How to Avoid a Foreclosure with a Countrywide VA Loan

VA mortgage loans are home loans that are government insured and guaranteed by the VA (Department of Veterans Affairs). They are there to help qualifying active-duty service members, reservists and Veterans that wish to purchase a home. Although the financing comes from banks, the borrowing terms are more flexible, including lower interest rates and down payments. Unfortunately, even with this help many Veterans discover they can't make the mortgage payment, resulting to the home going into foreclosure. With help, they can often learn how to avoid foreclosure. Countrywide VA loans are issued through Countrywide Banks. Countrywide is used by many Veterans, as they are one of the top lenders for VA loans.

Although the financing comes from Countrywide (or some other lender), the VA guarantees the loan, stating that if they will cover the mortgage loan if the Veteran cannot. Many benefits are there to help Veterans when they obtain their VA financing through Countrywide, including how to avoid foreclosure. Countrywide, VA and the Veteran all work together to avoid a foreclosure, if possible. Many VA loans today are in foreclosure. Often all the borrower needs is a little help in how to avoid foreclosure. Countrywide VA loans are often provided with special features not available in traditional mortgage loans.No down payments are required on some VA loans with the qualified Veteran being able to borrow up to $417,000. The debt to income ratio and income guidelines is much more flexible and less strict with VA loans than with traditional mortgages. Because the Department of Veterans Affairs is insuring or guaranteeing the loan, the requirement for mortgage insurance if eliminated. Veterans also have their choice of an adjustable or fixed rate loan. In spite of these flexible guidelines, Veterans must still meet the eligibility requirements of the VA.

The law requires that VA home loans can only be obtained for certain reasons. One reason is to build or buy a home that will be owned and lived in by the Veteran. Another reason is to refinance a current VA loan for the purpose of lower interest rate or to refinance a current mortgage that is owned by a Veteran. The VA loan can be for residential property of up to four family units.

With the foreclosure rate as high as it is today, many are concerned with how to avoid foreclosure. Country VA lenders are always available with helpful suggestions. When asked how to avoid foreclosure, Countrywide VA lenders will suggest contacting them at the first sign of financial difficulties. When the financial difficulties are in the early stages, Countrywide lenders can often come up with different mortgage terms to help the Veteran. However, once the borrower becomes too far behind in the payments, they sometimes cannot be helped.

Real estate agent: All about real estate agents

Real estate agents are professionals who help in connecting the buyer to the seller. A lot of real estate agents also do rentals wherein they connect tenants to landlords and even maintain the property on the behalf of the landlords. The real estate agents work by linking together the two interested parties and charging a commission for their services. For sales, they charge commission only to the seller but for rentals (i.e. agent managed rentals) the commission is charged to both parties involved in the transaction. Real estate agents generally calculate their fee as a percentage of the selling price (in case of sales) and as part of the rent (for rentals). People, who want to sell/let their property, leave the details of their property with the real estate agent (and in fact, even leave the keys of the house so that the real estate agent can arrange for viewings without them getting into any hassle). The other interested party (i.e. the buyer/tenant), gets access to this information by contacting the real estate agent. That’s how the real estate agents become a hub of information.

A lot of home seekers (including real estate investors) use the services of real estate agents not just for getting good deals but also getting them quick. Since real estate agents are probably most familiar with the market situation in their region of operation, it makes sense to approach them to get an idea of the going rate for properties in that region. Real estate agents would generally know the prices of various properties of different types and at various locations in the region.

A property seller can possibly get a few thousands more for his/her property by using the advice received from a good real estate agent. A good real estate agent will also analyse the needs of a home buyer/tenant and provide suggestions on what kind of home could be available to them within their budget. So a good real estate agent will not just throw a list of available properties to the buyer/ tenant but will actually discuss their needs and make a suggestion. This, in fact, works in the favour of real estate agent in two ways. Firstly, if the real estate agent is able to sell the house they get their commission and secondly, if they make the buyer happy too they earn a good reputation (and hence more business).

However, it is worth noting that real estate agents work on seller’s behalf. So, beware if they are trying too hard to sell a property.

Does the Housing Market Affect House Flipping Success?

very news story published these days related to the real estate and housing market seems to predict doom and gloom. Property prices diving, out of this world foreclosure rates, mortgage meltdowns, and stagnating market articles dominate the headlines. As a real estate entrepreneur, shouldn’t this information keep you awake at night? Shouldn’t it make you rethink getting into house flipping in the first place? Shouldn’t it cause some serious concerns?

The short answer, to put it plainly, is not really. The housing market should have little to do with your achievement as a house flipper. Your success as a flipper depends on many things: buying undervalued homes; making correct improvements; keeping costs low; making your property the best in its neighborhood; but it does not depend on the market itself.

Why then, are all the house flippers saying the sky is falling and the business is doomed? Because they aren’t in this business with the right mindset. They are speculators, hoping to buy a property and let the market itself increase the value. When the market stops going up, these individuals unexpectedly see their profit dry up (or turn into huge debt) and they think the flipping business is finished. When the market stops increasing for flippers, it can be a bonus, as the price for buying properties stops going up, which means really great home become more affordable, which means the market for the less desirable homes becomes saturated, and all of a sudden you have your pick of the litter. Your opportunities for success can actually go up in a stagnant or declining housing market.

If you are beginning in this business your perspective should be one of creating equity. See your property flip as an opportunity to take something that is not worth much, add something to it, and provide it to someone who will pay top dollar. It shouldn’t matter that the market itself is not appreciating in value, because you are creating value and equity completely separate and apart from the market!

Remember this any time a naysayer tells you your real estate dreams are far-fetched. You don’t need market increases to flourish. All market increases do is boost your profit margins. All you really need is the right property in the right neighborhood that needs the right fixes. Find those three things and it doesn’t matter what the market does, you can be successful.

