“Renting Back” After Your Home Is Sold

Sometimes it’s helpful to search houses before you really want to move. This often happens when you are having a new home built, but aren’t sure of the completion date. Is there any way you can sell your home so you’re sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete. Yes, there is with the renting back strategy.
Enter the Lease-Back or Rent-Back Agreement
The particulars of this strategy vary from state to state, but in the strong seller’s market we’re experiencing, buyers will often agree to let the seller stay in the home for a period of time as long as rent is paid. In a competitive situation, the buyer willing to do this will often have the winning bid even though there is another offer as high as his.
The agreement covering the situation states the length of time the seller will remain.  It can be done with a specific date named or wording that allows the seller to remain up to a specific date with the possibility of her moving sooner. The amount can be a fixed figure paid out of the proceeds of settlement or a monthly amount, or a daily amount. It is usually, but not always, tied to the amount of the mortgage payment under the buyer’s new loan. Sometimes there is a deposit against damage, sometimes not.  There is usually a clause saying the seller will hold the buyer harmless for any damage to himself or his property which occurs after the sale is consummated and before the seller moves.
The attorney who draws up your contract offer can create such an agreement. If you’re using online forms, you should be able to find one for this situation. If you’re working with a real estate broker, he or she can handle it for you.  
An Example
I’ve recently seen a very pleasant example of this idea in action. An elderly widow contracted to have a one level condo unit built in a new community which provides all exterior maintenance. She had had hip replacement surgery and wanted to get away from the drawbacks of the home in which she’d reared her children. The home was large, had stairs and was located on a large, partially wooded lot with many mature perennials and shrubs. Both the home and garden were beautiful, but high maintenance.
Her contract to purchase required a series of deposits and a firm indication as to her source of funds well before settlement on her new condo. The widow put her home on the market. A young couple with two sons was very anxious to buy it. The situation was competitive. They made the widow an offer. She countered their original offer. She did not raise their offer price, which was slightly below her asking price.  She did not believe the young couple would qualify for a larger loan. Instead, she did something rather creative.
The widow countered with a proposal that she “rent back” for a period of “up to” a certain date (a date beyond her scheduled competition date on the condo) in exchange for a modest flat sum to be paid to the buyer at settlement. The total rent back period was less than two months. The flat fee was less than the amount of the new mortgage payment for the buyers. However, since they made no payment on their new mortgage the first month, it wasn’t too far out of line. The couple really wanted the home, so they accepted the counter offer.
Another win, win situation was created. The widow only had to move one time and the young couple got a house they probably wouldn’t have in a straight bidding war. If you find yourself in a situation similar to either the widow or the young couple, perhaps you can work out a similar solution. 
 Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Figuring Out Whether You Can Afford That Home

House hunting can be a brutal affair, particularly if you don’t know what you can afford before hand.  No your price range in advance and you can avoid looking at really nice homes you’ll never get.  .
Mortgage – Monthly Payments
The biggest costs associated with owning a home is the mortgage. Unless you are filthy rich, you are committing to apportioning a significant amount of your monthly income to that dream home. In evaluating whether you can afford the mortgage, you need to consider the difference between the mortgage payment and what you are currently paying.
If it is a significant step up, will you be able to pay it now and in a few years? Under no condition should you assume you will be making more money in the future. Base everything on what you are making now.
When considering monthly mortgage payments, you also need to factor in the type of mortgage. Interest rates have been at historical lows for some time, but are starting to creep up. If you are taking the plunge on an adjustable mortgage, will you be able to make the payments if the interest rates increase over the next few years? In coming to a conclusion on this, you should assume the rates going up to the caps indicated in the mortgage for the relevant period of time. Again, you don’t want to get stuck in a financial bind because you let your eyes overrule you brains when selecting a home.
Other Expenses
The pride of homeownership comes with a few extra costs. In gauging affordability, many homebuyers fail to take into account the twin evils of property taxes and homeowner’s insurance. The expenses associated with each of these necessary items can be surprisingly high. In some states, property taxes can be an ugly surprise the first year of homeownership. Much like taxes, they are collected in a lump sum and can be thousands of dollars. If you fail to plan for them, your finances can become unbelievably strained.
Buying a home is absolutely the best move you can make if you’re renting. Just make sure you can meet those payments without losing sleep.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-CollegeStation Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Commercial Real Estate Misconceptions: You Mean Location, Location, Location Was a Lie?

Commercial real estate is a wonderful, exciting business that can offer a wealth of opportunity for those who look for it! Many people are often hesitant to enter such a market as commercial real estate for many different reasons. In fact, there are some major misconceptions about commercial real estate which I am going to address here.
Many people who hear about commercial real estate, but aren't necessarily in the business, often use the expression “Location, location, location!” Many people associate this expression as the truth, that the three most important attributes about a property are “Location, location, location!”
I am here to tell you- this is absolutely not the case! Now, I am not going to say location is not important, but what if you have a beautiful location for a mountain resort, complete with snowy hills, a perfect location for a lodge, and beautiful mountain views? What you want to do to the property is improve it for a weekend getaway for romantic couples with a beautiful lodge, resort, luxury type housing, and perhaps some individual cottages overlooking the green forest. Sounds great, right?
The perfect location- you can't beat it! But, you learn that the zoning for this property is residential, R1, to be exact. The use is only one single family residence per acre, and no commercial property allowed. What happened to your “Location, location, location?” It flew out the window!
The most important aspect of a property is the use. What is it intended for by designation of the city or county? It does not matter where the property is, if you cannot get the zoning that is in the realm of your intended use.
It is possible to get properties rezoned, especially as cities change and grow. Be sure to consult with the city or county to determine if these changes are even possible, because you do not want to buy a property that you cannot rezone, and be left with an unprofitable property on your hands.
Most people believe that commercial real estate is complicated and you need a special education or know how to succeed in the business. Many think that commercial real estate is filled with international finance, heavy and complicated math, complicated tax rules, and forms and applications that are just too complicated to understand correctly.
I am happy to tell you this misconception is the worst, because it puts a road block in front of many people's aspirations to become a commercial real estate insider. Let me put this misconception to rest. There is math involved, and most of it is not at all complicated: simple ratios, adding, subtracting and multiplying. What is even better is you don't have to do the math. There are others who can do that for you. The same is true with property management, inspecting the property, and doing the year-end tax report. In fact, commercial real estate is less complicated than residential real estate because you can focus your energies on a single deal that will be worth perhaps 10, 20, even 50 residential deals and more!
Let me put it into perspective for you. If you owned a business (many of you may), would you create strategies, keep the books, manage the many locations, sell on the front floor, and take out the trash after the day was over? I think not! Commercial real estate is made up of many people whom are there to help you with whatever you need. You must position yourself as a real estate insider, which is a leader in the business.
Another misconception is commercial real estate is management intensive, that you must manage every property you own. Let me tell you when you end up owning 10 or more properties, this is almost impossible to do! You do not have to actually manage your properties yourself, so you can concentrate on creating more deals. Hire a company or set a team in place to take care of this “day-to-day” business.
As you can see, what is passed around in dialogue about commercial real estate is not always true. Before you take everything to heart, be sure to get your facts straight. In fact, many people in this profession speak about commercial real estate as a business in which only the savvy and sophisticated can succeed. They often act this way because they want to keep people out of the market by differentiating themselves. If you were in this position, you would too!
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Creating Real Estate Notes Can Help Sell a House Quickly

