Real Estate Tips

Though “flipping” real estate has become a popular practice, it is also pretty controversial. This is mainly because people have gotten into it without considering the ramifications of their actions and, consequently, engage in some very bad practices. The clumsy flipper can anger both the buyer and the seller-not to mention get themselves into some very awkward and costly situations-by flipping real estate. However, that doesn’t mean it can’t be done.

Flipping is simply the quick selling of a property that one has just purchased. The sale may take place that very day, or even at that very closing. The idea behind this practice is, if a property appreciates and I’m just going to turn around and resell it at a profit anyway, why wait? Why not buy up a whole bunch of properties, sell them quickly and make a ton of money?

See the allure? It can be done, but it is a tricky business. You cannot be a successful flipper without using some finesse. For instance, many people think they are being hugely clever by working the seller and the buyer against each other. The flipper, who sets himself up as a middleman without the knowledge of either party, actually gets the seller to agree to sell to him, then runs to the buyer for the cash, from which he pays the seller. Using this method, he makes the purchase without even using any of his own cash. Afterward, he simply pockets the difference.

But if he has sold a property to the buyer that isn’t actually his, and the seller learns what is going on, there could be trouble. The seller, aware that the flipper is in dire straits, will probably up his price. The seller now knows the buyer is expecting that property. It is even possible that the flipper has sold the property to the buyer and is then turned down by the seller. This puts the flipper in the position of having just sold something he can’t deliver.

According to Ken McElroy, author of “The ABCs of Real Estate Investing,” there are, however, companies that flip very successfully. This is because they follow a few simple rules, such as never selling something they haven’t actually purchased. On the surface, that sounds like such a basic idea, it is not necessary to mention it. However, you would be surprised if you knew the number of people who try to get away with not following this simple rule.

The companies who flip will resell a property that very day if at all possible, but they don’t sell at the very closing where they purchased the property. Instead, thy use mailing lists they have built over time to send out bulletins that they have a property for sale. It can cost hundreds of dollars to get the word out and arrange meetings. It can also require an entire staff to do it quickly enough to make it pay off.

Because of those particular limitations, it is often not lucrative for an individual to attempt flipping properties, although, conceivably, a particularly savvy individual could indeed make it pay off. The question is, is it a good approach for you?

About the Author:
Alex Anderson Connects Investors With Florida Investment Properties and Minnesota Real Estate Investment Property in Appreciating Markets.

Articles are for a variety of topics: real-estate, mortgage

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Good Credit Is a Necessity for Daily Living
Copyright © 2005 Jeanette Joy Fisher
Real Estate Credit Help Center
http://www.recredithelp.com/

Most of us want a good credit report to obtain vehicle
financing, credit cards for emergencies and luxuries, and to
finance a home mortgage. However, beyond these consumer
loans, a great credit report makes your life easier.

Having a credit card means that you can order tickets, rent a
car, and reserve hotel rooms. Your strong credit score makes
it easy for you to arrange cell phone service and necessary
utility services, without large deposits.

Besides these conveniences, your credit report can mean that
you must pay high deposits and rates for everyday services.
Did you know that poor credit history can keep you from
getting utility connections, good telephone rates, the best
auto insurance, high-quality home owner’s insurance, or even
prevent you from getting hired?

Some utility companies set minimum standards for service
connections. If your report shows collection accounts for
prior utility bills, you may not be eligible for service at
all. And if they do agree to connect your service, you’ll
need to pay a higher deposit than another customer with good
credit, who may not need to make any deposit. The same
requirements exist for telephone services. People with high
credit scores don’t need to pay deposits for home telephone
or cell phone services.

What many people don’t realize is that good credit enables
them to get better insurance rates. High-quality, low-cost
home owner’s insurance, auto, and life insurance companies
set minimum credit standards for their policy holders. This
means that consumers with poor credit have to pay more for
less coverage. Many automobile insurance companies now base
monthly premiums on credit scores. These companies offer a
17% discount if your score is over 625 and a 25% discount if
your score is over 725. Why? Because according to consumer
surveys, people who care about their credit also take care of
their property and drive with caution.

