Buying A Home: The Smart Way

Writen by Connie Barker

Buying a home whether old or new is one of the most important business decisions that you will make during your lifetime. The key to making this process as simple as possible is finding out how much you can afford to buy before your real estate agent gives you the grand tour. To find out how much you can afford on a house, you must start by adding up your general monthly expenses (such as food, clothing and shelter) with your other debts such as car loans and credit cards. The next step is to minus your expenses with your gross monthly income. The money that is left over will determine how much ‘house’ you can actually afford.

The next step is to do your own research. Many companies offer discounts to home buyers, especially first time buyers. If you are currently renting an apartment or a house, there are programs that will actually help you save a percentage on the down payment of your future home. Whenever you pay your monthly rent, your landlord will automatically transfer a small percentage of your rent into a home buying fund. To find out more information on special funds for renters, talk to your nearest realtor or log onto the internet.

The next order of business when buying a home is the credit issue. Your credit score will greatly affect your interest rate once you are approved for a home. Many smart home buyers save thousands of dollars by following a few money saving tips. Some people place a large down payment so that their monthly payments are lower. Many people save enough money to buy their homes free and clear. That means they go straight to the source. They may purchase or work out a deal with the current home owner whose house is on the market rather than going to the bank or mortgage company. Many home buyers invest their money in foreclosures and tax sales. Tax and foreclosure sales are perfect for those with credit issues because buyers can purchase a home regardless of income and credit.

If you have good credit and enough income to purchase a house, get pre qualified before meeting with a mortgage or realty company. You can fill out an application online or over the telephone. Some companies will have an answer within a 24 hour period. This is the smart way to shop for a new home because you know how much ‘house’ you can afford before falling head over heels on a house that you can barely afford.

To find out further books available at major retail bookstores. You can also find informative information on the Internet.

Connie Barker is the owner of several financial websites including those which deal with Buying A Home.

7 Different Ways Anyone Can Become a Real Estate Investor

Writen by Mike Makler

Being a real estate investor is not really that hard, Sometimes you do not need any money down. Other times you do not need any of your own money down. Below are 7 Methods to buy property and earn money.

1 Buy and Flip

This is a Method where you buy Real Estate at below Market Price and sell quickly and make some fast profits

2 Buy Fix and Flip

This is Similar to method 1 except you would typically hold the property a little longer so you could do some fix ups, This method is designed to yield a higher profit then Method 1.

3 Buy and Hold

You buy the property and find a renter. If you were to buy 2 Properties a year for 10 years you could have 20 Properties all earning you a positive cash flow when you retire. Even a modest positive cash flow of $500 a Month per property in Todays dollars would equal a $10,000 a month retirement income

4 Wrap Mortgages

This method works well with people who have a hard time getting a mortgage because of income or credit or both. You sell them the property on a contract. You keep the existing mortgage and stay on title. You then wrap the old mortgage with a new mortgage. Let’s say you have a 30 year mortgage at 6% for a $100,000 with a monthly payment of $599.55. You Give them a 30 Year Wrap mortgage at 8% for $125,000 with a monthly payment of $880.52. You could have provisions where if they refinance in 3 5 Years and pay of your mortgage and become sole owner.

5 Lease Option

Lease with an Option to buy is similar to a wrap mortgage but they are renting the property at an above market rent. They do have a right to buy at some fixed priced in the future. As an Example you could rent them the property in Example 4 for $900 a Month. They will be able to purchase the property in 3 years at 5% below the appraised value (from an agreed upon appraiser). They also agree to keep the house in good repair. If they make all payments in a timely fashion $100 of each months rent would go towards the purchase price.

