Buying a house is a major decision that has to be looked into very carefully. It is a major step and before one settles for it they have to have considered various things first. One has to know exactly what they want determined by different reasons. These reasons include the size, price and location. Here is a guide on what to fulfill before settling for homes for sale.

When all these have been considered then the funding source will have to be considered too. Most people take a mortgage in order to buy a house. If this is the case then one has to be aware of what credit they have at that particular moment. This factor will be a major determinant in the way forward.

After that the amount that shall be advanced for the loan will be established. This will be arrived at by the amount that can be repaid each and every month. The interest rate will be calculated in addition to it and it has to be a reasonable sum at the end of the day. If the loans will paralyze other expenses then one has to re consider taking it.

If the whole interest and repayment deal is not making any sense you can seek the help of a financial adviser. They will explain everything as to what will be expected and so on. After getting everything explained in a way that you understand, every bit and aspect as well as consequences then get the loan approved. If the whole deal is not one that you are comfortable you may leave it for a while and seek other options.

There are several agents out there. It is not enough to get just any one to market a home for you. It has to be a reliable and honest agent. Get a list of potential candidates. Seek referrals from friends and family. Narrow them down as per their terms and conditions as well as billing. Sign contracts before you begin working with them. If any of their clauses are unclear ensure they make it clear first.

Give them a list of what exactly you want to get from the purchase. Most agents have various places and they will be willing to show a good number at a time. You will look at them and try to narrow down your choices. Compare the pros and cons of each house so as to arrive at a sound decision.

Before setting out to make the purchase have a good amount of knowledge on real estate. With that knowledge no one will misinform you as a buyer. The process will be less complex too. Keep track of all what is happening and do not get too excited with some offers before looking at everything that is being offered. Agents are quite convincing and you have to be firm so as to get exactly what you want instead of getting convinced to go for something else.

After making a choice read through the purchase agreement. If there are terms that had been omitted and will make some differences then do not sign it till you are sure that it is OK. If it is not clear you may seek the help of a lawyer. Seal the deal when you are completely satisfied with the choice of homes.

Find Pickering real estate agents for your family with professional broker who is familiar with local houses for sale Ajax market to ensure your satisfaction.

If you’re confused with which option to stop foreclosure, then the following short sales vs foreclosure information will help you make the right decision.

I know that you are not thinking clearly because you’re worried about foreclosure & your family becoming homeless, having trouble sleeping at night due to worry, feeling stressed about making the wrong decision, feeling embarrassed your neighbors may find out, fear about getting a bad credit score & foreclosure appearing on your credit report. You would not be a human being if you were not having trouble thinking clearly with your state of mind clouded with so many concerns and worries.

Are You Sure You Understand Clearly… What Is A Short Sale?

It is one of your options, so when your property is sold, the money the lender gets from the sale is less than the balance you owe on the mortgage debt balance. So if you cannot afford to re-pay back the total liens, the holders of the liens will release it and accept the reduced amount that you currently owe on the house.

What Are The Tax Consequences Of A Short Sale?

The amount that’s being taxed is the forgiveness amount on the mortgage or the difference of the mortgage and the property’s final selling price. This is considered income by the IRS and a 1099 form from the lender will be provided after the short sale transaction.

There’s an exception which is called the Mortgage Forgiveness Debt Relief Act of 2007 which terminates this tax up to two million dollars which applies only to residential owner occupied real estate. For married couples who do their taxes separately, the limit is split between them. If someone does not qualify for this, the bank may agree to report the forgiven amount as a gift. In this case, the short sale cannot be taxed by the IRS.

Another alternative is to file for… bankruptcy or liquidation…!!!

How Does A Short Sale Work? – 7 Steps Short Sale Process

* You must contact the bank to discuss the policies and procedures.

* You must compose a letter to release documentation about the loan and the property. This information is distributed to the buyer and the escrow agency.

* The lender will examine the settlement statement which entails the selling price and what is left of the loan balance. Closing numbers such as commissions, fees, and expenses are included.

* You have to submit a hardship letter which will describe your financial problems. It is a good idea to refer to some short sale hardship letter examples to use as a guide before composing yours. It should be short (a few sentences) and not lengthy for easy reading. Make the reader feel the extreme anxiety as to why you can no longer afford the property. So it’s imperative to build a strong case. Most importantly do not blame the lender. Remember the goal is to request assistance and not to offend.

* These documents include banking statements, investment portfolios, employment paystubs and other financial records.

* The lender will consult with the broker to evaluate the structure of the house and how much it’s worth when comparing it to other properties.

* The lender will examine closely that the purchase agreement and commission amounts are agreeable to all the parties.

How Does A Short Sale Affect Your Credit?

If your credit score is important too you and wish to protect it at all cost then… this option is a safer bet for you since it is not as a serious as, when the bank forecloses on your property. The FICO score damage to your credit report is less.

Example: Your FICO can drop between 50 to 150 points Versus 210 to 420 points for a foreclosure

10 Advantages To Doing A Short Sale

* Top benefit is – Debt forgiveness which is when there is no monies owed after this transaction. For example, if your home is worth $200,000 and it’s sold for $100,000 the left over amount is cancelled by the banks. Also, what’s eliminated includes closing costs, taxes and other fees.

