Property Estate Online

If you have watched any late night television lately, you will have heard of flipping a home even if you did not hear it called that. But does flipping a home really work?

The idea of flipping a home refers to the practice of buying a home usually at a cost somewhat under market value and then quickly selling it again at market value to make a quick profit. The property can be priced at under market value for a number of different reasons. One reason is that it is need of certain improvements and repairs in order to make it worth the potential true market value.

When this is the case, the purchaser will have the repairs and improvements made and will recoup this expense when he sells the price. Although this will reduce his profit a bit, the improved property should sell easily and the cost of most, if not all, of the repairs can be recouped as part of the new sale price.

Another method of purchasing properties under market value is through foreclosure sales. This is where the owner of the home is about to lose the property anyway for inability to pay the mortgage payments. The owner is willing to take less than market value in order to make a quick sale that will save at least part of his investment in the home. There are always properties on the market at discounted rates for alert investors to purchase and then flip.

A lot of debate rages around the practice of flipping homes, but this controversy does not really have much to do with the value of the process to the investor. What is really the issue is how the practice of flipping impacts the neighborhoods where the properties are located. Although this issue might not be of any interest or concern to a potential flipper and does not really impact his chances of making a good profit, it is still comforting to civic minded investors that the arguments that the procedure actually is good for the neighborhoods are strong and valid.

The basic point is that improved and repaired properties tend to raise the value of the surrounding properties as well. As long as the flipper is practicing ethical and legal principles in his transactions, he might well be helping other home owners and revitalizing stagnant neighborhoods while making a nice return on his own investment of time and capital. Flipping homes certainly does work as an investment possibility.

View fsboamerica.org FSBO homes at FSBOAmerica.org.

The building of new homes has fallen to the lowest level in nearly two years, according to the Commerce Department on Wednesday.

Housing starts fell 2.5% for July to 1.8 million on a seasonally adjusted annual basis. This marks the fifth decline in housing starts in the last six months. It is also the lowest level seen in construction of new homes since November 2004.

Economists had expected a decline, just not as large as today’s report indicated.

Building permits fell drastically in July, by 6.5% to 1.75 million units. This is the largest drop seen since September of 1999. Building permits are an indication of future construction activity. Permits are at the lowest level since August 2002.

The Commerce Department also revised June’s housing starts downwards, to an annualized rate of 1.84 million, down from 1.85 million.

When compared to one year ago, housing starts are down 13.3% for July.

The confidence of US home builders has continued to fall, according to the National Association of Home Builders. At 32, confidence is at the lowest level since 1991.

Economists agree that the housing market is changing. The debate continues as to the size of the decline and the potential impact to the economy.

Martin Lukac represents RateEmpire.com RateEmpire.com and 1AmericanFinancial.com 1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Real Estate Negotiation

When writing a purchase contract, avoid expensive terminology such as paying a buyer’s closing costs, and of course you should watch out for all the contingencies that could cost you time with your home off the market. If the buyer wants to close on the sale contingent with the selling of his or her house, include a kick-out clause that will allow you to back out of the contract within seventy two hours if you receive an offer that does not contain contingencies

Buyers vs. Sellers Market

The first job before making a contractual offer is understanding the housing market that is working in your local area. This will help you determine how quickly you need to buy when looking at homes.

If you happen to be in the buyer’s market, you will of course have plenty of time to find and search out several homes in different areas and price ranges before you negotiate best possible price.

If you happen to be in a seller’s market, things are different, you may have a very short time to make and write an offer before your house slips away!

Buyers Market - The real estate market has more sellers than it has buyers and time is on your side! You will find plenty of homes that you can visit, and even revisit again for comparisons, before you negotiate favorable contract terms.

It would be very advisable to run a CNA, or comparable neighborhood analysis on homes that you have visited before making your offer.

Items you should compare include:

• The age and the condition of similar homes in the same neighborhood

• The homes that are sold within the last six months in the same area.

