11 Different Ways to Participate in The New Millennium Real State Boom

Writen by Mike Makler

Many parts of the country are going through a real estate boom. In recent reports real estate is showing double digit growth in many parts of the country. In still many other real estate growth is outpacing inflation.

1 Real Estate Agent

Real Estate agents are responsible for the vast majority of Real Estate Sales, Matching qualified buyers with eager sellers.

2 Mortgage Broker

A good mortgage broker will represent 10 or more lenders. Each lender may have dozens of loan programs. The job of the Mortgage broker is to find the best loan for each client.

3 Loan Originator

A loan originator or loan officer will work for the mortgage broker and help the client choose the best loan for their situation.

4 Title Officer

A title officer will issue a title insurance policy on Real property. The purpose of the title insurance is to protect the buyer and the lender in the event there are claims against the property that weren’t settled at time of purchase.

5 Loan Processor

A Loan Processor often gets paid a salary as well as a bonus for each funded loan. Loan Processors do all the paper work to push a loan thru.

6 Loan Underwriter

The Loan Underwriter works for the lender and makes sure the borrower meets the loan qualifications

7 Appraiser

An Appraiser will place a value on the house that will be used by the lender to determine the amount of money they are willing to lend on a property

8 Home Inspector

A home inspector will often look over the house to find any problems prior to the close of the sale. The buyer can then negotiate with the seller to get some or all of the major problems fixed.

9 Insurance Agent

Lenders require a Home Owners Insurance policy. Often new homeowners will also purchase, Flood, Mortgage life and earthquake insurance as well.

10 Escrow Officer

An escrow officer works for an escrow company. An escrow company is a neutral 3rd party that holds and disperses the funds to ensure a smooth transaction

11 Real Estate Lawyer

Many Real estate transactions require the services of a lawyer

About the Author
Mike Makler Offers Financial Services (Mortgages,Life Insurance, Annuity) in Florissant Missouri which is in North St. Louis County Missouri Just Across the Bridge from St. Charles Missouri

Call Mike at 314 398 5547

Visit Mike’s Web Page:
http://ewguru.com/finance

For Missouri Specific Insurance and Loan Questions:
http://ewguru.com/Mo Finance

Get Mike’s Newsletter Here
http://ewguru.com/fin news

Copyright © 2005 2006 Mike Makler

How to increase the Saleable Value of your Home

Writen by Sameer Panjwani

When selling your home, you’ll want to fetch the best price possible for your home yet it so happens in many cases, that buyers give offers that just don’t meet your expectations. Of course, you will have to negotiate but you still may not end up getting how much you want. To ensure you get better offers and close in on a better deal, you need to make the buyer really want your home - you’ll have to impress him. You may think, ‘Oh no, I don’t want to spend on renovations out here.’ Well, there are ways you can go about adding value to your home without spending as with there obviously being ways to add value with spending. Of course, when it comes to spending on renovations, only do so if you think it’ll be justified a by a similar increase in the home’s sale price or it’ll considerably help improve the chances of you selling your home faster.

So how do you add value to your home so that you can quote a higher price or expect better offers for your quoted price? Here below are some tips:

Tips for the interiors of your home:

Dark colors usually turn off most buyers. It’s advisable to paint your walls white or off white. Lighter colors will also give a spacious feel to your home and make it look bigger.

Clean and organize your basement, attic and garage.

Clean everything - carpets, windows, mirrors, appliances A clean and tidy house will make your home look more welcoming to prospective buyers.

Repair any leaking roofs or walls you may have and paint over the water stains to show no sign of water damage. Replace any discolored wallpaper.

Replace broken switches, tighten loose door knobs and eliminate any squeaky noise that may arise from any of the windows or doors in the house.

Tips for the exteriors of your home:

Cut your lawn weekly while showing your home. Rake leaves and sweep the sidewalk when the house is to be shown. You may also want to plant more flowers or use potted plants to give more color and life to your landscaping.

Paint or clean the front door. Also make sure there’s a neat door mat in the front entrance.

Replace cracked window panes, if any.

House painting would make your home look new although do so if it’s really necessary and after considering the costs involved.

Sprucing up the interiors and exteriors of your home is necessary if you want to get best value for your home. Expenditures may arise in doing up your home but it will only add to the sale value of your home and make it much easier for your home to sell in quick time.

