Showing posts with label Investor. Show all posts

Saturday, February 4, 2012

Six Property Terminologies Every Investor Should Know

English: A Wells Fargo bank on College Avenue ...

Six Property Terminologies Every Investor Should Know

Taking a shot at investments in the housing market for the first time can be quite daunting. If you want to be at par with the best investors in the industry, learning the necessary terminology comes with the territory. While it might be confusing at first, some bit of patience and practice will see you get the hang of it. The following are some of the terminologies you will frequently come across.

Floor Loan: This refers to the minimum amount of money a lender will provide to finance a building project. Most lenders will offer part but not 100 percent financing at the start of the project. The remainder is accessed when certain agreed milestones are achieved. Your lender might agree to lend you 65 percent to start the project with the rest to be committed when some flats are sold.
Alligator Properties: It is possible to earn less from a property than it cost to manage it. Costs like mortgage repayments, maintenance and taxes can be greater than rental income. Alligator properties will lose you a lot of money over time.
Assumable Mortgage: This is a financing agreement to transfer a mortgage and all its terms from the seller to the buyer. This is a great way of avoiding taking on a mortgage yourself. You will benefit from an assumable mortgage if interest rates are high.
Curb Appeal: A property is generally gauged by its attractiveness. Some of the factors that will influence attractiveness include: painting, landscaping and any visible improvements to the property. This can play a major part in determining the fair market value of a property.
Blanket Mortgage: You are likely to come across this term as an investor and not a single home buyer. It is a loan advanced to you to cover more than one piece of property. This is the perfect mortgage to go for if you would like to build many properties for sale. The main advantage associated with this type of mortgage is being able to sell individual properties without affecting the blanket mortgage.
Broker Price Opinion: This is a rough estimate of a property's value and is usually given by brokers. There are several factors the broker will take into account before making the final estimate. This includes: renovations, prices of neighboring properties as well as location.

If this is a bit mind-bending for you, an experienced real estate company can help. Gadish Properties is a real estate company with experience in short sales, property management, and REO sales. It is advisable to use a professional like Orit Gadish to take care of all the necessary property transactions. You will have at your disposal a team of people with access to numerous financial institutions and lenders such as Wells Fargo Bank.
As President and CEO of Gadish Properties, Orit Gadish has assembled a team of highly qualified real estate professionals who manage hundreds of REO deals throughout California. Orit Gadish has implemented technological innovations at Gadish Properties to create an efficient and effective sales process from start to finish. Working with a variety of banks and moneylenders, such as Wells Fargo Bank and One West Bank (IndyMac), Orit Gadish has secured essential business relationships for the facilitation of the sale of REO real estate. Orit Gadish is a California Real Estate Broker and a member of the Beverly Hills Greater Los Angeles Association of Realtors. Committed to her clients, Orit Gadish also operates Gadish Financial, an affiliate of Gadish Properties, which pairs property buyers with the best financing options at the lowest interest rates possible.

Article Source: http://EzineArticles.com/?expert=Orit_Gadish
http://EzineArticles.com/?Six-Property-Terminologies-Every-Investor-Should-Know&id=6798036

Friday, January 6, 2012

I Lost Thousands Of Dollars By Trying To Save A Dollar Day

A Northern European single-family home in Denmark.

Image via Wikipedia

Here's the interesting thing about this property. The home was priced right however, we saw the property at 8pm in the evening, there were multiple bids on the home and we were creeping up to the irrevocable date and time of midnight very fast. We had two choices... let this deal pass us by or take action and get our offer in. We paid $5000 over the asking price!

I Lost Thousands Of Dollars By Trying To Save A Dollar Day

By Gary Anthony Hibbert

Some weeks can be a roller coaster ride. The good thing with our adventures is we acquire some valuable lessons, and as a result put necessary fail safes in place to ensure things go much smoother the next time.

One of the things that we are continually focusing on are our checklists. By creating a good checklist system you're creating a step by step process that can be passed on to others to produce the same positive results without even having to think.

The other day one of our investors purchased another rent to own home. A beautiful detached home with a finished basement and tons of upgrades.