Finally, there are hundreds of quality books regarding negotiations tactics out there that can help you receive maximum value for your property.

John Ford is the found Ford Realty Inc., a Boston are real estate agency. He’s participated in hundreds of real estate deals in the Boston area. He maintains a real estate blog at fordrealty.org/blogs/ fordrealty.org/blogs/ He can be reached by email at mailto:realtyford@yahooo.com realtyford@yahooo.com

In 1867, United States Secretary of State William H. Seward signed an agreement with Russia in which the United States purchased the territory of Alaska from them. Almost immediately this act was widely referred to as “Seward’s Folly” in light of the vast wasteland that was Alaska…and that the US paid the huge amount of $ 7.2 Million.

But hold on, if you breakdown the purchase price of $7.2 million and divide it by the number of acres purchased, the entire purchase amounted to less than 2 cents an acre. Pretty good for those days and especially good now today when real estate values have soared. Where else can you get a bargain like that?

Well there are places now that you can even do better. You can get land in Alaska…and the other 49 states, all free. Yes, a small company named American Acres, Inc has found a very unique way to provide the American dream of land ownership free. Well, at least an affirmation of that dream. Let’s say you want to own land. Well how about starting with a single square inch plot? Yes, a ONE-SQUARE INCH PARCEL!

These “‘mini-estates”, which of course are available for each state, can’t be built on, lived on or retired on; Owners cannot make any improvements or develop the parcels. Owners shall not occupy the parcels and must grant rights of ingress and egress over their parcel. But they are completely free of additional responsibility and obligations. And the fun of bragging about owning land in the United States is priceless, to say the least!” And oh, what a wonderful gift it makes!

Although use of the land may be limited, the responsibilities (as one would hope) are equally minimal. No paying taxes of any kind…ever! Owners need not mow their lawn, take out the trash, throw away junk mail, participate in local jury duty, or endure any other daily adversities associated with being a land owner.

So, it has been asked, “What is the purpose of owning a one square inch of land…anywhere?” “What can I do with such a tiny piece of earth?” Well, if you don’t have a sense of humor…or an imagination, then these personalized gifts…legal, yes legal, Deeds to each state just aren’t for you. They are the perfect gift for the person who has everything. It’s the most wonderful unique gift idea for a person who dreams of living in, say California…or Hawaii, or yes, Alaska…or anywhere where they don’t live now.

It’s great for all gift giving occasions including Mother’s Day, Father’s Day, graduations, birthdays, Christmas, etc. In fact you might want to get a Deed to the United States - one Deed that entitles you to ownership of one square inch of land in all 50 states at once (there is a fee for this 50 State Deed).

By the way, did you know that Alaska’s Population is 626,932 in 2000, it’s capital is Juneau, located in the southeast region of Alaska, which has a population of 30,684, its nickname is “The Last Frontier,” the state fish is Giant King Salmon which weighs up to 100 pounds, the state motto is “North to the Future,” the state tree is the Sitka Spruce, and Alaska entered the Union as recently as January 3, 1959.

What’s really odd is that in 1862, Congress passed the revolutionary Homestead Act that sent thousands of Americans west in pursuit of free land. The catch; you had to live on the land you claimed.

And that in 1977 the Homesite Law provided for “free land” with provisions similar those of the federal Homestead Act; you had to live on your land.

Also in 1984, the Homestead Program was initiated; residency in Alaska for one year prior to filing as well as having to live on the land and “work it.”

Then in 2007, on March 18th, free land in Alaska was offered by the town of Anderson, AK in an effort to increase the population of the town; the prize; 26 lots, 1.3 acres in size. The catch of course, you had to live on it.

Now this offer is the latest: “There’s Free Land in Alaska” from American Acres, to Internet Homesteaders who sign up. The catch; you cannot live on the land. Why? Each lot is only 1 square inch in size.

