The Advantages of Lease Options in Real Estate Investing

Writen by Lesley Wilson

How can you be a landlord without all the trouble? Maybe instead of a rental house you should have a lease option house.

Landlords who own single family homes may have much more to do than they bargained for. Repairs and maintenance can really add up, and suck up a lot of your profits. There are alternatives. Have you tried lease options? It’s also a great way to begin Real Estate investing.

Doesn’t it seem like you hear about lease options everywhere? You read about them in lots of real estate web sites, other ezines. What exactly is this, and is this just another get rich quick scheme?

Nope, not a get rich quick scheme, but it may help you get rich. You hear about it so much because it is a great way to work the rental business.

A lease option house. How exactly does that work? First a Lease agreement is made with the tenant, and then an option agreement gives the renter/buyer the right to purchase the property for a set price by a predetermined date. So they are leasing, and paying for an option to purchase the home later.

Let’s look at some of the advantages:

1. Your renter is planning on buying the property, so they usually maintain the property better than your average renter.

2. Your lease has the renter taking care of most maintenance. You only take care of big stuff, like roofs and furnaces. (you do have to check state laws on this one)

3. You get a non refundable option fee up front, possibly $3,000 5,000 or more depending on your area.

4. The majority of renters never take the option and buy the home, so when their time is up, you can continue to rent to them, if they have been good tenants, you could extend their option, for a fee, or get a new renter and another up front option fee.

Doesn’t sound like there are too many downsides to this type of plan, does it?

This works great if you want to hold property long term to build wealth. You can have occasional options fees whenever tenants move, monthly cash flow, and your renters continue to pay off your property with minimal costs.

This is all fairly simple, but there are some secrets that it helps to know. Make sure you get educated on the process, and then lease options will help catapult your wealth. A lease option house is a great way to begin investing. Lease options can be a great part of a wealth plan. You have all the income, and also all the tax benefits of rental property.

Note: There are some states that are working on legislation to limit lease options. This is because of the few unscrupulous investors that are cheating people. They give us all a bad name. As far as I know, at this writing, Texas is the only state where it is not legal, but some adaptations to the program can be made to make it legal. Consult your attorney.

Lesley Wilson is a Real Estate investor, a licensed Real Estate agent, and has also worked in the Title Insurance industry for many years. She has been investing, and helping others invest for over 30 years, and has been a licensed agent for over 15 years. She is dedicated to helping others find financial freedom through Real Estate investing, and providing them with the Real Estate Resources they need to be successful.

http://www.RealEstateResouceCompany.com.

Big Discounts With Property Investment Clubs?

Writen by Don Suter

A stagnant stock market, low interest rates and booming property prices over recent years have lead to more and more personal investors deciding to join property investment clubs.

Property investment clubs are organisations that either buy property in volume and resell it to their members at discount prices or negotiate the purchase of large numbers of properties from developers, again ensuring discounted prices. Clients can often expect to make savings of up to 25% of the property’s market value.

Additional services from property investment clubs vary, with some offering financial and legal assistance, along with local property market research. Volume purchases can enable discounts on mortgages, solicitors, letting and estate agents fees.

For the personal investor with limited property investment experience, these organisations offer an easier entry into the market and the opportunity to generate significant equity from the original savings. For example a property valued at

India Property Market Outlook Today

Writen by Hetal Shah

In India, the reforms programme has been going on for past one and a half decade and in the process it has led to a phenomenal growth in several sectors like IT, ITES, Telecom, etc.

Facts speak for themselves. The growth in the India property market is all round with hardly any element of the value chain being out of this “being on fire” trend. The real estate sector is perhaps the most recent one to join the coveted list of sectors which have taken off in a major way and all slated to hit the stratosphere in the years ahead. It indeed has the capacity to display “sky is the limit” syndrome and this is what it has begun to display in India.

