Honest Realestate Agent

Archive for December, 2008

All new things can be a little frightening or intimidating at first glance. The same is definitely true when it comes to flipping houses. Many people feel several times during their first flip that they have gotten in over their heads. The truth is that it will take more than a few flips to feel comfortable with the process. Most people make very little, if any real profit on their first flip and write it off as a learning experience only to enter into the next flip with newly learned lessons and a positive attitude. Learning the ABCs of flipping houses is a great place to begin and can help you avoid costly mistakes made by many first time flippers.

1) Appraise. You need to have a proper appraisal performed on the house you intend to flip and compare it to other houses in better condition and of similar size and style within the neighborhood. You do not want to buy the best house in the neighborhood, in fact it is best if you can find the neighborhood eyesore and turn it into a competitive house for the neighborhood in order to get the most for your money. More importantly you want the appraisal to show the actual value of the home right now as compared to the price you are paying for it and ask the appraiser what the home might be worth the with improvements you are planning to make.
2) Bold Moves. Sometimes it takes bold moves to make the impression you want to make. The decision to flip houses is a bold move in and of itself and while you do not want to necessarily enter into risky waters you do not want to play it too safe either. Be cautious with your financing and guard your expenses and your budget well but make the changes that will catch the eye of the next owner for the property.
3) You must have a can do Attitude. You absolutely must believe you can do this in order to get it done. A house flip is not an undertaking for the timid or those that lack self-confidences. You will need to stand up to your contractors, inspectors, and even some vendors in order to get the best price and the most bang for your buck. In other words you need to believe in yourself and what you are doing in order to get it done. This does not mean that you shouldn’t listen to those with more experience and expertise, especially about structural issues with the home and bringing the property up to code but you also need to stand up for yourself to make sure that you aren’t getting ripped off and paying for things you aren’t getting.
4) Determination. You must also be determined and have the mindset to see your project through all the way to completion. It takes a certain sort of pigheadedness to get through the first few flips. It should be stated here and you should know that flipping property is certainly not an easy way to make a living. It does have the potential however, to be a highly profitable way to make a living and that is what most potential flippers are looking for. In order to make those profits you must push yourself out of bed on those mornings when you feel as though going look at the property is going to make you scream and holler and pull out your hair.
5) Excitement. This may be the most necessary of all ingredients. You will find that excitement is in short supply many days but it if you can recapture that initial excitement over your decision to flip houses then it will sustain you on those days when the plumber brings bad news or you just learned that a solid weak of rain is forecasted for the weak the roof was to go on.

This is a small part of the ABCs of house flipping and real estate investing in general but I believe you get the picture. Good luck!

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

Stopping Foreclosure

How to Stop Foreclosure

With the way the economy is today it is no wonder that many people are facing foreclosure. When you first set out to buy a home, you do not think about what will happen if times get hard. One of the most awful things that people face today is having their homes foreclosed on. So just how do you stop your home from going into foreclosure?

Most people fail to do some simple things when they start to fall behind on their mortgage. At first, they have hope, that things will work themselves out and that they will be able to pay the mortgage within a few weeks. But one thing leads to another, and sometimes problems pile up. Perhaps you fell ill and you were off of work for a period of time, which lead to you loosing your job. All of this of can lead up to you being months behind on your mortgage.

Admitting to financial problems is an embarrassing prospect; so many people don’t want to talk about it, especially with their mortgage lender. The just keep hoping that things will get better so they won’t have to make that call. When it comes to your house payment not calling your lender is probably the worst thing you can do.

Fortunately, for those willing to save their home, there is a way that foreclosure can be stopped. The first step to take is to call your lender. Nine out of ten times they will have some form of plan that will help you to get back on track with your house payments. The only way you will know is to give them a call and speak with one of their mortgage specialist, who will be able to help you determine what program or plan is right for you.

If you happen to have a mortgage with the one bank out of ten that is unwilling to work with you or if you are just too far behind, then you may consider seeking the help of another company. Numerous companies deal in stopping foreclosure, they help to negotiate a fair repayment program with your mortgage company.

Another option you have is to refinance the home and get some cash back if you have equity in the home. This will help you to pay off certain debts that will allow you to free up money to be able to pay your mortgage. Some people find that they’re just financially strapped with too many credit cards that they cannot make ends meet. This is where a refinance can help immensely. You can pay off those debts so that you have the money to pay your mortgage and stay afloat.

