Finding Real Estate Owned Properties

Many people aren’t aware of term called Real Estate Owned (REO). This can actually turn out better than a foreclosure. First, a bit of background on what Real Estate Owned means. This essentially is the status of a property when the bank has tried to sell off through auction, a foreclosed property. The bank is even more motivated to get this off its books because it is basically a dead, or non-performing asset.

How do you go about finding real estate owned properties? You could talk to banks. They often have a department that handles these types of properties. But this is an extremely time consuming task. You will need to look through lists upon lists and go to different banks because they will all have a different list.

There are several services available today that can sell you foreclosed lists. But many of them don’t make Real Estate Owned properties available. So you are left with the first option of finding Real Estate Owned properties from the bank. And as I have stated, this is incredibly inefficient. What’s needed is a service that can provide you with a list of Real Estate Owned properties as well as the foreclosures. As I have suggested before, if you can find some Real Estate Owned properties in your area the banks are much more desperate to get rid of these so you should be able to create a contract with the bank that was returned from the listing.

The fact that you are reading this article may suggest that you were not familiar with this type product. Many people are not and that is an advantage to you. Most people will focus on foreclosed listings and will completely bypass this special type of status. Another great feature is that the bank that has the property will not ask for too much up front. They will ask you to put up an earnest money deposit. But depending on your closing date and the value of the property, etc., it could be as low as $5000.

There are a few things to be aware of before embarking on finding Real Estate Owned properties. The banks may use the property as a means to get a loan out of you. If they do, just make sure it is a good deal. Sometimes banks will require the owner to occupy the property. You need ask many questions about the terms of the deal before going through with anything.…

Investing in Buy to Let Mortgages

A lot of people these days are looking into real estate properties. One of the best investments that you can try today is the buy to let mortgages. With the continuous rise of mortgage rates, some investors searched for other opportunities. Still, if you think that this will work for you and you want to become a landlord, you can give it a try. Make use of these tips and you will surely succeed.

If you simply know where to look for mortgages, you can take advantage of lower rates because of the slashing of the base rate. This is only possible with the standard variable rate offered by the lender. You should be willing to work double time in finding the best deals because the industry is a bit tough.

It’s good to know that the prices of most properties have gone down and so most investors prefer to earn great profits through rental returns. Over the short term, you won’t be able to expect sufficient earnings. It’s better to hold on to the rental property for ten years or more. Make sure that you learn everything you can about the industry and the various ways to manage cash flow notes.

Adequate research is very important. You have to identify the benefits and risks. Keep in mind that you’re capital will be tied to the property, so it is vital that you pick a property that will increase in value over time. Promising areas with good transport, near schools and offices, malls, and the city center are the best places to look for buy to lets.

You need to plan things out carefully. Doing your math work is very important. Shop around for the best deals. You can consult with real estate agents, banks, and other organizations. There is a need to consider your target tenants as well. Always check the vacancy rates in your place and the lower, the better. Since you’re just starting out, you will need to have realistic expectations. Don’t believe in stories that people got rich overnight.

If you’re determined to invest on buy to let mortgages, this can be the perfect time to look into the available properties in your area. You have to learn everything about the industry. Take time in reading info sources online. You can also find books and magazines that focus on real estate. When you know the basics of trading and managing real estate properties, you will surely be able to earn significant profits.

Keep track of your cash flow notes and other financials. The landlording business is a bit dirty and you have to make a stand to introduce changes. You need to learn the trade and how to become a better landlord. There are organizations and associations where you can join to become a reputed landlord. What are you waiting for? Start looking for the best properties that you can find today. In a matter of years, you will be …

Set Yourself Up for Success With Your Real Estate Business

So you’ve decided that you want to invest in real estate. It might be that you are still working a full-time job or you are running a business that right now takes up most of your time. Don’t make the mistake of treating your new venture as a side hobby. Diversifying and building your wealth with real estate is one of the best things you can do for your future.

Buying investment real estate is an activity that should be treated as a business and not a hobby. The mistake that many newbie investors make is that they are just making it up as they go along and are not taking the time to do their homework on how to set up their business before they start looking for properties.

It is important to not only structure your business well before you go out buying properties, but also to make sure that you put forth the most professional image possible. There are a lot of aspects to doing this well that I share with my clients, and I will share just a few simple strategies with you here.

