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.

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.

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.

Bank Foreclosures

Bank foreclosure real estate, also referred to as REOs (Real Estate Owned), is foreclosed real estate that is owned by the bank due to an unsuccessful foreclosure auction. There are several reasons the home may have not sold at the auction. The most common reason is negative equity- the bank foreclosure real estate is worth less than the amount owed to the bank. Of course, the bank seeks to receive the outstanding balance of the original loan; therefore, the minimum bid for the bank foreclosure real estate is usually the amount of the outstanding balance of the original loan, plus interest and any additional fees. No smart investor or buyer will consider bidding on such a property.
Nevertheless, an unsuccessful sale will not stop the bank from trying to make an attempt to get the bank foreclosure real estate sold. The bank will consider removing some or all liens and fees on the bank foreclosure real estate in order to get it on the real estate market and resell it to the public. The resell process may be retrying an auction or working through a Realtor.
This is a hot market for real estate investors. Real Estate investors take an eager interest in bank foreclosure real estate property. The market of foreclosed homes may be large; but, not always suitable for some investors. The foreclosed property may not meet some important needs. Nowadays home buyers and investors alike are scrambling through the market of bank foreclosure real estate looking for better deals. Though, most bank foreclosure real estate property is in poor condition, the low sale price of the home highly compensates for the property poor condition.
Investing in bank foreclosure real estate property offers a great return for investors. Bank foreclosure real estate by far offers greater deals than typical foreclosed homes. As an investor you must consider all your options. Make sure you get the bank foreclosure real estate property at the best price. Hopefully, the bank foreclosure real estate that an investor chooses to invest in will give the investor rewards; such as a larger return in profit, either through renting the home out or through selling the home.
There are several ways to search for bank foreclosure real estate property.  You can search the Internet, magazines, and newspaper listings. The Internet can lead you to thousands maybe millions of connections. Here you can view listing by state, banks, county, and much more.
You should also invest time in finding a good real estate agent.  If they know what you are looking for, they can save you a lot of time and work.  They can also help you determine the true market value of the home you are considering investing in.

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.

Bakersfield California Real Estate

Bakersfield, California, is located in Kern County, 100 miles NW of Los Angeles, California. Bakersfield has a population of 247,057. It has become a popular place for visitors en route to and from Las Vegas and Los Angeles, who stop for outdoor adventures such as whitewater rafting on the Kern River or hot air ballooning over the San Joaquin Valley.
Agriculture is king in Bakersfield. The region grows over 250 types of crops, with about 30 types of fruits and nuts, 40 types of vegetables, and over 20 field crops. Lumber, livestock, poultry and dairy products are also big industries here. The area is also home to the California State University, and Bakersfield College, and numerous museums and galleries.
Bakersfield Homes
Bakersfield properties pool is 83,428 residential properties including Bakersfield new homes. The median age of real estate in Bakersfield is 1979. The average household size is 3.41 people. 3% are one bedroom homes, 14% are 2 bedroom homes, 56% are 3 bedroom homes, 22% are 4 bedroom homes, and 2% are 5+ bedroom homes.
Bakersfield Mortgage Statistics
Homes With No Mortgage 18%
Homes With Mortgage 82%
First Mortgage Only 63%
First & Second Mortgage or HELOC 19%
Bakersfield Area Real Estate Tax
Bakersfield Real estate Tax: Median Real Estate Taxes (2000) were $1,422 comparing to 1999 Median Family income $ 45,556. Compare to USA median yearly Real Estate Tax $1,300 and USA median Family Income $42,000 (1999).
Bakersfield School District: Children make up 32.7% of Bakersfield population. Bakersfield has 80,683 under 18 years old residents, or 0.81 kids per one worker, or 0.97 kids per one household.
Bakersfield Real Estate & Bakersfield Homeownership
There are 18354.16 or 22% one person households, 23359.84 or 28% two person households, and 14182.76 or 17% three person households in Bakersfield, California. Median residents age is 30.1, Senior citizens (65+) make up 21,681 or 8.8%% of Bakersfield population.
There are 99,769 workers (over 16 years of age) in Bakersfield. Of these, 92.68% drive to work. Approximately 1.73% of workers in Bakersfield take public transportation. An estimated 1.32% walk to work.
Median Bakersfield homeowner's housing expenses are 22%
Crime in Bakersfield (2003), crimes per 10,000 residents per year
Violent Crimes 61.28
Robberies 17.77
Aggravated Assaults 40.88
Property Crimes 570.8
Burglaries  109
Larceny-Thefts 381.09
Motor Vehicle Thefts 80.71
Invest in Bakersfield Properties
When making a decision about buying real estate in Bakersfield California area, you should consider the following statistical data:
Near Medium City        
Near Large City  Los Angeles, California
Bakersfield Zip Codes  93301, 93304, 93305, 93306, 93307, 93308, 93309, 93311, 93312, 93313, 93314
Bakersfield Area Codes 661
White population  61.87%
African-American population 9.16%
Asian  4.33%
American Indian & Alaskan
Hispanic (of any race) 32.45%
Median Family Income (1999)  $ 45,556%
Population Below Poverty Level  17.72%

