Commercial Real Estate Industry Is the Condo Craze Over, or Just Gaining Steam

Writen by Mike Myatt

Over the last two years there has been so much condo activity that many commercial real estate lenders are starting to express concern over the future stability of condo markets. Some lenders have recently found themselves over allocated in condominiums as a result of the recent activity and have therefore become wary of all but the best opportunities.

While the best opportunities (typically in Florida, Southern California and select destination markets) are still attractive, developers in smaller markets are finding condos much more difficult to finance in recent months.

The reality is that many of the lenders expressing concern over the current state of affairs in the condo market are the lenders that have been the least active and have less knowledge about the asset class. Lenders familiar with the condo market are not as concerned about the opinions of their peers, but rather with the fundamentals of the projects and sponsors they underwrite.

Projects that demonstrate that they underwrite according to the following guidelines should be able to find financing even with the caution currently being expressed by some in the lending community:

1. Sponsor Suitability: Sponsors that have a successful trackrecord of developing other condo projects will be looked upon more favorably than those who are building their first project. Having net worth and liquidity in reasonable proportion to the project size always helps as well.
2. Capital Structure: Projects that have a sufficient sponsor equity contribution will receive more interest than those projects looking to move aggressively up the leverage curve.
3. Entitlements: Projects that are fully entitled and permit ready will attract more interest than early stage projects.
4. Market Feasability: How many units are you building vs. how many competitive units are currently available for sale. How many competitive units are coming online during the time period that your project is being built and how many units does the market absorp each year? What are your per square foot sales prices, how do they compare to the market, and is your location, construction quality and ammenity package in line with that of comparably priced projects?
5. Marketing: Who is going to sell your units and do they have a strong track record of selling condos within the market you are building in?
6. Presales: What type of presales have you been able to generate? The higher the percentage of presales, the more are lender interest you will attract.

The bottom line is that good projects from good sponsors will always receive interest from the capital markets.

Mike Myatt is Executive Managing Director of Pacific Security Capital, a leading commercial real estate investment banking firm providing commercial real estate loans, structured finance, investment sales and advisory services. Contact Pacific Security Capital at 1 800 844 6085 or by visiting the company website at http://www.PacificSecurityCapital.com

Real Estate Investing: Family Feud with an Auction Deadline Adventures in Probate/ Estate Purchase

Writen by Lou Castillo

One of our investor students told us of an interesting probate deal or “adventure” they’re working on now and while it’s a good story, it also illustrates lots of the ins and out of probate or estate issues and purchases.

The Seller (we’ll call him Scott) co owned this house with his mom, and he co signed on the loan with mom. Mom has been deceased for 3 years now.

Scott says his sister lives there and is not making the payments, so the mortgage is behind 6 months in payments, and he’s ready to sell the house. He said Mom left no will for her estate, but there are 6 other siblings. If that’s not enough of an investing adventure for you yetScott then tells us that the bank is threatening foreclosure.

They’re not just threatening.we discover that the house is scheduled to go to the courthouse steps in 3 weeks. Why would anyone even try to purchase a mess like this with a short timeframe? Well, Scott owes $33,000 + $5000 in back payments on a cosmetic, light fix up $10k rehab house that’s worth about $140,000 when it’s all fixed up. So let’s do a little math to see if there’s just a wee bit of profit in it.

ARV $140k minus Rehab $10k minus BuySellHold $21k minus Profit $25k equals MAO $84k

So the max we could afford to offer on this house is $84k, and he has to have $38k to cover the mortgage and the back payments, say another $35k so that each Scott and every other sibling/heir gets $5k profit too. That’s a total of $73k, still leaving $11k EXTRA profit for the investor!! There IS big money to be made if you understand issues like these!

Now, how do we work through the estate stuff. Well first we (or Scott) would have to negotiate this price with all the siblings to reach agreement on their share. Next they’d all have to verify that “mom didn’t leave a will”. If so, Scott could petition the probate court to appoint him as Administrator of the estate and he’d have to run a notification of the estate ad, and get all the siblings to sign document agreeing to his being made Administrator. Now Scott could sign the Purchase Contract as “Scott, Administrator of the Estate of Momma”.

If the siblings said “no, Mom DID have a will”.then we’d spank Scott for fibbing, and see who was appointed as Executor of the estate in her will. That person would then have the court probate the will, and run an ad. Then the Executor would have to sign the Purchase contract as “[Name], Executor of the Estate of Momma”, and sell the house and distribute the profit to the sibling/heirs as described in mom’s will.

