Many real estate investors used to specialize in picking up foreclosures. Like other investors, we purchased HUD, VA, and bank foreclosures. In the eighties my husband and I ran a HUD repo real estate office. We bought our last foreclosure in 2003.
Why did the foreclosure market dry up?
Besides the economy providing better employment, mortgage lenders softened their treatment of borrowers.
Since mortgage lenders created programs to help home owners in trouble, foreclosure rates have dipped. Delinquent borrowers now can stay in their houses and "work out" their problems.
Among the programs used: restructuring the note terms to fit the borrower's needs; deferring past due payments to the final payoff of the loan; decreases in interest rates; and sales-in-lieu of foreclosure, which give time to delinquent borrowers to sell their properties to pay off the mortgage instead of foreclosure.
Don't waste you money buying real estate investing books and programs on how to make money in foreclosures.
Copyright 2005 Jeanette J. Fisher
How to Make Money Today in Real Estate Investing
Monday, September 26, 2005
Friday, September 23, 2005
How to Make Money (Today) with Fast Flips
Many real estate investing "teachers" advise beginning investors to find many houses and to flip the houses quickly for outrageous profits. Perhaps you've seen the claims of real estate gurus telling you how you can make $30,000 to $50,000 per month without any physical work and for little or no money out of your pocket.
Read the rest of the story: How to Make Money (Today) with Fast Flips
Read the rest of the story: How to Make Money (Today) with Fast Flips
Saturday, September 17, 2005
No Money Down Loans
By Max Hunter
You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.
There are many loan packages available for people with no money to put down on the home or for closing costs. The home loan industry has undergone revolutionary changes over the last ten to twenty years. No longer is it true that you need to put down 10% and have enough money for closing costs in order to buy a home. The simple fact of the matter is that there are home loan packages that can get you in a home with no money down, or very little.
Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal equirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.
But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and
selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.
Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value
of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.
There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.
Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.
Believe it or not, there are loan packages available that combine both of these examples - no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that
this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.
Today's home loan industry is competitive. There are packages available for most people no matter what credit history they have or what funds they have available for the down payment and/or closing costs. Rather than deny your own mortgage application, speak to a mortgage professional to determine if you can begin realizing your dream of homeownership and a brighter financial future.
About the Author: Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at
http://www.homeloanave.com
Source: http://www.isnare.com
You want to buy a home but you do not have money for a down payment or for closing costs? Well, just forget it. At least that is what you have probably been told by people who think they know what they are talking about, but simply do not.
There are many loan packages available for people with no money to put down on the home or for closing costs. The home loan industry has undergone revolutionary changes over the last ten to twenty years. No longer is it true that you need to put down 10% and have enough money for closing costs in order to buy a home. The simple fact of the matter is that there are home loan packages that can get you in a home with no money down, or very little.
Let us first examine the down payment. A down payment is the amount of money towards the purchase price that you pay out of your own pocket. Typically people put between 5% and 10% down on a home when they sign a contract. This is not a legal equirement, but rather an established tradition. If you find a buyer who does not require a down payment on contract and you are approved for a loan with 100% financing, then you need not pay anything out of pocket.
But, just how do you do this? The first thing you need to do is meet with a mortgage professional and get that aspect of the process completed. You will want to have a pre-approval or even a mortgage commitment with contingencies based on home value and
selling price. Armed with this, you will be in a better negotiating position to get a seller to agree to sell their home with no money down. Your lender also may be able to refer you to real estate agents that can help you find a home that you can purchase with no money down. Again, there are no legal obligations to put money down, it is rather just custom and tradition. With the right mortgage lender and real estate agent you will be able to purchase a home without any money out of pocket.
Aside from the down payment you have likely been told that you will not be able to purchase a home without money for closing costs. Closing costs can be anywhere from a couple of thousand dollars to tens of thousands of dollars depending on the value
of the home, the size of the mortgage and other variables. You do not necessarily have to pay closing costs out of your pocket.
There are loan packages available for people that are not able to pay closing costs out of their own pocket. What these packages basically do is inflate the purchase price of the house by the amount of the closing costs and then have the seller pay the closing costs for the buyer with those extra funds. So, for example, if the purchase price of the house is $100,000 and closing costs were calculated to be $4,500 the contract would read that the sale price is $104,500 and would include language that the seller is to pay $4,500 worth of closing costs for the buyer. The seller still gets the $100,000 for the home and the additional amount that was financed goes towards the purchasers closing costs.
Different states have different rules on how the language must read and what closing costs can and cannot be paid by the seller. You will want to make sure you have a full understanding of this process and how this will work under you specific circumstances.