So it seems that American Acres, Inc. has found this very unique way to provide the American dream of land ownership to almost everyone by giving away “mini-estates” in Alaska and, in fact, to all the other 49 states in the USA as well. The land is being made available through their website and ownership will be verified instantly via an online process and an optional email deed.

Scott Moger, an Internet entrepreneur and freelance writer who has been published internationally, has been writing about ownapieceofamerica.com ownapieceofamerica.com and ownapieceofamerica.us ownapieceofamerica.us for several years. He is the president of American Acres, Inc. the company that actually owns the land these websites are promoting. E-Max, Inc. is another company he is associated with as president. E-Max owns VeryCleverGifts.com VeryCleverGifts.com. He occasionally writes under the nom de plume of Jonathan Plight and/or Jack Torrington.

“Cash is King”, so they say, and investor would be wise to keep an adequate cash reserve for things that can go wrong in real estate, particularly rentals. It is easy to buy real estate with no money down, but it’s difficult to survive when you have no cash set aside for a rainy day.

There’s no magic formula you can use to determine how much you should keep in reserve in the real estate business. When I have rental properties, the four key factors I consider are strength of the local rental market, eviction time line and cost, the age of the property, and the type of neighborhood.

Strength of the Local Rental Market The lower the vacancy rates in your area, the fewer reserves you’ll need for vacancies. Your local newspaper or your city’s housing department may have articles or statistics on vacancy rates. You should, at a minimum, have enough cash reserves to pay for one month of vacancy per unit, which is only an 8-percent vacancy rate.

Even in a good market, you’ll deal with problem tenants who may stop paying rent and require an eviction. Good tenant screening will help solve this problem. If you plan to rent properties, you should always,

without exception, do a rigorous background check on tenants. This includes reviewing credit reports, employment verification, references, and calling current and previous landlords.

Eviction Time Line and Cost The length of time it takes to evict a tenant is relative to your cash reserves. In pro-tenant states like New York and Massachusetts, it could take months and thousands of dollars in legal fees to evict a tenant—all while you’re paying the mortgage. In addition, in our experience, collecting back rents or damages from tenants who’ve been evicted can be futile.

Age of the Property With newer and recently renovated properties, you won’t need to anticipate many repairs in the first few years. As noted earlier, we recommend that you always hire a professional property inspector before you

buy. Inspectors will go through the property with a fine-tooth comb, which helps ensure you’ll have no surprises later on. Another thing to keep in mind is that many utility companies offer a fixed monthly payment option so you don’t experience payment swings each season if you’re paying for heating, water, or other utilities as the landlord.

Type of Neighborhood If you’re renting properties in low-income neighborhoods, you can expect the turnover to be much higher than in high-income areas. In addition, multiunit buildings with small units and one-bedroom condos will attract more single people who tend to move more often than families.

Cash flow management is the bedrock of survival in any business, with real estate being no exception. Investors must be careful not to run out of cash or they will be soon out of business.

William Bronchick, CEO of Legalwiz Publications, is a Nationally-known attorney, author, entrepreneur and speaker. Mr. Bronchick has been practicing law and real estate since 1990, having been involved in over 1,000 transactions. He has trained countless people all over the Country to become financially successful, speaking to audiences of as many as 16,000 at “Get Motivated” events sharing the stage with names like Rudy Guliani, Steve Forbes, and Colin Powell.

His best-selling book, “Flipping Properties,’ was named one of the ten best real estate books of the year by the Chicago Tribune.

William Bronchick is also the author of the highly acclaimed books, “Financing Secrets of a Millionaire Real Estate Investor”,”Wealth Protection Secrets of a Millionaire Real Estate Investor”, and his latest work, “Defensive Real Estate Investing.

William Bronchick is the co-founder and President of the Colorado Association of Real Estate Investors. He is admitted to practice law before the bars of New York and Colorado.

