Clouds on a Title

Writen by Martin Lukac

Before you close you need to be sure that there are no clouds on your title. It is at closing that you will be handed the title from the previous owner, one that has no liens and that is marketable and one that has no clouds. If your title did have a lien it would mean that money was owning, money that some could try to hold you responsible for. In fact those who are owed money could foreclose on your new property if the debt is not paid off. If you are going to pay this amount you can do it at closing.

There is more than one kind of lien that could cloud your title and keep it from being marketable. A construction lien, which can also be called a mechanic’s lien is a debt that is still owed to the contractors that build the house. This same type of lien can be on the title from suppliers if they have not been paid. In fact, a lien could even be placed upon the owner’s property if the contractor fails to pay the subcontractors for any of their work.

How a lien is handled will differ from state to state. In many states the person or company that is going to file the lien must notify the owner while in other states this is not at all necessary. As an owner you will need to talk to all of the subcontractors and suppliers yourself in order to get them all to sign a release of lien form. Only then should you even consider paying the contractor for their work. This is the best way that you can protect yourself from any liability.

There are other common types of liens like divorce liens. These liens come up in situations where a couple gets divorced and one of the pair continues to live in the house for a while. When they do get around to selling the house they might try to keep all of the money for themselves. If this occurs then the other party can put a lien on the property in order to try to get their share of the money from the sale. Another lien that is somewhat related to this one is a child support lien. If one parent is not paying the support that they should a lien could be placed on the property, which will keep it from being sold before the debt has been paid in full.

You will also find liens on condos that are associated with the homeowners association. IF the owner had not paid his or her dues there could be a lien. TO find out if there is on the condo you wish to purchase you will have to make sure that your escrow agent gets a certificate of payment from the association itself.

If you find a cloud on your title and you do not know what to do about it then you need to contact your lawyer. He or she will be able to help you determine if it is your responsibility or not as well as help you to clear the cloud once and for all.

Martin Lukac, represents http://www.RateEmpire.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! Visit http://www.RateEmpire.com today.

What Does the Term "Market Value" Mean?

Writen by Jeanette Joy Fisher

When a real estate agent talks to you about listing your home, you’ll hear a great deal of talk about “market value,” but just what’s meant by that term? In this article, we’re only going to be considering your single family home, because different standards and calculation methods apply to commercial and investment property, but let’s examine what market value is, and how it’s determined.

Market Value of Single Family Homes

Put simply, a home’s market value is the price at which it should sell once it’s put on the market for a reasonable amount of time, which generally means thirty to ninety days.

Within that definition are two main variables that affect a home’s market value: the house itself, and the time period during which it’s to be sold. First, let’s look at the house itself. Every home sits in some kind of neighborhood, whether it’s in the middle of downtown or way out in the country, and the location of a house will have a large influence on its market value.

The neighborhood is important, but condition of the house is also an important factor when it comes to determining its market value. The nicest home in the neighborhood normally will have the highest market value, while a house that needs a great deal of renovation will be worth less, even if it’s in the best neighborhood in town.

The condition and location of a home will affect the market value in proportion to how quickly the owner wants to sell it. In order to attract a greater number of buyers and to sell the home more quickly, the price will need to be lower, which brings us to the second factor in the market value equation: time.

Regardless of where it may be located, if a house doesn’t sell with the one to three month marketing period, the chances are that it was overpriced. Even brand new homes, in brand new subdivisions, in the most desirable part of town won’t sell within thirty to sixty days if the price is too high. (On the flip side, if a home sells in a week or less, the chances are that the marketing price was too low. But most of the time, errors in calculating market value are made on the too high side.)

Determining market value is both an art and a science, and a skilled real estate agent, armed with information about the area, other listings, and previous sales, can generally come quite close to a price that will get the home sold within one to three months. After all, it’s their job to help get you the best sales price possible in a reasonable amount of time.

