When you bought your home, you offered less than you were willing to pay, right? That's the most common negotiation technique. For experienced investors, however, that's just one little secret among the many more powerful ones. What else can you do?
How To Make An Offer
1. Offer an odd amount, like $161,793. This gives the impression that you know something the seller doesn't. They may think you have a good reason for that particular price.
2. Play dumb. Ask questions, talk slow, ask for help, and never show off your real estate expertise. Sellers are afraid to budge if they think a smarter person may be taking advantage of them.
3. Use the "limited authority" ploy. Say "I'll have to check with my wife (or partner)." It's easier for sellers to accept that you can't do something, rather than the idea that you won't.
4. Refer to precedent. "My father bought his house this way." If the offer is at all unusual, sellers will feel more comfortable if they know it has been done that way before.
5. Ask for things you don't want. This lets the seller win concessions when negotiating. If you can say, "I guess I don't need the refrigerator, if I can get my price," you're more likely to get your price.
6. Be reluctant. "well, I don't know..." Reluctance gets the seller looking for ways to motivate you, and lets him feel like he's won something when you settle the point.
7. Make the offer their idea. "Are you saying you'd like a later closing, and more earnest money? Well let's do it your way, then. I just need..."
8. Get a yes before the offer. "What if I paid your price, but got my terms? Would that work for you?" Even with a few changes, it will be hard for the seller to say no to an offer he more or less already agreed to.
9. Flatter the seller. Flattery has been proven to be worth an average of $1962 in real estate negotiations. That's a joke, by the way, but you know if he likes you, you'll probably get a better deal.
10. Pass over problems, and return to them later. Agree on every agreeable point first. It will feel like the house is sold then, and it will be difficult for a seller to lose the deal over an issue or two that you need to go in your favor.
You can spend a lot of time looking for cheap houses. Why not spend a little time learning how to purchase every home for less, with some smart negotiation?
Steve Gillman has invested real estate for years. To learn more, and to see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com
http://www.choiceofhomes.com/real-estate-negotiation-secrets.htm
Wednesday, September 12, 2007
How Do I Buy A House?
There is no doubt that the market for houses has been on fire recently. More and more people are taking advantage of low interest rates and easy mortgage loan terms to go from being renters to being home owners. With so many people entering the market, it is inevitable that questions will arise.
There are many things to consider when buying your first home. Some of the most important steps to buy a house are:
Learning the home buying process
Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home. Check out the many books in your local library that offer hints to first time home buyers. Read financial web sites on the internet for tips for first time home buyers. You may even want to sign up for a class aimed at first time homeowners. Many towns and cities offer these kinds of classes, and they can be a great source of information for the buyer looking for his or her first home.
Find out the pre-qualified price range
It is important to find out how much you can borrow before you start looking for a home. Talk with several mortgage lenders in your area and get pre-qualified for a particular price range. The mortgage lender will be able to help you determine how much you can borrow based on your annual income. In general, mortgage lenders recommend that all home related expenses, including the mortgage payment, insurance premiums and real estate taxes, do not exceed 28% of your monthly income.
Get Pre-approved for mortgage loan
The next step is to get pre-approved for mortgage financing. This is similar to getting pre-qualified for a price range, but it is a more formal process. You will need to supply proof of your income for the pre-approval process to move forward. Most lenders will want to see income tax returns from the past two years as proof of the income you are claiming.
House hunting
After you have been pre-approved for your mortgage loan, it is time to actually start house hunting with a realtor (find out why you need to find a realtor before buying a house?). Your mortgage lender will give you a letter stating that you have been pre-approved for a mortgage and the amount you are authorized to borrow. You will need to present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search. The real estate agent and real estate company will be much more willing to work with you if they know you can afford the home you are looking at. In addition, sellers will take your offer much more seriously if it is accompanied by a pre-approval letter from your mortgage lender.
Make an offer
Once you have found a home that meets your needs, it is time to make an offer on the property. You will already know the most you can spend from the pre-approval process, and you probably will have your own ideas on what the property is actually worth. In addition, your real estate agent can guide you through the negotiation process and offer procedures. A copy of your pre-approval letter will be presented as part of the written offer. This will ensure the seller that your offer is legitimate.
Negotiation process
If the seller accepts your first offer, congratulations. Your negotiations are over and you're ready to start preparing for your move. More likely, however, is that the seller will come back with a counter-offer. This negotiation process can go on for a short or long amount of time, depending on factors like the motivation of the seller, the local real estate market, and a host of other factors. The real estate agent will be a good guide through the negotiation process. After all, he or she will have been through this process many times before.
Provide copy of Purchase and Sale Agreement to mortgage broker
After the negotiation process has been completed, you will need to present your mortgage broker with a copy of the Purchase and Sale Agreement for the home.
Work to close the mortgage loan
After presenting the Purchase and Sales Agreement, you will need to work with the mortgage broker to ensure you meet all the conditions required for the closing of the mortgage loan.
Home inspection prior closing
Prior to closing, you will want to make sure to have a thorough home inspection performed by a qualified and certified home inspector. A home inspection will protect you from flaws in the construction and condition of the home that are not obvious to the naked eye. Home inspections can uncover things like foundation cracks, termite infestation and other home quality issues.
Hand over down payment
After the home inspection has been performed and the report has come back clean (or all the items uncovered have been repaired), it is time for the buyer to actually hand over the money for the down payment and sign the loan documents.
Collect the house key
After the closing of the loan, the fun part of home buying begins. Your real estate agent will hand over the keys to your new home and you can actually move in and enjoy your beautiful new home. Welcome to moving day!
Andrew is the web owner of Home Buying and Home Selling Guide: How to buy a house and sell house fast!, a website that provides informational guide on home buying, selling house, home mortgage loan, foreclosure home, real estate investment, and more.
http://www.choiceofhomes.com/how-buy-house.htm
There are many things to consider when buying your first home. Some of the most important steps to buy a house are:
Learning the home buying process
Start by learning as much as you can about how the home buying and mortgage application process works. Read as much as you can about buying a home. Check out the many books in your local library that offer hints to first time home buyers. Read financial web sites on the internet for tips for first time home buyers. You may even want to sign up for a class aimed at first time homeowners. Many towns and cities offer these kinds of classes, and they can be a great source of information for the buyer looking for his or her first home.
Find out the pre-qualified price range
It is important to find out how much you can borrow before you start looking for a home. Talk with several mortgage lenders in your area and get pre-qualified for a particular price range. The mortgage lender will be able to help you determine how much you can borrow based on your annual income. In general, mortgage lenders recommend that all home related expenses, including the mortgage payment, insurance premiums and real estate taxes, do not exceed 28% of your monthly income.
Get Pre-approved for mortgage loan
The next step is to get pre-approved for mortgage financing. This is similar to getting pre-qualified for a price range, but it is a more formal process. You will need to supply proof of your income for the pre-approval process to move forward. Most lenders will want to see income tax returns from the past two years as proof of the income you are claiming.
House hunting
After you have been pre-approved for your mortgage loan, it is time to actually start house hunting with a realtor (find out why you need to find a realtor before buying a house?). Your mortgage lender will give you a letter stating that you have been pre-approved for a mortgage and the amount you are authorized to borrow. You will need to present this letter to the real estate agent when you get started. It is important to get pre-approved for a mortgage loan before beginning your home search. The real estate agent and real estate company will be much more willing to work with you if they know you can afford the home you are looking at. In addition, sellers will take your offer much more seriously if it is accompanied by a pre-approval letter from your mortgage lender.
Make an offer
Once you have found a home that meets your needs, it is time to make an offer on the property. You will already know the most you can spend from the pre-approval process, and you probably will have your own ideas on what the property is actually worth. In addition, your real estate agent can guide you through the negotiation process and offer procedures. A copy of your pre-approval letter will be presented as part of the written offer. This will ensure the seller that your offer is legitimate.
Negotiation process
If the seller accepts your first offer, congratulations. Your negotiations are over and you're ready to start preparing for your move. More likely, however, is that the seller will come back with a counter-offer. This negotiation process can go on for a short or long amount of time, depending on factors like the motivation of the seller, the local real estate market, and a host of other factors. The real estate agent will be a good guide through the negotiation process. After all, he or she will have been through this process many times before.
Provide copy of Purchase and Sale Agreement to mortgage broker
After the negotiation process has been completed, you will need to present your mortgage broker with a copy of the Purchase and Sale Agreement for the home.
Work to close the mortgage loan
After presenting the Purchase and Sales Agreement, you will need to work with the mortgage broker to ensure you meet all the conditions required for the closing of the mortgage loan.
Home inspection prior closing
Prior to closing, you will want to make sure to have a thorough home inspection performed by a qualified and certified home inspector. A home inspection will protect you from flaws in the construction and condition of the home that are not obvious to the naked eye. Home inspections can uncover things like foundation cracks, termite infestation and other home quality issues.
Hand over down payment
After the home inspection has been performed and the report has come back clean (or all the items uncovered have been repaired), it is time for the buyer to actually hand over the money for the down payment and sign the loan documents.
Collect the house key
After the closing of the loan, the fun part of home buying begins. Your real estate agent will hand over the keys to your new home and you can actually move in and enjoy your beautiful new home. Welcome to moving day!
Andrew is the web owner of Home Buying and Home Selling Guide: How to buy a house and sell house fast!, a website that provides informational guide on home buying, selling house, home mortgage loan, foreclosure home, real estate investment, and more.
http://www.choiceofhomes.com/how-buy-house.htm
Old House? New House? Weighing Your Options
Maybe it has something to do with a childhood home we fondly remember. Many of us long for old homes built with solid construction, quality craftsmanship and beautiful details. We wax poetic and wistfully recall the hand carvings, plaster walls and eyebrow dormers of homes we’ve known. On the other hand, how do the old homes we admire compare with newly minted models—and what should we consider before deciding which to buy?
Location. Typically, old homes sit on generous plots of land in or near town. The neighborhoods are established and usually more central to schools and shopping. Mature trees and plantings provide shade and beautify the property and neighborhood streets. New homes are generally found in new developments outside of town and homeowners who buy into an early can expect to contend with dust and construction sights and sounds as the remaining phases are being built. Landscaping may be skimpy or nonexistent, but a buyer has the opportunity to design the décor from scratch.
Layout. New homes tend to have a more spacious functional layout with higher ceilings, bigger windows, family kitchens, walk-in closets, and family rooms. Some even have media rooms and come pre-wired for cable and computers. On the other hand, older homes were designed for a more formal lifestyle, which is reflected in the formal dining and living areas and many cozy rooms, including small bedrooms, closets and bathrooms.