Another alternative that will keep you from facing foreclosure is to do a quick sell your home. With the present state of affairs in this economy, there are a number of quick sale options available that were not available before. In previous quick sales it was possible to avoid foreclosure, however you only had 15 days in which you would have to move.

Now there are many lenders that will help buy your home quickly and get you out of a foreclosure and allow you to stay on to rent your home. The may even give you the option to purchase your home back, once your back on your feet.

While many people have very specific dreams of enjoying the bountiful profits that can be made from flipping houses very few people put too terribly much thought into the process or any formulas that might be pertinent to success when it comes to flipping houses as a real estate investment venture or for the sake of building a nice comfortable lifestyle or retirement. You will hear a lot about the things not to do when it comes to flipping houses but very few people take the time to mention the things you absolutely must do in order to successfully flip a house and thus begin your ride on the road to real estate investment riches.

1) Do put everything to pen and paper and plan it out carefully before you begin. If you are going to enter into this to make money you need to treat it like a business. This means you must have a plan of action and you need to make every effort to work towards carrying out that plan.
2) Do establish a budget for the entire project. You need to have a plan for how much money you are willing to invest in the property itself, how much for renovations, and how much money you need to make in order to be a worthy investment for your time and labor. A house flip is a lot of work in order to pull it off successfully. You want to have a good idea of how much homes in the neighborhood are worth, the value of your property as is and the estimated value of the property once improvements are made. In addition you should also have a pretty firm grasp of the costs involved in making the repairs in order to create a realistic budget for the entire project.
3) Do have an inspection–It is a must!!. This is the most important detail that will save you alot of time, money, and dispair when everything is said and done. Be prepared to walk away if the inspection determines that there is more work needing to be done than simple cosmetic repairs. You want to make changes that people can see because those are generally the changes that drive up the cost of the house. You want to avoid needing to make changes and improvements that aren’t visible but are very necessary. If you need to invest a lot of money and labor into the house you need to seriously consider the realistic profit potential the property offers. If it isn’t significant then you need to walk away before the property becomes a real estate investment money pit.
4) Do know the neighborhood and plan your flip according to the needs of the area rather than your personal tastes and needs in a home. This is another thing that many first time flippers forget. This is not a personal project it is a business project and you need to treat it as such. Keep your costs down and your feelings out.
5) Do remember that you are in this deal to make a profit not waste money when it comes to establishing a price for the house. You’ve poured blood, sweat, and probably more than a few tears into your flip but you cannot set the value of the property by the effort you’ve placed into it. Have realistic expectations of how much you stand to earn from your efforts and how much you are willing to go down on the price in order to walk away with some profit in your pocket.

You should take a moment to think about the fact that many first time property flippers actually lose money on their first deal. If you turn a profit at all, even a small profit you have learned many valuable lessons that you can carry with you into future flips and make more money. More importantly the lessons you learn from your first flip are lessons that money really cannot buy so it is worth a lower profit or even taking a slight hit if your experience makes you even more money in the future as you continue along your real estate investment path.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

When it comes to making money in the business of flipping properties and other real estate investments you will find all kinds of do’s and don’ts along the way. The truth is that these are very useful whether this is your first flip or you have been flipping houses for 30 years. As a matter of fact you might just find that you can learn something new by reading lists such as this, even if you’ve been flipping houses for 30 years and have completed many successful flips.

1) Don’t forget to check out the neighborhood before you buy. You will want to make sure that the property you are considering is a good fit for the neighborhood. You should also make sure the plan you have drawn out for the property will match with the other neighborhood properties in order to make a quicker sale.
2) Don’t blow your budget without good reason. Your budget is what you used to determine whether or not the house would be a profitable venture. If you spend your budget and cannot recover the money you’ve spent in the selling price of the house you will have cut into your profits, if not cut them all together. The goal in flipping houses is to get in and get out as quickly as possible and spend as little money as you can in order to make a profit.
3) Don’t forget to set daily goals and hold yourself accountable to those goals. If you don’t reach your goals for the week it can set the entire project back as much as 3 weeks depending on the goals and what has to be rearranged as a result. Stick to your timeline and your daily schedule in order to avoid potentially costly delays in time and money.
4) Don’t neglect the exterior. Curb appeal is what brings buyers into the property. If you spend all your money, time, and effort making improvements to the exterior of the home you will have little left to make the outside appealing to potential buyers. A homebuyer wants to buy the entire package. A home that looks run down on the outside leaves the impression of being neglected on the inside and many potential buyers will never walk inside if the outside looks forlorn.
5) Don’t spend money you don’t need to spend. While it would be great to put in granite countertops and stainless steel appliances into the kitchens of every home it isn’t always practical and this is often money that you will not receive back on the sell of the property, particularly in homes that are in lower to middle class neighborhoods. If you want to get the most for your money avoid costly expenses that aren’t exactly necessary for the successful completion of the flip. Resurface bathroom fixtures rather than replacing them if possible and use new cabinet doors or hardware rather than adding new cabinets all together to cut down on expenses. In other words, salvage what you can, fix what needs to be fixed, paint what you can, and add a few cosmetic touches before moving on.