Copyright © Jeanette J. Fisher

Jeanette Fisher teaches home sellers five ways to sell homes for top dollar Fast. Get home seller’s tips and free “Design Psychology for Selling Houses” ebook at http://sellfast.info

Colorado Real Estate Foreclosures

Writen by Jason Murphy

If Georgia is the top state for real estate frauds, Colorado real estate steals the spot for being with the most foreclosures. Colorado has the distinction of having the highest number of foreclosed homes in the nation for the second consecutive month. This is the latest sign that the weak, lower priced housing market continues to plague the economy. The RealtyTrac Inc. report shows that since April, 3,706 homes in Colorado were in state of foreclosure. That translates to a ratio of one of every 494 households in foreclosure. The national average is one of every 1,268 households.

Colorado real estate retained the No. 1 spot even though the rate of foreclosures dropped by 31 percent from March, when 5,392 homes were in foreclosure. There is a disaster driving the high rate of foreclosures, said Mary Wenke, public trustee of Arapahoe County. In April, Wenke’s office opened 436 foreclosures, compared with 288 in April 2005. Wenke insisted adjustable rate mortgages, whose interest rates are starting to rise, will mean even more foreclosures in coming months. The factors driving the numbers include a record excess of unsold homes in the market, homeowners’ huge credit card debts, pre payment penalties, mortgage fraud, and bankruptcies.

Wenke asserts that foreclosures are just stages in a vicious cycle and affected by unemployment. She adds that the foreclosure rates negate the government claims of a stronger economy. The head of Colorado Real Estate Center, Byron Koste affirms the statement by Wenke. Koste says that the rising foreclosure rates should serve as a red flag for the economists that are claiming economic strength. Koste adds that foreclosures are more frequent among entry level housing market. Events like these usually throw real estate businesses off because consumers are more hesitant to buy houses.

However, Cherrywood Properties’ Ben Fielder claims that it is unfair to categorize the whole of Colorado real estate as foreclosure haven. He asserts that the foreclosures are primarily concentrated on the northeastern side of Aurora and Adams County. He even claims that real estate is on a steady rise and that people are more excited than ever to buy their own Colorado home. The only problem he sees is that there are over enthusiastic buyers who get loans and mortgages that they cannot manage.

Whether you decide to buy Colorado real estate or not, it’s up to you. The place is good, with nature and a vast selection of prospective homes. The government also provides good public service. Just mind what Colorado real estate experts like Wenke, Koste, and Fielder have to say do not buy homes you cannot afford. Lenders and banks won’t have second thoughts in taking it back if you can’t pay for it.

For more valuable information on Colorado Real Estate, please visit http://www.cheryljordan.com

Off Plan Investments in Bahia Brazil

Writen by Alexander Willi

Many developers offer interesting payment schemes. They allow you to buy property off plan i.e. before or during construction, when the price is still low with down payments from between 15% and 40% of the property price.

By the time the property is finished, it will command a higher price because of market increases and the higher appeal of a completely ready property. This means investors can ” flip around ” the property to another property buyer. Doing so ,it is possible to gain an increase of 15% to 60% while you have never paid the full amount. Depending on down payment and speed of construction, profits from these deals can range from 40% to 100% per year.

Even in the “worst case” scenario, if the property cannot be sold on completion, the balance to be paid can usually be financed by the developer himself, typically over 4 years or more. Or it may be kept and rented out with the rental income paying off the financing loan. In some cases the investment has grown 100% in one year!

Costa do Sauipe Costa do Sauipe is located some 70 km from the International Airport of Salvador. Costa do Sauipe was opened in Jan. 2001, featuring five hotels a Marriott’s, two Sofitels, a Renaissance, and a Breezes Superclub, plus PGA golf course, spa, equestrian centre, helipad etc. This stretch of coast is very beautiful thanks to a combination of beaches, dunes and lagoons. There are some 15 million square meters of land earmarked for developement.There will be many investement oportunities arising over the next few years.

