Want to know how to finance multiple properties?
Press Release: Free Credit Help Offered for Real Estate Investors
Credit expert Jeanette Fisher offers free credit help and advice on how to make money in real estate in her new ebook, "Credit Tips: Turn Your Credit Burdens into Wealth-Building Tools." This free credit help ebook will help people get out of credit card debt and use their credit as a tool to make money.
(PRWEB) December 27, 2005 -- Jeanette Fisher, author of multiple books on credit help, real estate investing, and design psychology, offers her new ebook, "Credit Tips: Turn Your Credit Burdens into Wealth-Building Tools," as a holiday gift to first-time home buyers and real estate investors.
Fisher says she wants to help people eliminate their financial worries so they can be happy. "I spent so many years worrying about money while I was raising our kids that I didn't enjoy my life. I want to alleviate that stress for others and help people see how they can use their credit as a tool, rather than seeing it as a burden."
In her free credit help ebook, Fisher teaches people how to make money with credit. She explains how to repair credit ratings, the truth about credit scores, why people should not waste money on credit repair scams, and how to get financing on a first home or multiple investment properties, including the six qualifications for mortgage financing.
Fisher, who has no traditional retirement fund but now has great real estate assets, was shocked to learn:
85 out of 100 Americans reaching age 65 don't possess as much as $250
Only 2% of Americans nearing retirement have the resources to support themselves
The average American consumer has access to over $12,000 of unsecured credit card debt, but too many suffer from extreme stress over their credit card debt to use it properly
"Many people don't realize that credit card debt can be used as a tool for mortgage financing, if managed appropriately. With the proper knowledge, more people can take advantage of real estate opportunities to build financial security for retirement, in addition to providing great financial freedom during career years," said Fisher.
Fisher researched the best way to strengthen credit specifically for mortgage loans, and offers her advice in this free credit help ebook. This credit help information, used appropriately, will improve credit ratings, while many "credit repair clinics" actually damage individuals' credit ratings.
"Jeanette takes you through a step-by-step process of improving and monitoring your own credit unlike many other books on the subject," said Maria Palma, a Realtor in San Diego. "I thought I knew everything about credit, but I learned many new things after reading this book."
Jeanette Fisher wants people to enter the New Year with more than a plan to reduce credit card debt, but a realistic way to reach achievable goals of financial success. For a limited time, individuals can sign up for this free credit help ebook at www.WorryFreeCredit.com and begin the worthwhile journey to financial freedom.
###
Friday, December 30, 2005
Breaking The Real Estate Bubble Myth
By Luigi Frascati
Bubble? What bubble?
At the root of the Real Estate Bubble Myth is the fact that interest rates are on the rise and the inexplicable truth is that, all of a sudden, everybody is so worried and concerned about it. Interest rates have been steadily on the rise both in the United States and, by reflection, in Canada since mid-2004, so I will leave to psychiatrists and psychologists the arduous task of explaining the newest, interest-rates phobia. I will, however, delve into the reasons as to why interest rates have been on the rise for these past 18 months.
Interest rates are the most important mechanism of Monetary Policy used by Central Banks to expand or reduce the available pool of capital at any given time. Central Banks use this mechanism to control the level of aggregate demand for goods and services, a primary cause of economic fluctuations. By reducing the money stock the cost to the banks for using the available capital is raised and passed on to consumers with a mark-up factor. This, in turn, discourages consumer spending on goods and services and, conversely, stimulates consumer saving. The effects are widespread and reverberate throughout the economic basket including, of course, real estate. What, however, pays to bear in mind is that it is not so much the amount of the increase that is important but, rather, the time given for the economy to adjust. The effect of a one percent interest rate hike in one month is going to be very different – and much more dramatic – than the effect of a one percent rate hike in six months, and this is a fact very well known to both the Federal Reserve System and the Bank of Canada.
So much so, in fact, that David Dodge, the Governor of the Bank of Canada, as well as Alan Greenspan, the outgoing Chairman of the Federal Reserve Bank and Ben Bernanke, the nominee for the Chairman position are all proponents of gradual interest rates increases. Prof. Bernanke in particular, in fact, has gone even as far as postulating an inflation-targeting approach designed to keep inflation in check at 2 percent over two years. All number-crunchers out there, therefore, consider this: the posted annualized U.S. rate of inflation calculated monthly for November, 2005 using the Consumer Price Index published by the Bureau of Labor Statistics is 3.46 percent, so all the Feds are talking about is a –1.46 percent inflation-targeting reduction programme over two years. That amount should be easy enough for everyone to absorb and it certainly does not look nearly as ominous as the doomsayers are all too fond of depicting.
Contrary to the belief of many ‘bubbleologists’ and the uneducated guesses of ill-informed consumers, a rise in interest rates is actually a welcome variable for the economy and, moreover, it is specifically the tool needed to keep a bubble from bursting. An economic bubble as it is widely known – or perhaps it isn’t – occurs when speculation causes prices to increase, thus producing more speculation and subsequent price increases. The bubble bursts when prices of goods are so absurdly high that consumers either refuse or cannot afford to purchase, thus sending demand tumbling down. As real estate markets in North America have seen more than a fair share of speculation in recent times, it follows that a cooling-off trend through higher interest rates will have the beneficial effect of consolidating market wealth achieved thus far. The bubble would be likely to burst if no pressure were applied on speculation, thus increasing prices even further and causing demand to lower and finally collapse. Allowing the economy to get an even footing through a slowdown of capital appreciation and, at the same time, allowing real wages to catch up is exactly the tonic needed for a healthy foundation. Higher interest rates, moreover, promote domestic saving and attract foreign capitals thus reinforcing both the Greenback and the Loonie, another beneficial factor in finance albeit not in trade.
So, what is the prognostication for 2006? Real estate consumers need to look no further than at the prices large developers are asking – and collecting - today for new construction slated for completion by the end of 2006 and beyond. Prices for residential condos in the planning stage or just under construction sold ‘on paper’ today are about 10 percent higher than prices of equivalent existing resale units, which goes a long way to point out where big players think the real estate market is heading. The basis of this buoyance is that consumer confidence is stronger than ever. Just before the Holidays, in fact, the Feds reported that the Index of U.S. Consumer Confidence has risen to 103.8 from 98.3 in November, the second highest level since August, 2005 when the Index reached 105.5, a reflection of lower energy prices and an improved job market environment. Moreover, preliminary estimates already show an 8.7 percent rise in Holidays spending in the United States and a 7.6 percent rise in Canada over the same period last year. There is no valid reason to believe, under the circumstances, that consumer confidence applies to everything but real estate and that an economic bubble would affect only real estate markets and nothing else. Furthermore, Real Estate Boards across Canada and the United States report that inventory levels are ‘seasonally normal’ – an indication that the anticipated glut of housing due to the inability of homeowners to meet mortgage payments has failed to materialize thus far. In fact, those who worry that adjustable-rate mortgages are a potential financial time-bomb ready to explode should be informed that while there has been a surge of new adjustable-rate mortgages over the past twelve months, especially in the United States, they account overall for less than 10 percent of the total existing inventory of mortgages held by banks. Furthermore, many adjustable-rate mortgages have allowed consumers to fix rates up to 10 years, and it is only borrowers of sub-prime mortgages that face monthly-payment adjustments after three years – which therefore means that the problem, if there is a problem, will come due in 2008, not in 2006. Interest rates increases have absolutely no impact whatsoever on the vast majority of mortgagors who have locked in already.
In conclusion, therefore, it certainly appears that the Real Estate Bubble theory belongs more to Greek mythology than the reality of our times. There is in progress right now a reduction of real capital values, which will continue for some time as the direct consequence of the markets taking a breather. This trend is expected to settle real estate markets to new, more commensurate pricing levels before appreciation will surge upwards once again. Where the difference will be seen more likely than not is in the annualized rate of appreciation: gone are the times of twenty percent capital appreciation increases from year to year. As interest rates are steadily, gradually increasing, expectations in economic circles range from a conservative 5 percent to an optimistic 10 percent housing appreciation in value by this time next year. But there is no question that real estate markets still have a way to go to make up for years of decline. Those who theorize the collapse of the housing market by comparing it to the stock market are fundamentally incorrect. At its core the housing market, like the stock market, is all about supply and demand. However, the difference is that investors base their decisions to buy into stocks on future potential whereas investors base their decisions to buy into housing on inherent value. Moreover, externalities as varied as immigration, internal migration trends, marriage trends and cultural precepts as well as generation gaps affect real estate markets whereas they are totally missing in stock markets. As such, real estate markets just do not ‘crash’ like stock markets. There is not going to be in real estate the infamous Black Monday – October 19, 1987 – when the Dow Jones collapsed 22 percent in value in one day. When people buy into stocks there is no guarantee whatsoever that the companies they are buying into will be still in business five, ten, fifteen years down the road. Real estate markets, conversely, are far, far safer.
In the absence, therefore, of external negative influences the likes of wars, terrorist attacks or devastating virulent pandemics – which, on the other hand, would affect the entire economy – and until such time as consumers exhibit confidence and purchasing power the way they have been doing thus far, there is no reason to fear bubbles of any kind anywhere in real estate. Hence, do not expect to hear a popping sound any time soon.
Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.
Article Source: http://EzineArticles.com/?expert=Luigi_Frascati
Bubble? What bubble?
At the root of the Real Estate Bubble Myth is the fact that interest rates are on the rise and the inexplicable truth is that, all of a sudden, everybody is so worried and concerned about it. Interest rates have been steadily on the rise both in the United States and, by reflection, in Canada since mid-2004, so I will leave to psychiatrists and psychologists the arduous task of explaining the newest, interest-rates phobia. I will, however, delve into the reasons as to why interest rates have been on the rise for these past 18 months.
Interest rates are the most important mechanism of Monetary Policy used by Central Banks to expand or reduce the available pool of capital at any given time. Central Banks use this mechanism to control the level of aggregate demand for goods and services, a primary cause of economic fluctuations. By reducing the money stock the cost to the banks for using the available capital is raised and passed on to consumers with a mark-up factor. This, in turn, discourages consumer spending on goods and services and, conversely, stimulates consumer saving. The effects are widespread and reverberate throughout the economic basket including, of course, real estate. What, however, pays to bear in mind is that it is not so much the amount of the increase that is important but, rather, the time given for the economy to adjust. The effect of a one percent interest rate hike in one month is going to be very different – and much more dramatic – than the effect of a one percent rate hike in six months, and this is a fact very well known to both the Federal Reserve System and the Bank of Canada.
So much so, in fact, that David Dodge, the Governor of the Bank of Canada, as well as Alan Greenspan, the outgoing Chairman of the Federal Reserve Bank and Ben Bernanke, the nominee for the Chairman position are all proponents of gradual interest rates increases. Prof. Bernanke in particular, in fact, has gone even as far as postulating an inflation-targeting approach designed to keep inflation in check at 2 percent over two years. All number-crunchers out there, therefore, consider this: the posted annualized U.S. rate of inflation calculated monthly for November, 2005 using the Consumer Price Index published by the Bureau of Labor Statistics is 3.46 percent, so all the Feds are talking about is a –1.46 percent inflation-targeting reduction programme over two years. That amount should be easy enough for everyone to absorb and it certainly does not look nearly as ominous as the doomsayers are all too fond of depicting.
Contrary to the belief of many ‘bubbleologists’ and the uneducated guesses of ill-informed consumers, a rise in interest rates is actually a welcome variable for the economy and, moreover, it is specifically the tool needed to keep a bubble from bursting. An economic bubble as it is widely known – or perhaps it isn’t – occurs when speculation causes prices to increase, thus producing more speculation and subsequent price increases. The bubble bursts when prices of goods are so absurdly high that consumers either refuse or cannot afford to purchase, thus sending demand tumbling down. As real estate markets in North America have seen more than a fair share of speculation in recent times, it follows that a cooling-off trend through higher interest rates will have the beneficial effect of consolidating market wealth achieved thus far. The bubble would be likely to burst if no pressure were applied on speculation, thus increasing prices even further and causing demand to lower and finally collapse. Allowing the economy to get an even footing through a slowdown of capital appreciation and, at the same time, allowing real wages to catch up is exactly the tonic needed for a healthy foundation. Higher interest rates, moreover, promote domestic saving and attract foreign capitals thus reinforcing both the Greenback and the Loonie, another beneficial factor in finance albeit not in trade.