In the meantime, don’t forget the upcoming foreclosure auction either. It’s a race between the probating and the foreclosure to see who will hit the ‘finish line’ first. So the investor (she can say she’s a friend of Scott, just helping out) will need to talk to the lender or their foreclosing attorney, in order to stall the auction.

She’ll need to get a ’statement of account’ to find out what the loan balance is, and also what the back payments, penalties and attorney fees add up to. These additional fees could be paid by the investor as preparation for a subject to purchase. The risk is that if there is no will AND the sibling/heirs couldn’t reach a quick agreement on price, she’d have to keep making monthly payments to the lender to prevent foreclosure but she wouldn’t yet own it until (hopefully) the siblings reach agreement and appoint Scott as Administrator.

I can hear you saying “but the investor could try for a short sale purchase direct from the lender, and not worry about all these siblings and probate issues”.problem is she can’t get all the borrowers (momma’s deceased) to sign all the short sale paperwork, and she doesn’t yet have the property successfully probated to have a new legal Adminstrator/Executor that could sign either.

So no one can yet legally sell, nor sign short sale paperwork until either estate is probated or the lender forecloses and takes back ownership of the property.the clock is tickingwe shall see.

Best of success & abundance,

Lou Castillo

Now, Easily find all the real estate funding you’ll ever need! This complete system will show you how to acquire unlimited real estate funding, even without using banks, hard money or your own credit! Learn more in this FREE Report!!

Real Estate Financing

The Pros And Cons To Buying Foreclosed Properties

Writen by Tim Lee

Auction buying of foreclosed properties is the most profitable and common way to make a fortune in the real estate business. If you do not know how to buy a foreclosed property, it could turn out to be the easiest ways to lose a fortune. Most disasters occur due to over bidding on the properties without properly assessing the real market value and fix up costs of the property under the hammer. Research can make or break the fortune one could make on a foreclosed property.

Auctions of foreclosed properties are held at public auctions that are conducted under the supervision of the county or state court where the property is situated. This works towards the advantage of the buyer since the transfer of title is immediately executed upon winning the bid. In most cases the winning bidder is the lender who has requested foreclosure of the property in the first place.

The Advantages

The main advantage of buying a foreclosed property through auctions is the profitability, the difference between the highly discounted price and the estimated value you can sell it. Normal foreclosure property auctions have a six week notice enabling the interested buyers to inspect the property and assess its total cost including fix ups and liens and other issues and research the market price at which it can be disposed of. It is always important to remember that bidding at a foreclosed property auction need not be competitive but based on your own assessment.

The Disadvantages

The main disadvantage in buying a foreclosed property from a court auction is that it required a lot of capital investment. The payment period is very short and one should be read even before bidding to successfully buy a foreclosed property. Another major disadvantage would be the transfer of title that involves a great risk. If your research is not correct or incomplete it could lead to major losses in the process of buying and selling foreclosed property. Higher the risk, higher the gain, therefore one should be doubly careful and do significant research before bidding on an interesting property.

Buying a foreclosed property is a science in itself and involves a lot of learning. Financially smart businesspersons have been known to have burnt their fingers buying and selling foreclosed properties. If one is careful, a fortune can be made. But, if one a little careless, they could be bankrupt in a matter of weeks.

For listings of foreclosed properties, please visit http://www.real estate foreclosed home.info/

HUD Homes

Writen by Carlos Sagastume

The most severe or unfavorable conditions are pretty clear: the homes are vacant and usually have no utilities turned on. All sales are “as is” although yopu can get a home inspection and withdraw from the contract (owner occupants only).

All sales are “as is” although yopu can get a home inspection and withdraw from the contract (owner occupants only).

However, there are great opportunities for getting a bargain or below market property. Building “sweat equity” is more likely. The main advantage to this is that you could resell the property in a shorter period of time and still expect to make a profit on the transaction.

Depending on property values in your area, it could be a great deal.

There are many different loan programs available to help you get the property inspected and repaired. You should be looking for one loan and one settlement for this purpose. There are FHA 203k loan programs as well as some Fannie Mae programs. A good real estate agent can refer you to lenders who have experience with these programs.

