Wisconsin Realty Solutions - Blog

Buying A Home At The Right Time

2006-11-21T17:43:00.000-08:00

by Tim Mai

If you are out looking for a new house, chances are you want to get it for the best price possible, right? Right. So how do you know what the right time is to buy a house? Here are a few things to keep in mind as you are shopping and looking to put in an offer.

First, think about the time of year you are out looking. It is generally accepted among the real estate community that the colder it is outside, the more likely you are to get your bid accepted. Why?

Because there are fewer people looking to buy a house the later it gets in the year. Why? Well, who wants to move in the middle of rain, snow, sleet and wind? Not the ideal moving conditions. And because there are fewer people that want to move during that time of year, the fewer offers there will be on a given property. The fewer offers, the more apt the owner is to take the first reasonable offer that comes along.

And, get this. The best time in the winter to buy a house is the week between Christmas and New Year's. The reason for that is agents have forgotten about the properties that are still waiting to sell. They don't expect a lot to happen during that week, and are excited when something does.

This usually only happens in areas of the country that have distinct seasons and have varied temperatures throughout the year. For example, in climates that stay warm all year, like California, or where it is cold all year, like Alaska, you will be less likely to see this type of trend.

Of course, another way to get the best price is to watch a certain property to see how much activity there has been on it. Also, you can do research to see how long the current owner has had the home. This may give you some insight as to how motivated they are. Have they changed realtors more than once to try to get the house sold?

Wait until the market slows to make the jump into buying the home. The slower the market, the fewer offers. The fewer offers, the more likely the seller is to take the offer. They may be so happy to have an offer that they may take it as long as it is reasonable.

Also, with a slowing market, people with less than perfect credit will be able to qualify for a loan. That is because sellers are more motivated.

As an example, take an owner that is asking $100,000 may take $89,000 for it. With taking so much less for the house, lower credit scores will be able to get a loan for the lesser amount. So, keep in mind, when you are looking at houses, that timing is everything. For some, timing is the changing season, for others it is the market as a whole. Be sure to watch the trends and pick out the best time for you and your situation.
About the Author

Tim Mai is the founder of Community Real Estate Investors Association, a network of real estate investors who advertise "We Buy Houses Fast" across the nation.

Mortgage Calculator - How can I know how much I must earn a year to afford my house payment?

2006-11-03T17:58:00.000-08:00

by John Lee

A mortgage is the single largest loan that you will take in your life. A mortgage extends for a minimum of 15 years and a maximum of 30 years. To take on such a large debt you must be aware of your financial capability and future liabilities.

Why should you want to know your annual earning to afford your house payment?

If you take a mortgage, you need to make monthly repayments for the next 15 or 30 years. In that case, your monthly earning must have provision for the mortgage installment and other monthly expenses. Therefore, you must estimate your annual earning and then take a mortgage that fits within your budget.

How can this information help me in arriving at the amount I can take as mortgage for my home?

Simple economic theory states that your monthly mortgage repayment, including the principal and interest must not exceed 25% of your gross monthly income. Add to this real estate taxes and property insurance that adds another 3 to 6 percent. Besides this, you have your food and other monthly expenses and federal taxes that you pay.

Example

We assume that you will make at least 20% down payment for the mortgage in addition to 2 to 5% as closing costs. Visit any home finance website and they will give you indicative cost per thousand dollars for a 15 year or a 30 year mortgage at varying rates of interest. So, if you finalize a house for $150,000 and make a down payment of $30,000, then at 9% for a 30 year mortgage, the monthly payment using figures from the table provided works out to $8.05 per thousand. This means a monthly installment of $ 966 or $11592 per annum. Since we assume this is 25% of your gross income, you need to earn at least $46,368 per annum to service this mortgage. Similarly, if you feel you can take a bigger house then you can go for a 15-year mortgage with a higher monthly installment. Moreover, the equity on a 15-year mortgage builds up faster so you can go for a refinance or move to a bigger house.

How to calculate your annual income to get an affordable mortgage

You can generally qualify for a mortgage that is twice your annual income. However, lenders assess your net worth, your liabilities, and costs of owning the new house before sanctioning the mortgage.

Let us now consider that your monthly expenses include mortgage payments, property taxes, insurance, and maintenance costs. You may need private mortgage insurance if your down payment is less than 20% of the mortgage amount. This is usually 0.5 to 1% of the mortgage amount and a monthly deduction. This insurance amount may increase marginally over the years. Next, calculate your assets including income, savings, pensions, and equity in real estate. Your liabilities include car loans, monthly expenses, and credit card loans. Your emergency funds should include savings that can provide for six months living without any income. Your net worth is the net of your assets minus liabilities. Subtract emergency funds from net worth to get a sum that is available for losing costs and down payment. Next, get the sum of annual expenses and operating costs, minus them from your income. Then add the cost for rent and insurance to get an amount that you can spend on your house in a year. Therefore, your annual income must be almost double of this amount.

Advantage of using a mortgage calculator

As explained above the calculations are detailed and you must not make any errors. It is therefore better to use affordability calculators available at most financial websites to estimate your annual income.