First, every new business should you have a name. Choose a name that reflects your investing goals, the industry, and be sure to stay away from words that might have legal implications (ex. “Realty”). Also, be sure to check the availability of the name with your local Secretary of State. This is an important first step, because this is the name you will use with everything from registering your business with your state to opening your bank account. You don’t want tenants making payments made payable to you personally.

That leads us into my second recommendation. Now that you have a business name and have ideally registered it with the state, you will also want to keep your business expenses separate from your personal expenses. The easiest way to do this is to open a business bank account separate from your personal bank account, and make sure to have all income and expenses for your properties and other business related expenses flow through it. Don’t make the mistake of mixing your personal and business expenses, because should you ever be audited by the IRS you could lose some if not all of your legitimate business expenses.

When I started investing some years ago, one of the first things I did was create a name and open a bank account. It gave me a professional appearance to all of the vendors and customers I came into contact with, and an easy way to start accepting payments and tracking expenses.

Lastly, I recommend meeting with an attorney (real estate or trust & estate) to determine the best legal entity for your personal circumstances. Many real estate investors use a Limited Liability Company (LLC) because of the limits on their personal liability in the event of a legal suit. Again, check with your attorney to …

Lease Purchase Flip: Part 3 Getting the Contract

If you’ve already contacted the sellers, went over the scripts, and received some “YES”, it’s now time for Part 3 of Lease Purchase Flip: getting the contract. If you’ve yet to get a seller to say “Yes”, keep going. The more you practice and get comfortable talking to these sellers, the more relaxed and confident you will be. As numbers may have it, the more sellers you contact, the more you increase the likelihood of receiving a “Yes”. Don’t get discouraged from hearing “No”. Remember, every “No” is one closer to a “Yes”!

Now, once you have a “YES” and a ready seller, the next step is to get the property under contract. The contract that you’ll use depends on the kind of deal that you’re doing. Since our focus is on transacting a quick lease purchase flip, we will use a simple Purchase and Sales Agreement. If you’re in Texas and feel comfortable utilizing the State TREC contract, then go ahead and do so. Feel free to contact or email me if you need references as to where to get standard Purchase and Sales Agreements.

The next step is to set up a meeting with the seller lead so that you can do a quick inspection of the property and most importantly, build rapport with the sellers. The whole purpose of the meeting is to get the contracts signed at the conclusion of it all. It’s also possible to do things over fax and email, but for more profound results and real world experience, meet with the sellers in person.

Once you have a date for the meeting, here are a few tips on what to do before and during the meeting for maximum results:

– Dress business casual when meeting with sellers.

– Make sure you smell good.

– Make sure your car is clean.

– Once at the property, ring the doorbell only once followed by 3 to 4 hard knocks, then step back and wait patiently.

– Before you step foot inside the seller’s house, ask them if you should take off your shoes.

– Always be enthusiastic and smile.

– Politely request the seller for a tour of the home.

– During the tour, build rapport with the seller by making small talk.

– After looking at the house, ask them where they’d like to sit down and talk.

– Once seated, go over the offer again, and then ask for the close: “So if you’re ready to proceed, I have the agreements with me and we can go over them together.” (Pull out the agreements while saying this)

– Go over the agreements, very simply, summarizing and highlighting key points. (Dates, prices, and obligations of each party are usually the key points)

– Have the sellers “OK” their portion first, then you sign yours.

– Have 2 sets of contracts with you always so that you can give the sellers a copy right away. (If you …

Buying Real Estate – The Realtor Is the Shepherd of the Home Buying Process – Select Well

Buying the first home is the most exhilarating financial investment the average person will ever make. It represents a milestone in personal growth and signals one’s financial arrival. The sense of pride and accomplishment in establishing roots in the community represents a challenge “met” in pursuit of the American Dream.

For those who are ready to embark on the home buying adventure, one should be aware that there many wolves and ogres along the path to home ownership. The Realtor should be considered an invaluable Sheppard that leads the buyer though the hazards of selecting the right home, navigating the mortgage process and reconciling the closing of the purchase and mortgage. All of these processes are wrought with potential hazards for the inexperienced purchaser so it is critical that the home buyer find the competent Sheppard as an escort.