The market for real estate is a very fickle market. Avoid risking too much time and money on a property that isn’t going to recover those added touches and expenses. Instead hold onto those ideas for higher end flips once you have a few successful flips under your belt.

Please don’t forget to check out my blog at http://cashmoneyhousebuyerblog.com

Everyone knows investing in real estate is one of the most effective ways to accumulate wealth quickly, especially when it comes down to not needing a lot of capital to do so. it all depends on how creative you are however. Traditional real estate investing by definition involves the purchase, ownership, management, rental and/or sale of real estate for profit. Under this definition, real estate is an asset form with limited liquidity relative to other investments, and traditionally is highly dependent on cash flow, but when we look at creative ways of investing in real estate a lot more opportunities are open to us.

So what are some creative ways to obtain financing? This list is by no means all the ways available, but they are the most popular

Partnerships are fairly common because this is first thing a lot of real estate investorsthink about doing when they start out. They want to find somebody who can put up the money and split the deal with them fifty-fifty. This is an option but there are better ways to make a lot more.

Hard Money Lendersare individuals or companies that have cash ready for you to borrow. This is a good source for getting funds quickly and is usually a much better alternative than traditional banks even with a low credit score. If you consider that many hard money lenders don’t want to lend more than 65% of fair market value of a property, you will come to the conclusion that the better the deal the more options you will have.

Private Lenderscan be an even better alternative to hard money lenders because you can often arrange better terms since you are dealing with someone privately. A private lender can be anyone, even friends or family. Everybody wins because you are offering them a much better rate of return than they will get in their savings or mutual funds and it’s secured by real estate.

“Subject to” Financingcomes from the clause “subject to existing financing”. You can take over the seller’s present mortgage using this strategy or simply leave the current financing in place. Your name is no where on the loan. It will stay in the seller’s name. There are other ways to do similar seller financing as well. If you want to begin investing quickly this is a good strategy if you have poor credit.

Wholesaling or Flippingare specific real estate investing strategies that are essentially creative solutions to eliminate the need for obtaining any funds at all. Using an agreement, you can tie up a property at a discount and then flip the property to another buyer or real estate investor for a quick profit. Because of this, it’s virtually risk free, there is no need for excessive cash, credit or financing, and you do no repairs or work yourself. This is why when it comes to making quick cash in real estate, this method of flipping houses is one the best routes to take not only for avoiding many of the financing headaches, it allows you to make cash more quickly for today’s real estate market. Compare the terms of each option and look at as many options as possible. You know your individual circumstances, this way you’ll also know what works best for you.

There has been a lot of focus on the real estate market in the news lately. The over abundance of bad subprime mortgages is driving the world into a recession, yet people are still getting into the profession of general real estate.

In reality real estate is a lot like the stock market and many people in general real estate are setting themselves up to make a small fortune when the economy cycles back around. It can be difficult to understand why people would still be interested in a career in general real estate even! after the real estate market has taken such a downturn.

For every bad turn there is a good turn right around the corner. Every intelligent investor in general real estate understands that the economy runs in cycles. So what many real estate investors are doing at the moment is buying property while the price is low, they will cash in when the economy swings back up again.

To many people this is an exciting way to make a living while others would consider it an invitation to a heart attack. But there are many attractions to getting into general real estate and those that do it for a living are well versed in how to maximize any type of market.

If you are involved in general real estate then now is not the time to start to sell and the good investors and developers know that. This is a time to build your real estate portfolio and prepare for the upturn in the economy.

Knowing what is profitable in different types of markets and knowing what situations to avoid and recognize a money making situation when it presents itself, is what makes the real estate ventures worth their while. It takes many years and a great deal of education and training to becoming proficient in the general real estate business, but there is always money to be made if you just know how.

It’s not as Easy as on Tv

One of the new popular types of television shows are the shows that talk about flipping a house. Flipping a house means buying an older run down property for a fraction of its real value, investing in rehabilitating the property, and then selling it for a profit. This is a more specific type of investment, yet many general real estate people get involved in flipping.

