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How to Make a Profit from a Sale

Photo from: flickr.com/photos/7542656@N02Real estate investing means that buying and selling for a profit. Before selling, it is best to make repairs and make a date on the calendar for times of viewing. A good selling plan will make it easier to sell the property. Do not fall into the web of looking for the top dollar sale as this is a ‘get-rich-quick’ attitude that has been the downfall of a lot of investors.

Establish a reason for selling. If the reason is because of an emergency and there is an immediate need to sell and liquidate ASAP, then get ready for a disappointment. Nothing like that really happens in reality and if they do, then it is rare or the most, infrequent. Be ready to wait the haul of a buyer to get interested.

Think of who can sell the property for you. It is best to think of a competent and reliable real estate agency that is known to get the job done properly and efficiently. There should be ample advice on how to make the property more attractive to the buyers and they could make detailed schedules for viewing. When the sale is done, make sure to be ready to pay the commission of the agent.

Repairs that need to be done must be done and they cost of repairs can be part of the selling price. However, if the expenses would be too much, the chances of gaining back the expense would be low so being ready to sell lower.

Talk to someone who can stage the property for a good sale. There are professional stagers who can make a house look tempting to buyers by simply redoing the furniture setup or setting up for rent furniture that will look good in the house. Make sure that the agent and the stagers are paid once the sale is finished.

Do not forget to take tabs on the selling price of the agents who may just overprice the property. An overpriced property can take a long time to sell, and if a small profit is okay, then do it.

One last thing to consider, make sure that the sale is working well before buying another property in the area where you are going to move to. If the purchase depends on the sale of the previous property and there are delays, there may be trouble if you seal the deal and are unable to pay.

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Be Wary of Seedy Real Estate Investing Seminars

There are a lot of false claims from seminars on making millions of dollars in real estate investing that has caught a lot of people unawares and left them in the middle of a financial debacle. For first time investors, it must be very important to remember that not everyone will succeed in real estate investing. There are some who are undeniably successful, but it is not at the rate that some seminars claim.

Seminars can lure a lot of hungry for profit people who want to have an easy time in gaining profits. The seminars are very expensive and a lot will spend much just to gain an insight on how they can make an easy kill. Strategies are marketed as fool proof and instant money invested with promises of the heavens.

However, there is a saying amongst agents: “For every 10 people you will approach; only one may respond positively.” Of those who actually respond, the odds are even lower if the deal can be cinched. It take both strategy and luck on the side of the investor to make money, so be very careful when thinking big dreams, especially in the face of the financial slump.

Regardless of the obvious lure to the desperate, the seminars which hold miracle strategies continue to be flocked by the desperate to get rich quick. It is undeniable though that there are really some who attend to improve their strategies and are already successful. But the percentage is quite low.

There is no denying that these seminars are very informative and effective, if the strategies are applicable enough to enhance stock knowledge. The only thing that is not attractive with the marketing of these seminars is the claims to 100% success rates. Reality bites. This is not simply the case.

The best way to approach these seminars is to take them with a grain of salt. Nothing is infallible. So, go ahead and attend, and there would be information there that may surprise you. However, be wary in thinking along with the claims of the marketing of the seminars. Learn from them instead and work their strategies to your advantage logically.

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Real Estate Investment: A Dreaded Territory

Photo: flickr.com/photos/7471115@N08/Real estate investment is one field which is lucrative, but at the same time people dread to go on that path. Lots of investors fear that as soon as they will enter the market, something will happen and they may lose their money.

All successful investors will have a tale to tell about their fear, when they first entered the market. There are lots of potential investors, but due to fear factor, they do not enter this field.

The first fear that comes to investors mind is negative cash flow. Let us understand what negative cash flow is. When a company spends more than what it receives during a given period of time then it is called negative cash flow. When a person invests, it is for getting profit, so new investors are fearful, what will happen if no profit is made during a stipulated time.

There is no specific time for buying property. Real estate investment can be done at anytime. This has got nothing to do with the economic conditions of the market. How an economic condition can affect future rate of return. Unlike stock market real estate mostly goes up over a period of time.