For more information and selection of properties please contact us:

http://www.bahiareaestates.com/

Negotiating the Sale of Your Home

Writen by Roselind Hejl

Negotiating a successful sale of your home requires an environment that sustains the buyer’s interest and trust during the process. Many of our clients have been very experienced negotiators, and from them we have learned that the goal is to reach a “good agreement” one in which the underlying interests of both seller and buyer are met. The results of a poor agreement may come back to haunt the parties after the closing. Here are some thoughts to consider as you prepare to negotiate the sale of your home.

What do you want to achieve in the negotiation?

Letting the buyer know what you need, in a clear and reasoned way, is the first step toward getting it. For most people, price is the highest priority, and is given the most attention. The buyer’s offer must be evaluated in light of a market analysis, marketing time and buyer responses. This will give you an indication of what a reasonable offer should be. In addition to price, there are other needs to think through. Distinguish between “must haves” and “would likes”. Your interests might include:

Selling at the highest price possible.

Coordinating your move to your new home.

Setting the closing to meet your travel, school or work time frame.

Resolving any repair issues fairly.

Protecting yourself by having complete property disclosures.

Locking in a mortgage loan rate for your new home.

Having no title or survey issues, or solving any that do arise.

Completing your relocation process.

Getting settled into a new home and neighborhood.

Forging a good relationship with a buyer who appreciates your home.

Having no future problems or unexpected issues after closing.

How much leverage do you have?

A big factor in your leverage is the underlying market condition. If you are in a seller’s market you should receive offers at the top of the range. This is especially true if your home is in a hot area and has great appeal. If you have multiple offers, you have very strong leverage! Buyers will make their best offer up front.

If you are in a buyer’s market, and your home has been for sale for many months, you have a lot less leverage to work with. Knowing the buyers’ underlying interests will help you improve your leverage. If you see that they love your house you have some leverage. If their time frame is immediate, and you can meet it, you have some leverage. If you can meet some of their secondary needs, you have some leverage for a better price. If the buyer is a dispassionate investor you have very little leverage.

Be careful that you do not accept an offer that contains a high risk contingency to sell the buyer’s home, a too long option period or a buyer without approved financing. These offers have a down side that may be difficult to live with. Buyers should submit a letter from a lender giving their qualification status.

Understand the Option Period

In Texas, our contracts contain a short “option period” during which the buyer can terminate. We all breath a sigh of relief when the option period is over. In the long run the option period protects you, the seller. It allows time for the buyer to do inspections and answer any open questions. Keep in mind that, for many buyers, taking the first step in a big decision is hard. Once the ball is rolling it is easier for them to stay on track. Action creates commitment. There are subtle pressures to keep the buyer in the deal, such as face saving, and time and money investment.

Is an adversarial or cooperative approach more effective?

There is nothing more destructive to the negotiation process than the adversarial style. Professional negotiators try to preserve the relationship between the parties. The goal is not to reach an impasse in which neither the seller’s nor buyer’s needs are met. Sometimes buyers include a note with their offer explaining why the house is not worth what they are asking, pointing out deficiencies, etc. No one can read a note criticizing their house without a defensive reaction.

In the same vein, your attitude toward the buyer can be effective in solidifying their interest in your home. The negotiation process usually begins with some degree of distrust between buyer and seller. The goal is to move in the direction of trust as quickly as possible.

How do you work with a combative strategy?

Sometimes you have no choice but to work with an adversarial buyer or agent. Their strategy includes: emotional statements, snide remarks, defensive arguments, threats to terminate, ego involvement, and stated positioning. Creative solutions are not likely to be found in this environment. Working with a combative style negotiator requires control of your own emotions. Here are some pointers:

Do not respond emotionally. An angry or defensive response will escalate the negotiation into a no win battle.

Do not argue. Arguing usually positions them more strongly and drags the negotiation process off course.

Do not ignore their arguments. Listen carefully, but do not accept or reject.

Acknowledge the fact that certain emotions are present, without responding in kind.

Strong emotions arouse emotions in others, including fear and anger. The anger may have a source outside of your contract, or it may be a negotiation tactic.

The agent may try an “us against them” strategy . If this happens, write “cover memos” with your responses to the buyer in order to break down the barrier.

