How Vacant Properties Turn a Short Sale Into a Treasure Hunt

Writen by Deb McMillan

Every neighborhood has them. Every property investor is intrigued by them.

Drive through the streets of your town and you’re likely to see them, too. Homes without people to fill them often seem like an investor’s dream. While they certainly can yield a handsome profit, be prepared for a frustrating (and exciting!) short sale experience - getting a deep discount on the amount of the mortgage owed when you buy a house before it gets sold at the sheriff sale.

One of the most difficult situations to deal with in short sale investing is, in fact, the vacant property. An empty home does not mean an investment is impossible. It can, however, be a bit complicated. What is so dangerous about this type of investment is the misconception that a vacant property is fair game to any investor who comes along.

That could not be further from the truth.

The most important thing to keep in mind during a short sale is that even though the owners are in financial trouble, even though they are not paying their mortgage, and even though they may not actually live in the home, their name is still on the deed and they are still legally the owners. This means that before you even consider dealing with the bank you must have their permission.

This is normally an easy process, as the sellers are usually more than willing to cut a deal that saves them from foreclosure, almost always at NO additional cost to them. Many of these sellers owe more on their loans than the property is even worth. That gives the short sale investor a major advantage, yet one problem remains: You have to find them first!

An absent homeowner could be anywhere. They could be with a relative or friend, and their current residence may be listed under another last name. There may be a separated couple involved, which can add to the complications. Either way, you need to find them. You cannot call a bank and negotiate a short sale without the owner’s permission.

Vacant properties can be a worthwhile investment, however you must be willing to put in extra time and even experience a little extra anxiety. Even after you’ve located a seller and negotiated with the bank, the deal is not complete until the seller arrives (and signs) at closing.

Don’t eliminate the idea of a vacant property from your future investments. They are often excellent deals and ultimately worth the extra time.

I don’t know if it is always possible to find these elusive sellers. Nevertheless, I do know that if you are bit on the adventurous side and you don’t mind a little investigation with your investment, the vacant property short sale is right for you!

Deb McMillan, OPHP, CMI, is a real estate investor and writer living in Hamilton, Ohio. She has written a home study course on Short Sale Success Systems, which teaches investors how to get deep discounts from the bank when buying pre foreclosures. She has been investing in real estate since 1986 and buying, selling, and teaching short sale strategies since 2000. In Deb’s home study course and seminars, you’ll learn how to talk to sellers to get them to do what is necessary to save their credit. In addition, you will become familiar with bank negotiation strategies that will lead you to incredible savings when buying real estate. You will also learn about bankruptcy and what you can and can’t do once a homeowner files. That, and so much more knowledge that will help close your deals awaits you! Log on to http://www.shortsalesqueen.com for more information and a free report.

How to Choose a Capital Provider and Navigate Commercial Capital Markets

Writen by Mike Myatt

Financing a commercial real estate transaction is no longer a simple matter. Now, there are many considerations that must be evaluated when selecting a capital provider.

In order to increase project velocity, improve operating efficiency, conserve internal capital, increase leverage and lower the overall cost of capital, it is essential that a sponsor develop an integrated capital formation strategy surrounding acquisition, refinance and development initiatives.

Among the many things those commercial real estate borrowers in today’s marketplace need to address when seeking capital are:

The selection of the appropriate capital provider;

Level(s) of the capital structure to be addressed;

Control provisions;

Rate, term, pricing and structure;

Closing time frame;

Inter creditor or other multi party agreements;

Post closing servicing issues;

Certainty of execution;

Recourse provisions;

Exit and pre payment options;

Operating considerations;

Third party requirements;

The effect of the capital acquired on tax, balance sheet, future projects or portfolio considerations, and;

A whole host of other value added considerations.

The first thing that borrowers must understand is that all capital providers are not created equal. There is a definite hierarchy within the world of capital providers and understanding the value ads offered by different capital providers is important in choosing a relationship.