This trend can be seen in the past history of investments. Another fear factor is losing your money, so best solution for this is to research market trends. Tenant and management hassles are another problems faced by investors. This can be tackled by hiring a property management company.

At times lack of experience in real estate investment can also make you fearful to enter in this territory of business. A mentor can help you; look for a real estate professional and take ideas from him. The best thing is to learn get to know the market. It is time to get started.

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Real Estate Investment in Residential Property

Photo: flickr.com/photos/91201697@N00The real estate investment in residential means that you buy a property in a residential area and it is used for the purpose of residing. This is a business where in people make lots of money.

The population is at the rise and the residential property market will be also at rise. If the requirement of residential property will raise it is very natural that investment will also increase.The need for housing will continue whether recession or downslide of stock market.

Like any other business you have to learn the tricks of the trade, because learning will give you knowledge and knowledge will give you strength to make right choice.

The property should be bought at a lesser price and sold at a higher price that is how profit will be made. The first thing that has to be done in the real estate investment in residential properties is research, the market trend, etc.

Do not go for properties without researching on them. Find undervalued properties and then offer value after reading the market. Sometimes being new to business you get over excited and make an incorrect deal so research everything before quoting price. Negotiate for the best deal to click do not feel afraid to do so.

After buying the property do not make too much investment in renovation. Read the market what kind of renovated properties are moving faster, and then plan. Bathrooms and kitchens are something that requires renovation and goes well in the investment. The house must be painted and lights to be upgraded.

The mantra in the real estate investment is research; know the market well, before doing anything. The budget should be made and stick to your budget.  Find out from local area labor price and materials price; keep a time frame in your mind by when the job should be completed. IF good choice is made and goals are clear you are in it.

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Interview a Realtor

Photo from: http://www.flickr.com/photos/cubagallery/5440713874/sizes/s/in/photostream/

Buying or selling your home is a big decision, and you want to make sure you are working with someone that you trust.  It is recommended for this reason that you interview a realtor before you decide to hire them to assist you.

First you want to find a realtor who is local to the area you are buying or selling in, as they will know the area.  Ask them about the area, how many houses they are selling in the area, and about the features.  If you have already done some of this research, you can see if they confirm what you already know.  Making notes is a good idea if you are going to interview more than one realtor.

Ask them for the names of satisfied customers, and call them for a recommendation.  The flip side to this is asking people you know and trust if they can recommend anyone to you.

How do you feel with this person?  It isn’t always about their knowledge, but do you feel comfortable with the realtor during the interview process?   Do they seem to understand you and what you are looking for and wanting?

Ask questions about them and their experience and background.  This includes things such as:

-          How long have you been selling real estate?

-          How many listings do they currently have on the market?

-          What is their sales ratio?

-          Will I be working exclusively with you or a team?

-          Why should I pick you over your competition?

-          Will they help you locate other professionals you may need – inspectors, brokers?

Ask them for the names of customers, and call them for a recommendation.  If they hesitate on giving you this information, this could be a bad sign in that they haven’t had satisfied customers.  Make sure to follow up on the names given.

How do you feel with this person?  It isn’t always about their knowledge, but do you feel comfortable with the realtor during the interview process?   Do they seem to understand you, and what you are looking for and wanting?

Overall, it is up to you if you want to hire them after you are done with the interview.  Don’t be afraid to interview more than one realtor, as you need to be comfortable with them as they are helping you with what is likely to be the largest purchase of your life.

Guest post: Kisiel

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The Housing Crash – Continuing its downward spiral

Photo from: http://www.flickr.com/photos/cubagallery/4826413784/sizes/s/in/photostream/The housing prices in the United Stated continue to fall in most cities. But an interesting fact to take note of is that compared to the income of most people, the cost of buying a house is dangerously high. Also, renting a house is much cheaper to buying a house.

