Posted on March 7, 2010
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Common Short Sale Myths Exposed
Posted on March 7, 2010
Filed Under foreclosure short sale investing | Leave a Comment
MYTH: I must stop making my mortgage payments before the bank will approve a short sale.
TRUTH: You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested â whether you have missed payments or not.
MYTH: If I am doing a short sale I am in foreclosure or pre-foreclosure.
TRUTH: A short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.
MYTH: I have a second mortgage or home equity line so I can not do a short sale on my home.
TRUTH: The majority of people we work with have both a 1st and 2nd or home equity line. In this situation the 1st mortgage generally approves an amount for the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff.
MYTH: I will receive some money back at closing.
TRUTH: When you sell your property as a short sale you are not entitled to receive money back at closing because there is no equity in your property.
MYTH: The bank will not pay the commission for my real estate agent and/or the costs of listing the property with a real estate agent will be passed on to me.
TRUTH: A real estate agents commission is taken out of the banks proceeds at close of escrow. There should never be an out of pocket expense for a seller who lists their home as a short sale with a real estate agent.
MYTH: Short sale homes are priced lower than other homes in my area.
TRUTH: Short Sales are priced in line with other comparable properties in your area. Your mortgage company will do their own version of an appraisal of the property to make sure they are getting a fair payoff on the property. Length of time on market, condition of the home and how quickly the Seller needs to close are all conditions that affect the price of every listing â short sales included.
MYTH: I have a foreclosure date approaching so there is not enough time to do a short sale.
TRUTH: Because it is generally far more expensive for the bank to foreclosure on your home than to work with us on a short sale we can postpone the sale on your home in most cases while we are marketing and/or negotiating your short sale.
The Steve Horn Team
http://www.articlesbase.com/real-estate-articles/common-short-sale-myths-exposed-714153.html
Real Estate Investor Jargon Every Newbie Should Know
Posted on March 7, 2010
Filed Under real estate property | Leave a Comment
Real estate investing is a new, exciting, and wonderful adventure when youâre first getting started. For me, the new hasnât worn off. I love real estate investing as much as I ever have. But, if thereâs one thing I would have changed, it would be my knowledge of the terminology thrown around by more seasoned investors. If youâre tired of feeling like a dunce for having to look up the meaning of a real estate term every time you hear one, hereâs a primer that should help get you up to speed.
Acceleration clause â a provision in a mortgage loan that allows the lender to demand immediate payment of the entire outstanding balance because of the violation of a loan provision, such as defaulting on the mortgage.
Addendum â an addition to a contract adding a provision that wasnât in the original document. Once agreed to by both parties, the addendum then becomes a part of the original contract and is enforceable in court (assuming the provision is legal).
Appreciation â the increase in value of an asset.
Balloon payment â a required large final payment of a contract, frequently a large percentage of the original amount borrowed. Many times a contract will consist primarily of interest only payments for a period of time followed by a large payment that pays off the entire balance. For instance, someone might make interest only payments on a property for five years and then have to pay the entire balance off at the very end.
Cash flow â the amount of money left over on a monthly basis after paying all operating expenses on a property. This amount can be expressed as either a positive or a negative number. For example, if a property has total income of $1500 per month and expenses and debt service of $1000 per month, monthly cash flow on the property would be $500.
Closing â a meeting between the buyer and seller of a property where legal ownership is transferred. When this happens, there is typically a large stack of legal documents that needs to be signed by both parties. At this time, the seller receives certified funds as payment for their property, all closing costs are paid, and the buyer signs mortgage and other legal documents and receives a large stack of papers related to the purchase.
Closing costs â expenses that must be paid in order to legally transfer ownership of a property from the seller to the buyer.
Depreciation â a provision in the Internal Revenue Code that allows the owner of a property to take a tax reduction for the value lost through the year. One unique aspect of this provision is that the federal tax code allows a real estate investor to take a depreciation allowance on their tax return even though their property actually increased in value.
Due on Sale Clause â a provision in a mortgage contract requiring that the entire loan balance be paid immediately on demand in the event of the sale of a mortgaged property. Certain things can trigger the due on sale clause in the contract, such as the legal transfer (or equitable transfer) of ownership from the original loan borrower to another party.