Best of luck with your home sale!

Sameer S Panjwani is the CEO and Founder of ChoiceOfHomes.com Sell / Rent your Home online.

Enhancing Homes’ Sex Appeal

Writen by Luigi Frascati

The marketing power of sex appeal is not a new concept. It is no coincidence that sex innuendo and the ubiquitous use of the erotic and exotic has been used for several years in commerce and trade, from the so called satiric pornography of Calvin Klein ads to the muscle men and women hawking Evian water, to the sensual allure used in graphic and advertising design in music, art, film, packaging, and publishing. Artistic flare and technological innovation are unquestionably the basis of the recent partnership of Dolce & Gabbana with Motorola for the marketing of one thousand gold Motorola RAZR V3i phones, and the marketing itself is based on the tenets and principles of Evolutionary Economics.

Evolutionary Economics theorize that change is based on repetition of technology and routines. If in fact change occurs constantly in the economy, then a mechanism is in act that replicates the Darwinian sequences of evolution that provide selection, generate variation and establish self replication - a process that is otherwise known as ‘progress’. The theory postulates that markets act as the major selection vehicles. The variety of competing firms is both in their products and practices that are matched against markets. Both products and practices are determined by routines that firms use: standardized patterns of actions implemented constantly. By imitating these routines, firms propagate them and thus establish inheritance of successful practices.

The link between sex appeal and marketing is established by one of the tenets of Evolutionary Economics, in that consumers love novelties and, what’s more, can create novelties. Evolutionary Economics does not view consumers as mere passive recipients of goods and services but, rather, active producers as well. The reason is that at the basis of production and consumption there is human imagination and desire for novelty. Furthermore, when people actually ‘own’ novelties in the form of goods they set about to convince others that the possession of such novelties shows that they have achieved a higher status, and that if others were clever enough to do what they did or to possess the same things that they have, then the others too could achieve high status and enjoy all the good things that come from it, including the best sex (if a male) or the highest economic security (if a female) that they could possibly desire. As Aristotle Onassis once said “The only point in being rich is to have as much sex as you want with as many beautiful women as you want”.

As unorthodox and bizarre as this particular business concept may sound, it has revealed itself to be deadly effective in commerce and trade. Taken as individual goods, high fashion couture and cellular phone have absolutely nothing in common and, on the other hand, if Motorola itself were to set about selling gold cellular phones the marketing would likely be a catastrophic flop. But by combining Motorola’s technology with Dolce & Gabbana’s fashionable sex appeal and artistic exotic innuendo, the match is perfect. This concept is about to enter finance and real estate as well. Think about it carefully: the home is the place where the two genders meet, it is the perfect status symbol and the purchase and sale of a home is the quintessential novelty for the Seller (the producer) and the Buyer (the consumer). A question, therefore, arises as to how Sellers can improve the odds by enhancing home marketing through sex appeal. The answer lies in making homes as much comfortable (for the men) and reassuring (for the women) as possible.

Architectural styles of new constructions are changing already, with the ever increasing round looks of exteriors reminiscent of feminine sensuality and the use of glazed windows and conspicuous steel beams - male machismo at its best, while on the inside, comfort and reassurance are perhaps best signified by the increasing use of home elevators. The bathroom is certainly one of the most frequently used rooms in the house, and just a few subtle changes in color can make the difference between a cold, sterile environment and a warm, welcoming one. The same effect of intimacy can be expanded throughout the home by painting a few rooms, hang no sew window treatments an even by merely adding throw pillows here and there, or new bed linens. The skillful blend of colors, woods and design elements promotes feminine harmony, warmth and balance with char green, sand, white, red, black, dark brown and all colors of nature at the top of the line and, if contemplating a hardwood floor, mahogany is the wood of choice since it enriches the environment rendering a sense of abundance, and slate flooring and polished concrete walls help create a natural masculine feeling, especially if combined and contrasted with the glacial looks of stainless steel appliances.

It does not take much in terms of money invested to create the link with sex appeal, which is the stimulant to emotional engagement. And since real estate selling is, ultimately, based entirely on emotions the Seller that can find the way to use emotional leverage through intimacy by tapping and enhancing the source or sources of home sex appeal will benefit immensely from one of the best marketing tools ever, the efficiency of which has been proven over and over by major marketing establishments throughout the world.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

Why Buy Pre Foreclosures?