Disadvantage of not using a mortgage calculator

You will end up buying a bigger house and then take a huge mortgage loan that you cannot afford. You may default on your repayments, severely affecting your credit rating. This will hamper your future chances of credit and affect your credibility among lenders.

About the Author

John Lester is CEO and owner of the acclaimed online mortgage resource
site http://www.refinance-refinance.net.

Basics of Real Estate Law

2006-10-28T14:25:00.000-07:00

by Sandra Stammberger

Real estate is such a broad topic. This topic covers almost the whole world and every individual has concerns regarding this.

Like any other things in this world, certain laws govern real estate, the so called real estate law. Nevertheless, to fully understand what real estate law is, it is necessary to define real estate. What is real estate?

Real estate is a legal term that includes land along with anything permanently affixed to the land such as buildings, fences and things attached to the buildings, such as plumbing, heating, and light fixtures. The properties not affixed are regarded as personal property.

Just like real estate, the real estate law is such a broad topic as well. If you are going to discuss it in a very simple way, real estate law is only the law, rules, regulation and other legal matters that governed real estate.

Real estate law entails things like owning real property, the typical restrictions imposed on owning real property, the common forms of property ownership and many others. As said earlier, it is very broad.

In this article, real estate will be discussed through the basics of real estate law. The basics of real estate law include understanding real property, the ownership, the restrictions, and the forms of property ownership. The basics discuss the topic regarding ownership of real estate.

Understanding its basics, you will definitely have the right thought about real estate law.

One of the basics of real estate law is real property. What is real property? Real property is simply the real estate. The real property is used interchangeably with real estate.

However, for technical purposes, some people prefer to distinguish real estate, referring to the land and fixtures themselves, from the real property, referring to ownership rights over real estate.

Real estate also entails about owning real property. What is owning real property about? Owning real property allows you the right to do with the land as you please aside from those subject to restrictions imposed by real estate law.

Owning a real property means you can do anything with it such as use it; give it away; sell or transfer it; use it for a collateral for loan; bequeath it to intended beneficiaries or let it sit where it is without doing anything to it. In other words, owning real property is having total rights on a land and no one can ever question you for it is yours.

In owning a real estate, some typical restrictions are being imposed by law. There are countless laws that restrict what you can do with the real property. It may be federal, state, county and local laws. The enforcement of these laws resides with the various agencies.

The most common restrictions imposed by government are zoning. It is an environmental hazard, public easement, right of way.

If there are restrictions imposed, there are also forms of property ownership. These are joint tenancy; tenancy in the entirety; sole ownership; tenants in common and community property.

In joint tenancy, two or more people own the property at the same time in equal shares. In tenancy in the entirety, some estates have especial form of joint tenancy when the joints are husband and wife- with each owning one half.

In sole ownership, the property is owned entirely by one person. Two or more persons own common tenants' property at the same time. Meanwhile, community property is only recognized in the estates. It is a special form of joint tenancy between husband and wife, each owning one-half of their properties. Upon death, the decedent's interest passes in a manner similar to tenants in common.

The basics of real estate are the best information needed in order to understand real estate law. With this basics information, although real estate is very broad, you have the capabilities of understanding it into its deeper sense.

About the Author:

Do you want to find affordable real estate in your area? Browse our huge database of seized homes, nationwide.

Learning to Make Money from Raw Land Investments

2006-10-21T12:46:00.000-07:00

by Shashank Srivastava

Conventional wisdom says that land investment is usually a long-term investment that requires patience and many years of waiting before one can reap substantial profits. The Land Institute, Inc has dispelled this long held notion and is demonstrating to the average investor that raw land investment can reap substantial rewards in the short term.....if you know how to.

The land investment experts at The Land Institute(TLI) have demonstrated through its courses that they can buy and sell a piece of raw land within 60 days for a profit. They do this through a 5-step process, which are as follows:

1. Locate the land 2. Evaluate the land's market value 3. Take control of the land 4. Subdivide the land into smaller parcels 5. Sell it quickly for a profit

Raw land investment is an excellent investment vehicle because 70% of the country is covered with vacant land. With so much land available, there is abundant opportunity for everyone to make some money.

Some of the best land investment opportunities are not advertised in the media and can be found by simply driving along the countryside, outside the city and looking for a 'land for sale' sign.

According to the land investment experts at TLI, one of the ways to look for a motivated seller is to look for landowners who are not locals. Very often, people who are not local do not have the time to manage and maintain their land. They also often become frustrated when dealing with the local county. An easy way to look for a non-local landowner is to visit the courthouse and check the records there. Once the landowners have been identified, the next step is to contact them by phone or mail to check if they are interested to sell their land.

To succeed in raw land investment, it is important to network and build a team of support associates over time. It is important not to do everything yourself. This is where delegation and outsourcing becomes an essential part of managing the deal. As an investor, one will need people who can support us in diverse areas such as finance, law, sales, marketing, etc.

Many sellers face difficulty selling their land quickly as they do not know how to package their land in such a way that it is useful to potential buyers. At TLI, students are taught how to purchase land at a bargain and add value to the land before selling it for a huge profit. They are also taught how to look for motivated sellers and deal with potential problems related to zoning, bad contractors and county approvals. For more info about these courses, visit www.landbuyerpro.com.