If you are not afraid to make some of the repairs. Get a professional inspection, work with an experienced real estate agent and lender. We are very experienced in this area and believe strongly that some of the best homeownership opportunities exist in HUD and VA foreclosures.

A good real estate agent can help you determine what is affordable for you in your area. I’ll be happy to help you or refer you to someone in your area.

If done properly, you could build thousands of dollars in equity in a very short period of time.

There are Hud Homes in all price ranges and all markets. Check out our website for FREE access to the HUD and VA sites as well as other foreclosure sites.

Carlos Sagastume a real estate investor
http://baltimorehudhomes.com

Making it affordable: Nine tips for first time home buyers

Writen by Charles Warnock

It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. As a result, many first time home buyers, afraid of missing out, will rush into buying decisions and achieve less than spectacular results. As a first time buyer, your biggest challenge is to balance livability and profitability in a way that makes sense for you and your family. Remember, you are buying a home first and an investment second. Of course, there’s no foolproof formula for buyer success, but there are steps you can take to stack the odds in your favor:

Tip 1: Don’t bet on market timing

If you’re waiting for prices to drop in places like Southern California, Washington D.C. or Miami, you may be waiting a very long time. In regions that are built out with limited room to expand, it’s not realistic to assume property values will fall dramatically. Of course, prices in the nation’s super heated residential markets (much of California, Nassau Suffolk Counties in New York, South Florida) should cool down at some point, but there’s no guarantee that higher interest rates won’t eat up any savings from a price correction. If your personal circumstances say it’s time to buy, high prices alone shouldn’t keep you on the sidelines. Current interest rates are still historically low, so you may consider locking in a mortgage before rates head north. Even in booming markets, there are good deals for those willing to devote some time and energy to finding them.

Tip 2: Leverage free and low cost resources

There’s an abundance of free and low cost resources for homebuyers on the Web. A Web search can turn up helpful articles, buyer guides, online tools and purchase/ refinance calculators. Keep an eye out for helpful tools like step by step guides and checklists to help organize your search. Some Web sites now offer online tools to help you estimate home prices and search for undervalued properties. Many offers on the Web for free property valuations actually are come ons from real estate brokers looking for seller listings, so check first to see what strings are attached.

Tip 3: Check out the new models

Real estate’s old guard seems to be under assault at every turn today as traditional brokers battle competition from discount and Web based brokers. Today, buyers have more options than ever before. You can use a full service broker, discount broker or buy without a broker. To make buying more affordable, consider the homebuyer rebate programs that are becoming more popular. Rebates can help offset closing costs, which are a real obstacle for many first time buyers. Be aware that some states currently ban real estate rebates all together, and others limit rebates to credits applied to closing costs. Rebate fans around the nation are keeping a close eye on Kentucky, as the Justice Department recently sued the Kentucky Real Estate Commission for violating antitrust laws. Kentucky is one of 15 states that ban or limit real estate rebates.

Tip 4: Lock in a realistic budget

To save time and trouble, first time buyers should have a realistic budget in mind before they shop for homes. One way to determine how much house you can afford is to get “pre approved” by a lender. Pre approval means you know exactly how much of a loan you’ll qualify for, so you can limit your search to homes in the right price range. Pre approval also boosts your credibility and negotiation position with sellers. Most lenders will offer pre approval as a no obligation free service, in hopes of winning your business.

Tip 5: Buying personal decision, business transaction

The Department of Housing and Urban Development (HUD) advises home buyers to create a wish list to help focus priorities. That way, you’ll remember that a spectacular foyer is nice to have, but safety and services are essential. Having clear goals will help keep you from getting carried away with emotional factors. Sellers who love their homes tend to ask too much, and buyers who fall in love can end up overpaying. With a little research, you can get can get an objective estimate of property value to make sure the seller has set a fair asking price. There are tools and resources on the Web to help you better understand home valuations.

Tip 6: Don’t let closing costs surprise you

Once you understand the buying process, you should understand and budget for transaction costs. In addition to your down payment, buyers pay most of the closing costs when purchasing a home, including things like inspection fees, title insurance, taxes and more. Closing fees can add up to 5 7 percent of purchase price, and must be paid before you get the keys. Your lender can provide what’s called a “good faith” estimate of your closing costs. Most closing costs are not negotiable but some are. When you’re comparing lenders, don’t be shyask which fees are negotiable, then ask if any discounts are available. Finally, be cautious about “no cost” closing promotions because the lender may be simply passing on the costs in the form of a higher interest rate.