Writen by Ken Fong

Have you ever heard of the term pre foreclosure? Do you think that this means the same thing as a foreclosed property? If you answered yes to these questions you are not alone. But at the same time, if you answered yes you are not familiar with the advantages of buying pre foreclosures.

Pre foreclosures are properties that are in the final stage before they are taken back by the bank or lender. This means that the owner is still in charge of the property, but if they do not make any attempt to rectify their situation the bank or financier will repossess the home.

There are many benefits in buying pre foreclosures. The reason that most people miss out on these homes is because they do not know what they are, or how to find them.

The number one advantage of pre foreclosures is the lower price associated with such properties. The owner has to sell the house before the bank or lender takes it and is more inclined to listen to any offers that they receive. It is quite possible to find pre foreclosures that are up to 50% off of the market value.

In addition to the bargain that you can get on pre foreclosures, you will also be able to deal directly with the owner. This is an advantage because the buyer is in control during a pre foreclosure deal. If the home owner turns down your offer and fails to find another buyer, they will end up losing everything. If they manage to sell the home they can at least end up making back some money.

Finding pre foreclosures can be done in the same way as locating homes that that bank already owns. You can find them in the newspaper, online, or by calling the lender directly on the phone. It is really up to you, and you can base it on what seems to be most effective.

Compared to foreclosed properties, you would normally face less competition with pre forecloses. This increases the chance of getting a great price and ending up with the home of your choice.

If you are looking for a new home, don’t forget to check out these properties. Buying pre foreclosures can be very profitable.

Ken Fong
http://www.therealestatescoop.com
Terra Bites of Real Estate Information

Home Inspection Misconceptions

Writen by Michael Del Greco

What To Expect: Home buyers sometimes buy their home in on impulse. Home inspectors can help home buyers avoid buyers remorse by reporting on home defects and problems before the home buyer finds them after closing. Professional home inspectors assist home buying clients with the tools they need to make an educated choice regarding the quality and condition of their potential new home. Home buyers must take care to hire the most experienced home inspector they can afford and make sure the person they hire has their best interest solely in mind. Inspectors who rely on realtors for referrals sometimes have moral dilemmas.

Buyers Benefits: A professional home inspection is the best way for potential home buyers to effectively evaluate the risks of a property purchase. A major concern of home buyers is being suddenly confronted with major and costly problems after they take possession of a property. A professional pre purchase home inspection can reduce anxiety by screening for problems and itemizing them in a comprehensive report. This report may include approximations of repair costs and recommendations of useful upgrades to the property systems. The general result of a professional home inspection is that property buyers make significantly more informed purchases.

Screening for Problems: All homes have strong and weak points, they are not always what they seem. Gain the perspective and sound information you need to make better decisions with a home inspection performed by an experienced professional home inspector. A good home inspector works through a very long checklist of potential concerns to identify the major and minor deficiencies in the home. A good report will clearly describe the problems and illustrate them along with the what to and how to of repairs.

Provide Owners Benefits: Home owners who are planning to make improvements to their homes in order to increase its market value would be well advised to have it inspected first. A home inspectors can help prioritize home improvements and offer advice on the best ways to approach repairs. More importantly, an inspectors can help the seller identify potential or undiscovered problems before those problems become material for contract contingencies. By taking a pro active approach one can avoid the frustrations many owners encounter when they are asked to renegotiate their contracts because of unanticipated problem areas.

Credentials: Like any other professional, home inspectors (even those with licenses) have varied degrees of expertise. All home inspectors should be carefully screened. Inspectors learn from experience. It takes a few thousand inspections and a more than a few complaints for a home inspectors to LEARN what it takes to satisfy clients.

Recently passed legislation allows New Jersey home inspectors to be licensed with as little as three weeks of class room training and just one week in actual homes. Licensing is a minimum qualification. Make sure you ask for resume! Belive it or not the standards in many states are LOWER!

Many people without specific home inspection credentials offer home inspection services. Likewise, credentials are not always what they seem. Engineering and architectural credentials alone do not prepare anyone to competently inspect homes and communicate the findings. A helping attitude, good communication skills, and mature judgment must supplement technical competence. Make sure you work with a company employing a contract which specifies both what is inspected and what limitations apply.