While many borrowers believe financing to simply be a commoditized offering, the selection of a capital provider, should take into account far more than rate and term considerations. In choosing a capital provider, the goal of any borrower should be to develop a close relationship with the firm that can provide not only the broadest access to capital, but more importantly a firm that offers best in class subject matter expertise, certainty of execution and as many value added benefits and services as possible. Capital providers can most easily be broken down into three groups:

Direct Lenders - Those that lend their own funds

Private Lenders

Commercial real estate investment banks

International, national, regional and local banks

Life Insurance Companies

Credit Companies

Pension Plans

Real Estate Investment Trusts (REIT)

Agencies (Fannie, Freddie, FHA)

Mutual Funds, Hedge Funds, Opportunity Funds

Indirect Lenders - Those that place funds on behalf of others

Mortgage Bankers

Mortgage Brokers

Investment Advisors

Financial Intermediaries

Syndicators

Hybrid Lenders - Those that do both of the above

Certain Banks

Certain Investment Banks

Certain Credit Companies

Certain Financial Intermediaries

Certain Investment Advisors

Once a borrower has selected the appropriate capital provider, it is essential that the capital provider be engaged as early on, and at as high a level as possible. Experienced sponsors realize the benefit of getting their capital provider involved early on in the planning process. Waiting too long to involve your lender will typically lead to a project built with less leverage and at a higher cost of funds. By including your capital provider in the beginning of the project planning process you will end up with a project plan that is built around optimizing capital formation leading to greater project profitability.

Effectively utilizing the entire capital structure, to maximize leverage while achieving the lowest blended cost of funds and isolating risk, is essential to the creation of a solid capital formation strategy. In general, the farther you move up the leverage curve utilizing more leverage in the senior position the lower the overall cost of funds will be. Conversely, the deeper you move down the capital stack utilizing mezzanine or equity instruments the more expensive the cost of capital.

Selecting the appropriate capital provider and engaging them properly will aid in the streamlining of the borrowing process. If borrowers will focus on capital formation as a priority at the early stages of project planning the likelihood of increasing profits in a risk managed environment is high.

For more information about Pacific Security Capital commercial real estate investment bank, please visit http://www.pacificsecuritycapital.com or call 1 800 844 6085.

How To Search New Jersey Property Tax Records on the Internet

Writen by James Bednar

Property Tax Records are available to the public in the state of New Jersey. The public tax databases contain a wealth of important information that will help you become educated home owners as well as potential home buyers. Until recently, searching the tax records involved a trip down to the county records office and probably the better part of an afternoon. Not anymore, with just a few clicks you can search tax records in any of the following NJ counties:

• Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren

The three most popular public tax records databases for New Jersey are:

• Morris County Tax Board
• Monmouth County Tax Board
• TaxRecords.com

Why so many links?
Open them up and take a look. You’ll notice that not every site has the most up to date database, and some sites (like Monmouth and TaxRecords) allow you to search all counties. All of these sites are free to use and contain information that is obtained directly from each county tax board.

How do you search the tax record databases?
The Monmouth and Morris County Tax Board sites are among the easiest to use. On these sites you are able to search by property owner (last name), street name and address, as well as the direct block and lot number. When you search by street name, these sites will list all the properties on that given street. When searching by street name it is recommended that you just type in the name of the street; for example if you want to search for properties on “Main Street” just type in “Main” and search. When searching by name, simply type in a last name.

What valuable information lies in each tax record?
You’ll find the basic information on the property block and lot location, property size in acres, owner name and address, the current property assessment, and the current and past taxes paid on that property. Total assessment price is broken down into two values, one for the land and the other for the improvements. The land assessment value is what the raw land is worth; whereas the improvement assessment value is the combined value of any buildings and structures on that property. The next best piece of information available to you is the “last sale” information. This shows you the last time this property changed deed owners and what the sales price was. This is an extremely useful piece of information that you can use when potentially purchasing a home.

How can this information be used?
If you are a current property owner and you think you are paying too much in property taxes, you can easily find properties that surround your home and determine how much your neighbors are paying in taxes. Some records will also list the square footage of the home and the acreage of the lot so you can see how properties compare to eachother. This information comes extremely handy if you want to appeal your current tax assessment. If you are a potential home buyer, you can see what surrounding houses are worth and what they currently pay in property taxes. This easily lets you know if the home seller is charging a fair market value price for their home.