Tip 7: Build a support team

Buying a home is a big investment and a big decision, but you don’t have to go it alone. Remember, at each step of the way, there are people and resources to help you. Use the Internet and ask friends for referrals. Don’t be afraid to pick up the phone and call real estate professionals, mortgage providers, title companies and insurers to ask questions. These professionals should be good resources to help you learn more about home buying, because they want to earn your business. If they are not helpful, then you have also learned something importantthat they don’t deserve your business.

Tip 8: Clean up your credit

Low credit ratings mean that buyers won’t qualify for the best available interest rates and fees, which could mean considerable extra expense each month for the life of the loan. Most financial institutions today offer risk based lending - lower credit risk for lenders means better mortgage deals for customers. Credit reports frequently contain inaccurate information, which can hurt a buyer’s purchasing power. First time buyers should check their credit scores and fix any problems before applying for financing.

Tip 9: Begin with the end in mind

Author Stephen Covey’s advice for effective living also applies to effective home buying. Resale may not your primary consideration, but it’s an important factor. Can you buy in an up and coming neighborhood or region? How is the “commutability” from your new home to local employers? How good are the local schools? A few queries to your favorite search engine will turn up free or inexpensive school rating services. Also be on the lookout for outdated features when you buy. If the those small closets and harvest gold appliances seem out of step now, you can bet that they won’t look any better to prospective buyers in a few years.

Charles Warnock is Marketing Communications Manager at Homekeys, a South Florida based provider of real estate technology and services. He writes often on real estate, finance, interactive marketing and business development. For more information, visit http://www.homekeys.net

Selling Your Home: Should You Use a Realtor or FSBO?

Writen by Vicki Walker

When it comes time to sell your home, should you try to sell it on your own, or should you list it with a licensed Realtor? Consider the following factors to help you decide:

EXPOSURE

Realtors, or real estate agents, are part of an office of agents, and each of them knows of buyers that are currently in the market for a home. Their buyers are pre qualified, that is, they have already seen a lender and have qualified for a loan so the buyer knows exactly how much they can afford, and the Realtor does too. In many areas, a Realtor won’t even show homes to a prospective buyer until they pre qualify. The process saves a lot of wasted time on everybody’s part, and insures that buyers focus on homes they can afford.

In the FSBO world, you put up a “For Sale” sign in your front yard, and have to deal with everyone that will be calling you to talk about your house, and want to walk through it, even though they don’t have the resources to actually buy it. In the end, they are just wasting your time. Time is valuable.

Realtors also have contact with many people from out of town who are relocating to your area. Every Realtor in town gets contacted frequently through their website, by people that are looking for a home by long distance. They are getting transferred by their company, or moving to be near other family members. They may be coming to town soon to look at available homes for a few days. The Realtor lines up a number of homes for them to tour that fit their criteria. One of them could be yours. But, if you FSBO, that potential buyer won’t know your house is on the market, and won’t see it when they get to town, unless they happen to drive by it. They have a short time in town, and their Realtor has scheduled them to tour a number of homes in town that match the buyers needs. Will your FSBO be one of them?

EXPERIENCE

A real estate agent will be able to assist in setting the right price to list your home, according to the current market conditions. The agent can provide objective advice on your homes value based on current market conditions.

A real estate agent is a trained professional who will spend the necessary amount of time it may take to get your home SOLD.

The agent understands and will take care of all the necessary paperwork to complete the buying process. The agent will also act as a liaison between you and the inspectors, the buyer’s agent, escrow companies, and between attorneys, if they are involved.

Most buyers prefer to deal with a real estate agent because the agent will give them the unbiased professional opinion on a house, and how it stacks up against other houses on the market.

Agents understand all the different types of loans and financing options. They can provide information to buyers about local lending institutions to fit their needs.

ADVERTISING

Realtors have many ways to advertise your home, not just a newspaper ad and a “For Sale” sign in the yard. They also utilize the following ways to advertise a home:

The Multiple Listing Service
Open Houses
Web sites like Realtor.com and Yahoo Real Estate
Direct mail
Newspaper inserts
Regional Real Estate Magazines
Cable TV
Word of mouth through Realtor “Caravans” where 30 or more Realtors will tour your home and then match it to their prospective buyers.
“Virtual Tours” of homes for sale on the Realtors website. To see an example of a virtual tour click HERE, then click on “Virtual Tour”.