Believe it or not, there are loan packages available that combine both of these examples - no money down and no money for closing costs. The property will need to appraise at a specified amount in order to qualify but the key is understanding that
this very much can be done. It can turn a renter into a homeowner with nothing out of pocket and perhaps even a reduced monthly payment. Mortgage payments can be at or below rent payments depending on the home you pick.
Today's home loan industry is competitive. There are packages available for most people no matter what credit history they have or what funds they have available for the down payment and/or closing costs. Rather than deny your own mortgage application, speak to a mortgage professional to determine if you can begin realizing your dream of homeownership and a brighter financial future.
About the Author: Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at
http://www.homeloanave.com
Source: http://www.isnare.com
Tuesday, September 13, 2005
Hurricane Katrina Boosts Housing Costs Across the U. S.
Tuesday, September 13, 2005
The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.
Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.
Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "
Hurricane Drives up Real Estate Construction Costs
Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.
NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."
The effect of Hurricane Katrina will spread across the U.S. housing market and economy, the National Association of Realtors stated in an announcement today.
Demand for housing in regions surrounding the disaster area caused a spike in apartment, manufactured homes, and houses rentals.
Chief economist for the NAR David Lereah said "Given the general tight inventory of homes available for sale across the country, rebuilding in the region of the Gulf Coast will place additional pressure on overall home prices. As displaced residents try to get back on their feet in new locations, home sales have spiked - along with rental demand - in regions surrounding the disaster zone. "
Hurricane Drives up Real Estate Construction Costs
Lereah also said shortages of building materials, made worse by the need to rebuild in areas hit by Katrina, will increase construction costs.
NAR president Al Mansell said "Housing construction will be insufficient to replace the number of homes destroyed or that will have to be demolished. Apartment vacancies are dwindling and mobile homes will help to address the jump in housing needs."
Friday, September 09, 2005
Simple Home Staging Solutions
The sunlight streaming in makes this dining space feel welcoming. Notice the round table, perfect for signing contracts...
Home Staging Tips
Wednesday, September 07, 2005
10 Real Estate Investing Benefits
1. You don't have to quit your day job to get started.
2. You're the boss.
3. You use other people's money.
4. You establish a hedge against inflation.
5. You can quickly increase your net worth.
6. You save money on taxes compared to other investments
7. You generate cash flow.
8. You can turn over management and enjoy
9. You help improve neighborhoods.
10. You create a fantastic retirement fund independent of other plans you may have.
Let's look at number nine today. You help improve neighborhoods. This real estate investing benefit is my personal favorite. I love fixing up a dump and turning it into a dollhouse.
Every time we improve a horrible property, other neighbors get inspired to paint and landscape. Sometimes we help the neighbors with advice, tools, and even physical labor. Improving the neighborhood does mean that we make more money. But it's the satisfaction of making a difference in people's lives that really pays.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
Get started today investing in real estate.
Subscribe to this blog and get the rest of the story.
2. You're the boss.
3. You use other people's money.
4. You establish a hedge against inflation.
5. You can quickly increase your net worth.
6. You save money on taxes compared to other investments
7. You generate cash flow.
8. You can turn over management and enjoy
9. You help improve neighborhoods.
10. You create a fantastic retirement fund independent of other plans you may have.
Let's look at number nine today. You help improve neighborhoods. This real estate investing benefit is my personal favorite. I love fixing up a dump and turning it into a dollhouse.
Every time we improve a horrible property, other neighbors get inspired to paint and landscape. Sometimes we help the neighbors with advice, tools, and even physical labor. Improving the neighborhood does mean that we make more money. But it's the satisfaction of making a difference in people's lives that really pays.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
Get started today investing in real estate.
Subscribe to this blog and get the rest of the story.
Tuesday, September 06, 2005
Hurricane Help
Now would be a great time to give away home furnishings you've taken out of your fixers. Check to see if you have Habitat for Humanity near you.
This would help you prepare your home for sale and help those who lost their home.
You could also give Habitat for Humanity money. They like that!
Go to http://www.habitat.org
This would help you prepare your home for sale and help those who lost their home.
You could also give Habitat for Humanity money. They like that!
Go to http://www.habitat.org
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Flipping Houses for Gold: Three Tips to Help You Find the Perfect Fixer
By Jeanette Joy Fisher
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
THREE TIPS TO HELP YOU FIND THE PERFECT FIXER
1. Know Your Market
Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
2. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.
