Real Estate Property

The Benefits of Getting a Professional Home Inspection

2006-10-26T00:25:00.000-07:00

by Karen Rhodes

What is a professional home inspection?

Professional home inspections are becoming an important factor for everyone seeking or planing to buy or sell a home. A home may look to be in very good condition but if we go through the things that can't be seen with the eye we may find issues that need to be addressed. The need of a professional home inspection is increasing day by day because of increasing litigation due to unknown or undisclosed defects.

A normal individual is not supposed to be the expert of all these technical details. This leads to the need a professional home inspector who inspects the home. A typical home inspection will take several hours to complete. If testing is being done for things such as mold, radon, etc it could take several days to get these results back from the lab.

There are many advantages or benefits to hiring a professional home inspector, some of these benefits are:

Benefits for the buyers

1) With a professional home inspection a buyer can calculate the most realistic price of the property he is going to buy. However, in most cases, the inspection is done after negotiating the price. The home inspection results can be used in negotiating repairs or if the repairs are extensive a buyer may want to back out of the transaction if the contract allows it. The buyers can compare the features and drawbacks with the similar properties available in the same condition.

2) Ridding the buyer from the stress of legal or documentary formalities as the inspector will provide a written report.

3) A Buyer can better guess the possible lifetime of the structure; this will enable him in planning the prospective use of this structure.

4) A buyer can better understand the impact of any unknown natural disaster on the home structure.

5) This could also save hundreds of dollars by making the buyer aware of repairs needed at the surface, fitting, flooring or roof of the structure as well as electrical and plumbing.

6) It satisfies a buyer by familiarizing them with all the maintenance and repair details, well in advance.

Benefits for the sellers

1) A professional home inspection gives the sellers a better idea about the current condition of their property. This is most important in cases where seller has not lived in the house and isn't very familiar with it. Such as rental property, inherited property, etc.

2) With the better understanding of the main features of the home seller can bargain more confidently about the pricing by making any necessary repairs prior to putting the house on the market.

3) Gives you confidence of well-trained, professional helping hands with you.

These benefits of a professional home inspection make this service very popular among buyers and sellers. I suggest working with an inspector who is a member of ASHI, American Society of Home Inspectors. A professional inspection, in the Chattanooga TN area, will cost about $325 but it's money well spent by either a buyer or a seller.

Karen Rhodes is a lifelong resident of the Chattanooga area and is a successful REALTOR®. Visit http://www.ChattanoogaRealEstateToday.com for more information on Chattanooga and its surrounding areas.

tags: property | home | real | estate

Ways to Make Your House More Saleable

2006-10-26T00:23:00.000-07:00

by Tim Mai

Curb appeal is one of the most important aspects of your marketing and the first way to make a house more saleable. If the house or yard looks poorly maintained from the street, it is doubtful that many people will even desire further viewing. It is critical to have the yard in the best possible shape; lawn mowed and trimmed, leaves picked up, windows and screens washed, any sidewalks swept clean and a paint-job that looks fresh. A few seasonal decorations help, as well. If the sale is during the summer months, a pot or two of flowers by the front door will add a nice touch.

A furnished house shows better than a vacant house, but be sure to remove excessive clutter or furniture. People usually buy a house because they need more space and uncluttered rooms exaggerate the space. In addition, clean out closets. You can leave a few items in them, but the more space, the better. Similarly, try to have any built in shelves sparsely decorated, emphasizing the space available.

Hopefully, the potential buyers have decided to tour the home. What next? Begin by putting yourself in the buyers' shoes. As you enter the house, look and listen for repairable flaws. Does the front door squeak? Do the windows have screens? Be overly critical, as you know any potential buyers will be also. It has been stated that most potential homebuyers come to a decision within the first few seconds of walking in the front door. To that end, it is important to make sure that the entryway and front room are clean (this includes clean smelling, too!), well lit and, overall, establish a welcoming atmosphere to your home.

Just as important as the overall atmosphere is the condition of smaller, hidden areas. Specifically, examine faucets for drips and under sinks for leaks. Fix any leaks and repaint/replace the liner if necessary. Make sure the oven is clean and the light works. Check doors and windows for binding and ensure good lighting throughout. One of the best expenses is often a simple paint job. Avoid bright colors and stick with an off white. The fresh paint will not only cover any small cracks, but also help freshen the air.

Money spent to pep up a house prior to sale will almost inevitably be recouped by the sale price. Fresh paint, a clean carpet, new screens and a few other expenses will benefit the seller greatly by giving a pick-me-up to the appearance of the home, thereby making the house more saleable.

Tim Mai is the founder of Community Real Estate Investors Association, a network of real estate investors who advertise "We Buy Houses" across the nation. Visit our website at http://www.sellmyhomeforcash.com to sell your house fast for cash.

tags: property | home | real | estate

Basics of Real Estate Law

2006-10-26T00:20:00.000-07:00

by Sandra Stammberger

Real estate is such a broad topic. This topic covers almost the whole world and every individual has concerns regarding this.

Like any other things in this world, certain laws govern real estate, the so called real estate law. Nevertheless, to fully understand what real estate law is, it is necessary to define real estate. What is real estate?

Real estate is a legal term that includes land along with anything permanently affixed to the land such as buildings, fences and things attached to the buildings, such as plumbing, heating, and light fixtures. The properties not affixed are regarded as personal property.

Just like real estate, the real estate law is such a broad topic as well. If you are going to discuss it in a very simple way, real estate law is only the law, rules, regulation and other legal matters that governed real estate.

Real estate law entails things like owning real property, the typical restrictions imposed on owning real property, the common forms of property ownership and many others. As said earlier, it is very broad.

In this article, real estate will be discussed through the basics of real estate law. The basics of real estate law include understanding real property, the ownership, the restrictions, and the forms of property ownership. The basics discuss the topic regarding ownership of real estate.

Understanding its basics, you will definitely have the right thought about real estate law.

One of the basics of real estate law is real property. What is real property? Real property is simply the real estate. The real property is used interchangeably with real estate.

However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from the real property, referring to ownership rights over real estate.

Real estate also entails about owning real property. What is owning real property about? Owning real property allows you the right to do with the land as you please aside from those subject to restrictions imposed by real estate law.

Owning a real property means you can do anything with it such as use it; give it away; sell or transfer it; use it for a collateral for loan; bequeath it to intended beneficiaries or let it sit where it is without doing anything to it. In other words, owning real property is having total rights on a land and no one can ever question you for it is yours.

In owning a real estate, some typical restrictions are being imposed by law. There are countless laws that restrict what you can do with the real property. It may be federal, state, county and local laws. The enforcement of these laws resides with the various agencies.

The most common restrictions imposed by government are zoning. It is an environmental hazard, public easement, right of way.

If there are restrictions imposed, there are also forms of property ownership. These are joint tenancy; tenancy in the entirety; sole ownership; tenants in common and community property.

In joint tenancy, two or more people own the property at the same time in equal shares. In tenancy in the entirety, some estates have especial form of joint tenancy when the joints are husband and wife- with each owning one half.

In sole ownership, the property is owned entirely by one person. Two or more persons own common tenants' property at the same time. Meanwhile, community property is only recognized in the estates. It is a special form of joint tenancy between husband and wife, each owning one-half of their properties. Upon death, the decedent's interest passes in a manner similar to tenants in common.

The basics of real estate are the best information needed in order to understand real estate law. With this basics information, although real estate is very broad, you have the capabilities of understanding it into its deeper sense.

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tags: property | home | real | estate

14 Steps to Creating a Real Estate Business Plan You Can Use

2006-10-26T00:18:00.000-07:00

by Cheri Alguire

This model of business planning and goal setting for Real Estate Professionals breaks the process down to five sections and fourteen steps.

SECTION A: The Big WHY

It is important to first look at who you really are and what your core values are. These things will drive you and carry thorough to your business.

Step 1 - What is your purpose?
Uncover your purpose, what provides the foundation of our values, vision and goals.

Step 2 - What are your values?
Know your core values which dictate what is important in both life and business: how business should be conducted, your view of humanity, and your role in society.

SECTION B: Vision - Goal Setting

This is where you take a hard look at where you are at and figure out where it is you are going in your business and in your life.

Step 3 - The Year in Review
Recognize what it is you have done this year, celebrate the accomplishments and also look at what may have stopped you short of reaching a goal.

Step 4 - Is your life in balance?
The Wheel of Life, sometimes called the Balance Wheel, will help you visualize your current situation, providing a snapshot of how you see your life today.

Step 5 - Business Review
Take a look at the results of the last 12 months. Did you reach your goals and achieve what you wanted?

Step 6 - Goal Setting
Don't hold back, dream LARGE, think BIG, aim HIGH.

Step 7 - Production Goals
Work the numbers. Create specific number goals for the next one to five years.

SECTION C: Creating an Action Plan to Achieve Your Goals

All Real Estate Professionals know they need a Business Plan. By following these steps you will create a plan that will help you hit your business goals.

Step 8 - Define Your Niche and Value Proposition
Become a specialist and build perceived value. Know your true value and learn to articulate your value proposition to your clients.

Step 9 - Lead Generation/Marketing Plan
Recognize what specific changes to your current plans are necessary to make in order to reach your goals.

Step 10 - Define Your Team Organizational Structure
Understand the organizational structure of your team.

Step 11 - Development Plan
Capture all of those things you have wanted to research, create, do, perfect, delegate and implement in your business.

Step 12 - Budgeting
Review your expenses for the current year and include any new marketing and development changes.

Step 13 - Production Plan
Create and monitor goals on a monthly basis in order to hit your production goals for the upcoming year.

SECTION D: Achieving Your Goals: How do I get there from here?