Energy efficiency. Those eight-over-eight single pane wood windows add character to an old home, but even with storm windows, they’re not nearly as energy efficient as modern dual-glazed or thermal windows. While most old homes lacked insulation in outside walls and attics, homes built today insulate against high heating and cooling costs. Although the bigger windows, higher ceilings and larger rooms, common in new homes, can also cause high utility bills.
Maintenance. With older homes, upkeep could be more expensive because of older appliances, plumbing and electrical systems—not to mention the roof—may need to be replaced. A turn of the century home may have outdated knob-and-tube wiring, and even a recently built home may have an inadequate fuse box-style panel that falls short of the energy demands of 21st century families. But new homes generally come with warranties that will cover the cost for most major problems.
Price. Older homes are usually less expensive per square foot. In addition the tax structure is more predictable because the neighborhood is already established with amenities that newer neighborhoods are still in the process of gaining, such as schools, police and fire services, and infrastructures (roads, sidewalks, etc.). However, with restoration costs a possibility for older homes, your dollars may very well be spent on the back-end rather than upfront.
If the charm and beauty of an old home wins your heart, hire an inspector to evaluate the home for lead paint, insect and water damage, lead and/or galvanized pipes, outdated wiring, foundation problems and energy efficiency, including windows as well as heating/cooling systems and insulation. After you get the all-clear, you have one last consideration: Does the home fit your lifestyle or would the conveniences of a newer model suit you better? Only you and your family have the answer.
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
http://www.choiceofhomes.com/buying-old-new-house.htm
Location. Typically, old homes sit on generous plots of land in or near town. The neighborhoods are established and usually more central to schools and shopping. Mature trees and plantings provide shade and beautify the property and neighborhood streets. New homes are generally found in new developments outside of town and homeowners who buy into an early can expect to contend with dust and construction sights and sounds as the remaining phases are being built. Landscaping may be skimpy or nonexistent, but a buyer has the opportunity to design the décor from scratch.
Layout. New homes tend to have a more spacious functional layout with higher ceilings, bigger windows, family kitchens, walk-in closets, and family rooms. Some even have media rooms and come pre-wired for cable and computers. On the other hand, older homes were designed for a more formal lifestyle, which is reflected in the formal dining and living areas and many cozy rooms, including small bedrooms, closets and bathrooms.
Energy efficiency. Those eight-over-eight single pane wood windows add character to an old home, but even with storm windows, they’re not nearly as energy efficient as modern dual-glazed or thermal windows. While most old homes lacked insulation in outside walls and attics, homes built today insulate against high heating and cooling costs. Although the bigger windows, higher ceilings and larger rooms, common in new homes, can also cause high utility bills.
Maintenance. With older homes, upkeep could be more expensive because of older appliances, plumbing and electrical systems—not to mention the roof—may need to be replaced. A turn of the century home may have outdated knob-and-tube wiring, and even a recently built home may have an inadequate fuse box-style panel that falls short of the energy demands of 21st century families. But new homes generally come with warranties that will cover the cost for most major problems.
Price. Older homes are usually less expensive per square foot. In addition the tax structure is more predictable because the neighborhood is already established with amenities that newer neighborhoods are still in the process of gaining, such as schools, police and fire services, and infrastructures (roads, sidewalks, etc.). However, with restoration costs a possibility for older homes, your dollars may very well be spent on the back-end rather than upfront.
If the charm and beauty of an old home wins your heart, hire an inspector to evaluate the home for lead paint, insect and water damage, lead and/or galvanized pipes, outdated wiring, foundation problems and energy efficiency, including windows as well as heating/cooling systems and insulation. After you get the all-clear, you have one last consideration: Does the home fit your lifestyle or would the conveniences of a newer model suit you better? Only you and your family have the answer.
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
http://www.choiceofhomes.com/buying-old-new-house.htm
Buy to Let - Buying Property to Let Out
Buying property to let out is serious investment and should be conducted with some equally serious research. Here are some tips to keep in mind when buying property to let:
1 -- Right Property in the Right Location
Ensure that there is sufficient rental demand in the area where the property is located. Take advice from local agents and friends in the neighbourhood on the rent you can expect from a property that size in that area.
2 -- Mortgage options and the hidden costs
The cost of your funds shouldn't be too high if you want to profit from buy-to-let. There are various options offered by financiers for buying to let. Compare the options and the hidden costs involved with each option before finalising with any one banker.
3 -- Miscellaneous Costs
Don't forget to take into account the extra costs that would be needed in taking care of maintenance and insurance of the property.
4 -- Reserve Funds
Should the tenants default on rent or choose to vacate earlier than expiry of the lease deed, then you'd need to have sufficient backup funds to pay for the mortgage installments.
5 -- Choose the right letting agent
You could find a tenant on your own and manage the tenant on your own. Should you choose to go in with a letting agent, look at their reputation in the market. Their charges vary.
6 -- Lease Agreement
Have a lease agreement in place before a tenant occupies your property. Your letting agent or solicitor can help you with this.
7 -- Make sure you have the right insurance
As the property owner you have the responsibility of insuring the structure of the property, including any permanent fixtures and fittings. A range of insurance policies exist specifically for the buy-to-let market.
8 -- Sort out your tax position
Becoming a private landlord may affect your tax position and profits you earn from the property could be liable to capital gains tax, charged at the highest rate of income tax. Consult with your tax or financial advisor to find out the most tax-efficient way of running your buy-to-let.
9 -- Produce a detailed inventory before tenants move in
If you are letting a furnished property, always make sure the tenant signs a detailed inventory of all contents. This will help safeguard against any missing or damaged items that could be uncovered when they leave.
10 -- Always get a deposit
It is very important to get a deposit from your tenants before they move in. This will help to protect you against any damage caused by tenants or a default on rental payments.
http://www.choiceofhomes.com/buying-to-let-rent.htm
1 -- Right Property in the Right Location
Ensure that there is sufficient rental demand in the area where the property is located. Take advice from local agents and friends in the neighbourhood on the rent you can expect from a property that size in that area.
2 -- Mortgage options and the hidden costs
The cost of your funds shouldn't be too high if you want to profit from buy-to-let. There are various options offered by financiers for buying to let. Compare the options and the hidden costs involved with each option before finalising with any one banker.
3 -- Miscellaneous Costs
Don't forget to take into account the extra costs that would be needed in taking care of maintenance and insurance of the property.
4 -- Reserve Funds
Should the tenants default on rent or choose to vacate earlier than expiry of the lease deed, then you'd need to have sufficient backup funds to pay for the mortgage installments.
5 -- Choose the right letting agent
You could find a tenant on your own and manage the tenant on your own. Should you choose to go in with a letting agent, look at their reputation in the market. Their charges vary.
6 -- Lease Agreement
Have a lease agreement in place before a tenant occupies your property. Your letting agent or solicitor can help you with this.
7 -- Make sure you have the right insurance
As the property owner you have the responsibility of insuring the structure of the property, including any permanent fixtures and fittings. A range of insurance policies exist specifically for the buy-to-let market.
8 -- Sort out your tax position
Becoming a private landlord may affect your tax position and profits you earn from the property could be liable to capital gains tax, charged at the highest rate of income tax. Consult with your tax or financial advisor to find out the most tax-efficient way of running your buy-to-let.
9 -- Produce a detailed inventory before tenants move in
If you are letting a furnished property, always make sure the tenant signs a detailed inventory of all contents. This will help safeguard against any missing or damaged items that could be uncovered when they leave.
10 -- Always get a deposit
It is very important to get a deposit from your tenants before they move in. This will help to protect you against any damage caused by tenants or a default on rental payments.
http://www.choiceofhomes.com/buying-to-let-rent.htm
Lease Options vs Rent to Own?
Finding a rent-to-own house is one of the many ways someone with bad or no credit can buy a house. You will often find them called names like lease/options, lease with option to buy, lease purchase, lease 2 purchase, rent with option to buy, rent to own, or rent to buy homes.
There are a few differences between rent-to-own and lease-option agreements, although many people use the terms interchangeably. With a rent to own (or rent to buy) home, the buyer makes an agreement with the owner that part or all of the rent money will go towards the down payment of the home, and at a certain date, perhaps 2-5 years in the future, the renter will purchase the home, using the money that was set aside as the down payment.
There is usually not much money put down in the beginning, outside of what would normally be needed for a rental home, so this is a good way to get into a home for little or no down payment.
Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.
With a lease-with-option-to-buy, a renter signs a lease agreement (often for a shorter period of time, like1-2 years, but it could be longer). The renter/buyer usually pays a sum in cash, usually non-refundable, to the owner in agreement to buy the house at a later date for the price agreed upon. The renter has the option or right to buy the home, so in the end they have a choice and can back out it they want. Some of the rent paid may or may not go towards the purchase price of the home.
This is a technique often used by real estate investors in periods when the interest rate is rising fast. This way they hope to buy the home at a lower interest rate on a later date. In the meantime, they will sublease the home to someone else, who will make the payments for them.
Again, the terms “lease option” and “rent to buy” are pretty much used interchangeably today, so check with the owner to find out exactly what terms they are offering. Or approach an owner with your own offer for renting to own.
If you are a renter who is tired of paying someone else’s mortgage and want to own your own home, this is one of many ways that you can buy a home. One of the drawbacks is that you will still need to purchase the home at a later date. This may be a problem if you have bad credit, because you may still need to qualify for a loan when it is time to purchase the home. If your credit can be repaired in several years, this may be a great way for you to get your home now, and good motivation to clean up your credit for the future.
From the book "Buying a Home When You Have Bad Credit-- 12 Ways to Purchase a House When You Can't Get a Home Loan" by Alexis Dey. © 2005 Mohave Publishing. All rights reserved.
For more ideas on how to buy a house when you can’t get a home loan, look for our exclusive e-book, “Buying a Home When You Have Bad Credit,” which can be ordered only through our site at I-can-buy.com.
For free rent to own agreements, as well as other free real estate contracts and forms to download in PDF format, check out our site at site at I-can-buy.com
http://www.choiceofhomes.com/buying-rent-to-own.htm
There are a few differences between rent-to-own and lease-option agreements, although many people use the terms interchangeably. With a rent to own (or rent to buy) home, the buyer makes an agreement with the owner that part or all of the rent money will go towards the down payment of the home, and at a certain date, perhaps 2-5 years in the future, the renter will purchase the home, using the money that was set aside as the down payment.
There is usually not much money put down in the beginning, outside of what would normally be needed for a rental home, so this is a good way to get into a home for little or no down payment.