Earnest money deposit â when someone places a written offer on a property, the seller will normally require that the buyer provide a small deposit (usually $500 or $1000) to prove to the seller that they are serious about making the purchase. These funds are normally placed into an escrow account by the real estate agent and will become the property of the seller in the event that the buyer fails to execute the contract as agreed.
Foreclosure â the legal process involved in repossessing a property, usually for nonpayment of a mortgage contract. There are two kinds of foreclosure: judicial and nonjudicial. Specific foreclosure laws vary from state to state, but in general the foreclosure process takes considerably longer in a judicial state because the lender must go to court and prove that the borrower has failed to make their payments as agreed. In a nonjudicial state, the process is much shorter and simpler because the lender is not required to receive court approval prior to forcing the removal of the borrower from the property.
GRM â also known as the Gross Rent Multiplier, which is a ratio you can use to estimate the value of an investment property. To figure the GRM, you need two pieces of information about the property: the sales price and the market rent rate. The way you figure the GRM is by taking the sales price and dividing by the monthly rent. For instance, pretend you have a property with a list price of $125,000 that would rent for $1600 per month. 125,000/1600=78. In this case the GRM would be 78.
Home Equity Loan â a type of loan where the owner of a property borrows money from a lender based upon the value of the property. Proceeds from a home-equity loan are typically used to make repairs to the property, pay off other debt, or to fund additional real estate investments.
HELOC â Home Equity Line of Credit is a type of loan where the borrower pledges the equity in their home as collateral. In exchange for receiving a HELOC loan, the homeowner usually receive a checkbook that they can use to access funds. While the homeowner is typically notified at the time that their loan is approved how much money they are qualified to receive, they donât normally receive cash at that time. Instead, they use the checkbook to access HELOC funds, so they only pay interest on the portion of the loan that they are utilizing at any given time.
HUD-1 settlement statement â this form is also known generically as the closing statement. Put simply, it is nothing more than a detailed accounting sheet that discloses where every dollar of a real estate transaction is going. It lists things such as real estate commissions, mortgage broker fees, escrow amounts, etc. At the very bottom of the sheet it details the total amount of money paid by or on behalf of the buyer to the seller.
Lien â a type of encumbrance that can be placed on a property by a creditor that prevents the propertyâs sale without the payment of a legitimate debt. For instance, if a homeowner loses a lawsuit and is bordered by the court to pay the winning party a certain amount of money, many times the winning party will place an encumbrance upon their real estate to ensure that the judgment is paid.
LTV â a numeric value that can be used to determine how heavily leveraged a property is. If a borrower takes out a loan in the amount of $100,000 and the property is worth $125,000, the LTV is 80%.
NOI â the Net Operating Income of an investment property is the amount of money left over each month after making all debt payments and paying all operating expenses, such as insurance, maintenance, and repairs.
Owner financing â a method of financing where the seller acts as the bank and agrees to take payments for their equity over a period of time. This is a very common and creative real estate financing technique utilized by a lot of real estate investors who for one reason or another have decided to forgo institutional bank financing or the use of hard money lending sources.
PITI â an acronym that stands for principle, interest, taxes, and insurance.
ROI â an acronym that allows a real estate investor to determine their return on investment, which is expressed as a percentage. For instance, if you invest $100,000 and you receive $10,000 in annual returns, your ROI would be 10%.
Title insurance â an insurance policy that the purchaser of a real estate property can purchase to guarantee that there are no outstanding liens or other encumbrances that would affect the transfer of ownership from one party to another.
As you can clearly see from this list of real estate investing terminology, there is a huge vocabulary for you to learn as you begin to fully immerse yourself into the world of real estate investing. This is by no stretch of the imagination a full list. It is, however, enough of a starter list that you can feel a little more comfortable with getting up to speed. Your eyes wonât completely glaze over if you happen to overhear more experienced investors talking, and in many cases you can smugly smile â knowing that youâre a member of a select club of special entrepreneurs who have their own secret language. Plus, you wonât have to wear a special uniform or try to explain to people where the Klingon empire is located.
