Sammarusich Blog

This article is part of the Real Estate Investment Success Series and continues from http://www.realestateinvestment101.info/commercialpropertyinvestment.html

As mentioned in our previous article, like in value investing in stocks as made popular by Benjamin Graham, money is made in the purchase of real estate investment property. You want therefore to purchase property with good rental yield and that is at a discount relative to the surrounding area. This article identifies three ways to find a below market real estate deal so that you can either resell it later at a higher price or enjoy lower mortgage instalment payments and from that a greater cash flow.

Method #1- Distress sales and foreclosure

The general rule of thumb in real estate investment is that the target property might sell for a price lower than the areas average if the owner is in distress. There are two possible situations that you might want to look out for so that you can negotiate with the owner to reduce their asking price.

Firstly, look out for mortgage foreclosures on property and monitor the property auction sites. Banks may under-finance property meaning that they might not want to risk financing the property and then have to sell the property at a loss during a recession (negative equity situation). So what happens is when the mortgagor (the owner) is in default of his mortgage, the bank would foreclose the property and auction off the property and sell it off. Note that under the common law, while the bank is supposed to get the best value for the owner, this sometimes does not happen and the best way the bank can discharge its liability is to auction off the property.

As we can tell from the above analysis, the bank usually just wants to get the selling price enough to cover the outstanding mortgage and so the reserve price for such auctions may be below valuation prices. Spend some time attending such real estate auctions and it could pay off in helping you get a property at below market value.

Method #2- Migration

When people want to migrate out of a country fast, there is a high chance that they will not be picky about what price the property can fetch. These people generally want to sell off their property fast and the first prospective buyer that appears on the horizon for their real estate would usually benefit from this. On your part, you would want to get an independent valuation of the real estate and then make an offer.

Ann wanted a property near the city’s amenities and was looking for such a property. There was a family that was moving over to France and sold it to her at a bargain. It turned out that what that family wanted was hard cash fast so that they could move out. Ann gave it to them and all parties were very satisfied. Thus bargains can be found if you know more about your seller’s reason for selling.

Method #3- Look for landlords with attitude problems

This strategy is rooted in human nature and you may chuckle when you hear it. In some areas, some properties are always yielding lower rentals than other places and this might be because of the landlord rather than any other fundamental reason. If the landlord has a bad temper for instance and then finds it hard to get tenants who can stay, might try to entice present tenants to stay with lower rentals. This would therefore translate into a lower valuation for the property. At the point where you appear on the scene, some of these sellers are willing to accept a lower price to get a problem off their hands.

Things to note with this real estate investment method include spending some time with neighbours staying around the property in question to find out any hidden defects, bad tenants or crime related problems that the owner may not be telling you about the area. It may not be all the landlord’s fault.

In conclusion, we have spotted three ways that you can take into account when analyzing a real estate investment. Real estate investment can be said to be like any other form of shopping as you want the best quality for the lowest price. But do not be let paralysis by analysis stop you from taking action. Here’s wishing you all the best in your real estate investment endeavours!

Joel Teo takes a keen interest in real estate investment as part of a larger investment portfolio. For more tips on real estate investing check out our real estate investment success series

Are you in the market for a new house, or thinking about refinancing your current home?  You can save money on mortgage rates by shopping around for the best quotes.  This can take days, or weeks of your precious time on the telephone and visiting the lenders to get the information you need, then compiling them so that you can compare your findings against each other, but there is an easier way.

You can get mortgage rate quotes online in masses, and fast, too.  Just by putting in some basic information about the mortgage you want, you can retrieve instant results of anywhere from 25 to more than 100 lenders, which are listed so that you can easily compare them.  You can do this without entering any of your personal information, too.  It doesn’t get any quicker or easier than this. Visit www.buildwish.com and select get free quotes / mortgages.