6 Equity Share

Equity share involves and investor and a Homeowner. The Investor will put down the down payment and the homeowner will live in the house and make all the monthly mortgage payments. The investor will own 50% of the House and the homeowner will own 50% of the House. After 3 5 years you will either sell the house payoff the mortgage and return the down payment to the investor and then divide what’s left or the homeowner will refinance the house and buyout the investor. (Sometimes the investor will record a 2nd trust deed with low or no interest against the house to secure there interest)

7 Buy Low Refinance High

Another popular method is to buy low and refinance high. You buy a property for $70,000 with $5,000 down leaving You a $65,000 mortgage. You do $10,000 worth of improvements to the property and then refinance it for $110,000. The Difference between the new loan at $110,000 and the old loan at $65,000 would be $45,000 cash in your pocket. Your net cash would be $30,000 since you have placed $15,000 cash in the property already. You can now use method 3 find a renter and hold the property long term. You could also use methods 4,5 or 6 to have a positive cash flow now and lock in a profit in 3 to 5 years.

The above are just some of the many 100’s of methods successful real estate investors use to earn money. The key component in any of the above methods is finding the right financing. A loan for the buy and hold method may be very different then the loan for the buy and flip method. The wrong loan could be the difference between a nice profit and a modest profit or maybe even a loss. (You wouldn’t want a loan with a large prepay penalty in the buy and flip method) make sure you work with an experienced loan professional who can Tailor a loan to meet your needs

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

Why Now is Especially the Right Time to Invest In a Piece of Florida near Disney

Writen by Paul Burrows

Central Florida’s holiday home market has expanded at a phenomenal rate over the last 10 years. Much of this expansion is due to Disney World’s 10 million visitors per annum not to mention the region’s other world class attractions, such as Universal Studios and Sea World. There is an excellent market for both US and European holiday rentals, Over 50% of Americans do not have a passport and holiday in the US, Furthermore, the American 2nd Home Market is booming, with many American families purchasing properties either as second homes or as holiday homes.

Property prices have been soaring in the last few years. With paying at least $350,000 for a 3 bed/3 bath villa.

Many developers are incurring more costs to their original agreed purchase price and are having to make some serious increases to meet the demand

* Land Value increasing
* Building Costs up by 30%
* Impact Fee rising from 7,000 to 22 25,000 dollars Developers are passing these costs to the purchaser and increasing the Sale Price.

The investment below, I have found is a unique and easy way to get onto the Florida Investment Ladder

The Retreat in Kissimmee Florida

The Retreat will be a stunning purpose built Condominium Townhouse Complex, built on a picturesque wooded area less than 8 miles from Disney World in one of the fastest growing holiday destinations in the World.

With only a one off booking deposit of

Should one Sell Real Estate FSBO or with a Traditional Real Estate Agent?

Writen by Paul Wilken

It was with great sadness that I learned that my good friend and the little league coach for my son, Larry, was leaving the area for a new job in another state. Having just started an internet marketing service for FSBO Sellers, FSBO Volusia, I called Larry to discuss how he was going to market and sell his home.

Larry told me that he decided to list his home with a local real estate agent and was asking $519,000 for the property. Larry said he wanted to move the home quickly so that he would have it under contract prior to his transfer. I asked how he came up with his asking price. Larry explained that his real estate agent had shown him a CMA (Comparative Market Analysis), and based on past sales and the two other homes for sale in the neighborhood they had arrived at the $519,000 asking price. Larry went on to say there was a very similar home in the neighborhood with an asking price of $525,000 and his agent suggested that they set the asking price at $519,000 so that everyone who looked at the more costly home would also take a look at his home. This all seemed to make good sense to me and I asked Larry how much he expected the house to ultimately sell for. Without hesitation, Larry said he felt it would sell for an amount very close to $500,000 and that he knew the home would appraise for at least that much, if not more.

Larry, I said, this means you expect to net $470,000 if your home sells for $500,000, after you pay 6% or $30,000 to your real estate agent. Larry looked at me and wondered where I was going with this. There might be another way to market your home for a quicker sale and greater net to you as the owner. You mentioned that with an asking price of $519,000 you where competitively priced and that you expected to sell your home for close to $500,000. What would happen if you tried to sell your home on your own with a starting asking price of $499,000? You could use $3000.00 to market your home yourself, leaving $6000 for negotiating with the buyer. You sell your home for $490,000 or an additional $20,000 in your pocket. The buyer would pay less and you would net more. It is a win win situation for the buyer and the seller.

