Category Archives: General

Utilizing REO Property Preservation Services to Improve a Property Value

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REO Property Preservation handles the task of preserving a property possessed by a mortgage lender or a bank. For that is what REO is, Real Estate Owned. These are the properties which have become the bank’s property after foreclosures, when the owners cannot afford their mortgage payments. These properties would have failed to attract any bid in the event of a foreclosure auction and had a market value less than the debt owed to the banking company. Such properties will usually be in a bad condition due to low maintenance by the possessor or tenant, which is why the lenders would need such services.

Since a real estate owned property is a nonperforming asset for the banking company, they would want to sell it, so they would prefer it to be in a healthy shape. This is why they take the services of REO property preservation companies. The teams commonly remove rubble and waste in and around the holding, execute janitorial services, plank up the windowpanes and re-key and secure all entries. The services also include landscaping and improving the landscape or outdoors of the property to a decent state. They also do the preparation for winter if necessary.

Property preservation becomes challenging if the property is occupied. For that reason, many companies also provide dispossession as part of their property preservation services. These are of course the initial services. Property preservation companies also provide repeating and regular services such as review, upkeep, and at times, even cleansing.

The firms also prepare the properties before sale. This preparation may include lawn trimming, cleaning the home inside out, and scrutinizing and renovating plumbing, HVAC, electrical furnishing etc. Generally, banks prefer to sell these houses in an as is condition; but if they want to do renovate or remodelling to increase the houses equity or to keep a deal from falling through, the preservation companies may also provide these property preservation services.

Presently, because of the economic situation, the number of foreclosures and REO properties has been on the rise. This has got an increase in the demand for REO property preservation, as banking companies and lenders find themselves with more and more non-performing assets that need to be developed, to be of any value in real estate. When rendered well, the preservation services can improve the REO property’s standing in the real estate market.

Learn more about REO property preservation. Stop by Ciaran Weaver’s site where you can find out all about property preservation services and what it can do for you.

Buying Overseas Vacation Homes

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A majority of us have dreamt of owning an overseas home at home point in time.  Owning a home overseas represents a different way of life, in a sun drenched tropical location that is teaming with activities and plenty of things to see.  For many of us, owning real estate overseas is a dream that we all look forward to at some point in our lives.

If you have been considering buying a home in a foreign land, there are some things you should be aware of.  Anytime you decide to buy a home in a far away land, there are traps and pitfalls that you need to be aware of.  If you are aware of these pitfalls, you’ll go a long way in securing your home – safely and securely.

If you want to buy overseas real estate for the value, you should always keep in mind that real estate fluctuates – some months the value may go up, while other times it may go down.  Not all countries have the same real estate economy, which makes it in your best interest to look into the economy before you buy a home.  This way, if you are buying for the value, you’ll know whether or not your purchase will be profitable.

Legal systems are also something you should be aware of as well.  Different countries do things differently, which is why you will need to look into the different legal systems before you decide on a property.  The last thing you want is to purchase a home and find yourself totally unaware of how the proceedings go in the area you have chosen.

If you are buying your home to make some extra money, such as using it for a vacation or holiday home, you should always pay attention to the accessibility factor.  If you plan to visit the home yourself for vacations, you’ll want to make sure that your property is easy to reach.  If your property is hard to reach by automobile or plan, it will decrease in value and popularity over time.  On the other hand, if your property is easy to access, it will be great for you and anyone else you decide to rent the property out to.

If you want the process to go as smooth as possible, you can always enlist the services of a real estate agent.  Even though you may be buying an overseas home, a real estate agent will know the area and he can answer any questions you may have.  Chances are that you aren’t familiar with most overseas areas, which makes a qualified real estate agent a very worthy investment.  Your agent can also make recommendations based on what you are looking for – and show you the homes that you wouldn’t be able to locate without his services.

Marketing for a better margin or sell better

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In this declining sales time, here are some tips for marketing your properties

There is nothing more difficult to someone beginning the real estate investing game than to decide what type of marketing method is best for them in this venture. Sure, different strokes work for different folks, but how are you going to find what works for you and helps to separate you from the other real estate investors in the game? In the beginning you may be struggling to come up with the cash that you need to be able to market the way you want, so why not try some methods that are both inexpensive and effective to beginning making your name well known in the game.

