Tuesday
How To Lease Option Your Properties
Part 5 in a Series
by Joe Crump
RENT VS. LEASE OPTION
There are advantages and disadvantages to renting the properties you own or doing lease options.
The typical person who purchases a home using a lease option, does so because they cannot figure out a way to purchase any other way. This means that they probably have credit issues, time on the job issues, income issues or no down payment.
A typical renter, on the other hand, can be found with good credit and a stable job.
The quality of tenant that you get is the only real advantage that I see with renters. Lease Options have some other real benefits.
First of all, you can get more monthly rent for a home than when you sell with a Lease Option. (typically 10% more than market). This 10% is what you would apply to the Seller's down payment if they do buy, so you haven't lost anything by giving them excellent terms.
Instead of getting a refundable deposit (like you would get from a renter), you get non-refundable option money. I suggest charging about the same as you would charge for the deposit... typically, 1 month's rent.
Check out what is customary in your area. Some areas are getting as much as 5% down on a lease option!
Since it is likely that the tenant will never exercise their option, being able to keep the option fee will cover most of the costs of getting the property re-rented or leased after the current tenant moves out.
You can also sell the home for more than market value... typically 5%-10% more. If they do buy, it will be a good deal for you. If they don't buy, you just go out and find another tenant.
Another nice thing about Lease Options is that you can usually get a longer lease. If the option has a 3 year term, you can get a lease for the same period. Renters, on the other hand, will usually only give you a one year lease.
The longer the lease the better. I suggest that you get at least 1% lease option fee for every year of the option. If they want to extend the option, just charge them additional option money (which they can apply to their down payment)
If a tenant wants to move out before their lease is up, they still owe you the balance of the lease. This protects you and puts you into a strong negotiating
position. Any concession you make for them is your decision.
If someone wants to move out before their lease is up, here is what I suggest.
Make them continue to pay their rent until the new tenant moves in. They can either make it available to show before they move out or wait for you to rent it after they move out. Either way, you won't lose money, plus you get to keep the lease option money.
If you are in this situation with a tenant (not folks who are lease optioning), treat them the same way and give them their deposit back if they leave the home clean.
Treat people fairly... just like the golden rule says and it will benefit you in the long run.
One last benefit of Lease Options is that when a tenant believes they are buying a home (rather than renting) they will treat it better. A homeowner is more likely to fix up a property and try to protect their investment.
The information in these articles is just a tiny sample of what is contained in my 324 page e-book, To find out more on how this entire book can help you, kindly visit my web-site here.
*************************************************************************************************
NEXT WEEK- Last Article 6 of 6
"Get Top Dollar For Your Homes By Financing It For The New Buyer!
*************************************************************************************************
by Joe Crump
RENT VS. LEASE OPTION
There are advantages and disadvantages to renting the properties you own or doing lease options.
The typical person who purchases a home using a lease option, does so because they cannot figure out a way to purchase any other way. This means that they probably have credit issues, time on the job issues, income issues or no down payment.
A typical renter, on the other hand, can be found with good credit and a stable job.
The quality of tenant that you get is the only real advantage that I see with renters. Lease Options have some other real benefits.
First of all, you can get more monthly rent for a home than when you sell with a Lease Option. (typically 10% more than market). This 10% is what you would apply to the Seller's down payment if they do buy, so you haven't lost anything by giving them excellent terms.
Instead of getting a refundable deposit (like you would get from a renter), you get non-refundable option money. I suggest charging about the same as you would charge for the deposit... typically, 1 month's rent.
Check out what is customary in your area. Some areas are getting as much as 5% down on a lease option!
Since it is likely that the tenant will never exercise their option, being able to keep the option fee will cover most of the costs of getting the property re-rented or leased after the current tenant moves out.
You can also sell the home for more than market value... typically 5%-10% more. If they do buy, it will be a good deal for you. If they don't buy, you just go out and find another tenant.
Another nice thing about Lease Options is that you can usually get a longer lease. If the option has a 3 year term, you can get a lease for the same period. Renters, on the other hand, will usually only give you a one year lease.
The longer the lease the better. I suggest that you get at least 1% lease option fee for every year of the option. If they want to extend the option, just charge them additional option money (which they can apply to their down payment)
If a tenant wants to move out before their lease is up, they still owe you the balance of the lease. This protects you and puts you into a strong negotiating
position. Any concession you make for them is your decision.
If someone wants to move out before their lease is up, here is what I suggest.
Make them continue to pay their rent until the new tenant moves in. They can either make it available to show before they move out or wait for you to rent it after they move out. Either way, you won't lose money, plus you get to keep the lease option money.
If you are in this situation with a tenant (not folks who are lease optioning), treat them the same way and give them their deposit back if they leave the home clean.
Treat people fairly... just like the golden rule says and it will benefit you in the long run.
One last benefit of Lease Options is that when a tenant believes they are buying a home (rather than renting) they will treat it better. A homeowner is more likely to fix up a property and try to protect their investment.
The information in these articles is just a tiny sample of what is contained in my 324 page e-book, To find out more on how this entire book can help you, kindly visit my web-site here.
*************************************************************************************************
NEXT WEEK- Last Article 6 of 6
"Get Top Dollar For Your Homes By Financing It For The New Buyer!
*************************************************************************************************
Monday
Real estate foreclosures to rise in California, Nevada
Mortgage defaults in California will surge by the second quarter of 2005, according to Foreclosures.com, a real estate investment advisory company that focuses on distressed properties.
"Employment, or the lack thereof, is no longer the primary cause of foreclosure activity," according to the president of Foreclosures.com. "The problem now is that too many households are overloaded with debt."
During a long period of below-normal interest rates, consumers continued spending and financed their purchases with adjustable-rate home equity credit lines.
Homeowners have got addicted to a combination of low interest rates and double-digit price appreciation every year. Now this combination has reversed itself.
Also predicted is the rapid cooling of the Las Vegas housing market which could lead to a rise in foreclosure activity next year.
Throughout much of 2004, the Las Vegas market has been distorted by out-of-state speculators buying new homes to flip for fast profits. Sales volume was inflated by houses selling two or three times in a matter of months.
The Las Vegas year-over-year price appreciation of more than 52 percent is unsustainable and that the price correction now happening there was inevitable. As interest rates rise, downward pressure on prices will increase and many who bought at the top of the curve with adjustable-rate mortgages will find themselves owing more than the house is worth and facing increasing payments.
"That's when you'll see defaults start to rise," said the president of Foreclosures.com.
The company has always seen a correlation between rising interest rates and rising levels of foreclosure activity.
----------------------------------------------------------------------------------------------
Foreclosure Homes for Half Price
RealtyTrac
: The most comprehensive source of exclusive foreclosure/pre-foreclosure, auction and bank homes. Get the free trial here.
"Employment, or the lack thereof, is no longer the primary cause of foreclosure activity," according to the president of Foreclosures.com. "The problem now is that too many households are overloaded with debt."
During a long period of below-normal interest rates, consumers continued spending and financed their purchases with adjustable-rate home equity credit lines.
Homeowners have got addicted to a combination of low interest rates and double-digit price appreciation every year. Now this combination has reversed itself.
Also predicted is the rapid cooling of the Las Vegas housing market which could lead to a rise in foreclosure activity next year.
Throughout much of 2004, the Las Vegas market has been distorted by out-of-state speculators buying new homes to flip for fast profits. Sales volume was inflated by houses selling two or three times in a matter of months.
The Las Vegas year-over-year price appreciation of more than 52 percent is unsustainable and that the price correction now happening there was inevitable. As interest rates rise, downward pressure on prices will increase and many who bought at the top of the curve with adjustable-rate mortgages will find themselves owing more than the house is worth and facing increasing payments.
"That's when you'll see defaults start to rise," said the president of Foreclosures.com.
The company has always seen a correlation between rising interest rates and rising levels of foreclosure activity.
----------------------------------------------------------------------------------------------
Foreclosure Homes for Half Price
RealtyTrac
Friday
The Popular TC & Vickie Bradley Program
How To Make Money This Month In Real Estate!