Larry looked at me with some disbelief and asked, so what is the down side to this whole scenario. There is not much down side, I explained. To receive the extra dollars in your pocket and the potentially quicker sale you will have to do a number of the things that a real estate agent normally would do. As an owner seller you will have to let the world know that your home is for sale and at a very good price. We left $3000 in the plan to use for marketing; this should include on line internet marketing, local print media advertising, and signs, both at the property and directional signs. One should conduct a few open houses, and most importantly sellers have to be available to buyers. Wow, Larry said, that does not seem too difficult for potentially $20,000. But what should I do if a real estate agent shows up with a customer? Well let’s do the math. If you offer the real estate agent a 3% commission to bring you a buyer and you sell for $490,000 you will net $475,300 or $5,300 more that your first scenario where you start at a higher asking price, accept a higher purchase price and net only $470,000. Once again it is a win win situation, in this case the seller wins, the buyer wins and the real estate agent that brought the buyer wins.

Now it was time for Larry to look at me sadly. I wish I had spoken to you before I signed a three month contract with my real estate agent, said Larry. I may have been able to sell my home quicker, for less money from the buyer, and still net more for my family by selling FSBO.

Paul Wilken
http://www.fsbovolusia.com

The Best Kept Secret For Selling Your Home Furniture

Writen by Damon N. Burgess

Driving down a familiar street, as houses are passing by, you see it For Sale. The real estate company wedged their sign into your neighbor’s front lawn. The gossip swims around the neighborhood as common remarks like “I wonder how much they are selling for?” or “I wonder why they are moving?” intrigues our curiosity. But the real question we should all be asking is “what kind of furniture do they have?”

Yes that’s correct, I said Furniture. Why you ask? Well, let’s jump to it. When selling a home, there are a lot of anxieties, preconceptions, and all sorts of things to get done. In this process people often get carried away in the actual preparation of selling their home opposed to the ultimate goal of making it appealing to the buyer. Let’s forget all the real estate company’s jargon, and break it down to 4 rough main points that come into the minds of buyers.

1. Money
2. Location
3. Appearance
4. Property

These are the 4 main things that need to get tossed around inside the mind of a buyer. All subcategories of buyer concerns like what type of school district does the area have, or taxes, that would fall into location, money, and other main categories. So not to make our buyers lemmings that walk around uttering these four mantras in zombie like fashion; all minor questions get placed into these four. Lets move on. So where is our furniture? You ask.

So now we have our buyer, ready for action, and really looking for what he, she, or they want in their dream home. Buyers will compromise these four main categories, not by leaps and bounds but enough for you to sell your home happily. The furniture connection to selling your home is a simple one Value. Having expensive furniture does not mean, you can up the price on your home, since you will most likely take it with you, and the buyer knows that. The value I am talking about is what I call “Creative Value”.

Creative Value is a fundamental attraction to selling to a consumer/buyer. Why would someone pay an enormous amount of money for a movie prop, or Babe Ruths baseball card? Created Value.

Technically you can say well it’s just a card, piece of clothing, plastic, metal, or whatever it is, just like money is made of something. No, it’s the value you can show people its worth, its imagined and is worth whatever someone will pay, right? Well, Yes. The aim to get a little more for your house is to show people the value, that atmosphere it has, whether it’s earthy, modern, homey whatever. Create the value, by welcoming buyers into the world you make for them.

Furniture is just one step in the process of selling your home; commonly overlooked it is an integral part of “Created Value” that will lure buyers into something they can imagine, and be happy with. This is going to be a place that they rest, live, and dream in, your first priority to selling your home is showing them the world you create in your home. Your imagination can be inspiring and create a value all on its own with whatever decor you decide; it just might be the type of place someone would want to call home.