Terrible credit can cost you a job. More and more employers
look at a candidate’s credit report and hire the person with
better credit, assuming that better credit equals better
integrity and character.

What you don’t know about your credit could be hurting you.
Don’t wait until you need your credit to work on any
problems. Strong credit translates to personal reputation.

———————————————————————
Copyright (c) 2005 Jeanette J. Fisher. All rights reserved.

Jeanette Fisher, author of “Credit Help! Get the Credit You
Need to Buy Real Estate,” helps people buy their dream home
or finance multiple investment properties. Jeanette teaches
real estate investing and Design Psychology. For help with
your credit or answers to your questions, visit the Real
Estate Help Credit Center at http://recredithelp.com/ Get
the credit you need to buy one house or twenty!

Breakfast of Failures
by Sharif Khan

“If you want to increase your success rate, double your failure rate.”
–Thomas Watson, Sr. Founder of IBM

Before the Breakfast of Champions - there was the Breakfast of Failures:

. C.S. Lewis (The Chronicles of Narnia) had over 800 rejections before
he sold even one piece of writing.

. Oprah Winfrey was not deterred when she got fired from her television
reporter’s job being told, “You’re not fit for TV.”

. Og Mandino (The Greatest Salesman in the World) had lost his family to
drink and became a homeless person before becoming an inspirational
bestselling author selling over 30 million books.

. Marie Curie, recipient of two Nobel Prizes once said, “I tried out
various experiments.and the results were sometimes unexpected. At times
I would be encouraged by a little unhoped-for success, at others I would
be in the deepest despair because of accidents and failures resulting
from my inexperience.I was taught that the way of progress is neither
swift nor easy.”

. Bill Gates and Michael Dell were college drop-outs.

. Babe Ruth had more strike-outs then any other baseball player of his
time. He also had the most home runs.

. Ann Bancroft, the first woman to travel across the ice to the North
Pole, reminisced later about not reaching a goal to cover 2,300 miles
across Antarctica (bad weather forced them to be airlifted off) on an
expedition with her sister: “Once again this [expedition] is another
successful failure.”

. After auditioning for his band, musician Eddie Bond told a young Elvis
Presley to “Stick to driving a truck, because you’ll never make it as a
singer.”

. Abe Lincoln lost his job and his sweetheart, failed miserably in
business, was defeated for state legislature, had a nervous breakdown,
was defeated for nomination for congress, lost the renomination, was
defeated for US Senate, defeated for nomination of Vice President, and
again defeated for US Senate, before being elected as the sixteenth
President of the United States.

Forget about living a ‘comfortable’ life. I’m not interested in the
items you’ve crossed off your to-do list today. I want to know: have you
failed - I mean really FAILED lately?

Sharif Khan is a professional speaker, writer, coach, and author of
Psychology of the Hero Soul, an inspirational book on awakening the hero
within and developing people’s leadership potential. For more
information, visit http://www.herosoul.com Email: sharif@herosoul.com
Tel:(416) 417-1259. Copyright C 2005 by Sharif Khan.

Refinance Benefits - Refinancing Could Save You Money

The most common reason most people refinance is to save money, but
many people refinance for various other reasons.

1. Refinancing to Lower Your Monthly Payment for an Existing Loan.
You can refinance your existing loan at a lower interest rate thus
reducing your monthly loan payments. With interest rates at their
lowest for years, you can find some excellent rates - sometimes far
much lower than what you’re paying for your current loan or
mortgage. Refinancing your mortgage or loan when rates are down
could save you hundreds of pounds every month and thousands over the
life of your loan.

2. Refinancing to Consolidate Debts.
You may choose to refinance in order to consolidate debts and
replace high-interest loans with a low-rate loan. The loans being
consolidated may include higher purchase loans, student loans and
credit cards. You can clear all your existing credit cards, loans
and other debts and replace them all with one low cost cheaper
monthly payment. On a £12,000 loan some homeowners can save in
excess of £250 a month which is a considerable saving. A debt
consolidation loan is a smart solution for anyone who has many
outgoing monthly payments. A Refinance loan allows you to repay
existing loans from the proceeds of a new loan - the loan is usually
secured on property or your home.

