Used House Buying Tips for Acquiring Real Estate Treasures

Writen by B Shelton

Used house buying raises an argument on practical vs. impractical investment. The phrase “used homes,” of course, does not always mean historic houses that date decades back; a “used home” could also be a structure that’s just a few years or even just a few months old.

There may be practical factors or factors that are beyond economics behind buying older, more ancient houses. Sometimes, buying used homes is not an issue of affordability but of aesthetics; this puts preferential taste over practical lifestyle. Those who buy used homes fancy older houses, knowing that there is more value in their antiquity and style unique to their age that could fetch more through time. When properly preserved and attractively packaged, these antiquities attract richer people who have no practical use for their surplus funds.

Even more in the market, though, are those buyers of used homes who don’t have excess money to “waste” on something without any practical use to them, but only would want to own a place that they can call their very own. This sort is more in number compared to the first kind of investor. The factors considered by such a group of buyers of used homes would be more realistic and down to earth, preferring their home to be conveniently accessible to their more mundane concerns like place of work, market, church, school for their kids, etc.

Whichever type of a used home buyer you may be, you may avail of the convenience of surfing the Internet to do some research on what kind of used houses are up for sale in the market, if only to save you from much legwork. Printed advertisements are also a source of information for properties up for sale. When you find the one you like, you have to really go out there and have an ocular inspection of the property before entering into a headstrong pursuit of buying it.

Used house buying entails costs for repairs and remodeling. Keeping this in mind, unless you find something that has everything you love in a place your own all in, you have to save up something for this also on top of the initial cash outlay for the down payment. More likely, though, there is no such thing as a used home that is perfect to your taste; you have to spend money for necessary repairs and remodeling. You may use this line to woo the seller to enter into an owner financed arrangement with you, in the end. Be wise and note that the owner financed deal is the best deal there is when you want to go into an earnest used house buying.

Brian Shelton makes home buying in the Dallas easy! Visit http://www.StopRentingDFW.com/

A Guide to Home Inspections

Writen by Raynor James

Any Sally and Sam Homebuyer can look at a home and decide whether it is attractive. They might notice it is freshly painted in pleasing colors, has the requisite number of rooms, a cook’s kitchen and is located in a location with top schools. But what about less obvious parts of the house?

It takes special expertise to determine if the functional parts of a home are in good shape. If you attend an open house, how do you determine if there are plumbing problems, electrical problems, structural problems, drainage problems, the condition of heating and air conditioning equipment and the condition of literally hundreds of other items that could cause concern?

Enter the home inspector.

A home inspector is trained to be a detective in regard to the construction and working parts of homes. It is not an exact science.

The home inspector cannot tear into things, so they can’t always see everything they’d like to. They do, however, come equipped with ladders, strong flashlights, and devices to measure various things related to plumbing, electrical and other necessary home items. Importantly, a home inspector will also typically bring a digital camera to photograph problems such as roof shingles not lying flat, signs of mildew from leaking pipes and construction that doesn’t comply with building codes. They don’t miss much.

It’s a good idea for the buyer to be present during the home inspection. If you ask them to, home inspectors will usually explain how things work to you. This is important as they can show you where cut off valves are, how to remove filters for cleaning or replacement and tell you how often various maintenance chores need to be done. This information can be very valuable if you ultimately purchase the property.

It’s also a good idea to ask the home inspector if there are any particular tests they would perform if they were buying the home. For example, radon gas (a colorless, odorless gas which is a carcinogen) can be a problem in some parts of the country. It can be detected, measured, and, if levels are above EPA standards, there are procedures to deal with it successfully. A home inspector can help identify such issues for you.

It’s easy to see that a home inspection can provide a wealth of valuable information. While it is easy to fall in love with a listed home, a home inspector can be the key to avoiding disastrous discoveries down the line.

Raynor James is with http://www.fsboamerica.org providing FSBO homes for sale by owner. Visit our “sell my home?” page at http://www.fsboamerica.org/seller.cfm to list and sell your home for free for one month. Visit http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.

Real Estate Commission A Corrupting Influence

Writen by Peter Mericka

Real estate commission is the way in which real estate agents are paid for the services they provide. They receive a percentage of the price received for the property. Effectively, the real estate agent requires the seller of a property (the vendor) to sign over to the real estate agent a part of the property being sold.