Damon N. Burgess is a search engine conceptualist, writer, and an award winning designer. The founder of Verse Designs, a Long Island web design company, where his concepts come to life. Also the marketing manager of one of the largest online furniture stores on the net - One Way Furniture, he sleeps standing up.

Checklist for Fractional Resort Real Estate Success

Writen by Carl G. Berry

When resort real estate experts congregate in throngs to learn and share information about an exciting product, they are bound to come up with some guidelines. A May 2006 gathering of nearly 400 resort and real estate experts at the Ragatz Symposium in Coronado, California was held in wrapped attention as their colleagues shared “dos and don’ts” about Fractional Real Estate for developers.

Fractional Real Estate projects (including Private Residence Clubs) increased by 218% say Ragatz Associates, internationally recognized as a leading market research organization in the resort industry. Primarily, the rapid growth in this intriguing product results from the void it fills for both consumers and developers: it has a good image; it offers variety of types of products and locations; many major hospitality brands have jumped aboard; and it is increasing in market acceptance.

So, if you are a developer considering fractional real estate, what seems to be working best, you ask? Well, it is real estate after all. Logically, the first component is always location in a popular vacation resort area. Secondly, a great location within the resort is always optimal. If families can ski in/ski out, golf in/golf out, it is a bonus for all involved.

After location, buyers look for credibility in a developer. What have they done before? With whom are they associated? Do they know the area? All these elements are key to building a strong foundation with potential buyers.

Fractional Resort Real Estate is primarily residential in nature, so adjacency or association with a fine hotel and being able to draw on its services, amenities and dining opportunities boosts the value of a Fractional purchase. It also makes it easier to draw potential clients who are already favorably predisposed to the on site offerings.

Developers are urged to look at the traditional real estate offerings in the area. Are there limited and/or expensive second homes in the vicinity that makes a fractional purchase an enticing venture for a family who would prefer to have the advantages of home ownership but not the hassle of keeping up a second vacation home? Are homes in the location priced out of reach for even comfortably positioned second home buyers?

Your location must have year round appeal or at the very least two strong visitation seasons. A ski resort that offers no summertime activities or a lake that is inaccessible nine months of the year do not lend themselves to luxury fractional ownership.

If your fractional resort is the first one to hit the market, or has limited local competition, your chances for success are better, says research presented at the Ragatz Symposium. Experts also say that proximity to a large affluent visitor base, along with urban centers helps put the stamp of pre disposed success on a fractional product.

Another marketing assurance for a developer to consider is access to a data base which includes resort visitors and real estate prospects. This kind of data base takes building a relationship with local brokers and tourism centers such as chambers of commerce, local attractions (e.g., lift tickets/greens fees), as well as the utilization of various internet sources.

Add a great history of the area (legends, tales of healing waters, golf greats who frequent the course) or story telling opportunities for the future (improvements, plans for the future, activities) to the mix and you have a recipe for success.

This check list for success is not only enhanced but solidified with a use plan which is designed around the buyer. Without that important look at your owner, all your hopes and plans and dreams can come to naught.

Keep this check list in mind while planning for your future success in the Fractional Real Estate world:

 Popular resort location  Great location within the resort  Developer credibility  Fine hotel nearby  Limited availability to second homes  Year round appeal  Proximity to visitor base  Access to valuable data bases  Great history or story telling opportunities  Well designed use plan

Carl G. Berry RRP is CEO for The Star Resort Group. He has over 30 years of resort and urban development experience. Founded in 1978 Carl’s previous company, California Resorts, Inc. dba Resort Development & Advisors, has been the market leader in urban share projects such as The Manhattan Club in NYC, San Francisco Suites and Powell Place City Shares in San Francisco. Mr. Berry is a co founder of The World’s Finest Resorts. He has served as Chairman of the American Resort Development Association (ARDA). Carl Berry earned a BS degree from the University of Idaho. http://www.carlgberry.com