Another advantage to a rent to buy situation is that if you compare how much rent money is applied monthly to the home price, even if it is only 25-50%, it will still be much more money paid on the principal of the house than if you had taken out a loan for it. If you look at how much money goes to the principal payment of a home with a typical mortgage loan, you will find that most of your mortgage payment in the beginning is just paying interest on the loan. A rent to own agreement, where the money goes directly to the payment of the home, could be saving you a lot of money in the long run.
With a lease-with-option-to-buy, a renter signs a lease agreement (often for a shorter period of time, like1-2 years, but it could be longer). The renter/buyer usually pays a sum in cash, usually non-refundable, to the owner in agreement to buy the house at a later date for the price agreed upon. The renter has the option or right to buy the home, so in the end they have a choice and can back out it they want. Some of the rent paid may or may not go towards the purchase price of the home.
This is a technique often used by real estate investors in periods when the interest rate is rising fast. This way they hope to buy the home at a lower interest rate on a later date. In the meantime, they will sublease the home to someone else, who will make the payments for them.
Again, the terms “lease option” and “rent to buy” are pretty much used interchangeably today, so check with the owner to find out exactly what terms they are offering. Or approach an owner with your own offer for renting to own.
If you are a renter who is tired of paying someone else’s mortgage and want to own your own home, this is one of many ways that you can buy a home. One of the drawbacks is that you will still need to purchase the home at a later date. This may be a problem if you have bad credit, because you may still need to qualify for a loan when it is time to purchase the home. If your credit can be repaired in several years, this may be a great way for you to get your home now, and good motivation to clean up your credit for the future.
From the book "Buying a Home When You Have Bad Credit-- 12 Ways to Purchase a House When You Can't Get a Home Loan" by Alexis Dey. © 2005 Mohave Publishing. All rights reserved.
For more ideas on how to buy a house when you can’t get a home loan, look for our exclusive e-book, “Buying a Home When You Have Bad Credit,” which can be ordered only through our site at I-can-buy.com.
For free rent to own agreements, as well as other free real estate contracts and forms to download in PDF format, check out our site at site at I-can-buy.com
http://www.choiceofhomes.com/buying-rent-to-own.htm
The Truth About Credit
What you might not know about credit.
Some people don’t know about a loop hole in the credit reporting system.
You probably know that a loan in your name gets reported to the credit bureaus. And this borrowed money shows up on your credit report.
The more you owe on your credit report the lower your credit score will be.
But there is a way to get loans and credit cards that never show up on your credit report.
When you get a credit card in the name of your business, it will never be reported on your personal credit report. So you can get large amounts of cash from the banks I work with everyday and it will never show up on your credit report.
And you can start a business on paper for almost nothing. Just pick out a cool name for your new business and submit it on-line.
That means no matter how much cash you take out in the name of your business, your credit score never drops.
This is the best way most people have ever seen to get cash and use it to buy real estate, because the money is invisible.
Sincerely, Thomas Kish
President of CashFlowExperts.Biz
Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.
Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!
http://www.choiceofhomes.com/truth-about-credit-score.htm
Some people don’t know about a loop hole in the credit reporting system.
You probably know that a loan in your name gets reported to the credit bureaus. And this borrowed money shows up on your credit report.
The more you owe on your credit report the lower your credit score will be.
But there is a way to get loans and credit cards that never show up on your credit report.
When you get a credit card in the name of your business, it will never be reported on your personal credit report. So you can get large amounts of cash from the banks I work with everyday and it will never show up on your credit report.
And you can start a business on paper for almost nothing. Just pick out a cool name for your new business and submit it on-line.
That means no matter how much cash you take out in the name of your business, your credit score never drops.
This is the best way most people have ever seen to get cash and use it to buy real estate, because the money is invisible.
Sincerely, Thomas Kish
President of CashFlowExperts.Biz
Tom is a full time real estate investor. He has purchased and sold over 5 million dollars worth of real estate in less than 2 years.
Tom is an expert in using new business lines of credit instead of cash to buy real estate. There is no one else teaching anything like this SYSTEM of real estate investing!
http://www.choiceofhomes.com/truth-about-credit-score.htm
How To Buy Real Estate - Yes, YOU CAN!
If you want to buy a house but don’t think you can for any of the following reasons, this article is intended to give you correct information so that you can make smarter choices and open yourself up to a world of wealth, possibilities and realistic expectations.
The truth is you are being unrealistic when you believe the following reasons to be true:
I can’t buy property now because…
* I don’t have 20% for a down payment, let alone 5%, let alone even 1%.
* I don’t have any money for closing costs.
* I won’t qualify for a loan (I have poor credit, don’t make enough money,
* can’t prove my income, haven’t been at the same job long enough, etc.)
* The market prices are too high now.
* I don’t want to live in a bad neighborhood and that’s the only place I can afford one right now.
* I can’t afford the mortgage payments with my current income.
* Fill-in-the-blank.
I am here to tell you that you CAN buy property, regardless of any of the above.
In this day and age, there is absolutely NO reason why anyone can’t own their own home. The strict days of the 20%-down-excellent-credit-and-stable-well-paying-job loans are over, replaced by no-down-payment-prior-bankruptcy-and-stated-income loan programs.
With the wide array of today’s diverse lifestyles comes an abundance of opportunities and programs created for each and every possible situation. Businesses need to make money, and the best way to open themselves up to a larger range of customers is to offer services for the vast and varied circumstances of each individual.
Many lenders today offer little to no down payment programs, poor credit leniencies and even no proof of employment or salary requirements (in lender speak, it’s called “stated-income programs” where you simply state your income to the lender without having to prove it with pay stubs, W2’s, etc. This is widely used by freelancers and consultants).
In addition to the countless programs offered by lenders, there are now government grants and (often free) services available for the low-income, low reserve home buyer as well as plenty of programs for first time home buyers. Government programs and many private loan programs also offer assistance for closing costs (the costs required up front to pay for lender fees, escrow & title charges, etc.), with some programs requiring the seller to pay for most of them.
For a list of government grants, go to www.cfda.gov (The Catalog of Federal Domestic Assistance) or www.firstgov.gov (The US Government’s Official Web Portal). Click on “Benefits & Grants” to get to their grants page.
“Ok, that’s great,” you’re thinking, “but the real estate market is so inflated now, even if I could qualify for a loan, how am I going to afford a house in the neighborhood I want?”
Welcome to the wonderful world of foreclosures, tax auctions and rehabs (otherwise known as fixer-uppers)! It is a myth that all foreclosures and tax-defaulted properties are in poor, run-down neighborhoods. One good thing about foreclosures and tax-defaulted properties is their indiscrimination. They occur in gang-ridden crack neighborhoods, middle class neighborhoods and elite million dollar communities alike.
Another benefit is that they are generally much cheaper than the lowest priced house in the same neighborhood. We all know the difference between retail and wholesale. You could go to the mall and buy a shirt for retail at $20 or you could go to the garment district in the city and buy the same shirt for wholesale at $10, or better yet, with the advent of the internet, you could do all your wholesale shopping online in the comfort of your pajamas.
The same is true for real estate. If you wouldn’t spend that extra $10 dollars to buy a shirt at retail, why would you spend an extra $10,000 (or usually more) to buy a house at retail?
In the industry, houses that are listed on the market are considered retail. Houses you find through foreclosures and tax auctions are considered wholesale. These are discounted houses, available at a low price for a quick sale, usually because the Bank or County is seeking to simply make back the money they’ve spent on it before (and after) the buyer defaulted. This equals to huge savings for the educated buyer.
Rehabbing is buying houses that are a little less than perfect and fixing them up, either to sell for a profit or to keep as a residence. Some people enjoy the challenge of buying a property that needs a complete overhaul (new roof, extensive remodeling, structural fixes, etc.) while others prefer a “cosmetic fixer,” a house which needs a little touch up paint here and there, some flowers planted in the yard, maybe even a new kitchen countertop, etc.
Cosmetic fixers are a fun and easy way to make money. You get to do a little artistic handiwork (even if you’ve never done it before) and make money at the same time. The quick profits you yield can be rolled over into a bigger and better house, you can repeat the process over and over again, working your way up from a $50,000 house to a $500,000 house within a few years – and the best part, it’s all tax-free!
Called a “1031 Exchange,” the gains you receive from selling the house can be tax-deferred as long as you continue to buy an equal or higher priced house with the proceeds you make from the sale. Unlike a straight sale of a residence, there are no occupancy requirements or live-in time restrictions for a 1031 Exchange. For a residence, federal law states that you must live in the home for 2 out of 5 years of ownership in order to avoid capital gains tax. You may choose to live in it for 2 years and bank the proceeds – yes, tax free! – or you may choose to flip it and do a 1031 Exchange – yes, tax deferred!
If you’re sitting there scratching your head, thinking all this sounds like too much work when all you want is simply a house to call your own, chances are good you can still find a great deal in the retail market as well.
If you are convinced, or even slightly convinced that you just might be able to buy a home after all, here are some steps for the average, traditional home buyer.
* The first step is to figure out how much you are willing to spend. Get your finances in order by evaluating your current total monthly income against your current total monthly outgo. If you are paying $800 in rent now, how much more can you afford per month? If you don't want to pay any more than $800 a month, but really can, I urge you to look at the bigger picture. Is it worth it to spend a little more per month now to ensure you have an investment that could reap significant returns for you a few years later? Is it worth it to invest that $800 a month (and a little more if necessary) into YOUR future prosperity and not your landlord's? Is it worth it to live without Direct TV or 100 cable channels or 3,000 cell phone minutes in the short term to invest in your financial freedom in the long term?
Be careful not to overstretch, however. You still want to enjoy your home without cursing it for breaking your bank. Depending on your financial situation, it may not be necessary to cut costs or stretch to purchase a home, but if so, what is owning your own home worth to you?
* The second step is to find the right lender or broker. You need to find a lender/broker so that you will know how much house you can afford. They will tell you how big of a loan you qualify for, based on your income vs. your debt (debt-to-income ratio), how much the monthly payments will be approximately, and how much your upfront costs will be, if any.
* Once you find the right lender, the third step is to find an agent. As a buyer, you do not pay an agent. The agent makes a commission from the seller's final price. The commission (usually 6%) is split between the buyer's agent and the seller's agent (and their broker). If you can, be your own agent. If you find a house you like on your own, you can often offer the seller a lower price since they won't have to pay part of that to the agents and can afford to lower the price for you. Sellers usually factor in the agents' commissions when setting their asking price.