Firmly anchor pricing and other points to outside data. Show that your proposals have not been chosen unreasonably.

Do not allow hazy proposals to stand. Put everything in writing. An emotional negotiator will usually produce an unclear agreement.

Offer some wins on some of the terms. Face saving is important. Make your counteroffer as attractive to them as possible. Look for ways to meet their underlying interests.

Remember that they may be qualified buyers who can satisfy your goals.

Is every point in the contact negotiable?

Yes. However, one of the most effective means of coming to an agreement is to rely on consistent standards. For example, it is common in our area for the seller to buy the title policy and buyer to pay survey cost. Using accepted standards prevents buyer and seller from haggling over every point. On the other hand, all points in an offer can be used to help structure the deal.

How do you move in the direction of “trust”?

Most people are fair minded and reasonable. They respond well to respectful treatment and to having their concerns heard. If the seller feels that the buyer and agent are acting with integrity, they will be much more cooperative. Contract negotiation is a sensitive area, and anxiety can be high. Both buyer and seller are under pressure, with future plans at stake. Acting with integrity does not mean that all cards have to be put on the table. It is not proper to discuss your cost basis in the house or urgency to move. It is valuable to develop trust because trust raises the level of cooperation and forwards the negotiation. Here are ways:

Listen and understand what the buyer has to say.

Take their questions seriously and get back to them quickly.

Express appreciation for the buyer’s interest in your home.

Respond within a reasonable time to offers or proposals.

Disclose the property condition thoroughly. This usually has the effect of improving the buyer’s interest.

Reveal some personal information about your use and enjoyment of the home.

Leave out bottles of water for your prospective buyer.

Offer a small gift such as a neighborhood directory, list of service people, babysitters, etc.

Give the buyer first choice on any items your are planning to sell or give away.

Give an orientation to your home to show how to operate your pool, sprinkler, security, etc.

Accommodate the buyer’s requests to drop by and measure the house or show it to relatives. (We know this can be annoying.)

Finding common ground with the buyer can be a very powerful reinforcement of the buyers choice of your home. If you meet the buyer during a visit to your home, make the buyer feel welcome and look for some common interests, children’s needs, etc.

Responding to a “Low Ball” Offer

There is a point at which an offer is so low and poorly considered that it should not be given a response. However, most of the time it is best to respond to offers:

The buyer may be unfamiliar with your market. In his market, greater price reductions may be commonplace.

The buyer may be unfamiliar with the comparable sales for your home. By providing sales data, we can build his confidence in the property.

The buyer may be starting low, but be willing move up.

It may be in the buyer’s background or culture to negotiate aggressively. Once terms are settled, he may be very relationship oriented.

By refusing to counter you are adding a little slap to the buyer’s ego. He may not submit another offer, and you will not see how high he will go.

Responding to a Reasonable Offer

Buyers expect sellers to take an evening to discuss the offer. If an offer is accepted within 5 minutes, the buyer may feel uneasy.

Multiple offers must be presented fairly. You should either disclose to all parties, or disclose to none, that multiple offers have been received. We prefer disclosure to all parties in most cases. This will maximize your ability to obtain the best price. By disclosing that there are multiple offers, you are not “shopping” your contract. Shopping occurs when you disclose the terms of an offer to induce a buyer to submit a better offer. This results in distrust of the process, and possible loss of the buyers. There may be lot of emotion on the table. Future problems will be avoided by a formal procedure for handling offers.

Roselind Hejl, CRS, is a Realtor with Coldwell Banker United in Austin, Texas. Her website: http://www.weloveaustin.com offers homes for sale, search MLS, buyer and seller guides. “Let Roselind help you make your move to Austin.” Top 25 Residential Agents Austin Business Journal

Top Tips for a Landlord Leasing to a New Restaurant Tenant from Restaurant Consultants, Inc.

Writen by Kevin Moll

Every month, an average of over 90 foodservice licenses are issued in every state. That’s over 4,500 new restaurants going into business every month across this country.