To learn even more of the jargon used by real estate investors, navigate over to www.REIconferences.com and look around a site built by investors for investors. Itâs packed with all the tips, tools, and information you need to turn the corner and reach all of your investing dreams.
Charrissa Cawley
http://www.articlesbase.com/real-estate-articles/real-estate-investor-jargon-every-newbie-should-know-671669.html
Agents: Instantly Comp Thousands of Homes in Your Area
Posted on March 7, 2010
Filed Under Investment Property Listings | Leave a Comment
Our exclusive patent pending real estate investment software will instantly compare, evaluate, and value every property in your defined area. It then identifies the best priced homes on the market by filtering out the properties where the asking price is 10% or MORE Below what the comparable value is. It pinpoints these under-valued listings as properties worth a second look. Many of these properties will be bank repos, fixer uppers or distressed sales, but ALL of them are priced under value, sometimes by 50%, translating to TENS OF THOUSANDS OF DOLLARS IN SAVINGS for you or your client.
Upload current MLS listings for your favorite area now and instantly identify the best priced properties.
Here’s how:
1.    Search your MLS for your favorite zip code. Make sure the results include ALL single family homes currently for sale, ALL pending and contingent sales, and ALL sales recently sold in the last 30 days. Make sure to exclude condos, townhouses, and manufactured homes. The homes can be any age, size or location. Our software identifies 36 different categories to ensure it is comparing “Apples to Apples.”
2.    Export the data from your MLS dashboard into a Microsoft Excel (.xls) or Tab Delimited (.txt) formatted file. The Columns across the top should include ALL of the following data (add more than what is required here if you like).
3.    Email the file to Information@PropertyHookup.com. Be sure to include your Email Address, Name, Brokerage Office and Telephone Number. The file can be as large as you like, our system can instantly evaluate up to 999,999 properties ALL at once.
4. We will have your results back to you in 24 hours. You will now have comparable value data for every listing you provided, up to 999,999 listings instantly. And most importantly, you will be able to instantly identify the houses for sale where the seller has listed the price 10% or more below what the current value of the home is. You will be surprised how many aggressive sellers list these bank repos, fixer uppers and foreclosure properties by 20%, 30%, 40% and 50%+ Below Market Value in order to attract Qualified Buyers fast and get these problem properties liquidated quick. I’ve been using this software for years to identify these deals that others didn’t even know existed. These deals have always been right under your nose, often snatched up too fast by Inside Investors for you to get a chance to move on them. Our software will do weeks worth of exhausting and time consuming searching, evaluation and number crunching for you instantly, and provide the valuation and prioritized results in an easy to read display.
There is no cost to you, try it out. I am certain you will be impressed.
Kallen Kildea
http://www.articlesbase.com/real-estate-articles/agents-instantly-comp-thousands-of-homes-in-your-area-722691.html
Need Help With An Arizona Short Sale Or Phoenix Short Sale?
Posted on March 5, 2010
Filed Under foreclosure short sale investing | 5 Comments
Do you owe more than what your home is worth? Are you behind on payments and feel that you can’t afford your home anymore? Do you think that you wouldn’t be able to pay a Realtor to sell your home due to not having enough equity? These are all symptoms of being “upside down” in your home. In simple terms, your loan amount is higher than the current market value of your home. You may want to consider negotiating an Arizona short sale.
So what can be done with a situation like this in Phoenix or Arizona? A short sale might be the best solution for your needs. Many people have never heard of the term “Arizona short sale” or “Phoenix short sale”. A short sale in Arizona is when your mortgage company agrees to take a less amount owed on your home in an effort to sell the home before having to foreclose.
Most people who are “upside down” or owe more than their home is worth are left with only 2 options when they can’t afford the payment anymore. The first is foreclosure; obviously no one wants a foreclosure. Believe it or not, that bank doesn’t either. The repercussions of a foreclosure for both the homeowner and bank can be devastating. The homeowner loses a home and destroys his credit. The bank loses thousands in court costs and foreclosure expenses.