So, what is the prognostication for 2006? Real estate consumers need to look no further than at the prices large developers are asking – and collecting - today for new construction slated for completion by the end of 2006 and beyond. Prices for residential condos in the planning stage or just under construction sold ‘on paper’ today are about 10 percent higher than prices of equivalent existing resale units, which goes a long way to point out where big players think the real estate market is heading. The basis of this buoyance is that consumer confidence is stronger than ever. Just before the Holidays, in fact, the Feds reported that the Index of U.S. Consumer Confidence has risen to 103.8 from 98.3 in November, the second highest level since August, 2005 when the Index reached 105.5, a reflection of lower energy prices and an improved job market environment. Moreover, preliminary estimates already show an 8.7 percent rise in Holidays spending in the United States and a 7.6 percent rise in Canada over the same period last year. There is no valid reason to believe, under the circumstances, that consumer confidence applies to everything but real estate and that an economic bubble would affect only real estate markets and nothing else. Furthermore, Real Estate Boards across Canada and the United States report that inventory levels are ‘seasonally normal’ – an indication that the anticipated glut of housing due to the inability of homeowners to meet mortgage payments has failed to materialize thus far. In fact, those who worry that adjustable-rate mortgages are a potential financial time-bomb ready to explode should be informed that while there has been a surge of new adjustable-rate mortgages over the past twelve months, especially in the United States, they account overall for less than 10 percent of the total existing inventory of mortgages held by banks. Furthermore, many adjustable-rate mortgages have allowed consumers to fix rates up to 10 years, and it is only borrowers of sub-prime mortgages that face monthly-payment adjustments after three years – which therefore means that the problem, if there is a problem, will come due in 2008, not in 2006. Interest rates increases have absolutely no impact whatsoever on the vast majority of mortgagors who have locked in already.
In conclusion, therefore, it certainly appears that the Real Estate Bubble theory belongs more to Greek mythology than the reality of our times. There is in progress right now a reduction of real capital values, which will continue for some time as the direct consequence of the markets taking a breather. This trend is expected to settle real estate markets to new, more commensurate pricing levels before appreciation will surge upwards once again. Where the difference will be seen more likely than not is in the annualized rate of appreciation: gone are the times of twenty percent capital appreciation increases from year to year. As interest rates are steadily, gradually increasing, expectations in economic circles range from a conservative 5 percent to an optimistic 10 percent housing appreciation in value by this time next year. But there is no question that real estate markets still have a way to go to make up for years of decline. Those who theorize the collapse of the housing market by comparing it to the stock market are fundamentally incorrect. At its core the housing market, like the stock market, is all about supply and demand. However, the difference is that investors base their decisions to buy into stocks on future potential whereas investors base their decisions to buy into housing on inherent value. Moreover, externalities as varied as immigration, internal migration trends, marriage trends and cultural precepts as well as generation gaps affect real estate markets whereas they are totally missing in stock markets. As such, real estate markets just do not ‘crash’ like stock markets. There is not going to be in real estate the infamous Black Monday – October 19, 1987 – when the Dow Jones collapsed 22 percent in value in one day. When people buy into stocks there is no guarantee whatsoever that the companies they are buying into will be still in business five, ten, fifteen years down the road. Real estate markets, conversely, are far, far safer.
In the absence, therefore, of external negative influences the likes of wars, terrorist attacks or devastating virulent pandemics – which, on the other hand, would affect the entire economy – and until such time as consumers exhibit confidence and purchasing power the way they have been doing thus far, there is no reason to fear bubbles of any kind anywhere in real estate. Hence, do not expect to hear a popping sound any time soon.
Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.
Article Source: http://EzineArticles.com/?expert=Luigi_Frascati
Wednesday, December 28, 2005
Real Estate Investing Articles
Check out "Submit Your New Article.com" for new real estate and credit help articles.
Friday, December 23, 2005
3 FREE Real Estate Investing Teleseminars
1. Credit Help for Financing Multiple Investment Properties
FREE! Our gift to our newsletter readers.
"Make 2006 Your Most Profitable Yet!" Teleseminar
Worry-Free FREE! Credit Teleseminar
2. "How to Get Started Investing in Real Estate Teleseminar" No schemes, get the truth about getting started for beginning real estate investors.
3. "Are You Serious About Wanting To Sell Your Home or Investment Houses for Top Dollar?" FREE Home Selling Help Teleseminar
FREE! Our gift to our newsletter readers.
"Make 2006 Your Most Profitable Yet!" Teleseminar
Worry-Free FREE! Credit Teleseminar
2. "How to Get Started Investing in Real Estate Teleseminar" No schemes, get the truth about getting started for beginning real estate investors.
3. "Are You Serious About Wanting To Sell Your Home or Investment Houses for Top Dollar?" FREE Home Selling Help Teleseminar
Wednesday, December 21, 2005
Real Estate Mortgage Loan Checklist
Real Estate Mortgage Loan: How to Prepare Yourself to Save Money
Prepare yourself to save money on your real estate mortgage loans with this checklist: Documentation Required for Real Estate Mortgage Loans. Whether you want to buy your first home or many investment properties to build wealth, this checklist will help you save money on loan costs. ***You need FREE Adobe Reader to open.
Real Estate Mortgage Loan: How to Prepare Yourself to Save Money
###
Prepare yourself to save money on your real estate mortgage loans with this checklist: Documentation Required for Real Estate Mortgage Loans. Whether you want to buy your first home or many investment properties to build wealth, this checklist will help you save money on loan costs. ***You need FREE Adobe Reader to open.
Real Estate Mortgage Loan: How to Prepare Yourself to Save Money
###
Monday, December 19, 2005
New Website Resource for Investors
If you want to invest in real estate out of your area, here's a website designed to help investors connect around the country.
For new investors looking to break into the real estate investment industry, Money4Investors.com is a useful tool for locating money for fixer uppers, finding wholesalers, making contact with realtors that specialize in investment property, tracking down title companies to handle transactions, and looking for properties. The site is also a great place to strengthen your knowledge in the industry with real estate investment articles, online chat forums, daily news, and other resources.
Also, the new site welcomes your real estate listings and links.
Check out Money4Investors.com. Enjoy real estate investing!
For new investors looking to break into the real estate investment industry, Money4Investors.com is a useful tool for locating money for fixer uppers, finding wholesalers, making contact with realtors that specialize in investment property, tracking down title companies to handle transactions, and looking for properties. The site is also a great place to strengthen your knowledge in the industry with real estate investment articles, online chat forums, daily news, and other resources.
Also, the new site welcomes your real estate listings and links.
Check out Money4Investors.com. Enjoy real estate investing!
Saturday, December 17, 2005
How to Start Investing in Real Estate
I've received quite a few emails asking the same question: "How do I start investing in real estate?"
If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.
If you don't currently own your own home, that's the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.
Homeowners Are Real Estate Investors
Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.
However, if you split your mortgage payments with other people, you don't have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!
How to Begin Real Estate Investing
Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:
1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.
2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don't need to put a down payment into a new home to live in.
3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.
4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!
You can make money investing in real estate. Make a plan of action and get started real estate investing.
Copyright © Jeanette J. Fisher
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
For free credit advice and free ebook "Credit Tips for Mortgage Financing," see Free Credit Help Information
For real estate investing information, see Real Estate Investing Information
If you want to make money investing in real estate, you have to begin with a plan. Here are some ways to get started investing in real estate. Choose a plan that works for you.
If you don't currently own your own home, that's the best place to start. Many people never buy a home because they think they have to have perfect credit or a lot of money down. Talk to a mortgage loan officer. You may be surprised that you can buy a home with little money down.
Homeowners Are Real Estate Investors
Any home owner in reality becomes a real estate investor. Whether home owners want to stay in their home for life or just a few years, their home should make them money. Many families only own one home at a time, but they keep moving up. Some of these families have made money from their homes by taking out the equity to pay bills. Other families bought more expensive homes, which went up in value more than the first home. For instance, a family bought a home for $105,000, sold the home for $230,000 and then bought a home for $300,000. The more expensive home went up in value the next year more than the first home. You can build your real estate wealth just by owning one home.
However, if you split your mortgage payments with other people, you don't have to pay for all this equity on your own. Your tenants will help you make the payments and over time can actually buy the property for you!
How to Begin Real Estate Investing
Many investors start with a home to live in and then save money for a down payment for their first investment property. Here are some ways to skip the savings years, which most people never accomplish:
1. Refinance. If your home has gone up in value, refinance your home and use the equity for a down payment on an investment house. You must have sufficient monthly income to pay any negative between the rental income and the new mortgage payment. Some home owners have been able to purchase more than one investment house from one refinance transaction.
2. Move. Another way beginning real estate investors get their first investment is to buy a new home and rent out their first home. If you have great credit, you don't need to put a down payment into a new home to live in.
3. Sell and Move. You can sell your home and buy two houses. Use your equity to put more down on the investment house than your personal home.
4. Buy a vacation or second home. Our cabin tripled in value in three years. We refinanced the cabin to buy more houses and also kept funds to pay for the mortgage, twice. The cabin pays us to enjoy it!
You can make money investing in real estate. Make a plan of action and get started real estate investing.
Copyright © Jeanette J. Fisher
Jeanette Fisher teaches how to get out from under credit card debt, how to use credit to make money, and six ways to build strong credit to finance your first home and multiple investment properties.
For free credit advice and free ebook "Credit Tips for Mortgage Financing," see Free Credit Help Information
For real estate investing information, see Real Estate Investing Information
Wednesday, December 07, 2005
Learn How to Clean Your Fixers Faster
Do you want to learn some professional speed cleaning tips?
Cleaning tips article by Mary Findley helps you prepare for holiday parties. Get some invaluable cleaning tips to help you speed through your dirty fixer houses.
Speed Cleaning Tips!
Cleaning tips article by Mary Findley helps you prepare for holiday parties. Get some invaluable cleaning tips to help you speed through your dirty fixer houses.
Speed Cleaning Tips!
Thursday, December 01, 2005
Learning Annex, Los Angeles
Join us for a fun and informative evening...
Interior Design Psychology for Top-Dollar Home Sales
with Jeanette Joy Fisher
Course 850CLA, Section A
Monday, January 16, 2006 from 06:45 PM to 09:30 PM
Location: Westside
Doghouse to Dollhouse for Dollars:
Don't just compete with other home sellers- Get buyers to compete with each other for your home! Whether you're selling 1 home or 20, discover how to make more money while spending less for home improvements.
Design Psychology-expert Jeanette Joy Fisher will teach you about the only home-selling system to reveal interior design secrets that go after your target buyer.
You'll learn how to:
* Use 5 new strategies to fix houses
* Spend $5,000 less on the average fixer
* Give houses the designer's touch that entices buyers to pay more
* Use Design Psychology for home staging
* Sell houses in bidding wars - for more than the asking price.
Discount Applies: Take 5.00 off this course for enrolling on the web!
Interior Design Psychology for Top-Dollar Home Sales
with Jeanette Joy Fisher
Course 850CLA, Section A
Monday, January 16, 2006 from 06:45 PM to 09:30 PM
Location: Westside
Doghouse to Dollhouse for Dollars:
Don't just compete with other home sellers- Get buyers to compete with each other for your home! Whether you're selling 1 home or 20, discover how to make more money while spending less for home improvements.