STRATEGIES TO SAVE MONEY FOR THE SAVY REAL ESTATE PURCHASER

As real estate attorneys, we are often asked by our clients how they can save money when purchasing real estate. They are grateful to us for any suggestions that we can make which result in money remaining in their pockets and/or pocketbooks. The following is a list of strategies that purchasers can use to save money on lender fees, title company closing fees and other related fees.

Lender Fees

● If your credit score is less than perfect, you should consider pre-qualifying with numerous lenders to avoid paying application fees to each one.

● Have your Good Faith Estimate of closing costs reviewed by your real estate attorney who can determine if the fees being charged are unusually high before you decide whether to use a particular lender.

● Never sign a Loan Commitment which is not fully completed by a lender to avoid additional charges appearing at the closing table.

● Avoid paying lender's Private Mortgage Insurance (PMI) by borrowing 80% or less of the purchase price thereby decreasing your monthly mortgage payments. Should more money be needed, consider applying for an additional home equity line of credit ("HELOC").

● Be weary of locking in an interest rate too early or for too short a period. Rate lock extension fees can be substantial and most transactions take approximately 60 days to close (or longer for cooperative units).

● Try to schedule your closing at the end of the month to reduce the amount of prepaid interest that the lender will take at the closing.

● When a lender does not require you to do so, do not escrow for real property taxes and hazard insurance. This will leave you with more cash in hand after the closing and reduce your monthly mortgage payments.

Title Company Fees

● When taxes and insurance are not escrowed, the lender may also not require the title closer to pick up the next real property tax payment at the closing thereby saving you the title company's escrow service fee. And, if the new tax amount is unknown, you will avoid having the title company hold a substantially higher amount pending the determination and payment of the tax and then waiting for a refund of the overage. Alternatively, if the sum is known, request to make the check payable directly to the taxing authority rather than having the sum included in your title bill to avoid paying the title company's escrow service fee.

● Consider declining the Market Value Rider offered by the title company (which increases the insurance amount to the higher of the value of the property and its purchase price, in case the title company is liable for damages due to a mistake). The price of the Rider is usually at least a few hundred dollars, however, statistically title companies rarely make a mistake which obligates them to pay out the full property value.

● Inquire into whether your attorney and/or title company has attempted to locate a survey of the property being purchased. Ordering a new one can cost over $500.00.

● While title closers customarily receive a gratuity from the purchaser at closing, you should review the title bill to ascertain whether the title closer has added a fee for his/her services. The purchaser should be able to decide the amount of the gratuity to be given.

● If a property is being transferred between family members, consider not obtaining title insurance (which may be required by the lender if the purchase is being financed). However, it is unwise to accept title until you have completed and reviewed a title search to reveal whether there are any existing liens.

Miscellaneous

● If the seller retains post-closing possession, make sure that your attorney holds sufficient funds in escrow to cover the cost of repairs in case any problems (plumbing, heating, electrical, etc.) are discovered once seller relinquishes possession.

● Note the termite provision in your contract of sale. Most require the seller to repair any damage if an inspection is done and the seller's attorney is advised of the extent of the damage within a specific period of time. However, if you miss the deadline, the sellers are no longer obligated to make repairs.

Making Money From Buy To Let

Rising house prices and a strong economy make highly favorable conditions for a buy-to-let real estate project. A particularly effective investment, a buy-to-let leaves you with an asset which appreciates in value over the years, in addition to a sustainable rental income accounting for up to seven or eight percent of the overall value of the property year on year. However, requiring a substantial investment up-front, and an ongoing financial and time dedication, the buy-to-let is far from an easy project.

To begin with, you firstly need to analyze areas with potential for high rental income, and low property prices. This means you need to look for somewhere with a high demand for rental properties, and a low demand for ownership. One of the best areas for a buy to let project is near a University or college - students will always need somewhere nearby to live, and will be willing to pay excessively for that prime spot. Another option available to you is to find an older property, or a property which requires some degree of renovation. This will ultimately mean you're paying less on the purchase price, which should allow you to make more on the subsequent rental income.

For most of us, this means raising finance. There are a number of different approaches you can take towards this, namely setting up a limited liability company to raise funds, or by staking your own neck with the bank. Either way, bank funding is likely to be the only real source for the amount of capital you'll require, although you might find special deals on long-term loans for this purpose. You will probably also be expected to put up a substantial deposit from your own funds, so again, it's good to have some spare cash floating around.

After you've bought the property and begun renovation work, it's time to find some tenants. It is crucial at this stage that you check the legal implications of taking on tenants, and understand your obligations and responsibilities as landlord. On top of that, make sure you check all references from tenants to ensure reliability in terms of rent payments. This way, you can reduce the risk of having a non-paying tenant, which could ultimately ruin your venture and destroy profitability.

All in all, the buy-to-let project is a great way to realize an eventual sustainable income, although it is definitely no easy task. By working at it, and ensuring you have fully done your home work, you should eventually end up with a sustainable business which can provide you with an ongoing income and a perpetually appreciating asset.

Guidelines in Seeking Mortgage Loan

BusinessIf you are planning to buy a home, you have to settle your financing first. Definitely, each of us want to have their very own home, but buying one is not that simply, there are factors that you need to consider and think about.

When wanting to buy a home, you do not simply go to the market and search for your desired home. You have to assure yourself that you have the means to have it in order to avoid frustration.

You have to look for a mortgage loan so to have the means to have your dream home. This article will give you certain guidelines that you can make use of in going for a mortgage loan.

Check your credit reports in advance before you go out and seek for a mortgage loan. It is best to check out your credit report every 6 months. Within this period, it can provide you sufficient time to make amends in the credit ratings especially if the credit score are low.

Do not just go with a particular lender, shop around, there are a lot of lenders out there. Due to the high demands, more and more lenders are offering incentives with their mortgage loans in order to attract customers. So you have to contact or visit several lenders, ask for details. You have to know the quotes, rates that they offer. Gain better understanding with each quote. Why don’t you negotiate? It is best to negotiate with the lender about the interest rates and other costs of the mortgage loan.