Shanu Srivastava has been investing in real estate for over 5 years, and has been involved in over 200 properties. He has completed all kinds of transactions ranging from a Subject To purchase to a pre-foreclosure short sale to raw land quick turns. He is currently teaching students from around the country to find land deals with virtually no competition.

About the Author

Shanu Srivastava has been investing in real estate for over 5 years, and has been involved in over 200 properties. He has completed all kinds of transactions ranging from a Subject To purchase to a pre-foreclosure short sale to raw land quick turns. He is currently teaching students from around the country to find land deals with virtually no competition.

Investing - Assessing The Risks Of The Different Types

2006-10-21T12:35:00.000-07:00

by Brooke Hayles

Each of the many different categories of investing that you can choose from have their own risks! As such they will suit different people with different requirements. This article looks primarily at the risks of the main different types, without delving into technical analysis or professional opinion.

Note: You should always seek professional advice with regard to your investment strategies.

Categories And Their Risks

A: Investing Money In The Bank - Risk Low

Barring major economic melt-downs there is little risk with this approach. However the returns are poor to pathetic and this is not really a serious investment strategy

B: Investing in Managed Funds - Risk Low To Medium (conditional)

These funds are perhaps considered amongst the safest of investments. But this doesn't mean you can never lose money with managed funds, but generally because the funds are pooled together with those of other investors, there is a significant amount of buying power.

In addition, professionally managed funds have the benefit of providing access to an aggregated investment portfolio that offers numerous investing opportunities that individual investors would not normally be able to access.

Managed funds allow investors the ability to pick their preferred risk portfolio, diversify and spread their risk, and access international markets. As well, managed funds afford a level of convenience not found with more complex and hands-on investment vehicles.

C. Trading the Stock Market Yourself

You can either trade online or through a registered stock trader. The benefits and gains can be excellent, but the risks are self-evident. Unless you really know what you're doing, you can lose a substantial amount of money, particularly if you're using margin lending.

The best advice is to make sure you have a very comprehensive level of knowledge and try out your skills with some dummy trades before you put your money on the line.

D. Currency and Foreign Exchange (Forex) investing.

Similarly to stock market trading, significant amounts of knowledge and experience is needed in this area of investing to avoid substantial risk, but many people produce large monthly incomes working from home using this approach. E. Real Estate

Even though real estate is regarded as "safe as houses", the areas of risk can include:

- unexpected legal issues relating to boundaries, easements, etc. - building faults not picked up in the building inspection - periods of rental vacancy, when you are left having to pay all your interest costs with no rent to offset it - market adjustments that cause your capital value to decline (if you bought at the top of the market cycle)

Overall, there are risks involved in any investment and generally the higher the return, the higher the risk. The over-riding factor is to do careful due diligence and thoroughly learn your investment market and instrument before committing your money!
About the Author: Brooke Hayles

Investing Vault

What Type Of Zero Down Mortgage Is Best For You?

2006-10-18T13:22:00.000-07:00

by Matthew Allen

Below are 9 different types of zero down mortgage that you can qualify for. Each one has positive and negative aspects. Read and learn about which zero down mortgage will suit you best.

80/20: The 80/20 loan is simply an 80% first mortgage with a 20% second mortgage for a total of 100% financing. In other words you are getting two loans. This is the most common no down mortgage.

The positive aspect of this loan for a subpime borrower is that the interest is typically much lower than a 100% one loan.

This zero down mortgage is a beneficial loan for conforming borrowers because it will help you avoid mortgage insurance. Mortgage insurance is an insurance policy that you pay and that is of no benefit to you. It simply protects the lender in case of default/foreclosure. Sub-prime loans almost never have mortgage insurance, but be sure to ask.

The negative side of this loan is that you will pay two different sets of closing costs, which could tack on an extra couple of thousand dollars.

Also many people are afraid of having to make two different payments. Have no fear. You are more or less paying the same amount as if it was one loan and typically they are due at the same time.

One final thing to think about is that the second mortgage interest rate will almost always be significantly higher than the first mortgages interest rate.

The seller can typically pay 3% of the purchase price of the home towards closing costs with a conforming loan. With a sub-prime loan the seller can typically pay 6% of the purchase price towards closing costs.

100% One Loan: This type of zero down mortgage is pretty straight forward. It is simply one loan for 100% financing of the purchase price.

Unfortunately sub-prime borrowers will typically pay a much higher interest rate than they would with the 80/20 home loan.

For conforming borrowers the down side is that you will pay mortgage insurance which can range from .55% to 1.94% of the loan amount. The benefit for conforming borrowers is that the interest rate will be lower over all since you will not have a second mortgage. Plus once you have 20% equity in the home you can get the mortgage insurance taken off.

The seller can typically pay 3% of the purchase price of the home towards closing costs with a conforming loan. With a sub-prime loan the seller can typically pay 6% of the purchase price towards closing costs.

2/28 or 3/27: This loan is a very common zero down mortgage for sub-prime borrowers but conforming borrowers can take advantage of this loan as well. This loan is an Adjustable Rate Mortgage also known as an ARM. What this means is that the loan's interest rate is fixed for the first 2 to 3 years of the loan, and then is fully adjustable for the remaining years of the loan.