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 withBryan-College Station Real Estate. He offers various homes for sale college stationproperties that satisfy what you need and what you want.

Real Estate Services India

India's real estate market is getting very, very warm.
 It still may be a fragmented industry with high transaction costs and an absence of transparency, but it is whetting the appetites of domestic and overseas investors. In India, changing government policies and a focus on infrastructure are driving up the demand for housing developments, malls and offices.
"For investors seeking the high returns that are no longer possible in the mature European and North American real estate markets, India and China are hot," said Prakash Gurbaxani, the chief executive of TSI Ventures in Bangalore, a joint venture of Tishman Speyer Properties of New York and ICICI Bank, based in Mumbai.
"Every foreign investor group, including pension funds, high-net-worth individuals and private equity funds, are all looking at this sector," said Gurbaxani, whose company has planned to invest more than $1 billion in the industry in the next few years.
 In the past, investors were wary of the opaque business practices in Indian real estate. The land laws were archaic, mortgage financing was expensive and the quality of the developments was poor.
But these days, India's $12 billion real estate market is expanding at a 30 percent annual rate. Analysts at Merrill Lynch predict that the real estate market will grow to $90 billion in 10 years.

 Foreign and domestic investors are eagerly scouring this market, but only recently has real estate begun attracting meaningful amounts of capital, said Rajesh Khanna, managing director in India of the private equity firm Warburg Pincus. In the past year, Warburg Pincus has dedicated a third of its resources in India toward creating and evaluating real estate investment opportunities.
 Next month, the real estate developer DLF Universal will have a public offering that is expected to raise more than $3 billion in what is billed as India's biggest share sale. It tops earlier public offerings such as the $2.3 billion share sale of the government's Oil and Natural Gas Corp. two years ago.
Kushal Pal Singh, the chairman of DLF and one of India's richest men, is credited with turning a sleepy New Delhi suburb into a bustling zone of fancy malls and offices. DLF has projects in 18 cities but plans to expand to 36.
Last year India's government eased restrictions on foreign ownership of real estate, construction and housing companies. Foreign developers can have wholly owned subsidiaries in India if they invest $10 million. Foreign companies can build commercial and residential buildings if the projects exceed 50,000 square meters, or about 538,000 square feet.
Last month, the California Public Employees Retirement System invested $100 million in a real estate fund floated by IL&FS Investment Managers of India. In March, Morgan Stanley's real estate investment arm said it would pay $68 million for a minority stake in an Indian property firm, Mantri Developers.

1.       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.