Banks and mortgage companies have been selling mortgage notes in the secondary for years.  They even buy and sell those notes to other lending companies.  This most likely has happen to you or to someone that you know at some time or another.  Why do lenders do this?  They do it in order to keep a steady reserve of cash on hand to make other loans.
The information in this message is designed to help you understand about creating trust deeds, real estate notes, or if you have a business and have contracts you also have a business note which will bring you a cash flow that you can receive monthly payments, which brings you steady cash flows. You can also have the option to sell whole or part your real estate notes, trust deeds or business notes.  The whole idea here is to first elevate your potential of meeting a home buyer to sell your home to.
Time and time again you might find houses that are for sale but are on the market for a very long time.  Most of the time home buyers don’t qualify for a 100% loan and must get 2 loans to equal the 100%.  The home seller can offer “Seller Financing” in order to get the house sold.
The home seller has one objective and this to sell that property as quickly as possible.  To do this you can create a trust deed which is secured by real estate.  This is a real estate note.  The real estate note has several purposes and the most important reason is to help the home seller close on the house.
The trust deed that you now have is because you agreed to finance the home buyer so that the buyer could get the house and you can your cash at closing.
Not only do you have cash at closing but you now have a real estate note that you will be receiving monthly payments on from the new home owner.  Your home is sold and you have residual income from the trust deed you created.  This creates steady cash flows from the trust deeds, real estate notes or business notes you may have. This is what “Seller Financing” is.  This occurs when the buyer makes regular monthly payments to you instead of the bank.  You now hold an asset that you can choose to keep for steady cash flow or sell part or all of it for cash right now.
This should motivate any home seller to give this a try, after all what could it hurt and it will be a win/win situation for the home seller, as well as for the home buyer.  “Owner-Financing” is widely accepted and is an alternative for the home buyer who can’t qualify for a conventional loan.  Even if you have real estate notes, business notes or trust deeds for a while you can generate cash flows by selling all or part of it for cash now.
Isn’t that great news for the home seller?  This will give the home seller a boost in getting the house sold.  Most people would consider buying that house if the they knew that the home seller was willing to create a real estate note or trust deeds to secure the home buyer qualifying for the house.  Just envision selling your home much faster then your neighbor down the street because you possess the key to selling your home.  “Owner Financing”.
You also have created cash flows created from your real estate notes, trust deeds, or business notes and that can be the key to your financial future.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Earn more with Commercial Real Estate

Commercial Real Estate refers to the property that has potential to generate extra income for the owner of real estate. Commercial real estate generally includes office buildings, retail properties, apartment units, condos and raw land. Every property that can produce revenue for the owner is known as commercial real estate. It doesn’t include habitable real estate like houses or apartment buildings.
In 21st century, large number of people is generating income with commercial real estate. Commercial real estate business is based on certain principles. These principles are generally same for property owner, developer as well as for commercial real estate agent. Commercial real estate agent helps you to identify the best features of commercial real estate agent. Real estate agent enables you to make a finest deal of commercial real estate. Commercial estate agent is helpful to both buyers as well as tenants.
You should choose best commercial real estate as per your requirements. Choose your property at best location that has great future. Commercial real estate at good location will offer more benefits in the coming days. You’ve to choose finest piece of land that you can use efficiently. You may select commercial real estate nearby high traffic areas that can be easily used for full-service restaurants, hotels, stores or other shopping malls.
Investment in commercial real estate business is the best way to get more revenues. Always keep in mind that a right time investment is the best opportunity to earn more profits. You should consult financial advisors that will provide help to find the best commercial real estate. Investment in commercial real estate is good for large as well as small-scale businessmen.
Buyers should check the reputation of commercial real estate provider. Before any type of agreement or purchase, they should check rate, terms & conditions, and other essential aspects of commercial real estate for the best deal.

·         Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Construction Loans

Before you sell yourself short, talk to a mortgage company. Many lenders are more than happy to lend you money for a lucrative project, because it means profitable business for them too. Construction loans are the backbone of many mortgage company portfolios, and if you own a vacant lot that has market value, lenders will normally lend you money based on the collateral of the vacant lot. You get cash to build a new house, and after you sell the completed project you can pay back the loan and pocket the profits.
 Other construction loans allow you to borrow money from the builder's own sources, in the same way that you might borrow money from an auto dealer to pay for the car you buy from them. Construction companies with their own mortgage sources may charge you higher interest rates, however, than conventional lenders.
 Shop around for construction loans. More often than not, deciding on a builder and the best source of funds will take longer than it actually takes to build the house, but it is time well spent. A few interest rate points can make a difference of thousands, or hundreds of thousands of dollars. Talk to lots of lenders and buil

·         Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Creative Real Estate Investment