These loans have caps, meaning they can only fluctuate a fixed percentage per adjustment and have a max in the percentage that they can rise for the life of the loan.

A quick example of this would be as follows. Lets say you have a 2/28 loan and the interest rate is 7% with caps of 3% and 6%. So with the first cap being 3% it can only rise a maximum amount of 3% per adjustment. The second cap of 6% is that the interest rate can only rise by a maximum of 6% for the entire life of the loan. So the worse case scenario is that your interest rate would rise from 7% to 13%. But remember it can also fall as well.

I refer to these types of zero down mortgage as band-aid loans. It gets you into a house and at the end of the 2 or 3 year period you can refinance. Hopefully at this time you are now a conforming borrower and you will qualify for a fixed home loan at a lower interest rate.

The seller can typically pay 3% of the purchase price of the home towards closing costs with a conforming loan. With a sub-prime loan the seller can typically pay 6% of the purchase price towards closing costs.

VA Loan: The VA is 100% financing and has no mortgage insurance. Unfortunately you will need to be a veteran to qualify for this zero down mortgage.

The good thing is that this type of zero down mortgage is underwritten on a case by case basis. So even if you don't have great credit or have other issues such as not having any credit at all, you still have a good chance of getting one of these loans.

Seller can pay all closing costs.

USDA Rural Housing: These 100% loans were once known as farm home loans. They offer zero down mortgage financing and are also underwritten on a case by case basis.

To qualify for one of these zero down mortgage you normally need good credit, but not always. All collections and charge off's will need to be paid. The property can not be located anywhere the USDA (United States Department of Agriculture) deems urban.

There are also income limitations with this program as well as certain criteria that the home must pass.

Seller can pay all closing costs.

Emerging Markets: This is another awesome zero down mortgage. This program is especially useful for home buyer's who have limited or no credit at all. Through this program they allow you to build alternative credit through other bills such as an electric bill, phone bill, rent etc.

There are some income limitations to this loan depending on where the home is located. The income limitations are higher than those with the Rural Development Program.

Seller can pay up to 6% of sales price towards closing costs.

State or Local Financing: Some states also offer a zero down mortgage. These loans come and go depending on funding. They are definitely worth looking into.

For example Oregon has the Oregon Bond Loan.

The requirements for these types of loans will vary but they will be more strict than some of the other types of 100% financing that are available.

You might need to do some footwork for this type of zero down mortgage. You may be surprised to find that your loan officer has never heard about these programs. Because these loans are government sponsored you will need to call, write, or go down to your local government offices. Below are some other government agencies you can contact for special programs.

HUD/FHA 451 7th St. Washington, DC 20410 www.hud.gov

Fannie Mae 3900 Wisconsin Ave. NW Washington, DC 202-752-7000 www.FannieMae.com

Freddie Mac 8200 Jones Beach Drive McLean, Virginia 22101 www.FreddieMac.com

When you contact your local government agencies about the zero down mortgage. You should also ask about special purchase programs they may be offering as well. Many times government agencies will work with several of the local contractors to build affordable housing.

Basically the government gets a special rate from the contractors and then will subsidize the remaining amount to offer the homes at a much lower cost. For example a home may be worth $125,000 but the government will sell it for only $85,000 to those that qualify.

You can also contact you local building associations to find out about other special programs that they may be involved with. Just look in your phone book for state or local builder associations.

FHA Loan: The FHA loan is not actually a 100% financing loan. They do require at least a 3% down payment. You can use down payment assistance programs to cover the 3% plus your closing costs.

Most people are under the assumption that the government is the one loaning the money. In reality they are insuring the loan in case of a loss. So if you no longer made the payments and the house was foreclosed upon the government pays the lender off and takes the home.

This program allows lenders to loan money to people that would not normally qualify for a home loan. There are housing price limits as well as strict guidelines with this type of loan

About the Author: Matthew Allen is a mortgage consultant with Action Brokerage Services, Inc. in Medford, Oregon. He is also the author of "How To Buy A Home With Zero Down, Even With Damaged Or No Credit".

Tips and Tricks You Should Master Before Buying A Home

2006-10-18T13:16:00.000-07:00

by Sinta Makah

This interesting article addresses some of the key issues regarding real estate. A careful reading of this material could make a big difference in how you think about real estate.

See how much you can learn about real estate when you take a little time to read a well-researched article? Don't miss out on the rest of this great information.

If you are taking the next step in life and purchasing a home, chances are that you are feeling the pressure and the anxiety that goes along with this difficult decision. Those who buy homes are very anxious, eager to get any information they can about real estate. Before you buy a home, it always helps to learn all that you can.

The first thing you'll need to do when buying a home is to find out just how much you can qualify for or afford to borrow. You should also make it a point to check your credit and know where you stand. If you have any problems, you should strive to correct them for you attempt to borrow money for a home. The higher credit rating you have, the lower your interest rates will be.

