The Top Five Things You Need to Know if You Are Buying or Selling a Home

Writen by Pat Hicks

This article is designed to address what I consider the really “big ticket” items that simply cannot be ignored by either buyers or sellers. These are things that, in my opinion, simply must be done to even start the process of putting a house on the market to sell or to initiate the purchase of a home.

For most of us our homes are the biggest asset we will ever have. Increasingly, it is the one asset by which we have accumulated equity or “wealth” of any significance and by which we can borrow against to restructure debt, use as collateral for lines of credit and even draw on for a retirement fund. Consequently, when we purchase or sell our home it is often now much more than just providing for, or changing the roof over our heads.

Throw into the mix the emotional component of the “home is where the heart is” and you have an extremely complex and layered investment. It is rare the individual that sees the rooms of a house only as a structure rather than the nursery they will bring home their first born, the first place they can call their own where they will entertain friends and family, the “nest” where they will begin a marriage, the room where grandmother will have her own space and be close by to care for, the place where a son or daughter will remember a childhood and yes, the place where sometimes people gather around a bedside to say good bye.

When faced with the sometimes daunting, sometimes exhilarating, sometimes scary, sometimes frustrating task of a home purchase or sale it is often helpful to have a plan of action; a set of goals; a blue print (no pun intended) as it were for navigating the process of purchasing or selling a home. To that end, the following attempts to provide knowledge, advice and guidance gathered and compiled from many professionals, with years of experience.

So, let us begin. Some of it may be repetitious to you as you may already be aware of, or have the knowledge of, the information provided. But, taken as a whole, the intent is to provide a complete picture for a fairly wide spectrum of individual experiences that addresses, at some point, an issue or point of view not only relevant to the reader, but valuable to them as well. It is quite possible, actually probable, that just one point, of and by itself from the list provided here will save you thousands of dollars and/or momentous heartache.

Number 4 - Arrange Your Personal Financial Information in Advance

Raise your hand if you have had to qualify for a home loan before. For those who have their hands raised, you already know the drill and how impersonal, probing and detailed it can become. You have found your dream home, you envision holidays, birthdays, weddings, hopes, dreams, family, friends, love and happiness. Then the screech and collision of qualifying for a home loan meets the dream. A little advance preparation will do wonders for getting one ready for the reality of what to face as well as smooth the process for all parties concerned.

The list provided below is what I recommend first time or anytime buyers to prepare in advance of looking for a home and certainly in advance of talking to a mortgage broker. This information combined with your credit scores and reports, puts you in a distinct advantage when discussing loan packages available, requirements necessary to complete a loan package and time savings if critical to the completion of the purchase. In addition, and maybe even most importantly, having prepared all of this in advance creates the accurate perception by your team of professionals representing you, that you are serious about purchasing a home. I will assure you, commissioned professionals get real serious with people that make their jobs easier and don’t waste their time.

Last two years of tax returns.

Financial statement prepared by an accountant if possible.

If renting, copy of lease and twelve months of cancelled checks showing rent payments on time.

Copies of last two months utility bills. Photocopies of drivers license and social security card.

The final purchase contract for the house (if applicable).

If you’re self employed, the mortgage company may require your personal and business tax returns for the previous two years and your company’s year to date Profit and Loss statement.

Divorce settlement papers, if applicable.

Updated account statements for listed assets in the application that may have changed in value.

Information about debts or credit report items that may have been delinquent or not accurate.

Evidence of your mortgage payments, such as canceled checks.

An irrevocable gift letter if you are receiving a monetary gift from a relative.

Your bank account numbers and the address of your bank branch, along with checking and savings account statements for the previous 2 3 months.

Last two pay stubs, W2 withholding forms, tax returns for two years, or other proof of employment and income verification.

Credit card bills for the past few billing periods, or canceled checks for rent or utility bill payments, to show payment history and amount of revolving debt.

Information on other consumer debt such as car loans, furniture loans, student loans and retail credit cards.

Organize and place all of this information in a three ring binder with labeled dividers. Make three copies, one for your mortgage broker and two additional copies, one for yourself and one extra in case it is needed (which more than likely will happen).