James Bednar is the chief writer for Northern NJ Real Estate Bubble; a blog dedicated to New Jersey Real Estate.

The Key to Real Estate Investing Wealth

Writen by Steve Majors

“98% of the millionaires in this country made it through Real Estate Investing”, words that inpire millions to get involved in real estate investing, yet lack that special ’secret ingredient’…

The one thing that explains HOW to make those millions in real estate investing…

So, just what is it that the millionaires of real estate investing know that you don’t?

Here is the key to making fortunes in real estate investing, or simply continuing to struggle aimlessly…

The key to real estate investing riches is not in the latest technique, method or system. The key to real estate investing is in patience and research, monitoring the marketplace for a special ‘event’…

Something ‘big’ in the marketplace that triggers rapid growth in the real estate investing market.

Such big indicators as;
new major employment moving into the area
a new factory (manufacturing)
sales center (like a large outlet mall)
entertainment (like a casino)

All trigger worthy examination as ‘events’ in real estate investing.

Other events that affect your real estate investing include sporting arenas, theme parks, even a new airport on the ‘outskirts’ of town…

All merit further investigation because they trigger fluctuation in the real estate investing marketplace.

When such events occur, there is a sudden rise in the demand for affordable housing in the area, rapidly affecting the real estate investing market.

Not only will the workers at the ‘event’ location need homes, there is also a need for housing from others ‘customers’ that simply want to be near this new location.

As the ’support’ base grows for this ‘event’, the need for additional housing grows as well.

You see, the ‘base’ also needs support from food stores to shopping centers to car dealers and utility companies the whole thing just grows and grows!

By now you understand that such ‘events’ hold extreme value in the real estate investing cycle.

In fact, following such ‘events’ is the primary key to the number of millionaires that have made their fortunes through real estate investing.

When you monitor these events and take advantage of them early, you grow your wealth very quickly.

This is the simple, secret key to real estate investing wealth.

keywords; real estate investing

Steve Majors The Lazy Investor Profit from Real Estate Investment articles, real estate investing information and news from one of the most creative investors on the planet ~FREE MEMBERSHIP & real estate investing course~ http://TheLazyInvestor.com

Foreclosure Bank Owned Properties Buying At low Cost

Writen by Ernani Uchoa

Foreclosure bank owned properties are an excellent opportunity for anyone who wants to save money on their next real estate purchase. Whether you are a homebuyer or a foreclosure homes investor, foreclosure bank owned properties allow you to buy properties at a fraction of their market value. In fact, foreclosure bank owned properties are priced at up to 5% to 50% off their market value, simply because of the way you can buy and sell foreclosure bank owned properties.

Quite simply, foreclosure bank owned properties are homes that have been repossessed by a government agency or lender due to non payment of the mortgage. In many cases, the lender or agency simply wants to get rid of foreclosure bank owned properties quickly - even if it means selling at a low price. Upkeep of foreclosure bank owned properties costs more than selling them cheap. The second reason why foreclosure bank owned properties are sold at below market value has to do with their condition. In some cases, the former owners of foreclosure bank owned properties were in financial trouble before their home was seized, meaning that some repairs have not been made. This disrepair pushes the price of foreclosure bank owned properties down further. In some cases, foreclosure bank owned properties require little more than a coat of paint and some cleaning - but these simple and inexpensive changes can save you thousands.

Pushing the price of foreclosure bank owned properties down further

Even though foreclosure bank owned properties are generally sold at prices below market value, this is not always the case. In order to get the best deals on foreclosure bank owned properties, you need to be prepared and shop wisely. Your first step is to find the right foreclosure bank owned properties. Once you find some foreclosure bank owned properties you like, though, you still need to research.

Researching foreclosure bank owned properties can help you tell the deals from the duds. You cannot let emotions rule your purchase, and you cannot assume that all foreclosure bank owned properties are sold at below market value. Instead, you need to do all your math on paper, to determine how much you stand to save. You can do this simply by:

Hiring a professional assessor and inspector to examine the property for you. Get a market value for the home and an estimate for the repairs that need to be done. Find out how much homes in the same neighborhood sell for as well.