The second option is working an Arizona short sale. The advantages of doing an Arizona short sale or Phoenix short sale is coming up with a win-win solution for all parties. For example, when homeowners complete a short sale in Arizona, they have effectively stopped a foreclosure from taking place. And they have significantly lessened the damage to their credit. As far as the bank is concerned, an Arizona short sale has prevented them from repossessing a home. Repossessing a home or foreclosing on a home can cost banks tens of thousands of dollars.
Furthermore, banks are in the business of lending money, not owning homes.
So how does a homeowner qualify for doing an Arizona short sale or Phoenix short sale? This answer will vary greatly depending on the mortgage company at hand. Every bank has different policies and guidelines when negotiating Arizona short sales and Phoenix short sales. For example, some banks will require the homeowner to be 3 months behind before they will even consider allowing an Arizona short sale. Yet, other banks will allow Phoenix short sales even if the homeowner is current with mortgage payments.
Generally speaking, to do an Arizona short sale, banks will require the proof of financial hardship. This can include loss of job, divorce, overwhelming medical bills, and other various financial stressors. Furthermore, the bank will require that the home be listed with a licensed real estate agent. This is usually done to verify the value of the home. Homeowners are typically not allowed to try and negotiate and/or sell the homes themselves when doing an Arizona short sale or Phoenix short sale. In conclusion, if you feel that you can no longer afford your home, and you owe more than what it’s worth, consult with a licensed real estate agent or attorney regarding an AZ short sale.
Reed Lattin
http://www.articlesbase.com/real-estate-articles/need-help-with-an-arizona-short-sale-or-phoenix-short-sale-698611.html
Miami Real Estate Rental Market - 10 Mistakes Landlords Make
Posted on March 5, 2010
Filed Under real estate property | Leave a Comment
Renting a property in the Miami real estate rental market is more difficult than ever before. The number of potential problem tenants is overwhelming. The landlord must be able to set the correct rental price, advertise and market the property aggressively, collect all deposits, conduct a thorough tenant screening, collect the rent, do evictions, fill out the residential lease and all other pertinent documentation and disclosures, avoid emergency tenants and don’t try to do it yourself.
These are the 10 mistakes landlords make in the Miami real estate rental market.
1. Price - The landlord does not know how to obtain the right rental price. He/she will listen to a family member or friend who is not an expert and will offer the wrong amount. The landlord will lose hundreds of dollars a month if the house is rented for the wrong amount. The Miami real estate agent must obtain comparables of recent rentals in the area in order to determine the best rental price for the property. The comparable property must be similar to the subject property. The rental amount should not be negotiated.
2. Advertising - The landlord will try to save money and not advertise the rental property. This lack of exposure will hurt the landlord deeply. It is very important to advertise the property in all local newspapers, magazines, flyers, etc. The Miami real estate realtor should conduct at least one open house to get the proper property marketing. The property must be listed in the MLS to ensure maximum exposure.
3. Deposit - The desperate landlord will rent the property to the first person that walks in and will not collect any money in deposit. This is a recipe for disaster in the Miami real estate market. Never show that you must rent the property immediately. A three month deposit must be required up front. The third month deposit could be negotiated and paid in installments if needed.
4. Screening - Always obtain a thorough tenant screening investigation for potential tenants. Obtain a credit check, get a police report, call employers, check references, call prior landlords and ask if they would rent to the tenant again and did they pay the rent on time. Make sure the tenant has not been evicted before. Properly screening the tenant is an essential step in Miami real estate property management.
5. Evictions - Delaying or not evicting a tenant fast enough is a tremendously time consuming and costly mistake that will devastate the landlord. The landlord must be prepared to evict if after all the screening the tenant still won’t pay the rent due to lost of job or other unforeseen problems. Evictions must be started immediately. The Miami real estate rental realtor should be familiar with non-paying tenant eviction proceedings.
6. Emergency - Avoid a tenant who must move in immediately. Do not allow the tenant to move in without a full screening and verification being completed. A tenant who must move in right away is usually being evicted or has some other hidden agenda. Check all prior landlord’s references and run an eviction check and a credit check. Don’t allow the tenant to rush you into making a decision.