Number 5 - Common Sense Do’s and Don’ts For Both Buyers and Sellers

Often, common sense is just not that common. It seems to me, one would want to make the best impression on strangers coming into your home even if they aren’t coming to give you thousands of dollars in exchange for it. I guess sometimes life gets us going round and round so fast, we forget the obvious. To that end, the following is a compilation of good sound advice to spruce up your home when putting it on the market. You can use some of it before Aunt Ethel comes over as well.

If you are buying a house, for goodness sakes don’t go out and purchase a car or any other big ticket item right before after applying for a loan. This includes applying for credit cards and making credit card purchases. If you have to buy something on a credit card make sure it is less than 30% of the available credit.

If you are selling a home do clean it up. Slap a coat of off white paint on the walls, shine the bathroom fixtures, clean the carpet, replace a cat box so that it doesn’t smell, oil the windows and doors so they open easily without creaking, clean the windows, polish the door knobs. Do remove all the appliances and anything else from the kitchen counter to show off the counter space. Do remove all clutter from shelves, closets and store rooms.

When pricing your house for sale, don’t price it too high. Yes, you can always come down but by that time your buyers may have bought something else. Besides, lowering the price significantly signals desperation or that something is keeping this property from selling.

Do plant some flowers in the front if at all possible or get potted flowering plants to spruce of the front when selling. Make the front door look as fresh and new as possible. If need be, paint the front door, definitely shine up the door hardware, clean the back yard and do anything possible to make the yard look neat and clean like racking leaves and mowing the grass. Put a plush new door mat at the front door. You can always take it with you but it helps give a good first impression. And, put the toilet seat down!

(Due to space limitations, this is an exert from The Top Five Things You Need to Know if You Are Buying or Selling a Home. If you would like the complete article, please go to our site and we will immediately email you a free copy.)

Pat Hicks is the Managing Partner for http://www.Iwantafreecreditreport.com , a web site providing online shopping, reviews of and links to some of the top web based credit reporting sites.

Realtors Association Lowers Forecast of 2006 Home Sales

Writen by Martin Lukac

The National Association of Realtors has announced a lower prediction for U.S. home sales in 2006.

Previously, the NAR had expected 2006 existing home sales to hit 6.62 million, but they have revised that prediction to 6.60 million for the year.

Last year, the nation saw a record sales level of 7.08 million.

The trade group predicts that new home sales will decrease by 13.4% to 1.1 million. Last year, 1.28 million new homes sold. The NAR had expected new home sales to hit 1.13 million for the year, but are now less optimistic.

Many economists are still predicting that 2006 will be in the top five record years for housing, despite the falling market. The key is where the market is coming from record highs. It can still go down and be way above historic levels.

The NAR predicts the average 30 year fixed mortgage rate to be at 6.9% for the second half of the year. The predicted national median existing home sale price is expected to increase by 5.3% for the year to $231,000.

Due to the reported vulnerability of the market, the NAR has requested that the Federal Reserve stop raising interest rates.

“Experiencing a slowing from a hot market is a good thing because we need a solid housing sector to provide an underlying base to the economy, and slower appreciation will help to preserve long term affordability,” said David Lereah, the NAR’s chief economist.

“But this is a time for the Fed to pause on rate hikes because we have some interest sensitive housing markets that have become vulnerable.”

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

Foreclosure Prevention

Writen by Lionel Spears

Currently in the United States foreclosures are at an all time high. Thousands of homeowners are just one paycheck away from getting behind on their mortgage do to any unforeseen circumstance. For most people, their home is their castle, their most precious asset and the only options that usually present themselves to prevent foreclosure are investors attempting to take their home or attorneys advising them to file bankruptcy. With the new bankruptcy law, which became effective on October 17, 2005, this option is more difficult but still applies.

Most homeowners are unaware of their rights and options, the programs that are available for them to get current on their mortgage, plus they are usually intimidated by the lender, and understandably so.

Typically the lender will demand all of the arrears and all of the late fees, delinquent charges, etc. This situation leaves the homeowner with few options if they are unable to come up with the arrears. Seldom can a homeowner find the extra cash to save the home in this fashion.