How much of this marketing muscle will you be able to flex if you FSBO?

SHOWING YOUR HOME

Agents have expertise to help you get your home in top shape before your prospective buyers arrive. They can help you “stage” your home to look more like a model home that would appeal to a larger group of buyers. They know how to emphasize and focus on your homes good points.

If you FSBO you will be learning the process as you go, a costly education when you are trying to sell your own home, your biggest investment.

SUMMARY

Selling a home takes a lot of time, knowledge, effort, and paperwork. You can do it yourself, or hire someone that has done it dozens, if not hundreds of times. This is your biggest single investment. Do you really want to go through “on the job training” while you sell it. That could be a very time consuming and expensive education.

Take some of the work, frustration and fear out of the process, and hire a professional!

Vicki Walker is a Realtor serving clients in Davis and Woodland, California. You can find out more by visiting her websites Davis Real Estate and Homes and Woodland California Real Estate

Housing Down Payment Assistance - HUD

Writen by Sergio Haros

As home prices continue to appreciate throughout the nation, down payments become harder to make. Housing down payment from HUD may be the answer.

One of the biggest financial hurdles to the American Dream of owning a home is the down payment. The magic number with down payments is twenty percent of the value of the home. If you can put down this amount, you avoid expenses such as private mortgage insurance and get a head start on building equity in the property. It can be hard, however, to come up with twenty percent on a home selling for $300,000, to wit, you need $60,000!

Homes can then be purchased through HUD and financed through FHA approved low interest loans. In addition, HUD offers other services including housing down payment assistance. Although HUD does not offer these directly to the public, it has DAPs in place. A DAP is Downpayment Assistance through Secondary Finance Providers. These providers are backed by HUD and offer no to low interest loans that be used for down payment assistance when it is needed. Instead of financing your home purchase, they finance the down payment required for the purchase.

As you might imagine, financing you down payment in addition to your overall real estate purchase raises some questions. First, should you buying the property in question if you have to pursue both financing options? Owning a home is a great financial move, but you might be biting off more than you can chew by going in this direction. Second, perhaps you should choose a home with a lower price? This double finance situation means you are going to be paying a lot of interest to get into that home. Ultimately, you might regret doing so when you realize you will never see it again.

Housing down payment assistance through HUD can be incredibly useful. In fact, all of the services offered through HUD can greatly assist any potential homebuyers. They offer great, low cost homes and offer assistance to homeowners who are struggling to make the payments on their own home. This service should be taken advantage of when necessary.

Sergio Haros is with Great Western Mortgage San Diego home loans provided by San Diego Mortgage Brokers.

Buying Property in Messinia, Greece

Writen by Claire May

Living the Dream

If you are planning to purchase a property in Greece or even just thinking about it you will need a guide to help you though the potential minefield. Whether you dream of a beach villa, village house or an apartment in the town, it is important to avoid the pitfalls of buying a property in Greece in order to make your dreams come true.

The Dream Verses Reality

In your favourite daydream you have decided to leave your present home behind you and settle in another country. You pack your belongings and leave your country behind. You can imagine the little table, chair and parasol on your terrace overlooking the beach. You are watching the sun set peacefully into to azure sea, while drinking a glass of local red wine and eating olives hand picked from your own trees. You are relaxing away from the stresses and strains of your current life and enjoying a life that you so rightly deserve.

Well, we all have fantasies but, this is the real world and things are simply not always that easy. Are you planning to book a cheap package holiday for a week or two, spend a couple of days looking around, and then buy the perfect little house on the spot? Or have you really thought about what’s involved in purchasing a property in Greece? Have you done your homework, research and planning? Do you know where you want to live when you reach your dream destination? A little forward planning will help you achieve your goal of living the dream. It’s much better than leaving things to chance.

What do I really want from a property in Greece?

The first question you should ask yourself is exactly why you wish to purchase property in Greece. For example, are you looking for a retirement or holiday home? Do you want a summer, winter or permanent home? Are you seeking a sound investment or do you wish to work or start a business? Probably you will find that there are a number of reasons you wish to buy a property in Greece. If this is the case there are many more factor to take into consideration then just buying a holiday home. Take some time to decide what kind of property you would like to purchase, and then discuss your ideas with your partner and family. If you are at all unsure of what or where to buy, the best decision is usually to rent for a while first.