The only problem with Flipping, is you need to fork out extra cash to pay contractors, and when the economy is down you may not be able to sell the property as quick as you had hoped. So it can be really risky, this should be done when you are more experienced with the general real estate market.

Real estate is a great investment if you know how to manage it. It is just like the stock market, you need to know when to get in and when to get out. Just like the stock market there is risk so be careful when you start investing in real estate.

Worried about the future of the current real estate market? For the investors who understand how the market is today, it is a great time to make money in real estate.

Real estate is cyclical and always has been. There was a large national article published that stated Las Vegas real estate had completely capped out and there was no place for it to go but down. Ironically, that article was published nearly half a century ago! Has real estate gone up in value in Las Vegas in the last 50 years? Absolutely and more than just a little! Do I mean that real estate markets are going to continue to increase like they have in the past? Don’t plan on it, however I’ll explain the benefit of this type of media coverage and how it is invaluable.

2. This creates fear preventing more people from investing but that only provides more opportunity for you.
3. It eliminates aggressive scam investments (as we saw rampant with builders in Florida and Las Vegas the last few years).
4. People begin to question the value of their property and that creates more flexible selllers.

Consider this: how many successful real estate investors do you know who are afraid of flat or declining house prices? Quite to the contrary, knowledgeable investors understand when markets are flat or down it just weeds out beginning investors, makes people panic and means more opportunity.

What’s important to understand is just as real estate is cyclical, so are the amount of buyers and sellers in a given market.

It’s more than just buying property hoping it will increase in value tommorrow. That’s not investing, that’s speculating! Future growth which you’ll depend on is almost entirely out of your control. In a flat or declining real estate market, that kind of conventional mindset will not work especially in the short term. Like every business, you need to make well calculated business decisions. In today’s real estate, your specific investing circumstances should include making creative, risk free offers and setting up you exits appropriately.

There are also better creative real estate strategies for down and soft markets like wholesaling, flipping/assignments, lease options, foreclosures, short sales, and “subject to” investing. But even when doing rehabs or fixer uppers (which are not usually recommended in down markets) there are still good ways to make a good profit with the right system and proper planning, such as factoring in depreciation and extended selling possibilities.

This is why faster, lower risk, more creative real estate investing strategies like wholesaling houses are better to use during market declines. The point is market conditions should not determine whether or not you make money; it’s how you approach it and what is appropriate for the circumstances. You will never have to worry about real estate market conditions if you make calculated decisions and structure risk free deals!

A great way to diversify your portfolio and make some extra money is to invest in real estate. It is always good to have some real estate investment strategies in mind before you dive into your first investment property. Searching for properties that are below market value is what many savvy investors do. A good way to find these is to look at buildings that are foreclosures. There are buildings that are ready to rent or resell for a profit immediately after the forclosure is complete. Some properties may need updates or renovations in order to sell them. The best way to come out ahead is to work with a realtor you can trust and who knows what kind of investment properties you are looking for and also specializes in foreclosures.

There are many different investment strategies so it is best to learn some of them before you being investing in real estate. The most common strategy that real estate investors use is the one that can lead to the most problems. That real estate investing strategy consists of buying properties which the investor believes will soon increase in value due to market-wide appreciation. Although this strategy can be used successfully, it is based on pure speculation and can fail. There are three investment strategies that can be used and are based on facts instead of speculation. The first is known as the bargain purchase. Many investors will often buy a property at twenty percent below market value by using the bargain purchase method. When purchasing foreclosures people can make up to twenty percent profit using this real estate investment strategy.

The second strategy is known as the increase value strategy. Using this strategy the building would be purchased at current market value. There must be some improvements that could be done within a six month time period that would increase the value of the building by twenty percent for this strategy to be successful. Lastly, using the double digit cap rate is the one many real estate investors use most. The double digit cap rate strategy is used for buildings that have a capitalization rate of ten percent or more. Dividing the net operating income of the property by the purchase price gives you the capitalization rate. If you are looking into small market niches or if the market is depressed, these can be very profitable. It is always wise to have a real estate agent on your side to help you make the right decisions, tell you of any new listings and include some foreclosures you may be interested in no matter what kind of investment strategy you want to use..

Homezonedirect.net is a oraganization dedidicated to providing you with the most up to date and relevant information available to help you make the wisest choices regarding your home and financial future. Our team of committed experts scourthe internet searching for theright information so you can begin to understand these finacially troubling times we are in.

We are not here to sell you anything, we only want to provide you with as much information as you need to help you make the best decision for your family. 