* You don’t have to pay rent or make mortgage payments during the short sale process

* You’re in the driver seat not the lender

* You’ll avoid the embarrassment and your credit report showing a foreclosure

* You can be up to date with your mortgage and still do a shortsale

* Your home will be sold like any other home in your neighborhood… it’s your secret

* Credit Score Damage… is less (FICO drops 50 points – 150 points Vs 210 to 420 for a foreclosure)

* Deficiency Judgement – can be avoided by making sure your lawyer or realtor has negotiated with your lender in writing to not come after you to collect the deficiency balance owed after you sell your property

* You can get Tax Forgiveness based on the Mortgage Forgiveness Debt Relief Act of 2007 (Note: Consult with a professional first accountant, IRS, to make sure yours will be forgiven.)

* You may qualify for some cash as a closing incentive. These cash incentives range from $2,000 to as high as $35,000 paid by some banks, HAFA, FHA (hud) to short sale your home. You can use this money you receive at closing for moving and relocation costs in addition to whatever you save up while you
didn’t make payments to the bank.

* You’ll end up with a lower living expense related to rental payments which will be less in most cases.

Disadvantages To Doing A Short Sale

* Cannot stay and save money as you will be expected to move out as soon the deal closes

* Potential tax consequences if you borrowed against your principal and used the funds for some thing else other then house related expenses, once again consult with a professional short sale lawyer, accountant to make sure you will not have to pay back taxes to IRS.

* If you have multiple lenders who may have a lien to your property is can make it extremely difficult to do a successful short sale. Make sure you check to see if you have more then one lender if so… slow down and consult with your attorney again to see if it is worth it to do the short sale

* A foreclosure can take six to twelve months, credit scores have a greater negative impact, and the waiting period of purchasing another home is five to seven years. In a short sale, the process can take one to six months, the penalties on the credit scores are less severe, and there’s a greater chance of purchasing a future home by re-applying for a new mortgage within two years.

2 Advantages To Letting The Bank Foreclose On Your House

You can stay longer in your property as opposed to a short sale. Save the money you would paying to your lender, you pocket it and save it to move out to your next new apartment with your family and start over with the least amount of hardship if you have some money at least to move on with your life after foreclosure.

3 Disadvantages To Letting The Bank Foreclose On Your House

* Top Disadvantage – associated with foreclosure is what it does to your credit score rating. A house foreclosure will appear on your credit report because it is a loan with the mortgage lender. As a result, for any credit in the foreseeable future, a financial institution will be able to see that you had a foreclosure which will remain on your credit record for at least 7 yrs.

* When the mortgage lender actually sells the house and is sold at an sum less than what is due to the lender, you are liable for this difference. If you are unable to pay the difference, then you may have to file for bankruptcy also.

* A foreclosure will be handled as a very serious blemish on your credit history. You will have a harder time getting a lender to lend you money to buy a house or even other personal items. Bottom line your credit history is “Killed” with one powerful shot.

* Job hunting will become more difficult. It is a known fact that potential new employers will look at your credit history background, in addition with some employers if they see a foreclosure on your record some employers will reject your application immediately regardless if you are the best man or woman for the job and position.

How Long Can You Stay In Your House After Foreclosure?

This differs state to state but in some instances it can be as long as four months to one year until the individual is forced to vacate indefinitely. This procedure in New York State falls under two categories which is judicial foreclosure and non-judicial foreclosure.

Judicial Foreclosure – Is when the lender filed a complaint against the borrower and obtain an order of sale from the court.

Non Judicial Foreclosure – Lender not required to file a complaint in court, is given authority to sell and foreclose quickly.

Which Of These 12 Foreclosure Alternatives Did You Skip Over That Can Hurt You?

* Refinancing is a challenge for the borrower having limited equity and poor credit.

* Reinstatement can make a loan current by paying the amounts due.

* Short term forbearance allows for the termination of up to three payments or a decreased amount until six months. When the forbearance time period is over, the seller must comply on a longer repayment plan to catch up on those payments missed.

* Long term forbearance is very similar to short term forbearance with a few exceptions. This is designed for severe neglect and permits a reduced in payment for four to twelve months

* Special Forbearance can schedule a repayment plan depending on the vendor’s financial portfolio. There may be a temporary decrease or postponement of the seller’s payments. The individual must have experienced a current unintentional cutback in income or living expenses have increased. Documentation must be submitted as proof.

* Deed in Lieu vs short sale – When a seller may be able to willingly return their residence to the lender. This may not salvage the home, but will assist their probability of obtaining another mortgage loan in the future. The owner can qualify under these guidelines: if they have not been paying and do not qualify for any other options, their attempt at selling the dwelling prior foreclosure failed, and they do not have another FHA (Federal Housing Administration) mortgage in default

* Cash Sale relies on the owner’s equity. This occurs when the seller gets cashed out on the residence and the whole thing is paid in full. The property needs to be given at a discounted amount so it can be a worthwhile investment.