Real Estate Lingo For The Newbie

In today's real estate market there is a lot of uncertainty. The sub-prime mortgage crisis is the buzz word phrase that has a lot of people talking. One lesson that can be learned from this situation, is that it is so important for prospective homeowners to know what they are getting themselves into. Buying a home can be stressful, and overwhelming, but knowing what you are signing on for is paramount to securing an investment that will serve you well. A little education can go a long way. Below is a glossary of key terms associated with all things real estate. If you are a "newbie", familiarize yourself with these as you begin your real estate search:
We'll begin in the middle of the alphabet with "M" words, as "mortgages" seem to be the hot topic these days.
Mortgage: is a lien on the property that secures the Promise to repay a loan. A loan to finance the purchase of real estate, usually with specified payment periods and interest rates.
Mortgage broker: Is a professional who works for a firm that originates and processes loans for a number of lenders.
Mortgage banker: Is a company that originates loans and resells them to secondary mortgage lenders such as:Fannie Mae or Freddie Mac."Who????", you ask. Just, read on.
Fannie Mae: Is a sort of acronym which stands for Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholder. This enterprise purchases residential mortgages and converts them into securities for sale to investors;by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential home buyers.
Freddie Mac: Is another acronym of sorts is the Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, coverts them into securities,and sells them to investors, providing lenders with funds for new home buyers.
Mortgage insurance: Is a policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan. Mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's purchase price.
ARM: Adjustable Rate Mortgage is a mortgage loan subject to changes in interest rates. When rates adjust, ARM monthly payments increase or decrease at intervals determined by the lender. The change in monthly -payment amount, however, is usually subject to a Cap. "What is Cap in this case?", you ponder. Again, just read on...
Cap: Is a limit, such as that placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease.
Assumable mortgage: Is a mortgage that can be transferred from a seller to a buyer; once the loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a fee and/or a credit package involved in the transfer of an assumable mortgage.
Amortization: Is the repayment of a mortgage loan through monthly installments of principal and interest. The monthly payment amount is based on a schedule that will allow you to own your home at the end of a specific time period.
Appraisal: Is a document that gives an estimate of a property's fair market value; an appraisal is generally required by a lender before loan approval to ensure that the mortgage loan amount is not more than the value of the property.
Balloon Mortgage: Is a mortgage that typically offers low rates for an initial period of time, after the said time period elapses, the balance is due or is refinanced by the borrower.
Bankruptcy: Is a federal law whereby a person's assets are turned over to a trustee and used to pay off outstanding debts. This typically occurs when someone owes more than they have the ability to repay.
Building code: Is based on a set of agreed upon safety standards within a specific area. A building code is a regulation that determines the design,construction, and materials used in building.
Credit bureau score: a number representing the likelihood a borrower may default. This number is based upon credit history and is used to determine ability to qualify for a mortgage loan.
Debt-to-income ratio: a comparison of gross income to housing and non-housing expenses. With the FHA, the-monthly mortgage payment should be no more than 29% of monthly gross income (before taxes) and the mortgage payment combined with non-housing debts should not exceed 41% of income.
EEM: Is short for an Energy Efficient Mortgage. This is an FHA program that helps home buyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase
Fair Housing Act: Is a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.
Home Inspection: Is an examination of the structure and mechanical systems to determine a home's safety; makes the potential home buyer aware of any repairs that may be needed.
Interest rate: Is the amount of interest charged on a monthly loan payment. This is usually expressed as a percentage.
Lease purchase: This exits to assist low- to moderate-income home buyers in purchasing a home. It allows them to lease a home with an option to buy. The rent payment is made up of the monthly rental payment plus an additional amount that is credited to an account for use as a down payment.
Lien: Is a legal claim against property that must be satisfied When the property is sold
PITI: Principal, Interest, Taxes, and Insurance. These are the four elements of a monthly mortgage payment. The payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance goes into an escrow account to cover the fees when they are due.
Pre-qualify: This is when a lender informally determines the maximum amount an individual is eligible to borrow.
Pre-payment: This is a payment of the mortgage loan before the scheduled due date; maybe Subject to a prepayment penalty.
Principal: The amount borrowed from a lender. The principal doesn't include interest or additional fees.
Real estate agent: Is an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.
REALTOR ®: Is a real estate agent or broker who is a member of the NATIONAL ASSOCIATIONOF REALTORS, and its local and state associations.
Refinancing: Means paying off one loan by obtaining another. refinancing is generally done to secure better loan terms such as a lower interest rate on a loan.
Rehabilitation mortgage: Is a mortgage that covers the costs of rehabilitating (repairing or Improving) a property. Some rehabilitation mortgages, allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.
Sweat equity: Using your own labor to build or improve a property as part of the down payment
Title insurance: This is insurance that protects the lender against any claims that arise from arguments about ownership of the property;also available for home buyers.
Title search: Is a check of public records to be sure that the seller is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.
Of course, there are many more terms and different types of mortgage situations to explore and educate yourself on. But, the above definitions are a good start toward becoming acquainted with the language, lingo and important concepts 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.