Additional services like the ones listed below are usually NOT included in the standard home inspection are available for an additional fee.

Code compliance: to determine what changes and upgrades are necessary for the home to comply with modern (or when built) building, fire, plumbing, zoning, mechanical and electrical code and to determine if the required permits and inspection were obtained when changes were made to the home.

Engineering analysis: structural, heating, cooling, soils, electrical, geological, site, investigate for latent structural defects or problems, evaluate the condition of playground equipment, determine if private waste disposal systems are functional, determine if cantilevers are safe, evaluate traffic density and noise, evaluate insulation efficiency, perform flood plain review and issue flood hazard certification, evaluate easements and encroachments, determine the quantity and cost of wood replacement made necessary by rot, age, water infiltration and insect damage.

Hazardous materials: to determine the presence or absence of: asbestos, lead paint, lead in water, formaldehyde, radon gas, lead paint, fungus, mold, mildew, water and air quality, toxic or allergenic substances, flammable materials, underground oil or fuel tanks and other environmental hazards.

Pest evaluation: to determine the presence of animal, rodent, termite, pest or insect infestation and to provide an opinion as to the cost of repairing damage caused from these infestations.

Pool and spa: to evaluate the necessary changes and upgrades to pools, pool equipment, gates and fences.

Plumbing: to determine the condition and necessary upgrades and repairs to the waste piping, main sewer pipe, supply piping, venting, shower pans and tub walls, lawn and fire sprinklers, water wells (water quality and quantity) condition of underground and under slab piping.

Electrical: to determine the condition and necessary upgrades and repairs to the electrical system, telephone system wiring, intercom system, security systems, heat detectors, carbon monoxide detectors, smoke detectors, provide circuit mapping, determine the electrical system capacity, adequacy of ground bonding, perform voltage testing, to evaluate electro magnetic fields, check voltage drops and circuit impedance.

Chimney sweep: check condition of flue, safety of wood burning stoves and perform level II chimney flue inspections as recommended by National Fire Protection Association.

Appraisal: determine the value of building and suitability for intended use, check zoning ordinances and provide an opinion on the advisability of purchase.

Mechanical contractor: determine the adequacy of the heating and cooling system size and provide efficiency measurement, provide an underground storage tank evaluation, perform heat exchanger leakage test, check the condition of evaporator coils, determine air flow velocity and balance system.

Appliance service person: test and calibrate oven and range temperature, test for microwave leakage, check to determine if appliances secured to floor as required.

Roofing contractor: more detailed evaluation of the roofing, flashing, chimney, provide tall ladder roof inspection and a detailed evaluation of the life expectancy of the roofing, feasibility of repair vs. replacement.

Home buyers are advised to make sure they check all of the following items carefully. If any of these problems after the purchase of the home the problems come with the home and they are now the YOURS (without costly litigation).

GENERAL

Were all your questions answered by the home inspector?

Were all your questions for the home owner answered in writing?

Have the previously agreed to repairs been professionally completed?

Have warranties and guarantees been provided for agreed upon repairs?

Were the home inspectors recommendations to have all recommended additional inspections and invasive inspections performed? If not open ended risks may be more than most buyers budgets can bare?

EXTERIOR

Check the operation of the windows and screens?

Has water been stopped from accumulating near the building?

Check doors, decks, siding, windows & fences for damage / deterioration?

Are there any signs of water infiltration from the roof, siding or windows?

Are there any signs of gutter or downspout problems? Are the downspouts discharging water away from the foundation?

Has the soil around the home been pitched away from the foundation?

INTERIOR

Have all the areas listed in the home inspection report as inaccessible or not traversed been accessed & professionally inspected to determine if defects exist?

Do the garage doors and their openers function?

Was the reversing devices for the garage door openers tested?

Did you find out why any stains or cracks on any of the walls or ceilings that have become larger or have appeared since the time of the home inspection?

Have all cracked windows or mirrors been repaired?

Have all the clouded double pane windows been replaced?

Are all the permanently installed fixtures or appliances been in place and in good condition?

Are there any signs of birds, rodents or animals? Has any damage to damage to the walls, floor or ceilings been repaired?

PLUMBING

Do the plumbing fixture faucets leak or drip?