The average foreclosure often generates huge losses to the homeowner and the lender. It is therefore in the best interest of the homeowner and the lender, to come to a settlement, stop the foreclosure proceedings, and re instate or modify the mortgage of the home. Unfortunately for homeowners and lenders, this coming together doesn’t occur as often as one outside the industry would think.

There is a solution to this problem which is called loss mitigation. When a hardship has occurred that caused the homeowner to originally fall behind in their mortgage payments and has been resolved, loss mitigation can be the most effective means of avoiding or stopping foreclosure. Loss mitigation is an intervention program wherein the lender is willing to work out an agreement that will allow a homeowner to continue making payments, save the home and not come up with all of the past due arrears.

There are twenty seven different ways to mitigate a case to prevent foreclosure. In order to qualify for loss mitigation assistance you must be delinquent sixty days or more on your mortgage payments, you must have resolved the hardship that caused your delinquency and you must have sufficient income to resume your mortgage payments.

If you are having difficulty in making your mortgage payments, we suggest that you should contact your lender as soon as possible to negotiate arrangements to avoid further delinquency. Consider tapping into all financial resources that you have available at your disposal to draw from to make the next month’s payment, i.e. - 401k hardship withdrawal, part time job, savings etc. Be sure to read all your mail from your lender.

Lionel Spears is a Foreclosure Consultant and has 8 years of experience in the financial industry. Lionel is looking to help provide solutions to homeowners that are facing foreclosure different alternatives that will help them save their home, credit, dignity, equity and their family from embarrassment from losing their home to foreclosure. Lionel can be reached by linking on to his website at http://www.spearsrealtysolutions.com/

Don’t Buy Tax Lien Certificates Unless You’ve Done Your Homework!

Writen by Joanne Musa

I went to a tax sale yesterday in an out of the way rural municipality in New Jersey. Unlike most of the tax sales in New Jersey this sale was poorly attended. New Jersey is a very competitive state for tax lien investing so this was an uncommon event.

Most serious bidders arrive an hour before the sale starts. At first, I was pleased to see, with less than an hour to go before the sale, that there was only one other bidder there. Then I did my research on the properties that were left in the sale and I discovered why other investors didn’t bother with this sale. Out of the thirteen properties that were left in the sale, there was only one decent property. All of the other properties were vacant land and when I looked on the tax maps and checked with the zoning department (this is why I arrive at the sale an hour early) I found out that none of these properties were build able lots. Most of them were land locked and none of them were large enough to build on, even though one parcel was a three acre lot.

Since the other bidder there was a professional bidding for an institutional investor, I decided not to bid on any of the properties in the sale. I knew that if I bid on the one property that had a house on it, the professional bidder would bid high premium for it, so I decided not to bid him down and not to bid on any of the other properties since they wouldn’t be profitable. I stayed around to see what would happen at the sale.

About fifteen minutes before the sale three other bidders arrived. These investors were new to tax lien sales and did not really know anything about them. They asked the tax collector a few questions before the sale and indicated that they really weren’t there to bid but intended to watch since this was their first sale. When the sale began the tax collector let us know which properties had prior liens. Four of the undesirable properties had prior liens. I was not surprised and this just confirmed my suspicions that these properties were not worth bidding on. If they were, then the prior lien holder would have been there to bid on them, or would have paid the subsequent taxes and prevented them from being included in the tax sale.

The tax collector announced the first property, and seeing that no one was bidding on it, one of the inexperienced bidders could not resist. He bid 18% and was awarded the lien (this was the 3 acre landlocked and undersized lot - you need 5 acres to build here). The next three properties were struck off to the township at 18%. The next property was the only one with a house on it and that went to the institutional buyer at 18%. There were eight properties left. Another one went to the township. The temptation to bid and get a get a lien at 18% was too great for the other two new investors; they bought three liens each, each one at 18% interest. Fortunately for them, they were very small liens.

After the sale, I explained to them that they should check the zoning on properties before they bid on them. The tax collector does not tell you before the property is sold if it is unusable property and that is why the owner did not pay the tax. The tax collector only has to convey that industrial properties may be subject to the Environmental Clean Up Act, the Spill Compensation and Control Act, or the Water Pollution Control Act. And this is usually done in fine print; on the notice of the sale and the bidder information sheet.