* The fourth step is to get to know the market. Knowing what to buy, when to buy and where to buy is key to making money in real estate. Watch the market, talk to agents, sellers, buyers, investors, anyone who might know the neighborhoods you’re interested in. Be open to neighborhoods you haven’t thought of or heard of. Your agent can help you with this too. If you have found a good agent, they will share with you their knowledge of the market based on their experiences being in it every day.
* Know what you want and why. There are numerous ways to make money in real estate. They range anywhere from simply buying low and selling high, to rental income property, to purchasing notes and certificates, to the aforementioned ways and more. Do you want to make a quick, instant million? Or do you want a modest but steady stream of income to be comfortable? Or do you just want to buy a house to live in, a house your children can grow up in? Study your options and go with the one that appeals to you regardless of whether you know anything about it and whether you think you can do it or not. Find your niche in the market and follow it.
* Learn from others who have done it. If your knowledge is insufficient due to lack of experience, let someone else’s experiences guide you. Take courses, read books, talk to others who have led the way and have achieved success in what you want to do. Don’t listen to anyone who hasn’t done it themselves, especially ones who tell you that you can’t. “Borrow” someone else’s knowledge until you gain your own through experience. There are a lot of materials out there to get you started.
http://www.choiceofhomes.com/how-to-buy-real-estate.htm
The truth is you are being unrealistic when you believe the following reasons to be true:
I can’t buy property now because…
* I don’t have 20% for a down payment, let alone 5%, let alone even 1%.
* I don’t have any money for closing costs.
* I won’t qualify for a loan (I have poor credit, don’t make enough money,
* can’t prove my income, haven’t been at the same job long enough, etc.)
* The market prices are too high now.
* I don’t want to live in a bad neighborhood and that’s the only place I can afford one right now.
* I can’t afford the mortgage payments with my current income.
* Fill-in-the-blank.
I am here to tell you that you CAN buy property, regardless of any of the above.
In this day and age, there is absolutely NO reason why anyone can’t own their own home. The strict days of the 20%-down-excellent-credit-and-stable-well-paying-job loans are over, replaced by no-down-payment-prior-bankruptcy-and-stated-income loan programs.
With the wide array of today’s diverse lifestyles comes an abundance of opportunities and programs created for each and every possible situation. Businesses need to make money, and the best way to open themselves up to a larger range of customers is to offer services for the vast and varied circumstances of each individual.
Many lenders today offer little to no down payment programs, poor credit leniencies and even no proof of employment or salary requirements (in lender speak, it’s called “stated-income programs” where you simply state your income to the lender without having to prove it with pay stubs, W2’s, etc. This is widely used by freelancers and consultants).
In addition to the countless programs offered by lenders, there are now government grants and (often free) services available for the low-income, low reserve home buyer as well as plenty of programs for first time home buyers. Government programs and many private loan programs also offer assistance for closing costs (the costs required up front to pay for lender fees, escrow & title charges, etc.), with some programs requiring the seller to pay for most of them.
For a list of government grants, go to www.cfda.gov (The Catalog of Federal Domestic Assistance) or www.firstgov.gov (The US Government’s Official Web Portal). Click on “Benefits & Grants” to get to their grants page.
“Ok, that’s great,” you’re thinking, “but the real estate market is so inflated now, even if I could qualify for a loan, how am I going to afford a house in the neighborhood I want?”
Welcome to the wonderful world of foreclosures, tax auctions and rehabs (otherwise known as fixer-uppers)! It is a myth that all foreclosures and tax-defaulted properties are in poor, run-down neighborhoods. One good thing about foreclosures and tax-defaulted properties is their indiscrimination. They occur in gang-ridden crack neighborhoods, middle class neighborhoods and elite million dollar communities alike.
Another benefit is that they are generally much cheaper than the lowest priced house in the same neighborhood. We all know the difference between retail and wholesale. You could go to the mall and buy a shirt for retail at $20 or you could go to the garment district in the city and buy the same shirt for wholesale at $10, or better yet, with the advent of the internet, you could do all your wholesale shopping online in the comfort of your pajamas.
The same is true for real estate. If you wouldn’t spend that extra $10 dollars to buy a shirt at retail, why would you spend an extra $10,000 (or usually more) to buy a house at retail?
In the industry, houses that are listed on the market are considered retail. Houses you find through foreclosures and tax auctions are considered wholesale. These are discounted houses, available at a low price for a quick sale, usually because the Bank or County is seeking to simply make back the money they’ve spent on it before (and after) the buyer defaulted. This equals to huge savings for the educated buyer.
Rehabbing is buying houses that are a little less than perfect and fixing them up, either to sell for a profit or to keep as a residence. Some people enjoy the challenge of buying a property that needs a complete overhaul (new roof, extensive remodeling, structural fixes, etc.) while others prefer a “cosmetic fixer,” a house which needs a little touch up paint here and there, some flowers planted in the yard, maybe even a new kitchen countertop, etc.
Cosmetic fixers are a fun and easy way to make money. You get to do a little artistic handiwork (even if you’ve never done it before) and make money at the same time. The quick profits you yield can be rolled over into a bigger and better house, you can repeat the process over and over again, working your way up from a $50,000 house to a $500,000 house within a few years – and the best part, it’s all tax-free!
Called a “1031 Exchange,” the gains you receive from selling the house can be tax-deferred as long as you continue to buy an equal or higher priced house with the proceeds you make from the sale. Unlike a straight sale of a residence, there are no occupancy requirements or live-in time restrictions for a 1031 Exchange. For a residence, federal law states that you must live in the home for 2 out of 5 years of ownership in order to avoid capital gains tax. You may choose to live in it for 2 years and bank the proceeds – yes, tax free! – or you may choose to flip it and do a 1031 Exchange – yes, tax deferred!
If you’re sitting there scratching your head, thinking all this sounds like too much work when all you want is simply a house to call your own, chances are good you can still find a great deal in the retail market as well.
If you are convinced, or even slightly convinced that you just might be able to buy a home after all, here are some steps for the average, traditional home buyer.
* The first step is to figure out how much you are willing to spend. Get your finances in order by evaluating your current total monthly income against your current total monthly outgo. If you are paying $800 in rent now, how much more can you afford per month? If you don't want to pay any more than $800 a month, but really can, I urge you to look at the bigger picture. Is it worth it to spend a little more per month now to ensure you have an investment that could reap significant returns for you a few years later? Is it worth it to invest that $800 a month (and a little more if necessary) into YOUR future prosperity and not your landlord's? Is it worth it to live without Direct TV or 100 cable channels or 3,000 cell phone minutes in the short term to invest in your financial freedom in the long term?
Be careful not to overstretch, however. You still want to enjoy your home without cursing it for breaking your bank. Depending on your financial situation, it may not be necessary to cut costs or stretch to purchase a home, but if so, what is owning your own home worth to you?
* The second step is to find the right lender or broker. You need to find a lender/broker so that you will know how much house you can afford. They will tell you how big of a loan you qualify for, based on your income vs. your debt (debt-to-income ratio), how much the monthly payments will be approximately, and how much your upfront costs will be, if any.
* Once you find the right lender, the third step is to find an agent. As a buyer, you do not pay an agent. The agent makes a commission from the seller's final price. The commission (usually 6%) is split between the buyer's agent and the seller's agent (and their broker). If you can, be your own agent. If you find a house you like on your own, you can often offer the seller a lower price since they won't have to pay part of that to the agents and can afford to lower the price for you. Sellers usually factor in the agents' commissions when setting their asking price.
* The fourth step is to get to know the market. Knowing what to buy, when to buy and where to buy is key to making money in real estate. Watch the market, talk to agents, sellers, buyers, investors, anyone who might know the neighborhoods you’re interested in. Be open to neighborhoods you haven’t thought of or heard of. Your agent can help you with this too. If you have found a good agent, they will share with you their knowledge of the market based on their experiences being in it every day.
* Know what you want and why. There are numerous ways to make money in real estate. They range anywhere from simply buying low and selling high, to rental income property, to purchasing notes and certificates, to the aforementioned ways and more. Do you want to make a quick, instant million? Or do you want a modest but steady stream of income to be comfortable? Or do you just want to buy a house to live in, a house your children can grow up in? Study your options and go with the one that appeals to you regardless of whether you know anything about it and whether you think you can do it or not. Find your niche in the market and follow it.
* Learn from others who have done it. If your knowledge is insufficient due to lack of experience, let someone else’s experiences guide you. Take courses, read books, talk to others who have led the way and have achieved success in what you want to do. Don’t listen to anyone who hasn’t done it themselves, especially ones who tell you that you can’t. “Borrow” someone else’s knowledge until you gain your own through experience. There are a lot of materials out there to get you started.
http://www.choiceofhomes.com/how-to-buy-real-estate.htm
Want A $10,000 House?
How do you find a house for ten or twenty thousand dollars? In three steps:
1. Find towns that are affordable.
2. Find houses you like.
3. Make an offer.
1. Affordable Towns
Altoona, Pennsyvania still had dozens of homes for sale for less than $30,00 when I checked today. The cheapest one is listed for $7,500. As the photo on our site shows, this is a cute little town, yet still big enough to have everything you need.
Hot Springs, Arkansas has houses under $20,000, the cheapest at the moment being $13,500. Alamogordo, New Mexico is a town we like a lot, and it still has homes for sale under $30,000. Independence, Kansas has really inexpensive homes. Prices start under $10,000!
2. Affordable Homes
To find houses that are for sale in these towns and others, you can look up their local newspapers online, and check out the classifieds. You can find a local real estate agent online too, and give them a call. One of the best resources, though, is probably www.Realtor.com, where you can search any town for homes listed by price, number of bedrooms, and many other criteria.
3. Buying A $10,000 House
Don't think that if you don't see homes listed for $10,000, you can't buy one. When we were living in Anaconda, Montana (where we bought a beautiful house for $17,500), we watched as a house listed for $18,000 eventually dropped to $9,900, and then was finally sold for $6,000! In towns where houses are this cheap, they often sell for much less than their initial asking price. Make an offer!
Steve Gillman and his wife Ana Blum traveled the country exploring great towns where there are still affordable houses. They bought a beautiful home in a cute mountain town for $17,500, and created a website where you can learn how to do the same. See a photo of their house and learn more at:
http://www.choiceofhomes.com/find-low-priced-cheap-homes.htm
1. Find towns that are affordable.
2. Find houses you like.
3. Make an offer.
1. Affordable Towns
Altoona, Pennsyvania still had dozens of homes for sale for less than $30,00 when I checked today. The cheapest one is listed for $7,500. As the photo on our site shows, this is a cute little town, yet still big enough to have everything you need.