Buying a house – Not a good option, as yet

If you have made the rounds and talked to a few landlords, you will have realized by now that the price quoted for a house can be almost 15 times, the annual rent of the house. There is an appreciable price decline, but it still does not make sense to buy a house. Banks have become stricter with their mortgage disbursement and want a 20% down payment. The kind of salaries that people earn and the cost of renting a house, give an indication that housing prices are going to fall further. So, why not wait for them to hit rock bottom, before actually buying a house.

Renting is the cheaper option

On the coasts, you will have to shell out 3% of the purchase price for the annual rent of the house; on the other hand the mortgage rates are 6% of the purchase price. Do your math. It’s definitely cheaper to rent a house, than own a house. Say, you still think buying a house is a good idea, but once you add the insurance, maintenance and taxes, you might just start rethinking your decision.

But what if you still want to buy a house?

Here’s where you need to calculate the “bottom price” This price can be calculated by analyzing whether the renting out of the house that you are going to purchase will help cover your mortgage and associated expense. If the answer is a yes, you know the price of the house is low enough. You must look at eliminating all risks when you are buying a house these days.

The builder problem

Right now, builders in America are facing a glut of new empty houses. It’s the builders who are being forced to drop the prices of their houses faster as compared to the owners. Why you might ask? The reason is very simple. They need to sell in order stay afloat. Current prices have made it difficult for the builders to sell their excess inventory. So, the prices will continue to fall. If you have money in hand, stick to it for some time. You can make it work, big time, after some months.

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Simple way to Start Real Estate Investments

Photo: flickr.com/photos/97544179@N00There are individuals who do not have enough money but they still want to start real estate investments business. There is an option to do so, if they have a strong desire to make it big some day.

The easiest way is to buy properties which needs repair work and fix them up. This kind of a property, you can get very cheap. However you must be smart and follow certain steps to do so.

Firstly, select an area and do market research, find out prices of normal houses in that area. Once you have thoroughly studied the market then look for a house which is in bad state, you may get that house 20%cheaper than actual market rate of similar house. This kind of a house may be of good value than expected.

Purchase the house at the lowest possible down payment. Price and terms are factors which can make any property into a successful investment. After purchasing the house do refurbishing and renovation, most it should be done by yourself, so that you can save money. There are many families who do this and it becomes a family business. Once it is done you can either rent it out, which will cover the mortgage and give extra cash flow.

Another thing you can do is sell the house at higher price and whatever extra sum you have earned, with that but another property and it goes on. This is how you can start moving further, from single family house to duplex and then apartment buildings.

This helps you in making more and more properties which gives you experience and exposure to real estate investments.

There is one more aspect in Real estate investments, do not become emotional to the property you have purchased, always see it with business perspective.

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Mortgage Market Post-Recession

While the US is trying to make its way out of the recession, it is a bitter truth that there is still much woe where mortgages are concerned. However, there is some glimmering hope as there are signs visible that the real estate markets are working their way towards stabilization.

One such visible sign of this rebound can be obtained from a report issued by the Mortgage Bankers Association that shows a decline in the mortgage defaults for first residential mortgages in the last quarter of 2009. A survey conducted by the same association also found that late repayments for these loans had fallen to 9.47% of all loans taken for mortgages from October to December 2009. This figure is also lesser than that recorded in the 3rd quarter of 2009. However, this figure remains above the 7.88% figure in the last quarter of 2008. While the decline from the 3rd to 4th quarter may be small, the sign is still positive as it reflects a decrease in the loan numbers which could lead to foreclosure. It is known that the occurrence of late payments began in mid 2006 with the numbers increasing in 2007. A surge in sub-prime defaults caused late-payment rates to increase beyond imagination.

With the number of troubled loans decreasing, experts expect the number of serious delinquent loans and foreclosures to eventually reduce. This increases confidence that the problem is not bad as people think of it to be.

In the whole of the US, mortgages which were in some stage of foreclosure stood at a figure of 4.58% at the end of last year. This was an increase from the 4.47% recorded in September. Florida ranks first in the list of states with mortgages in foreclosure stage. Subprime mortgages have also increased from 15.35% in September to 15.58% at the end of 2009 across the US. Nonetheless, there were signs of recovery in the last quarter. Loan numbers which were in foreclosure dropped to 1.20% from 1.42% in September 2009. Subprime foreclosures also decreased to 3.66% from 3.76%.

