Monday, June 14, 2010
If you're looking for your own foreclosure bailout plan, here's what you need to know:
1. Those foreclosure specialists you read about charge a lot of money for their services, and those services are not guaranteed. If you're in a financial bind and about to lose your house, the last thing you need to do is spend more money on a service that might not even work for you.
2. Banks want to help you. It may not seem that way, but they do. They want you to keep your house, because it is in their best interest for you to do so. Banks don't want to have to spend the money it takes to keep a house on their books. They are in the business of lending money, not maintaining houses. If you ask about options, they will give them to you.
3. You have more options for keeping your house today than ever before. Because so many houses have been going into foreclosure, banks are reluctant to allow any more to do so. It brings down the value of neighborhoods and invites crime in. If you ask your bank what you can do to keep your house, they will most likely have a long list of things you can try. One of them is bound to work for you, and banks are more than willing to be creative about getting you current on your mortgage.
So you see, you can create your own foreclosure bailout plan with ease. Just ask your bank what you can do and be willing to think outside the box. You don't have to resign yourself to losing your home. Keep it with some creative measures.
Sunday, June 06, 2010
As many people would say “do not judge a book by its cover” absolutely does not apply to a home property. The initial impact are really significant, when you drive in your home with a historic, almost gone down or out of control car in your garage can pretty much turn your prospect buyer gone.
One of the things to consider for making the value of your property investment grow, make sure that you splurge the added investment on what buyer can immediately notice.
For instance, if you are not setting up on staying in your property for a decade or so, do not consider putting a brand new tankless water heater. This kind of home improvement can take up so many years to be able to feel the return on cost and rates would cost too much for a mere installation. Rather, concentrate on areas like expanding your garage from a 1 car to 2 car parking, you may also consider putting a new garage door, a landscape can put so much warm in your house especially that is what visitors initially see when they get to visit or you may want to get a marble top kitchen with a stainless kitchen sink.
Stay away with the typical mistake of over doing things and decorations. Always remember to stick to what is still normal in your area. Are you living in a A-class neighborhood? Do potential buyers look for high-end appliances in properties in your area? Do not exert too much effort placing too fancy features in your home if that is not the trend that is happening in the next door house. It will definitely not add on the value of your house to make all the new and unnecessary purchase and installations.
Remember re-design the outside first, then inside repair follows. By doing-so, this automatically put your property to 100% increase on curb appeal and to the property value.
1. Clutter free – Big furniture or objects that are around your courtyard must go. A broken downspout, antique bikes hanging in the garage, recycling and garbage bins must all be neatly put together in your back yard.
2. Landscaping – Find time trimming shrubs and trees. There are so many low cost maintenance landscaping that can increase real property value. Put on mulch, make your yard a little bit more green. Try hanging some flower basket on your veranda and little colorful flower pots on the edges going to your main door. This adds so much at-home feeling in your property with only low cost expense and much more edge to your property without to spend so much on your savings.
Saturday, June 05, 2010
The additional fee of an architect, to plan the renovation, is sometimes necessary and a good expense; especially if there will be major structural changes that are to be made on the house. The right size of beams and materials are determined thru professional computations. If the size is too small for the purpose, there is a risk of structural breakdown. And if the size is too large, this is an unnecessary additional expense that might considerably increase the cost of the renovation. Class of materials and furnishings must be in comformity of the type of house to be renovated. And these are accurately determined by a professional in the field.
Professionally designed layout of the floor plan of the structure is important. Upon renovation, outmoded floor plan must be upgraded to modern standard. Ventilation is another important factor when buying a house for investment. Inspection of plumbing and electrical installations must be a priority for safety purposes. Electrical wires and accessories must be upgraded to modern standard, to compensate for the additional electrical equipments and gadgets that are now being used.
Furnishing must also be upgraded to the latest trends and ways. It must conform to the style of the newly renovated house. Size, color and positions of furniture and appliances are important, so that they will blend with the house interiors. In this aspect, a professional interior decorator must be hired, if the budget allows.
The Architect and the Interior Decorator also know the value of balance for aesthetic value of the property. For those who have discriminating taste with respect to their houses, they can recognize whether a house is renovated and furnished professionally. And this type of buyer is not stingy when buying a house. So paying professional fees of experts is worth the expense.
Monday, May 31, 2010
• What type of property to buy?
• Where to get money to purchase the property?
• What to buy- foreclosed or auction properties?
• Where to buy- from banks or from the government?
• How much taxes needed in buying and selling the property?