Be it housing construction, malls, state of the art office complexes, mid sized retail stores the rapid fire development in the Indian real estate sector can be seen all around especially in locations which have come up as commercial hubs. New concepts in construction like specialty malls or weekend property have barged in much sooner than expected and they are adding new dynamism to the Indian property sector on a consistent basis. Some of the key reasons which are driving the growth of the Indian real estate sector could be summed up as:

* The emergence of several satellite towns around prominent metropolitan cities as commercial hubs (like IT, ITES), * Increasing spending power of Indian consumers, * Supportive policies of the central government and several state governments.

The icing on the cake is: the real estate development in India is now no longer metro centric rather it is moving to Tier 1 and Tier 2 cities and within a time span of next 5 10 years, the entire landscape of urban and semi urban locations in India is slated to change in a way that will be unbelievable. Government’s recent approval of development of over 100 Special Economic Zones (SEZs) is expected to provide another shot in the arm of the real estate development in the country.

All in all, the real estate bandwagon which has just picked up momentum in India is all slated to shift to top gears soon. A proof of this gathering momentum theory is the substantial spurt in the property price in India in last couple of years in several locations like Pune, Kolkata, Hyderabad, Mumbai, etc. where the valuation has just doubled. And present frenzied real estate demand in India confirms that these properties will continue to remain a gold mine for quite sometime.

For a full review on the Indian property market, visit: Think Investments Original article source: India property market

Think Investments is a full resource on property investment in India. Think Investments offers listings for properties in India, legal guides, home loans in India and more.

How Do I Sell An Expensive House?

Writen by Raynor James

You’ve lived in your house for years and taken pride in with numerous improvements. Now it is overvalued and you’re wondering, “How do I sell an expensive house?”

How Do I Sell An Expensive House?

When discussing how to sell an expensive house, there are two scenarios in which the issue comes up. The first is you have a home in an expensive neighborhood, but one which you’re asking for a price comparable to similar homes around you. In such a situation, you should be able to sell your expensive house through traditional means, either as a FSBO listing or through a realtor. The home should be cleaned up and listed with a multiple listing service. Open houses should be undertaken as well as online advertising with photographs. In this current market, you should be able to move the home fairly quickly.

The second expensive house scenario is a bit more complicated. In this scenario, you have improved your home beyond a value supported by surrounding structures. This can often occur if you live in a home for a substantial period of time and make additions to the home such as new rooms, floors, renovated kitchens and so on. The homes in your neighborhood all appraise for roughly $300,000, but your additions should make the house worth upwards of $450,000. You have a problem because nobody is going to buy the most expensive home on the block.

What To Do?

You’re first choice is to hold onto the home and hope the neighbors get around to improving their homes. This strategy is rife with problems and should probably be avoided.

A better choice is to target market your home to a specific demographic. If you’ve added rooms to your home, you should create advertisements directed at families with multiple children matching the number of bedrooms you have. If you’ve gone nuts with improvements in the kitchens and fixtures, you should market the home as “luxury without the price.” The point is to turn your problem into a unique selling position for the house. Trust me, there is a buyer out there looking for a solution to their problem.

Appraisal Problems

If you house is over improved, every potential sale will fall through because the appraised price will make it difficult for the buyer to get a loan. The best way for dealing with this is to “carry a second” mortgage on the home. In essence, you agree to take a certain percentage of the price in payments over a certain time period. This allows the buyer to get into the house and you to get out. If you go this direction, make absolutely sure you use a lawyer to make sure everything is legal.

Trying to sell an expensive house can be a challenge. That doesn’t mean it can’t be done.

Raynor James is with the FSBO site http://www.fsboamerica.org FSBO homes for sale by owner. Visit our “sell my home” page http://www.fsboamerica.org/seller.cfm to sell your house yourself with a free 1 month listing.

A Guide To Finding the Best Nashville Mortgage Companies

Writen by Bob Hett

If you are thinking about moving to Nashville, or if you already live there but want to purchase a different home, finding the right Nashville mortgage company can be a daunting task.

Nashville is centrally located in the state of Tennessee. It is nicknamed “Music City” and is the home of The Grand Old Opry. People employed in every aspect of the country music business live and work in Nashville. The population is about 545,500, and continues to grow. The housing market is very good and the median price for a home in Nashville is $132,000. Of course, you can find houses that are cheaper and ones that are much more expensive. With its strong housing market, it is easy to find the home of your dreams and your pocketbook in Nashville.