Hot Springs, Arkansas has houses under $20,000, the cheapest at the moment being $13,500. Alamogordo, New Mexico is a town we like a lot, and it still has homes for sale under $30,000. Independence, Kansas has really inexpensive homes. Prices start under $10,000!
2. Affordable Homes
To find houses that are for sale in these towns and others, you can look up their local newspapers online, and check out the classifieds. You can find a local real estate agent online too, and give them a call. One of the best resources, though, is probably www.Realtor.com, where you can search any town for homes listed by price, number of bedrooms, and many other criteria.
3. Buying A $10,000 House
Don't think that if you don't see homes listed for $10,000, you can't buy one. When we were living in Anaconda, Montana (where we bought a beautiful house for $17,500), we watched as a house listed for $18,000 eventually dropped to $9,900, and then was finally sold for $6,000! In towns where houses are this cheap, they often sell for much less than their initial asking price. Make an offer!
Steve Gillman and his wife Ana Blum traveled the country exploring great towns where there are still affordable houses. They bought a beautiful home in a cute mountain town for $17,500, and created a website where you can learn how to do the same. See a photo of their house and learn more at:
http://www.choiceofhomes.com/find-low-priced-cheap-homes.htm
What to Look for in a Real Estate Agent
Real Estate Agents play an essential, critical role in the process of buying and selling a home. You just simply cannot afford to work with an agent that does not exhibit top-scale professional values. We’re talking about your primary investment, and the happiness of you and your loved ones.
Here are the 3, most important things that I’ve encountered, that I believe contribute towards excellence in the profession of Real Estate agents.
1. To Serve
2. To Know
3. To Listen
1. To Serve:
Real Estate is a service business, and homeowners and buyers must be treated with the respect that they deserve. A Real Estate Agent must demonstrate that they care about you, and that their primary concern is to serve your needs, and not their own.
a) Look for agents that carry cell phones everywhere they go, and that have no problem taking late night calls, or being interrupted during a Saturday morning snooze. This isn’t a rib of steak you’re buying (or selling). It is more important than everything and anything, and it can be a stressful, anxious process to go through. Customers deserve a confidant, and to be treated with the utmost of care.
b) Avoid agents that think they know everything. Seek out agents yearning to find out about you, and your likes, dislikes, and opinions. Avoid agents hail-bent on trying to prove what an encyclopedia of wisdom and advice they are. You’re thoughts matter too!
c) Your time is important. If you want to see 20 properties or more, don’t let anyone stop you. A Real Estate agent that encourages you to look, and explore, is more worthy of your time, than an agent that tries to fit you into their busy schedule. This is your buying experience, not theirs.
2. To Know:
I believe that knowledge is gained through familiarity. So, having a real estate agent that is familiar with the landscape of the land is of critical importance.
a) I like agents that have lived in the area for a while, that know all the names of the streets, and that know the high schools, the local grocery stores, and the local parks.
b) I enjoy listening to an agent’s own personal experiences, as we drive through neighborhoods, or review demographics. It’s not as important to me that they’re old, or young, or rich, or hungry, or just like me, or nothing like me, or whatever. As long as the stories are real, and are related, that’s all that matters.
c) I think an agent needs to be always on. Do they have access to all the information at all times? Do they constantly look for new properties, or new values, and do they have networked connections locally to appraisers, and loan officers, and title companies? Are they always thinking about my circumstance, and trying to connect the dots in my interest? I don’t want to be sold on decisions that earn commissions. I want to be guided to properties and professionals that best meet my needs.
3. To Listen:
There is no greater communication skill, then the ability to listen. Most of us find it next to impossible, to be silent, and take it all in. We all strive to be the center of attention, the story of the day, and the opinion worth listening to.
a) Real Estate agents that master the art of listening can truly hone in on your needs. These are the agents worth keeping in your rolodex, because they can tune in to your desires, your personality, your financial profile, and all critical elements of the deal, without your even being aware of it.
b) This is not so easy to spot, because often times, the ability to listen is overlooked. A good listener, after all, probably isn’t speaking as much. But consider this: Is the conversation mostly about you? Does the agent ask a lot of questions relating to your personal tastes, experiences, and ideas? Do you find yourself walking away, feeling a satisfaction about the dialog? These are all signs that you’ve just come into contact with a master listener.
c) And the real testament to an agent that listens, is when they finally do speak. Usually, when they do say something, it’s really, really important, and right on target, and completely unforgettable. Why? Because, they’ve spent most of their time absorbing you and your situation, and then they nail you with the bomb…Their recommendations that truly will change your life forever. I swear to you, it’s golden. You’ll get a much better property bought or sold, if you can find a real estate agent that knows how to listen.
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
http://www.choiceofhomes.com/agentqualities.htm
Here are the 3, most important things that I’ve encountered, that I believe contribute towards excellence in the profession of Real Estate agents.
1. To Serve
2. To Know
3. To Listen
1. To Serve:
Real Estate is a service business, and homeowners and buyers must be treated with the respect that they deserve. A Real Estate Agent must demonstrate that they care about you, and that their primary concern is to serve your needs, and not their own.
a) Look for agents that carry cell phones everywhere they go, and that have no problem taking late night calls, or being interrupted during a Saturday morning snooze. This isn’t a rib of steak you’re buying (or selling). It is more important than everything and anything, and it can be a stressful, anxious process to go through. Customers deserve a confidant, and to be treated with the utmost of care.
b) Avoid agents that think they know everything. Seek out agents yearning to find out about you, and your likes, dislikes, and opinions. Avoid agents hail-bent on trying to prove what an encyclopedia of wisdom and advice they are. You’re thoughts matter too!
c) Your time is important. If you want to see 20 properties or more, don’t let anyone stop you. A Real Estate agent that encourages you to look, and explore, is more worthy of your time, than an agent that tries to fit you into their busy schedule. This is your buying experience, not theirs.
2. To Know:
I believe that knowledge is gained through familiarity. So, having a real estate agent that is familiar with the landscape of the land is of critical importance.
a) I like agents that have lived in the area for a while, that know all the names of the streets, and that know the high schools, the local grocery stores, and the local parks.
b) I enjoy listening to an agent’s own personal experiences, as we drive through neighborhoods, or review demographics. It’s not as important to me that they’re old, or young, or rich, or hungry, or just like me, or nothing like me, or whatever. As long as the stories are real, and are related, that’s all that matters.
c) I think an agent needs to be always on. Do they have access to all the information at all times? Do they constantly look for new properties, or new values, and do they have networked connections locally to appraisers, and loan officers, and title companies? Are they always thinking about my circumstance, and trying to connect the dots in my interest? I don’t want to be sold on decisions that earn commissions. I want to be guided to properties and professionals that best meet my needs.
3. To Listen:
There is no greater communication skill, then the ability to listen. Most of us find it next to impossible, to be silent, and take it all in. We all strive to be the center of attention, the story of the day, and the opinion worth listening to.
a) Real Estate agents that master the art of listening can truly hone in on your needs. These are the agents worth keeping in your rolodex, because they can tune in to your desires, your personality, your financial profile, and all critical elements of the deal, without your even being aware of it.
b) This is not so easy to spot, because often times, the ability to listen is overlooked. A good listener, after all, probably isn’t speaking as much. But consider this: Is the conversation mostly about you? Does the agent ask a lot of questions relating to your personal tastes, experiences, and ideas? Do you find yourself walking away, feeling a satisfaction about the dialog? These are all signs that you’ve just come into contact with a master listener.
c) And the real testament to an agent that listens, is when they finally do speak. Usually, when they do say something, it’s really, really important, and right on target, and completely unforgettable. Why? Because, they’ve spent most of their time absorbing you and your situation, and then they nail you with the bomb…Their recommendations that truly will change your life forever. I swear to you, it’s golden. You’ll get a much better property bought or sold, if you can find a real estate agent that knows how to listen.
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
Publisher’s Directions: This article may be freely distributed so long as the copyright, author’s information, disclaimer, and an active link (where possible) are included.
Disclaimer: Statements and opinions expressed in the articles, reviews and other materials herein are those of the authors. While every care has been taken in the compilation of this information and every attempt made to present up-to-date and accurate information, we cannot guarantee that inaccuracies will not occur. The author will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.
http://www.choiceofhomes.com/agentqualities.htm
Finding A Capable Agent To Meet Your Real Estate Needs
The task of buying a new home, or relocating to a different part of the country will require the knowledge and assistance of an experienced real estate agent. With the help of a professional agent you will find the process of selling your home, buying a new property and shifting out so much less tedious..
The best way to start your search for a reputed sales associate or broker is look around your neighborhood. The local agency with the largest number of listings and sales figures is the right way to go. Speak to previous customers about the quality and integrity of the service provider. Most successful real estate agencies rely on customer's references hence they will ensure the best provision in customer care and satisfaction.
One of the best ways to find the ideal agent is to conduct an interview quite like one where an employer is meeting with a prospective employee. You will be required to enquire about training, work experience, agency policies and listing contracts. Another important aspect to look into is their sales figures; their body of listings and the number of homes they have successfully sold in the last one-year. Most of all their knowledge of the area will play a key role in the sale of the property. Check out all the references provided. The objective is to determine how knowledgeable the agent is. Make enquires about the closing costs, the current market conditions depending on whether you are a prospective buyer or seller. If he is well informed he will be able to answer all your questions without difficulty.
If you are looking to sell your home then you will have to figure out the provisions they can make if you list under them. What marketing strategy will they adopt for your lot?
Will you be provided the market analysis to determine an effective listing price? Will you be given regular updates on the progress of your home on the real estate market?
In case you are relocating to another state of the country, does the agency have a national relocation service? Such a service should assist in selling your current home and also help locate a new home.
The best way to guarantee that they provide all the required service is to take it down in writing. Make sure you have all the points in print, including all the contract details. This way, as the seller you can be sure of the marketing plan they adopt, and also terminate a contract in the case of insincere service.
A reliable and qualified agent can be the best bet you take while in the process of selling your home. This may take a certain amount time and patience on your behalf, but the end result will be worth the good sale.
http://www.choiceofhomes.com/capableagent.htm
The best way to start your search for a reputed sales associate or broker is look around your neighborhood. The local agency with the largest number of listings and sales figures is the right way to go. Speak to previous customers about the quality and integrity of the service provider. Most successful real estate agencies rely on customer's references hence they will ensure the best provision in customer care and satisfaction.