* Repayment combines past due amounts with regular monthly payments

* Modification is when the owner and the mortgage company will have a written agreement which modifies some of the stipulations of the note

* Another strategy to stop foreclosure is to make an attempt to come up with a portion of the money to apply towards the shortage which is called the contribution figure or the good faith payment. The monetary amount is between thirty five to fifty percent of the total amount that’s needed to bring the loan up to date. This tip proves to the lender that you’re interested in having the loan in good standing.

* Consult with a foreclosure defense attorney

* Real estate investors who buy houses for cash

* ” Special Program Options ” Not well known & experts don’t share. Call Pandel Enterprises 718-577-2782

10 Ways You Can Reach Out For Foreclosure Help

* U.S. Department of Housing and Urban Development (HUD) Telephone: 1-800-569-4287

* Neighbor Works Spanish or English Call 1-888-995-HOPE

* National Community Reinvestment Coalition (NCRC) 202-628-8866

* National Council of LaRaza (NCLR) NCLR may be the biggest national Hispanic civil privileges and advocacy organization within the U.S. 202-785-1670

* Neighborhood Assistance Corporation of America (NACA) 1-888-302-NACA

* Fannie Mae’s HomeStay Program 1-877-722-6757

* Freddie Mac ” Don’t Borrow Trouble Program ”

* Nation’s Association of Consumer Advocates 202-452-1989

* Home Ownership Preservation Foundation

* Project Lifeline Initiative Contact Your Lender To See If They Offer It

There’s a wealth of information here and no one is expected to know everything overnight. These processes are complex, but with the appropriate real estate professionals working on your side, this anxiety provoking area should be clearer to comprehend and answer your question on why should I short sale my house.

Note: The information provided in this article is not meant to replace legal professional advice from attorney. This is article is meant to be a guide and to help you sort out quickly & easily the best option between the ” short sale vs foreclosure ” option. Before you make any decisions after reading this article you should seek advice 1st with a real estate attorney or a free foreclosure assistance – non profit organization.

To get your Free Report Now ” How To Sell Your House Fast In A Slow Housing Market ” click here http://www.webuyhousestristate.com/free-report/. Discover more educational articles dealing with foreclosure – click here now Short Sale vs Foreclosure!

Many landlords like to offer their homes as furnished to entice tenants with the prospect of moving into a ready-made home. But did you know that there are regulations that must be adhered to with regard to rental furnishings? Your furniture and furnishings must meet fire safety standards in order to conform with The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended 1993). If your furnishings do not comply, you may face a fine or even imprisonment, in the case of fire and/or harm to tenants caused by unsafe goods at your property.

Furniture and Furnishings

Whilst most furniture and soft furnishings manufactured in the UK after 1990 meet current fire safety standards and will have a permanent label confirming this, some may not. And if you’ve supplied items that were manufactured abroad, we strongly advise you to take a close look at just how fire-safe they are. These include:

• Three piece suites, armchairs and sofas
• Scatter cushions, seat pads and bean bags
• Beds, padded headboards, mattresses and pillows
• Convertible sofa beds and futons
• Loose and stretched covers for upholstered furniture
• Nursery furniture and garden furniture suitable for indoor use

If you even suspect that an item may be a fire hazard, remove and replace it before your tenants move in. Carpets, curtains, bed linen, duvets, loose mattress covers and furniture manufactured before 1950 are all exempt from regulations. But, as above, follow your instincts – all tenants want to feel safe, protected and secure during their tenancies.

Is my furniture fire-resitant?

In order to be deemed “fire resistant”, all furniture must pass various tests that guarantee that it is fire safe. All post-1950 furniture must have:

• Covers which cannot be set alight by a lighted match
• Covers which do not ignite if a smouldering cigarette is placed on them
• Filling materials which can pass a standard ignitability test
• Labels that prove that the item complies with the regulations Both the filling and the covers must comply with the regulations because the toxic fumes from ignited fillings can be a cause of death.

If in doubt, check for the labels! All fire-safe furniture should have them.

The risks

If your furniture does not comply to these standards, you could face:

• A fine of £5,000 per item failing to comply
• Six months’ imprisonment
• Prosecution by your tenant for civil damages
• Invalidation of your property insurance
• And even potential manslaughter charges in the event of death

These regulations will be enforced by local Trading Standards.

How to comply

• Buy from a known, reputable retailer
• Always keep your receipts as proof of purchase
• Be aware that furniture stores have a duty to comply to these regulations
• If in doubt, speak to Trading Standards or don’t buy!

As a landlord, you are obliged to show “due diligence” – which means to ensure that you have taken all the steps you can to make sure that your furniture meets these safety regulations. Otherwise, you run the risk of being charged as above.

Don’t take the risk!

Julie Twist Properties offers a full furniture and furnishings service. We’ll create the look and feel you want your rental property to have whilst ensuring that every item complies with safety standards. Just give us your brief – from trendy to traditional – and we’ll do the rest. We’ve even got statistics to prove that a property furnished by us finds tenants faster!

Julie Twist Properties has rented and sold property in Manchester City Centre for the past 20 years, and is a leader in the market. Julie won Estate Agency of the year in 2005 and has been on the judging panel in London ever since. Apartments in Manchester City Centre are her passion. Julie Twist Properties offers a full Rental Management service, taking care of all aspects of your Let for you.

