Buying Property In Spain! Got All Necessary Information?

Writen by Joe Ogden

Did you know that Spain is the largest country in Europe after France but with just over 40,400,000 people, it is one of the least densely populated!

Did you know that over 1.2 million foreigners have chosen to settle and buy properties in Spain, which attracts more than 52 million visitors each year!

Did you know that 640,000 new homes were built in 2004, a higher number than Germany, France and Italy combined. Predictions show that another 2 million homes will have to be built over the next 6 years to meet the demand for Spanish property!

It is not simply Flamenco or Bull Fighting or the San Fermin Festival or lots and lots of bright sunshine that is attracting more and more tourists and tempting people to settle in Spain from around the world.

Even if we ignore that Spain, for last thousand years or so, is the cultural center of the Europe, she has much more to offer to the world’s citizens, many of whom are looking for Spanish villas for sale.

The local Spanish developers had something different in their mind, the majority of the apartments or properties are bought for the good financial returns a buoyant market returns.

There are around 2,750,0000 empty flats around the country and most of them are not even for rent. Owing to this problem, a good number of Spaniards are not finding homes to live in though construction is one of largest employment sector there.

Never the less, the situation is changing. The government is trying to fix this problem by clamping down on planning permissions, although these measures for reform only started recently this will serve to build a financially secured Spain in future.

Currently those who invested in the past have largely disappeared and the houses and flats are now being owned by overseas clients and Spaniards who are buying them as relocation properties or holiday homes.

In any case the situation for foreign buyers is as lucrative as it is precarious. The Spanish property business, like any other business in any corner of the world, has attracted a number of middlemen, who, unfortunately, are as always eager make a fast ‘buck’ with prospective buyers. Experience has shown that when a person is trying to buy some property from a broker he or she runs the risk of overpaying and even fake buying. It is not always possible for an outsider to know the full history of these agents and we should not forget the old saying ’seeing is believing’.

The Spanish property market changes frequently, before buying property in Spain a cautious buyer should primarily try to gather all relevant information regarding the property and the then market scenario. A good place for research is always the internet where there are plenty of good helpful sites on buying property in Spain.

Joe Ogden is a freelance writer having years of first hand experience in Spanish property related business. For further information regarding properties for sale in Spain or Spanish property agent, he recommends you to visit http://www.zest properties.com/.

California Real Estate: Selling Your Home in a Changing Market

Writen by Kaye Thomas

If you bought or sold your first home after 2001 then you may be perplexed by the current market. If your home has been on the market over three weeks without an offer and few people are showing up at the Sunday Open House… Relax… Do not panic.. You did not choose the wrong agent… This is just a return to a normal market.

Over the last 5 years we became accustomed to a frantic and fast paced market where property sold in a day with multiple offers and selling prices far over the listed price. The last four months have seen a change from that mad whirl to a slower paced normal market.

In a normal market it may take 30 90 days for a property to sell. The list price will be close to what the house down the street sold for last month and maybe a bit under, not $200,000 over that price. The best offer you receive may be the first offer and it will likely be below the list price. If you are lucky you may get four potential buyers through an open house. Your Nephew who quit his job as an engineer to make millions in real estate is probably getting ready to go back to engineering.

Potential buyers are taking weeks or months to make a decision about a property. They are no longer willing to pay top dollar for a home in poor condition. They might look at a fixer if it is priced right but will not pay a premium price for a marginal property.

A prospective purchaser will buy when they perceive a definite value. They will no longer be willing to overpay on the assumption that the home will double in value in 6 months. This does not mean that prices are dropping drastically because they aren’t. It does mean prices will increase at a slower pace. If a property is perceived as an excellent value then you will see multiple offers. I know of 6 properties in the last two weeks that sold for over list price with multiple offers. They were all listed at market value and in excellent condition.

Many Sellers have a hard time adjusting to a slower market. They do not want to believe the Great Times are over and now they must settle for Good Times. Many Sellers get into trouble and wind up chasing a down market. They continue to list at a price higher then market value in the hope that someone will still pay their price. In the long run sellers who chase a market almost always lose more then if they had priced their property correctly when it was first listed. None of us is smarter then the market!

If you are thinking of selling soon here are a few tips:

Get your home in market condition.