So how does the buyer select a truly experienced professional Realtor that will unfailingly deliver the correct information and guidance every step of the way? It is simple; interview them and ask the right “direct” questions:

Are you a full time agent? It is important that the agent is active during the work week discovering and profiling new property listings as they are presented to the market. Even in a slow real estate market the really good properties are frequently sold as soon as they are listed. Nothing is more discouraging than just missing the ideal home.

How long have you been representing home buyers as an agent in “this” community? Experience is the best teacher in detecting and avoiding problem properties or undesirable locations. Experienced professionals know the intricacies of the neighborhoods and specific locations; what to avoid and why.

Who are the mortgage loan officers you recommend. This is a very revealing question that is difficult for the realtor to skirt. It is probable that an agent that doesn’t have a responsive answer to this inquiry either isn’t selling many homes or is not actively involved in monitoring the progress of their clients mortgage processing. Top producing agents are aware that transactions can disintegrate in the hands of the lender so they work in concert with trusted loan representatives demanding effective communication from the loan officer in exchange for their referrals.

The answers to these basic questions should provide the specific information needed to determine the experience level and professional demeanor of each agent interviewed. There should not be any reluctance on the part of the home buyer to conduct an interview and ask these and other revealing questions. It signals the realtor that the potential client is a serious buyer and is proceeding with an unemotional business approach to buying a home. This is in contrast to the many “tire kickers” the agent is frequently confronted with.

The interview process should not evolve into a discussion of specific properties or an appointment to discuss specific personal or family parameters. The interviewer …

How to Attract Private Money For Your Real Estate Deals

If you are a real estate investor, attracting private money lenders and investors is a crucial element of your business success. Having a real estate investor website specifically for attracting and convincing potential lenders and investors that you are the best solution for their investment money is therefore a must.

But you must have the right website in order to accomplish this objective – a web site that is simple, professionally designed and laid out, and most importantly, one that leaves no doubt in potential lenders minds that you are the best person they can invest their money with. Identifying the right source of such a web site is therefore crucial. First, why do you need private money?

1) If you like it, it is a deal

Can you use conventional lending for a deal that involves creative financing (such as taking over payments)? Even deals that could probably make you $100,000? Most unlikely! No bank will finance you unless it is a straight conventional buy; at least I do not know even one. When you have a solid flow of private money that you can turn to at a short notice, you can close any deals you want; if you like it, it is a deal!

2) Close more deals

With private money, you are the under-writer. This means you can do deals that other investors cannot handle simply because you have a ready source of cash from your investors. Even if you find deals with time constraints, you can still close on them because you can close on such deals as soon as you find them. Conventional lenders typically take at least 30 days to close, and come with tons of under-writing conditions. Hard money lenders can only lend on deals that meet certain criteria (such as 70% minus repairs). None of these conditions exist with private money lenders.

3) They are cheaper

Hard money lenders typically charge around 16% interest and higher, plus points in most cases. Conventional lenders may not even close on most deals unless they are conventional.

4) You do not need your own money

Hard money lenders will charge you points in advance and interest for the first month to close on your deal. Also, they will not lend you money to rehab in advance, so you may need a significant amount of money in the bank to get a medium-sized deal. Conventional lenders need you to put some money down, typically 10-20%. Not so with private money.

Web Sites For Attracting Private Lenders

A good website must present you as a polished professional to potential investors so they can fund your deals with confidence that their money is safe with you. In turn, you get all the money you need to finance deals that other real estate investors can never touch. A private money lender website must be specifically designed for attracting private money lenders to finance your deals. Obviously, you do …

You have probably owned at least one computer in your lifetime. But, are you really certain that you know a lot about these machines? Learning a bit about computers can always be useful. You’ll find great tips in this post to help.

If you’re looking for a new desktop computer, try QVC, HSN and other home shopping networks. They offer monthly payment arrangements which allow you to get a computer home for a fraction of the price. Be careful when you are doing this, however, make sure the total price is reasonable.

While a desktop doesn’t afford the portability a laptop does, it packs more of a punch. To ensure you continually get the most out of your desktop keep the components up to date. As new and faster RAM and processors come out, upgrade your desktop computer. In this way, your desktop will always out perform a laptop.

Consider the disk burning capabilities of any desktop computers that you are looking at. Consider whether you plan to just watch media or to make your own CDs and DVDs. If you plan on doing the latter, make sure sure the computer that you want supports it. Not all desktops come with these capabilities.