If you can, you should always attempt to get pre approved by a mortgage broker or lender, as this will show your commitment to the mortgage. Also make sure to look for any payment or prepayment options that can help you take a few years away from your mortgage. Once you have been pre approved for a mortgage and know where you stand with your monthly payments, you can start shopping for property.

When you shop for a home, you should only buy real estate that is perfect for you. Before you start looking, you should always make a list of everything you want your home to have, based on what you want and what you actually need. You should also make sure that you mark out any areas that you are willing to come to a compromise on, just in case you have to.

To assist you with finding the perfect home, you should enlist the services of a reputable real estate agent. When you meet with your agent, you will go over how much you are willing to spend, and what type of home you are looking for. You're agent will know where ideal properties are, and help you find the home that is best for you.

Your agent will supply you with a list of potential properties that meet your budget and your features. Once you get the list, you should drive by the homes and check out both the home and the neighborhood. You should consider the appearance and location of the home, safety, access to the freeway, schools nearby, commute time to work, local shopping, and even recreational activities.

If you don't find something that interests you the first time, you should keep looking until you find the home that is best for you. Your agent can help with tours of homes and such, even tell you information about neighborhoods that you aren't familiar with. If you have chosen a good real estate agent, he will care about helping you find a home and go out of his way to ensure that you get exactly what you want.

To get the most from buying a home, you should always hire a real estate agent that you can trust. Your agent will go a long way in helping you buy a home, from finding properties to giving you pointers and tips along the way. Good real estate agents will care about your satisfaction, and will do all that they can to help you find the home of your dreams. You can always buy a home without a real estate agent, although it will take you longer and you won't get the help and other amenities that a real estate agent will bring to the table.

Now that wasn't hard at all, was it? And you've earned a wealth of knowledge, just from taking some time to study an expert's word on real estate.

About the Author: Sinta Makah

Real Estate Training

Fixed Rate Mortgage vs. Adjustable Rate Mortgage

2006-10-02T18:55:00.000-07:00

by Andrew Poletto

I'm sure the question "Why should I get an Adjustable Rate Mortgage when I can get a 30 year fixed rate at XX interest rate?" has been asked about a zillion times ever since the two types of mortgage were pitted against each other.

Of course, no matter what anyone ever says or does, there will always be advantages and disadvantages on both sides.

One HUGE advantage the ARM has is all the different sub-products that come under that category. For instance the 3/1 ARM and 5/1 ARM, just to name a couple. The fixed rate does not have these sub-products. Traditionally speaking, you have 3 basic fixed rate products: 15 year, 20 year, 30 year. (I'm sure some will say there are others, but let's just keep this to a traditionally speaking level)

Then along comes this Pay Option Arm thing that totally throws a big monkey wrench in the "Fixed Rate vs. ARM" argument.

Why do I say this? The simple answer is because this product totally takes away one of the biggest arguments people have against the ARM, "I don't know how much my monthly payment will go up or down. I don't like the uncertainty of the ARM payment concept." You see, with the POA, the payment can be figure exactly TO THE PENNY (worst case scenario), for the next 5 years and with some products up to 10 years. So the guess work is now out of the equation.

Now, with the POA a whole new debate comes up, the one about Deferred Interest (sometimes referred to as Negative Amortization). I won't get into a lot of details here, (you can get more details at www.realmortgagetraining.com) but Deferred Interest, if understood properly, can be utilized to be a HUGE advantage to the borrower. In a nutshell, Deferred Interest gives the financial leverage advantage back to the borrower without sacrificing payment uncertainty.

It is totally the borrowers choice to have negative amortization. If the borrower chooses to do this, then other financial aspects of his/her life should be benefited. Unfortunately, because of the way the POA is sometime explained to the borrower, this is not the case.

It is our job, as mortgage professionals, to make sure the borrower gets the correct information about the POA. This next statement is one most brokers have a hard time with, so I'll say it loud and clear...

Unless you are licensed to do so, YOU CANNOT TELL ANY BORROWERS WHAT DO TO WITH THEIR MONEY! WE ARE NOT FINANCIAL PLANNERS. DO NOT GIVE FINANCIAL ADVICE!

Our job as brokers is to make sure our borrowers fully understand the type of product and program we sell them, not give them financial advice.

Again, some brokers will debate that with me, but unless they are properly licensed to do so, there is NO DEBATE.......PERIOD!

Once you realize this, you can develop a good relationship with someone who IS properly licensed and both of you can pass referrals back and forth. This isn't rocket science folks.

The reason I bring all this up is because lately I've had several borrowers come to me saying they got this POA deal a few years ago and they weren't told about the Deferred Interest stuff. Most of these folks have a POA tied to the LIBOR index. If you look at the charts, you can see that the LIBOR has increased dramatically in the last few years. Don't get me wrong, I'm not knocking the index, I'm disappointed in the brokers that sold the borrowers that mortgage product without explaining the ups and downs of the product. It has now put a lot of pressure on the brokers that do understand the product (and indexes) to "fix" the mentality of the borrowers that have a misunderstanding of how beneficial the POA actually is.

Which brings us right back to the question "Why should I get an Adjustable Rate Mortgage when I can get a 30 year fixed rate at XX interest rate?" The answer, we won't know until everything is explained properly and then determine what best fits your situation.