One way to find a good mortgage lender in Nashville or anywhere else, for that matter, is by using a mortgage broker. These are companies that work with several lenders to give you the best deal. They also help with the mountains of paperwork and answer any questions you have about the home buying process.

A typical mortgage lender usually starts by helping you find out how much house you can afford. This takes into many considerations, including salary, credit history, etc. They will give you a mortgage lending quote. Many mortgage companies like to pre qualify you so that you can be looking for houses in your price range.

A good mortgage company should be able to offer you a variety of mortgage options. Non traditional mortgages are becoming more and more popular. For instance, you could be looking to purchase a home, refinance a home, be a first time buyer, looking at a second mortgage, be interested in debt consolidation, a new home construction loan, a zero down loan, or FHA and VA loans. Any good mortgage lender will be able to offer any one of these loan types. Many mortgage lenders specialize in certain types of loans; so if you know what kind of loan you want, seek out a lender who knows a lot about them.

Buying a house is a huge investment decision, so you definitely want to find the best mortgage lender. If you are planning to buy in Nashville, there are many good ways to find the best Nashville mortgage company for you. Do some online research to find out about the different companies in the area. If you know anyone in the area, ask for a referral. Word of mouth is usually very reliable. Another way is to visit with several different mortgage companies. Ask some questions, see how they act, and if they seem like they want your business. If they don’t make you feel comfortable, move on. The right mortgage company is out there.

Bob Hett makes it easy to find all the information you are looking for in mortgage rates. Get the answers that you are seeking by visiting http://www.mortgageratescenter.info

Spain Excellent Choice for British SIPP Investors

Writen by Marcel Van Dijk

Second homes in favourite holiday destinations such as Spain are likely to be top of the shopping list when the pension rules change April 6th 2006, allowing individuals to invest in residential property through Self Invested Personal Pensions (SIPPs).

Research shows that Spain’s mature market makes an excellent choice for SIPP investors, with capital growth still high and forecast to grow at 10% a year for the next five years at least. Year round sunshine and the high numbers of world class golf course developments makes 30 weeks or more annual rental a realistic goal, with potential gross yields of 10% plus. This rental income would be immediately reinvested back into the SIPP and used to pay off any mortgage.

Off plan purchases at discounted rates still offer the best opportunity to maximise profits. It is possible to buy off plan today and then assign the contract to the pension after the rule changes, as long as the completion date is after April 6th 2006.

SIPP investors will benefit from full UK income tax relief on the purchase price of the property, before going on to collect rental income tax free in the pension fund. Any profits made from the sale of the property will also be free from UK capital gains tax but may incur Spanish tax - however, there are ways to reduce this to 15% of the gain. What’s more, the pension fund will be able to borrow to invest, so buyers will be able to gain access to holiday homes that would have otherwise been out of their reach.

So, for example, if you are a 40 per cent taxpayer, this means that the government will be paying 40 per cent of the price of your house. That’s a pretty good deal. Secondly, generally the income and capital gains generated by the property will also be tax free in the UK. That, also is a pretty good deal.

Southern Spain, with its abundance of world class golf resorts, makes an excellent choice for SIPP investors who are looking to pay off a mortgage with rental income.

Marcel Van Dijk
Spanish Property and Real Estate Spain

Real Estate Short Sales : Foreclosure Investing for Pennies

Writen by Jarad Severe

Short sales are becoming more and more popular as more and more investors learn this creative technique which can create huge profits.

A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.

Foreclosures are spreading all over the country, which means there are opportunities everywhere. Lenders are being overwhelmed with properties they inherit because of bad loans. It is safe to say that most lenders will accept a short sale, however, you may come across one or two who will not discount. If the numbers work out for the lender they will do it.