Are the plumbing fixtures chipped or damaged?

Was water for a time through all plumbing fixtures and check for leakage?

Was water for a time through all plumbing fixtures and check for stoppage?

ELECTRICAL

Are all the light fixtures are all in place?

Do the light fixtures, switches and receptacles all function?

Does the door bell work?

HEATING AND COOLING

Do the thermostat, heating and cooling systems function?

Is there adequate air flow through the heating and cooling registers?

Did all the radiators or convectors get warm in a reasonable amount of time?

KITCHEN

Do all the appliances function properly?

Are the counter tops or cabinets damaged?

Do the cabinets and drawers operate?

Complete this check list during the walk through and go over it with your attorney prior to closing on the property Most inspection companies accept no liability for changes and problems that occur after the home inspection takes place. Please take the time to carefully and completely perform your pre settlement walk though. Contact the home inspection company if there are any questions.

Michael Del Greco is President of Accurate Inspections, Inc. A New Jersey home inspection firm, has performed thousands of home inspections in New Jersey since 1993, taught the New Jersey Home Inspector Licensing classes and New Jersey Home Inspector CEU classes as well as participated in developing questions for the National Home Inspector Exam. The home inspector’s resume may be viewed at http://www.accurateinspections.com/michael2.htm

Home inspector Michael Del Greco is President of Accurate Inspections, Inc., a New Jersey Home Inspection Firm He has performed thousands of home inspections in New Jersey. He has taught the New Jersey Home Inspector CEU & Licensing classes and help in developing questions for the National Home Inspector Exam.

Avoid Common Real Estate Investment Mistakes

Writen by Martin Lukac

No matter if you are a seasoned real estate investor or a first time buyer, there are some mistakes that you should watch out for.

Buying a home is a true investment. You hope that you buy low, gain value and sell high. But like any investment, there is risk. Market conditions, mortgage terms and property location will factor into how much risk you will face. Here are some common mistakes that people make when buying properties.

1. Leaping with your eyes shut

You shouldn’t ever put your money into something without knowing what you are getting, where you are going and what you want out of it. You need to know what you are buying, why you are buying and what you are going to do with it. Too many people set out to “flip” a home without any idea where they are going with it.

Look to the long term, not just tomorrow. Figure out what you want to buy. Decide how long you want to own the property. Set goals and make plans. If you are investing, you better know what rate of return you want and when you will exit.

2. Thinking that investments are for the rich

Investments aren’t limited to those with endless reserves of money. If you have five dollars, you can invest in something. You can buy a home without much money. You can buy an investment property without much money. There are many good loans out there that will allow you to put a limited amount of money down. But if you put little to nothing down, you must realize that you won’t have as much or any equity in the home for a long time.

You will also pay a higher interest rate, a higher point and a higher monthly payment. If it’s a good deal, that’s great. But you have to figure out all of the dollars and cents before you get started. You want to be absolutely sure that your investment will pay you back in the long run.

3. Getting rid of a property like a hot potato

I understand the need to buy real estate and sell it as quickly as possible. After all, every month you are making a mortgage payment on the home. But in investment terms, it is often better to hang on to a property. There are added gains, tax benefits and equity. If you are smart and purchase at the right time, the appreciation of the property value could be quite nice.

4. Only looking at what is paying you now

Investments don’t always pay us every day. Remember, it is a long term situation.

5. Expecting to always win

When it comes to investments, you aren’t going to always win. When you calculate cash flow, appreciation, loan reduction and tax benefits, having a negative cash flow isn’t necessarily bad. In the short term, you can have negative cash flows. Remember, long term…

Whether you are looking at your first home, or your fifth, you need to stay committed til the end. You have to keep your goals in mind and stick with your plan. Write down your goals and have others help keep you on track. Good Luck.

Martin Lukac, represents http://www.RateEmpire.com, a finance web company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today

Selling Tips - Determining Your Market

Writen by Raynor James

The decision to sell a home is more complex then many people first realize. One of the primary issues to consider is your market and how it will impact the sale of the property.

People sell their homes for a variety of reasons. In some cases, the sale is involuntary due to issues that arise in every day life such as a job related transfer, divorce and financial problems. For a vast majority of people, however, the decision to sell is made under less trying circumstances. If you fall into this category, determining the nature of the real estate market in your area is a critical step to take.

