Real estate or stocks, where are you better off? This is probably one of the hottest issues that have confronted a lot of stakeholders amid the recent debacles that hit major economies. In fact, there is now an emerging trend to veer away from stocks amid the recent release of a report which indicates that the estimate 10 year return based on US equities index is almost zilch. The logical follow-up question is – if stocks won’t work, what will?
The issues involved have been extensively assessed and seriously studied by stakeholders and in the end, it left them with more questions than answers. But many people agree on one thing – either you go for stocks investment or put your funds in some other investment instruments altogether. People are ignoring the possibility of establishing a balance among potential investment options. For those belonging to the working class, this other investment instruments include real estate. However, for entrepreneurs, it will always be business, regardless of the prevailing business climate.
This either-or approach in assessing our options for income generation indicates a one-track perception of real estate. You have to understand that when we look at real estate as an investment alternative, we are actually looking at either the physical investment on a property and REITs, which is basically a security.
But then, the bigger issues remains unanswered – would we have been better off investing in stocks or real estate?
Going by the performance of the stock market based on the most recent market report that was released, stock investors were not generally lucky. If we look at the 20-year time frame and discounting the bias of selecting a random 10-year window leading to the market bottom as end date, estimates set the earnings of stock investors at a low 1.87% annually. This paltry earning is directly attributed to the predominance of emotional investing and the high incidence of buying when stock prices are high and selling when prices are down.
Estate investors are also not doing well, lately, albeit not as worse as stock investors. In a related census of property managers and owners, less than half of the respondents reported profit from their investments. About 16% of the respondents broke even while 27% reported to have incurred losses of varying amounts from their respective real estate investments. The results of the study showed that more than half of the respondents ended on the negative range in their investments. What is significant about this study is that it was conducted before the onset of the sub-prime crisis. With the major fallouts in real estate markets in the past couple of years, it is safe to assume that the overall prospects in the real estate market may have gone from bad to worse.
With this grim assessment, are we ready to declare that neither option presents good earning potential? It is not wise for us to make our judgment based on a snapshot of one particular instance in the real estate market. You have to look at the bigger picture and see how things stand on the longer term.
There is a general consensus among stockholders to give more preference to real estate over stocks. When things are down, most investors believe that they are better off holding on to tangible assets. Though the value of the real estate properties are market dictated, between the two, it presents a better prospect as proven by past experiences. What is needed right now is for investors to dig deep in their “trenches” and wait it out until the financial storm finally blows over. At the end of the day, sound management of your finances will ultimately determine your overall performance regardless of the economic condition.
Jan 23
Dec 30
Learn Commercial Mortgage Financing Business Using our 9-hour Video Program
Real Estate No Comments »
This commercial mortgage training program is absolutely fantastic! The use of these videos and manuals that may become almost an expert in mortgage brokerage business in a single day. A top commercial mortgage loan officer earns $ 250,000 to $ 500,000 per year, and is much easier than you think. All you need to know is where to get the tracks, how and where to place they subscribe. This incredible course covers everything. This training is easily worth $ 10,000 – yet is only $ 499.
This 9-hour videotape of the program is divided into five sections – the marketing of commercial mortgage loans, the commitments of all types of income property loans, packaging, commercial use of mortgage databank, and collection.
When it comes to finding mortgage lending business, I am a bona fide marketing guru. The marketing methods that have developed over the past 23 years working in the most effective way of turning on a spigot. Everything is explained in my wonderful, step by step Commercial Mortgage Marketing Handbook.
Then we’re going to spend five hours together teaching everything you need to know about the subscription $ 5 million and $ 10 billion of commercial mortgage loans. You will learn 100 new commercial mortgage financing terms and 15 financial ratios. You will learn about the coverage of debt service ratios, ratios of operating expenses, reserves for replacement, vacancy factors, rates of the CAP, loans and constant form of financing refers to a negative cash flow . You even learn how to subscribe to commercial lending for construction. Everything is summarized in our page fifty Revenue Assurance Manual of ownership.
After completing five hours of the day the commitments section, you may legitimately to put in your resume, “trained in all aspects of commercial mortgage financing.
With this theme in your resume, you might command a salary that is $ 10,000 per year higher. In a lousy market, you could be one of the few loan officers, even in a position to find work.
Then you will learn how a package of commercial mortgage loans in one third the time it takes for a residential front. You will also receive the forms you’ll need to assemble your basket. Best of all, you will receive a commercial mortgage loan package can be copied. A picture is worth ten thousand words.
The Commercial mortgage Loans database is an incredible tool. Suppose you need a fixed interest rate first mortgage of only $ 700,000 in a motel in Idaho. This on-line computer will automatically search through a database of 700 commercial mortgage lender. Then you will be given a list of the 20 or 30 most suitable lenders. Simply click on the best six lenders, and then click “Send”. Your request will be immediately fired off e-mail to the six lenders. Within hours, these lenders will be pursued by phone, fax and email.