When it come to buying tax liens, and this goes for other states as well as New Jersey, it’s “buyer beware.” As the investor, it is your responsibility to make sure that the property that you are purchasing a tax lien certificate on is a valuable piece of property. Even in states like New Jersey, where real estate is at a premium and has increased in value tremendously over the last five years, there are still tax parcels that are worthless. In many areas of the state, municipalities have been steadily increasing the zoning requirements for all types of properties. In many rural areas you need a few acres in order to build a house.

I know that many of you are under the false assumption that if you are a holder of a tax lien certificate; you are guaranteed to get paid. This is not true; it is a misrepresentation that is fostered by real estate infomercials and high priced seminars. The truth is that no one guarantees that you will be paid. You are first in line to get paid, but there are circumstances in which you might not get paid. You do have the right to foreclose on the property if you don’t get paid within the redemption period, but what if the property is worthless? Than you have a worthless piece of property that you have to pay taxes on.

Joanne Musa is a Tax Lien Investing Coach and Consultant who works with investors who want to learn how to buy profitable tax lien certificates and tax deeds. She is the president of Tax Lien Consulting LLC, a consulting firm for tax lien investors.

Ms. Musa is also the author of the Tax Lien Lady’s E books: Tax Lien Investing Secrets, and Tax Lien Lady’s State Guide to Tax Lien and Tax Deed Investing. You can get more information about her e books at MoreTips@taxlienconsulting.com

Buying Property Overseas, the Janet and John Story Part Two

Writen by Hugo Raymond

Buying Overseas Property an insight into the common misconceptions Janet and John Part Two

In part One we left Janet and John planning to embark on their two week buying trip to Spain searching for their new home abroad. They really had not decided exactly what their budget was. The day of the trip was fast approaching and so they sat down one evening at Dinner and discussed the contentious issue. Janet was quite convinced they needed in excess of 200,000 Euros to finance what she had already seen on the net. John was loathe to dip into pensions, SIP and savings, even though he could, and Janet of course knew that! However after a good Dinner was enjoyed a budget of circa 200,000 Euros was agreed. The journey began. Once they had arrived in Valencia they made their way to their Hotel and called the first agent on their list to make arrangements for the next day. The agent was out and did not return their call till much later. Regretfully John had decided not to email his travel plan ahead and did not give any of the agents a potentially suitable property from their web sites, as an indication of his preference. Luckily the agent had a slot the next day and after John had explained on the phone what he was looking for off they went on the first inspection tour. It was a disaster. The agent showed them 6 properties. It took most of the day to respectfully trudge around the properties that the agent had thought might be suitable from the description John had given them. It was a quiet Dinner that night and Janet and John were starting to re think exactly what their criteria for a property was and how best to convey the information to an agent and as quickly as possible. They had made a classic error.

Had I been asked I would have told them to tell the agent in advance when you are coming. Most of the re sale houses belong to Spanish people who work for a living and need some notice of a visit, unless the agent has the key. The latter is unlikely as you will discover the market is fragmented and many agents have the same property on their books! Go to a recommended agent. Always look up a potential property on the agent’s web site and communicate this to the agent in advance of your visit. Quite often the property you want is already sold. However the agent at least can see exactly what it was you think you might want and can look for several other similar properties. Don’t just say “We want a house with 3 bedrooms near Callosa”.This will simply open Pandora’s Box. Should the agent show you a property which you know immediately you are definitely not interested in, tell him! Don’t waste your time or his anymore than you have to.