3. Refinancing to Reduce the Term of the Loan.
Reducing the term of your loan can help you save money over the life
of the loan. For example, refinancing from a 7-year loan to a 3-year
loan might result in higher monthly payments, but the total of the
payments (or total cost of the loan) made during the life of the
loan can be reduced significantly. You’ll also be able to build up
your equity faster. Use this free loan calculator (
http://www.commercial-mortgage-guide.org.uk/calculator/ ) to see how
the total cost of the loan reduces when the repayment period is
shortened. A refinance loan can save you thousands in interest
charges over the life of your loan.

4. Refinancing to Switch From Variable to Fixed Rates.
You can also refinance in order to switch from a variable rate loan
to a fixed rate loan. The main reason behind this type of refinance
is to obtain the stability and the security of a fixed loan. Fixed
loans are very popular when interest rates are low, whereas variable
rate loans tend to be more popular when rates are higher. When rates
are low, you can refinance to lock in low rates. When rates are
high, you may prefer the short term discounted variable rate loans
to obtain lower payments. A major benefit to refinance is the
ability to lock in a low interest rate for the duration of your
loan.

5. Refinancing to Switch from One Lender to Another.
Some lenders offer better mortgage or loan deals than others. They
may offer better customer support services, more flexible loan
repayment terms or just a service that is more suitable for your
needs. Refinancing your loan can allow you to drop your current
lender and switch to a new one with a better loan or mortgage
package.

You should carefully consider the savings you can make by
refinancing against the costs and penalties. Any homeowner can
refinance, but the point is to find a deal that will improve on your
existing mortgage or loan.

About the Author: © Copyright 2005, Bwalya Mwaba writes for the The
Commercial Mortgage Guide. Visit our website for mortgage related
news, articles, tools and more: http://www.commercial-mortgage-
guide.org.uk/. This article may be reprinted as long as all the
above links are active and clickable and this author box (byline) is
not edited.

Real Estate Buyers Beware: Get Representation… You Need Representation by Elaine VonCannon

It is the buyer’s right to seek an agent, and it is in their best interest to do so.

For Sale by Owner
When a potential buyer sees a For Sale by Owner property he or she should contact their realtor before contacting the For Sale by Owner. And when the buyer makes an offer on the For Sale by Owner Property he or she needs representation on the sale. The buyer always needs representation for many reasons.

Home Inspections
Most buyers do not know to ask for home inspections, what they cost, or who to call to do one. If there is work to be done on an inspection report, a buyer should negotiate, and a REALTOR has skill and experience at this.

New Home Sites
New home site buyers need to hire a REALTOR to look out for their interests, too. Remember, the site agent is there to protect the builder’s interest and therefore everything will be geared towards what benefits the builder, not the buyer. When registering at a new home site, be sure to include your agent’s phone number, name, and company.

Dual Agency: The Listing Agency
When a REALTOR chooses to represent the seller AND the buyer, this is considered dual agency. A buyer’s rights are not emphasized in these circumstances. Bringing a REALTOR onto the buyer’s side equalizes the sale, and gives the buyer much needed experience and professional advice.

Earnest Money Deposit
When the buyer makes an offer on a For Sale by Owner – who makes the Earnest Money deposit? How does a buyer obtain the deposit back if the contract falls through? A REALTOR will place the money in an escrow account.

Buyer’s Broker Agreement
A buyer’s broker protects the buyer’s interest in the transaction. In Virginia, the seller pays the commission, so by law the listing agent and the selling agent have to protect the seller’s interest. So, if you select a buyer’s broker to work with you on the home purchase, you will be represented in the sale.