By breaking your large goals into smaller steps you will always know what you need to do next in order to keep working toward hitting your business and personal goals.

Step 14 - Creating a Master Project List
Change your goals into "projects" to actively work on over the next twelve months, and from this create a "Master Project List."

Real Estate and Life Coach Cheri Alguire has partnered with hundreds of Real Estate Professionals to help them become more successful in business and in life. Coach Cheri is also the creator of the highly sought-after Five Year Business and Life Planning Guide for Real Estate Professionals. Learn more about this and Coach Cheri's other products and services at www.NextLevelServices.net.

tags: property | home | real | estate

The Proper Price for Your Home

2006-10-26T00:17:00.000-07:00

by Sean Remington

Your Realtor wants to sell your home as soon as possible, for the best price. He or she will use a Comparative Market Analysis to help you determine a fair price for your home. A comparative market analysis is based on information from similar properties in the area. The analysis uses information on properties that are currently for sale, properties that have already sold, and expired properties (ones which did not sell). The current sale price of similar homes will indicate what the competition is asking. Properties that have recently sold will indicate what buyers are willing to pay, just as properties which have expired may indicate what buyers are not willing to pay.

By carefully considering these three aspects your Realtor is able to determine a "fair market value"--the price which a buyer is willing to pay and the seller is willing to receive for the property.

In the real estate world, a large group of people are looking to buy homes at any given time. These are the seller's best prospects. This ready group of buyers is wasted, however, if your house is overpriced.

While shopping for a home, buyers will visit many similar homes in their price range and measure the features of each one against the price. They decide which house offers them the maximum value for the price. Buyers do not expect a home to be a "steal" or dramatically under-priced, but they do expect it to be a fair value. If your home is overpriced and they have been shopping around and comparing properties, they will probably refuse to look at your home. You and your Realtor may know that you would sell for $10,000 less, but the buyers do not know this. As a result, your overpriced property may receive little attention.

Don't be fooled into thinking your house is worth more than someone is willing to pay for it, or that it's just a matter of waiting for the "right" buyer to show up. Surveys show that the longer a house is on the market before being sold, the greater the drop in price from the listing price when it does sell. The buying public eventually sets an accurate price. An overpriced house just sits on the market, waiting for a price adjustment before it will attract a buyer.

Consequently, your Realtor may advise you to reduce the asking price if buyers fail to surface after a certain period of time on the market. If you are serious about selling your home, you should take your Realtor's advice. If the first price reduction doesn't generate a buyer, another reduction may be necessary. The monetary value of a house is only what someone is willing to pay for it, but if the market analysis is done correctly, you will get the maximum amount--and a timely sale.

Sean Remington is a REMAX Platinum Club Member along with a Committee Ambassador - Albuquerque Economic Development. To learn more about Sean or his agency, point your browser to Albuquerque Real Estate.

tags: property | home | real | estate

Flipping Houses - Is the Party Over?

2006-10-03T19:19:00.000-07:00

by Steve Houlihan

When your cab driver starts telling you about how much money he made with his last house flip, it's time to get a little concerned. When this is combined with increasing weakness in the U.S. property market, it is time to have serious misgivings about trying to flip a house yourself. But does this spell the end for the practice of buying a property, doing a quick makeover and putting it straight back on the market?

For most people, the answer is "yes". Despite the fact that so many people have made money with this practice in recent years, the key to their success has had more to do with a very buoyant property market than skilful buying and selling and cost-effective home improvement. In a rising market, you are likely to make at least some money even if your flipping house skills are not that great.

The real problems only make themselves apparent when the market has gone flat, or even worse is declining. This is when house flippers can take a financial hit, if they have committed one of the cardinal sins such as paying too much for the property when buying, spending too much on improvements, or undertaking the wrong improvements. When the market was buoyant, these 'sins' were often covered up by the rising market.

So does that mean no-one should try house flipping any more? Not necessarily.

One thing to remember about the housing market is that the market is not always moving in the same direction all over the country. For example, even when the real estate market is bubbling along, there can be smaller cities that are taking a 'hit' because of the closure of a major employer in the area.

Conversely, even in a flat market nation-wide there will be pockets of growth, for example where a new university is being opened or a new freeway opens up outer suburbs to commuters. If you do your research properly, it is possible to find these niche areas and take advantage of them when many other investors have shifted to other asset classes such as the stock market.

Another factor is that there is always a ready market for well-presented and renovated properties. While many people fancy themselves as make-over kings or queens, the reality is that people are increasingly time-poor and would rather spend their diminishing spare time on family or leisure pursuits rather than on the end of a paint-brush.

There is still money in flipping houses . It's just harder to find, and requires real discipline on the part of the house flipper through the whole process of researching the geographic area, selecting the right property, deciding which improvements to undertake, preparing a budget, and managing the whole process in an efficient manner. Doing your homework properly is now crucial to producing a successful house flip rather than a financial flop.

Steve Houlihan is author of the book "The 10 Deadly Sins of Renovating for Profit". His website on Flipping Houses is a "must-see" resource for those who want to make money through home improvements: www.flippinghousetips.com

tags: property | flipping | real+estate

Savvy Investors Profit from Rise in Foreclosure Rates

2006-09-27T20:22:00.000-07:00

by Ryan Myers

Foreclosures experienced a startling rise this year--up 72 percent since the beginning of 2005, according to RealtyTrac. The increasing foreclosure rate is unveiling a different breed of real estate "flipper" looking to turn a profit on investment property purchased up to 20 percent below market value.

"In the midst of a slowing real estate market, rising interest rates and salaries that are not keeping pace with standard of living increases, we have seen a dramatic increase in foreclosures nationwide," said David Nilssen, CEO of Guidant Financial GroupTM. "This is not great news; however it does create opportunities for savvy investors looking to obtain properties at below market value." Nilssen cautioned that the foreclosure-investing process can be risky. "A great deal of research should be done to ensure that the investment is sound and clear of additional encumbrances that could affect the deal." Information about foreclosure properties is found in many places including foreclosure websites, legitimate third-party foreclosure listings, educational websites, private banks, auction houses, and local tax-collection agencies. The number of foreclosure listings increases every day, with the rise forecasted to continue. Foreclosures are non-traditional investment options that can provide profitable rewards when proper research is conducted.

More foreclosures emerge as interest rates climb and the 30 percent of loans that were originated with adjustable-rate mortgages significantly increase. Those faced with increasing mortgage payments are attempting to liquidate in a market where housing inventory is increasing and the buyer pool is shrinking. The softening market and the rise in interest rates and accompanying payments may spell disaster for many people who could be forced to sell at a loss out of necessity. Yet, as with most cases in investing, one individual's loss is another's gain. As homes become available at up to 20 percent below market value, large profits can be realized by savvy investors. As the real estate market shifts gears, a growing number of investors are learning that they can utilize their IRA or 401(k) funds to make these types of investments. Based on IRS law [IRC § 401 (M)] it is perfectly legal to use retirement dollars for these and many other types of investments within an IRA - all that is needed is someone to setup the structure to do so. Once the structure is established, investors can gain checkbook control of their retirement funds and begin making investments that yield higher and more secure returns than those typically yielded within the stock market.

For more information contact Guidant at 888.472.4455 or www.guidantfinancial.com.

About Guidant Financial Group

Guidant Financial Group, Inc. is a non-traditional financial services company focused on delivering unique solutions to the investment community. Using customized and conforming structures, Guidant helps investors convert their existing retirement plans to a self-directed IRA or self-directed 401(k), which gives them the freedom to make non-traditional investments in real estate, franchises, businesses, tax liens and much more.

A seasoned marketing professional, Ryan has spent the last 10 years developing strategies, best practices and setting strategies to make companies reach their markets more effectively. Having worked in both non-profit and for profit industries, Ryan consistently strives to meet the needs of consumers by setting higher standards for excellence, and positioning companies as the industry leaders.

Tags: real+estate | property | investor | foreclosure

Dreaming of buying property abroad?

2006-09-24T06:58:00.000-07:00

by Neil Cooper

Property in Spain, Ah yes, you remember the dream people had years ago about owning property in Spain, most discounted the notion, it was only for the wealthy, well time marches on, our attitudes change and most of us are a bit wealthier.

It is a fact that those who bought 20 years or even less ago are smiling and rightly so, overseas property values have soared, enabling many to purchase additional properties even in other countries, those who procrastinated must surely rue the day they hesitated and pulled back from the brink of opportunity and overseas property ownership.

Many people helped by rising property values in the UK have taken the plunge and invested in property in many parts of the world, and no wonder, with emerging countries showing property values rising almost daily. The eastern bloc countries show great promise as do more familiar countries such as, Morocco, Montenegro, Brazil, Dominican Republic, Bulgaria and the not so well known, Lithuania, Latvia, Ukraine, Belize etc.

The world these days seems a lot smaller than 20 or so years ago, what then seemed a dream is now everyday reality for many and more join daily. Statistics show that Britons purchase 1,000 homes a week overseas, with the old favourite Spain accounting for about 80% of sales, it's not hard to see why, with 300 days of sunshine a year, good infrastructure, excellent health service, lower cost of living, superb beaches, outstanding golf courses, restaurants to suit every taste and a quality of life style all contribute to make the country what it is.

But what of the other countries? Brazil offers some of the best beaches in the world and is only now being discovered by investors, Bulgaria offers excellent property for very little money, Latvia with price increases of 3-5% per month in some areas. Investors with say £50,000 could buy several opportunities and £100,000 could buy you an impressive portfolio of property investments worldwide.

Perhaps people disappointed with the UK pension fiasco in recent years should look no further than overseas property to provide financial independence in the future. Ah yes and back to the future, and dreams, are you going to just think about buying property abroad or will your dreams become a reality? Astrid Alauda said 'Dreams are free, so free your dreams' I couldn't have said it better.