Design Psychology-expert Jeanette Joy Fisher will teach you about the only home-selling system to reveal interior design secrets that go after your target buyer.
You'll learn how to:
* Use 5 new strategies to fix houses
* Spend $5,000 less on the average fixer
* Give houses the designer's touch that entices buyers to pay more
* Use Design Psychology for home staging
* Sell houses in bidding wars - for more than the asking price.
Discount Applies: Take 5.00 off this course for enrolling on the web!
Sunday, November 27, 2005
Do-It-Yourself LLC Formation: Easy and Legal
(Many questions in our recent Q & A Teleclass related to LLCs. Here is some more information relating to states other than Nevada.)
Do-It-Yourself LLC Formation: Easy and Legal
By Stephen Nelson
you've decided you need an LLC for your real estate investing or small business. But the attorney wants several hundred dollars or more to fill out the paperwork. Isn't there a cheaper way to set up an LLC? You bet. You can do it yourself.
An LLC formation, by design, is very straight forward. To set up an LLC, you file articles of LLC formation or articles of organization with the state government agency in charge of corporations and limited liability companies. This document is sometimes a simple, one-page form. Typically, the document can also be a type-written list of descriptive bits about new LLC (the name of the LLC, the person performing the LLC formation, and so on).
Different states have different names for the offices or agencies that process the LLC formation articles, but the agency or office is usually fairly easy to locate through a web search. Typically, the agency or office is connected with the state's secretary of state office and is named something like "Corporation Division" or "Corporations Division." Note that some states (including Washington state where I live) let you file your articles of formation or articles of organization online.
States may also have additional setup requirements beyond simply filing the LLC formation articles. Some states such Arizona require that public notice be given in a newspaper. Some states such as New York require an operating agreement. Which raises an important point: It's really an excellent idea to have an operating agreement written up to describe how the LLCs owners, or members, relate to each other and to the LLC. Attorneys even recommend that single-member LLCs should have an operating agreement because the operating agreement, if honored, improves the liability protection.
After the state accepts your articles of LLC formation and you complete any other state requirements, you're done with your LLC formation.
Bellevue WA tax CPA Stephen L. Nelson is the author of both Quicken for Dummies and QuickBooks for Dummies and an adjunct tax professor for Golden Gate University's graduate tax school.
Article Source: http://EzineArticles.com/?expert=Stephen_Nelson
Do-It-Yourself LLC Formation: Easy and Legal
By Stephen Nelson
you've decided you need an LLC for your real estate investing or small business. But the attorney wants several hundred dollars or more to fill out the paperwork. Isn't there a cheaper way to set up an LLC? You bet. You can do it yourself.
An LLC formation, by design, is very straight forward. To set up an LLC, you file articles of LLC formation or articles of organization with the state government agency in charge of corporations and limited liability companies. This document is sometimes a simple, one-page form. Typically, the document can also be a type-written list of descriptive bits about new LLC (the name of the LLC, the person performing the LLC formation, and so on).
Different states have different names for the offices or agencies that process the LLC formation articles, but the agency or office is usually fairly easy to locate through a web search. Typically, the agency or office is connected with the state's secretary of state office and is named something like "Corporation Division" or "Corporations Division." Note that some states (including Washington state where I live) let you file your articles of formation or articles of organization online.
States may also have additional setup requirements beyond simply filing the LLC formation articles. Some states such Arizona require that public notice be given in a newspaper. Some states such as New York require an operating agreement. Which raises an important point: It's really an excellent idea to have an operating agreement written up to describe how the LLCs owners, or members, relate to each other and to the LLC. Attorneys even recommend that single-member LLCs should have an operating agreement because the operating agreement, if honored, improves the liability protection.
After the state accepts your articles of LLC formation and you complete any other state requirements, you're done with your LLC formation.
Bellevue WA tax CPA Stephen L. Nelson is the author of both Quicken for Dummies and QuickBooks for Dummies and an adjunct tax professor for Golden Gate University's graduate tax school.
Article Source: http://EzineArticles.com/?expert=Stephen_Nelson
Tuesday, November 22, 2005
Is money holding you back from creating your real estate portfolio?
Learn how to improve your credit so you can make money using other people's money.
Join our FREE Credit Help! Teleseminar to find out what it takes to improve your credit so you can finance multiple investment properties. Learn what it takes to get investment property loans to build wealth.
Watch as I Guide You Through the Entire Process...
If you can talk on the phone at the same time you go online, you will be able to watch my PowerPoint presentation used in my college seminars.
This class doesn't give you the same information as "credit repair clinics" who can damage your credit. Because so many of my students needed credit improvement to finance property, I researched the best way to strengthen credit specifically for mortgage loans.
Read more about it:
Free Credit Help Teleseminar
Happy Thanksgiving!
Jeanette Fisher
Worry Free Credit Help Information
Real Estate Investing Information
Tuesday, November 08, 2005
Flip or Hold?
In response to your questions about taxes, I am not a tax expert. However, we like to use the 1031 exchange if we sell more than one property in a year.
Expert Cary Losson tells you more about the 1031 exchange:
More Return On Equity For Your Investment Property Dollar
Few would deny that real estate is a solid investment. It
provides an attractive combination of stability, reliable cash
flow, preservation of principal and capital appreciation.
However, many investment property owners nearing retirement find
themselves in a quandary. They are equity rich, but cash poor,
with increases in the value of their property far outpacing
income growth. They also are often tied down by the day-to-day
issues of property management and, particularly in cities like
San Francisco, California, shackled to the constraints of rent
(and eviction) control. In fact, San Francisco is home to some
of the lowest cash return on equity in the state's real estate
marketplace, which is somewhat counter-intuitive given
California's ever-booming property market.
The obvious answer is to sell the property and unleash the
dormant equity, but that can be problematic. These investors
face the reality of prohibitive capital gains taxes and
recaptured depreciation, as well as the task of identifying an
alternate investment venue; or locating, acquiring and financing
suitable replacement property in the time period allowed, taking
advantage of tax deferral under IRS code section 1031.
An ideal solution for many investment property owners may be to
reinvest the proceeds from the sale of their property and
utilize a subsequent 1031 exchange into a tenancy-in-common (TIC)
ownership type, also known as co-ownership of real estate (CORE)
interest in a suitable replacement property.
1031 exchanges, also known as Starker exchanges or tax-deferred
exchanges, permit owners to sell investment property and defer
tax payments by reinvesting the proceeds into another investment
property (or investment properties). In order to completely
defer the payment of tax, among other things, the replacement
property must be of equal or greater value and all the equity
from the sold property must be reinvested in the new property.
The marriage of 1031 exchange and TIC/CORE allows investors not
only to defer their capital gains taxes but also to upgrade
their investment real estate.
TIC/CORE is a way of sharing ownership of property among two or
more persons whereby each tenant holds an undivided interest in
the property. Tenants-in-common may own interests of differing
sizes. TIC/CORE investors are on the title and considered
separate owners of the real estate. They share pro rata in the
income, tax benefits and appreciation of the property. Their
TIC/CORE interest can be purchased, sold, gifted, bequeathed by
will or inherited; and it is subject to property taxes, gift tax,
and estate and inheritance taxes in the same manner as any
property held in sole ownership. With a TIC/CORE property, each
of up to thirty-five investors have the opportunity to own an
undivided fractional ownership interest in an investment-grade
property, such as an office building, shopping mall, apartment
complex or industrial property, costing anywhere from $10
million to $150-plus million.
The benefits of investing in TIC/CORE properties are
substantial. Such properties employ professional asset and
property management, relieving the investor of day-to-day tenant
headaches. More important, investors often receive greater cash
flow and overall returns than they had in their previous sole
ownership property. Typically, many people receive between 2-3
percent of their equity in their property in rental income. By
selling this property and placing the equity into a larger
investment-grade property, they can potentially experience
annualized cash flow from 6-8 percent, paid monthly, and 12-16
percent overall return on their investment. Also compelling is
that TIC/CORE exchange investors can diversify among several
property types, and geographic locations through fractionalized
ownership, while still enjoying 1031 exchange benefits on each
amount. Thus, investors can potentially reduce risk in their
overall real estate portfolio.
Investors seeking to exchange for a TIC/CORE property are best
advised to work with a financial advisor experienced in 1031
exchanges. Such advisors work closely with top real estate
providers, who give the investor access to the best properties
available. In addition, many TIC/CORE opportunities have
pre-arranged, non-recourse financing in place, which is perfect
for investors working within the 1031 exchange time frame.
Numerous hours of upfront investigation, evaluation, due
diligence and life cycle planning transpires before a property
is offered to an investor group. Investors faced with only a
45-day window to identify a suitable replacement property to
complete a 1031 exchange can select a suitable project with
confidence.
Given the tax deferral, institutional-grade quality of the
property, professional property management and pre-arranged,
non-recourse financing aspects, a 1031 exchange replacement
property structured as tenancy-in-common ownership can be a very
wise and profitable solution. It allows the investor to maintain
everything they like about real estate (monthly income,
preservation of principal, capital appreciation, etc.), while
eliminating most of the hassles of property ownership.
(c) 2005, 1031 Exchange Options. Reprint rights granted so long
as the article and by-line are reprinted intact and all links
made live. This article is neither an offer to sell nor an
offer to buy real estate or securities. There are material risks
associated with the ownership of real estate. You must be an
accredited investor. Securities offered through Sigma Financial
Corporation, Member NASD/SIPC.
Cary Losson is the Founder and President of 1031 Exchange Options. A luminary in the TIC/CORE 1031 exchange
marketplace, Mr. Losson is frequently quoted in journals and
periodicals concerned with investment property issues and
advice. For more resources to assist in your learning:
http://www.1031exchangeoptions.com/resources.html
Expert Cary Losson tells you more about the 1031 exchange:
More Return On Equity For Your Investment Property Dollar
Few would deny that real estate is a solid investment. It
provides an attractive combination of stability, reliable cash
flow, preservation of principal and capital appreciation.
However, many investment property owners nearing retirement find
themselves in a quandary. They are equity rich, but cash poor,
with increases in the value of their property far outpacing
income growth. They also are often tied down by the day-to-day
issues of property management and, particularly in cities like
San Francisco, California, shackled to the constraints of rent
(and eviction) control. In fact, San Francisco is home to some
of the lowest cash return on equity in the state's real estate
marketplace, which is somewhat counter-intuitive given
California's ever-booming property market.
The obvious answer is to sell the property and unleash the
dormant equity, but that can be problematic. These investors
face the reality of prohibitive capital gains taxes and
recaptured depreciation, as well as the task of identifying an
alternate investment venue; or locating, acquiring and financing
suitable replacement property in the time period allowed, taking
advantage of tax deferral under IRS code section 1031.
An ideal solution for many investment property owners may be to
reinvest the proceeds from the sale of their property and
utilize a subsequent 1031 exchange into a tenancy-in-common (TIC)
ownership type, also known as co-ownership of real estate (CORE)
interest in a suitable replacement property.
1031 exchanges, also known as Starker exchanges or tax-deferred
exchanges, permit owners to sell investment property and defer
tax payments by reinvesting the proceeds into another investment
property (or investment properties). In order to completely
defer the payment of tax, among other things, the replacement
property must be of equal or greater value and all the equity
from the sold property must be reinvested in the new property.
The marriage of 1031 exchange and TIC/CORE allows investors not
only to defer their capital gains taxes but also to upgrade
their investment real estate.
TIC/CORE is a way of sharing ownership of property among two or
more persons whereby each tenant holds an undivided interest in
the property. Tenants-in-common may own interests of differing
sizes. TIC/CORE investors are on the title and considered
separate owners of the real estate. They share pro rata in the
income, tax benefits and appreciation of the property. Their
TIC/CORE interest can be purchased, sold, gifted, bequeathed by
will or inherited; and it is subject to property taxes, gift tax,
and estate and inheritance taxes in the same manner as any
property held in sole ownership. With a TIC/CORE property, each
of up to thirty-five investors have the opportunity to own an
undivided fractional ownership interest in an investment-grade
property, such as an office building, shopping mall, apartment
complex or industrial property, costing anywhere from $10
million to $150-plus million.