Another way of looking at it is to say that the real estate agent, through the wording of the listing contract, effectively has his name added to the title deed of the vendor’s property, so that the real estate agent becomes a part owner of the property. When the property sells, the real estate agent receives a payment that represents his share in the vendor’s property.

Most readers will be aware of the arguments in favour of real estate sale commissions, so I won’t discuss those here. My focus is on the ways in which the sale process can be skewed against all parties involved, when the motivation to win a commission takes precedence over more important considerations.

Commission is a “winner takes all, loser gets nothing” situation. This increases the pressure on the real estate agent to secure a sale. Time is also a problem. If the real estate agent cannot secure a sale within a time acceptable to the vendor, the vendor may take the property off the market, or away from the real estate agent’s agency. This will result in a total loss for the real estate agent.

Finally, the vendor becomes an obstacle between the real estate agent and his commission goal. In order to receive payment for his share of the vendor’s property, the real estate agent must receive an offer to purchase within the available time, but the offer must be accepted by the vendor. If the vendor decides that the offer is not acceptable, then the real estate agent loses.

In order to win the gambling game that is real estate sales, the real estate agent may decide to tip the odds in his favour – and there are numerous ways in which this can be done.

At the listing stage the real estate agent may use improper means to win the listing contract. These include over quoting on valuation, and offering dodgy sales figures.

During the sale process the real estate agent may be tempted to tell potential purchasers things that are untrue. I have seen many sale contracts with clauses designed to protect real estate agents against the consequences of false statements. Known as “porkies clauses”, they invariably state that the purchaser acknowledges that any information provided to the purchaser by the real estate agent is provided on the understanding that the purchaser will not be relying on it for any purpose.

When a purchaser has submitted an offer, and the purchaser cannot be convinced to increase her offer, the real estate agent may be tempted to pressure the vendor into accepting what would otherwise be unacceptable. Observations, such as “the market has softened” or “the market has spoken to us” are used by real estate agents to convince vendors that the real estate agent’s high estimation of value can no longer be relied upon, and that the vendor should now accept what the vendor believes is an unacceptably low offer.

For some years now, I have been arguing that real estate services should be provided on a fee for service basis.

I will explore the replacement of real estate sale commissions with a fee for service structure further in future articles.

Melbourne Lawyer Peter Mericka B.A., LL.B is a real estate lawyer and consumer advocate. He is a former police detective, with experience in areas of criminal investigation and police internal investigations. Peter is the Director of Lawyers Real Estate, a law firm that sells real estate and offers conveyancing services. He also instructs in real estate conveyancing at the Leo Cussen Institute, Melbourne, and edits the http://www.AustralianRealEstateBlog.com.au.

Low Income Housing Investments

Writen by Steven Gillman

Low income housing providers get a bad rap. Be ready to be called a slumlord if you invest in it. Much of what people call slumlording though, is simply providing reasonable housing for those with low incomes. It is of benefit to the renter AND the landlord.

Why Do People Rent Ugly Homes?

Not so nice places are rented because they are affordable. When a house needs paint, has old rusty hinges on the doors, and a dirt driveway, it costs less to buy, and therefore can be profitably rented for less. In fact, anything major that the landlord does to improve it will result in higher rents, and possibly drive the renter away.

This often happens due to local regulation. When my own town enacted its first rental regulations, the fifteen pages of new rules required many landlords to spend money to upgrade their apartments and other rental properties. They included many non safety related requirements, like a minimum of windows, to allow natural lighting, bedroom square footage requirements, and no peeling paint or cracked plaster.

Regulations like these are done in the name of low income renters, but the result is always the same: higher rent. Combined with the regulations against mobiles homes, these laws force low income families to move further away from town and jobs. I mention all this to let you know that if you offer an ugly, but safe and affordable rental, you are providing a real service.

Why Low Income Housing Investments?

When an average two bedroom house in a small town costs $130,000 and rents for $800, an old mobile home on a lot will probably cost $45,000 or less and rent for $500. The house costs almost three times as much, but the rent you get isn’t even doubled. In other words, the mobile gives you MORE CASH FLOW. That is why old houses, run down apartments, and mobile homes (on land) are such good investments.

Maybe you think you’ll have more risk and management problems with low income housing. Well, you’re right. Small repairs come up more often, and rent will be late more often, on average. But this is why you deserve a higher rate of return. I wouldn’t recommend investing in low income housing if you didn’t get a higher rate of return.