Be alert, you have to understand the costs that the mortgage loan have. It is recommended to seek for advice from a legal professional in order to gain information about the real estate law and so on.

In seeking for mortgage loan, never sign the loan contract quickly. You have to understand everything that is written in the contract, make sure that the agreement that you have talked about is written in the contact. Assure yourself that what is written there is correct and precise.

Do not make any assumptions. Every detail should be written on paper. Ask all important questions. Make sure that you are clarified with all the queries and questions that you have in mind regarding the mortgage loan. Make sure that every detail are documented, all should be written in the contract. Never do assumptions, since these can make you lose plenty of money.

As soon as you gain mortgage loan, you can start seeking for your dream home. Settling financing is important, it can make you prepared enough in finding your dream home. So in order to make sure to successfully gain your dream home, settle your finances and make sure you will have an approved mortgage before going to the market and seek for your dream home.

Real Estate Investing - Don't Just Jump Into It

Who wants to know about real estate investing. Well I'm among those who have experiences to share, some good and some not so good. Real estate investing can be a tool or vice toward aquiring income generating assets. Like anything worth having, one must be williing to make the necessary sacrifice to attain what is most desired.

As a Realtor, I come in contact with alot of investors. I meet many investors who previously purchased properties without using a Realtor. Below are one investors true real life experiences.

He became a licensed loan officer in 03. Along with becoming a loan officer, he had aspirations of becoming a real estate investor. He just knew he could make money as an investor. As a loan officer, he learned the different investor loan programs, and he came in contact with other investors which he could learn from or that could mentor him toward taking the next step.

He was introduced to an investor through a friend that was interested in and actually investing in real estate himself. The investor told him about a property that was available for purchase, rent ready and a renter was lined up to move in. He went to Fayetteville and looked at the house - not having the slightest idea what to look for. Things like structural damage, plumbing, infestation; things that a home inspection would cover. Yes, he purchased the home without a home inspection. He'll never do that again! If he would have hired a Realtor, the Realtor would have recommended a home inspection.

The house had 3 bedrooms, 1 bath, built in 1942. The repairs needed included a new roof, new windows, HVAC, landscaping, paint inside and outside trim, pressure wash outside, sand down fascia boards, masonry work and new outside doors. Sounds like a lot and it was for a new loan officer living from paycheck to paycheck. He did his best - just making the monthly mortgage payment. The renters were not the most studious at paying rent. Barely having money to make the mortgage payment, he really didn't have the money to evict the tenants.

Guess what, 3 months later he purchased another investment property. This one was purchased at 80% loan to value. He did not bring any money to the table, please do not ask. He really did not know how it all went down. He went into another real estate transaction with no earthly idea of what he was getting himself into. He had great credit. He went stated income for loan purposes, knowing good and well, he could not afford the mortgage payments if the renters stopped paying and of course, they did.

His credit score fell from a 745 to a 502. He had 3 lates on both mortgages with foreclosure threatening. His friend loaned him the money to bring the mortgages current. He was able to evict both tenants and acquired new tenants. All the while, he made new contacts and was able to sell the 2nd house for $8000 more that he paid for it. Of course, he sold it to another investor who purchased the property at 70% loan to value.

The second house did not need as much work as the first. It was all brick and 3 bedrooms and 1.5 baths. It needed simple lipstick and eyeliner, about $500 to $1500 worth of work. So it was easy to sell.

He still has the first property and he's actually had most of the work done. He had a new roof put on in Nov 07 and some other cosmetic work. It still needs some work but he's ready to sell and move on to another project. He's been a loan officer and real estate investor for 4 years now. Over those 4 years he's experienced the ups and downs of the mortgage industry and real estate investment side. It is important to learn as much as possible about real estate investing before you jump in. Take classes and spend time financially educating yourself. The first move toward any endeavor is preparation and training toward the task at hand.

His involvement in financial education courses, attending real estate investment seminars, and purchasing other real estate investments has proven to be beneficial and quite rewarding. He was willing to make the necessary sacrifices to be successful in the end.

Many of his issues could have been avoided if he would have used a Realtor. Many people don't know that you can hire a Realtor/Buyer's Agent for FREE. The Buyer's Agent would've looked out for his best interests.

What is the right time to invest in real estate?

Unless you were hiding inside caves or living in the so-called dream-world, you must have heard about the slowdown in real estate markets worldwide. And just as with any other hyped-up bull market, a lot of people who had bet that prices would rise forever are getting surprises. Nevertheless, buying real estate is an investment and buying during the dips - while prices are falling - can lead to gains over time. Find some hot listings.

But remember, investing in real estate is quite unlike buying stocks. The racks at book shops, TV Shows, Corporate Handouts, and Internet Web Portals or Blogs may be overflowing with books and ideas insisting that many are making their fortunes in real estate, but the truth is, compared with stocks, real estate is a complex, multi-dimensional investment. So, if you have to buy a new home to live-in and can afford it, just buy - whether the market is up or down. Property ownership is the best overall investment, and when you look at the complete picture, it is true - there are many tax and financial advantages to owning a home, and most properties do tend to appreciate over the longer term.

But the idea of real estate investment returns should consider major property buying drivers like cost, location, condition, rental value and choice. The bottom-line is, investment property is a piece of real estate that generates income - more income than it costs to own and maintain. Whether it is a beach condo or office space, the biggest consideration is income from it must exceed the cost. The cost includes everything: loan payments, taxes, upkeep, utilities, etc.

The buying decision is not fully dependent on whether the real estate market is up or down. If you want to make a stock market type investment in real estate, consider investing in real estate mutual funds or trusts. There are many realty funds now available to Indian Investors, and as they always advise, do read the offer documents before investing!

Is Being A Real Estate Investor in Your Future?