We have been receiving quite a few request for more information and highlights on the TC & Vickie Bradley program and the download link.
O.K for all those who missed the post here it is :
How To Make Money This Month In Real Estate - What's the Bradley program all about ?
We have been receiving quite a few request for more information and highlights on the TC & Vickie Bradley program and the download link.
O.K for all those who missed the post here it is :
How To Make Money This Month In Real Estate - What's the Bradley program all about ?
Thursday
Should I Refinance With My Current Lender?
by Craig Romero
With so many homeowners refinancing lately, there are hundreds of refinancing questions being asked. One of the most common is “Should I refinance with my current lender?” The answer is both yes and no.
Your current lender should be the last lender that you obtain a quote from, but you should definitely contact them when you are thinking of refinancing. Get together quotes from other lenders, and then approach your current lender and ask them to meet, or even better, beat those quotes. You can also ask them to waive certain settlement costs and other fees involved since you are already an established customer and your lender may have customer retention programs, but you will need leverage before you do this. That leverage should come in the form of quotes from your lender’s competitors. In fact, your lender may opt to just decrease the interest rate you are currently paying, thereby allowing you to avoid settlement costs altogether.
However, there are drawbacks to using your current lender. Your lender already has your business, once you pay the lock-in fee, they have your money too. Since they already have your mortgage, they have no incentive to close the deal in a timely manner. There are also times when lenders will not quote you the best rate they have, but will quote you a rate that is lower than your current rate. For instance, if you’re at an eight-percent interest rate currently, your lender may offer you 6.5 percent because it’s significantly lower than your current rate. Normally, that would be great, but if rates are at 5.5 percent, your lender isn’t doing you any favors. That is why it is so important to be prepared with quotes from other lenders. It lets you know what rates are available to you, and lets your lender know that you’re not going into the situation blind.
A wise decision is to treat your current lender as you would any other lender. If they do not come in with the lowest rate or best service, take your business elsewhere. While it is nice to do business with a familiar face, you are not obligated to refinance with them, and if you can save money by going elsewhere, you should do so.
Written by Craig Romero
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes. Discover how to quickly build a minimum of $40,000 worth of home equity and pay your mortgage off in 10 years or less without making biweekly mortgage payments,
visit www.wisemortgageinfo.com
With so many homeowners refinancing lately, there are hundreds of refinancing questions being asked. One of the most common is “Should I refinance with my current lender?” The answer is both yes and no.
Your current lender should be the last lender that you obtain a quote from, but you should definitely contact them when you are thinking of refinancing. Get together quotes from other lenders, and then approach your current lender and ask them to meet, or even better, beat those quotes. You can also ask them to waive certain settlement costs and other fees involved since you are already an established customer and your lender may have customer retention programs, but you will need leverage before you do this. That leverage should come in the form of quotes from your lender’s competitors. In fact, your lender may opt to just decrease the interest rate you are currently paying, thereby allowing you to avoid settlement costs altogether.
However, there are drawbacks to using your current lender. Your lender already has your business, once you pay the lock-in fee, they have your money too. Since they already have your mortgage, they have no incentive to close the deal in a timely manner. There are also times when lenders will not quote you the best rate they have, but will quote you a rate that is lower than your current rate. For instance, if you’re at an eight-percent interest rate currently, your lender may offer you 6.5 percent because it’s significantly lower than your current rate. Normally, that would be great, but if rates are at 5.5 percent, your lender isn’t doing you any favors. That is why it is so important to be prepared with quotes from other lenders. It lets you know what rates are available to you, and lets your lender know that you’re not going into the situation blind.
A wise decision is to treat your current lender as you would any other lender. If they do not come in with the lowest rate or best service, take your business elsewhere. While it is nice to do business with a familiar face, you are not obligated to refinance with them, and if you can save money by going elsewhere, you should do so.
Written by Craig Romero
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes. Discover how to quickly build a minimum of $40,000 worth of home equity and pay your mortgage off in 10 years or less without making biweekly mortgage payments,
visit www.wisemortgageinfo.com
Top 5 Housing Markets - Forecasted change
1. Las Vegas,NV 53.7%
2. Bradenton,FL 40.7%
3. Riverside/San Bernardino,CA 36.2%
4. San Diego,CA 32.5%
5. Sacramento,CA 30.5%
2. Bradenton,FL 40.7%
3. Riverside/San Bernardino,CA 36.2%
4. San Diego,CA 32.5%
5. Sacramento,CA 30.5%
Wednesday
Real estate loan applications drop
Overall mortgage applications dropped 5.7 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey.
The MBA seasonally adjusted purchase index decreased by 3.5 percent to 463.3 from 480.3 the previous week. The seasonally adjusted refinance index decreased by 8.3 percent to 2,179.3 from 2,375.4 one week earlier.
The refinance share of mortgage activity decreased to 48.4 percent of total applications from 48.6 percent the previous week. The adjustable-rate-mortgage share of activity remained at 34 percent.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.64 percent from 5.7 percent one week earlier. Points including the origination fee increased to 1.36 from 1.27 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained at 5.08 percent. Points including the origination fee decreased to 1.23 from 1.27 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for one-year adjustable-rate mortgages increased to 4.13 percent from 3.89 percent one week earlier. Points including the origination fee increased to 0.99 from 0.97 the previous week for 80 percent loan-to-value ratio loans.
The MBA seasonally adjusted purchase index decreased by 3.5 percent to 463.3 from 480.3 the previous week. The seasonally adjusted refinance index decreased by 8.3 percent to 2,179.3 from 2,375.4 one week earlier.
The refinance share of mortgage activity decreased to 48.4 percent of total applications from 48.6 percent the previous week. The adjustable-rate-mortgage share of activity remained at 34 percent.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.64 percent from 5.7 percent one week earlier. Points including the origination fee increased to 1.36 from 1.27 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained at 5.08 percent. Points including the origination fee decreased to 1.23 from 1.27 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for one-year adjustable-rate mortgages increased to 4.13 percent from 3.89 percent one week earlier. Points including the origination fee increased to 0.99 from 0.97 the previous week for 80 percent loan-to-value ratio loans.
Real estate rates fall further
Mortgage rates dropped for the second consecutive week, according to FM weekly mortgage survey.
The 30-year fixed-rate mortgage averaged 5.72 percent for the week ended today, down slightly from last week when it averaged 5.74 percent. The average for the 15-year fixed-rate mortgage this week is 5.15 percent, unchanged from last week.Points on both the 30- and 15-year averaged 0.6.
One-year Treasury-indexed adjustable-rate mortgages averaged 4.27 percent this week, with an average 0.7 point, up from last week when they averaged 4.17 percent.
At this time last year, the forecast indicated for interest rates for 30-year fixed-rate mortgages to exceed 6 percent by this time this year.. according to FM's vice president and chief economist. "Today's annual average mortgage rates are below even that projection thanks to the spring 'soft-patch' in economic growth.
Nevertheless, the outlook is that long-term rates are destined to rise to a still home-buyer-friendly range that will most likely cause home sales to cool relative to their current record highs.
The 30-year fixed-rate mortgage averaged 5.72 percent for the week ended today, down slightly from last week when it averaged 5.74 percent. The average for the 15-year fixed-rate mortgage this week is 5.15 percent, unchanged from last week.Points on both the 30- and 15-year averaged 0.6.
One-year Treasury-indexed adjustable-rate mortgages averaged 4.27 percent this week, with an average 0.7 point, up from last week when they averaged 4.17 percent.
At this time last year, the forecast indicated for interest rates for 30-year fixed-rate mortgages to exceed 6 percent by this time this year.. according to FM's vice president and chief economist. "Today's annual average mortgage rates are below even that projection thanks to the spring 'soft-patch' in economic growth.
Nevertheless, the outlook is that long-term rates are destined to rise to a still home-buyer-friendly range that will most likely cause home sales to cool relative to their current record highs.
Tuesday
Investment Secret - Hot High Yielding Returns
Attention Investors!!!
Government Guaranteed, High Yielding Returns!