One of the best ways to find the ideal agent is to conduct an interview quite like one where an employer is meeting with a prospective employee. You will be required to enquire about training, work experience, agency policies and listing contracts. Another important aspect to look into is their sales figures; their body of listings and the number of homes they have successfully sold in the last one-year. Most of all their knowledge of the area will play a key role in the sale of the property. Check out all the references provided. The objective is to determine how knowledgeable the agent is. Make enquires about the closing costs, the current market conditions depending on whether you are a prospective buyer or seller. If he is well informed he will be able to answer all your questions without difficulty.
If you are looking to sell your home then you will have to figure out the provisions they can make if you list under them. What marketing strategy will they adopt for your lot?
Will you be provided the market analysis to determine an effective listing price? Will you be given regular updates on the progress of your home on the real estate market?
In case you are relocating to another state of the country, does the agency have a national relocation service? Such a service should assist in selling your current home and also help locate a new home.
The best way to guarantee that they provide all the required service is to take it down in writing. Make sure you have all the points in print, including all the contract details. This way, as the seller you can be sure of the marketing plan they adopt, and also terminate a contract in the case of insincere service.
A reliable and qualified agent can be the best bet you take while in the process of selling your home. This may take a certain amount time and patience on your behalf, but the end result will be worth the good sale.
http://www.choiceofhomes.com/capableagent.htm
Location, Location, Location
Location, location, location - known as the 3 most important factors when buying a property, and it is easy to see why. The location of your property dictates how much yield you get, and how much capital growth, which ultimately decides how well you do.
And yet people still get it wrong...
Most investors only consider location within the area they live ... rather than asking themselves where else they may gain even better and higher returns. It may seem to make sense to invest in a location near to you - you can pop in to check on it, help fix any problems, and keep eye on local market better.
However, this approach to property investment could be costing you thousands, or even tens of thousands of pounds, euros or dollars in lost opportunities in the long term. Compare this to professional property investors, who own property all around the country they live in, or even all around the world. By asking themselves "Where can I buy property that will give me a great return?" instead of asking "What's available down the road?", they stack the odds in their favour.
Investing in property is all about the numbers, this is something I realised very early on - forget about whether you would like to live there or whether the property is down the street from you. Instead, what I pay attention to is:
The likely return - yield, and capital growth
Buying costs and selling costs, including taxes
Cost to borrow money, ie interest rates
How attractive the property will be for likely tenants/buyers
So how do you recognise a great location?
To build wealth through investment property, you need a location where there will be capital growth ie where the property will rise in value, which builds wealth, which can ultimately allow you to purchase additional properties, and build up a portfolio.
Factors that suggest growth include:
1. Growing, developing economy eg Countries entering EU, regenerated towns
2. Demand outstripping supply ie more people want property than can be supplied, usually due to increased numbers arriving which could be due to higher birth rate, high numbers of jobs created, lower prices than similar properties else where, immigration laws being relaxed.
3. Low cost of borrowing – if interest rates are very low, people are more likely to buy, in particular for buy to let, as they will be confident can cover all costs and make good yield. It is for the above reasons that UK investors have started to look overseas recently, and why international investors target developing countries, and growing cities when deciding where to invest.
It is for the above reasons, why UK investors have been looking overseas over the last year or so, and why international investors target developing countries, and growing cities when choosing where to invest. Remember the location of your investment will dictate how well your investment performs.
Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 500 investors. Sign up today at the site for free independent advice!
http://www.choiceofhomes.com/propertylocation.htm
And yet people still get it wrong...
Most investors only consider location within the area they live ... rather than asking themselves where else they may gain even better and higher returns. It may seem to make sense to invest in a location near to you - you can pop in to check on it, help fix any problems, and keep eye on local market better.
However, this approach to property investment could be costing you thousands, or even tens of thousands of pounds, euros or dollars in lost opportunities in the long term. Compare this to professional property investors, who own property all around the country they live in, or even all around the world. By asking themselves "Where can I buy property that will give me a great return?" instead of asking "What's available down the road?", they stack the odds in their favour.
Investing in property is all about the numbers, this is something I realised very early on - forget about whether you would like to live there or whether the property is down the street from you. Instead, what I pay attention to is:
The likely return - yield, and capital growth
Buying costs and selling costs, including taxes
Cost to borrow money, ie interest rates
How attractive the property will be for likely tenants/buyers
So how do you recognise a great location?
To build wealth through investment property, you need a location where there will be capital growth ie where the property will rise in value, which builds wealth, which can ultimately allow you to purchase additional properties, and build up a portfolio.
Factors that suggest growth include:
1. Growing, developing economy eg Countries entering EU, regenerated towns
2. Demand outstripping supply ie more people want property than can be supplied, usually due to increased numbers arriving which could be due to higher birth rate, high numbers of jobs created, lower prices than similar properties else where, immigration laws being relaxed.
3. Low cost of borrowing – if interest rates are very low, people are more likely to buy, in particular for buy to let, as they will be confident can cover all costs and make good yield. It is for the above reasons that UK investors have started to look overseas recently, and why international investors target developing countries, and growing cities when deciding where to invest.
It is for the above reasons, why UK investors have been looking overseas over the last year or so, and why international investors target developing countries, and growing cities when choosing where to invest. Remember the location of your investment will dictate how well your investment performs.
Alan Forsyth is a full time property investor and developer with 10 years experience in UK and overseas. He is managing director of http://www.property-investment-tips.com which offers free independent advice and tips on property investment, courses, countries, strategies, mortgages and much more - with a free newsletter every 3 weeks giving latest tips and offers to over 500 investors. Sign up today at the site for free independent advice!
http://www.choiceofhomes.com/propertylocation.htm
How Much Should I Pay For This House?
We probably answer this question for someone a couple times every week. The problem is that they don’t have a good formula for determining the most they can pay and still make a profit – so they’re scared to make any offer. Here’s what we use for single family homes:
The (MAO) Maximum Allowable Offer is calculated by first determining what the house will be worth after renovation - the ARV (After Repaired Value); less the rehab dollars required; less the Buy/Sell/Hold (B/S/H) costs; less profit margins.
MAO = ARV – Rehab – B/S/H – Profit
So let’s break that down a little further. To determine the ARV, study comparable sales data. Comparable sales are those properties which sold in the last 6 months to 1 year, and within ½ to 1 mile from the subject house. But other factors must be considered as well. The more characteristics between the properties that are similar, the more valid the data. Make sure that the house itself is similar in square footage, bedrooms and baths, age, style, and architecture. Don’t worry about condition except as it will affect the amount of rehab dollars required. Next, look at the neighborhood and the individual street. Do they look the same? Or is the comparable property on a beautiful street while the subject property is on a street riddled with empty littered lots and boarded up houses? The point is to view the potential investment as your end homeowner occupant will. If they could buy your completed investment on the bad street, or a house on the beautiful street – either for $150,000 – which would they choose? The other house of course. Which means your house is not worth the same – it must sell for less to attract a buyer.
Rehab dollars differ from renovator to renovator depending whether they do the work themselves, or use cheap subs, or use an expensive general contractor. The scope of the work should be the same – it is whatever is required to make the investment look like the comparable houses (unless the plan is to sell well under market value). We do not attempt to obtain all of the various contractor bids when we are making offers. All the real deals would be sold before we’d ever have an offer together! Instead we’ve developed ranges of rehab dollars based on the overall condition of the home. Is it an exact science? No, but neither are the bids – there will always be something missed. So why not work with a guide that is probably 90% accurate and allows for quick offers?
Buy/Sell/Hold costs include expenses such as appraisals, attorney fees, title search & title insurance, loan origination fees, debt service, utilities, insurance, taxes, real estate commissions, and closing fees paid on behalf of the end buyer. Again, these costs vary depending on each investor’s individual situation. In the Atlanta area, 15% of the ARV seems to be a good average allocation for B/S/H costs. If you are the renovator, calculate your specific B/S/H costs, then utilize that percentage for future offers.
Profit margins are the fun part of the equation. How much do you want to make? If you’re wholesaling the property, you also want to consider how much you should leave in the deal for the investor buyer to make the deal attractive.
That’s it. That’s how you calculate the most you’ll pay for a property. But that’s not what you SHOULD pay. It is the maximum you’ll pay. It is the deal-breaker. You will not pay one penny over the MAO. Your negotiations should lead you as far below the MAO as possible. The difference in amounts is additional profit in your pocket. What you SHOULD pay is the minimum price below the MAO that the seller will accept.
We call this the MIN-O.
http://www.choiceofhomes.com/housefairvalue.htm
The (MAO) Maximum Allowable Offer is calculated by first determining what the house will be worth after renovation - the ARV (After Repaired Value); less the rehab dollars required; less the Buy/Sell/Hold (B/S/H) costs; less profit margins.
MAO = ARV – Rehab – B/S/H – Profit
So let’s break that down a little further. To determine the ARV, study comparable sales data. Comparable sales are those properties which sold in the last 6 months to 1 year, and within ½ to 1 mile from the subject house. But other factors must be considered as well. The more characteristics between the properties that are similar, the more valid the data. Make sure that the house itself is similar in square footage, bedrooms and baths, age, style, and architecture. Don’t worry about condition except as it will affect the amount of rehab dollars required. Next, look at the neighborhood and the individual street. Do they look the same? Or is the comparable property on a beautiful street while the subject property is on a street riddled with empty littered lots and boarded up houses? The point is to view the potential investment as your end homeowner occupant will. If they could buy your completed investment on the bad street, or a house on the beautiful street – either for $150,000 – which would they choose? The other house of course. Which means your house is not worth the same – it must sell for less to attract a buyer.
Rehab dollars differ from renovator to renovator depending whether they do the work themselves, or use cheap subs, or use an expensive general contractor. The scope of the work should be the same – it is whatever is required to make the investment look like the comparable houses (unless the plan is to sell well under market value). We do not attempt to obtain all of the various contractor bids when we are making offers. All the real deals would be sold before we’d ever have an offer together! Instead we’ve developed ranges of rehab dollars based on the overall condition of the home. Is it an exact science? No, but neither are the bids – there will always be something missed. So why not work with a guide that is probably 90% accurate and allows for quick offers?
Buy/Sell/Hold costs include expenses such as appraisals, attorney fees, title search & title insurance, loan origination fees, debt service, utilities, insurance, taxes, real estate commissions, and closing fees paid on behalf of the end buyer. Again, these costs vary depending on each investor’s individual situation. In the Atlanta area, 15% of the ARV seems to be a good average allocation for B/S/H costs. If you are the renovator, calculate your specific B/S/H costs, then utilize that percentage for future offers.
Profit margins are the fun part of the equation. How much do you want to make? If you’re wholesaling the property, you also want to consider how much you should leave in the deal for the investor buyer to make the deal attractive.