There's no doubt about it--real estate investing is the proven path to long-term wealth and building a secure future for yourself and family. So, should you invest in real estate? Well, I'm a plain-spoken guy, so here's the answer: "Yes" with several big IFs attached. If you're passionate about it, then real estate investing is a great career for you. No doubt about it--great passion launches great careers! Excitement, enthusiasm, a burning desire to learn--these are all factors that create enjoyable careers and the wealth that comes with them. Those are the emotions that light the fire for a successful real estate investment career. But, that "blaze" must be kept burning by a long-term commitment and a willingness to overcome every obstacle in your way. In most cases, real estate investment is not a shortcut to wealth, despite what many of the so-called "gurus" say. It takes patience and perseverance to build that road to success, but once you have it built, it's a super highway with income flowing freely into your bank account. If you're willing to sacrifice, then real estate investing is a great career for you. This advice is aimed at those of you who are new to real estate investment. No matter what the "No money down!" charlatans tell you, money is required to become a success in real estate. If you can't pay, you won't play! So, if you don't have much cash to invest at the beginning, you're going to have to accumulate it. And, unless you have a rich aunt or uncle to back your efforts, that means sacrifice on your part. In other words, you should be forgoing movies, the latest video game, the latest clothing fashions, etc. and putting the money you would spend on those items into a "seed" account to fund and grow your real estate investments. If you're not willing to sacrifice, then it's likely you'd be more comfortable in a salaried job.

If you like to deal with people, then real estate investing is a great career for you. As an investor, you should be able to "crunch the numbers" with the best of them, of course, but real estate investment is really about "people skills." After all, you'll be dealing with lenders, real estate agents, tenants, mortgage brokers, and others. The real estate "game" is all about negotiating expertly with others. In fact, the best investors love being a player in the negotiation game. It's part of the excitement and thrill of a wonderful profession. But with every thrill comes a "downside";e.g., cranky tenants, unexpected vacancies, plumbing leaks, etc. So, you have to be tough enough to handle physical property problems and human feelings. So, if you have that combination of tact and toughness--or are willing to develop it--then real estate investing is definitely a career for you.

So, my advice is to take a long, hard honest look at yourself and the questions I just posed. If, after due consideration, you answer "Yes!" to all three questions, then--congratulations!--you have a wonderful real estate investment future ahead of you!

Making Money With Real Estate With Nothing Down And Nothing A Month

At one time I owned 166 single family houses that I had bought with a minimum down payment by taking title subject to the existing financing. From the first house I bought, I used only seller financing and avoided negative cash flow problems primarily because I couldn't afford to take anything out of my meager earnings to support it. That means that I had to find ways to buy highly leveraged houses that could support themselves with a little left over for me.

My all time favorite way to buy houses in contrast to lease/Optioning houses, is to "cold canvass" neighborhoods that I want to own long term rental houses in to find a homeowner with a big equity who has to relocate out of town either because of financial distress or personal reasons. When I found such owners, in contrast to others who might have approached them with low offers, I offered to pay full appraised retail value for the seller's large equity and to take over relatively low payments so long as they were far below prevailing rents for the upscale house.

The catch was that I agreed to pay the sellers just enough money down to enable them to pay the moving company, and nothing more - neither interest nor principal -- until I sold the house at a price that would net me at least 10% profit over all my expenses.

Included in my expenses would be vacancies, repairs, taxes, insurance, mortgage payments, marketing, commissions, and settlement costs in addition to the fair market value of my management effort based upon 10% of collected rents. I usually specified that the seller would be paid no later than 5 years hence regardless whether or not I had been able to sell the house.

One day I noticed that I had a lot of balloon Notes coming due in five years, so I changed the maximum holding period to 6 years, then to 7 years. When I tried for 8, I got a lot of resistance, so stopped at 7 years.

The magic in this formula is that I was able to buy much better houses to hold for long term appreciation with very high leverage and positive cash flow that I could use to offset negative cash flow from other houses.

When I hear people mewing about not being able to buy good houses that will cash flow today, I get a little vexed that they haven't taken the time to invest in themselves by learning how structure a creative seller financing transaction that can solve problems for both seller and buyer; particularly cash flow problems.

What do you do when a seller is willing to meet your price, but wants some cash to solve his problems? Let me tell you about one such person. He was a baggage handler at the airport who wanted to sell his a house that I had sold him a few years back. (It always pays to maintain contact with old customers to whom you've sold or financed houses so they'll call you when they want to sell, or buy another one.)

He wanted $10,000 cash for his house and wanted me to take title subject to the first mortgage loan. The house had appreciated a lot since he had bought it and he didn't really want to move, but he needed $10,000 to pay some pressing family bills. The problem for me was to find the money to solve his problem. A natural inclination would be to go to the bank and borrow what I needed, but I've never done that. I pride myself on the fact that I've only signed personally on one loan; my VA loan which I paid off within a year by selling the house. All the hundreds of houses I've bought over the decades have been bought by taking title subject to existing loans and with seller financing.

Take a little test for me: Before going any further; how would you raise $10,000 without going to the bank or signing personally on a loan?

In the case at hand, the solution was fairly simple. I called one of my team of professionals, a 'can-do" mortgage broker who has both private and institutional sources of financing. He arranged a 5.5% home equity loan on the house that the owner signed. I then took title to the house subject to both the first and second liens. The owner then leased the house from me on a net basis for the amount of the first lien payments.

The payments on the home equity loan created negative cash flow each month, but I had a motivated occupant who swiftly forgot that he was a tenant and continued to upgrade the property; and I bought the $10,000 property equity above both loans with nothing down and only a little over $110 per month payments. As far as the seller was concerned, the $10,000 was at no cost, since they never had to make payments on it.

Why would he sell me the house with this financing rather than to sell it on the open market to raise cash. Because he really didn't want to move into an apartment or another house with higher payments; and have to put his kids into different schools. Being able to stay in the house was what he really wanted, and my purchase allowed him to do that.