Do you have a restaurant space that you would like to fill with a quality tenant? Certainly there is no lack of tenants out there that would be interested in your site, so how do you go about finding the right tenant? This information was created specifically for Landlords who want to find the right tenant for their property.

When a prospective tenant is looking for a restaurant space, you as the prospective Landlord should know what they’re looking for, and in this order its; a lease they can afford, a site that fits their concept design wise, visible signage space, and parking. Everything beyond this is secondary.

Yes, the quality of the location is of vital importance, but the affordability of the site is paramount. Armed with this information, you should be able to present a sales package to your prospective tenant in terms that they can understand. If you can make the location financially easy to get into, that will give your prospective tenant the extra cash to commit to the other things related to getting the new restaurant off the ground.

In order to protect yourself from an unqualified tenant, there are many questions that you will want answers to. Set your expectations with the prospective tenant upon your first initial meeting. By doing this and listening closely to the answers, you can avoid a lot of potential pain for both of you.

Six factors that can help you select the right tenant:

#1. Create an interview checklist. You will want to cover a lot of ground with your new prospective tenant, and you’ll want to ask relevant questions. Depending on your unique situation, you may have legal restrictions placed on your ability to ask questions, so you will want to review your interview game plan with your legal advisor. This information is meant to be informative only and is not to be considered legal or accounting advice.

#2. Credit worthiness. Let the prospective tenant know that you care about their prompt payment history, and that you will expect them to personally be on the lease. Few restauranteurs will want to personally sign a lease, and it will be important to deal with this matter right up front. If the prospective tenant knows that their personal creditworthiness is of importance to you, you’ll cut right to the chase every time. Are you as a Landlord willing to lease to a company with little or no operating history? Perhaps if you have a space that has been vacant for a while you’d consider it, but you will want a significant amount of financial security up front.

#3. Background check. There’s an old saying that goes something like this, “What has happened in the past is indicative of what may happen in the future”. Your prospective tenant may have a background that may not be spotless. Only you can be the judge of what you are willing to toleratebut don’t forget that old saying. Background checks are inexpensive and can provide a lot of valuable information into the business dealings of your prospective tenant.

#4. Feasibility study. Has your prospective tenant had a feasibility study done or is one planned? This study will evaluate the chances of success of the new restaurant venture, by examining the location and facilities offered (such as: walk in coolers, delivery doors, restroom facilities, and power availability), concept, competition, niche market, financial opportunity, and the overall viability of the project. This study will give you and your tenant the security in knowing that the new restaurant may be the right concept in the right area. If the prospective tenant has not considered a study, and you like what you see from the Landlord perspective so far, you may wish to split the cost of a feasibility study with the tenant, or just pay for it yourself and bill the prospective tenant back over time. The findings are hard hitting, and factors that never may have been contemplated may be brought to light. Most importantly, the Feasibility Study will help identify and confirm the market niche that your prospective tenant is seeking to fill. This is of vital importance both to you and to your prospective tenant.

#5. Business plan. A restaurant business plan is focused on the menu, and everything revolves around it, including revenues, expenses, equipment, payroll projections and all of the other numbers and concepts that will go into a business plan. It is not realistic to think that your prospective tenant has a business plan yet, because the location issue is still unresolved, as it the seating count, and so many other variables. Want to surprise a quality prospective tenant with something great? Offer them a long term lease that includes a business plan that you are willing to pay for (and of course, include in the lease terms). This will set you apart as a caring Landlord who wants the very best for the tenant. Don’t you think this would be just the thing to close the deal? Think about how few Landlords are including a business plan with an executed lease, and you could end up being the Landlord of choice! One of the nice hidden factors in this equation is that as you have commissioned the business plan as the Landlord; don’t you now have the ability to give your input into the concept as a whole? Now, you are not only the Landlord, you have become somewhat of an informal business partner, allowing you a good view of what’s happening in your space without being surprised.