"Revealing The Investment Secret the Extremely Wealthy Hope and Pray You'll Never Find Out!"
++ PLUS ++
- Government Guaranteed Returns of 16%, 18%, 24%, up to 50%
- Your Investment is secured by Real Estate
- Your Rate of Return is Fixed by Law
- Obtain Real Estate for Pennies on the Dollar
- Bad Credit? No problem!
Click here to find out more!
Government Guaranteed, High Yielding Returns!
"Revealing The Investment Secret the Extremely Wealthy Hope and Pray You'll Never Find Out!"
++ PLUS ++
- Government Guaranteed Returns of 16%, 18%, 24%, up to 50%
- Your Investment is secured by Real Estate
- Your Rate of Return is Fixed by Law
- Obtain Real Estate for Pennies on the Dollar
- Bad Credit? No problem!
Click here to find out more!
Monday
How to Build Your Free House
By E.S. MacArthur
MacArthur is a Real Estate Investor & Best-Selling Author.
His is the only website in the World That Teaches You How to Order Your Brand-New, Custom-Built Dream House, Paying an Average 42% LESS Than You Could Sell It For.
Click here to learn more..
MacArthur is a Real Estate Investor & Best-Selling Author.
His is the only website in the World That Teaches You How to Order Your Brand-New, Custom-Built Dream House, Paying an Average 42% LESS Than You Could Sell It For.
Click here to learn more..
Top Tips For New Real Estate Agents
Mark Nash, Realty Times Feature Writer gives the following top 10 tips for new real estate agents who want to be successful.
(1) Find the right managing broker.
(2) Find the right real estate company to hang your license.
(3) Create a business plan for your first year in real estate.
(4) Build yourself as a brand.
(5) Find a mentor that can fast track you beyond the basics.
(6) Love people and their personalities.
(7) Work smart and use good time management skills.
(8) Use the Internet. It's changed how buyers start their purchase process.
(9) Know all the details of the transaction process.
(10) Keep your client pipeline pumping.
(1) Find the right managing broker.
(2) Find the right real estate company to hang your license.
(3) Create a business plan for your first year in real estate.
(4) Build yourself as a brand.
(5) Find a mentor that can fast track you beyond the basics.
(6) Love people and their personalities.
(7) Work smart and use good time management skills.
(8) Use the Internet. It's changed how buyers start their purchase process.
(9) Know all the details of the transaction process.
(10) Keep your client pipeline pumping.
Sunday
Top housing markets - USA
Third-quarter numbers are in for more than 100 markets. The US median home prices gained 7.7 percent in the third quarter versus the same period in 2003, according to the NAR report.
The median price was $188,500, which means that half the homes tracked cost more and half cost less. Of the 127 markets tracked, 45 areas had growth of more than 10 percent.
The NAR is projecting that existing-home prices will increase 5.3 percent in 2005.
Over the past 12 months, Las Vegas home values showed the biggest gains. The median price of an existing single-family home in and around Las Vegas shot up 53.7 percent. In Bradenton, Fla. prices were up 40.7 percent, and in Riverside and San Bernardino counties near Los Angeles prices were up 36.2 percent.
Not all markets have seen these kinds of gains. In nearly 40 metro areas, prices inched up less than 3 percent. In 11 metros, prices declined. more..
The median price was $188,500, which means that half the homes tracked cost more and half cost less. Of the 127 markets tracked, 45 areas had growth of more than 10 percent.
The NAR is projecting that existing-home prices will increase 5.3 percent in 2005.
Over the past 12 months, Las Vegas home values showed the biggest gains. The median price of an existing single-family home in and around Las Vegas shot up 53.7 percent. In Bradenton, Fla. prices were up 40.7 percent, and in Riverside and San Bernardino counties near Los Angeles prices were up 36.2 percent.
Not all markets have seen these kinds of gains. In nearly 40 metro areas, prices inched up less than 3 percent. In 11 metros, prices declined. more..
Friday
Real estate rates defy economic expansion
Mortgage rates are still holding against pretty good October economic data, and against the Fed's obvious intention to raise its interest rate at least another percentage point as quickly as it can.
In the long term ahead, the trade and domestic deficits may do their ugly compounding work, and strain in the currency markets will release in surprises. Rates face upside risk greater than any chance for a decline.
In the long term ahead, the trade and domestic deficits may do their ugly compounding work, and strain in the currency markets will release in surprises. Rates face upside risk greater than any chance for a decline.
How To Sell Your Property For 10% OVER Market Value... Fast!
How To Buy With $0 Down Payment - The Basics!
"How To Sell Your Property For 10% OVER Market Value... Fast!"
Part Four In A Series
by
Joe Crump
Did you know that you can get 5-10% more for the homes you sell AND get higher than market rent!
You can also get non-refundable lease option money from your tenants rather than a security deposit that you have to give back to them at the end of their lease.
Lease option money can pay for your vacancies if you know how to structure your contracts! I give you the complete contracts (sample forms that are filled out and blank forms that you can print out and use) in my book, "$0 Down Real Estate Investing With Bad Credit And No Job!" You can find out more about the book below.
Just for those of you who aren't familiar with the process of Lease Option, here it is.
You grant a tenant the option to buy your property at a specific price and within a specific time period.
In exchange for the option to buy, the tenant pays a non-refundable lease option fee.
Often, a portion of their monthly payment and their lease option money will apply to their down payment, when and if they do purchase.
If they don't exercise their option to buy within the time period allotted, the option monies and any payments made toward the house are forfeited.
Surprisingly, I have found that only a small percentage of Lease Option buyers will actually exercise the option. (50%-60%)
I cover this material in detail in my book. You can get more information on how this book can help you make money here.
***********************************************************************************************************
NEXT WEEK- PART FIVE "Lease Optioning Your Properties!"
***********************************************************************************************************
UPCOMING ARTICLES -
PART SIX "Get Top Dollar For Your Home By Financing It For The New Buyer!"
***********************************************************************************************************
Joe Crump's is one of the experts in Real Estate Investing. He also offers the popular "26 Week Virtual, Online Real Estate Investment Coaching Program".
His book is one of Real Estate top investing help downloads. You can get more information on how Joe Crump can help you make money here.
***********************************************************************************************************
"How To Sell Your Property For 10% OVER Market Value... Fast!"
Part Four In A Series
by
Joe Crump
Did you know that you can get 5-10% more for the homes you sell AND get higher than market rent!
You can also get non-refundable lease option money from your tenants rather than a security deposit that you have to give back to them at the end of their lease.
Lease option money can pay for your vacancies if you know how to structure your contracts! I give you the complete contracts (sample forms that are filled out and blank forms that you can print out and use) in my book, "$0 Down Real Estate Investing With Bad Credit And No Job!" You can find out more about the book below.
Just for those of you who aren't familiar with the process of Lease Option, here it is.
You grant a tenant the option to buy your property at a specific price and within a specific time period.
In exchange for the option to buy, the tenant pays a non-refundable lease option fee.
Often, a portion of their monthly payment and their lease option money will apply to their down payment, when and if they do purchase.
If they don't exercise their option to buy within the time period allotted, the option monies and any payments made toward the house are forfeited.
Surprisingly, I have found that only a small percentage of Lease Option buyers will actually exercise the option. (50%-60%)
I cover this material in detail in my book. You can get more information on how this book can help you make money here.
***********************************************************************************************************
NEXT WEEK- PART FIVE "Lease Optioning Your Properties!"
***********************************************************************************************************
UPCOMING ARTICLES -
PART SIX "Get Top Dollar For Your Home By Financing It For The New Buyer!"
***********************************************************************************************************
Joe Crump's is one of the experts in Real Estate Investing. He also offers the popular "26 Week Virtual, Online Real Estate Investment Coaching Program".
His book is one of Real Estate top investing help downloads. You can get more information on how Joe Crump can help you make money here.
***********************************************************************************************************
Thursday
Top Five Consumer Tips For Home Buyers
This is Consumer Awareness Week in Ontario, where the government is using the slogan "Smart Consumers are Good for Business." When it comes to buying and selling real estate, the government says the smartest way to conduct the transaction is by hiring a licensed real estate professional.