Many people who have government-related jobs need to have security clearances. These jobs are dependent on the people employed to be of the highest moral character because of national security issues. Even local and national law enforcement agencies can be very strict to various degrees about the background of employees.

The employee applying for a job that requires a background check knows that it could take months or longer for his approval. A comment by someone from his past could derail his chances for the job. While these background checks are not perfect, they are an essential part of many government-related jobs.

The financial services industry and insurance carriers are also on the band wagon for scrutinizing potential clients’ or employees’ credit history. While bad things do happen to good people, these institutions and the government have set up criteria.

One of the sticking points of these security checks is whether an individual is financially stable. While checking a credit report, an employer can see if the prospective employee has had a bankruptcy or foreclosure. If this is the case, the candidate will be passed over or, if he is lucky, delegated to a less responsible position.

The mortgage crisis has caused a lot of good people to have bad things happen to them. Most simply bought or refinanced a home at the height of the real estate market and are faced with a property that is worth half or less than they paid. While they are making their payments, they have to question the basic financial decision of whether it makes sense to continue or let the bank take the property back.

Another major group of individuals has lost their jobs, run through their savings and gone into foreclosure. For these people with security clearances, they face the risk of losing their grade or rating because of a pending foreclosure. This lost of “security status” can be devastating because it can take two years or longer to go through the process and all the while the candidate is working in a lower paying position.

The solutions to this problem are to face it head-on and not hide the issue if the employee has a job. The first step is to contact his superior and discuss the problem and show that the loan was sensible at the time it was gotten and that all possible steps have been taken currently to resolve the problem. The burdensome financial obligation that has resulted has to be shown to be in the process of some type of resolution.

The standard resolutions are to sell the property and take a loss, do a loan modification with the lender, rent the property and put in the negative cash flow monthly or do a short sale. Many people take the path of least resistance and keep making mortgage payments they can’t afford, rent the property and take a smaller loss each month or try for a loan modification that is at best, a postponement of the inevitable.

Short sales are becoming more and more popular because they eliminate the financial burden immediately and in most cases do not impact one’s security clearance. The reason is that the homeowner will not be burdened by continuing financial debt. A short sale is where the lender takes a principal reduction on the mortgage balance due so the property can be sold at current market value.

If the lender decides to foreclose, he is faced with trying to sell to the market and face the issues of an empty property that can be vandalized and is a financial liability that impacts the lender’s cash requirements. Therefore, many lenders ask the homeowner to try a short sale so they don’t have to foreclose and lose more money on the loan.

The principal amount the lender has reduced the loan balance and the costs to do the short sale can be either taken back as a personal note to the homeowner, turned into a deficiency judgment for future collection, charged to the homeowner in the form of an IRS Form 1099 C, or written out by the lender as an uncollectable bad debt.

If this situation occurs, most homeowners won’t sign a personal note because they are uninformed about the collectability of this note. The “value” of the note is similar to credit card debt and can be made much more comfortable over the pending payback. The homeowner should not consider a bankruptcy unless he also has substantial other debts to write off.

Consult with a bankruptcy attorney for specific information on whether you qualify and what steps have to be taken to benefit you the most. In addition, your accountant or CPA should be your source of what effects your actions will have on your income and any current regulations that will help your situation.

In summary, the best attack on the problem of keeping a security clearance is to look at doing a short sale. When concluded, the homeowner’s credit is affected but to a substantially lesser degree than a bankruptcy or a foreclosure. This process should substantially reduce security clearance reviews that result in downgrades and potential loss of your job.

In summary, before you do anything, check with the department who runs these security checks and explain your pending issue. Losing your clearance could result in losing your job and another two years to regain it back. Otherwise, your option is to continue making a burdensome mortgage payment or renting the property to reduce the monthly loss or do a shorts sale which should not affect your clearance.

Dave Dinkel has over 35 years experience in real estate investing which has given him a unique perspective into the real estate market. http://www.DaveDinkel.com is the place to interact with Dave Dinkel. You can read some of the latest informative Real Estate articles he has written. Here you can discover and educate yourself on topics ranging from foreclosure, For Sale By Owner(FSBO) Sales, Credit and much more.

Chances are if you’re reading this, you know a thing or two about the Internet and understand the role it plays in today’s marketplace. Selling a home is much different today than it was even 2 years ago; sellers have more choice of services in the form of DIY tools, they are more informed about the marketplace, and new gadgets, communication mediums and technologies have arisen. Some REALTORS® have been adapting to (and surpassing the limitations of) these changes, other’s haven’t. Agents should have exceptional answers to all of the following questions. If they don’t, ask yourself “is this agent and/or brokerage going to provide me with the best possible service and market my property to the widest possible audience?”

1. How will you market my property online?

You’ve heard this statistic before and the figure is increasing by the day: over 90% of buyers search for properties online before taking further action. How will your property stick out from the crowd? Will it be accessible to the maximum potential pool of buyers? What is the agent doing that is different from others?