An example of creative real estate investment? When I was young, I had a job that paid $3.40 an hour, and I somehow saved enough to buy my first piece of real estate - 2 acres near where I lived. It cost $3,500.
I spent a few hours removing brush, outlined a driveway with logs, and hand painted a sign. Two weeks after I bought it I sold the land for $4,750, with $250 down, $100 per month, at 11% interest. With the capital gain, my annual return on investment was over 20%. This was my first real estate investment.
Creative Real Estate Investment - The Key
I bought the land cheap, because the seller needed fast cash. I solved his problem. I sold the land higher than the market value because the buyer needed easy terms. Second problem solved. Solving problems is the key to  creative real estate investment.
Cell phone companies, radio stations, police departments and others need hill tops for their towers. The problem is that they can't tie up their capital buying them. One creative investor found a way to solve their problem.
He got six month options on hill top properties for a few hundred dollars. Then, when he found those who needed them, he would get a long term lease signed. They built the tower themselves, of course. With a lease in hand, it was easy to get financing to exercise the option and buy the properties. He invested a few hundred dollars to create years of income.
Trees are needed by lumber mills. A friend of mine solved this problem by letting a company cut half the trees on his small property. They paid $4,500, and I couldn't see the difference when they were done. The property was worth as much the day after the cut as the day before. My friend lived there, but a creative investor could buy property like his, sell half the trees, maybe clay or gravel too, and then re-sell the land.
To solve problems, you have to figure out what they are. Do people need easy terms? Cleared lots? Lumber? Better access to a piece of property? Smaller pieces of land? Condos instead of apartments? The list could go on. Just remember that solving problems is the key to creative real estate investment.

·         Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Closing Costs When Buying A Home

Closing costs are often the last thing a person thinks of when buying a home. While closing is the joyous moment the home becomes yours, the costs can be surprisingly aggravating.
When you purchase a home, condo or other property, you will go through a period known as escrow. During escrow, various issues related to the property transfer are worked out. The last day of escrow is known as the closing day and you are going to be paying closing costs.
Closing costs come in many forms. Some involve significant dollars while others are relatively painless. Here’s a list of typical costs:
Escrow Fees
An escrow agent is essentially a third party that works with the seller and buyer to finalize the transaction. For this assistance, the escrow agent will charge a fee. Depending on your area and the agent, you can expect fees from a few hundred dollars to around a thousand or so. Make sure you find out the fees before picking an escrow agent.
Home Loan
Obtaining a home loan in the current market is a highly subjective event. “Points” can be a major cost associated with home loans. Points are essentially a fee you pay or have build into the loan for the privilege of being allowed to borrow money. A point usually equates to 1% of the loan. On a loan of $300,000, one point would equal $3,000. If you have excellent credit, you can shop for a loan that doesn’t require you to pay points.
Home and Title Insurance
Insurance for your home and title are a must. If you are borrowing money to purchase the home, each is mandatory. If you are using your own funds, you should still get both forms of insurance. As each name implies, they provide insurance against issues involving your home and problems with the title transferred to you. You want to have clear title.
PMI
Private Mortgage Insurance, “PMI”, is mandatory if your down payment is less than 20% of the purchase price. You can expect to pay a few hundred dollars a year in PMI. Inspections, Appraisals and Miscellaneous Fees
In the home purchase process, you are going to use a variety of services to validate the property is your dream home. These services come with fees and you can expect to pay for home inspectors, appraisers and the like. Depending upon the state you live in, many of these fees may be built into your mortgage. Nonetheless, you need to know exactly what you must pay for on closing day so you can budget accordingly.
Closing escrow should be one of the happier days in your life, particularly if it is for your first home. Make sure you know the costs associated with it so you don’t have to spend the day running around borrowing money.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Climbing The Equity Ladder

If you currently find yourself in the enviable position of looking to buy a second property then congratulations. The equity that you stand to gain from this purchase can be considerable, just remember to plan properly, to maximize your gain. The first step in this process is to decide what the second home will be utilized for. Is it a vacation home? Perhaps a long or short-term rental? Either way, the more detailed about your forward planning you are, the smoother the process will be.
If you are looking at this purchase as a source of revenue then there are certain steps that you should take to ensure the home will bring in as much money as possible, thereby allowing you to pay off the mortgage quickly. For this type of investment, the cleaner the better. Nice homes are in high demand, and they fetch a good monthly rate. Enough so that the mortgage payment can be made easily with cash to spare. Also, ask yourself, "am I ready to be a landlord?" This will involve the task of finding and maintaining good tenants, and sometimes having to do what's right for you and your property, not what's right for the renters. If you have the tendency to be "too nice," land lording might not be for you.
No matter what your property is intended for, be sure to cover all the bases. Be as diligent as you were when buying your first home. Even more so, you will be able to apply any lessons you learned during that process on the new home, and avoid any mistakes or area of stress that were present in the first purchase. Many people buy a second house only to find themselves buying yet another. Once you start to climb the equity ladder its kind of hard to stop!
 Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Now Is The Time To Purchase Real Estate!

Now is the best time to purchase real estate.  If you have thought about investing in real estate for any reason, know that there has never been a better time than now to invest in this market.  The real estate market is in a recession and there are more sellers than buyers.  This means that the supply is up, the demand is low and the prices are rock bottom.  This is the time to buy.
The real estate market will rebound again.  It will again become a sellers market in which there are more people looking to buy homes than people willing to sell them.  This will probably not occur for at least another four years.  During that time, things will even out a bit and housing prices will level off.  When the sellers market hits, the prices will begin to rise again.   That is when you want to sell.
In addition to being a great buyers market with tons of foreclosures on the market, another aspect of real estate market today is the fact that the mortgage rates are lower than they have been in 40 years or so.  This gives you the opportunity not only to take advantage of the low asking prices on homes, but also rock bottom interest rates.
You should look to your real estate investment as a long term investment at this point.  It will take several years for the market to rebound from this slump.  When it does, you can then sell and make some money on your investment.  In the meantime, you can use the investment for practical purposes.  Either you can live in the home yourself, have family members live in the home or rent it out to tenants.  The mortgage will be covered and eventually you will be able to sell the property that you purchased for a lot less than market value, for a profit.
Real estate is one of the best investments that you can make.  It is a tangible asset that not only can be used, is something that must be used.  One of our most basic needs is shelter.  Real estate is the only investment that you can make that attends to one our basic needs.  You certainly cannot invest in food as it does not last for the long haul.  And clothing?  Too trendy and never worth more used than when new.  But real estate is a winner.  Shelter is the one thing we all need and you can actually make money by investing in real estate, even in a depressed market.
Take a look around and purchase real estate in an area that is either about to hit a growth spurt or is stable and established.  If you are looking for a home for yourself, take a look at the many different foreclosures that are on the market.  You can get quite a deal as there are thousands of  these properties all over the United States, even in upscale neighborhoods.  When you find a property that you like, bid low.  Take about 20 percent off of the asking price.  The seller can always counter offer with a higher figure.
Shop around for the best mortgage interest rates and packages.  There has never been a better time than now to invest in real estate.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