Finally, spend some time on the collection rate. You may not know this, but personally I bolted out of so many commercial mortgage commissions, which entered the law school at the age of 34 reported in all cases, he graduated with honors, he developed an ulcer, the Bar Association approved the first time, joined the Bar and then never practiced. I just used that knowledge to develop my famous rate of $ 350, according to commercial mortgage brokers. You get a free copy, along with numerous tips (summarized in a booklet) on how to roast the next SOB that you cancel after three months of work. Diabolical and Delicious the end of the madness!
Commercial mortgage financing is not an issue unlimited. A pleasant, intelligent and articulate person – even without a college degree – is likely to dominate the profession and (very possibly) earn more than one doctor. If you are already paying to keep open a mortgage company, is to throw nuts business leads! by http://www.pro-bargainhunter.com.
Wade and IMM Commercial mortgage financing Group provide business opportunity commercial mortgage loan – business loan advice and publish IMM Commercial Real Estate Investment Property Financing Reports by Bargain Trader.
Dec 29
Do you have hopes of investing in profitable properties or just purchasing brand new homes at bargain prices? If this is the case, you should take property auctions unto consideration.
Properties that are sold at auctions are oftentimes owned by lenders of mortgage after repossessions or have been vacant for quite some time after its owner had passed away.
Whatever the case, owners have put these properties on auction for quick sales, which could lead to several good deals on market value.
Auctions mostly cater to property professionals instead of the public, in general; awareness of such auction houses and advertising thereof is quite restricted.
One great place to begin looking for them would be through telephone directories, Yahoo or Google searches or the yellow pages.
One other great tip would be to keep a look out for signs outside of homes. If the sign says anything about an auction, just call the provided telephone number. You could either contact estate agents acting for auction houses or you could contact auction houses directly.
If you end up contacting estate agents, ask for the auction house’s contact details. Estate agents might be reluctant in doing this; therefore, being persistent would be worth it.
The minute you get in contact with an auction house, you can ask to be placed on the mailing list. Even though you might get charged for doing this, you can start receiving details on properties that are due to be on sale.
Once you have identified a property you hope to purchase, you have to arrange the finances. Most people will have to approaching mortgage lenders and it would be essential to do this way in advance of any auction.
Keep in mind that the minute a bid is won; you will be bound to buy the property legally and will have to pay up within an amount of days.
Mortgage lenders will require basic valuations of this property; however, it would be wise to invest in complete surveys since properties might be at auction because of structural problems that basic surveys were not capable of picking up.
Before you bid for the property you want, you might want to go to several auctions first to get better ideas on this experience.
Set price limits for yourself and never bid beyond that limit. After valuations, you should have good ideas of market values.
If the bid succeeds, you will be bound to buy the property legally and you will have to give a 10% deposit on the selling price of the property. You will have to sign the contract and will be bound legally to complete it on the same day.
Lastly, you will have to pay the rest of the overall selling price in the agreed period.
Congratulations! You just got an auction deal!
Dec 28
Refinancing a mortgage is in some ways similar to getting your first mortgage, with a few important differences. Since you already own the home, you don’t have to go through a pre-approvals process or find a realtor and a home to buy. Unfortunately, you’ll still have a lot of paperwork to do, but savings thousands of dollars over the life of the loan is worth it.
There are very specific steps you should take to have a successful mortgage refinance
Step 1: Determine if Refinancing is Right for You
There are tools like mortgage calculators to determine whether a mortgage refinance loan will save you money. Factor in your current interest rate, future interest rate if you have an adjustable loan, and closing costs. If you want to take cash out, include that amount in your new mortgage balance for the calculations.
Remember, refinancing creates a new loan, usually with a full loan term. If possible, you can make extra payments to finish the loan at the same time as your original loan, and that will save you more money than the calculator predicts. For the calculation, assume you’ll only be able to pay the amount due.
Step 2: Check Your Credit Reports and Scores
Even if you already own a home, your lender will still use your credit scores and credit reports to determine which rate you qualify for. Order scores and reports for each spouse if both of you will be on the mortgage. You want to get best rate possible. Ideally your scores should be above 720 to get the absolute best rate, but 680-700 will get you a good rate. You can still refinance if your scores are low, but it might cost you more, especially if your scores were high when you got the first mortgage. Carefully review your credit reports for errors. 80% of all reports have errors. Common errors include listing accounts that don’t belong to you, late payments that weren’t really late, and items that were supposed to be removed. Follow the instructions at each credit agency to correct the errors.