The benefits of investing in TIC/CORE properties are
substantial. Such properties employ professional asset and
property management, relieving the investor of day-to-day tenant
headaches. More important, investors often receive greater cash
flow and overall returns than they had in their previous sole
ownership property. Typically, many people receive between 2-3
percent of their equity in their property in rental income. By
selling this property and placing the equity into a larger
investment-grade property, they can potentially experience
annualized cash flow from 6-8 percent, paid monthly, and 12-16
percent overall return on their investment. Also compelling is
that TIC/CORE exchange investors can diversify among several
property types, and geographic locations through fractionalized
ownership, while still enjoying 1031 exchange benefits on each
amount. Thus, investors can potentially reduce risk in their
overall real estate portfolio.
Investors seeking to exchange for a TIC/CORE property are best
advised to work with a financial advisor experienced in 1031
exchanges. Such advisors work closely with top real estate
providers, who give the investor access to the best properties
available. In addition, many TIC/CORE opportunities have
pre-arranged, non-recourse financing in place, which is perfect
for investors working within the 1031 exchange time frame.
Numerous hours of upfront investigation, evaluation, due
diligence and life cycle planning transpires before a property
is offered to an investor group. Investors faced with only a
45-day window to identify a suitable replacement property to
complete a 1031 exchange can select a suitable project with
confidence.
Given the tax deferral, institutional-grade quality of the
property, professional property management and pre-arranged,
non-recourse financing aspects, a 1031 exchange replacement
property structured as tenancy-in-common ownership can be a very
wise and profitable solution. It allows the investor to maintain
everything they like about real estate (monthly income,
preservation of principal, capital appreciation, etc.), while
eliminating most of the hassles of property ownership.
(c) 2005, 1031 Exchange Options. Reprint rights granted so long
as the article and by-line are reprinted intact and all links
made live. This article is neither an offer to sell nor an
offer to buy real estate or securities. There are material risks
associated with the ownership of real estate. You must be an
accredited investor. Securities offered through Sigma Financial
Corporation, Member NASD/SIPC.
Cary Losson is the Founder and President of 1031 Exchange Options. A luminary in the TIC/CORE 1031 exchange
marketplace, Mr. Losson is frequently quoted in journals and
periodicals concerned with investment property issues and
advice. For more resources to assist in your learning:
http://www.1031exchangeoptions.com/resources.html
Thursday, October 27, 2005
Oregon bargain property for sale
363 acres located in Southern Oregon, minutes from Eagle
Point. An outdoorsman's paradise. $675,000
Oregon bargain property for sale
Wednesday, October 12, 2005
Investing in Real Estate for Your Retirement (and Now!)
By Ailsa Forshaw
You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good!
In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time.
Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha!
Buy Apartments or Condos
One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that…) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh?
Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement.
I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner.
New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee.
When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter.
Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on.
Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well.
If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible… Man, can't wait to live in the States, again!
Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment.
I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together.
Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore!
The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later.
(I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!)
Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com
Article Source: http://EzineArticles.com/
You've probably heard a lot of opposing information about Investing in Real Estate, which is completely annoying! The straight-forward fact about Real Estate is that it is probably the best and safest investment you'll ever make, especially if you live in it, and that you are far more likely to make money in this market than with any other type of investing. The chances are very slim that you'll wake up one morning and the housing market will have dropped by 40%. Egads! That ain't good!
In general,Real Estate values always go up. There are some Apartments in Calgary (Alberta, Canada) that I wanted my husband to buy (he wouldn't, but that didn't stop me from asking!) about five years ago. Back then, the Apartments were selling for $96,500.00 for a Two Bedroom place, and now that same unit is selling for over $150,000.00. Quite an increase in value, eh? (You're learning how to speak 'Canadian', too!) That's over $50,000.00 in gross profit, for the mathematically challenged (me included!). We sure didn't make that kind of profit in the Stock Market in that span of time.
Now, if that were your Primary Residence (the place you actually live), and you had lived there all that time, you would make that profit tax free. The same profit made on the Stock Market would be subject to regular taxes, which totally sucks, since you were the one to invest in the first place, and you were the one to take the chances, but, them's the laws of the land - what are you gonna do?? That's right, buy Real Estate! Ha,ha!
Buy Apartments or Condos
One of the best bits of financial investment ideas that I ever got was from an old boyfriend of mine, Ben Johnson, the Olympic Runner. (Remember him? Turns out, great guy, bad rap, punished more than any real criminal, very wise business man - funny how the press doesn't focus on that…) Anyway, his idea was to buy 15 apartments and rent them at approximately $1000./month (he lives in Toronto, Canada where the rents are high, if that seems exorbitant to you, or low, if you live in New York, and that seems waaay too cheap! ha,ha!). That would give him a regular 'income' of about $15,000./month, provided that the properties are owned outright. Good idea, eh?
Now, we can't afford that many rental properties, yet, but the idea is a good one. I don't know if he ever actually did that, but he planted a seed in my mind that will allow my husband and I to build a solid foundation for a comfortable retirement.
I happen to be partial to the idea of buying new apartments in a regular Apartment Building as opposed to Town Houses, Duplexes or Single Family Homes, because you don't have to worry about serious repair problems, like a new roof or furnace! Those problems can add up to some serious bills for the Property Owner.
New or well-cared for buildings are unlikely to require repairs within the first five years, and if you purchase in a Condo Development, your renter can pay the Condo Fees, which will cover any major building repairs. You will, of course, be responsible for general up-keep, but even that will be minimal if you have good renters and start with good stuff. If you are reluctant to get into the 'Landlord' game because of the whole 'collecting the rent' thing, you can always hire a Property Management Company. They'll handle everything for you for a relatively small fee.
When you're first looking at Rental Properties, Apartments specifically, try to find one that is relatively inexpensive, and make sure that you are in a financial position to carry all the costs involved if you don't have a renter.
Be careful not to pick up a 'real steal' that needs a huge amount of work - you won't save any money on this one - it could ruin you, financially, too, if there are too many complications in the deal. Again, I prefer new, but an apartment in good repair is fine, too. Only you will know how much you can take on.
Also, check with your Banker or Broker to ensure that you qualify to carry a mortgage on the new property. The Interest Rates are particularly low, right now, so this is a great time to invest in property. The great thing about having rental properties is that not only will you be gaining a perpetual monthly income (the difference between the costs of operation and the rental fee), when you are ready to sell the property, you'll get back all of your initial investment and you'll have the equity spread as well.
If you happen to live in the Property for a couple of years, or so, yourself, then any profit you've made will be tax-free, since it will have been your Primary Residence. Always check with your Accountant to comply with local tax laws. Also, you may be able to hand the property down to your children. Amazingly enough, this is no longer a basic right of a parent in certain countries without some one paying massive amounts of taxes, making it virtually impossible… Man, can't wait to live in the States, again!
Our own plan is to pay off our Mortgage on our Primary Residence, then use the money that we would normally put toward the Mortgage Payment to get a mortgage on a Rental Property - an Apartment.
I like the idea of purchasing a number of apartments on the same floor of an Apartment Building, or at the very least, picking up another apartment in the same building. It seems to me that it would be waaay easier to manage properties if they're close together.
Also, we'd like to have an apartment available for each of our children when they are old enough to move out on their own. They could have the choice of having a room mate, themselves, who would pay them directly for their share of the rent. That way, our children could learn first-hand how to be landlords (Man, I really don't care for that term!) and we wouldn't have to worry about where they're living and whether they have any money for groceries! Scoooore!
The other thing that is key to a comfortable retirement is that the properties you acquire before you retire may be paid off before your actual retirement date, if you have one. If you're living well on your regular income (not including the rental income), then you can put a larger portion of the rental income directly on the Principle of the rental property mortgage. This will give you a higher monthly 'income' later.
(I thought this Ad was really funny!! Of course, It's Great to Be A Landlord, so you can still shoot for that!! ha,ha,ha!)
Ailsa Forshaw is a Writer, Builder, Website Owner & Manager, Teacher, Mother... all in Alberta, Canada. She is Married with Two Lovely Children, and one gorgeous wee dog. Her Website, http://www.buildyourownhouse.ca, is chock full of all sorts of useful & fun information to help anyone become Financially Successful, Slim, Trim, and Happy... what more could you want?? Pop in for a wee visit! http://www.buildyourownhouse.ca http://www.theScottishDiet.com
Article Source: http://EzineArticles.com/
Sunday, October 09, 2005
Interior Design Secrets to Fixing and Flipping Houses for Top Dollar
"Amazing! Discover the breakthrough real estate investing strategy guaranteed to increase your earnings and help you build wealth for your retirement!"
Explore the one-of-a kind real estate investing system that helps you make more investing in real estate. Design Psychology, a new method of fixing houses using interior design helps you sell or rent for top dollar.
Real Estate Seminar
By Request: New seminar added October 15, 2005 10:00 AM - ?, Learning Center, Lake Elsinore This commercial site is one of the Fisher's Dollhouses! See the "after" live!
Doghouse to Dollhouse for Dollars: How to Find and Fix Houses for Fast Flips or Rentals
This special seminar emphasizes Design Psychology Redesign and Home Staging strategies for fixing houses to sell or rent for top dollar. Learn how to:
Determine profit potential on fixers
Use interior design secrets to fix for less with designer touches that look like a million-dollar home
Fix rentals with materials tenants won't damage--and they'll pay more for!
For beginning real estate investors:
* Find your first home, bargain distressed property, or next "doghouse"
* Finance your property even with bad credit without owner financing
* Fix or transform fixers into dollhouses for less
* Flip or market your real estate for top dollar
* Get a vacation or second home for free!
Your investment in this class: $69 and books. Limited enrollment (small classroom) Reserve space. Real estate seminar.
Copyright 2005 Jeanette J. Fisher.
Explore the one-of-a kind real estate investing system that helps you make more investing in real estate. Design Psychology, a new method of fixing houses using interior design helps you sell or rent for top dollar.
Real Estate Seminar
By Request: New seminar added October 15, 2005 10:00 AM - ?, Learning Center, Lake Elsinore This commercial site is one of the Fisher's Dollhouses! See the "after" live!
Doghouse to Dollhouse for Dollars: How to Find and Fix Houses for Fast Flips or Rentals
This special seminar emphasizes Design Psychology Redesign and Home Staging strategies for fixing houses to sell or rent for top dollar. Learn how to:
Determine profit potential on fixers
Use interior design secrets to fix for less with designer touches that look like a million-dollar home
Fix rentals with materials tenants won't damage--and they'll pay more for!
For beginning real estate investors:
* Find your first home, bargain distressed property, or next "doghouse"
* Finance your property even with bad credit without owner financing
* Fix or transform fixers into dollhouses for less
* Flip or market your real estate for top dollar
* Get a vacation or second home for free!
Your investment in this class: $69 and books. Limited enrollment (small classroom) Reserve space. Real estate seminar.
Copyright 2005 Jeanette J. Fisher.
Monday, September 26, 2005
Why Are There So Few Foreclosures?
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
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
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
Subscribe to this blog
Receive notice of new posts to this blog. We don't collect this email information so you will not be pestered. Just enter your email in the top right box. Enjoy!
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.
Friday, August 26, 2005
Home Warranties: Are They Too Good To Be True?
By Donald Lawson
What is a ‘Home Warranty?’
A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.
Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.
Is this too good to be true?
Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.
I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.
Here are a few reasons I’ve seen Home Warranty Companies deny claims
· Lack of regular maintenance
· Pre-Existing conditions
· Questionable ‘Code’ issues
· Components not installed per the manufacturers installation instructions
The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.
You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!