How To Invest In Real Estate In A Down Economy

The real estate economy has hit rock bottom.  There are thousands of foreclosures all over the United States.  States such as California and Florida have found that their foreclosure ratio has reached epidemic proportions.  All across the country people are finding it more and more difficult to get by.
The United States is experiencing the beginning of a recession.  Things will get worse before they get better.  They will, however, get better.  They always do.  You just have to be willing to wait it out.
If you want to invest in real estate, this is the perfect time to do so.  With the mortgage rates being lower than ever before and the housing prices also at rock bottom, there are so many opportunities to make a good investment in the real estate market.  This includes buying property for both residential use and to let out to tenants.
Everyone is affected by a collapse in the residential real estate market.  It starts a chain reaction that has really just begun.  People begin to be laid off in the trades and stop spending money on entertainment or new cars or furniture.  The effect on everyone is astounding.   The real estate recession is like a virus out of control. 
You should always look at your home as an investment.  If you are renting property now, realize that you are paying a mortgage for someone else.  You can be paying yourself that money as well as taking advantage of tax incentives that are available to homeowners. 
Investing in real estate in a down economy is actually the best time to invest in real estate.  You have to make sure that the property in which you choose to invest is in area in which the homes have systematically grown in value.  If you want to speculate, you can invest in an area that is up and coming, such as a place where people are moving to get away from urban sprawl.  Track the patterns of growth in your area and determine the next development boom.  If, for example, the growth is going Southwest, go to an area one point farther than the most recently developed area and purchase property in that area.  Because prices are low as well as mortgage rates, this is the perfect time to do this.  When things get rolling again as far as developments, you may be sitting on a goldmine.
If you own a home and still want to invest, consider buying a home that you can rent to others.  People always need a place to live and a rental unit is usually a good investment.  Because of low interest rates and housing prices, you should be able to get a good deal on both property and a loan.  Loans for investment property that you plan to rent are usually different than those in which you plan to live and in some cases, you need to put down 50 percent of the property value to get a loan, so be aware of that.  However, the rates are still rock bottom so this is a good time to buy.
If you are investing in property that you plan to rent to tenants, make sure it is in an area where people want to live so that you can be assured of having a steady flow of income.
  Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

What You Need To Do To Get A Foreclosure

If you want to make money today in the real estate market, one way is to get a foreclosure.  Foreclosures are properties that the bank has regained because the owner defaulted on the loan.  They are usually owned by mortgage lenders and in some cases, the government.  Finding foreclosures in the market today are easy.  They are everywhere.
Years ago, foreclosures were rarely seen and when they were, they were located in undesirable areas.  Today, they are seen in the most upscale neighborhoods.  When the real estate bubble burst, it took a lot  of people with it, including a lot of developers.  There are entire subdivisions in some states that have been foreclosed upon by banks.
If you want to make some money in the real estate market today, you can do so by purchasing a foreclosure.  Foreclosures are sometimes in need of cosmetic repair.  People get angry as they are getting evicted and sometimes do damage to the home.  Most of the damage, however, is all cosmetic.  If you are handy, you can fix up the property easily enough.
You will have to be able to prove that you can purchase the property before you can even bid on the foreclosure.  This means that the first person you should see is the lender.  Your lender can take you through the process of getting a mortgage and issue a pre approval letter.  This states that the lender is willing to loan you a certain amount of money for a piece of property.  A pre approval letter is something that is necessary if you want to bid on foreclosed property.  The bank or lending institution does not want to work with someone who is not going to be able to buy the property.
There will be no contingencies.  You will have to be ready to close.  Inspections are usually done at your own expense prior to the acceptance of the contract.  You should have an older home inspected for a variety of different reasons.  It is well worth the few hundred dollars it will cost to do this.
You will also have to have a certified check for the earnest money.  Earnest money is a deposit that you put down for the home that pretty much states you are serious about committing to purchase the home.  If you default on the contract, you will forfeit your earnest money.   The amount of earnest money varies and is usually a few thousand dollars.
If you are planning on buying the home with cash, you will have to have proof that you have the cash on hand and are ready to close.  This can be simply a bank statement that reflects the amount of the cash.  A cash buyer is always preferred over a mortgage buyer, even one who has been pre approved.  This may put you at the head of the line.
You can then bid on the property.  Remember that the bank or lending company simply wants to recoup their investment.  Bid low and hope for the best.  You may have to bid on several foreclosures before you get accepted.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Why You Should Invest In Real Estate Now

