Real Estate - Market, Mortgage, Buying Homes, Selling Property » properties

Free Foreclosed Homes

admin — Sat, 07 Aug 2010 14:52:26 +0000

Photo by merfamForeclosed homes that are sold at 30%-40% less than the market price are called free foreclosed homes. Real estate investing on such properties will give a neat profit as the prices that they are quoted to be are not the actual selling prices. So if it is sold at the same price as that was quoted on the price tag, there is still a profit to be made.

These real estate properties are sold at a low price because the financial institutions that own them just want to get the money invested back. The reason why financial institutions such as banks and lending companies exist is to make a profit. Any bank is always hesitant to ‘play heavy’ on their borrowers because they always want to make sure that the monthly payments and interests are made regularly. This is the only way they can make a profit on their money they loaned borrowers, on that interest rate. Foreclosed properties means that the bank lost money on this investment and they are always making moves to get their money back as soon as they can.

Before buying a free foreclosed home, however, investigate the property first. Look at the location if it is saleable and viable. See if the value of that property is competitive with the other properties around it. If it is too high, then the property would be difficult to sell. If it is low again, then the potential buyers will think that there is something wrong with it.

If the price is right and the area is viable, the next thing to investigate would be how much repairs are needed to be done. Do not buy a property where the cost to repair it would be higher than actually building a new house. Be wary of ‘good deals’ because there is always a chance that it may be a loss instead of a profit.

Once the decision is made to buy it, prepare the money needed to cover for the bidding. It would be very embarrassing to win the bid and tell the bank that the money you have is still unavailable.

Buy To Let Rates Depend On Your Deposit Amount

admin — Wed, 27 May 2009 13:09:28 +0000

Buy to let rates are not the only factor you have to take into consideration when choosing your buy to let mortgage deal. There are many lenders who impose a restriction on the number of properties you invest in as buy to let investments. Usually, you are permitted to invest in a maximum of 5 to 10 properties.

Another point lenders take into mind is the maximum total advance that is permitted for each property. The maximum advance for a property could range from thousands of pounds, to a few million.

In addition to this, there may be restrictions imposed if the property is in need of extensive work and the owner insists that the work is completed before you are sanctioned a full mortgage for the house.

When considering a buy to let investment, remember that you will require a higher deposit as its lenders want to be sure you have sufficient financial commitment due to the increased risk involved with the investment.

Most lenders expect to receive a 15% deposit, and in some cases, this amount may reach 50%, depending on the situation. However, like most mortgages, the higher the deposit amount, the lower the buy to let rates.

Looking Around For Florida Real Estate Properties

admin — Mon, 10 Nov 2008 20:07:43 +0000

Most people, especially those that are inclined to the trends of tourism, know full well that the State of Florida is one of the major tourist destinations in the United States for a long time now.

Just take a look at Orlando, for example. Orlando, Florida is actually the place where the Walt Disney World is situated. As all of us know, Walt Disney World is a popular place for people of all ages. This is just one of the many reasons why there are a lot of people that go to the State of Florida each and every month of the year.

Not so far away from the Walt Disney World, you will instantly a very profitable business opportunity. Just a few minutes from the Orlando Disney World and the Epcot Center, Florida real estate business opportunities can be found. Florida real estate properties are really furnished in a way that it will attract any person who checks it out. Most of them actually have a pool and a cabana. Families staying in Orlando for a vacation may find these places as the ideal place to stay. And when you will keep in mind the steady flow of people that go to the State for a vacation, then that would be enough to put some assurance in your heart about how promising and how profitable a Florida real estate business opportunity can be.

Investing in a Florida real estate business is really something that you should pay attention to, if you can afford it. As an additional motivation, you should know that thousands, if not millions, of tourists come to the place each year. In some years, it even happens that the number of visitors in the Disney World alone gets their attendance doubled each year. Another thing that draws people to the place is that the weather is really good at any given time of the year. This is really more preferable for most people since they wouldn’t have to encounter climatic challenges during the duration of their stay at the place and they could have more chance to enjoy their vacation because of that.

So what does all of that mean for a Florida real estate investor? As if we really needed to tell, well that simply means that you have more and more chances to earn out of this since there really are a lot of potential buyers in the area.

If you need more details and information about how to start earning through the Florida real estate market, then you can start searching for all of those through the websites of many different companies. You’ll not only get the chance to browse and check out the properties they have on their gallery but you might also access their pages that contain the most frequently asked questions plus you can also see their contact numbers. With that, you can get in touch with them and ask for assistance so you get started the right way immediately.

Eliza Maledevic writes for http://Jump2Top.com – SEO Company

Miami Waterfront Real Estate

admin — Sun, 12 Oct 2008 15:15:25 +0000

Being surrounded by the Miami River, Biscayne Bay, the Everglades, and the Atlantic Ocean, Miami has a rich supply of waterfront real estates. Although there are some properties that are well priced for single family houses, most of the properties in the waterfront area cater to high-demand buyers with intentions of purchasing luxury homes.