Andrew Poletto www.TheMortgageJoint.com

About the Author:

Andrew is the author of the ebook The ARM Factor: The Guide to Understanding and Selling the Pay Option Arm. He has been in the mortgage business as a broker, manager, and trainer. His work can be seen at www.RealMortgageTraining.com

5 Useful Tips in Selling Your House

2006-09-02T14:35:00.000-07:00

by Ester Rebecca del Fierro

Selling a house is a very serious matter. These days, it has been a dilemma whether or not to sell your house, either no one will buy it or someone will but the transaction will not be favorable to you. Any how, you will not be satisfied with the probable outcome. It is a challenge to look for someone who will buy your house since houses today are very expensive.

You must have some guidelines to help you decide how to sell your house. Here are some:

1. Know your target buyers

If the house you're selling is big, then your target buyers should be families. But if it's just a small space, then don't sell it to someone who has 4 kids. They will not feel comfortable in the house, and the tendency is that they will not stay there for good and will be looking for another house big enough for them.

2. Check all the damaged parts of your house

Don't trick your buyers by hiding all the damaged parts of your home. If something needs to be repaired or replaced, then you have to do something about it. Don't lie and pretend that the house is in good condition when it is not. Also, be prepared to accomplish everything on your own. If we're talking about major renovation, then ask help from someone. Carpenters will be a big help in this situation. But if the damages are few and stunted, then you can do it alone because it will save you lots of money.

3. Be informed of the things that will sell your house quickly

Where is the house situated? Is it near the mall? Is it near the school? Is it near the park? Is it in the city or in the suburb area? What colour is your house? Is it pleasing to the eyes? Is it very dark? You have to consider all these questions so that you can sell your house quickly.

4. Inquire services from a professional home inspector

Get the opinion of a professional home inspector so that they can give you an idea if the house is already okay to sell. Inspectors will give you reports on the over-all structure of the house you're selling and give you possible risks or hazards.

5. Let a professional Realtor guide you

This will be much better if you have a friend who is in the field of real estate. If you're not trained to sell houses, then might as well ask a professional realtor to guide you so that you will not be on the losing end. Ask some tips regarding marketing, negotiating, and convincing buyers in buying houses.

Selling your house can be the worst nightmare you will ever have since this is not an easy job. But if you know how to do it right and you have a guide to follow, then everything will be manageable. After a good transaction, you will be very pleased with the outcome because everything turns out smooth, favorable to you, and of course the family who bought your house has a beautiful place to live and stay in.
About the Author

Ester is one of the SEOs of http://www.ozfreeonline.com and takes care of the Ozfree Online Real Estate Page where in it offers a comprehensive list of office & commercial real estates, homes for rent or sell and an apartment finder to thousands of properties in Australia. For more information, visit http://realestate.ozfreeonline.com.

How To Find The Best Properties When Investing In Real Estate

2006-08-09T15:38:00.000-07:00

by David Gass

There are many dreams and emotions attached to buying a home. It is important that you keep your eyes and ears open to catch the best deal amidst the crowd of real estate sellers.

The three most common ways to look for an estate are:

1.Contacting the estate agents.

2.Looking in the newspapers.

3.Getting information about new estates being constructed.

However, this is not all. There is bit of homework that you need to do before going out hunting for your dream house. Decide What Kind of Home You Want Does the new home have a garden or a garage? Is it near your kid's school? Do you want a sophisticated bathroom, or maybe two bedrooms? Decide whether you want a new house or one in which people have resided before. Does the house need renovations? Give these things careful thought before investing.

Get familiar with the buying process. There is no place for ignorance in real estate trading. Although you need not be a financial wizard, at least be familiar with the basic information to avoid being fooled by swindlers. Moreover, getting the wrong information is worse than ignorance. Some of the common misconceptions about buying real estate are:

Renting a home is cheaper than buying one.

Only permanent residents of America can buy a home there.

A large down payment is required for a mortgage.

Choose a Suitable Real Estate Agent It is vital that your real estate agent is reliable. The agent should act your interest, be able to empathize with your needs, and listen to you. It would be better if the agent resides or works in the area where you are planning to buy a home.

The real estate agent is a professional who knows the pros and cons as well as the process of real estate investment. Your agent should render you sincere advice and be equipped with information about the surroundings, transportation facilities, and real estate prices.

Your agent may also assist you in getting a pre-approval on a mortgage. This helps you to know the expenses that you will have to incur and the monthly payments.

Have a Financial Plan A financial plan guides you in spending as well as saving money in the buying process. It helps in mortgage applications, credit checks, and closing costs. Your agent can help you get into the financial details.

You can also find your dream house by interacting with people, browsing the internet, looking for sale signs around your city, or better still, placing an ad in the newspaper that you are looking for a property to buy. The agents will start calling you.

About the Author

David Gass is President of Business Credit Services, Inc. His company publishes a free weekly e-newsletter on Small Business Consulting at their web site http://www.smallbusinessconsulting.com

4 Quick Tips About Sub Prime Lenders

2006-08-09T15:16:00.000-07:00

by Ben Afzal

Subprime lenders are lenders that focus on people with bad credit or challenging credit.