Try using the more time-tested and continually effective methods like door-hangers, yard signs, flyers, direct mailers, and postcards to get your name in front of prospective buyers.  With the possible exception of direct mailers, these methods can provide some relief to your pocketbook while providing you with the ability to brand yourself as a buyer in the market. Remember, the key is to get people to think of you every time that they have to buy or sell a house.

If you are the first person they think of you may get the inside track on the prime properties in the area for the prime prices!

Once you have begun to establish yourself as an individual in the real estate investing market then you need to be everywhere that people look when real estate comes to mind.

Be in the newspapers, on television, or on the radio with a jingle or slogan that makes people remember you.

Also, if you are in a market where homes seem to be for sale in a hurry quite a bit (near a military base, etc.) then be the first one the buyers or sellers see in your local phone book.

Like most business, brand yourself in the beginning by being everywhere, then you just need to remind people that you are around!

Residential Investors – Move Up to the Big Dollars

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1.Bigger Profits – bigger profits are in bigger deals. Working in the average price range and above in your area is a good place to start. Big-time investors say go where the money is at 2 to 3 times your average area sale price and higher. There are more handyman investors chasing the smaller deals and actually driving up the prices therefore making minimal profits.

2.Locate the Property – These homes are available in almost every neighborhood. All over the country are foreclosure homes in every price range. There are million dollar foreclosures right here in Charlotte, NC. Work with a professional real estate agent be aggressive go after the bigger deals where there is less competition.

3.Making Offers – the process is the same in no matter what the price range you work. Determine after repair value, subtract repairs, subtract carrying costs, subtract your overhead, and subtract your profit (minimum $25,000) equals maximum offer. Offer something way less than that and then negotiate to somewhere under your maximum offer amount.

4.Financing –not very often are you going to get the same bank to finance a foreclosure deal. You can possibly get a bank to finance a construction loan if you can wade through all the paperwork, use your credit cards (old school) best are to keep on finding outside sources like hard money lenders, partners, private lenders, your self directed IRA, someone else’s self directed IRA or anyone of your contacts who wants to make 10% to 12% on a first mortgage secured by real estate.

5.Repairs/Renovation – speed and quality are what you need and are expecting from you workers. Hire or have on your team a group of excellent and competent contractors and suppliers. They may cost more but your savings in the 2 to 3 or 4 months in extra carrying cost after shoddy workmanship will off set the additional expense. Time is money, in this case big money.

6.Marketing/Selling – start selling before you close on the purchase. Advertise for sale by owner when the agreement for sale is signed by you and the seller. You may be able to turn over the property at a profit and let your buyer close with the seller without any expense on your part. What is the ROI of $10,000 with $0 investment? Begin your advertising as an “as is” price, increase your sale price as you have work scheduled and ordered. By waiting until the project is complete to start advertising will put you 3 to 4 months behind in the process.

Working where the money is, is the same process as working on cheap houses just by adding more zeros to the end of the check. You work in better neighborhoods your appliances and fixtures won’t get ripped off every weekend. There are more opportunities to sell in a place where people really want to live.
EzineArticles Expert Author Bill Carey

Bill Carey with over 30 years in real estate sales, investments, and home building offers a unique perspective to the buying and selling process of residential real estate for F*R*E*E consumer information and reports log on to http://www.CharlotteNCExecutiveHomes.com and see “Insider Real Estate Secrets Revealed” …a must-read for Home-Owners and Renters! It’s a F*R*E*E 12-lesson e-course covering more than 20 topics exposing the realities behind buying and selling a home. It Could Make(or Save) You Thousands of Dollars

See http://www.BillCareyRealtor.com and sign up for our monthly e-newsletter with tips for buyers, sellers, home owners and soon to be home owners.

Real Estate Investing Produces Extraordinary Profits

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Imagine making $5000 a year from real estate investing without recognizing you are real estate investing!

Real estate values are so dynamic. The marketplace is always fluid and changing. The only constant is the eventual escalation of value.

Suppose you had owned that little piece of property in your neighborhood years ago where McDonald’s is located today. If you had owned it for 20 or 30 years, what would your profit be from that sale?

Real estate values fluctuate in cycles and according to a myriad of owner situations. However, the price of real estate almost always goes up.

Let me give you a real-life example. (And if you are old enough, you have your own similar story!)

In 1970 I bought a little house in the Green Hills section of Nashville for $27,000. You know it wasn’t much because of the price. But it was home, and the location was respectable.

In 1978 I sold that house for a bigger house in Green Hills. The sales price for that little house I sold was $67,000.