The next day the second agent took them out. John was quite quick to point out one or two properties in the agent’s portfolio so that they didn’t waste too much time. Another long day ensued looking at 6 houses, but this time they found one they liked and although very tired enjoyed a better Dinner. On the third day a funny thing happened to Janet and John. The property they liked yesterday was shown to them again by a different agent. So what was so funny about that? Well as John explained to me, the price yesterday was 235,000 but today the same property on this agent’s brochure was 25,000 Euros cheaper! They were astounded, but as the house was empty when they were shown around for the second time they said nothing to this agent. However the conversation over Dinner was explosive in comparison to the silent conversation on the first night! Janet and John were learning hard and fast, but did they have all the answers? Who would help them find their way? In Spain as in most overseas countries, it is possible for many agents to be involved in the sale of one house. Firstly there is the “Correador”. He is the man who originally finds the property and arranges the price the owner actually expects to receive. He then informs his agents that he has found a new property. He will normally keep the key and escort the agent and the client to the property. Each agent will visit the property and make their own photos and description so the properties appear to be different on competing web sites. Then some agents without a web site will “Lend” their CD of properties to a number of other agents. This can sometimes leave a line of agents with an interest in earning a commission from the sale of one property. In exceptional cases there are reputable agents who will be brought a property directly by the owner who will give it to him on an exclusive basis. The problem is this rarely happens.

What to do? Janet and John decide to have a day off. Good thinking! The day after, they return to the third agent and ask to see some more property similar to the one they prefer. They spend another whole day searching the countryside from Cullera to Gandia on the relatively unknown Costa Valencia. John’s research has shown him that this is a quiet coastal area in comparison to the Costa Blanca further south. It has a risk of greater rainfall and is therefore much greener and lusher with tree lined landscapes. It is colder in winter but John might still be sweltering in August and swimming late into October. There are many coastal and typically Spanish inland villages. Properties here could represent good value for money. They have now seen 5 houses during the course of the morning and are approaching the area to the north of Gandia, tired and hungry. Jose Miguel has become their favored agent and has just taken them to a local Tapas bar to refresh them. In the afternoon he shows them another 2 houses and this time they really find one they love. This house not only ticks all of John’s boxes but offers Janet much more, a BBQ house, large swimming pool and an annex in the garden for visitors. Of course Jose Miguel has left the best to last and cleverly increased their aspirations and the bad news is, it’s not within their budget. John might now need a local mortgage to top it up. Oh dear, poor John. Janet and John tell Jose Miguel that they really love this property. Big mistake! He immediately informs them that there is another agent with another client interested in the same property. Of course a reserve deposit of 6000 Euros given to him now, will secure it for them. What happens next? Is Jose Miguel really a crooked agent? Does John part with the dosh? Will Janet suffer from “Sun sickness” and persuade John to pay the reserve with his Amex card?

Read installment Three tomorrow.

hugoraymond@mypropertypal.com

http://www.mypropertypal.com

Will Serviced Apartments Become the Norm for the Businessmen and Travelling Families to Asia?

Writen by Neil Simmons

The concept of a furnished apartment with cleaning services is nothing new, but over the past decade or so the serviced apartment with its superior features and lower costs have become increasingly more luxurious and sophisticated, particularly in Asia.

The serviced apartment is definately catching on as there are a wide range of luxury serviced apartments in Asia at discounted prices. You can easily browse the internet to compare room rates for a selection of the best locations.

Serviced Apartments are designed for short , medium and long term stay residents, for the individual or family that want high quality of living, with the choice of rooms ranging from studio up to large 3 bedroom deluxe apartments.

Serviced Apartments are ideal for people who enjoy catering for themselves and having their own space.

Particularly in Bangkok, there is high proportion of expatriate personnel and the population is very transient. The demographics of this lends itself well to serviced apartments. Staying in a serviced apartment gives you total freedom to work, entertain, cook, sleep and relax as you would in your own home, without the feeling of being in a hotel room.

Choosing a serviced apartment allows you to easily choose a suitable location, in the heart of the major cities of Asia, with a broad range of services, such as broadband internet, fully equipped kitchens, private parking, international cable and plasma screen televisions, maid service and room service, daily cleaning and linen services, international cuisine, a large pool, health club and lounge and much more, all within a relaxing and elegant environment.

One fine example is the The Ascott, a five star serviced apartment in Sathorn, Bangkok’s central business district. Here they offer luxurious and spacious private apartments complemented with comprehensive services and facilities. This residence is Bangkok’s leading luxury serviced residence and is ideal for corporate housing with the convenience of being located in the capital’s business and commercial district.

In summary, demand for luxurious living is improving every year and is predicted to reach even higher growth in the years to come.