What are my options if my warranty company denies my claim?
I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.
Good Luck and read the fine print on those contracts!
Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com
Article Source: http://EzineArticles.com/
What is a ‘Home Warranty?’
A home warranty is like an insurance policy. In fact, in some states the Insurance Commission may even regulate them. I know in Texas, the Real Estate Commission regulates these companies.
Basically as a homeowner you pay a company a few hundred dollars a year to cover the major appliances and components of your home. If something should go wrong, you call them up and they send a technician out to size up the situation and tell you if you’re covered or not.
Is this too good to be true?
Problems for some consumers usually arise when they have a claim. They may have paid their dues each and every year and believed everything in their home was covered. Then one day in August the A/C goes out and they call the Home Warranty Company who sends a tech out to look at the A/C. "Yep" he says "Your A/C equipment is shot, you're going need a new one." "Good thing I have this warranty" you think. You may soon find out that your warranty will not cover a new A/C because you failed to have it "serviced" each year or because the service tech says the reason it went out was because of a "Pre-existing" condition.
I've seen claims denied for very questionable reasons. Stop and think about it, if they can deny a claim, then that's money in their pocket. Someplace in that fine print I keep telling you to read there is a whole bunch of "we won't warranty it ‘if's’." The Technician who comes to your home may be the one who'll decide whether or not the work will be covered by the warranty. In some instances, these third party contractors who are hired by the warranty companies do not make as much on repairs and replacements on a claim as if you just called them up out of the phonebook. It pays to get several opinions before making a decision.
Here are a few reasons I’ve seen Home Warranty Companies deny claims
· Lack of regular maintenance
· Pre-Existing conditions
· Questionable ‘Code’ issues
· Components not installed per the manufacturers installation instructions
The best way to protect yourself if you plan on purchasing one of these policies is to call the Company and ask them which service provider they use in your area. Then call that service provider and schedule an inspection with them to come out and look at the systems and components in your home to ensure the Home Warranty Policy will cover it. Get it in writing if they says everything will be covered.
You also want to make sure what the Home Warranty will cover and what it doesn't. I've never seen a policy with blanket coverage so don't assume it will 'cover everything in the home' like some real estate agents tell you. Read the fine print!
What are my options if my warranty company denies my claim?
I'm betting that most states regulate these companies some how. Check with your states Attorney Generals Office. They should have all the information you need. You may even be able to file a complaint with the AG's office of your state if you've had a denial of a claim in which you feel is legitimate.
Good Luck and read the fine print on those contracts!
Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a multi-inspector firm in Houston Texas. You can find out more about home warranty's on his website at http://www.best2inspect.com
Article Source: http://EzineArticles.com/
Wednesday, August 17, 2005
Doghouse to Dollhouse for Dollars College Seminar
The college sent out the course catalog late. This left little time for readers to sign up to the class. However, the college just called to say the class is NOT cancelled because people have signed up today.
Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
Tuesday, August 16, 2005
Doghouse to Dollhouse for Dollars book cover
I don't know why the graphic artist changed the orignial cover design for the last print. He decided to add the work "by" infront of my name and no one caught that. Also, the fuzzy edges on the pictures look all right on the book when you see the cover full size. However, the fuzz looks terrible online!
Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?
Look at the cover on Amazon. How did they make the snappy apple green background look like dog-poop brown? I wonder how long it will take to get Amazon to upload the new book cover. And, what color will it be?
Monday, August 15, 2005
Third Print of "Doghouse to Dollhouse for Dollars"
Amazon just ordered my last books. Wierd how they ordered the last ten--just the number we had left! This was after they ordered a huge shipment last week. I wish they would order more books at one time instead of every day or two.
We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.
Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.
http://doghousetodollhousefordollars.com
We sent the file to the publisher today for the updated book. Don't worry if you already bought the book. The content is the same. The new book just has better writing. After writing four more books, my writing improved.
Anyway, there is something that should have been added to Dollhouse that only is in "Sell Your Home for Top Dollar--Fast." I couldn't convince the publisher to add it to the Dollhouse book or Workbook because they want the books to be different. However, I retain the rights to write articles and reports. So if you want the missing information, which helps you sell your dollhouse, email me. If you purchased from Amazon, I won't have your receipt. Just tell me what you liked about the book that proves you read it.
http://doghousetodollhousefordollars.com
New "Doghouse to Dollhouse for Dollars" back cover text
Real Estate/Investing
Prosper in Every Real Estate Market
Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.
Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.
Rise above market trends to create an abundant financial future with Design Psychology
Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions
"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA
'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor
Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.
ISBN/price
copyright 2005 Jeanette J. Fisher
Prosper in Every Real Estate Market
Gain wealth and financial freedom with a unique approach to flipping houses for profit. Most real estate investment strategies limit their profit potential by a "paint & go' approach. Learn to use Design Psychology to transform and sell a house for maximum profit and to finance an investment portfolio worth millions.
Whether you're a beginning or experienced investor, you know the benefits of flipping houses: you work for yourself, set your own hours, take time off between projects, and hope to make some good money. This book leads the way to maximum profit and financial power.
Rise above market trends to create an abundant financial future with Design Psychology
Discover how to:
Find real estate bargains in a saturated market
Finance multiple properties with improved credit
Transform properties to appeal to buyers’ emotions
Market your house to attract top-dollar offers
Create an investment portfolio worth millions
"I wish I had Jeanette's book years ago. I could have made billions instead of millions!" Jackie B., Investor, Newport Beach, CA
'Many investors fix up houses for profit, but not like Jeanette!'
April Strickland, Southern California Realtor
Jeanette Fisher is the author of Sell Your Home for Top Dollar—FAST! Design Psychology for Redesign and Home Staging, and Credit Help! Get the Credit You Need to Buy Real Estate. She has flipped over thirty houses using Design Psychology.
ISBN/price
copyright 2005 Jeanette J. Fisher
Tuesday, August 02, 2005
Doghouse to Dollhouse for Dollars College Seminar
Real estate bubble?
No matter what the market does, you can still flourish in the
real estate business with fixers.
Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:
1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology
This one-of-a kind real estate system comes to you in two
ways:
1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific
Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.
The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.
Forget the typical "clean it up" and "paint it white" advice.
This teleclass helps you:
1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.
Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing
Class size limited so each participant gets the same results
as those taking the college course.
How much is your future worth to you? $150. Guaranteed
Satisfaction.
Yes! I want to get started today creating wealth by real
estate investing!
More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site
Joy to you!
Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780
No matter what the market does, you can still flourish in the
real estate business with fixers.
Discover how to make top dollar investing in real estate.
Spend four fascinating hours with Interior Design Psychology
expert Jeanette Fisher and learn how to:
1. Find bargain houses in Southern California
2. Finance without owner-financing
3. Fix up doghouses and create magical dollhouses
4. Use home staging strategies that buyers wait in line to
bid on
5. Market your property with advertising psychology
This one-of-a kind real estate system comes to you in two
ways:
1. Doghouse to Dollhouse for Dollars College Seminar
Mt San Jacinto College, Menifee campus.
Saturday Aug 20, 9:00 AM to 1:00 PM
$49 Call the college to register. Limited enrollment
(951) 487-6752 ext. 1700, 1701 or 1702
2. If you can't make the Doghouse to Dollhouse for Dollars
college course, sign up for the Teleclass (conference call):
Real Estate Investing Teleclass: Fixing and Flipping
Houses
Mondays: September 5, 12, and 19 5:00 PM Pacific
Discover how to find, finance, fix, stage, and sell for top
dollar.
Learn how to make a fortune flipping houses or hold for your
future.
Explore new real estate investing strategies.
You're guaranteed to learn new ways to invest in real estate.
The secret to top-dollar sales is in the planning and
redesign to make prospective buyers feel like they must
pay you more because they can't live another day without
your home. If you're already flipping houses for extra
income, you'll love the interior design ideas for making more
money.
Forget the typical "clean it up" and "paint it white" advice.
This teleclass helps you:
1. Find bargains in a crowded investor market
2. Finance fixers when banks want to pass
3. Fix houses using Interior Design Psychology
4. Use Home Staging strategies
5. Market for top-dollar selling.
Included with teleclass
• Email Support from Jeanette
• Extra reports not available in the book
• Private Group Discussion Forum, share ideas and learn
from others interested in real estate investing
Class size limited so each participant gets the same results
as those taking the college course.
How much is your future worth to you? $150. Guaranteed
Satisfaction.
Yes! I want to get started today creating wealth by real
estate investing!
More information about Jeanette's books
Doghouse to Dollhouse for Dollars Book Site
Joy to you!
Jeanette Fisher, Design Psychology professor
Joy to the Home
18475 Grand Ave., Lake Elsinore, CA 92530
(951) 678-8780
Monday, August 01, 2005
Beware of "Subject To" Promises
Another real estate writer's mini course, full of promises and fluff, ended with a "lesson" on why you need to buy his book so you can finance multiple properties "subject to." The reason, he said, "because banks won't let you finance more than ten mortgages."
This simply isn't true.
First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.
I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.
Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.
For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.
Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.
Beware of "subject to" promotions. This real estate investing method worked last century, not today.
Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.
Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com
This simply isn't true.
First, banks let you finance as many mortgages as you can pay for. Some banks limit the number of loans made to one person. Experienced real estate investors just move on to another lending institution.
I know one investor who owns more than one hundred single family homes. All have mortgages. He constantly refinances one for the down payment to buy the next. Besides living off the cash flow from his rentals, he also refinances one rental occasionally to take his family on a first-class vacation.
Another investor, my friend who owns the carpet company we use for our fixers, owns more than fifty rentals. None were purchased "subject to" the existing loan. Many were purchased "all cash" for quick closings, with mortgages added later.
For beginning real estate investors, looking for an owner willing to sell their property "subject to" the existing loan adds a frustrating component to the search for a profitable property. Today's savvy home sellers just won't sell to a buyer who can't cash them out.
Of course, some investors offer "subject to" and lease options purchases. But, properties with most of the equity stripped out come with payments too high for the rental income to support.
Beware of "subject to" promotions. This real estate investing method worked last century, not today.
Copyright (c) 2005 Jeanette J. Fisher. All Rights Reserved.
Jeanette Fisher teaches real estate investing and credit college courses. She became a credit expert to help her real estate students buy their dream home and multiple investment properties. Jeanette is the author of "Credit Help! Get the Credit You Need to Buy Real Estate" and other books. For a free report, "Credit Tips for Mortgage Financing," visit the Real Estate Credit Help Center http://recredithelp.com
Sunday, July 31, 2005
Are You Tired of Tenants, Toilets, and Trash?
By Paula Straub
Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti?
Before selling your property, check with your accountant who
will tell you that you will be paying $60,000 in Capital
Gains Tax to Uncle Sam. Your accountant will also tell you
that adding another $20,000 to your income by that sale is
called recaptured depreciation. This will bump you into the
next tax bracket and doom you next April 15th into sending
the IRS a check for maybe another $7,000.
Are you still ready to sell that property?
It looks like that trip to Tahiti is going to be sometime in
the far future!
But wait! You decide to check with your realtor and then
find out about a 1031 exchange to defer your Capital Gains.
Your realtor tells you if you buy another like-kind rental
property of equal or greater value, you won't get hit with
the gains tax on the sale. That is all fine and good, but
it does not really get you out of the headaches associated
with collecting rent, keeping your unit occupied, finding
clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing
toilet. To top this off, now you have to pay more in
property taxes and must charge higher rent.
Hmm--maybe this idea is not the ticket to that South Pacific
paradise either.
This is the dilemma I heard from my financial clients again
and again. They were frustrated and felt trapped in their
current situation. So what is a frustrated income property
owner to do? After a lot of research and roadblocks, I found
the perfect solution that has changed the lives of my
clients and took away stress to bring enjoyment of life.
For anyone who is tired of being a landlord and who owns a
rental/commercial property that has gone up a lot in value,
take heart.