*Take a good look at your home. If you have not painted recently then paint the interior and exterior if necessary. If the carpet is worn replace it. Have the house professionally cleaned including windows. Make those minor repairs you have been putting off.

*Look at the exterior of your home. Landscaping is often the key to selling a home. Buyers make half their decision on a property based on the exterior of the home. Many will not even get out of the car if the exterior is not appealing.

*Price your property at market value. Sellers always think a buyer will make a lower offer on their home even if it is over priced… but they don’t. Buyers rarely look at property well over their price range in the hope the seller takes a lower offer. Your agent will give you current market COMPS on similar homes in your area. Ask questions and view some of the competition to see what they are like compared to your property.

*Have realistic expectations. Relax.. and your home will sell at the right price.

Kaye Thomas has been selling real estate in Manhattan Beach Ca since 1979. Kaye works with buyers and sellers and specializes in residential and small residential income property. In addition to selling Kaye spent 16 years managing an office and developed an extensive training program for new agents.

For more information on the Manhattan Beach and Southern California/South Bay real estate market visit Kaye at Kaye Thomas 4 Homes, Move 2 Manhattan Beach, or her Real Estate Blog at Manhattan Beach and South Bay Real Estate Information

Condo Conversions

Writen by Michael Southard

The past few years has seen a boom in condo conversions, which allows buyers to generate cash on cash returns within a short period of time. This, in turn, allows prior apartment owners to cash out at the top of the market.

The condo conversion craze began with the low interest rate affliction that was crippling apartment fundamentals. Condo developers were willing to pay a premium to buy and turn rental properties into condos.

The cash on cash returns that successful condo sales can generate are between 15% and 30% or more in a matter of months. Another benefit seen from condo conversions is the creation of more affordable housing in areas famous for steep single family home prices.

Condo conversions can be a double edge sword, however, as conversions likely will hurt most rental markets. While condo conversions benefit multifamily owners by shrinking the supply of apartments, condo buyers are typically renters, so conversions won’t necessarily lead to a jump in occupancy rates. In fact, some conversions directly compete with apartments because they end up as rentals. Also, many renters currently living in an apartment when it is bought and turned into a condo cannot afford the price of the condo. They are left searching for a new place to live. If they can afford to stay and choose to buy the condo, they are most often offered a much cheaper price than outside buyers.

Despite any controversy that condo conversions have created in the real estate market, it is still a smart, beneficial way to invest in real estate.

To learn more about condo conversion loans, visit Security National Capital at www.sncloans.com.

Michael Southard is the Vice President of Security National Capital.

Should You Pursue Lease Options To Purchase a Home

Writen by Raynor James

The real estate market is a place where people can get very creative. This brings us to the rent with option to buy programs you see on the market.

Leasing is a fairly popular form of living arrangement since it basically involves renting over a pre set period of time, usually 3, 6, or 12 months at a time. Leases provide lower rates than a month by month rent. However, when looking to lease, one will often come across the “Lease Option.” A lease option is essentially the same thing as a lease except that it provides the option to purchase the property at a future date.

The option is just that, an option. It may be an interesting offer for some renters, but others will want to pass it up. The option does not have to be taken, since there is a fee required to purchase the option. Although the amount can vary, the fee is usually up front and paid when entering the lease. In general, lease options are offered in times of slow real estate markets, since generally owners of property look to simply sell during the hot times.

There are some definite advantages and disadvantages when it comes to a lease option. On the downside, the lease option is rarely exercised and therefore it ends up being money wasted. Many people pay the money thinking they will buy later and then either lose interest or find they can’t qualify for a mortgage. When this happens, the money paid to purchase the option is lost and you will be wondering what you could have possible been thinking when you entered into the agreement.

An area where a lease option is commonly used is real estate investment. In such a situation, a real estate investor believes he or she can flip the home in a short period for a profit. They find the lease option to be very attractive because it allows them to secure the home without dedicating significant cash resources to the deal. Once they purchase the option, they then start hunting for a buyer that will pay more than the seller is looking for in the original sale. If the investor can pull it off, they exercise the right to buy and immediately sell to the third party. In many cases, the two transactions will happen at the same time! This leaves the investor with a smile on their face and the original seller in a grumpy mood.