7. Lease - Never rent month to month or worse never rent the property with no lease at all. Always insist the tenant sign a one year lease and collect at least one month deposit. In today’s Miami real estate rental market a two month deposit plus the current month rent is the norm. All legal and biding documents should be in writing to avoid any misunderstandings. A lease is always required in court to provide repair, terms, and lease expiration and rent determination. All legal documents should be in writing.
8. Occupancy - Never give the tenant possession of the property without signing the lease or without a deposit. Do not give the tenant the keys to place some furniture or other small items inside the property. Tenants have been known to move in the premises before all terms and conditions have been established. Tenants will occupy the property and keys should be delivered only after all the paperwork is signed and all funds have been verified and deposited.
9. Repairs - Don’t allow the tenants to make unnecessary repairs prior to renting the property. Painting and cleaning the property is normal should be done. New refrigerator, new kitchen cabinets, new air conditioner, complete remodeling is not normal and should not be tolerated. Do no rent to tenants that have a long list of things to be repaired. Never allow the tenant to dictate all the terms for repairing the property as a condition of renting.
10. Don’t do it yourself - Always hire a Miami real estate professional do all the work for you. A landlord that tries to save money by doing it yourself will make a costly mistake. Usually the fee is only one month’s rent. Collecting and Evictions services are not included and are charged separately. The money you save by doing it yourself in the beginning will cost you triple in the end.
Landlords must avoid amateur mistakes in Miami real estate property management. Certain rules must be followed in order to rent the property to a good paying tenant who will pay the rent on time and take good care of the property. Most landlords simply do not have the time or the knowledge to properly conduct all the necessary steps in order to ensure renting the property to the best candidate. The best way to prevent non-paying tenants and avoid tenant evictions is by not renting to bad tenants at all. Hiring a Miami real estate professional to rent the property for you is a must.
Hector Lesende
http://www.articlesbase.com/real-estate-articles/miami-real-estate-rental-market-10-mistakes-landlords-make-681690.html
How To Become A Real Estate Agent In Canada
Posted on March 5, 2010
Filed Under Investment Property Listings | 2 Comments
A real estate agent is a fun and lucrative job with many opportunities to advance one’s career. To become a real estate agent, one must be at least eighteen years of age and have a Canadian High School Diploma or equivalent, and speak English. Each province in Canada is responsible for licensing real estate representatives in that province. However, there is a three-step process common to most, with a Board exam unique to each province. British Columbia will not grant a license to anyone with summary convictions until two years after restitution is made. Quebec will not issue a license to someone with a criminal offense in the prior five years. Check with your province of residence for specific local requirements. They can be found in most cases under the provincial Real Estate Commission or Council.
The first step is to complete the requirements for the Initial License. This must be completed within eighteen months. The program is available by correspondence or on-line. Phase one covers the benefits and limitations of a career in real estate, an outline of the requirements for registration as a real estate representative, an overview of the mathematics skills needed, and an indication of the specialties and career options. Phase two introduces the technical aspects of the profession and covers the statutory laws, rules and regulations governing transactions in real estate. Phase three gives a choice of two aspects of real estate; Residential and Industrial Commercial Investment (ICI).
The residential course is completed during eighty hours of classroom time. Practical aspects of real estate are presented through workshops covering the topics of acquiring listings, marketing, qualifying buyers, preparing and presenting offers. The ICI course requires eighty hours of classroom time. A wide variety of workshops cover topics including office, retail, industrial, multi-unit and vacant land practices.
The next step in becoming licensed is to complete a two-year articling period with a licensed broker. During these two years, one must complete three additional courses. Real Property Law is a mandatory course, with optional courses including Principals of Appraisal, Principals of Mortgage Finance, Principals of Property Management, or Real Estate Investment Analysis. There is also a mandatory Phase 3 course. One may renew a license after completing the articling stage and completing these courses.
To maintain a license, one must complete twenty-four hours of Mandatory Continuing Education (MCE) every two years. Other opportunities to advance one’s career are available in Continuing Education Units (CEU). CEU courses offered include: Agency courses, Practical Approach to Agency, Agency for Profit, Agency for Practice, Dealing with Purchaser Agency in the Agreement of Purchase and Sale, Disclosure of the Real Estate Profession, The Broker’s Toolkit: Standards and Compliance, Conflict Resolution Skills, Valuing Diversity; Increase Profits with Multi-cultural Clients, Housing Technology, and Technology for Profit.