The process of finding home mortgage quotes online is simpler than you might think.  The first thing you do is enter your loan amount.  If you are unsure of the amount you will need, type in a reasonable amount based on your home searches.  If you are finding that the homes you like are around $200,000, then use that amount minus any down payment you have to put toward it as your loan amount.  It doesn’t have to be exact.   

The next thing you need is the property value.  Again, if you are still in the search phase for your new home, then make up a reasonable amount.  If you are refinancing, put in the current value of your home.  An appraisal is a good way to find your current home value, but an appraisal will be necessary to obtain a mortgage and this will be double the cost if you get one on your own and then the mortgage company wants a new one.  Estimate the current value of your home based on the last appraisal and what other homes like yours are selling for in your area.

Finally, type in the zip code of your home or the zip code of the area you would like to buy a home in.  If you only know the city, you can easily look up zip codes online for that city or you can give your local post office a call.  That is all the information you should ever need to give when searching for home mortgage quotes online.

Once you click submit you will be given a list of lenders and their current rates to choose from in an easy to read and compare format.  Simply choose the lender that best fits your needs and you can apply online for your new mortgage.  If you’re not ready for a mortgage right away, but were just checking for quotes, save the website that you searched, but don’t count on the rates being the same the next time you look.  Mortgage interest rates change on a daily basis so be prepared to search again when you are ready.  An early mortgage search can give you an idea of which lenders best fit your needs, and which ones will save you the most money when refinancing or buying your new home.

For more Information on this topic visit www.buildwish.com a free Online Home & Garden Renovation & Design Directory in 100 Cities in North America. Featuring millions of Real Estate Classifieds, Helpful Articles, Contests, Virtual home tools, Qualified Trades, Forums, a moving center, free quotes for Insurance, Moving, Mortgages, Contractors, Find Foreclosures and Much More!

 

A Real Estate Agent & Interior Designer for 20 years. Writing articles about Real Estate & Home improvement.

FHA home loans are alternatives to conventional financing for your Florida home purchase. The FHA (Federal Housing Administration) helps to make low cost Florida home loans available to thousands of new Florida  and current Florida homeowners each year. FHA mortgage loans require minimal down payments of only 3% and the interest rate is typically better than prevailing conventional mortgage rates.

For the Florida home buyer the FHA program can simplify the purchase of buying a home, making financing easier and less expensive than a conventional mortgage. Some additional highlights of the Florida FHA mortgage program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.

 The FHA currently insures more than a million Florida mortgage loans. The FHA  agency has helped originate more than 33 million since it was created in 1934. The FHA mortgage program does not fund the mortgage loans itself. However, FHA insurances private FHA mortgage  lenders so they will not incur any loss if the Florida mortgage applicant defaults. In this way, FHA mortgage lenders are encouraged to make loans to low and middle income Florida mortgage to whom they would not otherwise extend a mortgage loan..

Florida homebuyers of single family homes can put as little as 3% and the seller can over up to 6% of the buyers closing cost and prepaid taxes and insurance. Good credit history is not necessary to qualify for FHA financing, although is definitely a “PLUS.” Income to loan payment, and to total monthly payment, ratio requirements make it easier to qualify than for conventional mortgage loan. Visit http://www.fhamortgageprograms.com/ to learn more about FHA qualifying in Florida.

This sounds pretty good, right? But keep in mind that  FHA requires that Florida homes be in livable, habitable, moving condition Largely because of this, most Florida sellers will not accept an offer if the buyer intends to obtain an FHA mortgage . The acronym “FHA” unfortunately has acquired bad connotations for many real estate professionals and their clients.

Also, the FHA severely limits how much the lender can charge in fees. The bank cannot lose money because of the FHA insurance. However, it cannot profit as much as when it commits its money to other mortgage loans. Lenders have to be FHA-approved in order to make FHA mortgage loans. Few Florida mortgage lenders are FHA approved..