2. How do you stay in touch with me and other agents?

Is the agent carrying a laptop, tablet and/or smart phone to every appointment? Will he have the time and resources to respond to your and other agent’s requests while on the road? Realtors spend a lot of time in their cars – their mobile office and ability to access information anywhere, anytime is crucial!

3. How do you transmit agreements and other written correspondence?

Via fax is the wrong answer here. It may seem like a small consideration, but deals can get snagged up over something as simple as illegibility or missing pages. Also keep in mind that your lawyer probably charges by the hour; don’t let her spend extra time scrutinizing an agreement due to the fact she needs a magnifying glass to read it. It’s nearly 2012 folks; by now all agents should be transmitting documents via PDF files over secure FTP or encrypted email systems. Furthermore, at the end of the deal, wouldn’t it be nice to have an electronic copy of all documents (as opposed to a messy file folder with wrinkled pages, covered in coffee stains)?

4. What special tools do you use that will help me as a buyer or seller?

Every agent claims to have a trick up their sleeve – a unique method or tool that no one else has access to. This is fine, but does this really add value, and is it something you could get access to yourself on the internet? Ask your agent if he uses proprietary technology such as GIS (mapping & measurement), CMA (market knowledge & analysis), cloud computing (information sharing & distribution), mobile targeting (text and QR codes), eCRM (automatic updates to her pool of buyers), and more. You might not know what half of those things are, but your agent darn well should.

5. I understand that technology is a big part of your business, and that’s great, but do you employ traditional methods as well?

My grandfather, a very wise man, always likes to remind me that “face to face wins the race, phone and mail take second place.” Despite my urging that you choose an agent who has entered the 21st century with confidence, you should also look for someone who is personable, punctual and a competent negotiator. A fistful of gadgets are worth nothing if your agent doesn’t have the professional and people skills to back himself up. That said, here is my litmus test suggestion. Initiate correspondence via email, and if the reply is quick and friendly, pick up the phone to see what he’s like on the line (his number is in his email signature line, right?). If he passes this second test, move onto the third – a face to face interview. You’ll know soon enough if this is the sort of agent who likes hiding behind a computer screen instead of going out and publicizing your property to real people in real environments!

Colin Crowell is a Realtor® specializing in residential listings & first time buyers with RE/MAX Banner Real Estate, the Annapolis Valley’s leading brokerage

Chat LIVE now with Colin! He is available to answer your questions about buying or selling real estate. No obligation, just friendly, helpful advice! Go to http://www.colincrowell.com/ and click the “Live Support” button in the bottom left-hand corner of the page.

Since we have started converting and acquiring additional properties using the Rent To Own strategy and sharing/teaching our ideas with other investors, we get asked this question all the time…. ‘why don’t you buy cheaper homes and rent out the upstairs and downstairs?’

Yes, that is another way of investing. Neither style is wrong, we have tried them both. We just like to share with you what has worked for us successfully and has had the least amount of headaches. The first step is to ask yourself a few important questions then decide.

What type of tenants are you trying to attract into your home? Depending on the type of home you choose, this could attract different types of families. In your mind you may think a detached 1200 sq. ft. home may be more desirable than a town home that is 1700 sq ft. But the reality is people prefer space. Purchasing a smaller home may attract families with no more than 3 people only, vs. a larger property that can attract all types of family dynamics.

What type of area do I want to buy in and how important is location? Many investors want the lowest price they can find for their investment property. Purchasing a home in a less desirable part of the city will attract a less desirable type of tenant. If you find a beautiful home- in a beautiful neighbourhood- you will find tenants that are more stable and are more likely to purchase the home at the end of the term.

What’s the turnover rate for your strategy? High turnover in your tenancy is usually a good indicator of unstable renters. This could vary from low income/no income to those individuals personal situations. Rent to Own looks at income and job stability. You are not trying to attract students, tenants on unemployment or on government assistance.

Is there an incentive for them to appreciate and care for the home? If you choose location over purchase price, this automatically gives you leverage to increase the monthly price of the rent- over market value. For example, if market rent (in the area) is $1400, our tenants will expect and to pay $1500-$1600- because of the location.

Are they stable in their lives and jobs? For the most part yes- many of our tenants make over 6 figures- but only claim a quarter- if they can prove they earn the amount necessary to afford the rent- they can have the option to become RTO tenants. They understand they have 3 years to claim more income, so they can take ownership at the end of the term.

Other things to keep in mind when you are purchasing an investment property:

Curb appeal: What feeling will your prospective tenant/buyer have when they see the home from the street? Will they feel proud when their friends and family come over? Remember this, ugly homes repel good tenants.

Condition: How old is the home and have the major wallet breakers been upgraded? We prefer newer homes and we want to make sure the furnace, roof and windows are all in good condition. Guess what… so do your tenants moving in. Trust me, it’s less work and maintenance.

A good neighborhood: The ideal tenant will want to live in a home in a nice area. If they feel they are in a neighbourhood where they feel safe and their kids can play, you’ll attract the right tenants to your home.

At the end of the day, either investment strategy will work, it just depends on how much work you want to do and how many cash producing properties you want to own with the least amount of phone calls?