3. Know When "Ugly" Means "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free "Design Psychology for Selling Houses" Report
Many real estate investors enjoy "flipping houses," or buying and selling houses quickly for profit. Not all flips are fixers. However, rehabbers make millions turning ugly houses into dollhouses. On the other hand, some inexperienced investors lose money buying houses that just don't turn a profit.
If you're looking to get started investing in real estate by fixing and flipping houses, you'll want to know what type of property to buy.
THREE TIPS TO HELP YOU FIND THE PERFECT FIXER
1. Know Your Market
Your first task, exploring your market, helps you know a bargain house when you spot one. Look at many houses for sale in your area. Keep track of sales and how long the houses take to sell. Ask selling real estate agents about the terms of these sales because this helps you understand how sellers market their property (some of this information is public record). For instance, if a seller paid closing costs for the buyer, did the price rise from the listed price accordingly? Or, did the seller come down on the price and also pay the buyer's costs?
Examine the sales that sell quickly. What home features and financing options prompted the fast sale?
Also, look at model homes. Buyers often buy resale homes because they can't wait for a new home to be finished. However, these buyers like the distinctive features new homes offer. Visit model homes and take notes on how details like a water fountain or a new state-of-the-art appliance makes a house sell itself. When you remodel your fixer, you'll know what attracts buyers and you'll make smart redesign choices.
2. Know When "Ugly" Means "Gold"
When you first start out in your real estate "flipping fixers" business, you'll want to look for houses needing only cosmetic work. Look for houses that just need cleaning up, painting, and new flooring. Use your imagination when viewing these homes. Try to visualize the finished dollhouse as you look at structural features and the surrounding homes. Make offers on the ugliest houses in decent neighborhoods.
Don't be afraid of stinky houses that show horribly. Search for fixers with peeling paint, holes in the wall, stained carpeting, and trash in the yard. Remember, these houses won't look good to most buyers, but other real estate investors see them as gold mines.
3. Know When "Ugly" Means "No thanks"
When you're new to real estate investing, always remember your limitations. Use caution when considering houses that need structural repairs. Some rehabbers replace walls, plumbing, structural beams, sub-flooring, and electrical systems. These experienced real estate investors acquired those skills after years of experience or they have the money to pay for professional help.
If you find a house with structural problems, get estimates from reliable contractors to do the work. If the walls have too many cracks and bumps, you may need to hang new sheet rock or hire a professional plaster refinisher. Check for signs of plumbing problems such as water stains under sinks and loose flooring, and get estimates for professional repair. Take professional estimates into account before deciding whether or not to purchase an investment property. Any big expense decreases your eventual profit.
Turn Yucks into Bucks
Why would anyone want to do this hard work? How much does the average rehabbers make? In Ohio, real estate investors buy houses expecting a profit of about $30,000. In Southern California, many investors make $50,000 to $100,000 on each house.
When you find a garbage-filled, flea-infested house in a family neighborhood, take your bug spray, hold your nose, and get ready to make a difference, in the neighborhood and in your bank account.
You can make a fortune fixing nasty houses. Know your market. Know when "ugly" means profit in your pocket, and when to keep looking for the house with the hidden gold mine.
Copyright © 2005 Jeanette J. Fisher. All rights reserved.
For more articles about finding, financing, fixing and flipping houses, visit Jeanette Fisher's Doghouse to Dollhouse for Dollars website. Learn about decorating to attract buyers. Professor Fisher teaches interior Design Psychology college courses and professional real estate seminars. She also writes books and articles on home staging, credit for buying real estate, and other topics. Free "Design Psychology for Selling Houses" Report
Friday, September 02, 2005
Real Estate Bubble In Korea
South Korea recently announced a package of drastic tax measures aimed at curbing a real estate bubble. To stop speculation in residences and land in the country, they increased capital gains taxes. Investors who own two homes will pay up to 50 percent, up from previous rates of between nine and 36 percent. Investors who own three homes will pay even more, up to 60 percent.
Global credit rating agency Fitch expressed concern about the tax to stop the bubble in Korea. Fitch reports that the real estate bubble is limited to parts of the country. Fitch also said there was no evidence of a serious real estate bubble in Korea, except for affluent Southern Seoul.
I'm glad we invest in Southern California.
© 2005 Jeanette Fisher. All rights reserved.
Global credit rating agency Fitch expressed concern about the tax to stop the bubble in Korea. Fitch reports that the real estate bubble is limited to parts of the country. Fitch also said there was no evidence of a serious real estate bubble in Korea, except for affluent Southern Seoul.
I'm glad we invest in Southern California.
© 2005 Jeanette Fisher. All rights reserved.
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