Investment Buying in Warm Climates

Although there has been a nationwide pull back in realty sales, some areas have avoided the price plunges. Why is this? Media hype is telling us that the financial market is affecting house prices, and yet some areas are still smiling. Often it is the areas with the pleasant winter climates, the type of area that the 'snowbirds' often travel to. For instance, one of these sunny areas has reported increases in realty sales of up to 20% in the last two years.

Everyone wants to invest their real estate dollars into a safe price market, but these shifts can be unnerving - unless they can be understood.

In this case, the fact that some areas have not plummeted can be puzzling, until you put the baby boomers into the equation. It is logical that they will be affecting the situation. They account for a very large part of any population. One theory is that they will be the last generation to have an adequate pension, and they can therefore afford to move cities to pursue their retirement dream.

When retirement time arrives, it often means that a move will be anticipated. Sometimes it will simply be downscaling in size and staying in the same area to keep friends and loved ones close by. In other circumstances, it may require a complete change of scenery to pursue a dream or to join loved ones. Either way, it probably involves buying and selling a home.

Prime retirement areas are still experiencing above average sales. And that is the clincher. Many of the areas that are still experiencing a robust realty market are markets that appeal to the retirement age groups. The baby boomers are only just beginning to retire, and most of them still only thinking about it. This is because the oldest boomers are still only 61, with most working until age 65. The (birth) boom started in 1946, when life returned to normal after the war!

Many baby boomers are buying their retirement home in advance of their retirement, to finance it before they give up the salary and the pension kicks in. If you are a baby boomer it is good sense to get in now before the real rush happens in 2011 (when the first wave of baby boomers reach 65)

This means it is still a good time to buy a home and expect a profit in many of these choice areas. Baby boomers are flocking to the warmer climes of USA and even further south. Many of the southern coastal areas of USA still have bargains to be snapped up, but there will not be so many as 2011 approaches. For anyone looking to invest in real estate, these southern coastal areas are beckoning. A home bought now, and re-sold when the baby boomers start flying south, will probably reap big profits!

The Ultimate No Money Down Real Estate Investing Secret Revealed!

You've seen the infomercials. You've heard to amazing no money down real estate hype. Every course claims to have something that no one else has. You've seen systems advertised for hundreds of dollars, and seminars that costs thousands of dollars to attend. You always wanted to know how this "no money down" investing technique worked, but you never had big money to find out.

Now I am going to reveal the secret that virtually every real estate investing course, book, & seminar teaches as the "no money down" technique. I don't mean to belittle these other courses, in fact I've bought most of them myself. I absolutely LOVE this technique. It's my favorite investing technique and I've used it to create profit on deals that seemed hopeless.

The best part about this technique is that it's easy to implement and there is profit potential oozing out of every step of the deal. In a moment you'll learn a strategy that you can use to get:

1. Positive monthly cash flow on virtually any property (even run down properties that you don't want to fix up).
2. Up front spendable cash in your pocket that's yours to keep forever once you implement the technique. You'll have an opportunity to make even more money from the deal later, but no matter what happens, this up front money is your to keep forever.
3. Higher than current appraised market value on your property. If your property is worth only $100,000, you'll be able to literally name your price and get $110,000 to $120,000 and possibly more for your property when you implement this technique. This allows you to lock in future appreciation (i.e. the amount of money the property will go up in value over time) on the property.
4. Avoid hassles associated with property management. You won't be fixing toilets, doing construction or cutting any grass. You'll learn how to have the buyer for your property do all of this for you.

This technique sounds amazing, and it truly is! This one technique is responsible for why you find 90% of those super sexy real estate investing courses so jaw-droppingly appealing. The truth is that this *secret* deserves all of the intrigue, secrecy and hush-hushness that's been surrounding it because it's soooooo amazingly profitable.

If you haven't been using this secret in your Real Estate Investing endeavors, you really must start implementing it right now. I'm telling you about this secret for free in this article right now because I want to ensure your success. I care about you and want you to see what I've seen that can produce turbo-charged super effective investing results on steroids. Once you understand this secret and how to implement it, you'll have an unprecedented opportunity to turn almost any real estate investment into a profitable golden egg!

I'm so glad that the secret is finally revealed, and look forward to hearing your success stories with the "Ultimate No-Money Down Real Estate Investing Secret." Use this secret wisely and share it with your cherished friends and beloved family members or anyone else you want to pay it forward to and do them a solid by changing their life forever for the better!

Real Estate Branding Spree - On Top of Mind!

With their one-shot and short-term profit gathering approach, most real estate players in India have a negative trust in market. To regain image, now their branding efforts is moving beyond traditional media planning. They have corporate campaigns apart from project specific one's and are increasingly and aggressively using the electronic mediums.

Firms that remain locked in the tunnel vision of traditional branding practices will fail to see the crisis, fail to understand it, fail to act on it, and ultimately find their brands suffering. Firms that expand their view to include social-paradigm based practices will see the crisis developing, be able to interpret it, experiment with approaches to addressing it, and seize competitive advantage and profits from its resolution.

For example, DLF has sponsored events like DLF Cup, Tri Series and the UAE Cup, Nasscom CEO Meet, and so on. They are spending time with consumers to see how satisfied they are with their decision. EmaarMGF is stepping up its brand building initiatives. Their most recent association was with international cricket tournaments, to get attract Indian eyballs for their future projects here!

Many are also sponsoring industry-specific events across sectors like retail, financial services and so on. Everyone in the real estate industry are making concrete efforts to craft their brand image. Purvankara, Eros, Vipul, Omaxe, etc. are making efforts to propel their image in the market.

Apart from the basic expectations, the increasing number of players in the space and the fact that players are now evolving as national region players, brand building is nothing but the need of the hour so as to cut across the competition. As many companies are listed on the stock market, it's now a dispensable to follow so as to maintain a continuous touch with their investors. Increasing stock listing rush is also fueling those who are unlisted.