That’s it. That’s how you calculate the most you’ll pay for a property. But that’s not what you SHOULD pay. It is the maximum you’ll pay. It is the deal-breaker. You will not pay one penny over the MAO. Your negotiations should lead you as far below the MAO as possible. The difference in amounts is additional profit in your pocket. What you SHOULD pay is the minimum price below the MAO that the seller will accept.
We call this the MIN-O.
http://www.choiceofhomes.com/housefairvalue.htm
What is a Foreclosure?
A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons. The main cause is delinquent payments on a mortgage. The mortgage company or second and even third mortgage holders contact the owner, then the trustee (usually an attorney) to begin the process. If it is VA guaranteed or FHA insured, many times they offer assistance or alternatives. Then the appraisal is ordered to determine fair market value.
It can also be for medical bills, delinquent taxes and other liens, even credit cards. "The purpose of this foreclosure is for collection of a debt" is usually printed in the legal section of the newspaper as well as some other publications, such as local business papers and law papers.
Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. If the property is " free and clear" of other liens then it is solely based on the taxes, penalties and interest due. I know of some that have sold for less than a few thousand dollars.
The owner has the right to cure the default right up to the very last minute before the sale. A pay off statement is prepared including the delinquent payments, trustee fees (usually 5 % of the remaining balance of the loan), processing fees, property inspections, appraisal and any other thing the mortgage company can think of. The problem is not only coming up with the funds but knowing what charges are and if they are legitimate. I have only heard of lawyers and accountants challenging mortgage companies on over or false charges.
Suzie has been in the business twenty years as a licensed real estate agent, broker and certified residential appraiser who majored in real estate and architecture. She hopes to improve the industry one step and one person at a time. Other professionals in the same fields as well as educators have contibuted.
http://www.choiceofhomes.com/foreclosuredefinition.htm
It can also be for medical bills, delinquent taxes and other liens, even credit cards. "The purpose of this foreclosure is for collection of a debt" is usually printed in the legal section of the newspaper as well as some other publications, such as local business papers and law papers.
Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. If the property is " free and clear" of other liens then it is solely based on the taxes, penalties and interest due. I know of some that have sold for less than a few thousand dollars.
The owner has the right to cure the default right up to the very last minute before the sale. A pay off statement is prepared including the delinquent payments, trustee fees (usually 5 % of the remaining balance of the loan), processing fees, property inspections, appraisal and any other thing the mortgage company can think of. The problem is not only coming up with the funds but knowing what charges are and if they are legitimate. I have only heard of lawyers and accountants challenging mortgage companies on over or false charges.
Suzie has been in the business twenty years as a licensed real estate agent, broker and certified residential appraiser who majored in real estate and architecture. She hopes to improve the industry one step and one person at a time. Other professionals in the same fields as well as educators have contibuted.
http://www.choiceofhomes.com/foreclosuredefinition.htm
How you should deal with Dual Real Estate Agents?
Dual real estate agents represent both buyer and seller. The concept of dual agency is legal in most U.S. states. However, most consumer advocacy organizations recommend against using a dual agent - reason being the existence of an inherit conflict of interest for the agent. Real estate agents receive a commission based on the selling price of the property. The higher the price, the higher the real estate agent's commission, so the reasoning of these organizations is that dual agents never really have the buyer's best interests at heart. The case could also be vice-versa - the agent could be in a position to manipulate his seller into selling the property at a given price because he has a buyer ready to buy at that price.
Given the drawbacks of using a dual agent, should you even consider using the services of one? Well, there are laws governing the practices of dual agents. In spite of the disadvantages mentioned, if a dual agent is able to get you a good deal there shouldn't be a reason to stop you.
A dual agent needs to disclose to both the buyer and seller that he is representing both parties and both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other as it could adversely impact negotiating positions.
When you're dealing with a dual real estate agent, you need to remember that the agent's primary objective is to close the deal - a difference in price margin to you is not going to impact his real estate commissions as much. It's very difficult for a dual agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. As a buyer or seller, you would need to be more alert and be in a position to make the right decisions for yourself.
Be sure the exact nature of your relationship with the dual agent is clear and have him mention what services he will be performing for you, how he will be paid, and how any conflicts of interest that arise during the transaction will be handled.
http://www.choiceofhomes.com/dualagents.htm
Given the drawbacks of using a dual agent, should you even consider using the services of one? Well, there are laws governing the practices of dual agents. In spite of the disadvantages mentioned, if a dual agent is able to get you a good deal there shouldn't be a reason to stop you.
A dual agent needs to disclose to both the buyer and seller that he is representing both parties and both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other as it could adversely impact negotiating positions.
When you're dealing with a dual real estate agent, you need to remember that the agent's primary objective is to close the deal - a difference in price margin to you is not going to impact his real estate commissions as much. It's very difficult for a dual agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. As a buyer or seller, you would need to be more alert and be in a position to make the right decisions for yourself.
Be sure the exact nature of your relationship with the dual agent is clear and have him mention what services he will be performing for you, how he will be paid, and how any conflicts of interest that arise during the transaction will be handled.
http://www.choiceofhomes.com/dualagents.htm
What To Expect In Closing Costs On A Home Purchase
Many are taking advantage of this year’s low mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. But, they should realize that there’s a whole new set of expenses that must be covered before actually closing on the sale.
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Title insurance can be a substantial expense. The one-time title fee, including search and examination, averages around $430 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.
Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.
Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.
Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.
Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.
Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.
http://www.choiceofhomes.com/homeclosingcosts.htm
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Title insurance can be a substantial expense. The one-time title fee, including search and examination, averages around $430 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.
Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.
Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.
Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.
Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.
Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.
http://www.choiceofhomes.com/homeclosingcosts.htm
Tips to First-Time Home Buyers
There is no doubt that every American holds a vision to acquire a home of their own. This article gives you an insight on how to go about acquiring that home you've always wanted. This is a guide that may be of use to many first time home buyers.
Now some of us know that for many, home buying may be a complex and a daunting job. Home buying involves a whole lot of procedures which require some amount of research. Here below are a few helpful tips on buying a home for the first time:-
Using Available Resources
You need information in hand before going out scouting for homes in the market – information with regard to the prevailing market rates, taxes, neighborhood, etc. There are many sources from where you could obtain such data but the most effective and useful is the internet. The internet not only assists you in understanding the prevailing market conditions without the services of a real estate agent but also provides as a useful resource for locating homes on your own.
Budgeting for Costs
This emphasizes on the willingness and ability to spend. It’s wiser going about your home purchase with a pre-approved loan as it not only helps in your home negotiations but also keeps you in check with your spending ability. It is also advisable for you to try and pay at least 20% as down payment as it would avoid you from having to shell out more on what is known as PMI - private mortgage insurance – (an additional cost incurred on the mortgage to protect the lender incase you default on the loan).
Purchase Season
It is more advantageous in searching for a home during the winter season as people are busy during this holiday period and hence there is less buying demand. This is where one can utilize the opportunity to pick a home and also underbid on the asking price.
Smaller Mortgage Companies
It is very important that one takes into mind the profile of the specific mortgage company that one is handling with. Most people end up with the big companies only because of its image and popularity created, where in fact the smaller companies are more efficient in terms of customer service as well as their rates. This is due to their minor investment in advertising and such related expenditure. Hence it is advisable to go for smaller mortgage companies instead of bigger ones.
Home Inspection
Lastly and most importantly one must have a look-over the house as a final check before making the big decision. Last-minute inspections are always required just to avoid any later discovery of damages or leakages in the house. There have been some who after investing millions of dollars later uncovered the damages that came along with the house. Therefore inspection is a must!
Conclusively, it may be noted that the complexities involved in purchasing a home for the first time would be much simpler if one were to take heed of the advice mentioned above. All in all, here’s wishing you wishing you a happy home buying experience!
http://www.choiceofhomes.com/firsttimehomebuyers.htm
Now some of us know that for many, home buying may be a complex and a daunting job. Home buying involves a whole lot of procedures which require some amount of research. Here below are a few helpful tips on buying a home for the first time:-
Using Available Resources
You need information in hand before going out scouting for homes in the market – information with regard to the prevailing market rates, taxes, neighborhood, etc. There are many sources from where you could obtain such data but the most effective and useful is the internet. The internet not only assists you in understanding the prevailing market conditions without the services of a real estate agent but also provides as a useful resource for locating homes on your own.
Budgeting for Costs
This emphasizes on the willingness and ability to spend. It’s wiser going about your home purchase with a pre-approved loan as it not only helps in your home negotiations but also keeps you in check with your spending ability. It is also advisable for you to try and pay at least 20% as down payment as it would avoid you from having to shell out more on what is known as PMI - private mortgage insurance – (an additional cost incurred on the mortgage to protect the lender incase you default on the loan).
Purchase Season
It is more advantageous in searching for a home during the winter season as people are busy during this holiday period and hence there is less buying demand. This is where one can utilize the opportunity to pick a home and also underbid on the asking price.
Smaller Mortgage Companies
It is very important that one takes into mind the profile of the specific mortgage company that one is handling with. Most people end up with the big companies only because of its image and popularity created, where in fact the smaller companies are more efficient in terms of customer service as well as their rates. This is due to their minor investment in advertising and such related expenditure. Hence it is advisable to go for smaller mortgage companies instead of bigger ones.
Home Inspection
Lastly and most importantly one must have a look-over the house as a final check before making the big decision. Last-minute inspections are always required just to avoid any later discovery of damages or leakages in the house. There have been some who after investing millions of dollars later uncovered the damages that came along with the house. Therefore inspection is a must!
Conclusively, it may be noted that the complexities involved in purchasing a home for the first time would be much simpler if one were to take heed of the advice mentioned above. All in all, here’s wishing you wishing you a happy home buying experience!
http://www.choiceofhomes.com/firsttimehomebuyers.htm
Out-Of-State Investor's Check List of Questions
Buying a Home is the American Dream. It is more than a place you put your hat at the end of the day. It defines you, protects you, and prospers with you. Yes, Home Ownership is a noble pursuit, but it always starts with this first, important question: Should I buy or Rent my Home? The answer, surprisingly, is not so obvious.
Now the question of “affordability” is an important one, but that’s not the subject of this article. We have a free calculator at our website. You’re welcome to use it. The subject of this article, however, deals with the questions that must be answered, before a renter can migrate into the magical realms of HOME OWNERSHIP.