A 1031 exchange into a Tenant In Common Property may be your
answer.
There are very specific rules to follow set by the IRS, and
the entire detailed process is the subject for a future
article, but here's the gist:
1-Sell your current income
property;
2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a
qualified third party) that you intend to do a 1031 exchange
into a Tenant in Common Property;
3-Work with a reputable
company to identify a property that you would like to
purchase an interest in;
4-At the close of escrow, your
proceeds are transferred by the Accommodator to purchase
your proportionate share of a larger "A" rated commercial
building;
5-You may choose a business center, a medical
office building, or similar high-end property; and lastly,
6-You get a deeded interest in this property, so you can
keep it, resell it, pass it to your heirs, or even gift it
to charity upon your death.
The way that this works is all the new fractional owners, or
"Tenants in Common" hire an ace Management Company to handle
all the property management tasks. The company finds and
keeps high quality tenants, does the maintenance and
upgrades, pays the property taxes, and handles all the day
to day crisis that arise. Probably the three most important
factors in this entire process are:
1-Your choice of company
that offers the properties for sale;
2-the Accommodator,
and;
3-the management company.
Make sure each of the three parts is a top notch with proven
track records. Anything less could spell disaster.
When this 1031 option is done properly, your benefits will
be:
Deferral of all Capital Gains,
A monthly contractual income (usually based on 6-7% return
on equity),
Building depreciation for tax savings,
Unlimited property appreciation potential, and
No more headaches of property management.
Good-bye Tenants, Trash and Toilets!
Hello Tahiti!
Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful
business owner, Paula strives to guide clients to financial
independence in the most timely and efficient manner
possible.
(c)Paula Straub - All Rights reserved
=-=-=-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Article Source: http://EzineArticles.com/
By Paula Straub
Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti?
Before selling your property, check with your accountant who
will tell you that you will be paying $60,000 in Capital
Gains Tax to Uncle Sam. Your accountant will also tell you
that adding another $20,000 to your income by that sale is
called recaptured depreciation. This will bump you into the
next tax bracket and doom you next April 15th into sending
the IRS a check for maybe another $7,000.
Are you still ready to sell that property?
It looks like that trip to Tahiti is going to be sometime in
the far future!
But wait! You decide to check with your realtor and then
find out about a 1031 exchange to defer your Capital Gains.
Your realtor tells you if you buy another like-kind rental
property of equal or greater value, you won't get hit with
the gains tax on the sale. That is all fine and good, but
it does not really get you out of the headaches associated
with collecting rent, keeping your unit occupied, finding
clean/classy tenants that won't trash the place, nor does it
keep you from getting that 2am call to fix an overflowing
toilet. To top this off, now you have to pay more in
property taxes and must charge higher rent.
Hmm--maybe this idea is not the ticket to that South Pacific
paradise either.
This is the dilemma I heard from my financial clients again
and again. They were frustrated and felt trapped in their
current situation. So what is a frustrated income property
owner to do? After a lot of research and roadblocks, I found
the perfect solution that has changed the lives of my
clients and took away stress to bring enjoyment of life.
For anyone who is tired of being a landlord and who owns a
rental/commercial property that has gone up a lot in value,
take heart.
A 1031 exchange into a Tenant In Common Property may be your
answer.
There are very specific rules to follow set by the IRS, and
the entire detailed process is the subject for a future
article, but here's the gist:
1-Sell your current income
property;
2-Before the close of escrow, you declare via a Qualified
Intermediary (also called an Accommodator, who is a
qualified third party) that you intend to do a 1031 exchange
into a Tenant in Common Property;
3-Work with a reputable
company to identify a property that you would like to
purchase an interest in;
4-At the close of escrow, your
proceeds are transferred by the Accommodator to purchase
your proportionate share of a larger "A" rated commercial
building;
5-You may choose a business center, a medical
office building, or similar high-end property; and lastly,
6-You get a deeded interest in this property, so you can
keep it, resell it, pass it to your heirs, or even gift it
to charity upon your death.
The way that this works is all the new fractional owners, or
"Tenants in Common" hire an ace Management Company to handle
all the property management tasks. The company finds and
keeps high quality tenants, does the maintenance and
upgrades, pays the property taxes, and handles all the day
to day crisis that arise. Probably the three most important
factors in this entire process are:
1-Your choice of company
that offers the properties for sale;
2-the Accommodator,
and;
3-the management company.
Make sure each of the three parts is a top notch with proven
track records. Anything less could spell disaster.
When this 1031 option is done properly, your benefits will
be:
Deferral of all Capital Gains,
A monthly contractual income (usually based on 6-7% return
on equity),
Building depreciation for tax savings,
Unlimited property appreciation potential, and
No more headaches of property management.
Good-bye Tenants, Trash and Toilets!
Hello Tahiti!
Paula Straub is a Financial Advisor, Insurance Agent and
Mortgage Loan Originator in San Diego, CA. As a successful
business owner, Paula strives to guide clients to financial
independence in the most timely and efficient manner
possible.
(c)Paula Straub - All Rights reserved
=-=-=-=-=-=-=-=-=-=-=--=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=
How much would you pay to save thousands in Capital Gains
Tax? I'll teach you for free in a Teleconference that may
change your life. Sign up at ==> http://www.savegainstax.com
=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
Article Source: http://EzineArticles.com/
Buying a Home: The 5 Biggest Mistakes that a Home Buyer Makes
By Donald Lawson
As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.
Mistake #1: Not using an agent at all or using the Listing Agent as your 'Agent'. Not smart at all. By law, the listing agent is required to keep the Sellers best interest at stake, not yours! Why would anyone enter into a relationship handicapped like this?
I’m not aware of any state that makes a Buyer pay for their Agent. The Buyers agent normally gets paid from a cut of the Listing fees or the commissions are split.
If you choose wisely, you can put a trained real estate professional on your side for free! A true Buyers agent can help you negotiate a contract, fly through the mountain of paperwork, help you find the right home and help you schedule the needed inspections and appointments necessary when you do find your dream home.
Mistake #2: Relying on the Home Inspector your Agent recommends: I’m still amazed at how many people will blindly take the advice and recommendation of their Agent, or of the Listing Agent, when choosing an Inspector.
The agents have a financial stake in seeing the deal go through. Why risk the conflict of interest by solely relying on their choice of Inspectors? With a little research you can find your own home inspector who will have your best interest at stake. Don’t know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here:
http://www.ashi.org
Mistake #3: Putting up “Non-Refundable” earnest money. This is like giving the Sellers a check and saying, “Here, you keep this. Even if we don’t buy your home, you can keep our money”. That’s just plain stupid. If your Agent recommends it, find another agent because they don’t have your best interest at stake.
I’ve seen Sellers request up to a $20,000 non-refundable earnest money check. Luckily my Client had a good agent and she told the Listing Agent “That is the most ridiculous thing I’ve ever heard. We’ll give you the standard $1000 refundable earnest check. Take it or find another Buyer.” The Seller accepted rather quickly since her home had been sitting on the market for 5 months.
Mistake #4: Falling in love with the home: “Earth to love struck home Buyer, they’re building more homes every day!” The one group of consumers I see getting taken advantage of the most are those that “fall in love” with a home.
They will accept any terms set by a Seller. They will buy the home and tell themselves “It just needs a little work, I can do that myself.” Even though they have never picked up a hammer in their life. They let their “love” cloud their vision and Judgement and end up paying hefty ‘stupid tax’.
Mistake #5: Buying more home than what they can afford. There is a rule of thumb that says you should not buy a home that cost you more per month that 20 to 25% of your take home pay. I rarely see anyone following that rule of thumb today.
What I do see is consumers buying homes that take a large part of their monthly income. This leaves little room in their finances for emergency’s, furniture, vacations, investing, etc. With the relaxed lending requirements, people are buying way more home than what they can realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.
I’m not a real estate agent, broker or attorney, nor am I a financial consultant nor do I claim to be an expert in any of these fields. The above views are my own and have been obtained from experiences in the Home Inspection field. Always consult with your financial planner and/or Real Estate Agent before making any decisions.
Article Source: http://EzineArticles.com/
As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.
Mistake #1: Not using an agent at all or using the Listing Agent as your 'Agent'. Not smart at all. By law, the listing agent is required to keep the Sellers best interest at stake, not yours! Why would anyone enter into a relationship handicapped like this?
I’m not aware of any state that makes a Buyer pay for their Agent. The Buyers agent normally gets paid from a cut of the Listing fees or the commissions are split.
If you choose wisely, you can put a trained real estate professional on your side for free! A true Buyers agent can help you negotiate a contract, fly through the mountain of paperwork, help you find the right home and help you schedule the needed inspections and appointments necessary when you do find your dream home.
Mistake #2: Relying on the Home Inspector your Agent recommends: I’m still amazed at how many people will blindly take the advice and recommendation of their Agent, or of the Listing Agent, when choosing an Inspector.
The agents have a financial stake in seeing the deal go through. Why risk the conflict of interest by solely relying on their choice of Inspectors? With a little research you can find your own home inspector who will have your best interest at stake. Don’t know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here:
http://www.ashi.org
Mistake #3: Putting up “Non-Refundable” earnest money. This is like giving the Sellers a check and saying, “Here, you keep this. Even if we don’t buy your home, you can keep our money”. That’s just plain stupid. If your Agent recommends it, find another agent because they don’t have your best interest at stake.
I’ve seen Sellers request up to a $20,000 non-refundable earnest money check. Luckily my Client had a good agent and she told the Listing Agent “That is the most ridiculous thing I’ve ever heard. We’ll give you the standard $1000 refundable earnest check. Take it or find another Buyer.” The Seller accepted rather quickly since her home had been sitting on the market for 5 months.
Mistake #4: Falling in love with the home: “Earth to love struck home Buyer, they’re building more homes every day!” The one group of consumers I see getting taken advantage of the most are those that “fall in love” with a home.
They will accept any terms set by a Seller. They will buy the home and tell themselves “It just needs a little work, I can do that myself.” Even though they have never picked up a hammer in their life. They let their “love” cloud their vision and Judgement and end up paying hefty ‘stupid tax’.
Mistake #5: Buying more home than what they can afford. There is a rule of thumb that says you should not buy a home that cost you more per month that 20 to 25% of your take home pay. I rarely see anyone following that rule of thumb today.
What I do see is consumers buying homes that take a large part of their monthly income. This leaves little room in their finances for emergency’s, furniture, vacations, investing, etc. With the relaxed lending requirements, people are buying way more home than what they can realistically afford. If you go down this road, chances are that you’ll grow to hate this home. You should own a home, the home should not own you.
I’m not a real estate agent, broker or attorney, nor am I a financial consultant nor do I claim to be an expert in any of these fields. The above views are my own and have been obtained from experiences in the Home Inspection field. Always consult with your financial planner and/or Real Estate Agent before making any decisions.
Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (454) and Texas (#5824) and currently owns V.I.P. Home Inspections in Houston Texas. V.I.P. Home Inspections is a multi-inspector firm that inspects both commercial and residential inspections. You can find out more by clicking on this link to his site: http://www.best2inspect.com
Article Source: http://EzineArticles.com/
Sunday, July 24, 2005
How to Find and Buy a Bargain House with Little or No-Money Down
by Jeanette Fisher
Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.
Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.
A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.
A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.
How to Find a Distressed Seller
Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.
Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.
How to Buy a Distressed House
You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.
If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.
Copyright (c) 2005 Jeanette J. Fisher-All Rights Reserved.
Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com
For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com
Real estate investors know how to make money buying distressed houses. Investors recognize that bargain houses offer the best way to make a return quickly.
Bargain houses also open up a way for first-time home buyers to buy with little or no savings for a down payment. If you want to reduce the amount of down payment needed to buy a house, get the seller to pay your closing costs. In a hot seller's market when more buyers compete for the same properties, you either need to increase the purchase price to cover your closing costs or find a distressed seller.