Before you sign your new mortgage loan, be sure that your lender or mortgage broker has disclosed their annual percentage rate (APR) and their terms. Lenders are legally required by the Truth in Lending Act to disclose the cost and terms of your financing package before you sign any final paperwork. If a lender refuses to reveal this information, you should find another lender who follows the legal process.

Asking About APR

When you begin shopping to refinance your mortgage, you should ask about the APR along with other fees and rates. The APR includes the total interest, points, and other fees. The APR allows you to make a quick comparison between lenders. However, your APR could be higher if you wish to pay points for lower interest rates.

You can call up individual lending institutions to request this information or use an online mortgage broker. With their websites you will receive offers from several different mortgage lenders. They will list out their rates and fees. You may also find better deals on closing costs or interest rates since online lenders have reduced overhead.

Requesting Terms

Federal law requires all lending institutions to disclose loan costs and terms before you sign for the loan. Most of the time, lenders will send out the paperwork with your application, but some financing companies wait until the settlement period.

Once you have your loan terms, review them carefully. The mortgage terms will include information on finance charges, payment schedule, and APR. You also have the right to cancel your loan within three business days after settlement or receiving your Truth in Lending disclosures, whichever occurs last.

Inquiring About Application Refunds

While you have the right to rescind on your home loan, you may forfeit your application fee depending on the lender. Application fees for processing your loan usually total $100 to $200, which is paid with your application. All other loans fees are required to be refunded if you cancel your loan within the three days of closing.

Some lenders do not refund application fees if you cancel or are not approved. Before you apply, it is best to ask about refunds along with rates and fees.

To view our recommended mortgage refinance lenders online, visit this page:
abcloanguide.com/refinance.shtml Recommended Mortgage Refinance Companies Online. You should be able to find a mortgage refinance company online
that will work for you.

Carrie Reeder is the owner of abcloanguide.com ABC Loan
Guide, an informational website about various types of loans.

Debt ratio

Your debt ratio is the amount of debt you have in relation to your monthly income, expressed as a percentage or fraction. If your income is $4,000 and your monthly debts equal $2,000, your debt ratio is 50%.

The higher your debt ratio, the higher your interest rate. If your debt ratio is under 36%, including both your monthly debts and your mortgage payment, you should be in a position to command the lower rates. Ratios in the 40% range and above will bump your rate up. Ratios above 45% and into 60% can push you into the subprime mortgage world, where the rates are substantially higher than conventional mortgages.

It’s an unfortunate paradox that mortgage companies charge higher rates with higher debt ratios. A higher rate equals a higher payment, which equals a higher debt ratio.

Type of mortgage

The type of mortgage you apply for will affect your rate. In general, a fixed rate mortgage has higher rates than an adjustable rate mortgage. Between fixed and adjustable mortgages are hybrid mortgages that have both characteristics. A 3/27 mortgage, for example, means that the interest rate is fixed for the first 3 years. After that, it becomes an adjustable mortgage for the remaining term of the loan. This type of mortgage is great for people who might look to move before 5 years. It’s also great for those rebuilding their credit. You can take 3 years to rebuild while the rate is fixed. Before the mortgage becomes adjustable, you can refinance into a fixed rate with your newly-rebuilt credit.

The hybrid’s interest rate will fall somewhere between a fixed and an adjustable. Sometimes, however, you might be better off going with a fixed rate loan at a slightly higher rate. The rate difference between the two might only add up to a savings of $20 to $50 per month. You’ll then have the hassle of refinancing in a few years, which could cost you more fees.

Term of mortgage

The term of your mortgage, or the number of years that your mortgage is in effect, affects your rate. Usually, a 15-year fixed-rate loan will have a lower rate than a 30-year fixed-rate loan.

Negotiation Skills

Believe it or not, interest rates are not set in stone. In many cases, they can be negotiated. In the first part of this article series, we discussed the “par” rate. Lenders work off the par rate to determine how much interest to charge you. Sometimes they will charge you anywhere from 1% to 2% above par, depending on what they think they can get away with.