For more information about property in Spain, overseas developments or buying property abroad please visit www.overseasconnections.co.uk

Tags: property | spain | real | estate

Mortgage Refinancing

2006-09-18T21:08:00.000-07:00

by Dennis Estrada

Mortgage Refinancing refers to switch from one mortgage to another to obtain substantial benefits. We are surrounded with huge number of mortgage lenders. Each mortgage lender promotes special mortgage options on a regular basis. To be able to know which works best for you, you need to understand how Mortgage Refinancing works.

The main reason to switch a mortgage is to lower the monthly mortgage payments. Mortgage Lenders offer special low interest rate, when you switch or transfer your mortgage to them. The market also determines the interest rate. When the interest rate goes low, it may be a good chance to switch to a better mortgage.

The life of the mortgage is divided into a number of terms. For example, 1, 2, 3, 4, 5 year term are common. When the term of the mortgage matures, the borrower seeks Mortgage Refinancing. The borrower has no choice to refinance the mortgage in this situation.

The borrower can even switch from monthly mortgage payments to biweekly mortgage payments. There are more pay periods on bi weekly mortgage payment than monthly mortgage payment. The borrower pays off the principal twice faster with bi weekly mortgage payment. By the way, the principal is the total amount of mortgage.

The borrower can also switch from fixed mortgage rate to adjustable mortgage rate, or vice versa. Using the fixed mortgage rate, the borrower enjoys the stability of the same mortgage payment on each pay period. For example, the interest rate is low more than usual. To take advantage, the borrower refinances the mortgage with a low interest rate, and locks the mortgage with long mortgage term. The borrower pays less mortgage payment even though the interest rate goes up over the life of mortgage term.

Using the adjustable mortgage rate, the borrower pays a lower than prime interest rate. However, the interest rate goes up or down. The borrower experiences negative amortization when the mortgage payment is not enough to pay off the interest. At this point, the borrower loses equity. To combat negative amortization, the borrower pays higher mortgage payment on the rise of the interest rate.

To reduce the principal and increase the equity, the borrower can elect to pay additional on top of the current mortgage payment. So, the principal gets paid even sooner. At the same time, the borrower pays off the mortgage earlier.

The borrower pays the application fee, title search fee, and appraisal fee on mortgage refinancing. The application fee is the cost of processing the mortgage application. And, the title search fee makes sure that mortgage applicant is really the owner of the property. Finally, the appraisal fee tells the fair market value of the property.

Mortgage Lenders give the borrower many mortgage options. With the proper use of mortgage options, the mortgage options reduce the interest over time, increase the equity, and decrease the mortgage payment. Always, be on the lookout for a better mortgage. There may be a better mortgage that you can take advantage.

Dennis Estrada is a webmaster of mortgage calculators and mortgage dictionary website that gives access to many resources, and calculators for mortgage.

Tags: mortgage | refinance | property | real+estate

A Step by Step Guide to Buying Land in Mexico

2006-09-15T20:56:00.000-07:00

by Christine Harrell

If you're considering getting away from the madness of the 9 to 5 and buying land in Mexico for a taste of the good life, you're not alone. Thousands of Americans have made Mexico their home and are now enjoying the relaxed pace of the "manana" lifestyle. Not only is the climate ideal, the price of real estate is only a fraction of comparable real estate in the United States. As an added bonus, buying land in Mexico and particularly the area of the Caribbean Costa Maya along the Caribbean Sea is considered by investors to be one of the hottest real estate investment opportunities in the world today.

Though living in Mexico seems fantastic in theory, what may seem challenging are the steps between dreaming about buying land in Mexico and actually holding the title in your hand. However, buying land in Mexico is actually fairly simple and the journey toward making it your own can be as exciting as spending the first night in your new tropical beachside casa. This article will take you step by step through the process of buying land in Mexico so that you can plan your move to the lifestyle you desire.

Apply for a passport: As soon as you begin entertaining the idea of buying land in Mexico, apply for a passport. In the past, a passport wasn't required for entering many parts of Mexico but today you'll want to make sure you have one to prevent being turned back when it's time to take a scouting trip. Whether or not you end up buying land in Mexico, you'll have a reason to take a great vacation.

Identify your general areas of interest: Mexico has a wide variety of beautiful landscapes and ambiances. You'll need to decide if the right place for you is a quiet slice of Caribbean beachfront like in the Costa Maya, a condo in the midst of a tourist hotspot like Cancun, an ancient yet modern city like Merida, or a place were there are no ex-pats for miles around where you can truly immerse yourself in the Mexican culture.

Choose a real estate agent: In the US you might browse through property listings online, find one you love, and then contact the real estate agent representing the property. However, when buying land in Mexico it's important to find a reputable real estate agent before you fall in love with a property. There is no such thing as a real estate license in Mexico, meaning that anyone, regardless of their intent or their knowledge of real estate, can conduct real estate transactions. The first step to buying land in Mexico is to identify a real estate agency with a solid reputation and a lot of experience selling real estate to non-Mexican nationals.

Visit the area: Though you may be tempted to purchase a property site-unseen, it's best to go and visit the property and scope out the surrounding area before buying land in Mexico. If you're buying land in Mexico in a remote area, make sure that the area is zoned for housing and that there are solutions for water, power, and phone. Ideally, you should spend at least a week or more in the area to get an idea of what life will be like while you're staying in your new vacation home.

Hire an attorney: Once you decide on a property, there are a number of paper work items that need to be handled. A good real estate agent will work with you to complete each of these steps. The most important of these steps is securing the title to the home. Even if the real estate agency has its own lawyer, it doesn't hurt to have a second review the paperwork. If you're buying land within 50 miles of the coast or 100 miles of a national border line, you'll need to set up either a Fideicomiso or a Mexican corporation in which to own the property. You'll also need the lawyer to double and triple check that the title is clear and that the area is zoned properly. Even if you're an expert on Mexican law and buying land in Mexico, it's important to have a lawyer from Mexico scrutinize the documents carefully.

Obtain a Visa: If you'll be living in Mexico for 6 months or more at a time or will be bringing a foreign plated car, you'll need to apply for an FM3 visa. These visas are very easy to obtain and will grant you non-immigrant status in Mexico. Don't confuse the FM3 Visa with the FM2 Visa. The FM3 Visa allows you to keep a foreign plated car in the Mexico indefinitely while the FM2 requires that you sell the car out of the country after 5 years. Also, with the FM3 you can come and go as you please unlike the FM2 where you can only leave Mexico for a total of 18 months during a 5 year period.

The Mexican government welcomes foreigners buying land in Mexico and has made the process fairly simple and straightforward to encourage foreign investment. Mexico is growing rapidly and property values are climbing sharply. For now anyway, buying land in Mexico is still unusually affordable and thus a smart choice for an investment opportunity as well as a relaxing vacation home.

Author is a writer for Caribbean Trust Real Estate who specialize in offering available land in Mexico. For more information you can visit http://www.Beaches-R-Us.com

Tags: mexico | property | real+estate | vacation | property

In A Rush To Buy? Don't Skip The Home Inspection

2006-09-14T12:34:00.000-07:00

by The House Team of Mortgage Intelligence

What a ride! We've had one of the longest, hottest housing markets in memory - with keen competition for homes in all price brackets. Everyone has a story about a home that has sold for considerably more than the original asking price. It's a seller's market. And anxious buyers - worried about losing a bidding war on a property that seems perfect - may feel pressured to make an unconditional offer - which often means skipping the professional house inspection.

Traditionally, home inspection was one of the common, accepted "conditions" on any offer. Home buyers had a specified period of time to conduct a home inspection, and the deal was dependent on a satisfactory outcome. But in a seller's market like the one we're experiencing, many vendors have the luxury of insisting on unconditional offers. Those who want to pause long enough for a house inspection can be left behind. But a professional house inspection is an important step in the purchase process. Serious buyers will sometimes hire a "pre-offer inspection" to check the condition of a home.

Armed with that knowledge, the buyer may have the confidence to make an informed, Unconditional offer. Most house inspectors will encourage you to accompany them on their visual inspection of the home. Do it! It will be the most valuable house tour you'll ever take.

Every inspection, of course, should also include a written report. In general, inspections are visual and look at the house both inside and out: a great reason why the inspection should take place in daylight. Outdoors, expect a close examination of exterior features like roofing, flashing, chimneys, gutters, downspouts,decks, walls, and foundations - including grading and drainage away from the house. Inside, the inspector will be looking at all the house systems, including electrical, heating and cooling systems, ventilation and plumbing.

The inspection should also include a close examination of structural features, floors, ceiling and wall finishes, and the condition of windows and doors. If the home has a swimming pool, a septic system, or significant landscaping features, you may want to either look for an inspector with specific expertise, or bring in an additional specialist. Also, if you have a wood-burning fireplace or stove, look for a house inspector who is certified by WETT (Wood Energy Technology Training).

A professional house inspector will be formally trained, experienced and impartial: that is, he or she will not have a stake in the outcome of the inspection. For example, under their professional code of ethics, home inspectors are not allowed to be associated with any other construction or house related trade. Many inspectors, of course, have valuable backgrounds in civil engineering, the construction trades, or even specialized areas like heating systems.

How do you find a good house inspector? Referrals are a great way to begin. Or, you can look up an accredited member of the new Canadian Association of Home and Property Inspectors at www.cahpi.ca. The initials "RHI" denote the highest accreditation of the Association.

When the inspection goes well - as they generally do - you get some important information about your home, and you can feel assured that you're moving into a home that's in good condition. In the worst cases, buyers may want to re-negotiate or back out of the deal based on the inspection's findings. Follow your instincts; if you're worried about the condition of the roof, for example, be wary about making an unconditional offer without a prior house inspection.