If you are renting property, you are throwing your money out the window.  Now more than ever, you need to consider purchasing real estate as not only just a place to live, but also as a long term investment.
Interest rates are lower than they have been in decades and housing prices have also dropped.  Never before have we seen such opportunity when it comes to investing in real estate.  Even people with less than perfect credit can find a mortgage with a competitive rate in the market today.  Lenders are tripping over themselves to make attractive offers to potential customers.
Foreclosures have reached an all time high throughout the nation.  States such a California, Florida and Nevada have been hit the hardest.  Upscale homes are in foreclosure like never before.  Years ago, you only saw foreclosures in blighted areas.  Today, you see them all over the place.
New construction is suffering to a point where housing starts are at an all time low.  The market is very bleak for sellers, real estate agents, lenders and developers.  The market is absolutely wonderful, however, for buyers.  This is your market.  You can not only take your pick when it comes to housing choices, but also when it comes to home loans.  There truly has never been a better time than now to invest in real estate.
Although you think of your house as your home, you should also think of it as an investment.  If you are renting a house or apartment, you are not investing.  You are paying rent to someone else who is investing.  They are using your rent to pay off their mortgage and making money off of you.  In addition, you are not even allowed the tax incentive for home owners.  Any interest that you pay on your mortgage can be deducted from your income tax.  So can your property taxes.  This can make a substantial difference in your income tax.
Now is the time to invest in real estate.  Take advantage of the fact that there are not many buyers on the market and a lot of sellers.  Also take advantage of the fact that the interest rates are so low that lenders are dying to make you a loan.  Even if you have a past bankruptcy you can still get a mortgage in the market today.   There is money out there for everyone, you just have to look.
Make sure that you shop around before buying your home.  Location is everything when it comes to real estate.  You are better off to have a shoebox condo in a nice area than a spacious home in a blighted area.  The shoebox will appreciate in value, the spacious house may actually go down in price.  Take a look at the areas where the school districts are much sought after if you are wondering whether the area is a good area or not.
If you are afraid to invest in real estate, stop being scared and paying a mortgage for someone else.  Start taking advantage of the low interest rates and purchase property for yourself.   Eventually, the property will appreciate in value giving you a place to live as well as a long term investment.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Rent To Own Homes Explained

If you desire to own your own home but are unable to secure conventional financing today, leasing a home with an option to buy may be your best option. A lease purchase can make your rent money work for you instead of making your landlord rich. Typically rent to own homes offer rent credits that reduce the final purchase price! 

Here's how it works: 

A home is made available via a standard lease with one important addition. Included is an option to purchase that home at a specified price over a specified time period (usually one or two years). In order to acquire that option, the renter/buyer must pay a one time, NON REFUNDABLE, fee called the option consideration. The exact amount is negotiable, but it is usually ranges from 2.5 to 7% of the purchase price. A fair contract will credit the buyer 100% of that option consideration upon closing of the sale. Furthermore a negotiated percentage of all rent payments should be applied toward the purchase price of the home. Some typical terms and conditions one might expect to find in a contract follows: 

·         In order to receive a rent credit of 50%, time is of the essence. You MUST pay your rent on or BEFORE the due date of your lease (typically the 1st of the month). This means it must be received by the lessor (landlord) on or before the due date. Any payment received after the due date will result in a 0% rent credit for that month, a late fee may apply and you will not be building any equity. 

·         Maintenance is the responsibility of the Tenant Buyer. You are now renting to own and homeownership requires maintenance. This includes things like broken windows from stones or baseballs, clogged drains, peeling paint, broken appliances, burnt out bulbs, lawn work/snow removal, etc. If any major repairs are required to ensure habitability, the owner remains responsible. 

·         You need to have Option Consideration. Option Consideration is typically 2.5% to 7% of the purchase price of the home. It is a non-refundable payment, of which 100% is credited toward the purchase price, which binds the lease purchase contract. 

Here's an example transaction: 

We have a nice 3 bedroom, 1 bath single family home located in a near west suburb of Chicago in a great neighborhood with good schools and a strong community. It has been freshly painted, cleaned, and is ready to move in. The purchase price will be $215,000. Monthly rent payments will be $1,500 and you will receive a 50% rent credit ($750 per month). You need between 2.5% and 7% in up front Option Consideration. Let's say your budget allows for $6,000 for Option Consideration. This equates to approximately 2.8% ($6,000/215,000). You will also need $1,500 for the first months rent for a total initial payment of $7,500.

Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Renovate For Real Estate Gains

A home is so much more than a roof over our heads. It is our largest purchase (unless you like thoroughbreds or really expensive shoes), and almost always a significant portion of our assets at retirement. So when it comes to improving your home through renovations, it's important to think beyond cosmetic appeal and look at how those projects can improve your wealth. 

We may think of a home as a long-term purchase, but in fact a great deal of us will own a home for just 5-7 years. So look very closely at the money you spend on your home. Look for projects that will add the most perceived value to your home for the least cost. Decision-making should be guided by the big picture – a financial plan that includes your retirement goals, acceptable debt levels, and tax planning. I encourage you to think about potential home renovation projects in terms of three categories: resale value, maintenance costs, and potential risk. 

Made for the Market 

Some of the design tips you may have picked up watching Trading Spaces might prove useful. The types of changes they make, cosmetic rather than foundational (plumbing, electrical, etc.), may be the best way to improve your home's value without spending a bundle. At very little cost, painting is the No. 1 home improvement. A well-coordinated, modern color treatment can raise the selling price of your home significantly. Other cosmetic projects involving light fixtures, tiles or flooring, wallpaper, or new trim, can also pay off well, particularly in kitchens and bathrooms (dollar-for-dollar, these rooms tend to reward your efforts more so than others). 

Pragmatic home enhancements like adding central air or a gas fireplace generally will not earn more in sales value than their cost. These types of additions involve well-known, fixed costs, and depreciation always takes a bite. Luxury items like swimming pools and hot tubs generally score low in terms of resale value. Swimming pools typically add about $5,000 to the home's resale value – not much considering a pool costs about $20,000 to install. 

Major house additions should be carefully considered. These usually involve electrical, structural or plumbing work that is hard to recover. What areas pay off most? Bedrooms. Adding a bedroom is a big plus, while a family room can enhance the value of a smaller home. Basements score low; they are still considered by many buyers as a cold, damp place to store things. 

Reduce Maintenance Costs 

If you plan to spend at least a few more years in your home, you might leave the cosmetic fixes for now and instead look for ways to reduce maintenance costs. Heating and water should be your first targets. It's impressive what you can do with less than $100 of weatherproofing products and a little know-how. Look to http://www.kw-real-estate for energy conservation recommendations. Similarly, water usage can be reduced through new fixtures. Check with your local government for possible rebates on certain water-efficient products. It's tough to immediately see the payoff of your expenses here, but look to year-over-year consumption levels (usually displayed on your water or energy bill) to see how you're doing. 

Monitor Risk 

As with investing, homeowners should not let opportunity supplant a sound evaluation of risk. Home insurance is a given, but how sure are you that your house is up to code? A homeowner I know was sued after a visitor tripped on his steps – turns out the height of each step wasn't quite up to code. One home inspector estimates that each home he inspects has between 5 and 20 code violations, many that are simple to fix. 