The Internet has always been and always will be a direct response vehicle, but so it is with branding. How did you first become aware of Google.com? Was it by watching Harbhajan Singh bowling something related to this name in a cricket match or perhaps did a friend tell you about this great search site? Were you looking for tall women or did you notice a banner for a company with the seemingly unrelated name in search business? Branding has been a part of the Internet since commercialization began. Extending this, Real Estate Times relates to it's segment.

Almost all the realty companies have doubled their branding expenditures. The investments towards the purpose are backed by the growth in the sector and ultimately the sterling performance of all the companies and are heavily enjoying the sail in black. Almost all the companies witnessed a quantum jump in profits (by more than 50%).

Fact remains that with the Indian consumers becoming more demanding and increasing participation of global investors, it has become necessary to brand almost every thing and real estate is no exception. As we move ahead, it's quite clear that marketers are looking to consolidate brands and invest their resources behind those that can perform on a global basis. Once the strategic decision has been made about which brands will be elevated to this status, considerable effort will be required to determine the degree of consistency that is appropriate and the means of achieving that consistency will then be used more efficiently achieving broad-based brand recognition and conveying a cohesive message worldwide.

Wholesaling Real Estate - Low Risk Investing

Wholesaling real estate can be a great way to get into real estate investing without much cash. It is also very low-risk when done right. But contrary to what many real estate gurus say, you can't necessarily do it anywhere. It will work best where there are investors ready to take the properties from you. This generally means it works best in larger towns and cities.

To understand this, let's look at what wholesaling real estate means. As you might guess, it essentially is buying cheap to sell for a profit to another investor. This other investor is the one who will then retail the property to the final buyer.

Now, if you were to actually buy a house or other real estate and close on it, you would have transactions costs. There would be more transaction costs when you sell to the next investor. Then there would be more transaction costs when he sold the property to the final buyer. As you can imagine, these costs would mean that you have to buy really cheap to leave room for a profit for you and the next investor.

For example, suppose you find a seller who really wants to sell fast, and has a house worth $200,000. By the time you close, hold the property for some time, and sell, you might pay as much as $6,000 in various costs. The other investor may want to use a real estate broker to sell, so his costs might total $12,000 or more. If you wanted to make $5,000 for your efforts, and the other investor wanted to make $10,000, you would have to get the house for $167,000 (subtract all the costs and profit from the eventually sales price of $200,000).

Of course, you won't be able to close many deals like this. The seller can probably sell fast enough just by dropping the price to $185,000, so why sell to you for less? As you can imagine, this isn't how real estate wholesaling is typically done.

First of all, you won't typically close on a property. Instead, you will sell the contract to the next investor, and so avoid all the costs associated with your buying and selling the property. Secondly, wholesaling real estate works best with fixer-uppers. Sellers cannot easily sell these on there own without doing the necessary repairs, so they are willing to sell cheap to get rid of their problem. With these two things in mind, lets look at a more realistic example.

Example of Wholesaling Real Estate

Let's start at the beginning. You look at the market, do some research and decide that you may be able to wholesale properties where you are. You join the local real estate investor's club and get to know some people. In particular, you get the names and phone numbers of at least several investors who can make a decision quickly and want to buy fixer-uppers. You should also make a note as to the type of properties each is interested in plus how much profit they expect to make on a project.

Now you go out to look for properties. Eventually you find a motivated seller who is asking $190,000 for a dirty house with problems. You compare it to others in the area and determine that it will be worth about $235,000 when it is cleaned and fixed up. It needs about $15,000 worth of work. Other costs, including a low-cost real estate broker, will run about $15,000, based on a holding time of about four months before it is sold and closed.

You want to make $5,000 for your time, and your most likely investor wants around $20,000 profit in a deal. Subtracting these and the costs, you arrive at $180,000 ($235,000 - $15,000 - $15,000 - $5,000 - $20,000 = $180,000). This is the most you can offer. You start with an offer of $173,000 and eventually the seller agrees to $177,000.

In the contract, after your name as the buyer, you put the words "or assigns" or something similar (ask a real estate lawyer for the language that is used where you are). This gives you the right to assign the contract to another investor, who will take your place and actually close the deal. Explain to the seller that this is so you can bring a partner in to be sure that the deal closes (in other words, make this a good point rather than a problem).

You also put in the contract a financing contingency with specific terms. This could be something like "This offer subject to buyer obtaining a fixed-rate 30-year mortgage loan at 7.5% annual interest or less." Alternately, you can have a clause that requires the approval of your "partner" or some other way to cancel the contract if it won't work for you. You might also want to ask an attorney how to write a clause that makes your deposit "liquidated damages," meaning that is all the seller gets if you have to back out for any reason. With the proper clauses in the offer, all you risk is your time, and perhaps the $500 good faith deposit.

Now you call your investor who will take your place, complete the repairs and retail the property. For $7,000 you assign the contract to him (however, he may not be willing to pay until the deal closes). If all goes well, he might sell the renovated property for $240,000 and make a profit of $25,000. Good for him - the more he makes, the more likely it is that you can wholesale real estate to him in the future. Your $7,000 profit requires very little investment or risk, however, so you are happy with the result as well.

Wholesaling real estate is about speed as much as anything. You may have only a few days or a week to find an investor once you have a signed contract, and the investor needs a property that sells fast to avoid holding costs. To make this work, then, you'll want a list of investors ready before you start looking for properties. You should also focus on the houses that are selling fastest - probably those that are near the median price for the area.

Winter Wonderland: Spruce-up Curb Appeal with Winter Landscaping

There is a trend toward home buyers who are attracted to year-round, outdoor visual flair. Whether you are staging your home for potential buyers, or yearning a garden that blooms forth in the winter, there are several colorful ideas for creating a winter paradise in your own backyard.

Consider that although different in tone and hue from electric summer bloomers, there are plants that will bring great color accents to your winter garden.

Witch Hazel is a shrub that has a late autumn to winter bloom. Yellow, gold, orange or red flowers arrive in the winter months. These flowers look like mini firecrackers .What a way to bring in the festive season!