Though prices vary, a typical house inspection will set you back about $300 - $500 and three hours. If that sounds like a lot, remember that your home may be the most expensive and most important purchase you will ever make. And there's no money-back guarantee.

The House Team is commited to providing quality information to help people make informed decisions about their mortgage financing needs. http://www.thehouseteam.ca

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Looking for a free mortgage calculator? Click Here Mortgage Calculator Ontario

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Did Your Real Estate Agent and Mortgage Company Dupe You Into Committing Loan Fraud?

2006-09-03T05:08:00.000-07:00

by Rob K. Blake

Have you ever wondered if your agent and loan officer are doing something that could get you into trouble?

You should!

Buying a house is a complicated process and many times your lack of insider knowledge can get you in hot water.

Shouldn't the agent and loan officer be putting your best interest first?

Of Course!.....but unfortunately, it does not work out that way. The deal/transaction gets put first.....the part where the agent and loan officer both get paid. Once the agent and loan officer have started working on a transaction, they don't want anything to get in the way of the commission when it closes. It may be in your best interest to get out of the contract and not buy that home but the agents and loan officers are lazy and don't want to do the right thing. They want to do the easy thing. In this case, the easy thing is fraudulent and unethical.

I know while you are out looking at houses you have a million things to think about. In my experience, the inspection is something that can really be confusing if you don't know how to handle it. More importantly, you will be committing loan fraud without the proper counsel.

Usually, after you write a contract on a home and it has been accepted, you as the buyer have a home inspection done. The inspection is different than the appraisal. The appraisal is done to establish the value of the home. Appraisers will inspect the home also. The appraiser will measure rooms to verify square footage and note the condition of the home while they are in there. If they find any major problems that affect the soundness of the home, they will report that in the appraisal. The appraisal is submitted with the other loan documents to the lender.

Even though the inspection is not a requirement for the loan, every buyer should get an inspection. You as the buyer need to know if the property is in satisfactory condition and therefore worth what you are going to pay for it. You also want to make sure the seller isn't hiding anything from you. Buying a house and then having to spend hundreds or thousands of dollars fixing things the seller didn't want you to know about is not the dream of home ownership most people think of.

So, if the inspection report is not a part of the loan process....how could you commit loan fraud?

If there are problems identified from the inspection the buyers can either decide they do not want the property in that condition or request the sellers fix the problems before closing. The agents must have the buyer and seller agree in writing on any repairs inside the contract. Unfortunately, the agents like to have what is called "side agreements". A side agreement is an agreement that is not part of the real estate contract. The contract should be agreed upon by all parties and should have all information true and correct. With a side agreement, there is information that is withheld from some of the people involved in the transaction. The lender who is loaning you the money to buy the home and the title company who is supposed to be the gatekeeper for all the documents to transfer title correctly are the one left out.

Let's say there was a problem with the furnace on the home you were under contract to buy. You tell your agent you want the furnace to be replaced because the inspection report says it is unsafe. Your agent already knows the seller does not have the money to fix the furnace until after they get the proceeds from selling the house. How does your agent know that? Agents talk to each other all the time without you knowing it. Most agents technically work for the seller. That means they share information with the seller's agent all the time. They work together to get the deal done and if it is not in your best interest, then so be it.

The seller does not have the money to make the repairs before the close. The agents will have the you and the seller sign a side agreement stating either:

1. the seller will write you a check after the close for the repairs or 2. the seller will hire a contractor for the repairs after the close

The problem with these side agreements is they always favor the seller and more importantly, they are loan fraud.

For example, the inspection states the furnace needs replacing. Your agent is supposed to present the seller's agent with a contract amendment stating the seller will have a licensed contractor install a new furnace before closing. The seller will either agree to that and sign the contract amendment so it becomes part of the contract or not agree to that and you now have a decision to make. Do you want to buy a house that it supposed to be in good working order at that price when you know now from the inspection it isn't?

But like we discussed earlier, the agents both know the seller does not have the money to pay for the furnace. The agents are looking at losing their commissions and the seller is looking at losing the proceeds from the sale. So, they have you sign a side agreement. The seller supposedly will give you a check after close for the furnace or have someone replace it after the close.

This happens all the time. The agents and loan officer involved in the transaction would sooner cut off their right arm then lose a commission because of a faulty furnace. Here is what could happen to you ,the buyer, when a side agreement goes wrong. 1. The seller never gives you any money for the furnace or they give you a check that bounces.

2. The furnace is installed after the close by the seller's choice of contractors. Of course they will want to get the cheapest contractor they can find because it isn't their house anymore. The furnace get installed incorrectly or during installation something else in your new home gets destroyed and you have to pay for that since it is your house now.

3. The lender finds out about the side agreement and now calls the note due and payable.

If running the risk of depending on the seller and the agents for money isn't bad enough, think of it from the lender's side. They are the ones lending the money for your new home. They have a right to know that the collateral is not what is represented in the contract. Even though the inspection is not a part of the mortgage process, the lender doesn't contract to lend on a house that needs expensive repairs. Not only did you overpay but the lender get cheated too...it is called loan fraud.

Just because I mention the agents most of the time does not mean the loan officer is off the hook. They are supposed to protect the lender from any fraud and in the case of side agreements. What they are basically saying to the agents is, "I don't want to know about what you are doing just get it done so we all can get paid". The loan officers are just as guilty as the agents.

The Maine Creditor Update which is the newsletter for the Office of Consumer Credit Regulation has an article in it from its September 2004 issue.

It states, "Buyers and sellers of residential real estate will sometimes agree to "side deals" in which money changes hands to cover the cost of needed repairs or defects discovered on the property. However, if these adjustments are substantial enough to affect the value of the residences being used as security for loans to the buyers, and if the side deals are not reflected in the HUD-1 closing statement, then all parties to the transactions (including the settlement agents and the real estate agents) should carefully review their participation to determine whether legal or ethical principles are being violated.

In any FHA-insured loan, the buyer, seller and settlement agent each sign statements attesting to the accuracy of the figures being used. Knowledge of a substantial side agreement not reflected in the HUD-1 would almost certainly violate these representations. Maine law does not contain specific provisions prohibiting undocumented side agreements, such as the one enacted in Alabama which states that a real estate agent may lose his or her license for "misrepresenting or failing to disclose...the true terms of a sale of real estate" (Ala. Code, sec. 34-27-36(a)(21). However, parties to Maine transactions should not assume that the absence of a state law here means that such deals are permitted on mortgages headed for the secondary market, especially when the loans will be held or guaranteed by government or quasi-government entities."

If you are going to agree to anything you always do it in writing in the contract. That is what contract amendments are for. Real estate is all about the contract. You can't un-ring a bell. Even though the only thing the lender saw was the appraisal and it didn't uncover a faulty furnace, the problem is now out in the open and you have to deal with it. You are ultimately going to pay for the home and keeping a level head about right and wrong is important.

Do not let anyone talk you into signing a side agreement. You now know that it is not in your best interest and it is unethical and fraudulent.

Tips

1. Always get your inspection done early. Make it one of the first things you do after your contract has been accepted. The agents usually try to push this one until the end because they are already afraid something will be wrong and they figure the farther you are down the road, the more you will agree to things that are not in your best interest. Get it done as fast as you can. 2. Don't use the agent's inspection company or anyone they suggest. Find one on your own. If you now know that agents will use side agreements not in your best interest, then you also should know that they will use inspection companies that won't deliver a true picture of the problems with the home just get the deal done.

Good Luck in your House Hunting!

Rob K. Blake, author of the book Mortgage Secrets Exposed! and host of The Mortgage Insiders Show, has been teaching folks for the last 15 years all the tips and tactics to save $1,000s when shopping for a mortgage. For more home loan tips, Visit his website www.themortgageinsider.net .

How To Make Money On No Equity Properties

2006-08-28T20:27:00.000-07:00

by David Gass

As a real estate entrepreneur, you will often run against problems with no equity properties. This is because you will be buying property from homeowners who sell foreclosed property. This is the reason why most real estate investors do not buy no equity property. The only way to deal with it is to persuade the credit lending bank to take less than the amount owed to it.

Making Profits On No Equity Property Discussed below are some ways to make money on no equity properties.

1. Deal directly with the Homeowners. Until the time the court orders the foreclosure of the property, the banks are not the owners of the home. You need to deal directly with the homeowners to buy the property, and then buy the mortgage from the bank to transfer the ownership of the property to you.

2. After getting in touch with the homeowners, get them to sign a release of information form that will allow the bank to talk to you about the homeowners' mortgage.

3. Now you need to convince the bank to discount the mortgage. Once you can prove that the property is in bad shape and needs extensive repairs, and the owner is unable to repay the mortgage loan, the bank will probably agree to lower the amount. You may need to negotiate a little, but most banks do not want real estate on their hands. They just need some way to recover the money owed.

4. Once you have bought the property, you can sell it for a higher amount. The bank is relieved to have the real estate off its hands and get back some of the loan. You have made a profit and the buyers of the house will probably have some equity on it.

Why Homeowners Will Want To Sell To You A no equity property is a liability for the homeowners, especially if they are making a distressed sale. The options they have are limited. Paying off the mortgage is difficult. Renting out the property means spending money on maintenance and repairs. Foreclosure means a bad credit record. Short sale could invite a huge tax penalty.

If you make a reasonable offer to the homeowners, chances are that it will be accepted. Since what you pay will get them more money than what the options above could get, they will accept your terms. Then you will draw up a sale contract and discuss it with the bank.