Gary Hibbert is a Canadian Real Estate investor. He uses a very smart and proven Rent to Own technique that provides a win win scenario for both the investor and the tenant. His technique of buying beautiful homes in beautiful neighbourhoods has proven to be a great concept and strategy he share with others investors. Visit Gary and his team at http://shcinvestor.ca

With the current economic woes still playing a key part in the condition of the real estate industry, a lot of people who are looking to invest need education in real estate investing. The industry can be potentially very profitable to an investor, but the importance of learning about how to successfully invest in properties can certainly save and gain lots of money for investors. There are several ways to go about gaining the education needed, including courses, seminars, lectures, and personal tips from experienced investors.

Several online schools and mentoring services exist to help people get a better education in real estate investing, allowing them the opportunity to gain an understanding of all the risks and rewards it brings. Professionals all over the Internet are offering to give hopeful and aspiring investors the best advice possible in investing and trading to make money. Much of the education in property investing stresses the need to stay ahead of the curve, as it is like all other businesses in that competition can be fierce and falling behind can be very costly.

Those who are interested in getting into the business of property investing can benefit from educating themselves in the business, whether informally or formally. Education will hone their ability to assess risks and minimize their losses. With education and knowledge, they can quickly identify opportunities and act appropriately when those opportunities arise.

Any aspiring property investor stands to benefit a great deal from becoming familiar with terminology, as well as reading as much as he or she can on property investing. Simply put, education will help any investor sound and look professional. After all, would you trust an investor who does not seem to know what he or she is talking about or does not even look professional?

It is also important for any investor to have the aptitude to learn and use new technology related to the business. Technology and software are invaluable tools in helping any investor to make up-to-date and informed buying and selling decisions.

Several different strategies exist for maximizing the returns from investing in real estate, and the more you learn the better chance you have of returning a profit. Nearly all education methods will stress that having as much information as you can possibly handle about the real estate market will make it much easier to target which investments are the most well founded.

When you have education in real estate investing, you’ll be better equipped in your real estate dealings, enabling you to analyze opportunities and decide quickly. For more information, Real Estate Investing Guru Review.

Copyright © Sherry Ann Smith

If you are a new REALTOR® or just getting started in your Real Estate Career, you have limited time to get your name out there to start generating leads. Because Real Estate Commissions are not paid until properties close, that means you are doing business now that will actually pay you months down the road.

If you are brand new in your real estate career, this could mean an early exit from the industry if you can’t get any deals done right away. Not having leads early on can put a lot of pressure on you and quickly change your overall outlook on this wonderful sales industry.

A quick way to let everyone know about your switch to a new and exciting real estate career is to use an Introduction Letter!

I have read many posts suggesting that the real estate introduction letter is dead and that it shouldn’t be used anymore. I agree that with the advent of social media technologies, that the introductory letter may not be used as much, however I feel it still can be a very important piece in launching your new real estate career!

Let’s face it, we don’t have time to waste in the first few months. We need to generate leads now! If people don’t know we are in the business they will look for help elsewhere. So why not let them know that we are here for them and see if we can help them with their Real Estate Needs now!

Your objective with this introduction letter is to let your sphere of influence know that you are in the business and to offer value on an ongoing basis. After all, by providing Value is what will separate us from all the other Real Estate Agents out there! We need to be different, we need to stand out from the crowd.

The more Value you can offer, the more clients you will retain. Why would anyone switch Agents when their current agent is providing everything they need?

I have included a sample introduction letter please visit my website at the bottom of this article to get your free sample. Please feel free to use it and modify it as needed for your business.

Make sure you include your contact information on all social platforms as well. We want to make it easy for potential clients to find us. So add your Facebook, LinkedINN and Twitter accounts as well as your Website.

Even if you are not new to the industry, you can still use an introduction letter. Instead of saying that you are launching your new Real Estate Career, mention that you are starting a new Marketing Plan and lay out how you are going to stay in touch with them.

The key is to stay in touch! You need to contact everyone once your letter has gone out. Make sure they’ve received the letter and don’t forget to ask them if they know anyone who may be thinking of making a move and needs your services.

Good luck!

As always, comments are welcomed and encouraged. Thanks!

MARTY GREEN

P.S. This post is brought to you by www.realestatecareermentor.com Please sign up for our FREE newsletter with more great updates and Real Estate training info on how to make sure you achieve all your Real Estate Goals.

Marty Green

http://www.realestatecareermentor.com

Selling a property can be both difficult and frustrating at the best of times. The current global economy and turbulence in the property market has made the process of selling a home even more difficult and even more stressful.

Almost every single area of the country have been adversely effected by the lagging economy and stagnant property market conditions, as a result a seller must make a careful assessment of the pros and cons of their property before they even consider putting in on the market.

One of the most pressing and important question that needs to be answered right from the off is establishing the best time of the year to sell.

Your location carries some influence as buyers are less likely to buy during cold, wet weather (winter months). Potential buyers will be put off by the bad weather conditions and buying a new home will not be seen as a priority to them, that not to say you cannot sell your property at this time of year, but just there will be fewer potential buyers in the market compared to a warmer time of year.