That's a big boost for Realtors, who have seen their roles in the real estate transaction come under increasing pressure from private "for sale by owners" companies, online listings and new regulations that govern their business.
In an active real estate market, consumers often question the need to pay real estate commissions when houses seem to be selling so quickly -- and with home listings on the Internet and many self-help sales books and articles available, it's tempting to try handling a real estate transaction on your own.
One of the main reasons why "going it alone" may not work out is because most buyers equate a For Sale By Owner sign to a bargain. "They'll assume you'll sell for a discount because 'you don't have to pay the real estate commission,' and as a result, they'll probably offer you less than fair market value."
Other things you'll have to deal with are advertising the property to reach potential buyers, figuring out all the legal paperwork, and trying to 'pre-screen' prospective buyers to see if they are serious buyers or just 'lookers,'.
"Realtors qualify buyers, making sure they don't waste their time viewing homes they can't afford and saving sellers the hassle of having their home shown to buyers who would not be able to make an offer,". "And Realtors know the many, many potential pitfalls to any transaction and how to avoid them."
Anyone hiring a Realtor will also learn about "agency," which refers to who the Realtor works for. You can hire a Realtor to work exclusively for the buyer, or exclusively for the seller, or for both. when you buy or sell a home, you'll be expected to sign a paper that says you understand your "agency relationship" with your Realtor.
At a recent media event, the minister of Consumer and Business Services, listed the top five consumer tips for home buyers:
(1) Do your research.
(2) Consult a licensed real estate professional.
(3) Shop around -- for homes and mortgage rates.
(4) Have your home professionally inspected.
(5) Get it in writing -- and read before signing.
Not included in the list, but a good idea, is also to have your lawyer look the offer over before you sign on the dotted line.
That's a big boost for Realtors, who have seen their roles in the real estate transaction come under increasing pressure from private "for sale by owners" companies, online listings and new regulations that govern their business.
In an active real estate market, consumers often question the need to pay real estate commissions when houses seem to be selling so quickly -- and with home listings on the Internet and many self-help sales books and articles available, it's tempting to try handling a real estate transaction on your own.
One of the main reasons why "going it alone" may not work out is because most buyers equate a For Sale By Owner sign to a bargain. "They'll assume you'll sell for a discount because 'you don't have to pay the real estate commission,' and as a result, they'll probably offer you less than fair market value."
Other things you'll have to deal with are advertising the property to reach potential buyers, figuring out all the legal paperwork, and trying to 'pre-screen' prospective buyers to see if they are serious buyers or just 'lookers,'.
"Realtors qualify buyers, making sure they don't waste their time viewing homes they can't afford and saving sellers the hassle of having their home shown to buyers who would not be able to make an offer,". "And Realtors know the many, many potential pitfalls to any transaction and how to avoid them."
Anyone hiring a Realtor will also learn about "agency," which refers to who the Realtor works for. You can hire a Realtor to work exclusively for the buyer, or exclusively for the seller, or for both. when you buy or sell a home, you'll be expected to sign a paper that says you understand your "agency relationship" with your Realtor.
At a recent media event, the minister of Consumer and Business Services, listed the top five consumer tips for home buyers:
(1) Do your research.
(2) Consult a licensed real estate professional.
(3) Shop around -- for homes and mortgage rates.
(4) Have your home professionally inspected.
(5) Get it in writing -- and read before signing.
Not included in the list, but a good idea, is also to have your lawyer look the offer over before you sign on the dotted line.
Wednesday
Already Refinanced? Do it Again!
by Craig Romero
Many homeowners are under the mistaken impression that if they have already refinanced their home, that is it, they cannot do it again.
Wrong. Many people can, and do, refinance their homes a second time, sometimes more.
There is a definite increase in the trend of refinancing more than once among homeowners today. It only makes sense that if something saved you money once and can save you money again, you should take advantage of it; and homeowners across the nation seem to be catching on.
More and more people find themselves refinancing a second time. Some homeowners are even refinancing within a few short months of their first refinance process.
When should you refinance a second time? It’s a personal choice and depends on a number of factors, but a safe rule of thumb to follow is to refinance when you can save one to two percent, or more off your current mortgage rate by doing so.
It’s also important to note that when you refinance a second time, you will be able to deduct the points of the entire current loan off of your taxes.
When you're paying the loan off monthly over a period of years, the deductions for points must be taken gradually as well. By refinancing a second time, you get to deduct the points all at once.
The best way to make refinancing a second time affordable to you is to seek out no-cost refinancing options. By doing this, the only costs you will usually incur up front are the appraisal costs, and if you can use the appraisal from the first refinancing, you will save even more money.
The tax savings may even be enough to pay for the costs involved with the refinance. Of course you should consult with a tax advisor to determine exactly how these rules can benefit you.
So when does refinancing a second time not make sense? When there is a prepayment penalty, especially if you have already paid a prepayment penalty with the first refinance. Before refinancing, it is very important for homeowners to check if there is a prepayment penalty policy with their existing mortgage.
In today’s economy it is so important for consumers to save money and tighten the belt in any way they can, and if that means refinancing a second time, they should go for it.
--------------------------------------------------------------------------------------------------
Written by Craig Romero
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes.
If you need help you can visit www.wisemortgageinfo.com
Many homeowners are under the mistaken impression that if they have already refinanced their home, that is it, they cannot do it again.
Wrong. Many people can, and do, refinance their homes a second time, sometimes more.
There is a definite increase in the trend of refinancing more than once among homeowners today. It only makes sense that if something saved you money once and can save you money again, you should take advantage of it; and homeowners across the nation seem to be catching on.
More and more people find themselves refinancing a second time. Some homeowners are even refinancing within a few short months of their first refinance process.
When should you refinance a second time? It’s a personal choice and depends on a number of factors, but a safe rule of thumb to follow is to refinance when you can save one to two percent, or more off your current mortgage rate by doing so.
It’s also important to note that when you refinance a second time, you will be able to deduct the points of the entire current loan off of your taxes.
When you're paying the loan off monthly over a period of years, the deductions for points must be taken gradually as well. By refinancing a second time, you get to deduct the points all at once.
The best way to make refinancing a second time affordable to you is to seek out no-cost refinancing options. By doing this, the only costs you will usually incur up front are the appraisal costs, and if you can use the appraisal from the first refinancing, you will save even more money.
The tax savings may even be enough to pay for the costs involved with the refinance. Of course you should consult with a tax advisor to determine exactly how these rules can benefit you.
So when does refinancing a second time not make sense? When there is a prepayment penalty, especially if you have already paid a prepayment penalty with the first refinance. Before refinancing, it is very important for homeowners to check if there is a prepayment penalty policy with their existing mortgage.
In today’s economy it is so important for consumers to save money and tighten the belt in any way they can, and if that means refinancing a second time, they should go for it.
--------------------------------------------------------------------------------------------------
Written by Craig Romero
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes.
If you need help you can visit www.wisemortgageinfo.com
Real Estate Refinance Applications Jump
Overall mortgage applications jumped by 4.3 percent last week on a seasonally adjusted basis, according to the Mortgage Bankers Association's weekly survey.
The MBA seasonally adjusted purchase index decreased by 0.6 percent to 480.3 from 483 the previous week. The seasonally adjusted refinance index increased by 10.6 percent to 2,375.4 from 2,148.7 one week earlier.
The refinance share of mortgage activity increased to 48.6 percent of total applications from 45.2 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 34 percent of total applications from 35.3 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.7 percent from 5.69 percent one week earlier. Points including the origination fee decreased to 1.27 from 1.36 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained at 5.08 percent. Points including the origination fee decreased to 1.27 from 1.33 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for one-year adjustable-rate mortgages decreased to 3.89 from 4.03 percent one week earlier. Points including the origination fee decreased to 0.97 from 1.05 previous week for 80 percent loan-to-value ratio loans.
Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry.