In fact many of these waterfront real estate properties are homes to the likes of Julio Iglesias; Don Shula, former coach of the Miami Dolphins; Norman Braman, owner of the Philadelphia Eagles; Ricky Martin, and Robert Wood Johnson of Johnson and Johnson. Many of the small historic houses are slowly disappearing to give way to the new mansions for these elites, but the waterfront homes of Miami are becoming a sight to behold.

The waterfront used to be standing over swamp mangroves that were developed back in the 1920s and 1930s to be a paradise of the wealthiest and most famous people that this world has ever known. The landscaping are always maintained with well-groomed lawns that are simply marvelous to behold. The properties are situated with wide open bay views, perfect for breathing in the airy ocean breeze. The houses are architectural wonders using Mediterranean, modern Caribbean, and European styles to design the structures. This area of Miami is home to the most beautiful private golf in the city. The waterfront community is treated as an independent city heavily guarded by its private police force patrolling the streets and the waters.

The area is so exclusive that it only houses a total of 33 residents over 300 acres of which 80 percent is devoted to a golf course. The cheapest home found in this area is estimated to be worth at least $1.4 million. The prices of other estates go us high as tens of millions of dollars.

Miami Real Estate provides detailed information on Miami Real Estate, Miami Waterfront Real Estate, Miami Beach Real Estate, Miami Luxury Real Estate and more. Miami Real Estate is affiliated with Downtown San Diego Real Estate

Why Become A Real Estate Agent?

admin — Thu, 04 Sep 2008 10:13:36 +0000

It may seem that if you become a real estate agent you can make a lot of money with little risk, just by selling other people’s property for them. This is almost true. You also can get the inside scoop on possibly profitable investments. The part that isn’t entirely true, is the low-risk part. It can be a tough business to start out in, especially if you don’t know many people. It takes money and time (and time is money as well, right?).

I hated being a real estate agent. I was young (17 years ago). It wasn’t that I didn’t sell anything. In the few months I was actually trying I sold seven or eight properties. But I also realized that I would never learn to enjoy the process.

It was simply that it doesn’t fit my personality. I didn’t like being in the middle of transactions. I remember people crying at closings and yelling on the phone. I remember struggling to advise sellers on what was best for them, even though if I were in their shoes I would have found it easy to say what was best for me. I operate best as buyer or seller – not as the person bringing them together.

On the other hand, I met a lot of great people who love the stress and busyness and action of being a real estate agent. They are mostly people who love to help people. Some of them just enjoy the business, while others enjoy it and make a lot of money.

Then there was poor Henry. He was there when I first started, at the desk in front of mine. He was there months later when I was quitting, and he was finally making his first and last sale (he quit shortly afterwards). He was one of the nicest guys I have ever worked with, but he didn’t know how to sell real estate.

I think Henry hated the business more than I. Keeping the money in mind, I could at least make myself get on that phone and start calling hundreds of people who didn’t want to hear from me, just to find the one or two that did want to. I got listings this way while Henry sat there waiting for the phone to ring. But I found it harder and harder to do.
Bottom line? It will help greatly if you actually enjoy this business – that way you can motivate yourself to do the things you need to do.

How To Become a Real Estate Agent

In most states it is relatively inexpensive to get licensed. It will be somewhat different in each, but when I was licensed in Michigan, it was necessary to be sponsored by a broker. There are always brokers looking for new agents, so this shouldn’t present a problem. Then you may take a class that teaches you everything you need to know for the test. This too isn’t too expensive.

After you pass the state exam, you go to work, but you are not an employee. You are provided a desk by your brokerage, but you are an independent contractor. Despite not being in business for yourself, you cannot go off and sell on your own. Usually the law requires that you work for a time (three years is common) as an agent for a broker before you can become a broker yourself and own your own real estate company.

You will have to pay for your own business cards, signs, supplies, and dues. You might even need some new clothes. The dues to join and remain a member of the MLS, or “Multiple Listing Service,” as well as any other memberships required or “suggested” by your employing broker, is where it starts to get more expensive.

You have to be financially prepared for the transition. If you have no other job at the time, you may have no income for at least several months. Unless you have a lot of contacts or are coming into the business from a related one, it may take a month or more to get your first listing. If that property sells in just two months (3 or 4 month is common in many areas), and closes a month after selling, that means that at the start you are four months away from your first paycheck.

Obviously, apart from the couple thousand dollars needed for direct expenses, you need to plan for this lag time before you start collecting commissions. If you are the sole provider for your household, I recommend that you have at least six months income set aside before you quit your job and start selling real estate.