Look at what is included for the servicing of your desktop computer. Check to see if there will be onsite service, or a technician that arrives at your location to do repairs for the duration of your warranty. Find out what you get if onsite is not offered, along with how long. Check to see if your machine can be serviced at a local service center. Also, look at the time frames for replacements, repairs, and if you receive a loaned computer in case the time frame is unacceptable.

Search different sites that are reputable for reviews about each computer you are considering. It can be overwhelming to deal with all the choices out there, but if you are able to check out an “editors’ pick list, or a few reviews, you are going to be better able to determine whether a computer is worth your money.

If you have a home office or a small business, a laptop computer probably will not meet all your needs. While a portable computer is great when you are out and about, a desktop model is better if you need a printer, copier, fax and scanner. Also, many people find typing on a regular keyboard is easier than working on a laptop.

If you aren’t a gamer, don’t get suckered into gaming desktop computers. These computers have been souped up with the biggest and baddest video cards, sound cards, and processors. If all you do is email and light photography, this power is major overkill. You are better spending your money on a lesser computer and investing in some peripherals.

As discussed earlier, you have probably owned a computer at some point in your life. You may not have read about them before. Using the tips here, you will be …

How to Carry Out Real Estate Short Sale?

You might have seen a home on sale with a label short sale placed outside. This is a home that is sold by homeowners due to some problems like divorce, job loss and so on. The payments are in most cases adjusted and the real estate sold at reduced rates so as to avoid foreclosure as well as bankruptcy as long as it has been approved by the bank.

With so many people facing this problem in the modern world, you can take advantage and acquire as many real estates as possible. All you need to do is to know how to go about these sales, its benefits and disadvantages.

When you need to engage in short sale, you have to assess the benefits that you will get. In most cases, you will purchase the property in question at low prices; this will make you save on lots of money that you can be able to invest in other businesses.

You also need to consider the potential downside. This is because not all sales will work in your favor. There are those that will come with few pitfalls. To avoid this, it is worth looking for real estates that are lender approved.

Worth noting is the fact that the process of looking for these sales can be quite daunting thus, it is recommended that you seek the services of a profession who will be able to take you through the transaction by explaining each and every step as well as the terms and conditions. You also need to ascertain that you have been re-approved for a real estate before proceeding to the next step. Finally, you will have to complete the whole process in writing.…

What Do People Learn In Mortgage Broker Courses?

A mortgage broker is best described as the financial expert who plays the role of the middle man for the brokering of mortgage loans offered by lenders. The lenders include individuals, banks, loan companies etc. Different individuals need different property related loans. The broker is there to help them in selecting and getting the most suitable loans for their situations. These individuals are qualified financial experts that typically have one or more degrees in financially-related subjects. They are the best sellers for this industry because they work to convince individuals to take on different loans. But before they can embark on this as a profession, there is training required.

The objective of these courses is to develop the necessary skills and tools for meaningful employment in this field. These classes aim to guide interested individuals in the adoption of a career as a mortgage broker. They also aim to provide opportunities to the persons working in the industry that lack any professional degrees specifically related to it.There are different courses for mortgage brokers and financial officers offered at institutions. These courses differ a little but most of the features are actually quite common. Some important topics covered in these courses are discussed below:

– Courses are devised to give a complete introduction to the industry in the country the course is being offered in. Some institutions go a step farther and introduce students to the international markets. These courses contain the basic terminology of the brokering industry.

– Relevant legislation about the trade acts, banking rates, and privacy act and rate comparison for different loans which are related to the financial industry are also reviewed in these courses.

– These courses cover introductions to the types of the lending associations and the types of loans available at each type of institution e. G. The trade unions, banks, credit unions, building societies, personal loans and commercial loans. This list is by no means exhaustive as there are hundreds of institutions involved in the world of brokering and finance.

– The students are introduced to different types of loans as well as the different packages and features of loans. Perhaps most important of all, they learn about percent interest rates. This enables them to compare between different loans and select the most suitable ones for their clients.

– The fundamental concepts of brokering not unlike the 7 C’s of credits. Loan serviceability and the statement of position, statement of risks and mitigation, the calculation of the borrower’s income, and credit reports. The students are also introduced to the role of ethics in selecting the best loan for a person so that they do not get partial to companies that are willing to provide commission.

– The system of taking out a loan. It includes report formation concerning the lender as well as the borrower, moving applications with accurate facts, getting the application approved by the lender, and the rate of commissions that are received …