However, there is a big exception to this circumstance. The FHA serves locales (and, of course, the people who wish to obtain FHA financing for homes in these areas) that would not otherwise be attractive to Florida mortgage lenders. Most very large, big city lenders are FHA-approved, and a significant portion of the home loans that they originate are FHA mortgage loans.

http://www.FHAmortgageFHAloan.com

http://www.fhamortgageprograms.com/florida/
http://www.fhamortgageprograms.com/florida/Marathon/
http://www.fhamortgageprograms.com/florida/Sarasota/
http://www.fhamortgageprograms.com/florida/Gainesville/
http://www.fhamortgageprograms.com/florida/Panama-City/
http://www.trulia.com/blog/mike_brasco/2009/05/florida_fha_loan_florida
http://www.trulia.com/blog/phil_myers/2009/05/florida_fha_loan_florida
http://www.fhamortgageprograms.com/florida/Orlando/
http://www.fhamortgageprograms.com/florida/Punta-Gorda/
http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
http://www.fhamortgagefhaloan.com/

If your mortgage is due for renewal in a few months time, you are looking to buy your first mortgage or are looking for a better rate then finding the right mortgage advice is important to ensuring you get the best deal.

The internet has empowered all of us; there are so many fantastic resources that will explain different types of mortgages, provide us with up to date information on the latest mortgage related news as well allow us to communicate with others and share our experiences. The internet is a very useful tool to find and research companies that can provide mortgages as well as get help with our mortgage application.

While the internet is great for getting information it is always best to get professional advice before going ahead with this huge financial commitment. Mortgage brokers can offer expert mortgage advice wherever you are based whether it is Fulham or Falkirk. Many are based online or have an online presence while many others have branches in your city. If you were after Falkirk mortgage advice I’m sure you would prefer to speak to someone in person and get the reassurance and piece of mind that comes with face-to-face contact.

There are hundreds of mortgage brokers to choose from but to ensure you get the best deal make sure you pick one that offers whole of market advice. That means they search every lender to find every deal. Many will also charge a fee for their services however there are many that don’t and their service is just as good. As you can benefit from all this expert advice for free, there is no pressure to proceed so even if you haven’t found the home you want you can still get the mortgage advice without obligation.

A local mortgage broker will also have a better idea of the market as different areas of the country have responded differently to the economic downturn and for example in Scotland changes often take longer to happen than in the rest of the UK.

Chris Borthwick writes articles covering a broad range of subjects. His main area of expertise is mortgage advice and writes many articles on mortgages for finance industry, mortgage brokers and for the general public. Most recent articles detailed the benefits of a fee free mortgage broker.

It is really a good idea to get your old home renovated and improved rather than selling it off and buying another home. If you are satisfied and happy in the area you are living in, there is no valid point to sell your home just because it has become obsolete with the passage of time.

There are many contractors who can renovate your home as per your requirements and the modern trends in the market. Home improvement should be carried out systematically and in a well planned manner. This can result in saving a lot of money as well as time. Generally, a systematic approach involves carrying out the following steps:

Plan the home improvements – The first question to be answered by you is what needs to be done? You cannot proceed until you have clarity in mind regarding what needs to be changed and what needs to be modified.

Plan the budget accordingly – Once you have decided the changes required in your home, the next step is to have a fair estimate of the expenses involved. You should take into account your savings and borrowing capacity. Home improvement loans can help you in meeting the deficit in your budget.

Home improvement loans can be taken against your home as well as without it. The type of loan that you should opt for depends on your personal preference and the quantum of requirement. If your estimate tells that the entire work can be completed in a budget of £20,000 then there is no need to pledge your home, provided that you are willing to pay a little higher interest rate. However, if you need heavy loan amount then secured home improvement loans would be better. And yes, do not forget to take the necessary permissions and approvals from the local authorities for carrying out the required home improvements.

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. To know more about loans click on these links secured homeowner loans, bad credit loans that best suits your needs visit http://www.loans-bazaar.co.uk