Figuring out the total costs of any foreclosure bank owned properties you are considering. For each home you consider, determine your closing costs, actual house costs, incidental costs, and financing costs.

Determining what you are using foreclosure bank owned properties for. Whether you are looking for foreclosure bank owned properties that are investments or a home will determine which foreclosure bank owned properties are deals for you. If you are seeking a home, look for foreclosure bank owned properties in areas you would like to live that have the amenities you want. These foreclosure bank owned properties you are considering should save you money on your home so that you can enjoy equity fast. If you are looking for an investment, make sure that you will get at least 15% or more in profit through renting or selling, and remember that many foreclosure bank owned properties allow you to earn more on your investment than that.

Ernani Uchoa is the writer of foreclosuredeals.com Find more bank owned articles at http://www.foreclosuredeals.com

Home Inspections: Get Your House in Order

Writen by John McQuiggan

Roughly 80% of home sales today involve a home inspection before settlement. Buyers want to know what they’re buying. And that means sellers often face requests for major repairs, price cuts or certifications after an inspection.

It doesn’t have to be that way. One way for sellers to lower their risk is to hire a qualified home inspector before they put their home on the market. A pre listing inspection alerts sellers and their agents to issues that are likely to come up in a buyer’s home inspection. Then they can decide on their timetable and budget what to do to get the home in shape to sell quickly and command top dollar.

Even without a pre listing inspection, sellers can do many things to minimize surprises after a buyer’s inspection. Here are 10 tips based on issues that come up frequently in home inspections.

Many of these steps are simply good home maintenance. Congratulations if you’ve been taking them all along. If not, taking them now could save you money, increase your sale price, and spare you a lot of aggravation.

 Heating & cooling. Have your systems professionally cleaned, serviced and certified for safe operation. This is particularly important for older systems. Keep a record of the service visit. And if there’s an air filter, make sure it’s clean. That’s a sign you’re taking care of the system.

 Water heaters. They last 10 years on average, and a home inspector will flag one near or beyond that age. If your heater’s getting elderly, make sure it’s not leaking or just producing lukewarm water. Also check for a drain tube from the safety valve on or near the top of the tank. A handy homeowner can install one for about $10; or hire a good handyman or plumber.

 Roofing. You know this: If it leaks, get it fixed. Also get a roofer’s opinion if you see missing, curling, cracked or broken shingles on a sloped roof. On flat roofs, trouble signs include poor drainage (look for “ponding” of water on the roof) and “alligatoring” (deep cracks) in the roofing material.

 Drainage. Be sure rain gutters are properly sloped and clear of debris, downspouts are connected, and extensions or splash pans carry runoff at least 5 feet away from the house. If possible, grading should direct water away from the house, too. These are the easiest ways to prevent or minimize

 Water in the basement. Sometimes it’s not preventable, but it can be managed. Besides following the drainage recommendations, check for seepage through foundation cracks. These can be sealed. If you have a sump, make sure the pump works. Where does it discharge? Be sure the water drains far from the foundation, so it doesn’t seep back inside. And if the basement’s damp, consider a dehumidifier.

 Crawlspaces. An inspector will want to see a vapor barrier over dirt floors and will check for water penetration, unsafe wiring, moisture and insect damage to wood and insulation, and water pipes in danger of freezing. You should, too. But be very careful or hire a pro; crawlspace inspection can be dirty and dangerous work.

 Termites. If it’s been years since your home was checked for wood destroying insects and the damage they cause, it’s time for another inspection. A “clean” report or a record of recent treatment gives you another attractive selling point.

 Plumbing. Got a leak under the shower? Wobbly toilet? Leaking soil pipe? Corroded trap? Clogged drain? Home inspectors check for these; you should, too. Hire a plumber or handyman for anything you can’t handle yourself.