With a little creativity and out of the box thinking, you can convert a no equity property into a money making proposition. So the next time you come across a no equity property, do not walk away from it. It may be your chance to make significant profits.

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com.

Know When to Hold 'Em: Struggling Real Estate Markets Create New Opportunities for Long Term Investors

2006-08-20T19:58:00.000-07:00

by Kevin Ramsey

Know When to Hold 'Em: Struggling Real Estate Markets Create New Opportunities for Long Term Investors

I think we can make it official: the Real Estate Bubble has officially burst. Real estate data from several of the largest cities in America show home values steadying and, in some areas, beginning to decline. While this is bad news for the average homeowner, it's even worse news for professional real estate investors that buy and sell real estate for a living. "Property Flippers", as they are often called, purchase, renovate, and resell properties for a profit. They rely on rising and/or steady home values to maximize their return on investment, or ROI. While they have enjoyed rising values in most cities over the last 5 years, many are now faced with the reality that their current inventory may draw a significantly reduced asking price compared to what they anticipated selling their properties for when they purchased them. In Cleveland, OH, for example, the average home price has declined 3% over the last year. That may not seem like a significant decrease in value, unless you are the investor that purchased a $200,000 home counting on a modest 10% ROI (or $20,000), and now you are looking at making $14,000 for the same time and effort.

So is this a bad time to invest in real estate? This investor says no. It is a great time to invest of you keep a few things in mind:

Invest for the Long Term In a down market, good investors return to the investing principles of yesteryear. Simply put, invest for the long term. The idea of buying, fixing, and "flipping" property was made popular during the years following the depression. The idea of investing for long-term profits is as old as mankind itself. While buying and selling property provides the potential rush that can only be created by the prospect of "instant cash", I think it is safe to say that the Hilton's made a wise decision by hanging on to the Waldorf for a few years! Now is the time to buy low (there are plenty of property owners out there with adjustable rate mortgages who are just dying to sell; and the foreclosure rate is really showing signs of life these days as well!) and hold on to your property (ies). As rates go up and credit scores go down, more and more qualified, able-paying renters will be opting to rent rather than buy. They are ready, willing, and able to pay down your mortgage balances and keep your investment cash flowing until the real estate market recovers and it is time to sell.

A New Market Yields New Opportunities As I touched on in the previous paragraph, a down real estate market provides increased opportunities to purchase real estate from owner occupants at a discounted rate. Why is this important? The number one mistake inexperienced investors make is to exclusively search for properties that are being sold at a discount only because they need extensive repairs. Learned investors know to look for deals where real estate can be purchased at a discounted rate even though little to no repairs are needed. There is an old saying in real estate: Situations Make Deals. Over the last several years, many homeowners (I admit, I am guilty) have used interest-only or adjustable rate mortgages to purchase properties that were previously priced out of their price range. They are now are faced with either refinancing these properties or selling quickly to get out from under them as rates rise. Why does this matter to you? Properties purchased from owner occupants normally require significantly less work than properties purchased from banks or estate sales. You may be able to purchase a property and immediately rent it without spending additional money to fix it up. While you may pay a little more for this type of property than you would a foreclosure or estate property, you will make up for it by generating immediate cash flow and by realizing better long term appreciation, as these properties are often times located in stronger areas. Many investors look to make a deal with another investor who is forced to sell, which I suggest you avoid at all costs. Unless it is an unbelievable deal, buying properties from other investors is normally a bad idea. Investor-owned properties are managed and maintained in a way that will maximum cash flow. This normally means that the materials used in the renovation process (cabinets, flooring, roofing, furnaces, etc.) and the craftsmanship used to install these items will be second rate and will need to be replaced sooner. If you are investing in residential real estate, it will more than likely be cheaper in the long run to purchase properties from owner occupants.

Get By With a Little Help From Your Friend - Your Accountant! Every once in a while, we could all use a little help when the taxman cometh. A down real estate market creates opportunities to purchase properties at a discount (creating instant equity) and still depreciate them to help reduce your tax obligations. Simply put, if you are able to purchase a property and save $2000 a year on your taxes for 10 years, that is a $20,000 non-cash return on your investment. A non-cash return is just a good as a cash return because it increases the amount of cash in your pocket. Assuming the market recovers within those same ten years and you break even on the property itself by renting it out, you will be very happy with your investment. The combined benefits of tax savings, appreciation, and the equity created by paying your mortgage down with someone else's money for ten years will all work together to create a solid long term investment.

Let's Make a Deal A down real estate market often times signals a down economy. When homeowners have less cash to spend, it affects many other industries, especially the mortgage and home improvement industries. Lucky for us, investing in real estate requires a lot of help from both of these industries! When home sales and home improvements projects are down, mortgage brokers and contractors are looking for cash any way they can get it. This is a great time for the savvy investor to save money by shopping around for the best deals. Mortgage broker fees and construction labor costs represent a significant percentage of the costs incurred when buying and renovating investment properties. If you have cash and credit in a down market, you have a great amount of control over what you are charged for these services. Large home improvement stores are also forced to lower their prices on materials and goods to prevent their inventory from sitting on their shelves. A down market is a great time to save big, which will only increase your ROI when you are ready to sell a few years down the road.

In summary, a down real estate market does not mean that investing in real estate is a bad idea. It means that, like any business on earth, nothing stays the same forever. A changing real estate market just means it's time to change your approach and adopt new strategies. If you do this, you will be successful in any business.

Kevin Ramsey

Kevin Ramsey is the CEO of REV Holdings, LLC, publishers of Lienfax.Com. Lienfax.Com sells real estate related reports to consumers that are considering buying and/or selling a home. Lienfax.Com also provides instant contractor background checks, instant home value reports, and free detailed school reports on over 90,000 public and private schools across the U.S. Kevin has also bought and sold over 300 properties in and around Northeast Ohio over

Personal Branding Techniques for Real Estate Agents and Brokers

2006-08-15T21:50:00.000-07:00

By Dan R. Vella

A key principle of marketing is to find something unique about what you offer as the basis of your sales message. Even if what you offer is a commodity, there is always one thing unique in your business -- you.

A big error made by many Real Estate Agents and Brokers is to try to develop an institutional image like most big companies. People do not like to do business with institutions; they like to do business with people.

In advertising terms, branding is the "image" created in the minds of people when they see or hear a name, product or logo. Companies invest a lot of money in creating and maintaining their brand, but the Internet has sparked a new trend called "Personal Branding".

Personal branding isn't only important for promoting a product, business or political cause, but also for promoting yourself for advancement within your own organization. It involves developing your personal reputation.

Branding can be done to any product, or any person. Before undertaking an exercise in personal branding, however, consider your distinctive strengths and abilities and what they offer the market place. Traditionally personal branding was for sporting celebrities who gained enormous coverage and following through their sporting prowess. Movie stars have also had celebrity status and association since movies began.

A personal brand is about creating strong, favorable associations in the minds of people that you encounter. If you don’t actively do this, they will still make associations. Therefore, it may be better to be proactive and undertake the branding exercise for yourself, you cannot control what they think but can give them some information to assist with the associations.

WHY BRANDING OURSELVES?

- Places you in a leadership role
- Enhances prestige
- Attracts the right people and right opportunities
- Adds perceived value to what you are selling
- Earns recognition
- Associates you with a trend
- Increases your earning potential
- Differentiate yourself from the competition
- Position your focused message in the hearts and minds of your target customers
- Confers top of mind status
- Increases authority and credence of decisions

HOW DO WE BRAND OURSELVES?

Like any branding exercise, the key to personal branding is having a good product, one which you understand and pitch to the right market. The first step in personal branding is knowing who you are, find out what strengths your brand possesses and how these strengths can help you. Personal branding is not about presenting a façade to the public; a poor product will not stand up to market scrutiny. This is also a choice of brand elements, people you deal with, the look that you have, and how you conduct yourself. Once this has been done, determine what you are going to offer. As a product what do you do, what need does the product of you satisfy in the market. Next figure out the position you will take in the audience of your mind. What unique space do you wish to occupy and what unique associations do you want people to recall when they think of you?

Finally, once you have established the first three steps, manage your brand over its lifecycle. That is keep visible, be consistent and be yourself. According to Montoya, the well-known personal branding guru, the key to managing your personal brand is word-of-mouth (WOM), the most trusted form of communication.

How does one go about building a personal brand? Recognize your personal strengths and gifts! Think about how you best connect with people, consider what your target audience needs and wants, identify the value you deliver to meet those needs and wants, and communicate in a way that reaches your constituents in their hearts and minds and via the channels that work best for you

Functional associations are important such as timeliness, quality, dedication; as are emotional associations like inspiring, leadership, being an innovator.

The three C’s of personal branding are clarity, consistency and constancy.

Clarity deals with being honest about yourself and your strengths and promises of value attached to your personal brand and being clear in the way you communicate them. Often, for simplicity, you must focus on one or two aspects that are most vital and focus on communicating them. Think about the things you associate with prominent artists or mangers, and they are unlikely to be complicated.

Consistency is keeping things consistent for the customers. This does not mean staying stuck in the past, but just not undertaking drastic changes. Coca Cola have had a consistent message for 50 years; the message evolves continuously and is not stagnant but is consistent. Artists like Madonna change every three or four years, but there is a consistency to the change.

Constancy means being visible with your brand and maintaining an on-going level of awareness in the marketplace. Oprah Winfrey is visible constantly, and although most of people do not have the visibility or exposure of Oprah, they can still be visible in a smaller audience. There is no point trying to build a brand image quickly to coincide with a new exhibition or performance you may have coming up – brands take time to build in consumers minds.