The Dogwood Arctic Fire is a new species. This smaller dogwood shrub is great for smaller gardens and residential landscapes. The long, bold red stems of this dwarf plant make for a wonderful show in the wintertime and the stems are stunning in seasonal arrangements and wreaths.

The Burning Bush is another one with great scarlet red color. The deep dark red leaves almost glow and the corky wings on the twigs hold winter snow, creating a beautiful outline of the branch's structure.

Japanese pieris is an evergreen shrub that produces lily -of-the-valley like flowers. Bunches of the flowers hang in clusters, like bells ringing in the festive season. The flowers bloom red, white or pink and look gorgeous against the shrub's bright green leaves.

Heathers are great sturdy shrubs. Heathers bloom in white, pink, purple and deep reds and offer myriad choices for stellar color combinations.

Winter jasmine is a rambling, trainable shrub that blooms lovely yellow jasmine blossoms in late autumn through winter.

Speaking of trainable plants, consider creating a unique winter space with hard scape design elements. Rustically designed arbors, gazebos and stone walls add an alluring design element to any winter landscape. You can then train your jasmine or other trainable shrubs to weave around them. This will add an interesting dynamic in terms of color and height variance. Tall, ornamental grasses also work well to soften up and blend your design elements.

Remember that in order to create the perfect winter garden you should start putting your dream into action in the spring and summer months. With some foresight, the right combination of winter plants and a few design elements, everyone will want to walk through your winter wonderland!

Real Estate Investing Guide

Everyone is looking for the best and profitable form of investment. And that means high returns and low risk. A lot of people focus on the stock market but as we all know, stock market is quite volatile these days. Real estate investment is still the better option to go.

But before you become a real estate investor, there are terms and strategies that you need to be familiar of. There are two main types of properties available in the market, residential and business.

Residential properties can either be single family or multi-family type. Multi-family units are like condominiums or town houses. Single-family units are independent and have an own backyard.

Business real estate properties can be office buildings or manufacturing sites. Visibly, the main differences between residential and business real estate properties are the finances involved and as well as the rules and guidelines in obtaining the property.

Investing in a residential property is the simpler choice. Before you decide on your first residential property, it is important to conduct a research on the following areas:

a) Market value Research for comparative rates of neighboring properties is important, as this will give you a lead on how much the property is worth.

b) Location Proximity to schools, supermarkets or train stations are some of the considerations that potential buyers look into.

c) Neighborhood Safety and the type of neighborhood are also critical in every investment.

There are three main residential investment types. First is to buy a property, live in the property and do some fixes along the way. You can then sell the property once the market is ripe.

Second type is what is called “flipping properties”. This type is a good way to maximize the profits of your investment. Flipping properties involves finding a property that is under priced at the current market rate. Examples are the abandoned houses or neglected homes that are sold at usually lower price. Once you get the paper work done, you can start doing the renovations and after that re-sell to the market at a much higher price. In some cases, the buyers hold on the property for only several months and after that sell back to the market. This is an easier way to get a faster return of investment but you should be careful also in choosing the property. Depending on your budget, choose the property that needs only light fixes and not major renovations that will incur even higher costs than buying other market value properties.

The third type of residential investment is rental properties. This means you will be a landlord renting out houses or rooms to the tenants. This is also a good form of investment but do note that as the property owner, you need to take care of the maintenance costs of the property.

If you think there is much work that needs to be done in finding the right property, you can always hire real estate agents to help you. Just make sure you communicate your requirements well and your considerations to the agent.

Most importantly at the end of the deal, make sure you have the title or deeds and other necessary documentations involved in the property.

Real Estate Investing Course

There are many types of courses available to learn real estate investment. There are home study courses, online courses and books that you can purchase to study real estate investment. The choices can be very overwhelming so it is very important for you to know how to choose the right course for you.

Try searching in the Internet and you can easily find hundreds of courses and e-books. Most will talk about why it is good for you, why it's the best form of investment available. But they are not really teaching you the strategies.

Here is the list of the important points that you should learn in the course and these can guide you in choosing the right course.

1) Understand the "flipping property" process. This system is one of the most recommended techniques in real estate investment. This involves buying an under-priced property, doing some fixes and sell at market value within a short period of time. Sounds easy but there are a lot more to learn on this system. You need to understand how to choose the property, what to do with it, when to sell, etc.

2) There are many vacant and abandoned houses which you can make profit. But you need to know how to find the owners and how to search for such houses.

3) You also need to learn how to determine the value of the property. You need to assess the cost involved in the renovation or repairs. Some investors employ the help of professional agents to help them calculate the value of the property. This can be costly so it will be better if you yourself know how to assess a property.

4) Another important thing you need to learn is how to sell to potential buyers. There are strategies on how to make your presentation appealing to the buyers. For example, Investors and insurance agents invest some amount of their earnings on training courses on how to improve the marketing and presentation to influence more buyers. How you present your offer is very important in closing a deal.

5) Next, you have to learn what you need to put on your sales page. Do you know that investors pay thousands of dollars to copywriters just to create one powerful sales pitch? This is because the sales page is the backbone of your business. This will help you gain a list of potential buyers.

6) You also need to learn how to determine the purchase price of a property.

It will also be better if the course is available in CD's so that you can repeat the lessons as many times you want.

Make sure that the course that you will choose can at least answer the questions listed above. There are online courses offering question and answer sessions. This is good as you can have a more interactive learning.

Enjoy the learning process and make sure to put it into use.

How To Invest In Out-of-State Real Estate

The process of investing in out-of-state real estate is not any different than investing in real estate in your own community. You have two choices. You can do it on your own or you can work with a professional and reputable real estate company.