Here are 5 MAGIC POINTS that you need to examine, on whether or not to BUY or RENT your next Home:
EXPENSES
COMMITMENT
MONTHLY PAYMENTS
TAX RETURNS
WEALTH
1. EXPENSES:
Renting a home requires that you give a check to the landlord each month. That’s it. You’re done. Everything else is simply taken care of for you. When you OWN a home, you are in business for yourself, and this means that you must handle all of the expenses yourself.
You are responsible, of course, for the monthly mortgage payment to the bank...
You must pay all your utilities, including phone, gas, electric, cable, trash, water, etc.
Don’t forget your responsibility to take care of maintenance. Not having enough money in the bank account is not a good enough excuse. If it’s broken, ya gotta fix it!
Don’t forget your Homeowners Association Dues, your Membership Fees, Property Taxes, Special Assessment taxes, insurance…yada, yada, yada.
When you rent a home, you give the landlord a check. When you buy a home, you must ensure that all expenses are met and managed every single month, forever...
2. COMMITMENT:
Renting and Buying have different financial commitments.
To rent a home usually requires a lease. Sometimes it’s month to month; sometimes it’s a 12 month lease. But, no matter what, there’s always a way out. Your commitment is limited to the time you choose to stay and reside there.
When you buy a home, you usually sign a 30 year mortgage, which most people would argue, is like forever. You are committed to ensuring that the payment is delivered to the bank or lender every single month, on time. They don’t care if you want to move at some point. You can sell your home of course, but you can’t just break your mortgage, like you can break your lease.
Buying a home requires a long-term, financial commitment. Renting a Home simply requires that you cut a check each month you reside at the home of choice.
3. MONTHLY PAYMENTS:
It always appears that a renter will pay less each month on monthly payments. Let me shed some light on this subject. Examined closely, this is as far from the truth as the moon to the Earth. Let’s use an example:
As a renter, you pay $800 a month, let’s say, that increases 5% each year. The math may differ with you and your landlord, but you get the idea. Barring rent-control, this is inevitable. Simple enough.
As a Homeowner on a fixed rate loan at $1000 Principal and Interest per month, the payment never changes…Never…Not ever…
In other words, the renter’s monthly rent will eventually SURPASS the homeowner’s mortgage payment…Much faster then you might expect.
In this example, our Renter’s Monthly Payments will exceed our Homeowners Mortgage Payment, in about 6 years.
4. TAX RETURNS:
A renter usually does receive a tax benefit from the State and Federal tax boards each year, sometimes referred to as a “renter’s credit”. But the Homeowner receives a deduction on the Interest paid on their loan. This is a huge benefit to the homeowner.
Let’s use the same example with our $800 renter. At the end of the year, our renter might receive a $600 renter’s credit on their 1040EZ form when doing their taxes. Simple enough.
Our Homeowner, on the other hand, paid a total of $12,000 in mortgage payments, of which about $11,500 went towards INTEREST. This INTEREST is a write-off.
Let’s see…$600 versus $11,500. Hmmm. I like that math. That equates to a nice healthy tax return for most of us, come April of next year.
Take those thousands of dollars in tax return, and go on a nice Cruise around Jamaica!
5. WEALTH:
It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas the homeowner has postured themselves wisely for the future.
Let’s say we have a renter that wants to get wealthy. Great! They must go find a business to run, or a stock to invest in, or come up with a great invention, or be the next rock star, or follow a family friends “tip”, and go do Cattle Futures from August to September (just an example, folks…I don’t know anything about cattle…). In any event, most people would be concerned that our renter is following the proverbial “pipe dream” towards wealth.
But let’s say we have a homeowner who wants to build wealth. Great! What do they need to do? Simple….Nothing…Pay the mortgage…Live in the house…Go work your job. That’s it. Real Estate appreciates in value, on average, over the long haul, like no other financial vehicle. It is a virtual certainty, and it is automatic. The homeowner controls the total value of the home. That’s the magic of leverage.
Let me drive the point home: Someone might buy a house at $150,000, let’s say, and over the course of 7 to 10 years, it is completely reasonable to suggest that this very same house could be worth around $600,000.
Renters do not have a built in advantage for building wealth, whereas Real Estate appreciates in value as a virtual certainty. They don’t call home-ownership the “American Dream” for nothing!
SUMMARY:
The subject of deciding on whether to Buy or Rent, is not simple. In the end, it boils down to a question of complexity. Being a Renter is simple. Being a Homeowner is more complex, and yet, that does not mean that it is not within your grasp. It IS!!! There are so many people that are just waiting in the wings, yearning to help you get there. Real Estate Agents, Mortgage Brokers, Friends, Family, etc.
With all of these resources around you, just about anyone can own a home, and in this great country, the American Dream of Home Ownership is completely within all of our grasps!
But do me a favor. Give yourself the time to examine these important questions first. Look within. As we all get older in life, we yearn for more. Buying versus Renting is a common theme in this journey. As we wave goodbye to the younger years, we say so long to the simplicity of life, and we say hello to the promise of prosperity, wealth, and a better tomorrow. We also say hello to higher, more complex things. Often times, it’s simply the willingness to accept complexity that will get you to the understanding you need.
Best of luck on your journey, from Renting to Owning your next Home!
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
http://www.choiceofhomes.com/buyorrenthome.htm
Now the question of “affordability” is an important one, but that’s not the subject of this article. We have a free calculator at our website. You’re welcome to use it. The subject of this article, however, deals with the questions that must be answered, before a renter can migrate into the magical realms of HOME OWNERSHIP.
Here are 5 MAGIC POINTS that you need to examine, on whether or not to BUY or RENT your next Home:
EXPENSES
COMMITMENT
MONTHLY PAYMENTS
TAX RETURNS
WEALTH
1. EXPENSES:
Renting a home requires that you give a check to the landlord each month. That’s it. You’re done. Everything else is simply taken care of for you. When you OWN a home, you are in business for yourself, and this means that you must handle all of the expenses yourself.
You are responsible, of course, for the monthly mortgage payment to the bank...
You must pay all your utilities, including phone, gas, electric, cable, trash, water, etc.
Don’t forget your responsibility to take care of maintenance. Not having enough money in the bank account is not a good enough excuse. If it’s broken, ya gotta fix it!
Don’t forget your Homeowners Association Dues, your Membership Fees, Property Taxes, Special Assessment taxes, insurance…yada, yada, yada.
When you rent a home, you give the landlord a check. When you buy a home, you must ensure that all expenses are met and managed every single month, forever...
2. COMMITMENT:
Renting and Buying have different financial commitments.
To rent a home usually requires a lease. Sometimes it’s month to month; sometimes it’s a 12 month lease. But, no matter what, there’s always a way out. Your commitment is limited to the time you choose to stay and reside there.
When you buy a home, you usually sign a 30 year mortgage, which most people would argue, is like forever. You are committed to ensuring that the payment is delivered to the bank or lender every single month, on time. They don’t care if you want to move at some point. You can sell your home of course, but you can’t just break your mortgage, like you can break your lease.
Buying a home requires a long-term, financial commitment. Renting a Home simply requires that you cut a check each month you reside at the home of choice.
3. MONTHLY PAYMENTS:
It always appears that a renter will pay less each month on monthly payments. Let me shed some light on this subject. Examined closely, this is as far from the truth as the moon to the Earth. Let’s use an example:
As a renter, you pay $800 a month, let’s say, that increases 5% each year. The math may differ with you and your landlord, but you get the idea. Barring rent-control, this is inevitable. Simple enough.
As a Homeowner on a fixed rate loan at $1000 Principal and Interest per month, the payment never changes…Never…Not ever…
In other words, the renter’s monthly rent will eventually SURPASS the homeowner’s mortgage payment…Much faster then you might expect.
In this example, our Renter’s Monthly Payments will exceed our Homeowners Mortgage Payment, in about 6 years.
4. TAX RETURNS:
A renter usually does receive a tax benefit from the State and Federal tax boards each year, sometimes referred to as a “renter’s credit”. But the Homeowner receives a deduction on the Interest paid on their loan. This is a huge benefit to the homeowner.
Let’s use the same example with our $800 renter. At the end of the year, our renter might receive a $600 renter’s credit on their 1040EZ form when doing their taxes. Simple enough.
Our Homeowner, on the other hand, paid a total of $12,000 in mortgage payments, of which about $11,500 went towards INTEREST. This INTEREST is a write-off.
Let’s see…$600 versus $11,500. Hmmm. I like that math. That equates to a nice healthy tax return for most of us, come April of next year.
Take those thousands of dollars in tax return, and go on a nice Cruise around Jamaica!
5. WEALTH:
It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas the homeowner has postured themselves wisely for the future.
Let’s say we have a renter that wants to get wealthy. Great! They must go find a business to run, or a stock to invest in, or come up with a great invention, or be the next rock star, or follow a family friends “tip”, and go do Cattle Futures from August to September (just an example, folks…I don’t know anything about cattle…). In any event, most people would be concerned that our renter is following the proverbial “pipe dream” towards wealth.
But let’s say we have a homeowner who wants to build wealth. Great! What do they need to do? Simple….Nothing…Pay the mortgage…Live in the house…Go work your job. That’s it. Real Estate appreciates in value, on average, over the long haul, like no other financial vehicle. It is a virtual certainty, and it is automatic. The homeowner controls the total value of the home. That’s the magic of leverage.
Let me drive the point home: Someone might buy a house at $150,000, let’s say, and over the course of 7 to 10 years, it is completely reasonable to suggest that this very same house could be worth around $600,000.
Renters do not have a built in advantage for building wealth, whereas Real Estate appreciates in value as a virtual certainty. They don’t call home-ownership the “American Dream” for nothing!
SUMMARY:
The subject of deciding on whether to Buy or Rent, is not simple. In the end, it boils down to a question of complexity. Being a Renter is simple. Being a Homeowner is more complex, and yet, that does not mean that it is not within your grasp. It IS!!! There are so many people that are just waiting in the wings, yearning to help you get there. Real Estate Agents, Mortgage Brokers, Friends, Family, etc.
With all of these resources around you, just about anyone can own a home, and in this great country, the American Dream of Home Ownership is completely within all of our grasps!
But do me a favor. Give yourself the time to examine these important questions first. Look within. As we all get older in life, we yearn for more. Buying versus Renting is a common theme in this journey. As we wave goodbye to the younger years, we say so long to the simplicity of life, and we say hello to the promise of prosperity, wealth, and a better tomorrow. We also say hello to higher, more complex things. Often times, it’s simply the willingness to accept complexity that will get you to the understanding you need.
Best of luck on your journey, from Renting to Owning your next Home!
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
http://www.choiceofhomes.com/buyorrenthome.htm
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