A FREE PERSONAL BRANDING TOOLKIT FOR REAL ESTATE PROFESSIONALS

NetReal.net, a company noted for its template-based Real Estate Web design solutions, offers a Winter Holidays Gift for Real Estate Agents and Brokers – the Personal Branding Toolkit: http://www.netreal.net/personal_branding.php
The Personal Branding Toolkit contains the “Essential Marketing for Real Estate Professionals” ebook and 17 Real Estate Reports and the tools to personalize them with your name, contact info and photo.

NetReal’s editorial team put together the top 25 highest- rated Real Estate marketing articles of 2004, and created a must-have e-book - “Essential Marketing for Real Estate Professionals”. The ebook covers Marketing 101 , Network marketing, Personal Marketing, Customer acquisition and retention, Telemarketing & Direct Mailing, E-marketing.
You can personalize this e-book with your data and send it to your contacts, absolutely free of charge. This is a great way to offer a helpful gift to your colleagues and partners.
The “17 free Branded Reports” allow you to create your own branded Real Estate reports (for buyers, sellers, investors, movers) with your contact info and photo/logo and an exquisite design. Distribute them to your prospects or clients as e-docs or printed materials, or upload them on your website. Show your professionalism with these great tools to acquire new clients.

The Personal Branding Toolkit for Real Estate Professionals (http://www.netreal.net/personal_branding.php) is free for everyone.

Dan R. Vella is marketing editor for NetReal.net. NetReal.net (www.netreal.net) is a privately-owned company providing web-based and offline software solutions for real estate industry, focusing especially on the low-cost end, and empowering the real-estate agents through the use to Internet technologies with the most affordable costs. For more details: http://www.netreal.net

High Profit Real Estate Investing--make A Good Deal Every Time!

2006-08-12T18:47:00.000-07:00

By Richard Odessey

Knowing what a Good Deal is – Is the Key to Success in Real Estate.

Knowing and being able to negotiate good real estate deals every time is the key to real estate investing success. What to look for, and how to calculate your profit, cashflow and risk exactly and then evaluate the deal is revealed. These techniques apply to all real estate investments including foreclosures, short sales, rehabs, flips, muliti-family, lease option and owner financing.

Dear Investor,

Take this little survey: The most important key to Real Estate Success is:

1. Finding Motivated Sellers
2. Funding Your Deals
3. Negotiating
4. Knowing a Good Deal when you see one.

Yes all of them are important. And if you answered #4 – you're right on the money. Why, because if your deal is a not good one, all your other skills and marketing and power will not make you money, and may even lead to disaster.

On the other hand, if you can unfailingly target good deals, you will always be successful and all the other skills and your marketing methods will serve to increase your success.

It's a lot easier to state the question than give the answer. Why?

SO... WHAT IS A GOOD DEAL?

It's a lot easier to state the question than give the answer. Why?
Because it depends on many factors like:

> Market value and purchase price
> Expenses, carrying costs, repairs
> Cashflow and profit
> Holding time
> Loan terms
> Risk factors
> And more . . .

And most importantly, it depends on the type of deal you're doing. For example, if you have a loan on a property that you intend to rent or sell on a lease option, the terms of the mortgage, future tax increases, and current area rents are critical to consider in insuring a positive cashflow. However, if you are planning to do a short rehab job, and sell or just flip to another investor, rental income is irrelevant as are future tax increases.

IT'S WHAT YOU DON'T THINK ABOUT THAT CAN GET YOU

The thing that trips up many investors, is that in our enthusiasm to do a deal that we've found, we don't take into consideration "hidden" costs.

For example, if you're doing a renovation and you've done your due diligence on contractor costs, have you also considered your carrying costs such as mortgage payments, utilities, etc. not only during the renovation, but also the time it will take to sell and close with a new buyer?

Or if you're using a realtor to sell the property, have you calculated the effect of a 6-7% commission and the closing costs the seller will pay on your bottom line. A 10% profit margin can shrink pretty quickly to zero under those circumstances.

READ THOSE LOAN TERMS CAREFULLY

Or have you taken into account, not just your loan to value ratio on the property, but your investment to value ratio (e.g., the total of all outstanding loan balances plus the additional funds you've put in from your own cash or borrowed from your home equity line or friends and family)?

And on the income side, have you calculated how long you should hold the property to receive a significant profit from the pay down of the mortgage. With a new 30 yr loan, you may have to wait 5-10yrs to get the same pay down you'd get after a few years from a 30yr loan that's been seasoned for 10 years.
And did you carefully read the note contracts to take account of adjustable rates and pre-payment penalties?

CHECKLISTS AREN'T ENOUGH

A number of courses and real estate gurus will give you checklists. That's helpful in not forgetting something, but it doesn't help you with the laborious and complex task of putting all the numbers together.

There's just something about working with the actual real numbers, that brings the reality of the deal into actual focus. Our hopes and wishes dissolve before the actual profit and loss calculations.

Moreover, the numbers can pinpoint the weaknesses in a deal, and point the way to a solution. No mere checklist can do that.

WHAT ABOUT RISK?

I think you'll also agree that a Good Deal, is not just High Profit, but also, most importantly Low Risk. Many a dream of a golden future has come crashing down because some little thing went wrong.

Many a would-be mogul, is now working at a 9 to 5 because their killer deal was wrecked by an unforseen glitch. This is what we mean by high risk.

The successful investors do deals with low risk. Deals that are so robust that even if almost everything went wrong they'd still come out with a profit.

BUILD IN A SAFETY MARGIN

For example, suppose you have a rental with a positive cashflow. Is your cashflow high enough or your option payment big enough, that even if you had to evict your tenant for non-payment and it took you 2 months to fill it with another cash-paying customer, you'd still come out ahead?

Or, is your investment to value so low that even if you had to offer your buyer a big discount for a quick sale, you'd still walk away from the closing table with a fat check?

In real estate things can and usually do go wrong. It's Normal. So, wouldn't you like all your deals to have these kinds of safety margins?

FIXING THE PROBLEMS WITH YOUR DEAL

Now, if you knew in advance that your risk was too high, or your cashflow was too low, or your profit over the life of the deal wasn't enough, you'd want to think of solutions.

This is what is meant by being a "transaction engineer". Find the solution, fix the problem, test it on the numbers, and then negotiate it into the deal.

And if you can't find a solution (but there always is one) or the seller won't accept it—NEXT!

A RISKY DEAL IS NEVER WORTH DOING!

I can tell you from real experience, a bad or risky deal is NEVER WORTH DOING—no matter how enticing the vision. The personal stress, heartache, and loss of confidence can be even more harmless than the potential financial loss. In the words of an ex-president's wife, if you are faced with doing a bad deal—Just say No!

WHAT'S THE ANSWER?

Some experienced investors have a feel for good deals, and can avoid trouble most of the time. Others only do a particular type of deal and use a rough "rule of thumb" to evaluate their risk and profit.

However, what's really needed is a "calculator" or computer program that will take in all the variables and

> Calculate the exact profit and cashflow for all kinds of deals.
> Measure and Evaluate the financial risk in the deal
> Use standard and safe criteria for what constitutes a good deal
> Suggests alternatives to fix what is wrong

A DEAL EVALUATION TOOL

We've taken tons of real estate courses and looked at all kinds of real estate software, and nothing has come close to what we as investors need. So we decided to create our own Deal Evaluation Tool.

Well after several months of testing and improvement, we now use it for all our deals—short sales, subject to, lease option, rehab, wholesaling, and even some commercial.

Since we can try out different "what-if" scenarios, it's kept us away from some real pitfalls, and helped us negotiate better profit margins. We wouldn't "leave home without it".

CONSTANTLY MEETING THE NEEDS OF INVESTORS

Well, some other investors wanted to try it, so we put it on our website. Much to our delight we now have a community of users and a users group that shares their insights about doing deals and creative ways to use the Deal Evaluation Tool.

Their suggestions, are leading to a rapid improvement of already incredibly useful tool. There is just nothing out there like it. We've also put a demo up for those investors who would like to get a feel for using it. And we hold classes for new users.

Knowing all the numbers, and having evaluated our risks with the Deal Evaluation Tool gives us more confidence in negotiating deals with sellers and more consistent high profit real estate deals.

And that's what we all want, isn't it.

Best of Success,

Richard Odessey

Richard & Michelle are experienced investors & founders of the premier site on the internet - http://www.InvestorWealth.com: training real estate investors to do high profit deals. Offering Free Teleseminars by the top real estate investors, how-to tools and kits and hands-on training with personal advice from experts from the comfort of your home

Do You Know About The Most Popular Real Estate Scams?

2006-08-09T22:56:00.000-07:00

by Jill Kane

Real estate scams are more and more popular, even though we can't see them yet. Compared to robbing a bank, stealing $200,000-worth property via a false deed or an identity theft is trivial - and remarkably safe for the thieves. Their imagination is remarkable and oftentimes we can't do much more than minimizing the damage they inflict. By becoming aware of the most common real estate scams, you may be able to protect yourself or someone you know.

False Deeds, Part 1 Most real estate frauds revolve around forged deeds. The most popular scam is using a false deed in order to get a loan secured against a property. The thief then vanishes with all the money, leaving the real owner in danger of foreclosure by the bank - oftentimes the danger is real if the owner doesn't react on the first warnings received from the bank.

False Deeds, Part 2 Another common real estate fraud is selling a property without the owner's consent. The uninhabited, recently inherited and otherwise unguarded property is the most probable target for such scams. The most inventive thieves are able to even sell the same property to several buyers at the same time. However, if they have sold it only to a single buyer, the fraud can go unnoticed for months or even a year. By that time, the "owner" is long gone, usually in another state, selling another home to someone else.