Here's the interesting thing about this property. The home was priced right however, we saw the property at 8pm in the evening, there were multiple bids on the home and we were creeping up to the irrevocable date and time of midnight very fast. We had two choices... let this deal pass us by or take action and get our offer in.

Knowing the value of the home, the type of tenants we could get and the positive cash flow this property could produce, we put in an offer that couldn't be refused.
...$5000 over the asking price!!

Crazy or what!! ...or is it?

Lets do the math; Now, the home was priced at $265,000 and we put in an offer at $270,000. If the home is amortized over 35 years the difference works out to approx. $17.00 a month. You can't even get a coffee a day in the month of February during a leap year for that price.

I'm not a mathematician by any means but for $17.00 a month, we couldn't let a deal like that slip through our fingers. Especially knowing that this home can easily cash flow. So who actually pays for this additional $17.00 a month if you have a property that's cash flowing? Some people may argue this, but as long as you're making money from your property each month, that $17.00 is passed on to your tenants. In other words, you don't have to go to your bank to withdraw your money to make a payment for it right? So... if you are not a numbers person here is the key things to remember. When your purchasing an investment property using our strategies, what you are really doing is providing a service for your tenants. If the public see value in your home, they will pay top dollar for it. Many people miss this valuable insight.

By trying to save a penny today, many people miss the big picture and lose out on tens of thousands of dollars a few years from now on a great investment property.

Now, I'm not promoting to over pay for every house that you come across. I love a great deal like anyone else does. What I am saying is this... understand every deal on the table in depth before you walk away from it. You could be leaving your kid's education, your trip around the world or simple a coffee and a bagel a day that you do not have to worry about for a very long time.

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 strategy. Visit Gary and his team at http://shcinvestor.ca

Article Source: http://EzineArticles.com/?expert=Gary_Anthony_Hibbert
http://EzineArticles.com/?I-Lost-Thousands-Of-Dollars-By-Trying-To-Save-A-Dollar-Day&id=6797382

Thursday, August 6, 2009

The Foreclosure Process for Real Estate Investors

Image by respres via Flickr

By Rick Halperin

Are you looking at foreclosures as a way to continue to build your real estate portfolio or to reposition equity? This article looks at the foreclosure process for real estate investors.

Changing market conditions and rising interest rates have pushed increasing numbers of property owners over the edge. Is their misfortune an opportunity for you? Based on the numerous seminars advertising to explain the foreclosure process for real estate investors, seminar promoters sure think so. Let’s explore where you can find some information on potential foreclosure properties on your own.

First, there are many search engines that can give you information on foreclosure properties and the foreclosure process for real estate investors. Once found, you can contact the property owners who have gotten too far behind on their mortgage payments and offer to buy their real estate. This will allow them to avoid foreclosure and the damage to their credit. In addition they could potentially receive some money in exchange for losing their property, which they would not were the bank to foreclose on the property.

Other sources are foreclosure auctions. Thousands of properties get auctioned off every week across the country. Many of these properties are sold for ridiculously low prices. To locate these auctions, check online, in newspapers, or simply ask a bank when their next scheduled auction will take place. But be advised, there is usually more competition at foreclosure auctions than there is when buying pre-foreclosures.

An REO is real estate owned by the bank. An REO is different from a foreclosure property in that the bank has already tried to sell it at a foreclosure auction and has had no luck getting bids. Because the property was not bid on, the bank then became the owner of the property. Naturally, the bank does not want to keep the REO any longer than possible, and this makes it a great opportunity for an investor. In buying an REO, you have distinct advantages that you do not when buying a foreclosure property. You are able to buy on your own schedule; you can make an offer on the home any time, you don’t have to wait for bidding to begin; and you can inspect it before you buy.

However, just because the bank owns a property does not make it a good deal. In fact, when you see that a home or property is an REO you have to wonder exactly what is wrong with it. So invest with caution.

The http://www.gotexit.net foreclosure process for real estate investors must be done with caution. But, investing in foreclosure properties has interesting potential for being an appropriate strategy for growing your real estate portfolio, or for repositioning the equity from other properties.

Article Source: Rick Halperin
The Foreclosure Process for Real Estate Investors

Steps to Freedom

Saturday, February 4, 2012