Foreclosed properties are source of bargain properties. One can buy them; and then, either rent them out or upgrade them to for a profit. Records show that in 2005 alone, there were 800,000 foreclosed properties, and these increased quarterly since then.
To dabble on foreclosed properties, there are questions that need to be answered –
• 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.
Monday, May 31, 2010
Saturday, May 29, 2010
Computing Your Mortgage
One of the major reasons why the recent recession occurred was because of the surmounting credit of people. There was a false demand in the market, as people acquired things beyond their ability to pay. When it was time to pay, there was no real money to back up the demand, resulting to economic failure and bankruptcy.
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.
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 $2,280, given the 38 percent back ratio.
The 33/38 debt-to-income ratio is only a guideline for lenders, not necessarily a rule. They can loosen up the figures if you give more down payment, or if you have good credit background. It also depends on what kind of loan program you choose. The 38 back ratio can even extend up to 41. On the other hand, if you only give a small down payment or have a less-than-likely credit report, lenders may be a little tight for you.
For your own safety, stay within this guideline. Take note that you’re not only paying debts with your monthly salary, you need to feed too. You also have leisure, recreation and other basic needs. If you have children, then you have more mouths to feed. Save yourself from sleepless nights by staying within your budget.
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Friday, May 28, 2010
Affordable Tremblant Investment
Tremblant, meaning trembling mountain in French, has the reputation of a winter heavenly vacation spot. It is only more an hour drive from the City of Montreal, Canada. An all weather winter and summer resort, its ski facilities is world class. It has all year round swimming pools and golf courses.
Many dream of owning a piece of real estate property in this fantastic place. But the cost of properties here are sky high, considering that average cost of a vacation house here is US$ 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.
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
How to Compare Home Equity Loan Products
If you're looking to cash in on the equity in your home, you need to learn how to compare home equity loan products. There are a wide variety of such products out there, and you need to carefully look over all the different ones to be sure you're getting the best possible deal. You can save a ton of money by getting a good product. Your best bet is to go with a well known, reputable company that is offering low rates and good loan terms. You should also decide whether you want an outright lump sum loan or a line of credit.
When you take out a home equity loan, you are borrowing money based on the amount of value you own in your home. This value is determined by the amount of your mortgage you've already paid off, as well as how much the market value of your home is. These two things will determine the amount of equity you have in your home, and it can be quite significant in some cases. That is why people usually take out home equity for large purchases, such as for funding college for a child or paying for a wedding. Home improvements are also a common reason for taking out these loans. To get the best terms and to be sure you won't get in over your head with payments, it is necessary to compare home equity loan options and companies.
If you get a lump sum loan, you'll just get a check for the amount of equity you have in your home, then have to pay it back, just like a regular loan। If you opt for a line of credit, it will be like a credit card, where the credit is revolving. You'll spend a little, pay it off, and then have the money you paid back available for use again. When you compare home equity loan products, you'll see that many of them have differing interest rates and terms. While the rates and terms you'll qualify for will depend on your credit, you can still shop around a little and be sure that you're getting the best loan possible for your needs...and your wallet.
Monday, May 24, 2010
Realtors: Surviving in Tough Times
Real estate business is like a commodity retail store. To be successful or just to survive, an agent has to have plenty of varied stocks to sell. This is also true in real estate enterprises. A real estate agent must have many and varied listings of real estate properties for sale. A prospective customer will not look for other real estate agents to service him, if his agent has enough listings of real estate properties where the said buyer could choose from.
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.
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
Patience and Making Money in Real Estate
When most people commence in the investment of real estate, they do so with lots of fervor, but they become disheartened after failing to achieve their instant fortune. After discovering that they cannot acquire riches easily and quickly, they move to a different investment scheme. A common mistake such investor make is learning several tricks and assuming success is granted.
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.
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
Other Foreclosures
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.
Saturday, January 10, 2009
Dunedin Florida
Downtown Dunedin’s Main Street impresses visitors and locals alike with over ten blocks of unique shopping, dining, nightlife and recreation options. What began as a simple restoration project to capture pedestrian traffic brought through Dunedin’s downtown by the county’s recreation trail is now one of the most successful downtown revitalization projects in West Central Florida. Celebrating a 100% occupancy rate on Main Street, the City of Dunedin already knows a downtown’s success is a result of catering to the diverse needs of the area’s residents and visitors. From recreation to shopping and dining, downtown Dunedin strives to have something for everyone. As far as recreation, Main Street Dunedin is a favorite of both land and sea lovers alike. Sea lovers appreciate that Main Street runs right into the city marina facility where boat dockage for both residents’ and visitors’ boats is available, as well as a myriad of rental and charter boat options for those without a boat. On the other side of Main Street, for those that prefer dry land is the “Pinellas Trail” a thirty-four mile pedestrian trail gives visitors the option to walk, run, bike or ride throughout town and even throughout the entire county!