When buying a property you need to consider where you would like to live. Resorts are lively in the summer, but may be crowded with tourists. However, in the winter they may be completely closed, with nothing in the way of facilities or shops. In the mountains or villages a few kilometres in land you will probably be a part of a friendly village community, but if the village is remote no one may speak your language, so you will have to learn theirs quickly. Another option is to excel at mime. You can make many friends among the villagers this way and have great fun too.

Financial Considerations

One of the most important aspects of buying a property in Greece and living there is finance, which includes everything from transferring and changing money to mortgages and taxes. If you are investing in property or a business it is important to consider the exchange rate. Take a realistic look. It is easy to imagine that you have more money to spend on your dream property than you actually have. The cost of purchasing a house and costs of repairs can spiral dramatically without you being prepared for it. If you need to borrow money to fund your dream property, be careful where you borrow the money from. Many mortgage companies will not lend money for property overseas. It may seem trivial to mention, but always remember that if you borrow money to buy property, or to rebuild it, you have to pay the money back! This statement is one that should be at the forefront of your mind when you are making your plans. It’s advisable to have your finance in place before your inspection visit. If you see your dream home you will be able to purchase it without any delays. This way you will not miss out.

Do not count on holiday lettings for your property to tourists during the months you are not there. In the last two years there has been a decline in the tourism in most parts of Greece, and income from letting property has declined with it. To let out rooms legally, you must have a license from the Greek Tourism Board. You must also fulfil fire and safety regulations, and you must pay tax on this income. Authorities are having a clamp down on illegal lets, and fines are enormous!

If you are planning to move permanently to Greece, unless you have enough private income for you to live well on, you must consider employment in the place you are going to live. You must ensure that this will be possible before you buy a house. What kind of job can you really expect to do? What are your qualifications and experience? Are they recognised? Do you speak fluent Greek? Unless your Greek is fluent you wont be completing on equal terms with the local workforce (you wont anyway, but that a different issue!). Most Greeks aren’t interested in employing people who do not have a good knowledge of the Greek language unless it deals exclusively with foreigners. Are there any jobs in your profession or trade in the area that you plan to live? Answer to these questions and others can be quite disheartening. However, it is better to ask them before moving to Greece, rather than afterwards.

The Greek equivalent of the English Job Centre is the OAED which has a special department for Europeans seeking work, although you should expect it to be easy to find a job. Unemployment rates in mainland Greece is generally high. It is higher still on the islands. Some islanders can only find work during the summer season, when tourists visit. This means they either have to save enough money when they are working to live on during the winter, or learn to survive on unemployment benefit in the winter months. Unemployment benefit is only paid if they have enough national insurance stamps credited to them over eighteen months. Working one summer season will not earn you enough to be paid benefits. If you are self employed in Greece you are not entitled to benefits at all.

Looking For Your Dream Property

After you have answered all these question and more your will be ready to start looking for a property to suit you and your family. Now do your research. The internet is a helpful tool. Listed below are links to relevant articles and information about property and the prefecture of Messinia which will help with your research.

Take notes about the kind of properties that are available and their location. Also note down any that are just below your price range (just below, because you will need some money to pay for taxes, legal fees, and hidden costs of buying property). Discuss the properties that you have found with your family and friends. Find out about the area to see if it suits your requirements. Study maps and guide book descriptions of each location. When you have established what your requirements are contact the real estate sites you have been looking at. Find out if the online property list is up to date, quite often agents only advertise a small selection of the properties that they have available. Let the agents know your full requirement (be as detailed as possible) and leave your up to date contact details with them. Ask the agents to let you know when any suitable property comes up. This will make it easier for them to narrow down the search so you do not spend months looking at unsuitable properties.

If you intend booking a holiday in order to view properties, it is important to let the real estate agent know you are going to be arriving at least a couple of weeks in advance. Tell the agent where you will be staying. Take a mobile phone with you that works overseas, so they can contact you if they need to. The agents will be able to arrange viewing of properties for you while you are in the country, and hopefully, will be able to find several properties in each area you are interested in.

Be open minded, it may be worth considering purchasing a plot of land, rather than a house that already exists. Design and build properties are easy to find and are a very popular choice. Check if the plot has planning permission. It is often automatic if the land has road frontage, with all services (water, etc) nearby. If the land is within the town planning area it should also be buildable, but always check, and get it in writing. Prefabricated buildings are available in Greece now, they can be built by the manufacturers, or by yourself. If you plan to build any property yourself you it is important to remember that you have to build to Greek and European building and safety regulations. These are very different from UK regulations. All buildings must be built to withstand earthquakes, for example!