Next, do what you can to fix black marks like recent defaulted loans, recent collections, and high credit card balances. You may have to spend a little more money to accomplish this, but it’s worth it if it saves interest on your mortgage, which will ultimately cost you more over 30 years.
Step 3: Research Rates, Fees, and Lenders
Before you contact any lenders, research current interest rates and fees for the type of loan you’re interested in. Comparison shop to see which banks is offering the best rates. Note the terms, closing costs, and whether or not the rates are fixed or adjustable.
In addition to rates and fees, check reviews of the lender online and at the Better Business Bureau. If the lender has a history of making late property tax or insurance payments or providing poor customer service, find a different lender.
Step 4: Contact Your Current Mortgage Servicer
Your current lender wants to keep you as a customer. If they still own the loan, they may be able to modify your current loan to a lower rate with just a little paperwork and a low fee. Unfortunately, most lenders sell their loans to larger mortgage servicers, so it’s unlikely that you’ll be able to take advantage of this. If you want to pull cash out, refinancing is the only option.
If you can’t modify your loan, your lender or mortgage servicer may offer a streamlined refinance. You’ll get a new loan at a better rate, but with fewer fees and a little less paperwork. It may also take less time to close. Of course, you may not want to accept their offer if the rate is higher than what you found at other lenders. Consider the closing costs when deciding which mortgage refinance loan will save you more money. Using your current lender could save on closing costs, but a higher rate could cancel out the savings. If you found a better rate elsewhere, ask your current lender to match it. If they want to keep you, they might do it.
Step 5: Contact Other Lenders
If your current lender can’t get you the best refinance rate, contact other lenders about refinancing with them. Your goal is to find the best rates with the lowest fees and closing costs (without adding those fees to your loan balance). Some lenders now offer refinance loans with 25 and 20-year terms so your new loan will end at the same time as your original loan. If it will save you money and you can afford the payments, consider the offer.
Refinancing to a lower rate can save you a lot of money over the life of the loan. A mortgage refinance loan can also help you get much-needed cash to remodel your home or pay down credit card debt. It’s not hassle-free, but saving money is worth the effort.
For more articles on mortgage refinance visit http://www.bills.com/mortgage-refinance-loan/
Justin has 5 years experience as a financial adviser, his key areas are
loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.
Dec 27
Taking out a loan is not a small decision. If the collateral security happens to be your house, then the decision has implications not just for you but the future of your entire family.
Hence, opt for home improvement loans secured by your house only if you are dead certain of your ability to repay the loan in full.
Most of the home improvement loan seekers go to a broker to get the best possible deal. The job of the broker is to get a lender who will lend the maximum money to the borrower at the easiest terms. Generally, loans that charge the lowest APR are considered as good deals.
Home improvement loans can be used to fund practically any and every improvement to the home. The lender will ensure you are not borrowing a large amount when a small amount would serve your purpose.
To secure his interest, the lender demands that you offer your house as the security for the loan. Only perfect credit scores qualify for unsecured loans.
When applying for a home improvement loan, be prepared for the scrutiny of your credit file. With 3 out of 5 persons suffering from debt of more than $10,000, lenders have become very cautious.
Do you have good credit?
All your transactions form a part of your credit file and the same is scrutinized to determine whether you can be relied to repay the loan on time. If you suffer from bad credit, you will have to pay a higher rate of interest.
It is not worth to risk your house for a beautiful new kitchen, bedroom or bathroom unless you are absolutely certain that you can afford the loan.
The Home improvement sector is an extremely competitive sector. Service providers are many and the competition has ensured that the prices remain low. Now is the best time to get that home improvement job done.
Companies are struggling to meet their targets and are offering great offers to the buyers to ensure they stay in business. While women are in no way inferior to men when it comes to doing home improvement jobs, this sector is dominated by men.
Home owners beware!
When employing a home improvement company, make sure you employ licensed and registered professionals only. The law places the burden on the buyer to ensure that he employs licensed workmen only and you face the risk of losing all benefits that accrued to you from insurances, warranties and guarantees.
There is no denying that home improvement business is a very lucrative one:
a. Labor charges run high
b. After hours labor charges have to be heard to be believed
c. Materials are often supplied by the home improvement contractor. He buys in bulk at cost and sells it to the home owner at a profit.
Be there at the right place and the right time, aggressively market yourself, please your clients to ensure word of mouth publicity, advertise in local papers and magazines and find yourself a rich man in no time at all.
Demand for home improvement companies will never go slack. Even in the worst of the times, people do not stop beautifying their house. The hours are long and the work is hard.
If you are ready to bend your back, you will find a big fat check in your account month after month. The question is “Are you up to it?”
Visit, subscribe to and bookmark: http://www.avr-2808ci.com & http://myhomeimprovementtips.com for your home improvement entertainment projects and Abzorb Mats! And keep up with the latest home improvements for your home and family.