 Electrical. Have you piggy backed an extra circuit or two onto the circuit breakers? Do extension cords run above the drop ceiling? Are wires hanging out of junction boxes? Do outlets near sinks lack ground fault protection? These are hazards that a home inspector will flag. Most can be corrected easily by a licensed electrician. This is NOT work for amateurs.

 Fireplace & flue. Fireplaces and flues should be swept and inspected at least every few years some more frequently to ensure safe ventilation and prevent fires. Have you consulted your chimney sweep recently?

One bonus suggestion: Keep records of work, service, warranties, inspections and certifications on your property. These can be great selling points, and they could answer questions and alleviate concerns after a buyer’s home inspection.

Best of luck in selling your home!

©2006 John McQuiggan / Good Move Home Inspections, Abington, PA / www.goodmoveinspections.com Reuse or reproduction freely permitted if copyright information and Web address are included.

John McQuiggan is the owner and founder of Good Move Home Inspections, Ltd., which provides home, termite, radon and other property inspections in Philadelphia and surrounding Pennsylvania counties. Visit http://www.goodmoveinspections.com.

Home Buying Help Online: 15 Websites to Save You Time and Energy

Writen by Brandon Cornett

No doubt about it, there’s a lot of home buying information online. But where do you start? With hundreds of thousands of home buying websites, how do you know which ones to visit?

This article will lighten your load by suggesting some premium online resources.

Finding a Home
A home is a major investment. So in order to find the home that’s right for you, you should use as many different sources as possible. Read the real estate section of your newspaper. Watch out for those “For Sale” signs. And, of course, use the Internet. Here are some websites to start with:

* www.realestate.yahoo.com
* www.Homes.com
* www.Realtor.com

Current Interest Rates
The following websites will help you keep up with interest rates. This is important, because interest rates contribute to the mortgage payment you’ll make each month. As with everything else, visit multiple websites to get an accurate overall picture.

* www.interest.com
* www.money.cnn.com/rates
* www.bankrate.com

Mortgage Calculators
Online mortgage calculators can give you an approximate monthly payment for particular loan amounts. Just keep in mind that these estimates don’t account for closing costs and other variables. Even so, an online mortgage calculator can help you determine where your comfort zone lies, based on monthly payments. Here are some mortgage calculators to get you started:

* www.money.cnn.com/tools
* www.mortgage101.com/calculators
* www.homebuyinginstitute.com/calculators.html

Finding a Home Inspector
Consider the amount of money you’ll pay for a home, and the cost of a home inspection will be miniscule by comparison. But the peace of mind that comes from a thorough inspection is priceless. Here are some websites to help you find a certified home inspector:

* www.homeinspection.com
* www.ashi.org (American Society of Home Inspectors)
* www.nahi.org (National Association of Home Inspectors)

Real Estate News
Keeping up with real estate news will help you understand the market you’re entering. You can better prepare for the home buying process when you know what’s going on in your area. Here are two websites to start with:

* www.inman.com
* www.money.cnn.com/real_estate

A Complete Home Buying Resource
The resources listed above will help you learn about individual topics. But where do you go to learn about the entire home buying process? HomeBuyingInstitute.com has hundreds of helpful articles across 12 home buying categories. You’ll also find real estate news, mortgage calculators, a home buying glossary and more!

* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author’s note, and active hyperlinks.

About the Author
Brandon Cornett is the editor of HomeBuyingInstitute.com, the Internet’s largest library of home buying tips. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com

Time Gentleman Please

Writen by Helen Rowe

Not a call you hear in this area, but the subject of time causes so many comments. Some of the more typical remarks that are aired in my office are about business opening hours. “The shops shut by the time I get to them”. Avoiding the reply, “Try an earlier breakfast or a later lunch and shop after 5″. I explain the two part working day and how different trades work different hours. Here are some of the comments.

Shop later, oh I can’t do that, I would miss the “soaps”

Can’t do the evenings, we eat at 6.

No I don’t go into that shop they ask you what you want! They follow you around; I feel they think I’m a shoplifter.

I don’t go there, if I don’t know the word for it, I can’t see it to point to.

Restaurants don’t open until bed time.

Why are the shops shut on Sunday