Knowing how they work with bad credit can save you thousands when doing a mortgage refinance or a real estate purchase.

Subprime Lenders

Subprime lenders focus on lower credit situations. Often times they are specialized branches of larger lenders that focus on other borrowers.

Because they are used to dealing with challenging credit situations they are more likely to approve loans for people with lower credit.

Many lenders will not show much flexibility on their loan programs and don't approve certain lenders. Sometimes the reasons can seem trivial, but their loan guidelines simply do not let them approve certain types of borrowers or circumstances.

Subprime Loan Programs

These lenders can often have very aggressive or unusual loan programs.

Some subprime lenders can deal with people who have late on their mortgages repeatedly by 30 or 60 days.

Some subprime lenders can deal with people who are 90 days or more past due on the their mortgage.

Collections

Some subprime lenders will work with people who have a lot of outstanding collections.

Often times lenders will insist that as part of your refinance the lender directly pay off some or all of your bad debts. Borrowers are often not fond of this, as it lowers the cash they get from the refinance.

Sometimes these bad debts that are listed on their credit report are there incorrectly, or people are on the hook for a loan they co-signed. Sometimes people end up paying off a car they co-signed for a sibling or kid (and that person who has the car uses it but doesn't make the payments and doesn't tell the co-signer either). It happens.

Some subprime lenders will not require you to pay off all the bad debt or most of it. Some of them will cap the amount they require you pay off in bad debt. This can help keep more of your refinance money in your pocket.

Subprime Lenders and Other Options

Some subprime lenders can handle borrowers with recent bankruptcies and credit that has been impaired because of messy divorces.

There are a wide range of different subprime lenders out there. Sometimes they don't have the right programs, but if you have enough equity in your property than a hard money lender may be able to help you instead.

About the Author:

Ben Afzal is the President of Archer Pacific, a mortgage company. His firm works with homeowners and real estate investors to provide them the mortgage solutions they need. http://www.archerpacific.com/

Process of carrying out a 1031 properties exchange

2006-08-04T14:42:00.000-07:00

by Joushua James

1031 properties exchange is a property exchange wherein the owner of the property gives up one or more relinquished properties for one or more replacement properties. According to Section 1031 of IRS the properties exchanged must be of the same kind and such an exchange will enable the property owner to defer the payment of federal income taxes and some state taxes.

In order to carry out the 1031 properties exchange transaction, you need to consult a qualified intermediary. Here you need to compare the services, costs, and references of several Qualified Intermediaries before selecting one. I t is vital to select a proper Qualified Intermediary because the work they do is essential to the success of the exchange. Your Qualified Intermediary must be someone who is efficient, experienced and most importantly someone whom you can trust.

The process of such an exchange is started first by preparing a contract which states the exchange. It is very important to word the contract carefully and it must explicitly state that you are going to sell or purchase real estate with the intention of performing a 1031 exchange.

The next step is to identify the "Replacement Property". This is the property you intend to get in place of the property you have sold. You are given a period of forty five days to do this task, This time period starts from the time you disposed the property you wanted to relinquish and during this period you can identify up to three properties for such an exchange.

You can ask your qualified intermediary as many questions you feel is necessary to understand about the exchange process. The list of replacement properties prepared by you must be sent to your qualified intermediary. Remember the IRS offers no flexibility on this time period which is up to a period of forty five days. Once you have identified the property, you should close the deal on the new property within 180 days of the closing on the relinquished property.

You or your agent should stay in contact with the intermediary, keeping them advised regarding closing dates. They will be responsible for most of the paperwork associated with the exchange, and may have specific lead-time or other requirements for each step of the process.

Once the property exchange process is complete the qualified intermediary will return to you all valid documents related to the replacement property.
About the Author

Joushua - 1031 Properties Exchange

Getting Your Home Listed on the Multiple Listing Service

2006-07-02T15:52:00.000-07:00

By: Stu Pearson

Getting your home listed on the multiple listing service (MLS) used by realtors all over the country, you are gaining access to thousands of realtors, brokers, and thus their customers who are ready to buy. Basically, whether you are using a realtor or selling on your own, getting listed on MLS is a must. Most home buyers begin their search on the internet, so this listing is absolutely crucial to getting proper exposure for your home.

There are many options for getting on the MLS. If you hire a realtor, he or she will get you on MLS immediately. Realtors know the exposure that comes from the listing and that is why they spend the money and time to have access to it for viewing and listing as well. The listing does not really cost you, but you will be stuck paying as much as 6% commission on the sale of your home.

The best way to save money is to get your free MLS listing online. How, though, can you do that? The answer, to be simple, is that it depends. It depends on what kind of home you are selling, where you are selling it, and what is going on with the local market. So, then how do you get your free MLS listing online?

First of all, if you are selling an investment or vacation property, you can get free listing on MLS in most cases. As opposed to private residential properties, MLS allows the investment and vacation properties to go up with no fee.

Secondly, do some research about the area where you are selling. In some cases, if the market conditions are right, there will be free listing available for certain states or certain municipalities. Ask about your area or research it online yourself. If you are in such an area, you have to do nothing more than logon and get your property up.