• How much are the renovation and upgrading costs?
• How to renovate- thru owner’s labor or thru expert construction workers?
• Will he either to sell or rent out the upgraded property?
• How long will the investment be recovered or makes a profit?
Some schemes of buying foreclosed properties offer a no-down payment plan. This seems very attractive, because whatever happens to the housing loan, the buyer will not absorb any loss. But this is not the case. Once the borrower-buyer fails in his amortization, and his property foreclosed, definitely his credit standing will greatly suffer. And to recover good credit standing, it will take years of being a good loan payer.
Sometimes, it is better to get a housing loan from a good local lender than banks. The former gives lower rates and shorter loan processing period. It is also a good move to hire a reliable mortgage broker, because in spite of the addition 1% broker’s fee expense, it is worth in terms of expert advice, time savings and getting the best possible terms for ones loan. Buying foreclosed properties is most logical and attractive move of a real estate investor now. Because of the dirt-low prices and the easy terms that financial institutions are offering, to unload these properties out of their systems. But still, the prospective must be careful in making the move. Seek experts’ advice.
Saturday, May 29, 2010
Real estate was no exception. There were many short sales and foreclosures when many people could no longer afford to pay their mortgage (aside from the fact that many were laid off from their jobs). To avoid this, it is always good How much can you comfortably spend for a house of your own?
A simple rule to follow is to multiply your annual salary two and a half times. An annual salary of $72,000 can afford a $180,000 home. Beyond than that it would cause some inconvenience. Married couples would be better of by pooling their incomes together, so they can afford a better home.
As for the monthly pay, lenders have this 33/38 guideline. Your housing costs should not exceed 33 percent of your total monthly income (before taxes). When added to all your other consumer debts, should not exceed 38 percent. This 33-38 figure is called debt-to-income ratio.
Housing costs include mortgage payment, taxes, insurance, if any, and homeowners association fees, if any. Hence, for an income of $6,000 a month, housing cost should not exceed $1,980 given the 33 percent front ratio. Make sure your mortgage is below that too, as you have other payments to consider in housing costs.
As for consumer debt, this includes credit card balance, student loan, and other related debts. If you ever have car payment, that would take up much of your consumer debt. Going back to the $6,000 monthly gross salary, your consumer debt plus housing costs should be around $2,280, given the 38 percent back ratio.
The 33/38 debt-to-income ratio is only a guideline for lenders, not necessarily a rule. They can loosen up the figures if you give more down payment, or if you have good credit background. It also depends on what kind of loan program you choose. The 38 back ratio can even extend up to 41. On the other hand, if you only give a small down payment or have a less-than-likely credit report, lenders may be a little tight for you.
For your own safety, stay within this guideline. Take note that you’re not only paying debts with your monthly salary, you need to feed too. You also have leisure, recreation and other basic needs. If you have children, then you have more mouths to feed. Save yourself from sleepless nights by staying within your budget.
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Friday, May 28, 2010
Many dream of owning a piece of real estate property in this fantastic place. But the cost of properties here are sky high, considering that average cost of a vacation house here is US$ 1 million.
But Tremblant real estate men solved this high cost of real estate by means of the Condo-hotel scheme. This scheme involves the construction of high-rise luxury hotels, and have them operated by well – known hotel-chain operators like Westin, Carlton, Fairmont, Ritz and others. In this scheme, hotel structures are built like condominium units, unified into a hotel setup.
With this scheme, individual condo units are made available for sale with affordable prices. Though smacked in expensive areas, the cost per unit is reduced because of the multi-story concept. Furthermore- while the condo unit is vacant, when it’s not used by the owner, it can be rented out thru the hotel administrator; this is if the owner allows it. The fees charged are quite steep, but the condo unit will be maintained well and will have a good reputation and selling point. This will enable the owner to get a good resale price if he decides to sell it.
With the prevailing economic condition now, if one has extra money to invest, now is the time to dabble in real estate ventures, while the market prices are on the down side. Joseph Kennedy, the father of Pres. Kenned, made the bulk of his wealth by buying bargain real estate properties during the Great Depression period. When the good times came, his properties multiplied in value, several times over their acquisition costs.
Now, one could be a Tremblant property owner, a place where only multi-millionaires could afford.
Thursday, May 27, 2010
Monday, May 24, 2010
Of course, this is in addition to good personal relationship of the agent with the buyer- as a result of his reputation as a real estate man.
