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Wednesday, October 31, 2012

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 5th 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.

Friday, October 26, 2012

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 5th 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.

Monday, October 22, 2012

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 5th 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.

Thursday, October 18, 2012

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 5th 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.

Sunday, October 14, 2012

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 5th 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.

Friday, October 12, 2012

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 5thgeneration 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.