We all like a little bit of extra income on the side, and what better way to earn easy income by referring potential home buyers or sellers. It is an easy thing to do, simply by sharing your stories or information with people around you, giving them an idea of where to look if they are interested in buying or selling a home.

Because the entire process of buying or selling homes can be stressful and difficult, giving someone the information to help them make educated and wise decisions concerning their choice to buy or sell a home, is an amazing thing to do. The entire concept of learning how to earn easy income by referring potential home buyers or sellers is made successful by people that are intent on sharing the information and on helping those trying to navigate the murky waters of home buying or home selling.

With the proper information on hand, you could be aiding someone in their search for their dream home, while making a little cash for your efforts. The main thing you will need to do is give ideas and information as they are needed to help the person or persons interested in the home buying or selling process. Making the process move more smoothly is one of the multiple benefits of knowing and understanding before hand.

Take the time to familiarize yourself with all pertinent information before beginning the referral process. This enables you to handle any twists or turns that occur and allows for an uninterrupted flow of activity, giving you the chance to treat the prospective buyer or seller with the utmost attention, and to make their investment worth something to them.

Know the information and properties before talking to clients or prospective clients. They will want you to answer a myriad of questions before being satisfied of the situation and what they expect from it. Knowing before hand what you will be saying helps you to minimize any awkward moments and to rehearse your proper information.

Referring new buyers and sellers to a potential house dealer is always an easy way to make a good second income.

Finally, keep your lines of communication open at all times with both the client and with the potential home seller. A lack of communication is the most common issue that will be harmful to a new investment. It will show a lack of caution, as well as a lack of playing.

Timothy A. Crane Private Real Estate Investor We buy houses and help people with their situations and give them options that they did not know they had. Cash For Your Home

Please don’t forget to check out my Real Estate blog at http://cashmoneyhousebuyerblog.com

If you are interested in discovering what it will take to stop foreclosure proceedings you will have to receive the knowledge that will be needed in order to do so. In all honesty, the timeline for foreclosure is different from state to state, but there are similarities. If you are a borrower it would be wise to entirely understand and know the whole foreclosure process, not just the timeline for foreclosure. Many homeowners lack knowledge or are very uninformed, or even misinformed. This unfortunate lack of understanding can end up being devastating.

As you have no doubt learned, any undertaking without the necessary knowledge will likely wind up being a bad deal. Many borrowers do not understand or want to admit that there are predators out there disguised as mortgage brokers, real estate investors and attorneys that will steal you blind. Your misfortune, likely caused by lack of knowledge can bring them huge financial gain.

The timeline for foreclosure will generally follow this agenda. The foreclosure timeline begins when you are just one day late in paying your house payment. Yes, one day late.  Usually, at this point no extra fees have been added yet. If you do not send your entire payment within 16-30 days a penalty or a late charge will be added on to the total amount due. Around this time you will certainly hear from the mortgage lender. They will inquire about why you haven’t sent your mortgage payment. If your loanpayment goes more that 30 days late, you will be labeled as in default of your mortgage loan agreement.

Being in default in the simplest terms, at this point, means you are late on your house payments. If you have not made a mortgage payment after thirty days, the lender may decide to exercise their rights and take possession of your home. Whatever you do, do not freak out. Remain calm and stay in contact with your mortgage lender during this foreclosure process. These days the bulk of lenders really do not want to take possession of the house. They will most likely be willing to help you if they are able. Do not be afraid to ask about? what programs they have available to you.

Between the 60th and 90th days or non-payment, an official notice of default will be delivered to the borrower. At this point during the timeline for foreclosure, collection costs will be added on and the lenders legal department will prepare and send the required documents to a local lawyer. This is the start the actual foreclosure proceedings.

The last leg of the timeline for foreclosure occurs somewhere between day 150 and day 415. The borrowers home will be put up for quick sale at a foreclosure sale or a foreclosure auction after the Notice of Trustee Sale is filed. There are certain guidelines and points that must be followed and adhered to during a foreclosure process. Keep in mind that a foreclosure proceeding is a legal event. The up-coming foreclosure will likely advertised in the local paper, once the case is handed over to local attorneys.

The borrower still has the right to stop the procedures leading up to the foreclosure of the property. Most states have laws regarding that. During the pre-foreclosure period, the borrower may be able to purchase the property back from the lbank if they have come up with the money. Regretably the majority of borrowers will be forced from their house by the local sheriffs department. These circumstances could be avoided if the borrower has the information about what is available to them when they are looking at foreclosure.