As with anything, there are upsides and downsides to a lease option. For investors, it makes sense in many situations since it frees up cash flow. For people looking for a place to live and raise a family, it rarely makes sense.

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

Do I Owe Money After I Have Been Foreclosed On?

Writen by Mark Sumpter

I have been doing short sales for just over 5 years as of this article, the two most resounding questions, based on the course of action as it relates to the foreclosure are as follows:

1. Will I owe the bank money after they foreclose on my on home?
2. If you are able to negotiate a price and buy it for less then I owe, will the bank come after me for the difference?

As a homeowner, that would be a very important question for me as well. Often, when I meet with homeowners, I always explain how the foreclosure process works. If you are not aware of the legal process in your market, you should learn. It is important that you are able to answer this question for the owner when it arises.

When the lender or bank forecloses on the property and they eventually sell the property for less than what was owed, then a deficiency exists with the loan. The deficiency is the difference between what the homeowner owed and the amount the property sold for.

For example, Mary owes $100,000 on her home and the lender forecloses and sells the property for $60,000 at auction. There is a deficiency of $40,000 for which the lender can then sue the homeowner. The key phrase is “can sue.” That is the right of the lender. However, that is a practice that almost never happens but, it is a real concern for the homeowner. In most cases, the homeowner wants nothing else to do with the lender once the property is sold at auction.

If the deficiency judgment is granted, it would appear on the homeowners’ credit report just as any other judgment would appear.

While the second question, on its surface appears to be similar to the first, it really isn’t. That’s because the outcome is different. The homeowner, while they may not be savvy to the short sale process, will want to know what happens to the difference. That is what you agree to buy the property for and the current loan balance on the property. Will they be required to pay the difference? During the short sale process, you can negotiate with the lender to not seek a deficiency judgment against the homeowner.

Some lenders as a matter of policy, will not seek a judgment against the homeowner because they feel they have waived their right by accepting a short sale however, if you can get them to openly acknowledge they will not seek a judgment; the owner will be more than happy.

There is a second issue as it relates to the deficiency and that is the 1099.

The lender will issue a 1099 to the homeowner for the difference. In Mary’s case, the lender will issue her a 1099 for $40,000. This will have to be reported as income Mary had received and thus she will have to pay taxes on the $40,000 as though it was earned income.

Either way, the deficiency judgment can be of great concern to the homeowner. It’s real if the property sells on the courthouse steps. In my dealing with lenders, we have found that they generally will not seek a deficiency judgment because of the hardship.

There are a couple of options that the homeowner has as it relates to the deficiency judgment. In Mary’s case, she could file bankruptcy to address the judgment. Mary could also short sale the deficiency with the lender at a later date. In other words, offer the lender a lesser amount as “payment in full.”

Here is an important note. The lender, if they issue a 1099 cannot then sue for a deficiency judgment. The lender can only pursue one or the other. In other words, Mary can’t receive both a deficiency judgment and 1099 from the lender.

Lastly, as you disclose to the homeowner this important information, you must inform the homeowner about the ramifications of the deficiency and the 1099. It is the homeowner’s decision to continue working with you or not.

It is obviously in the best interest of the homeowner to be proactive and deal with the foreclosure. At least there is a chance that the investor can negotiate away the deficiency before it even becomes an issue.

About the author Mark Sumpter isn’t a ’secret weapon’ big shot, or a ‘go to guy’ for Wall Street investors. His system has allowed him in one instance to Pocket An Extra $68,000.00 In Just 47 Days.

In fact, he’s such a regular guya former Kansas City policeman you’ll be shocked at this simple, easy to operate, tested over time system that Mark Sumpter uses to successfully launch countless other investor’s careers into the financial stratosphere.

He will show you, Step By Step - Exactly How To Use The Same, Awesome Power Of This Magnum Force, ‘Real Estate Investor’s Short Sale System’, So You Can Consistently Average A Staggering $42,000.00 Profit Per Deal - Month After Month After Month”

This system is so easy to follow and so dynamically powerful, that he trained Carissa, a 19 year old student to put together the entire package for the bank, negotiate the short sale, and get the closing done on not one, but up to 80 hot, profitable deals at once

It’s a paint by numbers system that allows his students to crank out deal after winning deal, week after week and still have time left at the end of every day to spend with their families.

