are several websites that will supply you with the rental agreement form that you are looking for. One of the more reputable services is located at www.rentalagreements.net.

You have to pay a small price to purchase the rental agreement that is appropriate for your state but it is much better than drafting your own rental agreement and taking the chance of missing out on something that is crucial.

The other way to get hold of a rental agreement is to get in touch with a real estate agency. If you are lucky, they may even be able to supply you with a sample rental agreement that you can customize and use as your own.

A rental agreement is something that you must have if you are going to be renting out any property. State laws differ and your rental agreement needs to meet the laws and requirements of your state in addition to also outlining every aspect of the lease in detail.

Ken Fong http://www.therealestatescoop.com Terra Bites of Real Estate Information

Posted in: on at at 6:38 AM 0 comments  

Whether you are a first timer or and experienced home buyer a good Tucson AZ realtor can help guide you through the process of buying a home, helping you to avoid many of the mistakes that home buyers make. An uninformed home buyer without the advice of a qualified Tucson AZ realtor might make costly errors in choosing an agent, selecting a location, and securing financing. As you become educated, with the assistance of your realtor you will be confident that you can get the best home for you, your lifestyle and your budget. A home is one of the most important investments you will make, and you owe it to yourself to approach it with knowledge and care.

The first step in choosing a qualified Tucson AZ realtor to help you find and purchase your home is to choose a buyer?s agent. You don?t want to have someone who works for the seller handle your side of the deal as well, because you want to get the best possible deal for yourself. A buyer?s agent who is a Tucson AZ realtor has special training to help you find the best home at the best price. Find a realtor who knows the area where you are looking to buy really well and who can direct you to the types of homes and neighborhoods best suited to your needs.

Any good Tucson AZ realtor will tell you ?location, location, location,? is one of the most important pieces of the home buying puzzle. Look at potential homes not only during the day but at night as well. If possible, meet some of the neighbors as well. Check for any factors that are important to you. Do you need good schools, or a terrific golf course? You can find them with the help of a Tucson AZ Realtor. One note about price-if your home is a much higher value than others in the neighborhood, it could cause problems down the road if you want to sell.

A good Tucson AZ realtor will help you to find financing which will meet your budget and lifestyle needs. Your total debt after buying the home should not be more than 36 percent of your gross income before taxes and your mortgage payment should be about 25 percent of your gross income. A Tucson AZ realtor should be fully aware of your financial situation before you begin looking at homes so that they can show you homes in your price range. They may also have you pre-qualify with a lender or mortgage broker that they do business with.

A realtor is an invaluable asset when finding and purchasing a home.

Eriani Doyel writes articles about Real Estate, Home and Family. To learn more about what a good Tucson AZ Realtor can do for you, visit real-estate-lx.com.

Posted in: on at at 1:29 AM 0 comments  

Leveraging is a technical term meaning borrowing to invest. More specifically, financial leverage takes the form of a loan reinvested with the hope to earn a greater rate of return than the cost of interest. For years leveraging was mainly used in the Stock Market for brokerage margin accounts, that is arrangements in which investors bought stocks ?on margin', putting up only a percentage of the total cost. The brokerage firm effectively provided a loan for the balance. With the appearance on the financial scene of home equity lines of credit in the 1990's, leveraging was adopted by investors and speculators in Real Estate as well.

Home equity lines of credit meant that ordinary people who had benefited from the big run-up in housing values during the 1970's and 1980's suddenly had access to large amounts of cash. In most cases, these were not sophisticated investors - in fact many of them knew very little of real estate investing. But they had home equity and could suddenly tap into it. The same phenomenon has happened in the early years of the millennium with a new generation of real estate investors, who have used their equities to purchase and add up inventory, thus contributing to the price increases of these past few years.

The math of leveraging has always been very seductive, both as it applies to the Stock Market and in Real Estate. All the more so at the time when markets were soaring. With leveraging, one uses other people's money to enhance his own profits by acquiring additional interests in land. This enhancement process takes the form either of added equity, which is realized at the time the real estate asset is sold, or as additional cash-flow, as in the case of rental properties. Either way, it was easy to make a compelling case for borrowing against home equity to invest.

There are, however, pitfalls in leveraging that must be brought forth to the uninitiated investor. For one thing, while leverage allows greater potential return to the investor than otherwise would have been available, the potential for loss is greater because if the investment loses value not only is a portion of that money lost, but the loan still needs to be repaid in its entirety.

Secondly, the problem with leveraging in Real Estate does not relate to its potential value as an investment tool but, rather, to the emotion that invariably is involved in any real estate transaction. People tend to be persuaded to borrow against the value of their homes without truly understanding the risks involved and the potential distress that losses may cause, especially when the market is in retreat and prices are dropping. This is the reason why a small but increasing number of investors find themselves into the predicament wherein they have saved and scrimped all those years to pay off their mortgages and are now right back where they started.

Leveraging is a suitable strategy only for investors who are experienced and knowledgeable. Unless one is prepared both financially and psychologically to deal with what could be severe short-term losses and stick with the investment for the medium to long term, one is not a good candidate for leveraging. And even then, when the investor has the know-how and the stomach for leveraging, certain rules of thumb are always helpful:

[ Invest when prices are low, not high.

This sounds obvious, but unfortunately there is a natural tendency to shy away from real estate when markets have peaked and prices are falling. Conversely, when property values go through the roof everyone wants a slice of the pie. This is specifically the reason why it is so easy to convince people to use leveraging when everything is on the rise, and almost impossible to get anyone to listen when markets are in deflation.

But it is exactly during falling markets that leveraging offers the best capital returns in the medium to long haul. Interest rates are low, so the cost of borrowing is minimized. Financial institutions are looking for customers and it is easier to cut a better deal or get incentives from them than would be the case otherwise. Sellers too are more motivated and more flexible on prices and terms of contract.