#6. Business team. A restaurant management team not only consists of the owner(s) and the managers, it’s those outside the day to day operation that provide advice, direction and counsel that play very key roles in the success of the new restaurant. Legal, accounting, and restaurant consultant all play unique roles and contribute to the profitability of the operation. Regardless of the experience of the prospective tenant, this team should be in place in the very early stages, and by the time this person is ready to start looking for space, it should be a red flag to you as the Landlord if this team is not together yet.

Norman Vincent Peale once said, “We tend to get what we expect”. Let’s begin expecting a quality tenant and put ourselves in a positive conducive to that goal by using these steps above. Stay focused on the goal of a long term relationship with a profitable tenant.

If you would like additional information on Feasibility Studies, Business Plans, or other aspects of how a Restaurant Consultant can aid in adding value to your property, the author, Kevin Moll is President of Restaurant Consultants, Inc. and can be reached via his website at http://www.restaurantconsultantsinc.com or local Denver at 720 363 0164 or toll free at 1 800 961 6005.

Vital Verifications

Writen by Paul Pratt

Sometimes to get a higher purchase price, a seller will inflate the amount of income a property produces or simply fail to mention all of the expenses actually required to maintain the property. As the buyer, you must protect yourself from this by verifying all of the information you receive on a property.

Often the seller will be completely honest with the information he supplies, yet some important figures are inadvertently left out. For example, this could happen if the seller manages the property himself and does not include a property management fee in the numbers he gives you. The seller may not have kept up with necessary repairs and maintenance on the property, in which case the expenses he supplies may not be sufficient for you to adequately maintain the property. Unfortunately, if the buyer bases his offer on incorrect information, he could lose a lot of money. You must take the information you get from the seller lightly until you have verified its accuracy. There are a number of ways to verify a property’s income and expenses:

Property Operating Statements: These statements are often referred to as Profit and Loss or Income and Expense statements. A good investor will keep records of all the income and expenses produced by his property on a monthly and annual basis. It is a good idea to get the property’s Operating Statements for at least the past three full years as well as year to date. Be wary of falsified information. Many sellers and realtors will falsely advertise a property’s Operating Statements by providing a prospective buyer with a Pro forma. A Pro forma does not take its numbers from what the property actually produced, but instead gives their estimate of what the property should produce. The net income shown by these estimates are almost always drastically higher than what the property is actually producing. The seller or realtor will attempt to justify the estimated numbers over the actual numbers by suggesting that the current rents are low, or if some minor repairs are done the property’s value would increase. No matter what their reasons are, your offer should be derived from the numbers that the property is currently producing. If you are able to increase its value through rent increases, repairs or whatever it may be, the benefit should be yours, not the seller’s.

Schedule Es: A Schedule E is the federal tax form that reports real estate income and expenses. The property’s gain or loss as shown on this form is then added to the owner’s other income to determine his federal income tax obligation. Schedule Es will provide the most accurate accounting of a property’s income and expenses. This is because if the seller has left out expenses that he has paid on his property, then his tax obligation will be higher. Because no one wants to pay more in taxes, they do not forget to include any of the applicable expenses. A seller may confess that he added in more expenses or recorded less income than there really was in order to lower his tax obligation. No matter what is claimed, you need only go by what is established on the Schedule E. If the seller lied on his tax returns, then a lower purchase price for his property may be the consequence. Don’t take any risks by going on someone’s word alone.

There are expenses that are sometimes not included on the Schedule E that you must add when analyzing a property’s income: property management, yard maintenance, and snow removal. There are also some expenses on the Schedule E that you can exclude: depreciation, interest, meals and entertainment, and travel. In reviewing the Schedule Es, request copies of at least the past three years. Beware of continued drastic declines in rental income over these years. This could indicate an unfavorable change in the market or the area’s economy. If there is such a decline, try to determine its cause so that you can more wisely proceed with or terminate the analysis process.

Not all investors use a 1040 Form Schedule E to report their real estate income. If they own their property in a corporation then they will not use this form. If this is the case, you still want to analyze the same information that would be reported on a Schedule E. You can do this by requesting from the seller copies of all tax returns relating to the property and gathering the information from them.

Utility Companies: By calling the utility companies, you can find out the property’s exact utility expense history.