When determining a market for real estate in a particular area, the central issue is what kind of a market is present? There are two types - the seller’s market and the buyer’s market. Each market has particular characteristics and will impact how much time and money will be involved in your selling effort.

A seller’s market is one where there are more buyers than properties being listed. It is no secret that the United States has been in one of the hottest seller’s markets ever seen for the last seven years, but it is really starting to cool off. This doesn’t mean, however, that the national trend reflects the situation in your particular area. If your area is still red hot, you are in the cat birds seat. You can list your home with a high price for your area and still reasonably expect to get offers.

A buyer’s market is one where there are more listings than buyers. In such a situation, homes tend to sit on the market for substantial amounts of time. Many parts of the country, such as Texas and Colorado in general, have historically been buyers markets. For some reason, these two states never really benefits from the massive seller’s market push the last few years.

Anyway, if you are in a buyer’s market, you need to determine two things. First, do you have sufficient equity in your home to make selling it at a competitive price a worthwhile decision? Second, would it perhaps be better to wait a few years until the market falls in your favor? Unless there is a compelling reason to sell, many homeowners will wait out buyer’s markets. If there is a compelling reason, you need to price your home near the bottom of the market for comparable homes in your area to get a quick sale. If it is any comfort, you should be able to turn around and find a good deal in your area as a buyer.

At times, the real estate process can be a confusing one for buyers and sellers. If you take the steps to determine your market before making a specific decision, you will be better off.

Raynor James is with the site FSBOAmerica.org FSBO homes for sale by owner.

California Ranks Lowest in Home Affordability

Writen by Martin Lukac

According to the California Building Industry Association, the California housing market is in an interesting place.

California currently sits as the most unaffordable place to live. Los Angeles County is the least affordable market in the country to purchase a home. With 18 of the bottom 20 markets, California isn’t appealing to many pocketbooks.

The data, released by the National Association of Home Builders, shows that only 1.9% of the new and existing homes sold in the first quarter could be afforded by residents earning a median income in Los Angeles County. When compared to the fourth quarter of 2005, there was a 2.3% drop in affordability for the county.

The second least affordable metro area in the country was Orange County, followed by Santa Barbara County, Stanislaus County and Monterey County. The other California metro areas in the bottom 10 were:

6. San Diego County
7. Merced County
8. Napa County
9. Santa Cruz County

Number ten was a tie between New York City and Long Island.

Nationally, 41.35% of the homes sold in the first quarter of 2006 were considered affordable to consumers with median incomes. For less than half of the 183 metro areas recorded, affordability was greater than 50%. Five areas recorded affordability levels of 90% or more.

Martin Lukac (http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Mallorca Property Special Report on the Investment Hot Spot in Southwest Mallorca

Writen by Sebastiaan Kemna

Mallorca property prices in the South West are set to boom: There have been rumours for some time that there were plans to expand the Adriano Marina (and some did have inside knowledge that this was so) however, until now, nobody had been able to confirm the details as confirmation of the project had not been made publicly available.

Starting in last Friday’s edition of our trusty local paper, the Majorca Daily Bulletin, we at last have concrete details of the extension to Port Adriano, the Marina of El Toro - and the word is WOW! We had had varying reports on the size of the extension, but what has now been approved by both the Local Council and the Balearic Central Government will turn Port Adriano into one of the best Marinas in the Mediterranean basin - why? Because throughout the Med, the demand for moorings for the Millionaires’ Superyachts is at an all time high - and Port Adriano is to have moorings for Superyachts of up to 200ft.

And as any savvy investor knows, one thing’s for sure - money attracts money, and the influx of wealth into the area will mean that the property prices in El Toro, Nova Santa Ponsa and arguably Santa Ponsa will skyrocket - and the proof of this is what is proving a bit of a negative on the Real Estate listings side - many equally savvy vendors have, in the last couple of weeks, removed their properties from the market, and just on the rumour that the Marina project was about to be announced publicly. They know that the property prices will soar, they don’t need to sell - so why not wait? (Local experts in the Real Estate sector are predicting up to 20% increase in property values within the next 2 years).