------------------------------------------------------------------------------------------------------------------
Readers also found this post useful :
The Fast Track to Gaining Equity with Refinancing
The MBA seasonally adjusted purchase index decreased by 0.6 percent to 480.3 from 483 the previous week. The seasonally adjusted refinance index increased by 10.6 percent to 2,375.4 from 2,148.7 one week earlier.
The refinance share of mortgage activity increased to 48.6 percent of total applications from 45.2 percent the previous week. The adjustable-rate-mortgage share of activity decreased to 34 percent of total applications from 35.3 percent the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 5.7 percent from 5.69 percent one week earlier. Points including the origination fee decreased to 1.27 from 1.36 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages remained at 5.08 percent. Points including the origination fee decreased to 1.27 from 1.33 the previous week for 80 percent loan-to-value ratio loans.
The average contract interest rate for one-year adjustable-rate mortgages decreased to 3.89 from 4.03 percent one week earlier. Points including the origination fee decreased to 0.97 from 1.05 previous week for 80 percent loan-to-value ratio loans.
Washington, D.C.-based Mortgage Bankers Association is a national association representing the real estate finance industry.
------------------------------------------------------------------------------------------------------------------
Readers also found this post useful :
The Fast Track to Gaining Equity with Refinancing
Tuesday
How To Make Money This Month In Real Estate
What's the Bradley program all about ?
The "No Nonsense" straight to the point method to purchase your own house or investment property with little money down.
Is it true that you can buy a home without credit?
This program reveals how you can put very little money down on your dream home or investment property and secure it without a credit check.
It shows how you can actually buy a property with $1 - $10 down - in the next 30-60 days.
And if you thought that's all there is to the fantastic Bradley Program hang on, there's more ..
Here's in a nutshell what the Bradley Program can help you in :
- How to find and secure a home for $1-10 down, without a credit check! Then
remarket the home to make thousands of dollars in profits
- Create continual and dependable upfront cash flow
- Eliminate “Bank Qualifying”
- How to Secure Good Homes in Good Areas
- How to interview the homeowner and know within five minutes if you have a potential deal, using Power Phone Scripts.
- How to secure a home for 30% below market value using somebody else's money, then re-market the home for immediate up-front profits in the tens of thousands.
- How to also market your $1-10 down homes on a shoestring budget and receive $5,000- 10,000 up-front, and additional $300-500 monthly recurring profits for every deal you make.
- How to pay full price for a home and then immediately turn around and generate profits of thousands of dollars and even a nice monthly cash flow on a property that has no equity in it!
For more information visit the site and listen to the introduction from TC & Vickie Bradley. Many have benefited from this program alone, and perhaps your name could get etched into their huge list of success stories. There's absolutely no doubt about this program, as it's been the #No 1 best seller for the last 2 years!
The "No Nonsense" straight to the point method to purchase your own house or investment property with little money down.
Is it true that you can buy a home without credit?
This program reveals how you can put very little money down on your dream home or investment property and secure it without a credit check.
It shows how you can actually buy a property with $1 - $10 down - in the next 30-60 days.
And if you thought that's all there is to the fantastic Bradley Program hang on, there's more ..
Here's in a nutshell what the Bradley Program can help you in :
- How to find and secure a home for $1-10 down, without a credit check! Then
remarket the home to make thousands of dollars in profits
- Create continual and dependable upfront cash flow
- Eliminate “Bank Qualifying”
- How to Secure Good Homes in Good Areas
- How to interview the homeowner and know within five minutes if you have a potential deal, using Power Phone Scripts.
- How to secure a home for 30% below market value using somebody else's money, then re-market the home for immediate up-front profits in the tens of thousands.
- How to also market your $1-10 down homes on a shoestring budget and receive $5,000- 10,000 up-front, and additional $300-500 monthly recurring profits for every deal you make.
- How to pay full price for a home and then immediately turn around and generate profits of thousands of dollars and even a nice monthly cash flow on a property that has no equity in it!
For more information visit the site and listen to the introduction from TC & Vickie Bradley. Many have benefited from this program alone, and perhaps your name could get etched into their huge list of success stories. There's absolutely no doubt about this program, as it's been the #No 1 best seller for the last 2 years!
Canadian Real Estate Sales Fall
Canada's major-market home sales slipped 4.1 percent in October on a seasonally adjusted basis from the previous month, according to The Canadian Real Estate Association.
Closed transactions via the Multiple Listing Service numbered 25,111 units in October, down from 26,190 sales the previous month.
Activity remains strong, with seasonally adjusted sales reaching their second-highest level on record for the month of October – surpassed only by last year's record for the same month.
Sales in the first 10 months of this year remained 2.8 percent higher than the same period last year, the association reported. Sales surpassed all previous year-to-date records in a number of major markets, including Calgary, Edmonton, Winnipeg, Toronto, Hamilton and Ottawa.
Major-market MLS residential average price rose by 8.4 percent (year-over-year) to $252,619 in October. In most major markets, year-over-year average price growth has settled into mid-to-high single-digit territory. Large double-digit increases were once again posted in a few markets, including Montreal, Winnipeg and Vancouver.
"With just two months to go, activity remains on track to set a new annual record," said CREA's chief executive officer, Pierre Beauchamp.
"Positive news about Canadian economic and job growth means the Bank of Canada will likely raise its trend-setting Bank rate by another one-quarter of a percentage point in December," said CREA's chief economist Gregory Klump. "The Bank will want to take some time to assess the economic impact of the rapid ascent in the Canada-U.S. currency exchange rate, putting further interest rates on hold until at least March 2005.
"Slightly higher interest rates will still be favorable for the housing market, which will remain on simmer over the rest of the year and in 2005. With the market becoming more balanced, year-over-year price increases will become more modest come spring," Klump said.
Closed transactions via the Multiple Listing Service numbered 25,111 units in October, down from 26,190 sales the previous month.
Activity remains strong, with seasonally adjusted sales reaching their second-highest level on record for the month of October – surpassed only by last year's record for the same month.
Sales in the first 10 months of this year remained 2.8 percent higher than the same period last year, the association reported. Sales surpassed all previous year-to-date records in a number of major markets, including Calgary, Edmonton, Winnipeg, Toronto, Hamilton and Ottawa.
Major-market MLS residential average price rose by 8.4 percent (year-over-year) to $252,619 in October. In most major markets, year-over-year average price growth has settled into mid-to-high single-digit territory. Large double-digit increases were once again posted in a few markets, including Montreal, Winnipeg and Vancouver.
"With just two months to go, activity remains on track to set a new annual record," said CREA's chief executive officer, Pierre Beauchamp.
"Positive news about Canadian economic and job growth means the Bank of Canada will likely raise its trend-setting Bank rate by another one-quarter of a percentage point in December," said CREA's chief economist Gregory Klump. "The Bank will want to take some time to assess the economic impact of the rapid ascent in the Canada-U.S. currency exchange rate, putting further interest rates on hold until at least March 2005.
"Slightly higher interest rates will still be favorable for the housing market, which will remain on simmer over the rest of the year and in 2005. With the market becoming more balanced, year-over-year price increases will become more modest come spring," Klump said.
Saturday
Foreclosure Listings And Report Services What You Should Know
Foreclosure Listing and Report Services: What You Should Know
Many consumers are baffled by the onslaught of foreclosure reporting, listing or information services. Many are confused about the different types of information available or even the kind of information they need. Even some industry professionals aren't sure what to make of many of these services.
Unfortunately, there is too much misinformation regarding lists of foreclosed properties, whether bank owned or government owned, pre-foreclosure or post-foreclosure, statewide, nationwide or local.
The industry is not what it was several years ago. The economy has improved substantially. Inventories of bank owned and government owned properties are down. The banks no longer just give the properties away. True, bank owned opportunities were more abundant in the past. Today, several lenders enjoy selling their properties at market value. Opportunities will always be available however, for those who take the time to learn and understand the process.
True investors will pay just about any price for quality data. The cost has little significance, as they will make thousands in profits buying and selling the properties. The type and quality of the data you need should help in determining the service you use. The integrity and reputation of the service provider must be considered.