County Tax Assessor’s Office: The Assessor’s office has on record all property tax obligations, as well as any unpaid property taxes.

Lease Agreements: By reviewing the current leases, you will know the exact amount of rent that the property currently generates.

Market Rents: Even though a property may be currently receiving a certain amount in rents, it is still possible that these rents are not fair market rents. If a property is rented abnormally higher than the fair market rates, a new buyer will struggle to get them rented for the same amount when the current leases expire. Familiarize yourself with current market rents so that you can make the appropriate adjustments to your offer.

Insurance Company: Insurance rates will vary from client to client and company to company. Because of this, you cannot assume that your insurance rate for a property will be exactly the same as the current owner’s; however, they are usually fairly close. Call around and price rates from different companies to find the best one for you. Make sure to compare similar plans. If the coverage being offered is not the same, then the rates will be different. You need to compare rates for the same coverage. Make sure that the company you choose not only has competitive rates, but is also a well known, reputable company.

We recommend that you use all of these methods to verify a property’s income and expenses. You do not need to obtain and review this information prior to “tying the property up.” You can use a separate addendum to request this information and make the purchase and earnest money agreement contingent upon your approval of it. You will need to state the amount of time you will have to review this information and to back out with all earnest monies returned to you if the information is not satisfactory to you. If it is not, you can either back out entirely or renegotiate the purchase price.

Our team’s diverse backgrounds and investing experiences include a high school teacher, a college drop out, an MBA graduate, a waiter, a secretary, a real estate agent, a banker and a stay at home mom. Despite our diverse backgrounds, we all made the decision to truly change our lives. Although our starting points couldn’t have been any more different, we each discovered that our journey toward financial freedom began with real estate.

Whether you are an experienced investor with excellent credit and money to burn or a beginner with poor credit and no cash to spare, MYreiTEAM will construct a personalized investment plan for you that will maximize your profits and help you reach your financial dreams. Our program is so incredibly successful because the individual is considered before suggesting a course of action. So don’t delay, go to MYreiTEAM, and discover what you need to do in order to capitalize on the real estate revolution.

A Guide to Buying a New Home

Writen by John Mussi

If you’ve decided to make the leap from renting a home to owning a home, you might be a little overwhelmed at the prospect of shopping for homes and applying for mortgage loans.

While mortgage loans can seem a bit confusing at first, you’ll find that they aren’t nearly as bad as they might seem once you’ve taken the time to learn more about the mortgage loan process.

While this is by no means to be considered a complete list of everything that might come up while shopping for a new home, you’ll find below a brief guide to the process of shopping for a home and applying for a mortgage loan.

Searching for a home

The first part of buying a new home is, obviously, finding the home to buy. While there are obviously a large variety of homes available on the market today, it’s important to make sure that you stay within the range of what you can afford. After all, you’re going to be making payments on your house for years don’t get in over your head before you even get started.

You should also begin figuring how much of a down payment you’re going to be able to make, since the larger your down payment is the lower your monthly payments will be.

Realtors vs. direct sellers

You may wonder whether it’s better to buy a house that’s up for sale from a realtor or one that’s being sold directly from the homeowner. There are several factors that can be brought into consideration when comparing the two, but the bottom line is that the realtor has the financing contacts to help you along and knows the real estate business much better than you do.

Discussing your options with realtors early on is also a great way to find out which properties are for sale as well as about how much the monthly payments on a mortgage will be for each.

Mortgages

When it comes time to take out a mortgage loan, you’ll find a lot of options presented to you. The term of the mortgage can vary greatly, though most mortgages are for between 15 and 30 years.

You also might have to choose from a variety of payment options ranging from standard payments to balloon payments in which you begin with smaller payments and have a larger sum to pay at the end.

You should also take into consideration other expenses such as closing costs, insurance, and taxes before deciding how much you can afford to borrow.

A realtor or financial attorney can assist you in making these decisions as well as working you through the actual mortgage and purchase process.