It is best to do a short sale when the property is in the pre foreclosure state. Yes, you can perform a short sale when the bank owns the property, however your profits will more than likely be smaller. There are two stages within pre foreclosure. The first stage being those individuals who are behind on payments and the second stage are those who are behind on payments with a notice of default. In order for this to work properly and for you to successfully get a short sale, you must find the homeowners who are in the second stage of pre foreclosure or more than 3 payments behind on their mortgage. Once the notice of default has been recorded, banks become motivated as well, so you are more likely to get a discount. Until that time, very rarely will a bank ever discount a mortgage that soon. Why would they? The homeowners still have time to cure the loan and make up the back payments.

It does not matter what type of house or condition it’s in, all mortgages can be discounted. Because of this, short sales are one of the most effective techniques for discounting loans in real estate. Short sales create huge investment opportunities and are a must if you want to be competitive in this market.

One of the most important steps in the short sale process is getting the deed. Too many times, beginning investors will skip this vital step. Why do we want to get the deed from the homeowner(s)? Because all too often, homeowners change their minds, or want to back out of deals because they are scared, or they want to re negotiate. Without the deed, they can back out of the potential short sale even after you have spent hours working on their property. When the homeowner signs the deed over to you, now you control the property (subject to) and you can go to work by calling the bank.

There is a certain process for calling the bank when you’re doing short sales. Banks can usually tell if you’ve never done this before. When you call the bank, you never want to tell them you are an investor. This one of the biggest mistakes rookies make and sometimes will result in the lender not accepting a short sale. Therefore, when you call the lender to request the short sales packet, you want to tell them you either represent the homeowner or you are the buyer. Sometimes they may ask if you are an attorney. Again, just tell them who you are do not use “investor”. Then you’ll want to request the “short sales packet” or “workout packet”. When the packet arrives it will explain exactly what you need to make this short sales deal successful.

The lender will usually request a hardship letter, a HUD 1, and a financial statement from the homeowner. A hardship letter is telling the lender why the homeowners are not making their mortgage payments. Sometimes they will request bank statements, pay stubs, income statements, and so on. Be prepared to send them everything they ask for because if you don’t, your short sale will not be accepted. Do not waste any time! Send everything the lender asks for back ASAP. It usually takes at least 3 weeks or more to get an answer back from the lender, so you can’t afford to wait. If the auction is approaching, you can ask to extend or postpone the auction which in most cases they will, if they know it is a legitimate offer.

Next in the short sales process is the BPO. This stands for Brokers Price Opinion. This is by far one of the most important steps in the whole process. Basically a real estate agent will come out and give their opinion on what the house is worth. The key to short sales is the BPO. You want to try everything you can to influence the BPO to come in as low as you can. The lower the better. You can influence the BPO by creating a list of (low) comps in the area, a list of repairs, and showing up at the property to point out every little item that needs replaced. When the BPO comes in low, the banks will usually accept your offer.

Copyright 2005, Foreclosures and Flippers Inc. All Rights Reserved.

Jarad Severe is a leading authority and expert in Foreclosures. He is President and CEO of Foreclosures and Flippers Inc. Jarad can be reached by email at: info@foreclosuresandflippers.com or you can visit his website at: http://www.foreclosuresandflippers.com to receive more information on foreclosures, short sales and more.

Why Canadian Real Estate is Such Good Value

Writen by Rhiannon Williamson

Real estate agents, Canadian citizens and foreign investors interested in the Canadian property market are all in agreement as Canada becomes a more desirable place to live year on year so property investment in Canada becomes a more attractive prospect year on year.

Furthermore, because property in Canada is high quality, plentiful, incredibly affordable and easy to purchase, real estate in Canada is good value across the board.

If you need more proof, consider comparing what you can still buy for your real estate dollar in Canada to what you can currently purchase in the UK, the US, France or Spain for example.

You’ll quickly realise that the strong Canadian dollar (CAD) has not damaged the real estate market in Canada in the slightest. In fact, as the Canadian economy strengthens and more people move to the country, the demand for property will continue to rise which in turn will push up the value of any property investment.