Most Common Questions :
Why do I have to pay for a list of properties, isn't this public information?
The answer is yes and no. The transfer of real property is always recorded in the county courthouse where the property is located. That makes it public information.
A list publisher or consumer for that matter, must request a list of foreclosed properties from participating lending institutions. Why request? Because there is no law stating that the lender must make this information widely available, just as there is no law requiring you to make public a list of your personal possessions for anyone who may demand it. You can, if you so choose, visit your county courthouse, go through all the deed and mortgage books and locate one property at a time, those that have been transferred to the lender. An arduous process at best. An alternative would be to go to every single auction, in every county you have interest in, and watch which properties go back to the lenders. So in buying a list, what you're paying for is content and convenience. By yourself, it would take hundreds of hours and a lot of money to compile the data you need.
Can't I just call the bank and get a list for free?
Again, yes and no. Most consumers have a difficult time trying to reach the right party at the bank in an attempt to get a list. Some lenders are more cooperative than others. Citibank for example, now charges 50 dollars for a list of their properties. While it is disagreeable with this policy, you have to understand their reason. Too many uniformed buyers call the banks in an attempt to buy properties for 30 cents to 50 cents on the dollar. This charge is most likely an effort to separate the know-nothings from the serious investor. The bank does not want to be bothered by those who do not understand the process or by those who make absurd offers ultimately wasting the banker's time.
Why are some properties sold or not available from the list I just received?
In fairness to all list publishers, many lenders do not update their lists frequently enough. Some properties may be sold. Some may have been off the market for quite some time. NO list of REO properties, can be 100% accurate.
Remember, there is no national network. The proper accumulation and recording of this data is an imperfect science. Data quality and integrity is dependent on the source and the method of reproduction used by the provider.
Are there any good listing services out there?
Yes, several. One good one for example is RealtyTrack noted for excellent comprehensive data service and is highly recommended. You can visit the site and take advantage of their free trial here.
Do your research. Buy the type of information that most closely matches your investing criteria. If you are skeptical, ask for a sample. Always compare quality and prices. It is up to you to protect yourself from the scam artists.
Many consumers are baffled by the onslaught of foreclosure reporting, listing or information services. Many are confused about the different types of information available or even the kind of information they need. Even some industry professionals aren't sure what to make of many of these services.
Unfortunately, there is too much misinformation regarding lists of foreclosed properties, whether bank owned or government owned, pre-foreclosure or post-foreclosure, statewide, nationwide or local.
The industry is not what it was several years ago. The economy has improved substantially. Inventories of bank owned and government owned properties are down. The banks no longer just give the properties away. True, bank owned opportunities were more abundant in the past. Today, several lenders enjoy selling their properties at market value. Opportunities will always be available however, for those who take the time to learn and understand the process.
True investors will pay just about any price for quality data. The cost has little significance, as they will make thousands in profits buying and selling the properties. The type and quality of the data you need should help in determining the service you use. The integrity and reputation of the service provider must be considered.
Most Common Questions :
Why do I have to pay for a list of properties, isn't this public information?
The answer is yes and no. The transfer of real property is always recorded in the county courthouse where the property is located. That makes it public information.
A list publisher or consumer for that matter, must request a list of foreclosed properties from participating lending institutions. Why request? Because there is no law stating that the lender must make this information widely available, just as there is no law requiring you to make public a list of your personal possessions for anyone who may demand it. You can, if you so choose, visit your county courthouse, go through all the deed and mortgage books and locate one property at a time, those that have been transferred to the lender. An arduous process at best. An alternative would be to go to every single auction, in every county you have interest in, and watch which properties go back to the lenders. So in buying a list, what you're paying for is content and convenience. By yourself, it would take hundreds of hours and a lot of money to compile the data you need.
Can't I just call the bank and get a list for free?
Again, yes and no. Most consumers have a difficult time trying to reach the right party at the bank in an attempt to get a list. Some lenders are more cooperative than others. Citibank for example, now charges 50 dollars for a list of their properties. While it is disagreeable with this policy, you have to understand their reason. Too many uniformed buyers call the banks in an attempt to buy properties for 30 cents to 50 cents on the dollar. This charge is most likely an effort to separate the know-nothings from the serious investor. The bank does not want to be bothered by those who do not understand the process or by those who make absurd offers ultimately wasting the banker's time.
Why are some properties sold or not available from the list I just received?
In fairness to all list publishers, many lenders do not update their lists frequently enough. Some properties may be sold. Some may have been off the market for quite some time. NO list of REO properties, can be 100% accurate.
Remember, there is no national network. The proper accumulation and recording of this data is an imperfect science. Data quality and integrity is dependent on the source and the method of reproduction used by the provider.
Are there any good listing services out there?
Yes, several. One good one for example is RealtyTrack
Do your research. Buy the type of information that most closely matches your investing criteria. If you are skeptical, ask for a sample. Always compare quality and prices. It is up to you to protect yourself from the scam artists.
Wednesday
Finding Investors Who Will Buy Your Properties
How To Buy With $0 Down Payment - The Basics!
"Finding Investors Who Will Buy Your Properties!"
Part Three In A Series
by
Joe Crump
Here is how to find a few investors who will buy from you over and over again! This is so easy, you'll laugh with delight when the phone calls start coming in.
This step in the process is inexpensive and easy do. All it takes is a simple classified ad. I suggest that you run it in your Sunday real estate section under
"investment property." The ad will cost 15-25 dollars.
I'm not going to give you the ads here, you'll have to get my book to get the exact ads I've used, tested and proven effective over the past 15 years. The ads alone
will save you thousands of dollars in wasted money.
***********************************************************************************************************
FREE AUDIO PROGRAM
You can get a FREE copy of my audio program, "How To Quit Your Job AND Increase Your Monthly Income With Real Estate Investments!" Just go : here
***********************************************************************************************************
With the three different types of ads that I give you in the book, you will get calls from three different types of investment real estate Buyers.
1. An investor who has money for a down payment and has good credit, but wants to get a good deal.
2. An investor who has no money for a down payment and bad credit and doesn't care what kind of deal he gets as long as he gets a piece of real estate.
3. An investor who has some money for a down payment, but may have credit problems.
Each of these investors can make money with the properties that you sell them, if they pay attention and do their best to keep them rented.
And best of all... you can make money selling to each of these types of investors if you structure the deal properly.
************************************************************
NEXT WEEK- PART FOUR
"Finding End Users To Buy Your Properties!"
************************************************************
UPCOMING ARTICLES -
PART FIVE "Lease Optioning Your Properties!"
PART SIX "Get Top Dollar For Your Home By Financing It For
The New Buyer!"
***********************************************************************************************************
If you haven't checked out Joe Crump's "26 Week Virtual, Online Real Estate Investment Coaching Program" yet, go to his web site for full details.
It is located here
While you're there, download his FREE Audio titled, "Quit Your Job AND Increase Your Monthly Income!" It is a full blown, moneymaking, *extremely detailed*, sample of what you get when you sign up for the full 6-month course.
You will get to hear him speak for about 30 minutes about how to replace your income using real estate investments... even if you don't have money for a down payment or good credit. Best of all... it's FREE.
***********************************************************************************************************
"Finding Investors Who Will Buy Your Properties!"
Part Three In A Series
by
Joe Crump
Here is how to find a few investors who will buy from you over and over again! This is so easy, you'll laugh with delight when the phone calls start coming in.
This step in the process is inexpensive and easy do. All it takes is a simple classified ad. I suggest that you run it in your Sunday real estate section under
"investment property." The ad will cost 15-25 dollars.
I'm not going to give you the ads here, you'll have to get my book to get the exact ads I've used, tested and proven effective over the past 15 years. The ads alone
will save you thousands of dollars in wasted money.
***********************************************************************************************************
FREE AUDIO PROGRAM
You can get a FREE copy of my audio program, "How To Quit Your Job AND Increase Your Monthly Income With Real Estate Investments!" Just go : here
***********************************************************************************************************
With the three different types of ads that I give you in the book, you will get calls from three different types of investment real estate Buyers.