If one wishes to become designated in a specialty, the Real Estate Institute of Canada offers several professional certification programs. These include certifications for property management, condominium management, appraisal specialist, and land planning and development.
Real Estate is a large and varied profession with many opportunities for specialization and advancement.
Adriana N
Need Help With An Arizona Short Sale Or Phoenix Short Sale?
Posted on March 3, 2010
Filed Under foreclosure short sale investing | 5 Comments
Do you owe more than what your home is worth? Are you behind on payments and feel that you can’t afford your home anymore? Do you think that you wouldn’t be able to pay a Realtor to sell your home due to not having enough equity? These are all symptoms of being “upside down” in your home. In simple terms, your loan amount is higher than the current market value of your home. You may want to consider negotiating an Arizona short sale.
So what can be done with a situation like this in Phoenix or Arizona? A short sale might be the best solution for your needs. Many people have never heard of the term “Arizona short sale” or “Phoenix short sale”. A short sale in Arizona is when your mortgage company agrees to take a less amount owed on your home in an effort to sell the home before having to foreclose.
Most people who are “upside down” or owe more than their home is worth are left with only 2 options when they can’t afford the payment anymore. The first is foreclosure; obviously no one wants a foreclosure. Believe it or not, that bank doesn’t either. The repercussions of a foreclosure for both the homeowner and bank can be devastating. The homeowner loses a home and destroys his credit. The bank loses thousands in court costs and foreclosure expenses.
The second option is working an Arizona short sale. The advantages of doing an Arizona short sale or Phoenix short sale is coming up with a win-win solution for all parties. For example, when homeowners complete a short sale in Arizona, they have effectively stopped a foreclosure from taking place. And they have significantly lessened the damage to their credit. As far as the bank is concerned, an Arizona short sale has prevented them from repossessing a home. Repossessing a home or foreclosing on a home can cost banks tens of thousands of dollars.
Furthermore, banks are in the business of lending money, not owning homes.
So how does a homeowner qualify for doing an Arizona short sale or Phoenix short sale? This answer will vary greatly depending on the mortgage company at hand. Every bank has different policies and guidelines when negotiating Arizona short sales and Phoenix short sales. For example, some banks will require the homeowner to be 3 months behind before they will even consider allowing an Arizona short sale. Yet, other banks will allow Phoenix short sales even if the homeowner is current with mortgage payments.
Generally speaking, to do an Arizona short sale, banks will require the proof of financial hardship. This can include loss of job, divorce, overwhelming medical bills, and other various financial stressors. Furthermore, the bank will require that the home be listed with a licensed real estate agent. This is usually done to verify the value of the home. Homeowners are typically not allowed to try and negotiate and/or sell the homes themselves when doing an Arizona short sale or Phoenix short sale. In conclusion, if you feel that you can no longer afford your home, and you owe more than what it’s worth, consult with a licensed real estate agent or attorney regarding an AZ short sale.
Reed Lattin
http://www.articlesbase.com/real-estate-articles/need-help-with-an-arizona-short-sale-or-phoenix-short-sale-698611.html
Miami Real Estate - 5 Investing Tips
Posted on March 3, 2010
Filed Under real estate property | Leave a Comment
Real estate investors face many new challenges in today’s Miami real estate market. The investor must be willing to rent the property since flipping is not currently an alternative. The investor must weight in 5 investing factors in order to succeed in real estate investing.
These are the 5 investing tips to consider when buying Miami real estate.
1. Flipping - Flipping is not an option in today’s real estate market. Don’t think that the property will sell quickly and you will double in two months. You will have to rent the property for at least one year. The investor may also list the property for sale while is rented. Make sure there is a clause in the lease that allows you to show the property and that you can cancel the lease when the property is sold.
2. Repairing - The cost of repairing the house should be estimated and included in the price you are willing to pay for the house. Walk away from the property if the cost of repairing is staggering. Hire a professional inspector to insure that there are no repair surprises. Roof and plumbing repairs are always the most expensive. Don’t assume you will get all the money back you spend on repairs when you sell the property.