Also, preventive maintenance is always a wise investment in some areas where the cost of complications is high. Quality roofing, wiring and water drainage (eaves troughs, etc.) will prevent unexpected and costly damage to your home. The idea with these projects is not how much you'll gain, but how much you'll avoid losing. 

So remember, next time you survey your assets and investments, give some thought to the value of your home. Look for efficient improvements – changes that will earn or save you more money than they cost to implement. Ask yourself if a pool is a good idea when an extra bedroom might cost the same but increase the value of your home by $15,000 more.

Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Ready To Sign That Lease Agreement?

Is Signing that Lease Agreement Right for You 

The real estate market is booming across the United States, especially in select areas of California as well as Las Vegas.  Even the sleepy town of Boise, Idaho is experiencing record breaking primary residential development.  Where ever you happen to live, you have probably noticed it’s not so easy to get into that coveted house you have always dreamed of, despite the favorable mortgage rates.  So what should you do?   

Lessons Learned from the Past 

With such uncertainty around the real estate market, perhaps it is best to stay away from owning your own property.  Many so called experts predict the housing market in the US has finally reach bubble status, and expect that bubble to burst in the near future.  They may have submitted their predictions a bit early, but their advice should be considered.  If we learned anything from the stock market bubble and subsequent crash of 2000, we realized frequently a conservative approach to investing serves us well when uncertainty surrounds the market. 

Protect yourself and consider the advantages of renting or leasing versus buying your own home.  A renter assumes far less risk by signing his/her name to a lease agreement than when closing on a house.  Typically a rental agreement locks you into a contract for a short period of time, relatively speaking, during which the rental rate is locked as well.  Such a contract can protect you from the downswings of the real estate market, especially the volatility frequently demonstrated by adjustable rate mortgages.  Granted, as a renter you don’t stand to gain any equity in the house should the market turn up.  However, you also don’t expose yourself to the violent downswings in housing values wrought by an oversaturated market. Should you buy a house now and a year later need to move to pursue a new job opportunity, what happens when your realize those inflated prices you paid for your house are not so inflated anymore.

Avoiding the Headaches of Ownership 

By agreeing only to rent the dwelling, you manage to avoid many of the disadvantages associated with owning a house.  Normally the landlord is responsible for general maintenance of the flat.  Many home owners are quick to offer their stories of frustration, disappointment, and even anger when things go wrong in the house.  Pipes burst, flooding occurs, air conditioning units break during the scorching summer days of July, and heating systems fail in the dead of winter.  All these things can and will happen, setting homeowners back considerably.  Thus, as a renter you can avoid many of the major financial investments owners must make to maintain the comfort and liability provided by a dwelling.  Agreeing to a lease agreement helps mitigate the risks of living in a home or apartment. 

Weighing your Options 

A rental or lease agreement can offer many advantages to those of you looking for a place to live.  Ultimately, each individual must decide what is right for them.  Some are more than willing to bear the risk inherent to the housing market because they have a strong positive cash flow and are in a position to endure the twists and turns of the market. 

Don’t be afraid to weigh your options and consider the risks of owning versus renting.  For many, playing the game conservatively and waiting for housing prices to come back down to Earth will prove to be a successful strategy.  There is no shame in signing that lease agreement, living in an apartment for a year or two before moving on to that house you have wanted so badly.
 Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

5 Money Saving Tips When Selling Your Home

Your home is undoubtedly the most valuable asset for the vast majority of us and selling it will cost thousands. Using the money saving tips in this article should reduce the cost of moving home. 

Estate Agent fees vary, so shopping around and don’t forget to haggle and pay one off against the other. You should aim for 1% commission, also push then to limit the tie-in period to no more than 6 weeks, this gives then enough time to sell the house, but if they can’t you can move to another agent without going “multi-agent” which will increase the fee to about 3%+, a big no-no! Ensure you get a fair valuation; never tell an estate agent what other agencies have valued your house at. They will use this to manipulate its offer, often resulting in wide distortions.  

It is false economy to go for the cheapest solicitors, so get recommendations from all the estate agents you speak to and remember to ask for the name of specific people, rather than just the legal firms. Give them a call and ask what their charges are, also note whether they are they friendly, helpful, and most important efficient? Fees are negotiable so haggle! Play off each one against the other to get yourself the best service at the best price. 

Selling you house privately can save thousands. One in twenty vendors is now taking the DIY route which could save you thousands. That is a massive money saving tip, but there are a couple of downsides, basically “time and effort”. You could consider newspaper advertising, flyers and signs. Newspapers usually charge per line or per word so try to keep your advert as brief as possible without making it uninteresting. The simplest way would to sell your house yourself is to use one of the many online house selling service. 

Obviously it is best to sell your house when the market is strong and demand is high, so keep an eye on the local property market. Generally, the market tends to be stronger in early and late summer than the rest of the year, so aim to sell your house then. Also avoid completing with your neighbours so if there are already a few “For Sale” signs on your street, it might be better to wait a bit. 

Research has shown that a poor presented house can take longer to sell and may reduce the price by thousands. So get your paint brushes out, give your home a lick of paint and finish all of those DIY jobs which are outstanding. Also talk to the estate agent about adding value to your property it may be worth spending a bit of cash to make some more. However, be careful not to over spend, you might not get your money back, so talk all planned improvements through with your estate agent. 
If you are determined to save money when selling your home, do some more research, as they say knowledge is power. A brief browse around such sites will allow you to get all the information you need to save you a ton of money.
Gordon Pate is a 5^thgeneration resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Build A New House Or Buy An Existing One? Use Your Head And Your Heart.