The agent must also be aware of the trends of real estate in the locality where he is specializing in. Are the demand and market prices going up or down? Thus, he could advice his buyer as to what moves and what kind of property the said buyer must consider. In this aspect, the agent must act not just as a salesman, but also, as a real estate professional whose advice is valued in this field.
Rental transactions play an important part of the industry that helps it to survive during hard times. These include leases and rentals of residential, business, agricultural and industrial warehouses.
Friday, April 24, 2009
Another mistake that is commonly made is seeing a different person’s instant success and assuming you will achieve the same results. This hardly happens in reality. Despite having good plans, people fail due to lack of the required effort for achieving their goals. There is so much work required in achieving real-estate success in the long-term, and that is why only few people accomplish it.
The Starting Goals Can be Lofty but Reasonable.
It is great to think big, but most people cannot help cringing whenever they overhear someone saying that in their first year of real estate business, their mission is to acquire one million dollars. Although everyone loves dreamers, there exists a line between delusions and dreams. Someone with a yearly income of 50,000 dollars but with no previous experience in the business of real estate can hardly make this sort of money in a year’s time.
What sort of expectations would beginners find realistic? The ideal approach is setting long-term, intermediate and short-term goals. It is important to ensure that these goals are attainable, specific and realistic. This is an outline of how these goals may appear:
• Fifteen years goal: Retirement benefit of a monthly passive income of 10,000 dollars. This requires between three and four million dollars in a free and clear real estate rental.
• Five years goal: Acquire 3 or 4 million dollars of real estate in areas that are steadily appreciating. Flip, fix and buy fiver properties every year at 20,000 dollars average profit to replace the current income.
• One-year goal: Wholesale 2 or 3 properties, flip, fix and buy 2 properties at retail and acquire 3 rental properties for keeps.
• Six-month goal: Do 2 or 3 wholesale flips and buy 1 rental property.
To avoid personal setups where disappointment is certain and financial disaster imminent, the dream of being a millionaire overnight must be forgotten. It is better to focus on the route that is slow but steady while aiming at wealth accumulation systematically with a single deal at any particular time. Assistance should obviously be sought from experts who are qualified and active in this business. Avoiding most of the mistakes on the road to riches ensures that the destination is reached much faster.
Sunday, March 22, 2009
It’s a situation facing hundreds upon thousands of people and the numbers are growing rapidly. Foreclosures aren’t just happening to people who have over spent and got into risky loans. They are happening to homeowners who are getting divorced, facing health issues, needing to relocate for a job, and numerous other reasons. Regardless of how you may end up falling behind on your mortgage, knowing what to do next is critically important.
A lot of the news media is talking about the first thing you need to do is contact your lender. However, if homeowners who are facing foreclosures contact their lender first, the first person they interact with is the customer service agent who may threaten them and tell them that they are going to foreclose on your home right away to scare them into not taking action. If they get to a loan mitigation person and they are talking to them, they may agree to a workout that they cannot afford just to get the phone calls to stop. However, if they agree to a workout they cannot afford and they miss a payment, homeowners have essentially lied to their loan agency and that’s not something good.
What people are finding is that lenders are willing to work with them. It will take a whole lot of persistence on the part of homeowners. They really need to make sure that they’re not intimidated by the conversation they need to have with their lender but they need to step up and say ‘I am not going to be able to make this. What can we do to suspend the payment or lessen the payment or modify the payment until I get back on my feet?
In case you just need a little bit of extra money to get caught up, there are some employers who have a five-thousand-dollar loan that they are able to give their employees with low interest. They can pay it back through their pay over time; that’s one. Two, there are grant programs through housing counselors like HUD; there are grant programs that are available to people who are going through foreclosure.
Due to the housing crisis, A lot of people are taking in boarders and renting out rooms. Some people are renting out their entire house and they are staying with family so that they can make the mortgage payment. These are all things that homeowners need to do—think a little bit outside of the box when it comes to a solution. Another thing is, with the gas prices being as high as they are and people having to commute back and forth to work, you may want to ask your employer if you can cut down to a telecommuting schedule and think about selling your car.
Looking for solutions to an emotionally and financially draining situation such as a foreclosure is fatiguing and frustrating. However, if you realize there are options then you can begin to build momentum to rectify your situation. Ultimately, it’s critical to consult with experts on this matter, to be open about your financial dilemma, and to seek help immediately. Real estate agents can either help you sell your home in a short sale, if necessary, or rent it out to help you pay your mortgage. Trying to do it alone can be a painfully disastrous experience — seek the help you need.