Finding a good estate agent is without question one of the most important aspects of selling your home, but beware – decent, efficient and hardworking estate agents aren’t as easy to come by as you may think. This is where time must be taken to learn more about the agents in your area, try and go on recommendations from friends and family and look for an estate agent with a proven track record for selling property quickly and efficiently.

Due to the increase of homeowners trying to sell their properties, coupled with falling house prices nationwide, there is an over abundance of homes on the market at present. It is without question a buyer’s market. Nevertheless, this market is also plagued with potential pitfalls for the unprepared buyers. Many homes that are up for sale have not been properly processed meaning the buyer may find themselves stuck in the undesired position of a legal dispute and could potentially end up losing a lot of money in the process.

Although the current housing market may make for grim reading, all is not lost. The best thing to do therefore is to make the most of your estate agents knowledge, experience and expertise. They will know from their own past and current experiences when they have had the best sales run during the year and consequently when most sales are achieved (the best time for you to sell!). They will be well aware that the marketing for the properties is ongoing and that photos of the properties look their best when the foliage is out in full bloom and the skies are blue and sunny, as this is what appeals most to a prospective buyer.

In conclusion, the best time of the year to sell a house is usually from the early spring to the late fall. There are exceptions and this isn’t to say that selling a home at a different time of year is not possible, but this is a good rule of thumb to remember and consider. Your estate agent should be working extremely hard for you fining potential buyers and interested parties, if they are doing their job properly – as you should be making sure they are – there is no reason why you cannot achieve the home sale you desire. Whatever the time of year!

Ryan Harley is an experienced property consultant who works with the Essex Property Buyer group to provide fast, effective solutions to homeowners in Essex who need to sell their property. Ryan, when not helping clients to Sell House Fast In Essex helps to educate and advise others on property related issues.

What Are Private Lenders

Private lenders are people that lend money to investors so they can buy investment properties. Typically they are doing so to get better returns on their money than the stock market or other forms of investment have provided. The terms and details of each loan are up to the individual lender. In our experience, private lenders typically offer easier access to funds, lower interest rates and fees, and an all-around easier experience than typical financial institutions and hard money lenders.

Difference Between Private and Hard Money Lenders

The difference between private lenders and hard money lenders is basically just the terms each offers. Hard money lenders are named so due to the fact that their terms are usually much harder on us. The loan fees are usually several points (a point is 1% of the loan amount) and I have heard of some charging upwards of 7-8 points! Ouch! The interest rates are usually high as well. Typically, they charge between 15-18% interest rates. Many hard money lenders are in business to be just hard money lenders. Private lenders typically are just doing so for better return on their money as a side investment.

Where Do You Find Potential Private Lenders

When looking for private lenders, there are a couple of groups of people to consider:

Family and Friends With Money

The first is family and friends that have some money they might be willing to invest. Just make sure that you approach people that have enough to lend on a typical house that you would consider buying. You should only have one lender per property.

There are also a couple things to consider when approaching this group for lending. You need to carefully consider the fact that the person that lends money for your deal may run into a unexpected problem and need to pull the money out of the deal. This is definitely something that needs to be considered and understood before proceeding. The other issue is that most people consider it a bad idea to work with family or friends. If a deal turns into a dud and you lose money, what are you going to do? Where does it leave your lender? Be careful with this. Even if you use an institutional lender, you should always repay your debts no matter what, but when working with family and friends the consequences could be much worse.

We approached several family members and friends when we were getting started. All wanted to help, but most were too conservative to actually commit. This may be different now that we have been flipping houses for almost a decade successfully.

Private Lenders Already Lending To Investors

The other group to approach is the one that is more likely to agree to lend on your investment properties. This is the group of people that already lend money to investors for properties. These guys are perfect because they already know how good these types of investments can be and only need to be convinced that it is ok to lend to ‘you’. You won’t be selling them so much on the deals as you will be selling yourself. I’ll explain how to do this in a later section.

There are several ways to find these lenders:

Ask other investors for lenders they use or know of.

The difficulty here is that most investors don’t want to share their private lenders because of the limited funds available from each. You never know though, you might get lucky. If you don’t ever ask, you will never find one. Keep a spreadsheet with names and numbers of potential lenders, their contact info, who recommended them, and their terms.

Do some investigating.

This is what we did and I feel this is the single best way to find potential lenders for your real estate investment deals.

Here’s what you do:

Scour the MLS for recently sold REO’s (bank -owned foreclosures) and other fixer upper properties that were likely bought by investors. If you don’t have access, ask a Realtor to do this for you or let you use their system, with their supervision. You should have a good Realtor on your team anyway. Search for more recent sales. Within the past 6 months should be fine. It is important to find lenders that are actively lending. Your search should include areas that you are interested in investing in because the lender will have already shown an interest in lending in that area.

Find the ones that were sold with a loan. You will probably have to check your county records (most are online now) to see if there was a deed of trust or warranty deed with vendor’s lien filed for the property for the recent sale. The recorded docs should have a name for the lender and the address where the original document was sent after being recorded. Write down this info.

You will start to see some of them appear again and again. These are the real prime suspects. You will want to try your best to work with these guys.