Real Estate Lesson Learned: Is Big Better?

Copyright 2006 National Real Estate Network LLC
At one time in my life I was buying 7-8 Houses a month, fixing them up and then reselling them. Then I got the bright Idea that if I can buy and sell 7-8 a month, I can buy and sell 80. This was a choice that eventually led me to bankruptcy. This has not been that long ago. Twice in my life I have made a lot of money and then took on a large growth spurt and got a large learning experience in business failure. The last one resulted in bankruptcy.
It is hard when things are going well to not be seduced by more is better. When you have something working for you, it is easy to become overconfident and start to think of multiplying it. As with most things in life, you want to be sure when you take on something, that you complete it. Pumping up the volume puts you at risk of not having the structures and being set up to deliver on what you are committed to. You naturally encounter problems that were not present on a smaller scale. It is hard when things are going well to not be seduced by more is better. I had to learn personally that pride Goethe before the fall. The bottom line is that there are always good deals in Real Estate! I say measure your success one house at a time. Buy investor property, fix it up, resell it, rent, do a lease-option, but do it one house at a time.
Multiple Purchases?
One of the most common mistakes I see in business is where investors come into the business and think they need to do multiple houses at a time. Try this on: Try doubling the cost you think it will take to fix the property, doubling the time you think it will take to rehab the property and figure your holding costs doubled (insurance, mortgage payments, taxes, lights, gas, rehab cost).
Great deals in Real Estate don’t come in houses fixed and ready to sell. The great buys come from houses that need work. If you are just getting started, stick to cosmetic rehabs (paint and carpet), Don’t take on major rehabs. It will take time to develop rehab crew. The most successful people I see in Real Estate do one house at a time. Failures are great; if you look at them and ask what action was missing that would have made a difference?
Hard moneylenders?
One pitfall is using very expensive money. For years I ran a business financed on money from Real Estate Investors who are called hard moneylenders. They look at collateral and loan money based on receiving interest can be 18% or higher when you figure in the closing costs. When you get multiple properties in this condition, you will have interest payments that are going to be double and triple what conventional financing is in Real Estate.
Now combine this with the common lie we tell ourselves that we can repair the house and put it back on the market for sale or rent in a short time. Your overhead will rise because you will need a staff to manage and rehab everything. Can you see this is a recipe for disaster for everyone? Now if you are doing one house at a time, your overhead will probably stay very low, with very little staff. Therefore you have limited your expenditure of time, money and aggravation.
At one time, my overhead was in excess of $50,000.00 per month. I had to depend on other people to do everything, including checking the work. A hundred percent of the monies I was making went paying down my debts and I kept telling myself I would turn it around tomorrow. I found myself with houses that were not finished and houses being lost in foreclosure and for taxes. That left me a very motivated seller and bankruptcy was looming large. With my overhead still there, I attempted to wholesale deals. I decided I would no longer find, repair and resell homes. Instead I would find great buys and sell them to other investors.