Another way of getting your free MLS listing online is to look for trial listing options. Sometime, if you keep your eyes open, you will find that there are times when you can list for free for a couple of weeks. A couple of weeks may seem short, but it really can be long enough to get you the exposure you need. If you happen live in a popular area, that two weeks could even be more than enough. So the key is to pay attention for deals and trial offers.

Getting your free MLS listing online can save you a lot of time, a lot trouble, and a lot of money. If, rather than getting your free MLS listing online, you were to pay for a flat fee listing, it could cost you nearly a thousand dollars to do so. If you chose to go the way of hiring a realtor, you run into the problem of having access and being listed, but having to pay a hefty commission on the sale of the home once it is done. So look for a deal, and find a way to get yourself listed for free on MLS if only for a short time. It will be worth it.

Stu Pearson has an interest in Finance, Business & Technology related topics. To access more information on car donation or on donating car to charity, please click on the links.

Wisconsin Real Estate – Making The Dairy Land Look Good

2006-06-11T15:25:00.000-07:00

It might surprise you, but Wisconsin is home to one of the highest rated and most in demand towns in the United States. More and more people are starting to realize the Dairy Land is a good place to live.

Wisconsin likes to promote itself as America's Dairy Land and it isn't far off. The state has a strong rural, farming influence. This leads to friendly people and communities living at a pace of life you will not find in more stressful states such as New York and California. Wisconsin, however, does hold a gem of a small city within its borders.

Madison is the capital of Wisconsin and home to the University of Wisconsin. A sleepy college town for years, Madison has long offered a great way of life. National publications started noticing it a few years back and it is regularly listed in top 10 rankings for desirable places to live in the United States. The reputation is well earned as Madison manages to have all the amenities of a large city while maintaining a small college town field. Madison gets a big thumbs up from us.

If you prefer living in larger cities, Milwaukee is as big as it gets in Wisconsin. It is located on the shores of Lake Michigan and is roughly 90 miles from Chicago, a city with which it maintain a natural rivalry and love-hate relationship. Over the last few years, the city has undergone major redevelopment and upgrades which is making it an attractive place to live after long periods of stagnation and decline.

The Wisconsin real estate market is vibrant and compares with any in the country. A single-family home in Madison will set you back roughly $160,000 while the same home in Milwaukee will run you roughly $110,000. Appreciation rates are a steady six to seven percent across the state.

All and all, Wisconsin offers a both a good place to raise a family and real estate market you can afford. The Dairy Land has never looked so good!

Raynor James is with the FSBO site - FSBOAmerica.org - homes for sale by owner.

Reasons to use a Wisconsin Buyer's Agent

2006-03-19T06:33:00.000-08:00

Your Buyer's Agent will suggest an offering price or give you an opinion about whether a particular Wisconsin property is priced correctly.

Your Buyer's Agent will offer a critique of a seller’s property beyond disclosing defects and will look for adverse material defects for your benefit.

Your Buyer's Agent will help you write the offer with your best interests in mind.

Your Buyer's Agent will help find information about the property’s history and liens so you can make an informed decision.

Your Buyer's Agent will give you advice within the scope of expertise as a licensed Real Estate Professional.

Your Buyer's Agent will help you in obtaining financing.

Your Buyer's Agent will inform you of local real estate market conditions.

Your Buyer's Agent will help you negotiate the purchase and assist you in the transaction to help you get the best possible price.

Your Buyer's Agent will provide honest treatment, loyalty, confidentiality, and financial accountability.

Your Buyer's Agent will structure the offer with your best interests in mind.

A Buyer's Agent is almost always a free service; this is because the Buyer's Agent is paid from the Listing Agents commission. In the end a Buyer's Agent will save you time and money.

Wisconsin Realty Solutions - Real Estate Services

2005-02-28T12:03:00.000-08:00

Wisconsin Realty Solutions is a real estate advertising entity that connects real estate consumers with qualified Wisconsin Real Estate Agents to help ensure a smooth transaction. Our company offers many services to help people buy and sell properties in Wisconsin.

Free Buyer's Agent Services:

Wisconsin Realty Solutions offers a free Buyer's Agent service to help real estate consumers find, purchase, and negotiate real estate transactions. All the consumer has to do is tell their free Buyer's Agent a detailed description of the property that they are searching for. Our Buyer's Agents will search the Multiple Listing Service and contact other Realtors to find the ideal property. Then the Buyer's Agent will walk the consumer through the buying process.

Property Listing Services:

Wisconsin Realty Solutions offers a unique listing service to people that want to make the most of their home sale. We send two Real Estate Agents from different companies their home to complete a Comparative Market Analysis. A Comparative Market Analysis is the process Real Estate Agents use to determine the best selling price for a property. They compare the property to others that are currently listed, sold, or pending sale. These two Listing Agents may differ in services they offer. The services that may differ include property marketing tactics, commission rate, and they may both think that the property is worth a different amount. Then all the consumer has to do is decide which Real Estate Agent would benefit them more.

If you would like to take advantage of our services, search google for the part of Wisconsin that applies to your needs. You can also visit our web site at www.WisconsinRealtySolutions.com.