How much can you make? This depends on where you work and what you sell. At the time I was selling real estate in Northern Michigan, all the real estate companies were charging 7% commission on residential properties. My broker split the commission with agents, so if I sold the house, I got half the commission. If an agent from another broker sold the house, that broker took 50%, and my broker split the other 50% with me. In other words, I got 1.75%. This was common then.

Lower commissions are more common now. In some areas, they are as low as 3% for full service brokers. This is because of increased competition, and because home prices have gone up faster than wages or inflation in recent years. 3% of a $500,000 sale (In California, for example) is still a hefty commission: $15,000, to be precise.

Brokers each have their own commission structures. There are brokers that let you keep 100% of the commission, and then charge you for the use of the office, including perhaps a secretary for the common use of a dozen agents. You might pay $15,000 per year under this arrangement, so obviously it would be best to wait until you are selling enough real estate before considering working under this kind of broker.

How do you sell a lot of real estate? That is a book-sized subject, but here are a few basics:
1. List a lot of property for sale. You can spend weeks showing a young couple homes just to have them go to another agent or not buy anything. Get a listing of a home, however, and no matter who buys it or sells it, you will be paid. Concentrate on working with sellers more than buyers (although you will always do both).

2. Get high-priced fast-selling properties. You can spend as much time and effort selling a $100,000 property as you will selling a $400,000 home. But you will make four times as much money with the latter. Too unusual and expensive can mean a long time to sell, however, so balance it out. Sell the most expensive properties that are selling relatively quickly.
3. Specialize. Work an area or type of property until you are the expert. Then the sellers will start to come to you.

4. Learn how to sell. It doesn’t matter if you just want to list those properties and let others sell them. You still need the sales skills to get the seller to list with you. Read, take advice from top sellers, and go to seminars. You can always learn more.

Investing As A Real Estate Agent

About the only disadvantage to having a real estate license as an investor is that in most states you have to identify yourself as an agent when you advertise your properties for sale. This may make some people feel that you – as the expert – can take advantage of them.

The big advantages, however, are two. First, you get the inside scoop on properties coming to market. You may have an offer in on that new rental property even before there is an ad in the paper or a listing in the MLS.

The other advantage is that you effectively get a discount on any MLS listing. Suppose you see a nice little house for $100,000 for sale. If it is listed with another office and the commission is 6%, your broker may get half of that, and give you 60% of that as the selling agent (you are selling it to yourself). That is $1,800 that you make as a commission when you buy – perhaps enough to cover closing costs.

Copyright Steve Gillman. For a Free Real Estate Investing Course, and to see a photo of the home we bought for $17,500, visit: http://www.HousesUnderFiftyThousand.com

Real Estate Taxes – Will They Ever Go Down?

admin — Sun, 04 May 2008 11:36:55 +0000

Something seems to have happened to the mind set of state and local government. Property taxes are soaring as the value of the overall aggregate of real estate home values are dropping. Many areas are hard hit by home foreclosures and are running deficits.

Real estate taxes continued to climb even as the average value of a single family home fall. Either the shortfalls need to be addressed by higher property taxes or larger sales tax. Unless government tightens its belt, higher taxes one way or another are inevitable.

The state and local government hiring has accelerated in the last 12 months. Despite the economic slowdown, private firms slashing staff, the public-sector jobs gains have actually sped up.

State and local governments are in a budget crisis. You wouldn’t know it when you looked at the payrolls. 338,000 new jobs have been created in the past 12 months. That’s far more than the 195,000 jobs in the 12 prior months.

Budget cuts could affect aid to cities, towns, communities, villages and counties and affect transportation, mental health, housing and other social services.

With the fall in real estate prices, it pays to scan the horizon to see how your homes valuation noted the assessment notice compares to recently sold homes.

The National Taxpayers Union writes that as many as 60% of all homeowners are over-assessed and not in line with their home value. (“How To Fight Property Taxes” 2004 p.1

The value of residential real estate is estimated by comparing the subject with similar properties that have been sold recently. Look at your neighborhood to find comparable sales or properties in similar neighborhoods that share similar characteristics of lifestyles, income level of residents, surroundings, average age and value of house.

If officials want to make an interior inspection, let them.

In Massachusetts Lawyers Weekly, an article appeared Taxation – Real estate – Abatement – Interior Inspection Published: August 25, 2008 where they judged in favor of the Appellate Tax Board” Where a taxpayer refused to allow an interior inspection of his home, the Appellate Tax Board acted permissibly in refusing his abatement request.”

Although this happened in Massachusetts, it’s a good idea to cooperate with the tax assessor. But when your assessments are out of whack, appeal your property tax!

Nevertheless, real estate tax loopholes allow for serious property tax reductions because of errors in assessments resulting in thousands of dollars of potential. Click http://propertytaxax.com/