Mark Sumpter is an investor who is also an expert in the field of buying and selling pre foreclosures. Mark’s website http://www.ShortSaleExpert.com offer 52 free coaching tips related to building wealth in real estate investing and short sales.

Why Own a Home Instead of Rent?

Writen by Alexis Dey

There are times when it is better for a person to rent, but most often home ownership has many more benefits and advantages.

About 10 year ago a had a retired aunt and uncle who rented a condo in Las Vegas. Uncle Jim (not his real name, but that’s what I’ll call him) was a retired minister. Throughout his career he and his wife lived in parsonages, which are homes furnished by the congregation while they ministered there.

He and his wife told me that the biggest mistake they ever made was not to invest in buying a home. In their retirement years, when their other retired friends were living in homes that were almost paid off and had appreciated greatly, Uncle Jim and his wife were using a huge portion of their limited retirment money to make expensive condo rent payments. They strongly cautioned me not to make the same mistake they had.

Recent studies are showing that there are many benefits for both the owners and the community for owning your own home, including increased education for children, lower teen age pregnancy rate and a higher lifetime annual income for children. Besides these, listed below are some of the primary advantages for owning your own house.

More Stable Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing cost especially important in times of inflation, when renters lose money and owners make money.

Tax Savings
Homeonwers can be eligible for signifigant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many states’ income taxes. This can be a considerable amount of money at first, because the first few years of mortgage payments is made up mostly of interest and taxes.

If you need to refinance to consolidate other debts (an opportunity you don’t have if you are renting) the interest on this is also tax deductable.

Equity
Instead of payments disapearing into someone elses pocket, home owners are building equity in their own home. This is often one of a person’s biggest investment assests. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells. It is like having a schelduled savings account that grows faster the longer you have it. If the property appreciates, and generally it does, it is like money in your pocket. And you are the one who gets to take advanatge of that, not the landlord. You can then use this equity to plan for future goals like your child’s education or your retirement.

It is Yours!
When you own a home you are in control. You the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and threaten to evict you.

Even young people, like college students out on their own, can often benefit from home ownership. It puts them ahead of other young people their age financially by helping with their credit and giving them what is often an excellent investment. Often a college student buying a home will rent the rooms out, and his or her roommates end up making the payments for the house. When the student is ready to move on, her or she can sell the home (hopefully making a profit) or keep it as an investment and continue to rent it.

Buying a home is an important decision. It is often the largest purchase a person makes in his or her life. Home ownership also comes with some increased responsibilities, and isn’t for everyone. There are some disadvantages to homeownership that you should take into account.

Increased Expenses
Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same, home owners still have to pay property taxes, all the utilities, and all the maintenance and upkeep costs for the home. Often you need to supply appliances that were furnished with a rental.

Decreased Freedom of Mobility Homeowners can’t move as easily as a renter who just has to give notice to the landlord. Selling a house can be a complex and time consuming process.

Risk of Depreciation
In some areas with overinflated prices, there may be a risk that the house will depreciate instead of increase in value, if the prices go down. If you then sell the house, you may not get enough money from the home to pay back your mortgage, and you will still owe the mortgage company money.

Possibility of Foreclosure
If for some reason you are unable to make your payments, you risk having the lender forclose on your propety. This can result in the loss of your home, any equity you have earned, and the loss of your good credit rating.

When considering home ownership, you need to weight the advantages and disadvantages for yourself. If you are like most people, you will find that homeownership is worth the risks and disadvantages.

By Alexis Dey © 2006 Mohave Publishing. All rights reserved. http://I Can Buy.com

If you would like to own your own home but have bad credit, check out the FREE real estate ebook “Buying a Home When You Have Bad Credit” to find out how at http://I Can Buy.com today!

No Axe to Grind

Writen by Helen Rowe

Those of you who know where my office is will know that I am in a brilliant location to observe life in Tortosa. They come late morning, off the train from the coast, all nations are represented in these tourists; sadly the one common fact is that once the shops shut for lunch, they think that is all there is to see. So they sit in the cafes until mid afternoon and on to their train back to the coast they go. “That was Tortosa”?