A bargain house may be in bad shape or the seller may be distressed. Home sellers who suffer from problems such as job loss or transfer, divorce, death, pending foreclosure, and lack of funds sell fast for less. Often these sellers offer incentives to the buyer, like paying the buyer's closing costs.
A distressed house may also be a "doghouse," a dump, or a fixer. Owners of fixers are not always distressed sellers, but they may still feel pressure to get rid of their problem house.
How to Find a Distressed Seller
Look for listings and advertisements with the words "make offer," "fixer," "must sell immediately," "handyman's special," "divorce," "owner transferred," and "owner help with closing costs." If you see two or three of these clues, you know you've found an anxious seller.
Discovering the seller's problem and finding a solution is the key to buying a bargain property from a seller under pressure. Perhaps the seller needs to close quickly; in this case, a buyer ready with financing in place with a lender who acts fast can make an offer with a short escrow. Prepare yourself for quick action by getting your credit and financing in order before you go home shopping.
How to Buy a Distressed House
You must understand that a property also needs to qualify for financing. Extreme fixers in poor condition don't qualify for a 100% purchase loan. However, houses needing only cosmetic upgrades easily pass a lender's inspection. If you find a great bargain fixer, make sure that the house will pass health and safety codes. Sometimes home buyers will help the seller with little changes that make a house "loanable." Minor changes like covering exposed wires with switch plate covers, which cost as little as 19 cents, and repairing broken windows can make the all the difference in passing inspection.
If you need help with your closing costs, find yourself a distressed seller under pressure to sell. Not only will you get help with funds needed to buy a home, you might also get a great purchase price and be on your way to making your future investing in real estate.
Copyright (c) 2005 Jeanette J. Fisher-All Rights Reserved.
Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars, and other books teaches real estate. She loves to help first-time home buyers get into a home. For a free 30-page "Credit Tips for Mortgage Financing" report, go to http://recredithelp.com
For more information for beginning real estate investors, see http://www.doghousetodollhousefordollars.com
Tuesday, July 19, 2005
What Does Your Dream Home Look Like?
Many women I know got into the flipping houses business because they desired a dream home. My friend Ruth bought and sold many fixers on her way to buying her dream home on the St Johns River in Palatka. Of course she also had to make enough money to retire early so she could move to Florida.
Another friend of mine sold her dream home to buy five fixers. She told me that her dream home really didn't make her happy and that it took too much time to keep up, even with hired help. After flliping her five houses, she bought an oceanfront condo and went travelling.
Maybe your dream isn't a home at all. Whatever your goals, if you want to make extra money flipping houses, transform your fixers into your buyers dream home.
Copyright (C) 2005 Jeanette J. Fisher. All Rights Reserved.
Doghouse to Dollhouse for Dollars:
Using Design Psychology to Increase Real Estate Profits
Sell Your Home for Top Dollar FAST!
Design Psychology for Redesign and Home Staging
Saturday, July 09, 2005
Las Vegas Real Estate Investment Club
Join the Las Vegas Investment Club and benefit from over 100 members.
I'll being speaking about how to build strong credit for financing multiple investment properties July 14 at the Gold Coast Hotel & Casino, 4000 West Flamingo Road.
Thursday 7/14, 7-9:30 PM
Get the credit you need to buy your dream home or financial future.
I'll being speaking about how to build strong credit for financing multiple investment properties July 14 at the Gold Coast Hotel & Casino, 4000 West Flamingo Road.
Thursday 7/14, 7-9:30 PM
Get the credit you need to buy your dream home or financial future.
Friday, July 08, 2005
Apple Green Book Cover and Cars
My husband insisted that I get a new car because we no longer need a van to drive children around. New cars cost as much as a down payment on a house that makes us money, so I was reluctant to purchase a car that loses money.
I test drove the new Caddie and Lincoln. Ho-hum. Then my children told us about a car they saw the same color as my Doghouse to Dollhouse for Dollars book cover. I love apple green colors. My new Mustang convertible is FUN to drive, and it matches my book cover!
I test drove the new Caddie and Lincoln. Ho-hum. Then my children told us about a car they saw the same color as my Doghouse to Dollhouse for Dollars book cover. I love apple green colors. My new Mustang convertible is FUN to drive, and it matches my book cover!
Thursday, June 30, 2005
New Format for Doghouse to Dollar$ Workbook
Order your companion book to "Doghouse to Dollhouse for Dollars," Doghouse to Dollar$ Workbook: Turn "Yucks into Bucks" Investor's Guide, now available in softcover.
Although most of my students prefer the notebook format, you now have a choice. Because the paperback edition costs so much less to print, email for a discount price.
See the contents.
Enjoy investing!
Jeanette
Although most of my students prefer the notebook format, you now have a choice. Because the paperback edition costs so much less to print, email for a discount price.
See the contents.
Enjoy investing!
Jeanette
Tuesday, June 28, 2005
Kitchen Makeover Ideas
Money spent updating a kitchen rewards you better than money spent on any other upgrade to your fixer. When it comes to kitchens, buyers continue to demand improvement in efficiency and style, and they usually want the kitchen fully remodeled and operational when they move into a new home. However, find out how to fix your kitchen up without too much expense.
Read full article Kitchen Makeover Ideas for Preparing Your Home for Sale
Read full article Kitchen Makeover Ideas for Preparing Your Home for Sale
Sunday, June 26, 2005
Credit Help for Real Estate Financing: Five Categories of Your Credit Score
Get the Credit You Need to Buy Multiple Investment Properties
1. Payment History -- 35%
The number of accounts paid as agreed and a good payment history give you a higher score.
Negative points lower credit scores because of 30 days, 60 days, and 90 days late on any debt. The dollar amount of these delinquencies also impacts credit scores. Severity of delinquency, how long past due, and number of delinquencies are nasty remarks on some credit reports. The older these derogatory items are, the less impact they have on credit scores. You do not want any present delinquent accounts when applying for a real estate loan.
Never, ever pay a mortgage payment more than 30 days late. Lenders do not like to see any delinquencies on real estate loans.
Adverse public records, such as bankruptcy, judgments, suits, liens, and wage attachments negatively dominate credit history. Any of these items cleared up helps improve a credit score, unless the item is aged. The older the derogatory entry, the less the impact. Any activity on a particular item makes the item update and therefore, remain on the report for another seven years. So, if a derogatory item is more than four or five years old, don’t bother with it.
Collection items unfavorably shape credit payment history. The more age a collection account has, the less its consequence. Most mortgage companies require that collection accounts be cleared before lending. If this is your problem, see “Help with Collections” later in section six.
2. Proportional Amounts Owed -- 30%
The amount owed on a credit line compared to the available credit is termed the proportional amount owed. With a credit card limit of $5,000, the score will be higher if less than $2,500 is owed. Even better is to owe less than 1/3rd of the available credit or less than $1501. To have the highest proportional amounts owed scoring factor, owing less than ten percent of the available balance gives you the best possible rating. On the other hand, owing over $4,500 on an account with a limit of $5,000 lowers your score significantly, especially if you have too many credit cards and other loans with high balances compared to available balances.
Tip: Call your creditor and ask them to raise your available credit as long as you don’t use this credit. This raises your proportional amount owed scoring factor.
To raise your credit score dramatically and quickly, pay down as much as possible on each credit line instead of paying off one credit card at a time. If a credit card is totally paid off, it does not compute in the proportional amount owed; therefore your rating does not benefit from paying balances in full. On the contrary, paying balances in full takes the account out of the equation and you don’t get higher points for the low proportional amount owed.
3. Length of Credit History -- 15%
Any account over twelve months with a good payment history helps a credit score if the balance is not too high compared to the available credit. Six months is the minimum length of time to establish credit. The time since accounts opened and the time since account activity are factored into the length of credit history.
4. New Credit -- 10%
Whenever you apply for a new credit line, your score receives a negative hit. The more inquiries you generate, the lower your score. Obtaining new credit lowers your credit score. We only apply for credit when applying for mortgages. Every time we get a new mortgage, our credit scores go down.
Never finance a new car or get a new line of credit when you are getting ready to finance property. Wait until after closing to apply for further financing. Be aware that after your new loan shows up on your credit report, your financing abilities shrink. If you need credit funds for any reason, including renovation costs for your new house, apply for this after closing your property purchase.
5. Types of Credit Used -- 10%
The different types of loans taken out by consumers affect credit scores. Credit assessors view mortgage accounts more favorably than consumer finance accounts. Too many installment loans, auto loans, and department store credit cards affect credit negatively. To improve your credit score, pay off installment loans and consumer finance company accounts after you have lowered your proportional amounts owed. Then pay off your department store retail accounts. Keep balances as low as possible on home equity lines of credit because they often count as consumer finance accounts instead of mortgages. Achieve higher credit scores by having only mortgage accounts and a couple of major credit cards with low balances.
Note: In addition to credit scores, lenders consider length of time at residence and employment as well as income and education.
Do You Need a Credit Score of 700?
Don’t believe it! We have so many loans; our scores are in the mid 600s, but we buy and sell property all the time. Even with a perfect payment history, we can’t get our scores up because we have so many real estate loans with high balances remaining. We often need to get “B” loans instead of “A” loans, which means we pay higher tax-deductible interest, points, and fees.
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Real Estate Credit Help Center
Doghouse to Dollhouse for Dollars Books
1. Payment History -- 35%
The number of accounts paid as agreed and a good payment history give you a higher score.
Negative points lower credit scores because of 30 days, 60 days, and 90 days late on any debt. The dollar amount of these delinquencies also impacts credit scores. Severity of delinquency, how long past due, and number of delinquencies are nasty remarks on some credit reports. The older these derogatory items are, the less impact they have on credit scores. You do not want any present delinquent accounts when applying for a real estate loan.
Never, ever pay a mortgage payment more than 30 days late. Lenders do not like to see any delinquencies on real estate loans.
Adverse public records, such as bankruptcy, judgments, suits, liens, and wage attachments negatively dominate credit history. Any of these items cleared up helps improve a credit score, unless the item is aged. The older the derogatory entry, the less the impact. Any activity on a particular item makes the item update and therefore, remain on the report for another seven years. So, if a derogatory item is more than four or five years old, don’t bother with it.
Collection items unfavorably shape credit payment history. The more age a collection account has, the less its consequence. Most mortgage companies require that collection accounts be cleared before lending. If this is your problem, see “Help with Collections” later in section six.
2. Proportional Amounts Owed -- 30%
The amount owed on a credit line compared to the available credit is termed the proportional amount owed. With a credit card limit of $5,000, the score will be higher if less than $2,500 is owed. Even better is to owe less than 1/3rd of the available credit or less than $1501. To have the highest proportional amounts owed scoring factor, owing less than ten percent of the available balance gives you the best possible rating. On the other hand, owing over $4,500 on an account with a limit of $5,000 lowers your score significantly, especially if you have too many credit cards and other loans with high balances compared to available balances.
Tip: Call your creditor and ask them to raise your available credit as long as you don’t use this credit. This raises your proportional amount owed scoring factor.
To raise your credit score dramatically and quickly, pay down as much as possible on each credit line instead of paying off one credit card at a time. If a credit card is totally paid off, it does not compute in the proportional amount owed; therefore your rating does not benefit from paying balances in full. On the contrary, paying balances in full takes the account out of the equation and you don’t get higher points for the low proportional amount owed.
3. Length of Credit History -- 15%
Any account over twelve months with a good payment history helps a credit score if the balance is not too high compared to the available credit. Six months is the minimum length of time to establish credit. The time since accounts opened and the time since account activity are factored into the length of credit history.
4. New Credit -- 10%
Whenever you apply for a new credit line, your score receives a negative hit. The more inquiries you generate, the lower your score. Obtaining new credit lowers your credit score. We only apply for credit when applying for mortgages. Every time we get a new mortgage, our credit scores go down.