I am living in living in the fourth house I have purchased during my 23 years of home ownership. To some that may seem like a lot of houses, to others it may seem like I’ve just started. The simple fact is we Americans move a lot… 11 or 12 times in a lifetime depending on whom you consult. Chances are you are going to purchase a house during quite a few of those moves and somewhere along the line you may have the opportunity to build a new home.
Should you?
Everyone has fantasized at some point about his or her dream house. You may want closets big enough to live in; a bathroom that doubles as a spa; a kitchen in which you could produce programs for the Food Network But, as in most fantasies, there is usually some epic journey required to achieve the goal. And building your dream house follows that plot line all too closely.
But isn’t it the dream that makes the quest worthwhile? Yes, if you can weather the storms and battles along the way. And the determination to keep moving forward is usually a function of a strong will and a big heart. But it helps to use your head before you set off on your personal version of “The Lord of the Rings.”
It is likely that you have options when you begin the process of buying a home. There may be existing homes in the area that are affordable and that meet your needs. But there are always things about any property or house that don’t exactly meet with your approval. The basement may not be finished or the yard may be too small or the interior décor may have to be entirely redone. It is virtually impossible to buy an existing home without making compromises.
Building new allows you to imagine, design and build the home that accommodates needs and amenities that are important to you… within a budget of course. And that is one thing that must be considered. A new home will be more expensive, on a cost per foot basis, than an existing one. That is due to the cost of land, the price of building materials and labor expense. You might also find that taxes are high as a new area is developed and the municipal authorities factor in the required infrastructure for a growing population and the need for services like education, law enforcement and recreation. You may find yourself subsidizing some of these costs as an area develops.
The ongoing costs associated with an existing house are more predictable. However, there will likely be more maintenance expense than for a new house and energy costs tend to be higher with older properties because newer homes are more energy efficient.
Commuting costs may be an issue. Developers must go further and further out to find enough land to accommodate a new subdivision. That may mean higher costs for commuting to work and to access other businesses and venues that may be closer to the nearest major population center. You should consider this from both a monetary perspective and to determine if you are comfortable with an additional investment of time.
If your new house is built in a subdivision there may be ongoing fees required. In addition, there may be covenants that are designed to protect property values that may apply serious restrictions on your ability to enhance your home and/or your property down the road.
A new home needs new landscaping. This may be included in the price of the home but there will likely be a limit to what is covered under the agreement. To landscape the property in a way that is truly satisfying may require an additional outlay.
Beware of construction delays! Building contractors are notorious for setting deadlines they miss and making promises they can’t keep. Make sure you do some thorough research about the builder and his track record before you commit. Weather is always unpredictable and may have an effect but that should be factored in from the start.
A new subdivision can be a hornet’s nest of building activity.  If you move into your home early in the process be prepared for hammering, sawing, trucks, mud and general chaos for quite a while as the subdivision progresses. This is a lifestyle issue and is a temporary inconvenience. But some have found this level of activity disconcerting and disruptive especially when they are settling into their “dream home” and trying to savor the experience.
If you build new be prepared to stay for a while. With new construction all around you it would be difficult to compete with the rest of the properties available for others who want to build a house from the ground up. You would have to make it worth their while and that usually means a compromise in price.
All this being said (and trust me there is more that could be said) there is nothing quite as satisfying as showcasing the house to family and friends that you designed and built and that reflects your unique vision and personality. If you survive the journey, you will likely have turned your fantasy into reality.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Budget For Closing Costs – Property Taxes, Legal Fees And Such

You probably spent a good bit of time getting disciplined to save money for your home purchase. You need to carry this financial discipline through the escrow period or you could run into problems.
Budget for Closing Costs – Property Taxes, Legal Fees and Such
When you decided it was time to purchase a home, you went through a number of steps to get your finances in order. You probably reviewed your credit report, cut down on credit card balances and reigned in your spending. A monthly budget was probably also an item you stuck to, probably with some aggravation. Once you have an offer for a home accepted, it is important that you keep budgeting for the closing costs associated with the purchase. Here are a couple of odd little fees that can show up and drive you nuts if you are not careful.
Being required to pay property taxes can be a nasty little surprise. After all, you do not even own the home yet! The requirement, however, comes because of the nature of how property taxes are paid. They are not paid every month, so the seller has prepaid the taxes beyond the period they will own the home. They will want that money back! You can negotiate this point as part of the purchase, but you need to be aware it is out there.
In some states, it is a legal requirement that you have a lawyer represent you in a real estate transaction. This requirement primarily exists in the East. Regardless, attorneys are expensive and you need to have money set aside to pay their fees. In truth, retaining a lawyer is a good idea since they tend to sniff out any questionable issues in the transaction. Fees can run you from a couple hundred bucks to thousands of dollars.
In addition to the above, there are a lot of small fees associated with closing. They can run from several hundred dollars paid to the escrow company to $20 or so for notary fees and so on. If you do not keep an eye out, they can add up quickly to a few thousand dollars.
Closing on a home can be aggravating with all the costs you have to pay. It will all be worth it when you walk into your new home the first time.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Budget For Closing Costs – Prepaid Loan Interest And Home Insurance Premiums

Entering into escrow on a home can be both exciting and stressful. The excitement comes from knowing you are close to moving into the new home. The stress comes from issues that will arise.
Budget for Closing Costs – Prepaid Loan Interest and Home Insurance Premiums
As part of any closing, you need to go through certain steps to make sure you are both getting what you think you have purchased as well as paying for it. Each of these steps has an associated cost, known as closing costs, and you have to pay them before you can take possession of the home. If you do not, the deal will not close and you will lose the home.
When going through escrow, costs associated with closing can accumulate quickly. Here is a closer look.
Prepaid loan interest is an ugly little surprise for many first time homebuyers. The lender will often require you to pay the interest that accumulates between the day the loan is funded and the day you are actually scheduled to make your first loan payment. Many people mistakenly believe they have roughly a month before they have to start paying. This is rarely the case, and the sudden requirement to pay a hundreds or thousands of dollars can be a nightmare. If at all possible, you should try to get the lender to fund the loan as close as possible to the actual closing date, even on it. Try to avoid closing the loan on a Monday. The lender will have to fund the loan the previous work week, which means interest will be growing.
Homeowners insurance is something you are going to need and most people expect as much when buying a home. If you are not informed, however, you will be surprised at closing when you find out you have to pay the full premium for the first year of the policy. Depending on the value of your purchase, this can add a couple hundred dollars to thousands of dollars onto your closing costs. Again, it is important to budget for this cost when putting funds together prior to purchasing a home.
If you are going to purchase a home, you are going to have to pay these two items at closing. Make sure you budget for them to avoid running into cash flow problems.
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Benefits of Having a Real Estate Agent Website