If they had just walked a little further beyond the end of Sant Blai (the main shopping walkway) passed the old bridge towards the cathedral. They may have seen a different city, with its history depicted in the various architectural styles of buildings. It is not their fault; Tortosa seems almost shy to advertise itself with the exception of the Renaissance Festival for four days in July.

On the first morning of this festival, there is an air of tension, shopkeepers are there early and every available hand is hammering, wiring or tying the bunting, pendants, palms and canopies up. Bands have been practising for weeks, bails of straw have arrived, but what you see later that day happens like magic. Come four o’clock the traders return dressed in medieval costume, they set up their wares outside their shops in 16th century fashion. Then the parades start from the main Plaza. Its worth fighting your way through the crowds to see the spectacular pageantry, then through the street they move up into the ancient city this continues through the evening. The atmosphere is electric, heightened by the costumed drum bands and street actors.

Those who know Tortosa’s old quarter and Remolins will also know that some of the best restaurants and bars are in this area. With the regeneration of this part of the city well underway, there is an opportunity to try many new ones opening. This area is multicultural and now this influence has spilled into the type of restaurants and the food they serve. Bon Profit.

Over hearing a conversation last week in a shop, a man was saying “she was a right old battle axe” hoping they were not referring to me!! Plus talking to a friend about Tortosa the next morning, drew me to think of The Red Sash Women of Tortosa, The history of the city I read quoted the following

“The Order of the Hatchet was founded by Count Raymond Berenger of Barcelona in 1149 to honour the women who fought in defence of the town of Tortosa. The Moors were defeated by the heroism of the women, who were thenceforth empowered by the count to wear the red sash of the Order of La Hacha (The Axe), to import their clothes free of duty, and to precede their bridegrooms at weddings”.

So if you see in Tortosa any women wearing a red sash it might be wise to give them a wide berth! Or maybe some women will try anything to cut the cost of their wardrobe!

The Apartment Search

Writen by Kyle Haley

When you are apartment hunting, prepare a rental search plan. Be sure to know in advance what you want in an apartment and what you can live without. Decide in advance what areas of the city you could consider living in and make a list of apartment buildings within that perimeter.

Be sure to consider how far and how convenient it will be for you to travel to your job or your school or your family and friends. Also, how far is the apartment from stores, banks, hospitals, Church (if you attend) etc. If you have a car, make sure that there is adequate and convenient parking space 24/7. If you don’t drive make sure that there is close by public transportation.

Narrow your apartment locating to the size of rental unit you need. Studio apartment or one bedroom apartment or 2 BR apartment or more. Are you considering a furnished apartment or do you possible need a short term rental. If you are renting an apartment with a cat, dog, or other pet, you need to find out which apartments allow renting with pets and which do not. And, if they do allow pets, is there an additional security deposit required and if so, how much it is. Do you need an apartment complex with an exercise room or tennis courts or a pool or a recreation room, etc. or do you simply need and desire a nice clean and quiet pad.

Be realistic about what you can afford. Most apartment renting guides suggest that your rent should not be more than 25% to 30% of your income. This can vary depending on the income bracket, but be sure to be “real world” when budgeting additional apartment expenses such as heating and air conditioning and other utilities. If you fall short of affording the apartment of your choice, you might consider sharing an apartment with a roommate or roommates. Keep in mind that living with roommates can help you afford an upscale apartment or even, in some cases, luxury apartments, but it also has extreme restrictions to your privacy.

If you are familiar with the area and its neighborhoods, that gives you a distinct advantage for your apartment search. If, however, you are relocating to a new city or are not particularly knowledgeable about the city, you may want to contact an Apartment Locator or an Apartment Finder.

Once you narrow your search for apartments down to apts which suit your needs and desires you must be well organized & well prepared for your visits to the apartment complexes. When inspecting the rental premises be on the alert for unsafe conditions, excessive noise from traffic or playgrounds or neighbors. Visit the apartment building at night as well as the daytime hours. This will give you a more comprehensive understanding of the total space you will be residing in.

When you find the apartment complex that meets your renting needs and desires, you must be ready to put your “best foot forward” when you meet the apartment’s rental agent. This person may be the apartment building manager or a renting agent for the apts. You should prepare for this apartment renting interview in a professional and intelligent manner. Be advised that you are going to be asked to provide proof that you are a reliable prospective tenant. You are most likely going to need references from previous landlords. You may also be required by the apartments to show that you are gainfully employed and can afford the rent. Many landlords may require a credit report. If you are a first time renter and/or you have limited credit history you may be asked for references from family, friends, employer, professionals, etc. Likewise if you are renting with bad credit you will certainly want to come to the interview with a strong selection of references.