Neil Simmons, formerly of CB Richard Ellis, is co director of Soho Properties (http://www.soho properties.com), a leading real estate agent and location specialist for property in Bangkok.

Austin Apartments For Rent

Writen by Alison Cole

Apartments in Austin are in high demand due to several factors like location of the city, the ideal neighborhoods, the growing economy, the presence of the University of Texas and other educational institutions, and the existence of several major technology companies like Dell and Motorola.

Apartments in Austin come in many sizes, ranging from efficiency types to three or four bedroom ones. There are several apartment communities in and around Austin that house multiple apartments. These communities contain apartments that have all amenities like courtyards, balconies/patios, swimming pools, beautiful landscapes, laundry rooms, window coverings, and clubhouses. Most of the modern apartment communities also have high tech facilities like high speed Internet connectivity, fitness centers, limited access gates with high security features, and business centers. The rents of these apartments range from $500 for a single bedroom apartment to $2500 for a three bedroom apartment, depending upon the facilities and amenities provided and the location of the apartment.

The renting/leasing conditions of the apartments also vary slightly depending on the apartment community. Most apartments require a security deposit that may be anything from $99 to $300. Lease period may range from 6 months to one or even two years/26 months. Some apartments are also available on short term leases of up to 3 months but they are slightly more expensive.

The Texas legislature defines several rights and duties for renters as well as for the residents. For instance, owners should refund the security deposit to the tenant who fulfills lease conditions within 30 days after move out. If the owner fails to do so, the tenant can sue the owner for three times the lease amount. Other important considerations given by the Austin Apartment Association include the provision of smoke detectors for every apartment, a lock on every door, and a latch on every window. The lease conditions and appropriate forms are also provided by the Austin Apartments Association and the Texas Apartments Association. Application for rent or lease involves a credit, income, and a criminal background check. Nobody can be denied access into an apartment on the basis of religion, race, or sex.

The general issues to be considered while taking an Austin apartment for rent are the kind of neighborhood (the crime rate, school system, and amenities in the area); housing priorities (acceptance of pets, extra parking place, floor of the apartment); other amenities within the apartment complex (like laundry, recreation, and health facilities); condition of the property (condition of the building, condition of the grounds and the landscape, etc); security aspects, utilities, and leasing terms and conditions.

There are many professional, and non profit associations in Austin that provide information about apartments for rent. Besides these associations, there are also locators, also known as real estate agents, who help clients in hunting for a good apartment. The Internet is also a great source for finding Austin apartments for rent. There are several websites of locators, which offer very comprehensive information about Austin apartments for rent.

Austin Apartments provides detailed information about Austin apartments, Austin apartment guides, Austin apartment locators, and more. Austin Apartments is affiliated with Home Furnishings.

Prepare Your Rental Property for Occupancy

Writen by Neda Dabestani Ryba

Among your many responsibilities as a landlord, the law provides for a warranty of implied habitability. This means that the dwelling must be considered habitable and any known problems must be fixed before you allow a tenant to take occupancy.

When a tenant vacates one of your units, take this opportunity to perform a walkthrough of the unit to determine its condition and discover what repairs or maintenance need to be done. Here are some of the specific areas that you will need to examine in your property before you accept a new tenant.

Do all the fixtures work properly? This includes faucets, showers, tubs, toilets, and any other fixtures. Make sure that the fixtures do not leak and that they consistently operate correctly. Address any leaks or other problems before you rent out your property. If a fixture is consistently causing problems, it may be easier and even cheaper to replace it to avoid future problems. In addition to providing quality fixtures for your tenants, repairing leaky fixtures can also reduce your water bill. If you pay for your tenants’ utilities and water, this can mean substantial savings.

Have the carpets been thoroughly cleaned? Mold, mildew, and pet stains are considered health hazards, and such problems should be completely resolved before you rent out your property. Diseases such as toxoplasmosis, which is normally found in cat urine stains, can be deadly. Proper cleaning of your carpets will ensure that that your tenants will have a healthy environment. If the carpet has mildewed or there is a mold problem, you may need to replace the carpet.

Have the cabinets, closets, and storage areas been completely cleaned? Mildew and mold can lurk underneath cabinets, especially if you have had a problem with leaky fixtures. You may have to replace a cabinet if the damage is severe.