3. Renting - Renting the property is realistic in this market. Make sure you rent the property for the maximum rent price possible. Be practical; don’t set the rent amount so high that the property won’t be rented for months. Hire a Miami real estate professional to rent the house for you. Make sure a thorough background check, credit report check and eviction search are performed. Collect three months deposit up front in order to help you with repairs costs, eviction costs, plus other miscellaneous expenses.
4. Timing - You must make only cosmetic repairs to the property in order to turn around and rent it immediately. A vacant property which produces no rental income can be a costly mistake. The investor still has to pay mortgage payments, taxes, insurance plus other costs. Usually the buyer is not allowed to make any repairs to the property before the closing so you must wait to start repairing the house. Fixing the property fast and getting rented is essential in order to reduce costs. The timing of renting the property fast is very important.
5. Appreciation - The property will not appreciate in value as fast as in the boom years. It will take at least one year for Miami real estate prices to stabilize. The profit should be made when buying not when selling. Make sure the rent will cover all expenses including mortgage payments, taxes, insurance, and maintenance fees. Don’t buy the property is the projected rent will not cover the expenses and you have a negative cash flow.
Investors have an opportunity not seen in recent years to purchase heavily discounted properties. This opportunity may not last long and will not be seen again anytime soon. The foreclosure and bank reo home prices are low enough and rental prices continue to rise. This combination is very good news for real estate investors. Buying the property at an excellent price and renting fast while producing a positive cash flow is an investor’s dream and a very feasible investing opportunity in the Miami real estate market.
Hector Lesende
http://www.articlesbase.com/real-estate-articles/miami-real-estate-5-investing-tips-715708.html
Good Deals on Gilbert Properties: Tips on How to Find Them
Posted on March 3, 2010
Filed Under Investment Property Listings | Leave a Comment
Good DeaUsing a realtor is one of the best ways to find best deals in great subdivisions such as Power Ranch. You can avail of the product for less than half its market value from the top. Properties are also sold in bundles. This is very appealing to investors today because they can avail of a house for a very low price and profit from it by selling them.
Many thought that this endeavor is just for big time investors. However, small players in the market can also benefit from this. The trick is to know the system. It is also important that they know where to look for cheap properties in Power Ranch. Fortunately, finding these estates is not as difficult as it seems. Your initial solution would be filling your tank and driving around the neighborhood. With some luck, you will be able to spot properties on sale.
Although driving around your car could work, it will cause you a lot of time, effort, and gasoline expenses. In order to find them, you should know where to look. Here are some tips to help you find these properties:
The best places to look are lending organizations and banks. They have list of properties for foreclosure. It is also great because these institutions want to turn the tons of properties they have to cash. They are also very willing to work out a financial scheme so that interested buyers will be able to make the payment.
You can also check business magazines and local newspapers. These materials post up to date listings of properties within the area that are available for sale. They also provide information about the property just in case you do not have enough time to check it out.
Instead of looking for ads, you can create your own. You can post an ad on the above-mentioned instruments or post it on your website, blogs, and other media you can access. This way, those who want to sell their property can contact you. In addition, you can discuss prices with the homeowners directly.
Ask those who are in the business. This is also the best way to get listings. Other investors have access to this information. They also have their own list. The challenge there is how you are going to ask them for listings of homes in Power Ranch. They will surely find you as their competitor. As you may know, most properties are set up for highest bids.
In order to find the best deals, you have to know where to look. There are several ways to find these properties. You can exhaust all resources. However, do not get too excited with the low power sale prices. You may find yourself at the losing end once you check the house.
It is important that in making the purchase you know what to expect. If there are certain damages on the property, be certain that its cost is not more than the amount you paid it for. It is not a worthy investment if you are in the losing end.
Summary:
In the real estate industry, Power Ranch properties have a growing market. If you are an interested investors, you have to learn the system and the process to maximize profitability. One of the things you should learn is where to look for these properties.
Bill Cotter
http://www.articlesbase.com/real-estate-articles/good-deals-on-gilbert-properties-tips-on-how-to-find-them-703781.html