Never finance a new car or get a new line of credit when you are getting ready to finance property. Wait until after closing to apply for further financing. Be aware that after your new loan shows up on your credit report, your financing abilities shrink. If you need credit funds for any reason, including renovation costs for your new house, apply for this after closing your property purchase.
5. Types of Credit Used -- 10%
The different types of loans taken out by consumers affect credit scores. Credit assessors view mortgage accounts more favorably than consumer finance accounts. Too many installment loans, auto loans, and department store credit cards affect credit negatively. To improve your credit score, pay off installment loans and consumer finance company accounts after you have lowered your proportional amounts owed. Then pay off your department store retail accounts. Keep balances as low as possible on home equity lines of credit because they often count as consumer finance accounts instead of mortgages. Achieve higher credit scores by having only mortgage accounts and a couple of major credit cards with low balances.
Note: In addition to credit scores, lenders consider length of time at residence and employment as well as income and education.
Do You Need a Credit Score of 700?
Don’t believe it! We have so many loans; our scores are in the mid 600s, but we buy and sell property all the time. Even with a perfect payment history, we can’t get our scores up because we have so many real estate loans with high balances remaining. We often need to get “B” loans instead of “A” loans, which means we pay higher tax-deductible interest, points, and fees.
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Real Estate Credit Help Center
Doghouse to Dollhouse for Dollars Books
Wednesday, June 22, 2005
Bloomberg News Radio
After Bloomberg News called me for an interview about "flipping houses" last week, Amazon ordered more Doghouse to Dollhouse for Dollars books than ever.
I was the one woman on the show between a US senator and Steve Forbes. Seems like the big guys want to know how to make money flipping fixers.
Also, we went to Philadelphia where I was on TV talking about flipping houses with Mary Caraccioli, Executive Producer and an Emmy Award-winning television journalist, for "Money Matters Today."
My husband and our son enjoyed at least five Philly cheese steak sandwiches during our vacation in Philly. If you've never been to Philadelphia, GO! You really feel like you're in America!
I was the one woman on the show between a US senator and Steve Forbes. Seems like the big guys want to know how to make money flipping fixers.
Also, we went to Philadelphia where I was on TV talking about flipping houses with Mary Caraccioli, Executive Producer and an Emmy Award-winning television journalist, for "Money Matters Today."
My husband and our son enjoyed at least five Philly cheese steak sandwiches during our vacation in Philly. If you've never been to Philadelphia, GO! You really feel like you're in America!
Saturday, June 11, 2005
New Design Psychology Website
Check out the Real Estate section with articles, teleclasses, and information on home staging vacant houses. http://www.designpsych.com/realestate.htm
Wednesday, June 01, 2005
How to Buy Fixers for Profit
Do you dream of becoming a multi-millionaire real estate investor? Here's how to get started: find a bargain "fixer-upper" owned by a worried seller.
Why Home Sellers Accept Rock-Bottom Prices
Home owners' troubles often keep them from staying on top of their home's maintenance. Circumstances such as divorce, job loss, devastating illness, assorted addictions, or other personal problems quickly overcome distraught home owners, forcing them to sell. These home owners can't keep up with monthly mortgage payments and repairs because of financial or physical limitations. When these troubles arise, their home becomes a low priority and sometimes goes into foreclosure.
"Triple-D" Deals
Home sellers with three problems offer breaks to beginning real estate investors. A "Triple-D" deal is a Doghouse, involved in a Divorce, and in Default. The label "doghouse" comes from Southern California real estate agents who described the worst fixers this way. You may have seen ads for "ugly" houses. These houses maybe "tired" and need only cosmetic work in order to compete for resale with other homes in the area.
The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who don't have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.
As you look through the classified ads or at real estate listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale phrase. Ask your buyer’s agent to list these words when scanning the Multiple Listing Service for you.
Once you've found a property that you can turn from doghouse to dollhouse, find out the seller's problem and then offer a solution. Distraught sellers commonly experience financial difficulties and need cash as soon as possible. Therefore, if you're ready to close rapidly, you'll be set to negotiate a lower sales price.
How to Complete a Fast Sale
Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers. Sellers with problems love it when an offer to purchase says "close in 10-14 days."
Use a trusted closing or escrow agent who knows what they’re doing; one not over-worked. Even in today’s busy market, you can find an officer who can help you close in two weeks, when your financing is prearranged.
Real estate investing should be fun as well as profitable. Enjoy your property search!
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Why Home Sellers Accept Rock-Bottom Prices
Home owners' troubles often keep them from staying on top of their home's maintenance. Circumstances such as divorce, job loss, devastating illness, assorted addictions, or other personal problems quickly overcome distraught home owners, forcing them to sell. These home owners can't keep up with monthly mortgage payments and repairs because of financial or physical limitations. When these troubles arise, their home becomes a low priority and sometimes goes into foreclosure.
"Triple-D" Deals
Home sellers with three problems offer breaks to beginning real estate investors. A "Triple-D" deal is a Doghouse, involved in a Divorce, and in Default. The label "doghouse" comes from Southern California real estate agents who described the worst fixers this way. You may have seen ads for "ugly" houses. These houses maybe "tired" and need only cosmetic work in order to compete for resale with other homes in the area.
The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who don't have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.
As you look through the classified ads or at real estate listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale phrase. Ask your buyer’s agent to list these words when scanning the Multiple Listing Service for you.
Once you've found a property that you can turn from doghouse to dollhouse, find out the seller's problem and then offer a solution. Distraught sellers commonly experience financial difficulties and need cash as soon as possible. Therefore, if you're ready to close rapidly, you'll be set to negotiate a lower sales price.
How to Complete a Fast Sale
Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers. Sellers with problems love it when an offer to purchase says "close in 10-14 days."
Use a trusted closing or escrow agent who knows what they’re doing; one not over-worked. Even in today’s busy market, you can find an officer who can help you close in two weeks, when your financing is prearranged.
Real estate investing should be fun as well as profitable. Enjoy your property search!
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.
Monday, May 30, 2005
Investing in Real Estate Profitably: Eliminating the Need for Mortgage Insurance
In an earlier article, we presented various options for ensuring that you have positive cash flow when holding rental houses, by minimizing loan payments. One problem which we now can address is to how to eliminate the need for paying mortgage insurance.
Any loan with less than 20% down payment will include or require mortgage insurance. It may be included in the rate (which is called "Lender Paid Mortgage Insurance" or LPMI) or more commonly it is a separate itemized item, but in either case you must pay it.
If you want to pay less than 20% down, the best way to get around mortgage insurance is to finance your purchases with two loans, a first and a second mortgage. For example, the first mortgage is commonly 70%, 75% or 80% of the purchase price and the second mortgage makes up the difference to 90% or 95% of the purchase price. You can get both mortgages from the same lender, but usually you can find better rates on the second mortgage from a lender that specializes in second mortgages. An independent loan broker can put this together for you nicely.
Both mortgages typically close escrow at the same time and both lenders are fully aware of each other. For simplicity, put both loans in the same escrow and sign them both at the same time. If you want to be tricky and try to use two mortgages to get to 100% financing (i.e. no down payment), there are ways to do this, but we do not recommend it and it is not within the scope of this article.
The second mortgage is typically at a higher interest rate than the first, but not always. For example, there are some very competitive home equity lines of credit (HELOCs) with rates only a fraction above the prime interest rate. You have to have good credit scores to qualify, but if you do, they are very attractive. The problem with a HELOC based on the prime rate is that it assumes the prime rate does not get too high before you pay it off. As you may recall from the early 1980s, the prime occasionally does go sky high and it could happen again.
There is a particularly wide variation in the interest rates for second mortgages from various lenders. Moreover, if your credit, income, and assets are not ideal, you may not be qualified for certain second mortgage programs, so it may be more difficult to find a second mortgage at a good rate that you do qualify for. It is very important therefore to ask your independent loan broker to check out various options and to shop the rates. He/she should be comparing at least half a dozen different second mortgage programs.
When you use two loans as described above, it is usually advisable to have an interest-only or minimum payment loan for the first mortgage. This allows you to focus on paying down the principle on second mortgage over a period of say 5 years, if you can afford it. If you cannot do that, than obtain a second mortgage that also has a 5-year fixed period and an interest only option. You are then covered with predictable and low payments for at least 5 years.
This article has reviewed a strategy for improving your cash flow when purchasing investment rental homes -- namely, using two loans to eliminate mortgage insurance. There is much more to say on this topic. So keep an eye out for additional articles by the same authors on this and related topics.
Copyright (c)2005 Jeanette J. Fisher and Robert S. Kramarz. All rights reserved.
Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," the only book to reveal interior design secrets on how to make top dollar investing in real estate. For real estate and interior design psychology books, articles, tips, and newsletters: http://www.doghousetodollhousefordollars.com.
Robert S. Kramarz is a loan officer for a major loan brokerage. He has over 20 years experience in finance and business management and comes from a family a long background in real estate investing and banking. He specializes in providing financing for purchase of investment real estate. He can be reached by email. Further information is available at the website http://www.sweetloan.info.
Any loan with less than 20% down payment will include or require mortgage insurance. It may be included in the rate (which is called "Lender Paid Mortgage Insurance" or LPMI) or more commonly it is a separate itemized item, but in either case you must pay it.
If you want to pay less than 20% down, the best way to get around mortgage insurance is to finance your purchases with two loans, a first and a second mortgage. For example, the first mortgage is commonly 70%, 75% or 80% of the purchase price and the second mortgage makes up the difference to 90% or 95% of the purchase price. You can get both mortgages from the same lender, but usually you can find better rates on the second mortgage from a lender that specializes in second mortgages. An independent loan broker can put this together for you nicely.
Both mortgages typically close escrow at the same time and both lenders are fully aware of each other. For simplicity, put both loans in the same escrow and sign them both at the same time. If you want to be tricky and try to use two mortgages to get to 100% financing (i.e. no down payment), there are ways to do this, but we do not recommend it and it is not within the scope of this article.
The second mortgage is typically at a higher interest rate than the first, but not always. For example, there are some very competitive home equity lines of credit (HELOCs) with rates only a fraction above the prime interest rate. You have to have good credit scores to qualify, but if you do, they are very attractive. The problem with a HELOC based on the prime rate is that it assumes the prime rate does not get too high before you pay it off. As you may recall from the early 1980s, the prime occasionally does go sky high and it could happen again.
There is a particularly wide variation in the interest rates for second mortgages from various lenders. Moreover, if your credit, income, and assets are not ideal, you may not be qualified for certain second mortgage programs, so it may be more difficult to find a second mortgage at a good rate that you do qualify for. It is very important therefore to ask your independent loan broker to check out various options and to shop the rates. He/she should be comparing at least half a dozen different second mortgage programs.
When you use two loans as described above, it is usually advisable to have an interest-only or minimum payment loan for the first mortgage. This allows you to focus on paying down the principle on second mortgage over a period of say 5 years, if you can afford it. If you cannot do that, than obtain a second mortgage that also has a 5-year fixed period and an interest only option. You are then covered with predictable and low payments for at least 5 years.
This article has reviewed a strategy for improving your cash flow when purchasing investment rental homes -- namely, using two loans to eliminate mortgage insurance. There is much more to say on this topic. So keep an eye out for additional articles by the same authors on this and related topics.
Copyright (c)2005 Jeanette J. Fisher and Robert S. Kramarz. All rights reserved.
Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," the only book to reveal interior design secrets on how to make top dollar investing in real estate. For real estate and interior design psychology books, articles, tips, and newsletters: http://www.doghousetodollhousefordollars.com.
Robert S. Kramarz is a loan officer for a major loan brokerage. He has over 20 years experience in finance and business management and comes from a family a long background in real estate investing and banking. He specializes in providing financing for purchase of investment real estate. He can be reached by email. Further information is available at the website http://www.sweetloan.info.
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