Closets are one area that tenants frequently neglect when they vacate a property. Make sure that these areas are completely cleaned and that any forgotten property is handled appropriately. You may need to track down your previous tenants to notify them that they have abandoned their belongings. Set a specific reasonable response time, and if they do not respond in that specific amount of time, you may then discard the property. Are the walls free of chips, marks, and holes? Depending on the length of the previous tenancy, you may have to repaint the unit. Any existing holes should be fixed before you rent out the property. If you do not plan to repaint, examine the condition of the walls carefully and make notes so you do not hold your new tenant liable for damage caused by someone else. At a minimum, you should patch any obvious holes.

Do all of the appliances operate properly? Old appliances waste lots of energy, which is a consideration for landlords providing free utilities to their tenants. Replacing old appliances with new models will save you money on energy and repairs and maintenance. Your tenants will appreciate the newer appliances, and your electric or gas bills should be lower as well. Does the unit have lead paint? Most properties built after 1978 do not have lead paint. But if your property was built before that, you need to determine if it contains lead paint. If it does, you must disclose this to your prospective tenants before they move in.

Do all of the doors and windows operate properly? Check all of the doors and windows of your property to make sure that they open and close properly and that they are in good working order. This includes cabinetry, patio doors, and windows.

Neda Dabestani Ryba is a licensed Realtor in Maryland. She is a member of the President’s Circle of Top Real Estate Professionals. She can be reached at (800) 536 3806 or visit her website for more information: http://neda.dabestani.pcragent.com/ Prudential Carruthers REALTORS is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential Financial company. Equal Housing Opportunity.

How School Zoning Affects Real Estate Prices

Writen by Phaedra Hubbard

Most people have heard that school zoning for your real estate can affect the value of your property. This is very true in most cities in the United States, and is generally most noticed in densely populated areas. A large percentage of States have implemented a grading system for schools, to help parents decide where they want to live and in what school zone. What we always do when selling a home or buying a home for a client is to get in touch with the local school board and get a full report. This can be done by writing a letter to the County School Board for your desired area. Inside most School reports you will find a list of various important details that will give you a general overview of student and teacher quality.

The primary focus should be on average Grade Point Average, Dropout Rate and College admissions from the school. In a lot of states like Florida they use a standard grading system, similar to how students are graded. If you are lucky enough to be in a state with a grading system, then you simply have to look at the list to see what the local schools are scoring and you can make a simple decision based on a simple grade.

After figuring out the schools quality, you need to figure out what neighborhoods are zoned for the schools that you like. This can be tricky, in Clearwater Florida for example, they currently have something called school choice. With a program like school choice, parents are required to choose three schools that that would like to attend, and if there is an opening at the school you choose, the student is placed there. If you don’t have a program like school choice, then you simply need to make sure the Realtor you are using gets you the correct schools zoned for each piece of real estate you view. If you are not working with a Realtor, then you need to contact the local school board and have them send you the school zone areas for all the areas you are looking at real estate in.

The affect of school zoning is readily apparent with real estate values in a given area. You will notice that buyers will pay a premium to get into a home with the best school system, or if they have a specialty in a certain area like sports, arts, music or technology. The only way to take advantage of this type of market is to focus on families with school age children or for a family that is planning on having children. The average retiree isn’t concerned with school quality or specialty programs offered at the local schools, because they will not be attending. I would not recommend that you buy real estate specifically for the school system if you are buying it as a long term real estate investment. The reason for this is that schools tend to age, and the top school this year, might be below average in 10 years. If you are only looking for short term real estate investments, then buying real estate within the boundaries of a top school could be very beneficial.

Copyright 2006 Phaedra Hubbard. You may republish this article in its entirety, only if you leave the author’s note & website hyperlinks intact.

Phaedra Hubbard is a Realtor that specializes in Tampa Bay Florida Real Estate as well as Clearwater Florida Real Estate . If you need to sell your home or buy a home please visit our website http://www.myfloridahomestore.com, we offer a free Comparative Market Analysis as well as free MLS Home Search.

Hard Equity Lending, Consider These Creative Techniques

Writen by John Michael

They may ad points!