Basically, I started my business over. It takes a great amount of time to cultivate a list of investors interested in buying deals. This business is built on the concept you can borrow you way out of debt, but it just does not work. You have family, friends, and business associates that may get hurt or destroyed. I’m not saying this to tell you a sad story, but rather in the hopes that by sharing it, someone else can avoid the pain of my mistakes. Take from this what you can learn for yourself. I am 53 years old and starting over. I now have the knowledge to build a business with the proper foundation. I teach Real Estate Investing class now that look for pitfalls and what is needed to do a successful deal one at a time.
My advice to you on handling real estate transactions is: Use Title Companies What can happen to you when you fail to get title insurance? We had a participant in one of our seminars, who purchased a house to fix it up. He invested over $40,000 into the home in both repairs and purchase price. When he went to refinance, he found out the person he purchased the house from was not in the chain of title. In other words, he did not have a clear title. Whenever you purchase a home, always close through a title company with title insurance on the property. Title insurance is protection that insures the borrower or lender that they get the property with marketable title. They will only insure the property for the purchase price or for the amount of the mortgage.
Use a reputable lender
Interview lenders. Go to Real Estate Investor Clubs to find out from other investors which companies are doing the best job. Are you at risk when you use a lender that wants to cross collateralize loans or wants personal guarantees? One lender I know will get one-two year mortgages and demand a right to lien all the properties you own to procure the loan you are getting. Just beware, if you are buying the property to fix up and resell, there are things that you don’t always plan on like: twice as much rehab cost as you planned for, longer marketing time than you initially thought, resulting in added holding costs, or maybe the market moves the wrong direction and you can’t sell the property, so you rent it. Now one of your other properties or even your personal residence needs to be refinanced. You now have a lien showing against the property. Now what do you do? Think before you jump. If you have purchased the property right, you should be able to borrow money based on the equity of that property - not you’re home and other properties.
This same lender will ask for a personal guarantee signed by you, your wife and your partner. This personal guarantee allows his mortgage company to lien anything the partner and wife own. Not only that, but this particular lender demands that you use a Title Company he owns. Now when you want to sell another one of your houses and this same cross collateral loan will show up on any property you are selling. Now you are faced with using his title company or he won’t release his loan. Beware of putting yourself in a situation where you are using a person who controls the lending, title work, the appraiser and the Real Estate Company.
Do you think, if you had your title work placed with a company the Lender had ownership in, you might run into a problem getting the documents released or have a clean closing at the same title company? Why risk letting human emotions drives a stake into your deals? Keep an arms length distance within your dealings. If you are selling homes or wholesaling property, let the buyer find his own lender and make sure you get an independent title company. Make sure there is not a conflict of interest in the Title Company, Mortgage Company, and real estate company. Keep the integrity in the deal. I am sure there are title companies, real estate companies, and mortgage companies, where there is common ownership that run very good businesses and can separate the conflicts of interests and profit centers. However, to protect yourself, make sure you receive proper disclosure of common ownership. You can always look at the volume of business they are doing in each business and check with the state Licensing Dept. for any complaints against the firm.