Cost Analysis
In order to prevent overpaying for a home, a REALTOR will do a cost analysis for a buyer, to determine if the home is priced correctly. This is the same kind of analysis an appraiser would do, using comparable sales which have closed in the last three months in the area.

Escalation Clauses
Escalation clauses are applicable in markets where there is very little inventory and it is a fast selling market. The escalation clause will give you a competitive edge in procuring the home that you want when multiple offers are presented on a property. An escalation clause is not a standard feature on contractual sales.

Home Owners Association
The buyer needs to know the time frame for the Home Owners Association (HOA) packet. A buyer may be caught in buying into an HOA with high hidden fees if the timeframe is missed when he or she can exercise their right to void the contract. This will vary from state to state.

Disclosures & Disclaimers
If there has been any structural damage to the home or adverse environmental problems with the home they must be disclosed. An example of this would be asbestos wrapped pipes. If not, then a disclaimer will accompany contract. Laws on disclosure/disclaimer vary from state to state.

Well and Septic
In rural areas, where well and septic are used instead of city water, they are applicable as conditions of the contract. There are time frames for these inspections also, which vary from state to state.

Termite and Moisture
Clean termite and moister letters vary from state to state and from the timeframe that needs to be adhered to in the contract. The majority of lenders require a clean termite and moister letter prior to closing. The REALTOR in your area would know these timelines.

Referrals
If you are moving into an unfamiliar geographic location, ask your real estate agent if he or she can refer you to an agent in the area you are moving to. A REALTOR obtained through referral will help in relocating and purchasing your new home.

Select an Agent Carefully
Each For Sale by Owner buyer needs to interview a REALTOR and select one who is comfortable approaching For Sale by Owners and working with them. Do not let For Sale by Owners or new home site agents dissuade you from using an agent. He or she may say that you will pay less for the home purchase. In reality, a REALTOR’s professional advice may save you from taking a property that could become a nightmare, or help uncover a hidden jewel. Remember, if you’re searching for a home you still need a realtor, to look out for your end of the sale. Get representation on your side.

About the Author

Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Elaine is also an Accredited Buyer’s Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia.

Not All REALTORS Are Created Equal: 10 Tips for Finding One by Elaine VonCannon

I have seen home buyers and sellers less than satisfied with REALTORS who were not providing them the level of service they felt they deserved. If you take the time to find a good match, you may find your search for a home to be a rewarding experience. Here are some tips on evaluating a REALTOR.

1. If you are a seller, select a REALTOR who will advertise your property individually and distinctly.
2. A REALTOR must have a hot, up-to-date web site that changes to reflect the market.
3. Take into account the busy lifestyle of today’s professionals. Consider that most people use the internet to search for homes. Understand a REALTOR’S presence on the internet is crucial to their effectiveness.
4. If paying commission is a huge point with you, find a REALTOR who will be flexible.
5. Use a REALTOR with a national presence in the real estate market. Analyze the REALTOR’S web site as an indicator of this.
6. Choose a REALTOR with experience. If they are newly licensed, ask if the REALTOR is in a mentor program.
7. Check the REALTOR’S license by visiting your state’s department of occupational professionals web site. You can determine if the license is in good standing, read about any complaints or investigations, and see how long the REALTOR has been licensed.
8. Find a REALTOR who will research and obtain information from the source. This includes visiting a tax office or courthouse to research things like zoning or mapping topography of a home site.
9. Ask your REALTOR if they have access to more than one Multiple Listing Service (MLS) – if this is applicable in your area. Access to more MLS means increased opportunities to sell you property to qualified buyers or find the home that meets your criteria.
10. Open houses are not the way to sell homes, so do not be dazzled by a REALTOR who hosts them frequently. Often open houses attract neighbors and people not yet ready to buy.

If you take the time to find out more about the REALTOR you expect to use, you could land yourself a dream home, or a nice net gain on the home you are going to sell.

About the Author

Elaine VonCannon is a REALTOR with RE/Max Capital in Williamsburg, Virginia, and she manages investment property as part of her business. Elaine is also an Accredited Buyer’s Representative as well as a Senior Real Estate Specialist. She has helped numerous clients invest in and make money on property in Southeastern Virginia.