1. An investor who has money for a down payment and has good credit, but wants to get a good deal.
2. An investor who has no money for a down payment and bad credit and doesn't care what kind of deal he gets as long as he gets a piece of real estate.
3. An investor who has some money for a down payment, but may have credit problems.
Each of these investors can make money with the properties that you sell them, if they pay attention and do their best to keep them rented.
And best of all... you can make money selling to each of these types of investors if you structure the deal properly.
************************************************************
NEXT WEEK- PART FOUR
"Finding End Users To Buy Your Properties!"
************************************************************
UPCOMING ARTICLES -
PART FIVE "Lease Optioning Your Properties!"
PART SIX "Get Top Dollar For Your Home By Financing It For
The New Buyer!"
***********************************************************************************************************
If you haven't checked out Joe Crump's "26 Week Virtual, Online Real Estate Investment Coaching Program" yet, go to his web site for full details.
It is located here
While you're there, download his FREE Audio titled, "Quit Your Job AND Increase Your Monthly Income!" It is a full blown, moneymaking, *extremely detailed*, sample of what you get when you sign up for the full 6-month course.
You will get to hear him speak for about 30 minutes about how to replace your income using real estate investments... even if you don't have money for a down payment or good credit. Best of all... it's FREE.
***********************************************************************************************************
ZipRealty goes public
Shares of ZipRealty Inc. priced at $13 each, rose as high as $17.50 in early trading and were at $16.10, a gain of $3.10, or 23 percent, at noon Eastern time today. ZipRealty filed for an offering of 4.55 million shares.
Trading volume of Zip stock is was strong at 3.4 million shares.
The Emeryville, Calif.-based company expects to net proceeds of about $44.5 million from the IPO, and said it will use money raised from the offering to generate working capital. Zip also said it might use some of the proceeds for potential acquisitions.
Zip has been in the brokerage business since 1999. The company warned investors in its SEC filings that its "Internet-enabled residential real estate brokerage business model remains relatively unproven" and that it will have to continue to recruit, hire and retain qualified agents and maintain access to MLS home listings in order to grow.
ZipReality is widely favored as it offers home buyers 20% commission and home sellers can save up to 25%.
Trading volume of Zip stock is was strong at 3.4 million shares.
The Emeryville, Calif.-based company expects to net proceeds of about $44.5 million from the IPO, and said it will use money raised from the offering to generate working capital. Zip also said it might use some of the proceeds for potential acquisitions.
Zip has been in the brokerage business since 1999. The company warned investors in its SEC filings that its "Internet-enabled residential real estate brokerage business model remains relatively unproven" and that it will have to continue to recruit, hire and retain qualified agents and maintain access to MLS home listings in order to grow.
ZipReality is widely favored as it offers home buyers 20% commission and home sellers can save up to 25%.
Sunday
Most common reasons houses don't sell
Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
Starting too high is the worst thing you can do.
Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with.
In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.
To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. Everyone thinks there must be something wrong with the house if it hasn't sold, some companies often may not take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers attention. In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage.
The house is in the wrong location
When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most.
Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it.
If you have a $400,000 house in a neighborhood of $100,000, be prepared to lower the price or it's more likely it will sit..
Buyers can't get past the front door
Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.
In the case of houses whose best features are inside or out back, it will be best to take good interior pictures and put 360-degree tours online if possible.
Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."
Too much glitz
Less is more when it comes to attracting buyers.
Put all of those pictures of your family and other personal treasures away. It distracts buyers and makes it harder for them to picture themselves in the house.
Take down distracting curtains and if possible put on a fresh coat of paint. Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting.
Lastly step into the buyers shoes and sincerely ask yourself if you were the buyer would you be willing to take up the house, at the listed price, in the location it is in, and in it's present state. It's likely you'll come up with some more ideas and may want to make subtle changes and fine tune. Ultimately all this would go into increasing the chances the house sells faster and at a realistically optimum price.
Starting too high is the worst thing you can do.
Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with.
In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.
To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. Everyone thinks there must be something wrong with the house if it hasn't sold, some companies often may not take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers attention. In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage.
The house is in the wrong location
When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most.
Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it.
If you have a $400,000 house in a neighborhood of $100,000, be prepared to lower the price or it's more likely it will sit..
Buyers can't get past the front door
Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.
In the case of houses whose best features are inside or out back, it will be best to take good interior pictures and put 360-degree tours online if possible.
Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."
Too much glitz
Less is more when it comes to attracting buyers.
Put all of those pictures of your family and other personal treasures away. It distracts buyers and makes it harder for them to picture themselves in the house.
Take down distracting curtains and if possible put on a fresh coat of paint. Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting.
Lastly step into the buyers shoes and sincerely ask yourself if you were the buyer would you be willing to take up the house, at the listed price, in the location it is in, and in it's present state. It's likely you'll come up with some more ideas and may want to make subtle changes and fine tune. Ultimately all this would go into increasing the chances the house sells faster and at a realistically optimum price.
Friday
Mortgage rates climb higher
Mortgage rates tipped modestly higher this week, Freddie Mac reported Thursday.
"The slight increase in mortgage rates this week was due in large part to volatility in long-term bond yields," said FM chief economist.
The rate on 30-year fixed-rate mortgages averaged 5.7 percent in the week ended Thursday, with an average 0.6 of a point payable up front, down from an average 5.64 percent last week.
When taken as a whole, this week's economic data point towards both low mortgage rates and a growing economy, both of which are good news for current homeowners looking to refinance and for families hoping to become homeowners.
The average mortgage rates are based on a survey of 125 lenders US wide.
posted : Friday
"The slight increase in mortgage rates this week was due in large part to volatility in long-term bond yields," said FM chief economist.
The rate on 30-year fixed-rate mortgages averaged 5.7 percent in the week ended Thursday, with an average 0.6 of a point payable up front, down from an average 5.64 percent last week.
When taken as a whole, this week's economic data point towards both low mortgage rates and a growing economy, both of which are good news for current homeowners looking to refinance and for families hoping to become homeowners.
The average mortgage rates are based on a survey of 125 lenders US wide.
posted : Friday
Tuesday
How To Buy With $0 Down Payment - The Basics!
"Preparing To Make A Zero Down Offer!"
Part Two In A Series
by
Joe Crump
I'm going to focus on the Seller of a hypothetical property you have found and the offer that you are going to make. You want to write it so it has a reasonable chance of being accepted.
Never offer more than you can afford to pay.
Don't get caught up in the idea that you are going to make it work no matter what. Let's face it, some deals just won't work and you have to let them go.
Ultimately, the person who gets the best deal is the person who is the least motivated. You have lots of potential homes to purchase... the Seller only has one home to sell.
Work up the numbers.
First, you need to know what the current market value of the property is.
Do this by going to your title company (you can pick any one you want, just look them up in the yellow pages). Title companies have access to comparable sales of homes in the neighborhood.
Look for homes that are very similar to the one you are preparing to purchase.
Value the home you are going to buy based on how it compares to the homes that have sold before it. Only use comps that are twelve months old or less.
***********************************************************************************************************
FREE AUDIO PROGRAM
You can get a FREE copy of my audio program, "How To Quit Your Job AND Increase Your Monthly Income With Real Estate Investments!" Just go : here
***********************************************************************************************************
There are two types of real estate we want to deal with here.
The first type, is property that you can purchase for cash, for at least 15% under market value. You need to sell these contracts to an investor to complete the deal.
Every investor out there is looking for these properties and will gladly pay a fee to get them.
The second type of deal is purchased for full market value by taking title to the property "subject to the existing loans."
I explain in detail how to make an offer on this type of property in my book. It is one of the easiest ways to purchase property with nothing down and no credit check.
***********************************************************************************************************
NEXT ARTICLE TO FOLLOW - "Finding Investors Who Will Buy Your Properties!"
***********************************************************************************************************
UPCOMING ARTICLES -
PART FOUR "Finding End Users To Buy Your Properties!"
PART FIVE "Lease Optioning Your Properties!"