Senior Communities In Miami Florida

Writen by Ashley Andyshak

As the American population ages, this group’s housing needs have been addressed in recent years with the development of a number of senior communities in Miami, and across the country. These communities are designed to cater to the needs of senior citizens, and the level of assistance varies depending on the health of the resident and the style of life he or she wishes to maintain. Age requirements for Miami’s communities often necessitate that the resident be 55 or older, while some set the age requirement at 62. This depends on the founding rules and regulations of the community. Some are hospital based, with doctors in the building with the residents, while others allow more independent living, where the residents have their own homes and live independently of any other people. This type of housing offers a communal atmosphere for those who wish to live independently but still have a sense of security knowing that help is just around the corner should they need it.

The type of community a senior wishes to live in depends mainly on the health and level of activity he or she maintains. There are senior communities for all lifestyles, including those who maintain active, athletic activities, enjoy golf or RVs, or those who need more assistance or nursing care. Seniors only apartment are available in many areas; these apartments have the same age requirements as a housing community would. There are even senior rental properties available for those who wish to vacation in a senior friendly atmosphere, and some housing communities allow future residents to visit for an extended period of time to see if the particular community suits them.

Senior communities in Miami not only offer seniors an opportunity to be surrounded by their peers; there are also many amenities that serve the residents’ needs. Many communities have 24 hour security services, ensuring safety of their residents. In most senior oriented communities, there is at least one doctor or nurse on call or on site at all times in case of a medical emergency. Most community plans take care of utilities such as electricity, garbage pickup, water, yard and garden maintenance, and other services. Some may even offer laundry and housecleaning services either included in the housing payments or for an additional fee. Assisted living or nursing care facilities have meal service as well, while those who live in more independent communities prepare their own meals in their own private homes.

As with any community housing development, senior communities in Miami often have rules and regulations regarding what you can do with your home and property once you decide to reside there. Be sure you are aware of any such restrictions before making a decision to buy or rent a home in one of these developments. Otherwise, living in one of these communities can be much like living in a private home but with the closeness and camaraderie of your community peers and the added convenience of included amenities. Explore all your options, and you are sure to find the retirement home or community that best fits your health and lifestyle needs.

Inside Miami Real Estate is a network entirely devoted to real estate information. The entire Inside Real Estate network has more than 100,000 pages of real estate for cities allover the United States. Inside Real Estate covers several topics from the basic “how to’s” of real estate to city specific real estate information.

Buy the Right Property Don’t Get Misled

Writen by Jack Parker

We human beings have lot of aspirations and dreams in life which we want to fulfill in this small life. In the list of dreams what usually tops the list is the wish to have a beautiful house. Yes we all at some point in our life desires to own a house and design it the way we want. So why not to give some time to your biggest ever dream. Home buying is not an easy task. One really goes through a lot of turmoil during this property dealing process. But all is worth if results are satisfying. The right real estate professional can help you make good business decisions based on your personal circumstances.

Your first step in this real estate deal is to investigate as this is the mistake most of the buyers do, they don’t investigate. So as now you know then don’t commit this mistake. Check for CC&R’s, Rules and Regulation and Association Fees.

Don’t go too fast or too slow for property purchase. Don’t even jump to first home you see, at least see 5 8 properties before going for the final deal. With the help of your real estate agent you can see as many properties as you feel.

The right team is a must to succeed in the property deal. So choose the right lender and agent.

Don’t get influenced by the furnishings and the decorations of the property. Let the owner’s furniture left to him only. Think of a vacant property.

Discuss frankly your income and living expenses with your real estate professional so that he judge your requirement and can help you better for that suitable purchase. Keep your future responsibilities in proper consideration including children, services and other expenses.

Before you sigh the final deal check all the expenses and costs involved. Check for the insurance, taxes, other home owner dues.

Check for all the general utilities like electricity, security, water, gas.