When you have found the property you would like to buy, it is advisable to get a survey done. This is a step that is often missed out in Greece. Some areas are prone to flooding, earth tremor damage, or sink holes (A large hole that suddenly appears in the earth when the limestone beneath is eroded away by water). Save yourself a lot of trouble in the future by paying for a good survey. When you have found a good lawyer (who speaks your language, as well as Greek) and a good accountant (to sort out a tax number for you, and some financial details), you are ready to make an offer.

It is normal to pay a deposit of 10 20 % of the agreed purchase price. This seals the contact between the seller and buyer. If the seller pulls out (which is unlikely) he must return the money plus the same amount again. If the buyer pulls out the deposit is forfeit. However, if previously known problems are revealed the deposit will automatically be return. Property purchase is generally completed in a short period. It can take as little as 48 hour to 2 weeks. However, if the seller has not collected all the necessary documents for the transaction, it can take up to 3 months. You must not pay the full amount until all the documents are in place and your lawyer has made it all legal!!!

Good Luck with the purchase of your dream property. Enjoy your little piece of Paradise, you’ve earned it.

Messinia Property & Area Information Articles

http://Blog.r and c pms.biz

About Our Company

R & C Property Management Services offer a full range of property services including: real estate, property management, holiday rental accommodation and advertising, holiday home care services for you and your holiday guests. We can assist with building and designing new property, building maintenance and renovations. We can help you find a property and have a selection of houses and investment property located in the Messini, Kalamata, Methoni, Finikounda, Pylos, and surrounding areas of Messinia, Greece. Also we have established associations with other local companies, professionals and tradesmen. http://r and c pms.biz/property.html

Claire May is the owner of R & C Property Management Services which offers full property management and real estate services including; building maintenance and renovations. We can care for your holiday home and for your holiday guests. Or simply find you a property to rent for your holiday. For more details about our services look at our website. http://r and c pms.biz.html

Taming Alligators Real Estate Investment Strategy

Writen by Richard St. Rose

You might ask, “What does a real estate investment newsletter have to do with either of two crocodilians having broad heads not tapering to the snout and a special pocket in the upper jaw for reception of the enlarged lower fourth tooth?” Wellactually nothing. The alligators that I am referring to here are not the ones with the enlarged lower fourth tooth, but ones with an equally dangerous bite. The term “alligator” in the sense that that I mean refers to a real estate investment with a negative cash flow (where the expenses and debt service are greater than the income the property produces).

Most people in the crowd would suggest that in order for a property to be a viable investment it should always have a positive cash flow, but this is not necessarily true. Alligators (in the real estate investment sense) are not bad creatures as long as you have the alligator food (cash) to feed them and they don’t eat more than they are worth. In some cases, small alligators can even grow up to be very large cash cows with positive cash flows.

Several strategies exist that are effective in taming negative cash flows (some of these should not be attempted without the assistance of a skilled professional). While I will not be able to discuss them all thoroughly in this article (please give me a call or send me an e mail if you would like more information), I can highlight a couple and describe how they work.

One simple strategy is to make sure that your alligator will, at some point in the future, actually become a cash cow (go from a negative to a positive cash flow). With this strategy, you will still need to make assumptions and work out the numbers so that you know exactly when this will occur and set aside enough alligator food (cash) to make it through the dry spell.

Another, more complex strategy is to slay (sell) other alligators (or, in some rare cases, cash cows) in your portfolio and use the remains (proceeds) to feed your alligator. This strategy is effective when you have strong evidence that the alligator you are taming will be far more valuable to you in the future than the opportunity cost of keeping the other creatures that you used for alligator food around.

Whichever strategy you choose to tame your own alligator, proceed with caution for these are very dangerous creatures; they can quickly tear through a portfolio before you know it. If properly tamed, however, some can be very valuable to you in the long run.

Richard St. Rose is the Founder, President, and Principle Broker of Epifany Properties. Throughout his successful 10 year real estate career, he has been licensed in 5 states. He personally owns and manages his multi million dollar real estate portfolio. View his long list of accomplishments and qualifications at http://www.epifanyproperties.com/Rich.html