Further evidence can be seen just down the coast. Those of you familiar with Mallorca past and present will remember the days prior to Puerto Portals. Before the marina was built, Portals Nous was little more than a commuter town for Palma whereas now it is a playing ground for the rich and famous. Familiar faces such as Claudia Schiffer, David and Victoria Beckham, the Schumaker brothers and many more, can often be seen in the various restaurants and bars, and it is a known favourite of King Juan Carlos himself.

I don’t need to tell you about property prices, especially if you have ever tried buying an apartmet in Portals village, let alone the Port, or a villa in Bendinat or Costa d’en Blanes … prices are at an all time premium. And why not, after all, the port is competing with Peurto Banus and Monte Carlo, and probably winning!

So if you are looking for a sound investment, then maybe you should look no further than Puerto Adriano in El Toro, SouthWest Mallorca, it’s set to be the next big playground for the rich and famous…

Mallorca Hot Property is a Real Estate Agency based in Santa Ponsa, Mallorca specialising in Residential and Luxury Real Estate.

Investment Real Estate A New Twist: Be the Bank, Not the Landlord, and Get Rich Without the Work!

Writen by Mark Barnes

I was a landlord for a decade, and I believe I probably lost a year of life for each year I tried to maintain 26 properties. I learned the hard way that the most efficient way to make money in investment real estate is to create a mortgage note and be the bank - not the landlord.

In other words, you become a private bank, financing the entire sale or part of the sale for the buyer. When you finance a sale of property, be sure to get a high rate of interest - generally 9% to 15%, depending on all of the other terms. For this article, let’s assume you sell to someone who can’t come up with all of a $20,000 down payment, so you finance $15,000 of the loan. The note should be due in five to 10 years, meaning the buyer will likely sell or refinance his mortgage within that period, and you’ll be paid in full.

Here’s how financing a portion of a mortgage can be extremely profitable and far less work than being a landlord, who is responsible for property maintenance. Let’s assume you charge 11% on your $15,000 loan, amortized over 30 years (this makes for an easier payment and a more attractive deal for the buyer, even though you’re receiving a very high rate of interest on the loan). The payment is $142.85, which includes principal and interest. Now, you could make it even more attractive for you by writing the note with monthly payments of interest only at 11%.

This saves the buyer even more, as his payment becomes $137.50, but this does not amortize, or reduce, the $15,000 he owes you. Let’s assume the note is due in 60 months. You get $8,250 during this five year period, and in the 61st month, you get the entire $15,000 that you originally loaned. As you can see, this is a very powerful investment, as you loaned $15,000 but you received a total of $23,250.

One final point. Maybe you are three years into receiving your $137.50 (meaning you’ve collected $4,950 in payments). Now, you decide you need a large sum of money for something - say, a vacation, home improvement, college tuition, or some other investment. You are still owed two years worth of payments at $137.50, or $3,300, and the balloon payment of $15,000. You have several great options, because you have the power of controlling a lot of money.

You can actually sell your entire note at a discount to a note investor. That’s right, there are people and companies all over the world that purchase mortgage notes (the actual payments that are due on a real estate transaction). The note you have, even though there are only two years left, would be highly attractive to an investor, because the payments are interest only and because there is a $15,000 balloon payment due in 24 months.

Now, remember, note investors are out to make money, so they won’t offer you full price. They will either buy your remaining payments, probably for a discount of 10% to 20%, or they might purchase just the balloon payment, at the same discount, leaving you the remaining payments, or they might buy both the payments and the balloon.

So, assume you need $11,000. If you could get an investor to purchase your remaining payments and your $15,000 balloon for $12,500, I would think you’d be extremely satisfied. Remember, you’ve already made nearly $5,000 on your loan, so you’d wind up making nearly $17,000, and you don’t have to worry about collecting the payments any longer. Plus, you will get the “hot” cash that you require immediately. As you can see, financing part of the sale of a piece of property is an extremely solid investment.

These examples are just a few of the many ways to own mortgages, not property, and get rich without the headache of being a landlord. If investing in real estate notes is something you would like to try, you might want to consider starting small, like with a mobile home note. These can be very inexpensive to buy but are extremely profitable.

Mark Barnes is the author of the new novel, The League, the first work of fiction, based on fantasy football. He is also an investment real estate and home loan finance expert. Learn more about his suspense thriller at http://www.sportsnovels.com Get his free mortgage finance course at http://www.winningthemortgagegame.com