The Home Affordable Modification Program introduced by Obama’s administration was designed to help prevent mortgages from reaching foreclosure. This scheme could have contributed to the reduction in last quarter foreclosure actions. However, this program is showing mixed results. With only 1 million home owners under the program, only 116300 were reported to have received modified loans permanently. About 62,000 owners have dropped out of the program for reasons such as failure to make payments even after they had been reduced. The small reach of this program may cause foreclosures to increase even more with unemployment rates on the high. So, it may take longer for the program to cause a widespread positive impact on the foreclosure rates and mortgage defaults.

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FSBO Benefits & Convenience

Dispensing away Traditional Broker:

An owner of a house property now need not depend on the traditional broker to sell his house. With the advance in the cyber technology and growing number of persons accessing cyber space to look for buyers and sellers,  completion of online documentation, submission of requests, reports, reminders etc. the work has been just reduced to a click of mouse and use of keyboard to transmit and receive fast messaging.

In the matters of real estate sale purchase the owners now can list online their properties for sale on payment of nominal charges to the Service provider, who has created highly interactive and secure website with the capability of uploading complete photograph of the house from different angles portraying external as well internal view. At the other end the intending buyer searching the property to buy in a particular location has a chance to see the listed properties with complete photo views as if he has personally visited the property.

The Virtual Street Tour Service:

The sites listing properties for sale have the feature of Virtual Street Tour. The advantage of virtual street tour is immense in terms of convenience to the buyer to view the locality where the property listed for sale is situated. The Drive score feature helps the prospective buyer to find out within convenient driving distance, there are how many commercial establishments and utility services around the property.

Climate watch feature gives an idea of year round climate in the region, where the property is located.

Property Tax Estimation:

The websites have the feature of Property Tax Estimator, by help of which, one can calculate the estimated Ad Valorem taxes in respect of the specific property. It I easy to work out, just select a city from the drop down box, feed the property price in the field and click on the calculate button. The results displayed are the estimated annual tax of the property for sale based on the last certified tax rate.

The Abstract Report Generated is a Document, which is based on the data on record in respect of the property for sale and it reflects, whether the property is having a clear title free from all encumbrances or there are still some mortgage or other liens to be paid off arrears of taxes payable in respect of property for sale. This document is required at the time of transfer of the title of the Property for sale is affected in the name of new buyer. It is also needed by a mortgage for sanctioning of loan to the new buyer.

Title Search Services:

The Abstract Title Search in respect of a Property for sale on the site, where it is listed makes available the following information complete in all respects:

  • Property Deed Searching
  • Open Property Mortgage Searching
  • Property Liens & Judgments searching
  • Property Bankruptcy Searching
  • Latest Tax Liabilities of the property

The owner of the property for sale saves around 50 % of such cost if the search is processed by any other agency in the market and there is lot of saving in time as compared to physical search carried out.

The Property Title Searching service is very reliable, easy and quick method of making a secure deal and helps in avoiding buying of a disputed property. The Abstract Title search report is generated by simply entering property address in the search form by acting as per the registration guidance.

The Savings Bonanza:

The owner of the property has benefits of making substantial saving in commission payable to a real estate broker in case the property is sold by availing the services of a broker. There is lot of saving in personal time traditionally spent in showing the property to every hick and harry the real estate broker brings, spending time in negotiations not getting finalized.

The website service provider has listed a service of video-graphic professional in the region, which on a nominal fee does complete video-graph shooting of the property for sale by owner and upload to the listing.

The website service provider has listed the services of professional appraisers of the properties, who are located nearby to the listed property and personally visit and do the appraisal of the property with value of the property, which is relied by the owner and the buyer in determining the sale price of the property and negotiate the final price of the property, making of the payment to the owner of the property and complete finalization of the deal along with documentation all online.

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