If you can somehow get the lender to divulge the par rate, you can try to haggle the interest rate down to that level. It’s akin to seeing the invoice for a new automobile and using that as your negotiating target. While you likely won’t get the actual par rate, you might get something better than what you were originally offered.

Credit Score

Perhaps the biggest determinant of your interest rate is your credit score and overall credit history. Your score determines whether you pre-qualify for a conventional or government mortgage, or a subprime mortgage. The interest rate varies widely among these products. Generally, the higher your score, the lower your rate, pending the application of the other factors we’ve mentioned. But in most cases, your score determines your starting point.

To qualify for the best possible interest rates, you must be aware of your credit score. Obtain a copy of your credit report from the three major credit reporting bureaus. Determine what is keeping your score from being as high as it might be and take steps to boost your score. Once you do, you’ll be in a greater position to take advantage of your knowledge of interest rate determinants. While you shouldn’t shop for mortgages asking for interest rate alone, you’ll get the best possible deal when your credit scores are the highest they can be.

Frank Bruno- DisputeDemon.com DisputeDemon.com

The housing market has exploded in the last five years, and homeowners are finding that the equity in their homes is greater than it has ever been. The equity in a home is the difference between the market value of the home and the amount still owed on it. As home prices increase, so does the equity for those who own their homes. In parts of California, home values have tripled during the last five years, and homeowners are doing increasingly risky things with their newfound “wealth.” Anyone considering borrowing against their home’s equity should carefully consider the possible pitfalls of doing so.

Traditionally, most home equity lending was done for purposes of home additions or remodels. These have been considered low-risk loans, as the house is collateral for a loan that improves the house itself. As a bonus, the improvement usually increases the value of the home, making the loan even safer for the lending company. Occasionally, homeowners default on such loans, but the foreclosed property can easily be sold to recoup the loss. Times have changed, and many, if not most, home equity borrowers are now using the money for different, and riskier purposes.

Thousands of people who have suddenly found themselves with hundreds of thousands of dollars of equity in their homes are treating that value as a windfall of cash. Instead of traditional uses, such as home improvements, borrowers are using their equity to buy more real estate to use as rental property. There are cases of individuals with homes valued at several hundred thousand dollars who have borrowed against their equity, bought more property, borrowed against that equity, and repeated this process six, seven, ten or more times, attempting to build up an empire of rental property. It’s hard enough for most people to manage one mortgage, but some people who are caught up in the “equity frenzy” are now managing ten or more of them! On the surface, it may appear that these intrepid individuals are simply taking advantage of an opportunity, turning several hundred thousand dollars worth of equity into millions of dollars worth of rental property. On the other hand, these “investors” may be inviting disaster.

As more and more people buy real estate on speculation, the equilibrium of the real estate market is affected. The additional competition among buyers, fueled by the real estate speculators, is causing prices to go up even more. Eventually, the market is going to peak. Buyers who need a home to actually live there can only pay so much for them before the homes simply become unaffordable. And not every speculator can own ten rental properties, as the market can only support so many rental properties before the market becomes saturated. Once that happens, prices will fall. And when they do, all of these buyers who purchased their homes using their own home’s equity will find themselves under a mountain of debt.

It’s nice to have some equity in your home. It’s also nice to be able to borrow against that equity for home improvements or debt consolidation. Using your equity as though it was cash you can freely spend is dangerous, as many speculators will soon learn.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to end-your-debt.com/ debt consolidation and credit counseling information and HomeEquityHelp.net HomeEquityHelp.net, a site devoted to information on homeequityhelp.net/ mortgages and home equity loans.