All the promises made by the owner in the dealing process should be in writing. Don’t go for verbal promises as they have no significance.

For any further information: http://www.propertyvertical.com

Home Buyers Shouldn’t Say Love or they’ll Pay Dearly

Writen by Mark Nash

Valentines Day and phrases associated with it reminds me to tell my clients what not to say when interacting with a home seller or a real estate agent that represents the seller at home showings.

I love it.

It’s perfect for us (me).

We (I) just fell in love with the house.

I (we) just found my next home.

It’s our dream home.

We’ve loved it for years.

We love it. We want it.

It’s the perfect house for us (me).

We love this house. Dearly.

Here are some tips to help you save some money once you find the perfect home.

Instruct your agent to keep you away from listing agents or sellers when you’re viewing a home. As much as the listing agent or homeowner wants to follow you around to sell you the home, ask your agent (yes you should have your own) to tell the listing agent or owner that after a quick verbal overview of the property features you would like to see the property at your own pace, unaccompanied by them. This way if the love starts flowing they won’t know it, unless you’re screaming with glee.

Adopt a poker face. From the minute you meet real estate agents or sellers, be approachable but not overly engaging. Real estate sales persons first thought is to try to qualify you as a buyer. Resist extensive conversations by extracting yourself with “we’re on a tight property tour timeline today”, “it’s our first day out”, or “some features work for us, but it isn’t 100%”.

Don’t stay too long. The longer you stay, the more likely the listing agent will find out way too much information about your feelings toward the home, and that will not serve you later, if and when you enter into negotiations. Even if you are in love, on the average don’t stay longer than half an hour. Book a second showing if you need more time.

Moderate picture taking. If you need to take some photos, do, but limit to overview photos and not every detail such as the insides of kitchen cabinets. Pick up the listing sheet and some additional information, but when offered every mortgage rate sheet, listing agent card, refrigerator magnet, decline the offer. You’re trying to save some trees and not appear in love.

Delay feedback. Before you leave the home the selling agent or homeowner will ask what you think of the home. No commitment answers please. A quick “thank you for showing us the (your) home, we need to think about it”, “we’ve seen so many today, but we need to assess which will work the best for us”, or “it has features we like, but it’s stretching our home search parameters.”

Ask factual questions, which can you, can independently verify answers. If you get stuck being questioned by an agent or seller, take charge of the conversation and ask basic questions that you can verify independently later. This is a good lie detector test, so if you start communicating later on a contract, you’ll know who’s who. Ask what are the most recent taxes, any planned special assessments by the homeowners association, annual, quarterly or monthly assessment amount, how long have you (or the sellers) lived in the home. Use the listing sheet to verify answers.

You haven’t tipped your hand, but if you are in love, here’s some next step tips.

Sleep on it. Unless you’re in an over heated sellers market (beware of top of market prices) take some time alone and weigh the pluses and minus’. Don’t react or be impulsive. You’ll feel more confident if it’s the right thing to do over time.

Take a second or third look. You’ll discover your love level on the second or third tour of a home, or if it’s not exactly what you want. If you go back more than three times, you might start to alienate the listing agent or seller and they might not think your decisive enough to go to the closing table.

Review closed sold comparables from the last six months. Compile data from recently sold homes that are similar to the one you are interested in will let you know if yours is over or under priced or fair market value. These comparables will help you strategize your negotiations.

Don’t waive contingencies. Just because you want it, don’t give up your legal rights in a contract. Don’t let your agent or love convince you to strike attorney, home inspection or mortgage contingencies. Have an attorney review all real estate contracts.

The sellers and their real estate agent will know you want the house when they’re presented with a real estate contract. It’s a sure sign of love in realty circles.

Mark Nash’s fourth real estate book, “1001 Tips for Buying and Selling a Home” (2005), and working as a real estate broker in Chicago are the foundation for his consumer centric real estate perspective which has been featured on ABC TV, CBS The Early Show, Bloomberg TV, CNN TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.