There are thousands of individuals who rely on selling real estate to make a living.  These individuals are known as real estate agents.  The majority of real estate agents work for an existing real estate agency; however, there are a number of agents who work on their own.  Whether you have your own real estate business or work for an existing company there are number of benefits to having a real estate agent website.
Real estate agents are trained professionals that many individuals go to when they need help to sell their existing home or to purchase a new one.  A large amount of trust is needed to do business with a real estate agent.  New home buyers or sellers want the reassurance that they are doing business with an individual who is working in their best interest.  Since it is often hard to develop a sense of trust with an individual that you hardly know a real estate agent website could come in handy.
A real estate agent website is not guaranteed to prove that a real estate agent is legitimate or offering the best service around; however, it is still helpful.  A real estate agent website will give you valuable insight into the personal life and professional training that a real estate agent may have had.  A real estate agent website will common have information on the agent in question.  Common information may include their age, where they live, any children, any community ties, where they went to school, or any relevant real estate training they may have had.
If you are a real estate agent and you currently do not have a real estate agent website you should consider having one made.  When making a real estate agent website there are two options that you should consider.  You can develop your own website or hire a professional to do it for you.  Hiring a professional will cost money; however, professional websites are more likely to increase your website traffic and possibly your real estate sales.  The end result would make this money well spent.
If you are a real estate agent working on your own then it may be easier to make the decision to have a real estate agent website developed.  If you are a real estate agent who is employed by a larger company you may have to have company approval before having a real estate agent website developed.  If this is the case you should not be afraid to approach your supervisor.  It is highly likely that having a real estate agent website will increase the number of clients who obtain their services.  It is possible that your supervisor may even wish to have all of their real estate agents develop their own website.
Since there are a large number of benefits to having a real estate agent website you should not be without one any longer.  Developing a real estate agent website is easy to do.  Why lose potential sales just because you do not have a website?
Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.

Bellingham Real Estate Investing Can Be Profitable

With its beautiful shoreline, lush fir forests and stunning Cascade Mountains Bellingham, WA real estate is certainly outstanding property to consider investing in.  Prices on land and homes have risen in the Bellingham Bay area during the last several years making it a little more difficult to find affordable housing for the average person.  Because of this, many first time homeowners as well as investors sometimes turn to the foreclosure market in Bellingham, WA.  
Although the Bellingham real estate market has not been hit with an unusual amount of foreclosures compared to many other parts of the nation, there are still an abundance of opportunities to find that steal of a deal.  Everyone should realize that investing in Bellingham real estate or foreclosures is not "amateur night."  It can be risky.  You must do a tremendous amount of homework and know what you are doing.  It’s usually best to have a qualified real estate broker or real estate attorney represent you in this endeavor.
You can minimize your risks in the Bellingham real estate market
If you want to buy foreclosure properties in Bellingham, WA, you must know how to find the potential property and access its value.  You must know how to carefully research and inspect the property, so you don’t get stuck holding a money pit - or ever worse, a totally worthless piece of paper.  You must also learn how to deal with home owners, how to bid on property and how to buy well below the market value so that you can sell for maximum profit.
Do your homework and learn how to:
-Research property titles, mortgages and deeds
-Obtain financing
-Avoid the most common pitfalls
Good and bad candidates for buying foreclosures
Investing in foreclosures in Bellingham, WA is not right for anyone who is currently having financial problems and is hoping a foreclosure will bail them out.  This is not easy money regardless of what the late night infomercials may say.
Foreclosures in the Bellingham real estate market can be very right for a person who has a ton of cash, a steady job, a reliable cash flow or a financial backer.  A backer can be anyone from a business partner to your grandmother.  If this is something you really want to do, you can always find sources for investment capitol.  
What kinds of things do you look for as a Bellingham real estate foreclosure investor?
Lots of things, from top to bottom and inside and out.  Look at cracks in concrete, windows, roof, and doors - look at everything.  Foreclosures aren’t always in top-notch condition.  The owners may not have been able to afford to keep up maintenance.  If you can’t hire a professional home inspector in Bellingham, WA, do what you can by inspecting the property yourself from all angles outside.
Things to avoid when investing in foreclosures in Bellingham, WA
Buying from long distance, in a distressed neighborhood, preconstruction projects and avoid buying from anyone that promises you cash back at closing.  This is totally illegal.
Types of Foreclosures in Bellingham real estate
Many aggressive investors go after foreclosures when there is a downturn in the housing market.  Foreclosures are homes that people have lost because they didn’t pay their mortgage payments or property taxes.
Pre-foreclosure: The owner has missed three or more payments and the lending bank has started foreclosure proceedings.
Foreclosure Auction: The home is released to the mortgage company and they can arrange an auction.
Real Estate owned properties (REOs): Real Estate Owned by the lender, this status indicates the lender or bank now owns the property as a result of a foreclosure .
Each of these types of foreclosures offers its own particular unique opportunity for the investor.  In Bellingham real estate, the homeowner can still list the property as a "short sale."   This is where the bank will consider offers that will not pay off the mortgage in full.  The bank will forgive the difference owed because it will be less of a loss than if the bank had to go through all of the steps of foreclosure --- foreclose on the property, prepare it for a sale and then resell it at a later date.
Most Bellingham real estate investors know they can often buy these homes for 15-20% less than market value.  If the property goes through full foreclosure, the bank will either place it up for auction or list it with a good real estate agent.  If the property goes to auction on the courthouse steps, bidding is usually extremely competitive, but it is here that investors often have the opportunity to make the largest profit.
The earlier you buy in the process, the better the opportunity of making a good profit.  You must know the current value of the property, the elements of time and market cycles.  If you have to make repairs, you must know how to figure your rate of return and in what time frame.  If you have the necessary skills and qualities it takes for investing in Bellingham real estate and foreclosures, it can indeed be a very profitable investment.

Gordon Pate is a 5^th generation resident of Bryan-College Station, his extensive knowledge of the area and its culture helps you get acquainted with Bryan-College Station Real Estate. He offers various homes for sale college station properties that satisfy what you need and what you want.