Real Deeds The false deeds are bad enough, as such scams usually hit at random and they often can be reversed after the deed is thoroughly checked. However, the problem begins when the fraud is performed using a real deed, one that was either stolen or simply taken from the owner. The sad thing is that such thieves often recruit from our family and closest friends, people we would never suspect of anything.

The most popular way is to get some kind of authorization (or truly, just a signature) from the owner in addition to a deed. This way the thief can do whatever they like without any real risk for being caught. This is an especially popular scam used against elderly people - a nurse or a family member either take a loan in the name of the elder or just force them into taking it.

Another, even more outrageous, real estate fraud is performed by unethical door-to-door loan sellers. Under the pretext of making home repairs, they force the seniors into signing some documents which are truly high-rate loan contracts secured against the property. As most seniors are unable to repay such debt, their homes are taken by the creditor (which was its goal from the beginning) and the elder is left homeless.

Defense Defending against such frauds is difficult. If the thieves use false deeds, it is possible to prove that you had nothing to do with the loan or purchase. However, if they use a real deed and/or have your authorization, this gets dicey. And taking effective legal actions is next to impossible if you sign the loan papers.

Here are some tips to help protect yourself from such scams: 1) never sign anything you haven't thoroughly read and if you are in doubt have your attorney review the documents before signing; 2) throw out any peddling loan lenders; 3) keep important documents, such as your deed, in a safe deposit box.

Jill Kane is a Webmaster and publisher of http://www.1st-Real-Estate.com

Becoming A Battle Hardened Real Estate Veteran Without All The Scars

2006-08-07T11:13:00.000-07:00

By: Chris Anderson, PhD

As part of a new web site that we just launched, www.GetPreconstructionDeals.com, I get repeated requests asking if a particular deal is good or not. While we can’t answer this for individual projects, we can certainly look at what HAS to get done by the investor to dramatically increase the odds of a successful transaction.

Step 1 is always to determine the fair market value(FMV). As a real estate investor, you can always buy properties at the FMV. My question is why would anybody want to do that? Through careful selection, you can always find properties that are priced below FMV, regardless if they are existing or if they are a preconstruction project. The best way to determine FMV is to work with someone already familiar with the area or determine yourself through local websites showing recent sales histories.

Step 2 is to then determine the market trend for the area for which there are two critical pieces: 1) is the average price increasing AND 2) is the volume of sales increasing. If both are moving in your favor, then you have the comfort of knowing that the right trend is in place to keep prices moving forward. In stock market investing, there is the saying that the trend is your friend and traders frequently observe price and volume data to confirm the trend. If a hotly priced real estate market shows signs of dropping in volume, be very careful.

Step 3 is to learn about supply, especially in the preconstruction marketplace. In some areas, there are very few projects on the books and in others, there are 15,000+ units expected to emerge within 1 zipcode, in 1 year. Same is true for investing in houses. In you are competing with a bunch of new houses that are coming on-line, then rapid price escalation may be limited. For most savvy investors, they like to see lots of demand with very little supply which is nothing more than common sense.

Step 4 is to make your OWN opinions of the macro conditions of the local and regional marketplace. So, for example, if you are a strong believer that real estate is overvalued in the target area, why would you ever consider investing? On the other hand, if you believe that market forces will continue to escalate in the market, then why would you not be actively looking? As an example, some people believe that the graying of America is just now starting to drive people to warm, more attractive climates. Even though property values are high in these areas right now, are we going to see 20+ years of additional migration to them? You have to decide for yourself because we won’t know the answer for another 20 years!

Step 5 is one of the most important risk management tools available to the investor in real estate. Each property has typically an inherent rate at which it can be rented, even if that is not your intent. By looking at rental rates, relative to the amount of principle, interest, taxes, and insurance (PITI) that you will have to pay, then you can understand the amount of cashflow that may be required to support the property. If your objective is to produce cashflow, then you need to be cashflow positive very quickly. If your objective is capital gains and the cashflow is negative, then you now understand what you may have to support on a monthly basis if things don’t work out.

Deferred maintenance then becomes our Step 6. For an existing property, how much maintenance has the previous owner neglected that you will need to catch up? Be careful here since this can be one of the major places to get nasty surprises.

And now I saved the best for last: Step 7 is to determine your own personal risk tolerance. Some new investors look at a deal and only see the positive. This is a huge mistake. EVERY REAL INVESTOR I KNOW HAS LOST MONEY IN A DEAL but they gladly will do more. Why? They understand their risk’s going in, they understand how to limit their downside, and the gains are much larger than the risks they are taking. If you were standing beside them and saw what they saw, you would gladly take the risk as well and rapidly ignore any small losses that you experience.

Hopefully this has given you a good start at learning how to analyze a potential opportunity. Obviously each of these steps requires additional work or training but they are what separate the new investor from the seasoned, battle tested veterans.

Chris Anderson is a leading authority on preconstruction real estate investing. Get his 4 day e-mail course and a 33 minute video free today! Visit http://www.GetPreconstructionProfits.com & http://www.GetPreconstructionDeals.com. In addition, Dr. Anderson is the on-line training coordinator at the Van Tharp Institute, a group that provides world class training for investors and traders.

Selling A Home - The Perfect Solution For Fast Cash

2006-08-04T05:48:00.000-07:00

by Wain Roy

Buying and selling a home often looks like a hard job for home owners, both emotionally and functionally. Although it's partly an overwhelming experience, it can be just as much frustrating at times. People living in a house for years get emotionally attached to it. There are good reasons when people sell the old home and buy a new one, like taking up a new job or getting a transfer. However, the reasons aren't always pleasant--people sell homes due to bankruptcy, divorce, foreclosures and more. Under various circumstances, people have realized that the best way to come out of financial problems is to sell a home and get fast cash.

With the growing real estate market, there is no shortage of potential buyers looking for homes. For first time home-sellers, the whole process of selling a home on their own will look somewhat complex. One of the most crucial worries, and perhaps even financially devastating, can be wasting precious time with those who really aren't serious about purchasing your home. In that case, selling a home can become a bigger ordeal than you ever imagined, possibly costing you more valuable time and money than you can afford.

Facing foreclosure or pre-foreclosure, payments behind on your mortgage, multiple mortgages on your property, etc are the primary situations which lead people to sell their homes quickly for fast cash. Sometimes, selling a house is the most perfect and apt solution. You can sell a home quicker provided you take the right approach.

Home owners always want to sell their homes at the best rate and according to the latest market prices. The only thing you need to sell a home fast is by taking assistance from the real estate professionals. Home buyers assistance ensures owners to be debt-free in just hours or days, and not in weeks or months that the traditional real estate transactions take. Experts always try to put fast cash in the home-sellers' pockets while freeing them off a debt-ridden home. Taking professional help guarantees home owners of managing properties at any condition, getting the best market price and ensuring a smooth-sailing of transaction for fast cash.

In today's fast-paced world, people generally lack the patience of going through the complexities of selling a home. Moreover, they are also eager to sell their homes quick, when they need fast cash. Although selling a home apparently looks simple, loads of patience and efforts go into it. Taking serious help from real estate pros always ensure quick selling.

Price and time are yet some other major factors while selling a home fast. In order to sell your home as quickly as you want, it is always better to quote the right price that will attract home buyers. Asking for too high a price or a wrong price will not help you in selling your home fast. You can definitely seek professional help while fixing the right price for it. Time also plays a big part in selling a home. If the real estate market is down and you are willing to sell it at a low rate, understanding the minimum loss you will suffer, then your home selling will be faster.

In a nutshell, the various important tips that an experienced real estate professional provides to sell a home quickly for fast cash are:

* Give some discount or sell at a moderate price that will pull in home buyers.
* Fix the interior loopholes of your home to make it saleable and attractive.
* Similarly, exterior shortcomings of your home should also be fixed. Curb appeal plays a vital role in selling a home or a house.
* Home owners should always remove clutter from their homes before selling.

Real estate professionals always assist the home owners with their specific needs to sell their houses as fast as possible and at the best possible price. Selling a house quickly for fast cash always requires expert assistance that will handle every paper work and make every arrangement from opening to closing a deal. Selling the real estate property to home buyers willing to pay fast cash for a house is always the best and right approach. Home buyers are always ready to pay cash, take over your payments or lease, and purchase your house immediately. Real estate experts, with their guidance and help, always guarantee the land-sellers a hassle-free house selling.

Wain Roy is an experienced search engine marketing professional, expert in various industries like web design, real estate, medical tourism, finance etc.

Is Refinancing for Credit Repair a Good Idea?

2006-08-01T23:29:00.000-07:00

by Guy Ray

Refinancing your home mortgage is an excellent start for credit repair. Although lenders are much stricter when you have poor credit, refinancing to help restore your credit is still very possible. It is important that you do your homework and approach the right lender. You will most likely need to find a sub prime lender. You can effortlessly find a sub prime lender on the Internet or by referral.

Even though sub prime lenders are significantly more lenient to borrowers that need credit repair because of a bad credit history, they use the same type of approval process as other lenders. This means that your debt-to-income ratio, work history and personal assets, are still factors taken into consideration when determining if you will be approved for a sub prime loan for credit repair. As long as you have strength in at least one of those factors, you have a chance of qualifying for the loan.

Sub prime lenders are the only lenders that will lend to high-risk borrowers dealing with credit repair. Due to their increased risk factor, these lenders charge higher interest rates and fees. However, even though you end up paying more for your refinance, the benefits of rebuilding your credit far outweigh the higher interest rates and payments.

Sub prime refinanced loans are merely temporary solutions. As long as you are timely with your mortgage payments and take further actions to repair your credit, you will qualify for a better loan within four years. In the meantime, try to work on other methods for credit repair.