You should also keep track of the names and addresses of people that bought investment properties and paid cash. These are a good source of investors to birddog leads or wholesale houses to. Keep track of the area the house was bought in for each investor. You now know they like that area.

Making Contact With A Potential Private Money Lender

Once you’ve created a list of potential private money lenders, you will need to find a way to contact them. Our preferred method is to write a letter to them. The letter usually just states that I am an investor in the area and I am looking for people interested in receiving a good return on their money, secured by real estate. You should also briefly mention how you found them and why you decided to contact them. This is usually something they are curious about anyway. I’ve found that many of them will actually consider it a good sign that you are a true go-getter and have what it takes. The letter goes on to mention that they should call me so that we can discuss it further.

As far as SEC guidelines goes, you should be fine as long as you don’t use words like “guarantee” and talk about any specific deal in the letter. You also need to stick with using one lender per deal (no comingling of funds). Just be general about your discussion of providing a better return on their money and to call so that you can discuss it further.

When they call, try to make small talk and ask if they have been lending on investment properties for a while. Try to set up a lunch meeting with them so that you can talk more in depth about what you are looking for.

Your First Meeting

This is where I want to mention the importance of your level of confidence. It is of utmost importance that you exude confidence and make it appear that they need you more than you need them. You should try to make it seem like you are interviewing them and that the acceptance to work together is up to you. This might take a little work, but makes all the difference in the world.

To help you with this, just consider the fact that you will (if you want to) be offering them 10% interest on their money AND it will be secured with real estate that is worth a lot more than how much they are lending. THIS IS AWESOME AND YOU NEED TO UNDERSTAND THAT IT IS. They should consider themselves lucky that you are offering this to them. Don’t ever doubt that.

You should obviously be at a point where you have educated yourself on real estate investing and flipping houses. Do not attempt to meet potential lenders before having done so. You are asking them to lend large sums of money and you’d better know what you are talking about.

Things To Bring

Business Plan – You should have a business plan, even if it just describes what types of properties you buy, that you intend to improve them through rehab, you sell with the help of a Realtor, etc. Just the basic process of buying and then selling and what types of profit margins you look for. What kinds of things will cause you to walk away from a house purchase.Maybe some insight into the real estate market in your area to show that you keep up with it.

If you’ve done some deals be sure to have some before and after rehab pictures and as many details you can provide about timelines and the numbers for the deals. Lenders love this. It shows that as you are prepared and it shows them exactly what will be happening with the money they lend.

If you have not done any deals, try to arrive with some potential deals and your analysis for each. I will talk about what we did before we had done any deals in a later section.

Money to pay for their meal. You’d think this would be obvious…

How Their Money Is Secured

To help them feel safer with the investment, make sure to let them know that their loan will be secured with a first lien deed of trust. Some lenders will want a personal guarantee if you buy your properties using an entity such as an LLC. I’m certainly trustworthy enough to make sure that my debts are paid even if things go sour, so I do not hesitate to give them this. Your title company should be able to have an attorney draw these up for each loan.

You will want to buy your properties far below market value. We suggest at least 70% of market value minus cost of repairs. This should be explained to the potential lenders to help them understand that if they did have to take the property back, they would have an asset that is valued quite a bit above what they had into it.

What Terms We Usually Get

This is another time where you need to remember how good of a deal you are offering them. If they ask for a certain interest rate and points, NEGOTIATE WITH THEM. I have a feeling that they actually like to see this. Trust me. They want to know that you are a real businessman or woman. This gets back into you being the one that is controlling the situation.

The terms that we typically get are 10% interest with “interest only” monthly payments and a 1 point loan fee. The loan is usually for 9-12 months with 1 point being required for an extension (though this should not be needed). We get loans to cover the purchase, repair costs, and sometimes the payments as well.

What We Did Before Having Done Deals

When we started, we would have had a hard time approaching private lenders to work with. It can be done and should not be considered impossible. Realistically, it is best to work with a money partner or work with hard money lenders. There are national hard money lenders but I feel it would probably be better to work with local ones. One of the benefits to working with hard money lenders or money partners (that are also investors) is that they may keep you from investing in a bad deal. If no one wants to put their money into the deal, it probably isn’t a deal.

We started by working with a money partner. He was our mentor and had been investing in real estate for around 20 years. We did all of the work, including finding the deals, negotiating the deals, rehabbing the houses (using contractors), selling the houses and the whole nine yards and he put up the money. We split profits 50/50. This was great when we started because the only thing we risked was our time. No money out of our pockets (except for some marketing expenses). I highly recommend this method of getting started. You really limit your risk.

Conclusion

Now that you know how to find and approach private money lenders you can start saving yourself tons of interest and fees that you may have been paying using hard money lenders. If you are flipping houses you need to get out there and start building relationships with private lenders.

Danny Johnson is a real estate investor in San Antonio, TX that operates a blog that teaches how to flip houses – FlippingJunkie.com. He is currently allowing people interested in learning how to flip houses to follow along as he shows how he and his wife are marketing for motivated sellers, analyzing the leads that come in, talking to the motivated sellers, closing the deals, rehabbing the houses with before and after pictures, and selling the houses for profit. Check out the blog to follow along.