Local Realtor Attends “World-Class Service” Seminar by Leslie Riggs

For Further Information Call:
Jonathan Taylor (714) 815-4540
For Immediate Release

Local Realtor Attends “World-Class Service” Seminar
This past week, Orange County real estate specialist Jonathan Taylor attended an advanced customer satisfaction seminar in Palm Springs given by BY REFERRAL ONLY, a professional training company devoted to excellence and delivering “wow” service.
“I’ve lived and worked in Orange County for over 40 years,” said Taylor “My work in real estate helps build the community I love.”
During the seminar Taylor learned about common mistakes many homeowners make when selling their homes. “I came back from the seminar full of information to share with the community,” said Taylor. “Orange County is a wonderful place to live. I’m committed to making sure that home sellers and homebuyers have all the information they need to make the right decisions.”
Jonathan Taylor of First Team Real Estate has set up a free, 24-hour Consumer Awareness Hotline a1-888 281-3740 Ext 8605 that gives Orange County home sellers a behind-the-scenes peek at the most common mistakes people make when selling their homes – how not to make them – and shares tips on simple, inexpensive things to do that make homes sell for thousands of additional dollars.
“Some home sellers overinvest in expensive improvements that don’t significantly increase the value of their home,” said Taylor, “while other sellers fail to do the simple things that cost almost no money, yet always make homes sell for thousands of dollars more.
“It’s really nice to see that people are calling and getting benefit from the hotline,” added Taylor. “We get calls from people almost every week thanking us for the tips.”
Listen to Taylor’s free, 24-hour Consumer Awareness Hotline by calling 1-888 281-3740 Ext 8605

About the Author

Top Prodcer fro First Team Real Estate

How to Buy a Home with No Money Down by Garret Belisle

For many of us coming up with “the” down payment for a home is quite a struggle. There are many reasons for this, such as your income, your family needs, your savings account is well, non-existent. Not to long ago if you didn’t have at least 10 percent down you didn’t have a 10th of a percent of buying a home. As of late it can be a very affordable 5 percent or zero percent.

Okay now on to how it is done…

So let’s say you are a first time buyer (although this also works if you have already owned a home) and you simply need a break. You need a way to get into the market without spending a cent. Its called the No Money Down Mortgage, at least that’s what its called where I live, maybe its called Zero Money Down where you live but you get the idea. Now here is what is needed :

There are specific qualifications….and yes they are pretty much in this order.

Read on MacDuff….

1. An A Plus Credit History.

No recent history of any bad debt of any kind, which also includes all payments for your credit cards or shopping cards etc, etc. must be paid on time in most recent months.

2. Limited liabilities.

This means something like “Sign here….don’t move while we look into your ENTIRE credit history, but disclosure is not a bad thing, if your credit is good it will certainly work in your favour. This is done to make sure you can carry the extra debt.

3. At least 3 years of stable employment.

This needs to be verified on paper by your employer preferably or some form of financial statements. The employer is much better in most cases.

Finally. You must be able to carry large monthly payments.

Without a down payment, obviously lenders and the bank want to make sure you can handle the obligation of larger payments, The monthly payments may increase from a few to several hundred more a month but you can buy several styles of home.

This is the program in detail it is widely known and used by almost all banking institutions for greater details or understanding I highly suggest you go to your local bank and have a sit down with your financial advisor, someone you know and trust.

So in a nutshell, if the down payment is the current problem, it may no longer be with this program. You no longer need to pay your landlords mortgage, you can immediately get into a home with this program if you qualify.

And again, sorry to repeat myself but go and make an appointment to review this option with your realtor or banker or both. It’s worth taking a look at.

And always ask about mortgage leads…this will get the ball moving a little faster.

Now go get that house

About the Author

Garret Belisle runs several community blogs with advice on home buying and credit repair and currency trading to name a few.
You can view more information here :
http://www.gbcmortgage.blogspot.com
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