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.

Real Estate Investor Question: Rehab and Sell, or Rehab and Keep?

Here's another awesome question I received from my discussion board.  The question; Why bother keeping property after it's rehabbed?  Why not sell it after the rehab and GET PAID!
Of course, the first questions that you must answer is how emergent is your need for quick cash?  You can likely generate the most SHORT TERM cash by selling a freshly rehabbed house.  But, you will give much of it away in taxes come next April.
If you keep it, you stand to make more!  You will also enjoy some great benefits while you own it such as cash flow, a tax break, and MORE cash with the future appreciation.  You can still pull some nice cash a few months after buying it when you refinance (post rehab) the property from your hard money (at 70% loan to value) to long term financing (at 85% or 90% loan to value).
The short answer is an investor is going to make considerably more money by hanging onto a property after it's rehabbed.  There is a downside to it.  You have to be a landlord, and you have to decide if you want to do that.  I don't think it's too bad as long the landlording is done correctly.
Let me illustrate the difference in overall money between rehab and sell, and rehab and rent investing with this example;
Let's say appreciation rates are 5% in your town and the average price of a freshly rehabbed property in the neighborhoods investors buy in is $100,000. Let's also say there is Bill and Fred.
Bill sells his properties after rehabbing and makes $15-18,000 per house. Good boy Bill!
Fred keeps his rehab projects and cash-out refinances, pulling out around $10,000 per house within 3-6 months of ownership.  (Fred trades his 70% loan-to-value (LTV) ratio hard money for long term, 30-year mortgages at a lower interest rate with an 85-90% loan to value ratio.  He pockets the difference between what it costs to pay off the hard money and the new mortgage less closing costs.  This works out to about $10,000 per property.)
Bill (rehab and sell) makes a great living. Ten houses per year is $150,000-$180,000 per year...nice jingle! The downside is that Bill has to keep rehabbing to keep making that living year-after-year and pays taxes on all that money as regular income (ouch!).  So his $150,000 per year is in reality somewhat less.
Fred (the rehabber) also makes a great living. Ten houses per year makes him $100,000 or so in tax free, spendable cash. But, Fred controls a million dollars in real estate and it's going up in value year after year.  Also, Fred pays no taxes on that money he gets from the cash-out refinances.  It's part of a mortgage, so must be paid back, therefore is not income!  I love that part!
Let's look at what Fred's doing more closely.
Let's say Fred bought 10 houses valued at $100,000 each, owes $90,000 on each one (after the 90% cash out refinance), so he controls $1,000,000 in property. If he keeps them 5 years (assuming a low appreciation rate...which is pretty conservative):
Purchase year - 10 houses x $100,000 = $1,000,000
Year 1 - Same 10 houses X $105,000 = $1,050,000
Year 2 - Same 10 houses X $110,250 = $1,102,500
Year 3 - Same 10 houses X $115,762 = $1,157,620
Year 4 - Same 10 houses X $121,550 = $1,215,500
Year 5 - Same 10 houses X $127,627 = $1,276,270
Essentially, Fred makes an extra $50,000 per year for keeping 10 properties. After owning them 5 years, if he sells, he puts $276,000 in his pocket.
Remember
- Some parts of the country will appreciate much faster than 5%.  Heck some places properties will double in value in 5 years.
- No tax benefits of keeping the property is included here. That equates to thousands of dollars in real income.
- This is ONE ten-house year. Let's say you want to "top out" at owning 30 houses. Well, in just a couple of years your buying will slow down to a trickle and you'll start selling and cashing out of properties. I mean, how many ten-house years to you need to string together before you are set for life?
- What if you hold these houses 10 years?  The numbers get pretty exciting.
If you're like me and you don't want to do this for too many years, then holding properties for a few years makes a lot of sense, especially if you don't have much personal money invested in them.
So what of poor old Bill?  Chances are, Bill will satisfy his need for short term cash, then start holding property.  What do you think?
Contact or visit Gordon Pate for more details.

Real Estate Investments’ Guideline

Investing in real estate can be profitable if you know the correct ways to do business in this field. As real estate investment experts say there are several keys to making significant profits in real estate investment deals. And when the deals are profitable, you will certainly be well on your way to success.
For real estate investment neophytes, don’t be afraid of the challenges and pitfalls you may encounter along the way. There is definitely a lot to learn, but in the long run after you have gained some experience, you’ll hopefully become a master at closing profitable real estate deals.
There are 5 core skills that are necessary for building a real estate investment business. These will be the key factors in creating a profitable real estate investment portfolio. These are the 5 core skills of real estate investment:
1) You should totally understand the meaning and concept of investing in real estate, including all of the financial risks and benefits.
2) You must learn when and where to find the right kind of sellers.
3) You must become an expert in all areas of real estate investment and understand such terms as lease options, cash sales, wrap mortgages, short sales and other terminology common in the real estate investment trade.
4) You must be able to quickly and accurately analyze each real estate investment deal so you’ll know exactly when to proceed and when to pull the plug.
5) You must learn the art of being a master negotiator when it comes to closing your real estate investment deals.
After considering these five skills, it is time to consider investing in real estate. There are great potential rewards and the effort you put forth can yield enormous monetary returns on your investment. Your confidence level will grow when you’ve gained some experience and closed on your first few real estate deals. But, don't stop there... You should continue to learn about real estate investing and to develop your investment skills. In a short time you may find yourself managing a profitable and growing portfolio of investment properties.
Moreover, you should also continue to follow your real estate investment "game plan" and always keep an eye out for the hidden investment opportunities. The opportunities are definitely out there and with a little knowledge and desire can be yours for the taking. So, why not get started in what might be a new and exciting (and profitable) career today?
Contact or visit Gordon Pate for more details.