And you simply still get more in Canada than you can elsewhere because property in Canada is less expensive overall land is less expensive, the cost of living is lower, the standard of living is high

This all adds up to the fact that non Canadian resident buyers are likely to be in an enviable position when it comes to investing in real estate, chances are they can afford a far higher quality purchase that they can ‘back home’ and they don’t have to become resident to buy in Canada if they don’t want to.

Add the fact that overcrowding is never going to be an issue in Canada as there are 30 million people sharing 38 million square miles of land, and the fact that Canada has a wealth of diverse property available in many stunning locations country wide to fuel the imagination and satisfy the desires of even the hardest to please purchaser, and you’ll quickly realise why Canada remains such an attractive prospect for so many people.

And by remaining non resident you can benefit further from the property market you don’t have to go through the rigmarole of applying for immigration acceptance, and yet you can still benefit from all Canada has to offer for up to 6 months of every year you are even free to open a Canadian bank account, buy a car or land there for example.

Alternatively, you can join the ranks of foreigners choosing to emigrate to Canada including the 3.3 million Brits who have chosen to make Canada home permanently already. Canada is actually the third most popular place to emigrate to from the UK and more and more British citizens are being attracted to this land of opportunity, space and freedom.

This means that as Canada becomes more attractive as a destination of choice, property there will be more in demand which in turn will allow real estate prices to continue to rise making any property investment a good bet!

Whether you’re considering property in Canada from a non resident, investment stand point, with a view to letting it out before cashing in your investment in X number of years, or you’re thinking of purchasing a second home in an enviable location or you’d like to go the whole hog and up sticks and emigrate to Canada, you will find the buying process a relatively easy and hassle free affair which can only add even more value.

Bureaucratically speaking the whole purchase process is often a lot less tricky than ‘back home’ especially if you come from red tape rich Europe and it takes a fraction of the time to complete the property sale process in Canada than in certain other countries where escrow periods are applied to real estate purchases.

And if you would like some cold, hard facts about past performance of the Canadian property market, an average single family home in the Vancouver area sold for CAD 13,500 in 1961, CAD 48,000 in 1974, CAD 120,000 in 1982 rising to around CAD 475,000 today.

It’s true what they say where people want to live, property values will always continue to rise…and more and more people are choosing to live in Canada making Canadian real estate good value for property investors!

Rhiannon Williamson is an experienced publisher who has produced articles for leading travel and tourism guides and financial magazines. Her specialist knowledge about both travel and finance gives her site Shelter Offshore the unique ability to literally cover every single aspect of moving & living abroad including the often less discussed offshore tax advantages that can be available when leaving our homeland. Check out her website to find out how you can escape from the rat race, relocate overseas, and profit from your move!

Financial Help to Stop Foreclosure

Writen by Mel Goodwin

When a person falls upon financial hard times often through no fault of their own and they are behind on mortgage payments, they may need some financial help to stop foreclosure on their property. Nobody wants the sheriff to deliver a foreclosure notice so there are some things you can do that will help stop the foreclosure.

Often, you can avoid foreclosure through hard work and not by sitting back and giving up. Here are some steps that could help you get financial help to stop foreclosure.

Never ignore letters or phone calls regarding your delinquent mortgage payments. Contact the lender and explain your situation, as they may be able to work with you and know that you are really trying to make things right so offer you financial help to stop foreclosure. You may not qualify for aid if you abandon your property so remain in your house.

When you work with the lender and your financial problems are temporary, the lender might be able to help with financial help to stop foreclosure. Often this is a one time loan, bringing your mortgage payments up to date.

Often a person can either extend the loan or refinance to stop foreclosure when mortgage payments are too high. The upside is that the monthly mortgage payments are smaller but the lender interest rates are higher. This could allow you to catch up on missed mortgage payments. Always be honest and upfront with the lender and they will work with you.

After examining your financial position and the reason for your nonpayment, the lender could reduce the monthly payment or suspend payments temporarily.

Nobody wants to lose his or her home or have a lender foreclose on their property. Be honest with your lender and by working with them and examining the options available as it is possible to get the financial help to stop foreclosure.

Foreclosure bailout resources including financial advice is available at http://www.stopforeclosureline.com.