[ Be selective in what you buy.

Go for the quality of the real capital asset. A house, or multi-family dwelling that is well maintained and well kept will hold up value better in the long run, and will save the investor money in upkeeping as well. In the case of rental properties, it will be easier to find tenants willing to pay more to relocate into a nice-looking property.

[ Take the profits and pay down the debt.

Greed is always dangerous in any market, and this is where most people fall. Do not keep reinvesting the profits. That is like betting all winnings on every new roll of the roulette wheel. By doing so, investors expose themselves to new risks every time they use leveraging to reinvest, and sooner or later they will lose because they do not stand on solid financial foundations. The best and safest strategy is to use cash-flow to pay down the loan, or to wait for prices to increase and then sell for a profit.

[ Pay the lowest possible interest.

Even though the interest is tax deductible, investors have still to pay some of it out of their own pockets. If the loan is substantial, that could amount to several thousand dollars every year. So therefore it is always advisable to shop for the best deal available, using the services of a good mortgage broker.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

Posted in: on Monday, August 25, 2008 at at 8:30 PM 0 comments  

Honolulu is the capital of Hawaii, and the largest city in Hawaii. Properties near Honolulu are in high demand due to the fact that the Honolulu harbor is the busiest and most important port in Hawaii. Investment opportunities are sought after in this area, because buying property in the Honolulu area can potentially become a great investment, and will eventually make you a lot of money.

There are a lot of reasons why you may choose to purchase property in the Honolulu area. You might have decided to purchase a retirement home in this island paradise, or maybe a place to call home during your vacations. Another reason is for investment purposes. Since available land is such a rare commodity in this island state, property values are relatively high. Since this is a prime vacation spot for many tourists, developing land for hotels and restaurants is a prime investment opportunity.

Many potential buyers make the mistake of avoiding realtors, in favor of dealing with the seller directly. People have the misconception that they may be able to get a better deal bypassing the realtor. This could potentially become a very expensive mistake on the part of the buyer. By not dealing with a realtor, you may not be able to take advantage of the best values on the market. If you are in the process of purchasing property in Honolulu, you may want to consult with a realtor who specializes in property in that area. They will have all the information available, and they will help you get the best deal. A realtor will also be able to negotiate with a seller to benefit you.

The contract you sign to buy property is a legally binding one. Avoid signing an improperly written contract, because it could cause you lose thousands of dollars.

Hawaii Real Estate provides detailed information on Hawaii Real Estate, Honolulu Hawaii Real Estate, Maui Hawaii Real Estate, Big Island Of Hawaii Real Estate and more. Hawaii Real Estate is affiliated with Hawaii Real Estate.

Posted in: on at at 3:29 PM 0 comments  

One of my favorite real estate investing stories is about a man in California who used to just send out offers on a hundred MLS listings at a time. He never looked at the properties. He just offered 25% less than the asking price on each one, trusting that the listing agents were pricing these homes somewhere near the actual value, and so assured that he had a good deal if the seller accepted.

Sometimes a seller would accept his lowball offer. This happens more often when you make hundreds of offers instead of just a few. Of course, he always included an inspection and approval clause in the offer. This is common, and it meant that if the home had real problems, he could back out of the deal later without forfeiting his deposit. In the meantime, he very efficiently found the truly motivated sellers.

My favorite part about this story, apart from it being true, is that it demonstrates that success in real estate investing, as in life, is often just a numbers game. Try enough times, and you are more likely to succeed.

The story also demonstrates that with a good clause or two in the contract, you don't have to worry about making an offer before you see a property. This is true with buy investment property or your next home. If you make the offer in the right way, and the property it isn't everything the seller says it is, you can reject the deal with little or no loss. However, why wouldn't you want to look at the property?

Real Estate Investing By The Numbers

You might skip looking at a property before making an offer because of time constraints, especially if the property is far away. If you can't get it for a price that makes sense, why spend your time traveling to look at it? A good price and terms that make sense - these are what is most important.

You'll probably want to look at the actual property eventually, but whether or not you see the property before you make an offer isn't nearly as important as making sure the numbers make sense. For example, investors value income property according to current cash flow, or at least they should if they want safe and viable real estate investments, so start by verifying income. Ask for actual income figures for the past 12 months. It's a good idea to think about the potential income if the rents are raised, or vending machines are added, but you should base your offer on the current income.

Fortunately, this can be done by phone and by mail. You can also verify all expenses this way, but if any expenses listed by the seller seem unusually low, they most likely are. Substitute your own best guess in place of any suspicious numbers.

Subtract the expenses from the gross income to determine the net operating income, then apply the appropriate capitalization rate to arrive at the value. Not sure how to do this? Learn how, don't just ask someone to do it for you. You really should understand the principle of how to figure value based on a cap rate. Real estate investing is all about the numbers.

Subtract your expected loan payments (talk to your banker), from the net operating income to see how much cash flow you'll have. Now you can figure your cash-on-cash return based on how much of your own money you put into the deal. Simply divide the annual cash flow by your investment.

Do the numbers work? Then you can safely make an offer. The various inspections will tell you if there are problems that will affect the cash flow, and you can always renegotiate if there are such problems (assuming you made your approval of all inspections a contingency of your offer). Of course you can go look at the property now, but real estate investing is about the numbers.

Steve Gillman writes on all real estate topics. Visit his website for:

1. A photo of a beautiful house he and his wife bought for $17,500.
2. A free book on how to save thousands buying your next home.
3. A free real estate investing course.

Visit
http://www.HousesUnderFiftyThousand.com

Posted in: on at at 5:29 AM 0 comments