PART SIX "Get Top Dollar For Your Home By Financing It For
The New Buyer!"
***********************************************************************************************************
If you haven't checked out Joe Crump's "26 Week Virtual, Online Real Estate Investment Coaching Program" yet, go to his web site for full details.
It is located here
While you're there, download his FREE Audio titled, "Quit Your Job AND Increase Your Monthly Income!" It is a full blown, moneymaking, *extremely detailed*, sample of what you get when you sign up for the full 6-month course.
You will get to hear him speak for about 30 minutes about how to replace your income using real estate investments... even if you don't have money for a down payment or good credit. Best of all... it's FREE.
----------------------------------------------------------------------------------------------------------
Part Two In A Series
by
Joe Crump
I'm going to focus on the Seller of a hypothetical property you have found and the offer that you are going to make. You want to write it so it has a reasonable chance of being accepted.
Never offer more than you can afford to pay.
Don't get caught up in the idea that you are going to make it work no matter what. Let's face it, some deals just won't work and you have to let them go.
Ultimately, the person who gets the best deal is the person who is the least motivated. You have lots of potential homes to purchase... the Seller only has one home to sell.
Work up the numbers.
First, you need to know what the current market value of the property is.
Do this by going to your title company (you can pick any one you want, just look them up in the yellow pages). Title companies have access to comparable sales of homes in the neighborhood.
Look for homes that are very similar to the one you are preparing to purchase.
Value the home you are going to buy based on how it compares to the homes that have sold before it. Only use comps that are twelve months old or less.
***********************************************************************************************************
FREE AUDIO PROGRAM
You can get a FREE copy of my audio program, "How To Quit Your Job AND Increase Your Monthly Income With Real Estate Investments!" Just go : here
***********************************************************************************************************
There are two types of real estate we want to deal with here.
The first type, is property that you can purchase for cash, for at least 15% under market value. You need to sell these contracts to an investor to complete the deal.
Every investor out there is looking for these properties and will gladly pay a fee to get them.
The second type of deal is purchased for full market value by taking title to the property "subject to the existing loans."
I explain in detail how to make an offer on this type of property in my book. It is one of the easiest ways to purchase property with nothing down and no credit check.
***********************************************************************************************************
NEXT ARTICLE TO FOLLOW - "Finding Investors Who Will Buy Your Properties!"
***********************************************************************************************************
UPCOMING ARTICLES -
PART FOUR "Finding End Users To Buy Your Properties!"
PART FIVE "Lease Optioning Your Properties!"
PART SIX "Get Top Dollar For Your Home By Financing It For
The New Buyer!"
***********************************************************************************************************
If you haven't checked out Joe Crump's "26 Week Virtual, Online Real Estate Investment Coaching Program" yet, go to his web site for full details.
It is located here
While you're there, download his FREE Audio titled, "Quit Your Job AND Increase Your Monthly Income!" It is a full blown, moneymaking, *extremely detailed*, sample of what you get when you sign up for the full 6-month course.
You will get to hear him speak for about 30 minutes about how to replace your income using real estate investments... even if you don't have money for a down payment or good credit. Best of all... it's FREE.
----------------------------------------------------------------------------------------------------------
Monday
Shopping For A House - Abroad
The real estate boom knows no borders. It's not just the rich and eccentric who buy abroad.
Real estate agents in Mexico, the Caribbean and Central America say they've seen an influx of American buyers over the past couple of years. "We have definitely noticed a trend of more buying abroad," said Jeff Hornberger, manager of international business development for the National Association of Realtors.
Good weather, inexpensive real estate and, in some countries, low taxes are part of the appeal. At the same time, rising home values stateside have made it easier to pay for second properties. The Internet, meanwhile, makes it easier to shop the world market for real estate, and in the case of some overseas buyers, live outside the country full time.
According to Nunez, a 2,500-square foot condo in Costa Rica's capital, Santa Jose, ranges from $150,000 to $200,000. Property taxes for that same condo run about $200 a year, he said, and capital gains taxes are "nonexistent."
Americans are also heading north. According to Scott Brown, senior vice president for Playground Destination Properties in Vancouver, British Columbia, Canada – and Whistler in particular – has long been a popular market for buyers from nearby Washington. "But about year and half ago we started seeing the Texas buyer," he said. "People want to come here to ski in the winter and escape the heat in the summer."
Taking your home search to different parts of the globe requires even more scrutiny of the fine print.
In Mexico, for example, foreigners are technically not allowed to own land within 50 kilometers of the coast. They can buy such land via a fideocomiso or trust deed that makes them beneficiaries of the land for 50 years, after which point it can be renewed. Still, many Americans may not be comfortable with such an arrangement. "I love Mexico, but I wouldn't buy there," said Gallo.
According to John Glaab, vice president with The Settlement Company in Los Cabos, a number of reputable companies, including Stewart Title and First American Title, offer title insurance in Mexico, thereby protecting buyers if they lose their property because of a dispute in ownership.
Another consideration for Americans buying abroad is financing. In most countries mortgages are not widely available, but that seems to be changing in Mexico and elsewhere.
"You're starting to see 20 or 30 year mortgages that are similar to what you'd get in the U.S.," said John Fair, the developer of Paraiso del Mar, adding that the rates are about two percentage points higher, while down payments of 20 percent to 30 percent are typically required.
Property taxes, though they depend on where you buy, are generally quite low. "In La Paz, they're about 0.2 percent a year," said Fair. That's about $600 a year for a $300,000 house.
Sellers don't get the same capital gains break they get in the United States. The capital gains tax equivalent in Mexico is 33 percent this year and will go down to 32 percent next year, said Fair, though sellers can deduct what they owe in Mexico from their capital gains liability in the United States.
Real estate agents in Mexico, the Caribbean and Central America say they've seen an influx of American buyers over the past couple of years. "We have definitely noticed a trend of more buying abroad," said Jeff Hornberger, manager of international business development for the National Association of Realtors.
Good weather, inexpensive real estate and, in some countries, low taxes are part of the appeal. At the same time, rising home values stateside have made it easier to pay for second properties. The Internet, meanwhile, makes it easier to shop the world market for real estate, and in the case of some overseas buyers, live outside the country full time.
According to Nunez, a 2,500-square foot condo in Costa Rica's capital, Santa Jose, ranges from $150,000 to $200,000. Property taxes for that same condo run about $200 a year, he said, and capital gains taxes are "nonexistent."
Americans are also heading north. According to Scott Brown, senior vice president for Playground Destination Properties in Vancouver, British Columbia, Canada – and Whistler in particular – has long been a popular market for buyers from nearby Washington. "But about year and half ago we started seeing the Texas buyer," he said. "People want to come here to ski in the winter and escape the heat in the summer."
Taking your home search to different parts of the globe requires even more scrutiny of the fine print.
In Mexico, for example, foreigners are technically not allowed to own land within 50 kilometers of the coast. They can buy such land via a fideocomiso or trust deed that makes them beneficiaries of the land for 50 years, after which point it can be renewed. Still, many Americans may not be comfortable with such an arrangement. "I love Mexico, but I wouldn't buy there," said Gallo.
According to John Glaab, vice president with The Settlement Company in Los Cabos, a number of reputable companies, including Stewart Title and First American Title, offer title insurance in Mexico, thereby protecting buyers if they lose their property because of a dispute in ownership.
Another consideration for Americans buying abroad is financing. In most countries mortgages are not widely available, but that seems to be changing in Mexico and elsewhere.
"You're starting to see 20 or 30 year mortgages that are similar to what you'd get in the U.S.," said John Fair, the developer of Paraiso del Mar, adding that the rates are about two percentage points higher, while down payments of 20 percent to 30 percent are typically required.
Property taxes, though they depend on where you buy, are generally quite low. "In La Paz, they're about 0.2 percent a year," said Fair. That's about $600 a year for a $300,000 house.
Sellers don't get the same capital gains break they get in the United States. The capital gains tax equivalent in Mexico is 33 percent this year and will go down to 32 percent next year, said Fair, though sellers can deduct what they owe in Mexico from their capital gains liability in the United States.
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