You are not necessarily restricted from apartment renting with less than perfect credit, but you may be required to put up an additional security deposit and possibly have a credit worthy person co sign the apartment lease with you. Don’t unprepared for by requests for any of these things. Be sure to fill out a 100% truthful apartment rental application and come to the interview with references, proof of employment, credit information and any other renting resources at the ready. If you do have a credit history or renting history that might be detrimental, going through an apartment locator or apartment finder may be the best solution. They will present your history to the landlord for you, (make sure they are 100% truthful about it) and they can also be quite helpful and save you a lot of time because they most likely will know which landlords and apartments are more lenient in these circumstances. They can also advise you as to exactly what kinds of references and documents you might need to prove that you can be a responsible tenant.

You Have Located Your “Dream Apartment”

Once you have located your “dream apartment”, or as close to your perfect apartment as possible, now it is necessary to pay extremely close attention to the particulars of the rental agreement. An Apartment Lease is a contract between you and the landlord. Once agreed upon and signed by the tenant and the landlord, the rental lease creates obligations and restrictions for both parties. The most obvious covenants of the apartment lease are the length of the rental, (Six month lease, one year lease, two year lease, etc.) The amount of the security deposit, when the rent is due, who is responsible for what utilities. Also in that apartment lease, however, are stipulations, (sometimes in small print) that can cover a great variety of landlord and tenant obligations and restrictions. They can include, but are not limited to, the following:

Maintenance of the apartment
Care of the premises
Cleanliness
Insurance
Governmental regulations
Eminent Domain
Nuisance and noise clauses
Stipulations as to the circumstances whereby the landlord can enter the premises
Use of Common Areas
Keys and locks
Loss or damage
Parking
Pets
Plumbing
What the landlord may do if the rent is in arrears
What the tenant can do to bring the rent current before any kind of action might be started
Non performance or breach of the contract by the renter
Renter’s penalties in the event of early termination
Circumstances which might cause the tenant or the landlord to break the lease prior to the end of the term
Heat and other utilities
Removal of goods
Surrender or Non Surrender of the premises
Waivers of various obligations
Prohibited reprisals
Garbage disposal
Recyclables
And the list goes on and on and on.

Prospective tenants should read an Apartment lease thoroughly. Prospective apartment renters should understand everything that is contained in that lease and make an informed decision to be 100% accepting of all the provisions for both the tenant and the landlord, that you are positive that you can live up to your end of the bargain and that you are comfortable with the provisions on the landlord’s end.

If you do not understand every single clause of that apartment lease then do not sign it until you do understand it. If necessary and if possible, request assistance in interpreting the lease from a trusted source such as a knowledgeable friend or family member or employer or professional, or anyone else who can understand it and explain it to you. If necessary get legal advice. It can cost additional funds if you do not qualify for free legal assistance, but that additional cost might save you a ton of money and save you a ton of heartache and aggravation down the road.

If you do not agree with any of the provisions of that apartment lease and/or you feel that you can’t live up to the tenant’s obligations, or if you are not in agreement with any of the landlord’s rights under the agreement, then do not sign the lease until/or unless it can be changed to your satisfaction. If the apartment rental agreement cannot be amended to meet your needs and desires and comfort level then do not sign the lease and do not rent that apartment. The Apartment Rental agreement that you sign as a prospective tenant will not change once you become the actual tenant of that apartment.

Good luck in your apartment search and good luck in your new apartment.

Kyle Thomas Haley has been helping people relocate on the Internet since 1999 with Apartment and Relocation Websites:

Apartment Rentals Nationwide
USA Moving Companies

Copyright 1999 - 2005 STANZEEKAY Inc. You have permission to publish this article, free of charge, as long as the bylines are included and none of the links or content are removed or changed.