That’s when the light bulb went off in my head! I suddenly realized that I had profited $40,000 from that little house in only eight years. I hadn’t added any more rooms or a patio. And I hadn’t even painted. I was witnessing first-hand how property values increase, often drastically!

I made a $5000 profit per year from that house, just from living in it.

It was an amazing discovery to me. It had been a reality forever, but it was no longer a vicarious experience in my mind. It was alive, because it was happening to me. And it changed my view of the world. That personal experience led me to start a real estate investing career.

I still live in Green Hills, and I pass that house every day on the way to the post office. That house recently sold for $200,000. Same size. Same location. But a phenomenal increase in value.

Asset growth from $27,000 to $200,000 is pretty astounding. And while the asset growth ratio varies from property to property (and city to city), real estate values generally increase. Even owning and maintaining your personal residence is cash generation right under your nose. I can’t believe I was so dumb not to see it before it became so apparent.

If even home ownership can be so profitable, can you fathom the profitability in real estate investing?

EzineArticles Expert Author Dr.Phil Speer

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online “Academy of Advanced Real Estate Investing Techniques” - http://www.AAREIT.com/.

Article Source: http://EzineArticles.com/?expert=Dr.Phil_Speer

Getting Started in Real Estate Foreclosure Investing

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Updated December 12, 2005

Decide to Invest in Real Estate Foreclosure Investing

With the increase in Real Estate property appreciation rates across America, a prospective foreclosure buyer may want to fix up a property to improve its value to live in, to rent out or to resell. The strategy a buyer pursues will determine which foreclosure property to buy and the location.

For example with San Diego, California’s media home prices topping at $500K+, a couple might not be in a position to afford a home of their own in San Diego, California. Yet, might be able to purchase a foreclosure property in another area or state with lower housing prices but in a faster growing market or with better future appreciation growth potential; when the property increases it’s value in a few years time, sale of the property could provide the necessary capital to purchase in the San Diego area.

Locating Foreclosure Properties

Finding foreclosure properties can be done by visiting the local recorder’s office and making photocopies, since listings are added on a daily basis, this can be daunting.

Using the internet, a number of web sites allow searches by state, county, city, and zipcode. All the sites listed below offer listings for a fee. Take advantage of the free trial period offered to fully evaluate thier listings. The sites should offer the latest listings with daily/monthly updates.

Determining the Distressed Property Valuation

Once you have identified a foreclosure property of interest in an area you have researched, determining the value proposition will determine whether or not to continue. The determination will be influenced by your investment strategy, i.e., whether you wish to live in, to rent out or to resell are factors to consider as well as your investment time frame.

The first step in foreclosure property valuation is the obtain information regarding the area. A number of web sites offer free sales comparables or “comps”. This information greatly assists in determing the property value.

Securing Financing

Due to the quick window of opportunity a foreclosure presents, it is important for a potential buyer to be pre-qualified before engaging in Real Estate Foreclosure Investing.

Also, knowing the amount of monies available to the investor can be a guide to locating areas within the U.S. that are with the the investment range

Being pre-qualified allows the buyer to be in a financial position to purchase the foreclosure property. Pre-qualification provides an important edge in competitive markets. Once approved, financing in-hand makes negotiations easier.

Finding and working with Real Estate Agents

The single most important aspect of foreclosure investing involves finding and working with a Real Estate agent.

If a foreclosure property is being considered out of the area or state, then working with a local agent in that area -who can advise on the condition, knowledgable about the growth potential, advise on local conditions, is an important relationship to develop.

Since a majority of Real Estate agents focus on “traditional” real estate transactions, mentioning “foreclosures” might cause them to balk at potentially working with an prospective investor; Therefore, educating the agent on the opportunity of working with you is important.

“Buyer’s representatives” have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make a buyer’s life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties.

Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws. But it’s also important to consider the agent’s knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.

Making an Offer

Once you have determined the property valuation, researched the area and appreciation growth potential, and established a relationship with a Real Estate agent making an offer amount somewhere below the market value is the final step.

If the property is bank owned (REO), you could prepare an offer similar to a typical purchase offer, contingent on a full inspection and title search.

John Appleseed.

Learn more about bank foreclosures and how to get foreclosure listings at http://www.bankforclosurelistings.com/index.html

Article Source: http://EzineArticles.com/?expert=John_Appleseed

Who Is Your “Rich Dad?”