Refinancing your mortgage

After you’ve been making payments for a few years and have paid off a significant portion of your mortgage, you might want to consider refinancing to make repayment of the remaining debt that much easier. Refinancing can allow you to use the equity that you’ve built up in your home to secure you a new loan, which is used to pay the outstanding balance on the original mortgage loan.

The refinancing loan will have a new loan term, a new (and hopefully lower) interest rate, and a much smaller amount to repay than the original mortgage meaning that you’ll be able to enjoy a reduction in your monthly payments.

This can not only speed up paying off your house, but can also give you a little more money each month to do with as you please.

You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Privacy Issues in Real Estate

Writen by Luigi Frascati

Canada has two federal privacy laws, the Privacy Act and the Personal Information Protection and Electronic Documents Act (PIPEDA). The Privacy Act imposes obligations on some 150 federal government departments and agencies to respect privacy rights by limiting the collection, use and disclosure of personal information. Individuals are also protected by the PIPEDA that sets out ground rules for how private sector organizations may collect, use or disclose personal information in the course of commercial activities.

Initially, PIPEDA applied only to personal information about customers or employees that was collected, used or disclosed in the course of commercial activities by the federally regulated private sector, organizations such as banks, airlines, and telecommunications companies. The Act now applies to personal information collected, used or disclosed by the retail sector, publishing companies, the service industry, manufacturers and other provincially regulated organizations. Real estate is, of course, one sector of the service industry.

Of all the Provinces in Canada, British Columbia is possibly the strictest when it comes to enforcing consumers’ privacy rights. The Personal Information Protection Act of British Columbia came into force and effect on January 1, 2004 and applies to all consumers and service industries in the Province, including real estate, banking and mortgaging. Specifically as it relates to real estate, the Act protects all personal information that is collected, used or disclosed, including information regarding a person’s race, age, marital status, religion, employment history, home address and telephone number(s) including cellular telephone number, finances including the purchase or sale of real property, credit history, banking qualifications and political opinions.

The provincial legislation imposes significant obligations on real estate brokerage firms and individual professionals, pretty much in line with the fiduciary duties and obligation contemplated in agency relationships. Below is a synopsis of the most important obligations:

[ ] Designation of a ‘Privacy Compliance Person’ - Since companies are simply legal entities and cannot enforce compliance with the Act, each brokerage firm must designate an individual who is personally accountable for the firm’s compliance with privacy regulation. This individual needs not be a real estate licensee. A non practising, non licensed owner or shareholder, for instance, can serve as a Privacy Compliance Person. This individual must be proficient with all facets of the Act and is in charge of educating staff and manage inquiries and complaints.

[ ] Identification of Purposes - Whether in the process of introducing a Listing Contract or drafting an Offer To Purchase, the real estate professional has an obligation to clearly identify and explain to each individual why and how there is a need to collect and use that individual’s personal information. Furthermore, the real estate professional has an obligation to explain why, how and to whom he may wish to disclose such information.

[ ] Limitation of Collection, Use and Disclosure - The real estate professional must not collect, use and disclose more information than what is reasonably necessary under the circumstances. Moreover, there is an obligation imposed on the Realtor not to collect, use and disclose personal information for any purpose unless the individual has consented to that purpose.

[ ] Destroy Information - Personal information must be destroyed once it is no longer needed for the purpose for which it was collected. One notable exception is Contracts of Purchase and Sale, which must be stored for two years but only for review purposes by pertinent real estate licensing authorities.

[ ] Provide Access - Individuals are guaranteed access to their own personal information for purposes of review and amendment thereof.

[ ] Provide Recourse - Procedures must be implemented to receive and respond to complaints and inquiries.

When it comes to enforcement, the Legislation establishes a procedure that empowers the British Columbia Information and Privacy Commissioner to investigate - including auditing - an organization. The Commissioner has the power to issue orders which are binding on firms. Failure to comply with the Legislation can result in penalties up to CAD $100,000 as well as civil damages and criminal charges.

Privacy is an issue taken very, very seriously in British Columbia.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton Centre Realty in Burnaby, BC.

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