If you are in need of some extra money during the process of your credit repair, you should consider refinancing the loan for more than what you currently owe on your mortgage. This way, you can get cash out from the equity for the credit repair you have in your home. If appropriate, you could pay off your higher rate credit cards, unresolved collections and outstanding liens. The money could lead to credit repair even sooner.

Realize that if you have poor credit, it is very possible to re-establish a good credit history for overall credit repair. You just need to learn from your mistakes and promptly pay every bill for good credit repair. Look into online bill payment systems. Most banks offer them for free, and you can set up unlimited automatic payments. That will ensure your payments go out in a timely fashion every month.

Guy Ray is the owner of all credit repair tips, the website with credit repair tips, resources and information.

Buying And Selling Real Estate: Basics Of The Transaction

2006-07-31T07:24:00.000-07:00

by Christine Macguire

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

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

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

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

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

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

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

During the process of buying or selling real estate, you may find it helpful to have a professional real estate agent assist you. Real estate agents can provide many useful services in a transaction. The seller and buyer may each have his own agent. They help you in purchasing land and real estate with built-in equity. Professional agents provide their clientele with land and real estate consulting services that ranges from acquisition to research and development. They also provide you the accurate market value for your real estate property or land for sale . Real estate experts are in a position to advice you about the community and get you just the type of real estate that meets your requirement.

Christine is an expert Internet market professional with years of experience in various industries such as: Business, Finance, Real Estate, Web-Design and many more.Arizona Real Estate

How To Invest In Government Foreclosures

2006-07-30T02:24:00.000-07:00

by Masni Rizal Mansor

You have probably seen the infomercials in the past that are trying to tempt you into buying government foreclosures. And more than likely you probably dismissed these offers as a get rich quick scheme that will never work. While government foreclosures may not be exactly what you see and hear on television, they definitely have their place in the real estate industry.

In order to take advantage of government foreclosures you must first know what they are. Government foreclosures are properties that were financed through FHA insured loans. This means that the FHA insured the lender that the owner will meet the financial obligations that are required. But when the owner fails to do this, the lender will then take the home back. At this time, the FHA is then responsible for reimbursing the lender for any losses that they may have incurred. The FHA loses in two ways; they do not get the home, and they also have to pay the lender for their losses.

Government foreclosures can also come about in other ways. If somebody decides that they are going to avoid paying taxes, the IRS may take the home from the buyer. In other cases, government foreclosures may happen when a home owner is sent to jail. Instead of simply letting the home go to waste, the home is simply turned into a government foreclosure.

Government foreclosures are usually sold to the public via real estate auctions. This means that anybody who is interested in these properties can attend these auctions and bid on the homes that interest them. Most often times, investors suck up these government foreclosures the first chance that they get. It is not uncommon to find government foreclosures that are listed at 10% or more off of the market value price. This means that you can buy a home, and then quickly turn it into a profit.

Finding government foreclosures can be done by keeping an eye on your local real estate classifieds. Foreclosure auctions are usually listed in major papers for at least one day so that the public has a chance of finding out about them.

The infomercials don't lie! Government foreclosures are a great way to make money. Even though you probably won't get rich quick like you are told, you should be able to make at least a little bit of money on each transaction.

Masni Rizal Mansor provide tips and review on government foreclosures, home construction methods and Boston real estate.

Read Those Regulations Before Making An Offer On A Property

2006-07-30T02:22:00.000-07:00

by Raynor James

In modern America, many neighborhoods are organized as developments. Such developments often have rules and regulations that can be surprisingly restrictive.

Read Those Regulations Before Making An Offer On A Property

Planned developments are all the rage these days in real estate. A developer doesn't just build a bunch of homes any more. Now, they build an image of a particular type of living style. To maintain this image, the developments come with rules and regulations that can be very overbearing. If you fail to read them thoroughly before making an offer on a home, you may be in for a nasty surprise when you move in.

Rules and regulations for developments, known as homeowner association regulations, set out the specific things that can and cannot happen in a development. Issues covered range from changes that can be made to properties to issues such as landscaping. To the surprise of many homebuyers, these regulations can be incredibly restrictive.

Assume you have a hobby of growing roses. In fact, you have become an expert in growing them and who could really object to beautiful roses being grown in a yard? Well, you might be in for a surprise. Assume you move into a Spanish themed development. The roses do not really mesh with the Spanish theme. If you are unlucky, you may find that the regulations detail very specifically the type of plants that can be grown. If roses are not included in that list, you may be barred from growing yours. If you persist in doing so, you may actually be fined or have a court order entered against you!

On a more practical level, are you aware that many developments have severe restrictions regarding pets? If you own a pet, say a dog, that is a bit noisy, you may be in for a heartbreaking surprise. Many developments have clauses in their regulations that require residents to remove noisy pets from the development, to wit, you have to give fido away. Talk about an ugly surprise!

Many people like developments because they contain regulations designed to keep the neighborhood from falling apart or changing dramatically. While that is a noble goal, it is important to make sure the regulations will not actually keep you from being able to live comfortably in your home.

Raynor James is with the site - FSBOAmerica.org - home buying information.

Interest Only Mortgages

2006-07-30T02:21:00.000-07:00

by ElmerFizz

Have you heard that commercial about interest-only mortgages...the one where you're told about what a wonderful benefit it is to have a low, low mortgage payment and all the wonderful tax write-offs you will receive?

Before you decide to buy now and pay later, that is pay "big time" later, take a moment to enlighten yourself a bit more about these so-called "interest only mortgages." Think about it for a moment. If you just pay the interest on your home, will you ever start paying on principal and will you ever earn any equity into your property?

By definition, a mortgage is a temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt. Simplified, that means you borrow money from a financial institution and they essentially buy your house and you pay it back. How can this happen if you're just paying interest? More accurately, interest-only mortgages are a temporary reprieve for paying off a traditional mortgage. You may actually be prolonging the inevitable and eventually making it even more costly to pay off your mortgage.

Far too many people are in debt way over their heads because of interest-only mortgages. They took advantage of attractive offers to buy now and pay later. With an interest only payment you're keeping the principal at minimum value while continuing to pay interest at 100%. With a more conventional mortgage you'd be slowly dwindling down the total interest amount.

Most interest-only payment schedules are offered on Adjustable Rate Mortgages (ARMs), but they can also be found on a fixed rate mortgage. Interest-only payment periods almost never run for the entire term of the loan which is typically 15 or 30 years. Depending on the terms of your contract, you could be expected to start paying on the principal in five, seven or ten years. Once the interest-only period ends, your monthly payment will go up because then you'll be paying on both principal and interest.

Conversely, interest-only mortgages can be a good thing for some people. For those people wanting to purchase a bigger/better home for a lower down payment AND who anticipate moving within seven years, the interest-only payment method may be the way to go. However, keep in-mind that in a "down" realestate market you generally won't be building equity and making money by doing it this way. The majority of the money made from investing in real estate comes from an increase in value to the home. The average person moves every seven years anyway. Gone are the days when people stay in a home thirty years. Hence, if you anticipate moving before you'll have to start paying on the principal, then an interest-only payment may be ideal for you.

There's a great deal of fine print to any mortgage. Evaluate your own goals; be vigilant when reviewing the terms on the loan you're considering before acting. For more information on mortgages see: http://www.mort-gage-loan.com

For More information on Mortgages visit:http://www.mort-gage-loan.com This article may be reprinted if the content is unchanged and all the hyperlinks remain active

Cheap Second Homes - Get One, Enjoy It and Make Money!

2006-07-30T00:56:00.000-07:00

by sacha tarkovsky

You want a cheap second home, you want it in a great area you can enjoy and you want your property to make money as well this is easy.

You just need to look at different locations and pick the best and thats what this article is all about.

If you are American you may find the cost prohibitive in the southern US states, as cheap second homes are just not available.

Look just a little further a field and just 3 hours from Miami, you can pick yourself up a cheap second home in a paradise location that gives you a lot for your money and can make you money to.

Record numbers are buying a cheap second homes in Costa Rica check out the facts below and you will see why and why this could be your best purchase ever.

1. Proximity

Just 3 hours from the US with regular cheap flights.

2. Low Cost

Buy a second home in Costa Rica and you get more for your money as real estate costs up to 70% cheaper than in Florida and Arizona and the cost of living is low.

You can live comfortably on just $2,000 a month, you simply get more for money here.

3. Lots to do

Costa Rica has it all rolling hills, pristine beaches, volcanoes mountains and much more. Fancy a round of golf or maybe some fishing or a rainforest tour? Costa Rica has them all and is ranked as one of the best adventure tourism spots in the world.

You also get quality shops, vibrant nightlife and all the comforts of home.

4. Safe, stable and friendly

The country is safe and stable, serious crime is rare and Costa Rica has a history of strong ties with the US and if you buy you get the same rights as residents.

5. Tax efficient and capital growth

Its extremely tax efficient and capital growth on real estate here is great. You may by a cheap second home but it will go up in value and property prices are up 500% in the last 10 years!

When your not enjoying your cheap second home you can take advantage of the buoyant rental market and make even more cash.

Record numbers of Americans are buying?

Maybe you should to.

You get a cheap second home in a paradise location, just three hours from the US and the potential to enjoy it and make a lot of money on your investment as well.

As the real estate market in the US is over priced and runs out of steam, more people are buying cheap second homes in Costa Rica in fact, their buying in record numbers.

There getting more for their money and a lifestyle that has variety and quality.

The best cheap second home location for value and lifestyle

Maybe you have not considered a cheap second home in Costa Rica but the advantages as you have seen are huge and it really is a slice of paradise thats affordable to all.

There is not enough room to cover all the benefits of buying a cheap second home in Costa Rica here but if you want to enjoy your ne home or make money from it, you should look at Costa Rica and you will be glad you did.