Typically, interest rates of 10 to 20% per year are common!

Many want an equitable interest. These will vary based on the size of the project and the agreed upon contract.

Hard moneylenders are collateral based and typically require first position on the property.

To boil it down “A hard equity loan is flexible and quick. Because most hard equity lenders are private individuals and not large multistate lenders, they have more flexibility. They can also close more quickly, usually in as few as one to three days. Moreover, most take a quick look at the real property. “

Hard money is not the only way to used “Creative Real Estate Investing” but can be a great source of funding for you to get the deal or you can use some of the other methods listed below:

No doc and low doc loans.
Seller carried second mortgages.
Land contract. Called “contract for sale” or Owner finance.
Credit cards.
Retirement accounts.
Friends and family.
Note buyers.
Get a loan on other property.
Partnerships.

Just to name a few!

There are many creative hard equity programs and techniques such as:

Low starting interest rate = Hard equity loans have higher interest rates than conforming loans. A hard equity loan, however, can have a lower starting interest rate for a certain period, from three months to five years. With a reduced payment for a time period, so you can catch up with other bills.

Long term loans = Most hard equity loans are made for five years. The monthly amortization period may be for 15 years or 30 years, or it may be interest only. Hard equity loans can also be for longer terms, such as 15, 20, 30 or 40 years with no balloon payments.

No payments for a time period = Sometimes you need a break from making monthly mortgage payments. This program may allow you not to have any payments for a number of days at the beginning of the mortgage. This can range from 60 days to the first year. Alternatively, you can have a provision that defers one or more monthly payments to the end of the mortgage. This allows you to use the money for other debts.

Tailored payments = Most mortgages allow for equal monthly payments for the entire mortgage. At maturity, the mortgage balance is zero or a balloon payment is required. Hard equity mortgage payments can be tailored to satisfy your needs rather than the lender’s matrix. If you have seasonal employment, then the payments can be larger during the “feast” period and smaller during the “famine” period.

Loans with a lump sum payment = You may benefit from having one lump sum payment at the end of the mortgage. Use this program if you are likely to receive a large sum of money in the future. On these loans, the interest accrues, and the accrued interest and the principal are due at maturity.

Second and third mortgages = Hard equity loans can be a first, second or third mortgage. As long as the loan to value (LTV) and the superior mortgage to subordinate mortgage ratio.

Wrap mortgages = The benefit of a wrap mortgage is that underlying first mortgage is available when the wrap mortgage is satisfied. The advantage to lenders is that they are assured that the first mortgage will be paid. The interest yield on the transaction also can be enhanced.

Cross collateralized loans = In many cases, the subject property does not have enough equity to support the proposed hard equity loan. But you may have other real property to pledge as additional collateral. With the additional property, a hard equity lender will close the loan because the collateral is adequate. Sometimes, assets other than real estate are acceptable.

Lines of credit = A hard equity line of credit can be established more easily than a line of credit at a bank. The hard equity line of credit can be used and repaid based on needs. It provides money that you can borrow and repay repeatedly under the terms of the mortgage. The interest on the mortgage would be payable monthly. The borrowing and repayments could continue until the mortgage matures.

Future advances = Often, a loan closes and you need more money soon after. Some costs can be eliminated if the first closing takes into account the possible need for additional money. The mortgage can provide for a future advance from the lender for an additional amount that is agreed to at closing.

Portable loans = When you sell a home, most generally buy a new home. Both homes probably have a mortgage. If the mortgage could be transferred from the old property to the new property, you can save time and money. A hard equity lender may let you transfer the mortgage from the old property to the new property.

Combination mortgages = Hard equity loans can be as creative as you can make them. A hard equity loan may contain elements of two or more of the above techniques.

I suggest you read “HOW TO BE A SUCCESSFUL HARD MONEY BORROWER” Download your free copy at http://trice84.tripod.com/gifts/Jones0804.pdf

A great search tool for “Hard Money Loans” can be found at: http://www.scotsmanguide.com/default.asp?ID=1223

Good luck on your success as a real estate investor!

John Michael is an active real estate investor and provides coaching for real estate investors at http://www.jmichaelrei.com.