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It’s been quite a few years since I read RICH DAD, POOR DAD by Robert Kiyosaki; I think it was back in 2000 as a high school freshman. It was one of my first insights into the business world, and after reading it, I was extremely excited!

First, if you have not read the book yet, I strongly urge you to pick-up a copy. Last time I checked Amazon it was $11 – not bad for a life changing book! If you have read the book, continue…

Now I’ll assume you’ve read the book or at least heard something about it. There seem to be two opposite perspectives on the book:

1. It is a great introductory book into the world and business and real estate investing.

2. The book is useless and Kiyosaki is a fraud.

My opinion is along the lines of #1. Kiyosaki has written a wonderful book that will enlighten and motivate almost any individual to take action and better their financial situation.

I can’t say whether or not Kiyosaki’s story of his two dads is true. But if it isn’t, it doesn’t matter. That fact has nothing to do with how good the book is. What matters is that the book is easy-to-read for the average person thanks to Kiyosaki’s style.

If you want detailed how-to information, look elsewhere. RICH DAD, POOR DAD puts the idea of financial independence in your head. That’s the point. If you gave a novice a technical book about flipping properties, he/she would be pretty bored and gain no interest in real estate investing. Those are the books you read after Rich Dad.

Regardless of your stance on this issue, you need to consider this valuable lesson:

Find a mentor.

“Rich Dad” is an example of a mentor, someone who guides you during your investing. Someone you can go to for advice. Someone experienced in your field. Mentors are invaluable when you are starting out and when you are faced with any sort of strategic decision.

Now go find your own “Rich Dad.” (Check out http://www.score.org/ for help.)

The Pros and Cons of the Real Estate Business

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The real estate business has been around for a good number of years. More and more people are drawn to it because of the steady influx of money, but there are things you have to consider before entering a real estate business.

First you have to decide whether it would be as a sole proprietor or through a corporation, partnership, or trust. Each has its own pros and cons. Let’s take a look at them.

In a sole proprietorship, everything is “sole” as in managed by a single entity. In terms of splitting the income, it could be divided among family members that have a lower income bracket. A lawsuit that may arise in the future regarding the properties is held personally.

A corporation is a structured legal entity that consists of a group of persons known as shareholders. Investments are high in this type because investors are attracted to the built-in stock structure. This type stays on the market for years until the stockholders decide to split up or merge with other corporations. However, starting a corporation requires a lot of money. Proper corporate formalities should also be followed in order for it to be recognized as a corporation. A huge amount of paperwork is also expected in this type, in the start-up phase and every year of business. This includes reports, bank accounts, financial statements, and records that should be updated from time to time.

In a partnership, partners are generally liable for one another. Though with taxes, an individual may be taxed in terms of his individual level. Administrative and compliance costs incurred through partnership include legal, partnership agreements, accounting, and tax.

Trusts in some cases may be similar to a corporation; however, unlike a corporation, trusts are not held liable to capital taxes. And in case of losses, it remains within the trust and can not be flowed out to the beneficiaries.

When you know what type of management to consider, set your priorities on whether it will be land, apartment buildings, or rental apartments.

Buying a plot of land, like a broker, would be a good investment but one has to wait a long time for the value of the property to go up. However, you could get it for a lower cost to start.

For rental apartments, it would be a fairly easy start and provide a long term return on investment, but would require waiting for the pay-offs.

Apartment buildings mean triple-net income. It is because the tenants are usually tied in a three-year contract. A drawback on this is a vacant space for a long period of time. For every year that it is not leased, it would mean a loss of income.

Real estate business is a vast and varied opportunity. There are many things to consider before playing the game. Take time analyzing terms and conditions that go with it. In the long run, wise decisions could bring in a lot of money and lesser problems.

Interesting Article in Boston Globe

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Realtors Get Their Hands on Technology

This article discusses how real estate agents are leveraging technology to make their job easier. One example is Pathfinder from InternetMLS which integrates MLS listings wirelessly with GPS. A quick search for ‘real estate software’ on Google returns a variety of potentially useful programs for the RE investor and broker a like.

Services like Google Maps and Yahoo! Local allow you to also see what amenities (restaurants, coffee shops, schools, etc.) are near properties. A quick search for “[town name] + census” will generally return the newest census data on that town. Virtual 360 degree tours of houses is also a new but increasingly popular feature requested by potential buyers. The more information and interactivity you can provide over the web, the better. Real Estate is still somewhat of a conservative industry so you can get ahead by leveraging new technologies.