Understanding the Escrow (Closing) Process
September 30, 2008
1. What is an escrow?
Escrow is defined as a process where parties deposit instructions and funds with a “disinterested” third party until conditions of the instructions are met. This applies whether the purchase is real estate or an expensive Ebay item. In a real estate escrow, a title insurance company, escrow company or attorney will traditionally serve as the third party. They will oversee completion of the instructions (or purchase contract), ensure funds are paid to the seller and the title to the property is transferred to the buyer. In a refinance, your escrow closer will ensure that your previous mortgage company is paid off with the new loan proceeds.
2. How is an escrow started?
If you are working with a real estate agent, your agent will “open escrow” for you by depositing your earnest money check and the purchase contract with an escrow/title company or attorney. If you are purchasing a property without the help of a real estate expert, you will have to open the escrow yourself. For a refinance, ask your loan originator for assistance.
3. How will you hold title to the property?
Ten Creative Financing Techniques
September 29, 2008
Do all the creative financing techniques you hear about really work? Yes, actually. They probably have all worked somewhere for someone at least once. The point isn’t if they will all work for you. The point is to know what is possible, so you can find your own creative ways to invest in real estate. Here are ten methods to get you thinking.
1. Hard money lenders. You can ask around or find these online. They specialize in short-term loans at high interest. You typically use this type of financing for a “fix and flip.” You can often get the money fast, and if you make $30,000 on a project, who cares if you paid $10,000 interest in six months.
2. No-doc and low-doc loans. No (or low) documentation of your income or credit required. Again, you can find banks that do these online now. The catch is that you will only be able to borrow up to 80% of the purchase price or property value. If you have 10% in cash, you might be able to borrow the other 10% from a friend or the seller.
Farm Expired Listings For Big Commissions
September 28, 2008
Many real estate agents begin and sometimes sadly end their careers without a plan. And as the saying goes, failing to plan is as good as planning to fail.
Sure, some do the usual and expected things to cultivate new business, like mailing letters and post cards to friends and relatives, phoning acquaintances, and giving out business cards to any and everybody they meet.
Heck, some are courageous enough to “cold call” prospects, the most dreaded of all tasks! And while all of these activities are good things to do, they don’t necessarily translate into new business opportunities - now or later!
And while these may be good strategies you need more. But instead of working harder why not work smarter?
The most successful Realtors and Real Estate Agents have “lead generating systems.” Some Farm Expired Listings for huge profits.
A good listing system can:
jump start new or average real estate sales career; bring in real estate listings on a regular basis; week after week generate prospective buyers and sellers; give you marketing exposure in months rather than years; and position you to know the best real estate investment buys
Real Estate Professional in the Palm of Your Hand
September 27, 2008
GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATE
If you own rentals and/or investment properties, you know that you have to keep track of your portfolio, maintenance profiles, property managers, and related financial matters. There are a multitude of programs for the Palm-Pilot system to keep up with lease dates, lease expirations, and rent due dates. They will let you know when to send late notices and how much the late fees are for each rental you have in your list. Most of these programs will also alert you when you have a lease that will expire within the next two months, this allows you to prepare a new lease contract or plan the repairs and marketing for the unit. They’ll even give you yearly totals spent on property management fees and maintenance fees, and bounce those amounts against your rents collected. This will give you an idea of how the property is performing. Some will even “conduit” to your computer when you HotSync, which allows you to create Excel spreadsheets for the data produced.
Selling Property - Valuing Your Property
September 26, 2008
Selling property privately has many advantages over using an estate agent. However estate agents can provide useful local information not available from the internet. Despite this many who have sold there home privately have benefited from the following:
? Saving thousands in commission ? Savings in time spent selling home
? Experience a wider choice of online services ? A feeling of remaining in control ? Reduction in stress ? A sense of achievement.
Selling property-What is your home worth Selling property privately means that you will have to arrive at the correct price to sell your home.House prices and the value of your home is a major topic for potential buyers and those already on the property ladder. There are now ample resources enabling you to value your own home, making it easier to sell your property privately.
Before you value your property you must arrive at two important figures:
1. The lowest price you will accept for your property 2. The ideal price you would like to achieve
Research Gather all the facts before arriving at a realistic price for your property by:
? Using online House Price calculators which will give you a guide price
5 Rock-Solid Real Estate Investment Strategies
September 26, 2008
Investing in real estate is more complex than simply buying and selling homes. To help new real estate investors to decide which strategy might work for them I put together 5 rock-solid strategies. It is up to you which strategy you feel more comfortable with.