Just as downtown Dunedin’s recreation offers variety, so does Main Street’s shopping. Choices range from an economically priced consignment shop, The Little Thrift Shop, which offers bargains on gently used wares to Kina Kouture, an exclusive couture boutique that specializes in chic trendy one of a kind clothing. In addition, there are antique shops, art galleries, unique collectibles, wooden furniture, tropical gifts and over twenty-five other stores to suit the preferences of most shoppers.
In addition to all of this, Dunedin’s Downtown boasts over fifteen restaurants and cafes. For a casual atmosphere, diners can sit outside and enjoy light fare at Café Alfresco, Jolli Mon’s Café or Cappuccino’s Café. If one’s prefers a bit livelier of a meal, Casa Tina is an excellent dinner choice that serves patrons Mexican food accompanied by live music, dancing and Cirque style shows weekly. Other live music options along Main Street include Flanagan's Irish Pub and Dunedin Brewery; both offer a diverse beer selection and high quality pub-style meals as well as showcase distinct musical talent up to four nights a week. At the other end of the spectrum, the Black Pearl is a romantic restaurant well known for its intimate setting and award winning cuisine.
Once you have finished running, walking, sailing, shopping and eating in Dunedin there are still more choices. Whether you prefer a sweet treat at one of Dunedin’s three ice cream and sweet shops or a cocktail at one of the many bars and nightclubs, you won’t run out of things to do in this lively town!
More about Dunedin. See all Dunedin Homes for sale and Dunedin Real Estate including all MLS Listings in Pinellas County.
Thursday, January 01, 2009
Clearwater Marine Aquarium
At The Clearwater Marine Aquarium, visitors experience a unique working marine facility that specializes in the rescue, rehabilitation and release of local sea life. The Clearwater Marine Aquarium’s focus is on educating its visitors while entertaining them. Unlike large metropolitan aquariums, this aquarium’s small size allows visitors a chance to view the marine life in a more intimate setting. Utilizing a see, touch and learn method the aquarium provides various opportunities for encounters with sea turtles, stingrays and dolphins that are housed at the aquarium until many of them are ready to be released back to the sea. With thirteen different exhibits including stingray beach, otter land, numerous turtle habitats, the animal’s kitchen and the various rehabilitation areas, there is something for everyone. One of the most popular exhibits at the aquarium is the Dolphin Show where every seat is front row and all guests are warned they are in a potential “splash zone!”
For individuals and groups that want an even more personalized and extensive experience, the aquarium offers actual animal encounters. Both the Dolphin Encounter and the Trainer for a Day Encounter allow participants the chance to spend time with the animals and their trainers preparing meals, feeding the animals and learning about the maintenance and care of the aquarium’s resident marine life.
The aquarium is open daily and guided tours are available. Visitors wanting to participate in either the Dolphin Encounter or Trainer for a Day program must have advance reservations, so be sure to call ahead. For more information, the aquarium’s extensive website features videos of many of their marine rescues and releases as well as a live web cam of the dolphin habitat at www.cmaquarium.org.
See all Clearwater Florida Homes for sale and Clearwater Real Estate including all MLS Listings in Pinellas County. Info and Demographics on Clearwater Florida.
Tuesday, December 09, 2008
Coconuts Comedy Club in St. Petersburg
Coconuts Comedy Club is a chain of comedy clubs operating throughout Florida and the United States. However, it has its origins right here in Pinellas County. The original Coconuts was opened in St. Petersburg in 1986 as a way to fill the void of live comedy in the Pinellas County night life. The concept of a comedy club/restaurant combination took off wildly, and the addition of nationally known comics added to the club’s appeal. It wasn’t long before Coconuts took off and became one of the most popular destinations in Pinellas County. It was only a matter of time before other business owners wanted in on this successful comedy club model, and a franchise was born.
While you can get tickets to shows at the door, it’s usually a good idea to book in advance for the most popular comics, as those shows sell out fast. You can rent the club out for private functions, and gift certificates are available. Treat yourself and your friends to something other than the usual dinner and a movie the next time you go out by catching a show and a great meal all in one at Coconuts Comedy Club.
See all St. Petersburg Florida Homes for sale and St Petersburg Real Estate including all MLS Listings in Pinellas County. Related info on St. Petersburg FL.
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