Now that the real estate boom has passed, many home sellers are wondering what they can do to boost the chances of a profitable sale. In fact, some experts claim that the real estate market is now a “buyer’s market,” because houses aren’t in demand anymore. Fortunately, if you’re a seller, there are some ways to increase your chances of selling your home:

GIVE IT A FACELIFT

An attractive home is going to attract more buyers. Put a fresh coat of paint on the walls, fix any small repairs, trim your lawn and plant a few flowers. Even small cosmetic fixes–such as replacing the hardware on your kitchen cabinets–can improve the look of your home and give it an updated feel. Pay close attention to any outside landscaping, since the exterior of your home is the first thing a buyer sees when he/she pulls up to your house. Make sure it’s neat, inviting and pleasant. This tactic, known as “curb appeal,” helps draw more buyers to your home.

OPEN THE SPACES

You can’t move walls or create a bigger room (unless you plan on doing some major renovation). But you can create the illusion of space by simply moving some of your belongings out of the house. In fact, experts recommend that you put 30% of your things in storage when you’re planning on selling your home. By getting rid of clutter and personal items, rooms look bigger, brighter and more open. Don’t forget to open window curtains and shades, too, if you know a potential buyer will be visiting. Like adding a mirror to the wall, it makes a room feel larger.

TAKE GREAT PHOTOS

Before a buyer decides to even look at your home, they’ll probably review your listing on a real estate website. To attract attention, take the best, brightest photographs possible. Choose a sunny day–preferably when the trees are green and flowers are in bloom. Stand at the far end of a room, usually in a doorway, so the room appears spacious in the photo. And don’t take the pictures until you’ve moved some of your belongings into storage, so the photos don’t include a lot of personal clutter. Here is a list of recommended abcloanguide.com/mortgageloans.shtml Home Mortgage Lenders online. It’s important to use a reputable lender online to make sure your personal information is secure.

Your best bet for selling your home is to hire a knowledgeable real estate agent who’s willing to help you prepare your house to be its best. Choose an agent who offers plenty of advice and guidance for making your home attractive to buyers.

Visit ABC Loan Guide to find the abcloanguide.com/mortgageloans.shtml Best Mortgage Interest Rate on your next loan. Also, see our resources for abcloanguide.com/lowincomemortgage.shtml Low Income Home Buying Programs.

Rich in natural beauty, Austin is a popular tourist destination and a great place to live. It offers a wide selection of economical to expensive luxury apartments for rent, lease, and sale in a variety of neighborhoods.

Set against the backdrop of beautiful landscapes with hill views, the condominiums, town homes, and duplex luxury apartments are designed to meet varying lifestyles and tastes. Austin luxury apartments engage twenty-first century concepts, spacious floor plans, and an ecologically compatible environment to foster physical, mental, and spiritual well being. Every apartment has a fully equipped kitchen, unique living space, and spacious dining area. Some have Berber carpet, a Roman soaking tub, Texas-size walk-in closets, built-in bookshelves and desks, washer/dryer connections, a utility room, and French patio doors leading to a private garden or balcony.

Common facilities include a sports park and clubhouse with lighted tennis and volleyball courts; professional, multi-level putting greens, big-screen TV and billiards room; computer and Internet access; fitness center with aerobics classes; indoor and outdoor games; parking spaces; a swimming pool and spa. Celebrations such as birthdays or anniversaries, business meetings, and conferences may also be held.

Many Austin luxury apartments have a serene atmosphere, ideal for senior citizens. Independent living and assisted-living luxury apartments are also available. Independent gated villages are interconnected with a series of greenbelts, parks, and lit pathways as well as hike and bike trails.

Information about Austin luxury apartments may be obtained from professional apartment locators, realtors, or real estate agents. Many online sites also assist in buying, leasing, and renting apartments.

e-austinapartments.com Austin Apartments provides detailed information on Austin Apartment Associations, Austin Apartment Guides, Austin Apartment Locators, Austin Apartment Stores and more. Austin Apartments is affiliated with e-DallasApartments.com North Dallas Apartments.