1. Buy and Hold
This real estate investment strategy is commonly known as rental properties. Becoming a landlord is easier than you think. You buy a property, you advertise it as "for rent" and you sign a contract with your new tenant. That’s where the love story ends. You need to know a lot about your duties and your rights as a landlord or you will find yourself in trouble.
Screening your prospect tenants is your first line of defense. Protecting your property from damage is your first duty. I might paint a little bit dark picture of being a landlord. But dealing with tenants can be the most frustrating job you ever had. Do yourself a favor and visit a bookstore or library and get as many books on landlording as you can get. Armed with this knowledge you will be able to create a positive cash flow and a long term relationship with your tenants every time you put the "For Rent" sign in the yard.
Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell
September 25, 2008
So, your selling your home. Prepare yourself both physically and mentally for the agony of the endless phone calls and interruptions to your daily schedule. But more importantly, prepare your home for the ever critical eye of each person walking through the door. For it is not their goal to see the good in your home, but to see each and every flaw that has ever been. What can you do as a seller to minimize these flaws and highlight your homes best features? Let’s take a look at several reasons why your home may not be selling and some easy-to-do remedies.
Reason #1 - Curb Appeal. Stand across the street and critically evaluate your front yard. Is it weed free? What about the “For Sale” sign? Is it easily visible from the street with current information? Do you have flyers available? Seems small, but this is actually a “biggie”.
Reason #2 - Clutter. From the front yard to the back gate, get rid of everything that takes up space (everything that you can live without). You’re moving into your new home (soon), so why not start packing now? Home buyers are looking for cabinets, closets and kitchen space. Home sellers need to reduce, reduce, reduce!
Seller Financing - Six Safety Tips
September 24, 2008
Why offer seller financing when you sell? A higher price, a good return on your money, a faster sale and to sell a property that is otherwise difficult to sell. Some good reasons, but how do you do it safely?
1. Get a large downpayment. The most obvious way to be safe, and not always possible.
2. Get other security. If they want it with little down, and you like the return you’ll get, make it safe by putting a mortgage on other property the buyer owns, to be released when they’ve paid down the balance to a certain level.
3. Check their credit. Have them pay for and bring you a credit report. Bad credit may be okay, but type of bad credit is important. Unpaid hospital bills they’re disputing are not as relevant as unpaid loans.
4. Trust your instincts. If you are usually right about people, give some weight to your judgement of their character. I’d trust a man who felt morally obliged to pay his debts over a playboy that happens to have decent income at the moment.
Is Second Home Ownership In Your Future?
September 23, 2008
According to the National Association of REALTORS® (NAR), a record 2.82 million second homes were sold in 2004. Given attractive interest rates, a strong housing market, and the increasingly mobile lifestyle of North Americans, it comes as no surprise that the resort and second home market is enjoying steady growth.
For some, purchasing a second home is a financial strategy to help them grow and protect their wealth — and certainly vacation getaways may provide rental income opportunities to help savvy boomers offset the expenses of second home ownership. Others may be motivated to buy a second home because it can be used as a "family retreat," to be later transformed into a residence after retirement, and then handed down as a family legacy. Here are some interesting statistics from the NAR 2005 Profile of Second-Home Buyers:
The typical vacation-home buyer is 55 years old with a total household income of $71,000.
Investment-property homebuyers have a median age of 47 years with a typical household income of $85,700.
33 percent of vacation homebuyers wanted a second home close to their job or school; while 24 percent wanted the home close to their primary residence.
Building A Home? Want To Ask A Builder The Right Questions - Not The Dumb Ones!
September 22, 2008
These are real builder questions that I got from readers of my e-book, “Residential Development Made Easy” with answers from a major USA Master Builder operating in 48 States.
Question 1.
My wife and I are planning a new home. We intend approaching a builder or two in this area, and I plan on asking them these questions.
My wife is very adept at planning and researching. Under what circumstances do you recommend we hire an architect? And Why or why not? (This is not a loaded question. I am not an architect and neither is my brother-in-law. We would prefer to construct without hiring an architect.)
Reply
It would depend on your budget. Some architects in the US charge as much as 10% of the budget of a home to do the plans. Master Builders, as opposed to “Local Builder Bob,” don’t like to place their clients in a position of hiring an architect until they really need one.
The best advice our clients get is to prioritize their actions as follows:
First: Get the loan;
Second: Get the land;
Third: Get the Interior Designer;
Forth: Get the architect.