Real Estate Investing Tips For Profit

Writen by Susan Jan

Investing in real estate has long been considered as a safe and high return investment. “Flipping” in real estate investing has become very popular over the last few years especially among the speculative real estate investors. Flipping refers to the buying and selling of real estate property within a short period for quick profits. Though the return on investment appears to be good, there is still a risk that your money could get locked in in the absence of buyers.

Real estate prices have steadily increased since the beginning of this decade. However many signs point to the real estate boom coming to an end, so it may be wise to put real estate investing on hold. Investing in real estate, contrary to popular thinking, is a slow yielding investment. Hence real estate investors need to do proper planning and to conduct market analyses before investing.

Before investing in any property it is vital to study all the related documents of the property, to see the license of a broker if any, to check for liabilities etc. All contracts have to be in writing. All details such as the names of all parties, address of the property, area, purchase price, consideration etc. have to be entered in the contract along with all parties’ signatures. It is also prudent to hire a property lawyer to look into the intricacies of real estate contracts.

One good way of investing in real estate is to buy foreclosure properties. Foreclosure is the process in which a bank or a creditor sells the property of the homeowner to recover the loan, which the owner has not been able to pay back.

A lease to purchase contract is considered the best type of real estate investing. This type of contract basically allows the tenant to lease a particular property for some period, and at the end of the period he has the option of purchasing the property at an amount decided at the signing of the contract. The tenant pays an initial non refundable deposit. If the value of the property goes up at the end of the leasing period, the he may want to buy the property at its original value. If the value has not increased he can opt not to buy it. During this period he can also rent the property to someone else. By this method, the investor takes a lot of the risk off himself as he does not have to commit a large sum of investment capital not apply for a big loan.

Currently, there are a few areas where the real estate market is just too overheated and investing in real estate is just too risky. They are Miami, Las Vegas, Northern Virginia, Phoenix, Sacramento, Boston, Washington DC, and San Diego. Other “hot” areas also include San Francisco, Chicago, New York, Los Angeles, and Seattle. The safer, less volatile areas for investing with good ROI are Dallas, Cleveland, Houston, Columbus, Omaha, Kansas City, and Pittsburgh.

For more on Investing, visit investment expert.info, investing pro.info and premier invest.info.

Real Estate Investing Maximum Leveraging of Your Money

Writen by Dr.Phil Speer

At this moment, you have access to some amount of money, from the extremes of only pocket change to the reserves of Bill Gates or Warren Buffet.

Suppose you want to invest your funds into some vehicle that will multiply the return.

You look around for the Return on Investment of various investment instruments. For every investment tool, varying deposit amounts of your funds are required. You must either put up your cash or guarantee payment from specified resources.

Real estate investing offers the maximum leverage potential possible for your funds.

I found a large house for sale 25 years ago. It was listed for $150,000, but had been on the market for an extended period of time because of its large size with an awkward layout. But when I walked through the house for the first time, I immediately envisioned how the layout was conducive to three living units instead of the single family home as it was constructed. I offered $10,000 down payment for the house for a reduced sales price of $100,000, and my offer was accepted. The upscale house is now worth $500,000 and has been refinanced numerous times to pull out cash. Yet, the three units have consistently returned a cash flow of much more than the mortgage payment for 25 years. Leverage from the $10,000 down payment is astronomical.

But leverage available from real estate investing gets even better.

I started a practice years ago of submitting zero down purchase offers to motivated sellers with a $10 earnest money deposit. I bought $1 million in houses during my first year of real estate investing. I bought another $1 million in property the next year, and $10 million worth of properties by the 4th year. Yet, all of these purchases were made without any cash down payment and only $10 in earnest money deposits. (Even the $10 was in the form of a check attached to the Purchase Contract, and seldom even cashed by the Seller!)

But the real estate investing professional can take leverage even another step.

The earnest money deposit check for $10 could be equally legal as a check for just $1.

And in most states, so I’m told by my friends who are experts in legalese, a verbal agreement is just as binding as one accompanied with cash or check. Now that’s leverage!

Don’t let ‘em tell you that buying real estate investments without cash or credit is impossible. My first four years of buying $10 million in properties for zero down is proof that prompted an editorial in the Wall St. Journal featuring my real estate investing. And I have packaged that information in a huge Guide for the would be and veteran real estate investing professional.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online “Academy of Advanced Real Estate Investing Techniques” http://www.AAREIT.com.