To an extent, investing in out-of-state properties has developed a negative stigma because investors have had bad experiences. Sometimes the problems arise because an investor "jumped" into a situation based on poor information provided by a friend, family member or business associate. Other times a bad situation is created by individuals or companies who are promoting themselves as "experts" in out-of-state real estate investing. Frankly, many out-of-state real estate companies don't have any idea what they are recommending, have never been to the area they are recommending you invest in, and don't care what you buy. They are simply looking for a way to get a pay check.

Before you invest, ask these questions:

1) Are they licensed and do they carry the proper insurance?

2) Is working with investors to purchase out-of-state properties the only focus of their business or is it something they do part time?

3) If they are a mortgage company, do they only recommend that you invest in areas/states where they are licensed to write loans? If so, what does that tell you?

4) What type of research do they conduct? Do they travel to every location they recommend? What demographic studies have they done? What reports have they read? Do they subscribe to any real estate investment newsletters they could recommend you read?

5) What services to they provide? Do they provide referrals for brokers, property managers and mortgage companies? Do they provide an escrow coordinator throughout the escrow process?

6) Are they recommending you become a speculator or an investor? (Speculator: get rich quick, big promises, take a chance. Investor: long term, buy & hold to create wealth)

7) What areas are they recommending you invest in? We can't stress this enough. Are they doing what is easiest for them or best for you? Ask them for verification for everything you're told (rental comps, sales comps, cash flow analysis, current appreciation rates - not last year's appreciation rates, projections and demographics).

8) What types of properties are they recommending you buy? Are they matching your goals, tolerance level and financial abilities with properties that will help you achieve your goals? Or are they just selling you anything so they can make money? DO YOUR DUE DILIGENCE!

9) How long have they been in business of out-of-state real estate investing?

10) How many rental properties do they own and where?

How To Fill Out An 'Offer To Purchase' Real Estate Form

Before you can buy the house of your dreams, there's one very important document that you need to make and submit to a home seller. It is the offer to purchase real estate or purchase offer which usually serves as the sales contract between the buyer and the seller. Without this and the signature of both parties involved, the transaction cannot be considered legal.

A standard purchase offer form may be used in all states in the U.S. However, you can always make your own offer containing the special conditions appropriate to your needs. You just need to include all the required details to push through with the deal. It is truly essential that you fully understand the contents of a purchase offer before filling it out and submitting it to the home seller.

In making your offer to purchase the property, be sure to consider several vital factors like your financial capability, the condition of the home you want to buy and the prevailing market status. Your financial resources play an important role in determining how much down payment you can provide, what type of financing you will use and your ability to shoulder the closing costs.

Below are some of the basic information that you need to provide in a real estate purchase offer form.

Full names of the buyer and the seller. Of course, this has to be identified to make the agreement enforceable.

Address and legal description of the property. The price you are willing to pay for the house.

Terms of payment and the down payment amount. This specifies how you will finance the purchase of the property if it's through a mortgage loan or other options. It would also benefit the seller if you provide information as to your pre-approval or pre-qualification for a real estate mortgage loan. The amount and form of your earnest money deposit. This serves as a proof that you are serious in purchasing the property. It can either in be in the form of a check payable to a third party who is responsible for placing the amount in a trust account until the completion of the sale. The deposit can be credited in full towards the purchase price.

Expected date of transferring title and possession of the property.

Responsibilities of the seller in terms of a clear title transfer and deed type.

Information as to which personal properties are included in the sale. Time frame for acceptance of your offer. This stipulates the amount of time you are giving the seller to accept your purchase offer after which it will expire.

Provisions for a final home inspection before closing. Requirements that may be specific to your state or location are also included in the form. Special clauses or what are known as contingencies that need to be met to close the transaction are written above the signature block. These serve as protection for the buyer should problems arise along the way. Some of these contingencies include terms on who will pay the closing costs, the date the owner of the property should move out, the date of transferring title and possession, financing terms as well as home inspection.

As always, never fail to do your research to be able to achieve a smooth and successful transaction process.

Real Estate - Choosing a Lender

Choosing a Lender

Choosing a lender is a very important part of the process of re-financing a home. Understanding the different re-financing options and knowing how each of these options work is very important but none of this matters at all if the homeowner is unable to find a lender who is willing to offer them the rates and terms they are seeking. Choosing a lender can be a long and difficult process but there are some ways to make it easier. One simple way to make it easier is to ask for advice from friends or family members who recently re-financed. Additionally, homeowners can do their own research to determine which lenders are able to offer them the best rate. Finally the homeowner should determine whether or not the finances should be the governing factor in choosing a lender. Surprisingly enough, in most cases it is not.

Ask for Advice from Friends and Family Members

Friends and family members who recently refinanced can be a homeowner’s most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender they used. This opinion may be either positive or negative but in either case it is useful to the homeowner. If the opinion is negative the homeowner can remove this lender from their list of lenders to consider. Conversely if the lender comes highly recommended, the homeowner may consider this lender more carefully.

Comparison Shop

Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. The homeowner may even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer the homeowner more favorable rates. When comparing these quotes all of the factors should be considered to ensure the quotes are being compared fairly. For example each quote should be broken down to determine the monthly savings, total savings, etc. All of this statistical data will make it much easier for the homeowner to make a wise decision when the time comes.

Consider More than Finances

Finally, while interest rates, loan terms and other financial matters are all certainly important none of these are more important than being treated fairly by the lender. For this reason, the homeowner should carefully consider all of their lenders and should determine whether or not they feel as though the lender is responsive to his needs. For example, a lender who does not return calls in a timely fashion or answer questions truthfully and accurately may not be the ideal lender for a homeowner even if he is the lender who is offering the most favorable rates.

Additionally, homeowners should trust their instincts regarding their trust in the lender. Some lenders simply do not appear to know what they are talking about. Homeowners might be inclined to avoid these individuals because they may end up doing more harm than good during the re-financing process. Conversely some homeowners may be immediately impressed by the honesty and intelligence of another lender. In most cases, the homeowner would likely choose the second lender as long as the rates offered by each lender were comparable.