Let them call you a slumlord. Just treat your renters well, and make your places safe. Do these things, and you can enjoy a good return on your investment in low income housing.

Steve Gillman has invested in real estate for years. To learn more, get a free real estate investing course, and see a photo of a beautiful house he and his wife bought for $17,500, visit http://www.HousesUnderFiftyThousand.com.

Flipping Houses: Common Mistakes That Flippers Make

Writen by Donald Lawson

In my profession as a home inspector, I get to witness some amazing flipping deals. Some are profitable, some aren’t. Here are the common mistakes I see flipper continuing to make.

#1. Falling In Love With The Home: Hey, it’s just a house built out of sticks and clay. There are thousands more. If you can’t keep from falling in love with every home you see, then flipping homes isn’t for you. Never forget it’s a business, treat it that way.

#2. Keep Your Mouth Shut! There’s an old saying in the Navy. “Loose lips sink ships”. More than once I’ve inspected a home for an Investor and have the Investor call up a week later saying they lost the deal to someone else. Some people just can’t keep their mouth’s shut. Wait until you walk away from the closing table to tell everyone what a deal you made!

#3. First Impressions Are The Most Important: Spend the dough on the landscaping and exterior of the front of the home. I’ve seen more homes sold and more homes fallen in love with (see rule #1) from a great first impression than any other single item. Clean and shiny door knobs, door knockers, coach lamps and address numbers will add to the impression. If it doesn’t add cosmetically to the home, get rid of it.

#4. Don’t go overbored The simple fact is that most homes can be flipped for a decent profit by cleaning and replacing the carpet and paint. Too many times flippers think they need to sink thousands of dollars on a home to make it sell.

Many times what happens is they will remodel the home and it ends up being priced higher than anything in the neighborhood and sits on the market untill the Investor drops the price. Take a page from the flipping pro’s book. Keep it to the basics. You’re trying to make a profit, not make the front cover of a glamour magazine.

#5. When In Doubt, Reread Rule #1 Some people need Rule #1 stapled to their forheads!

#6. Don’t Get Greedy! If you’ve priced your home well, then take the first offer that comes along. It’s not worth your home setting on the market for months because you’re too tight to come off the price a thousand or two. Reread rule #1!

Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a Houston Home Inspection company. If you’re interested in investment opportunity’s in Houston Tx, see his Houston Real Estate page.

Atlanta Real Estate Will The Bubble Burst?

Writen by Ben Hirsh

Last year was a great year for real estate in Metro Atlanta with a sustainable rate of appreciation; however, many major markets around the country saw huge gains in 2005 that would be difficult to sustain. Although we have not seen the infamous “bursting of the bubble” that has been so hyped in the news media, we have seen significant slowdowns in several major markets.

How will the Atlanta area be affected by slowdowns in other major markets? Well, I would suggest that the inflated markets in states such as Florida and California could actually boost the Atlanta market significantly.

Atlanta has seen an influx of clients from these areas who were willing to move to the Atlanta area with no guarantee of a job, simply because they could afford a home here that they could never dream of being able to afford in their previous cities of residence.

Atlanta real estate is some of the most affordable in the nation and our economy and job market have been very healthy as well. These factors combined represent a very enticing prospect to people looking to leave volatile and over priced markets to fulfill their dream of home ownership.

One way to find out what your home may be worth in the current market is to visit the Home Valuation Page for an estimate of your homes value.

In a market that can at times seem scary, it is important to keep up to date on the latest news!

Ben Hirsh is an active Realtor and an expert on Atlanta Real Estate He can be reached at 678 779 7702.

Estate Agents on the Costa Blanca Spain

Writen by Karen Milacic

Properties for sale or to rent on the Costa Blanca

As a general rule of thumb, newly built properties on the Costa Blanca are generally cheaper than existing or re sale properties cheaper still if you buy ‘off plan’ (before the house has been started). Property prices have rocketed here over the last five ten years and many fortunate people have found that their properties have grown in value enormously even before they had moved in! Even though the market is now leveling out, a property in Spain is still an extremely good investment. Visit www.villa angels.com for the latest properties on offer all over the Costa Blanca from Mar Menor to Valencia.

If you prefer a more traditional Spanish style country house called a ‘finca’, or one of the quaint village houses, the first thing you need to do is check the wiring. Spain has the highest percentage of unsafe wiring in Europe with over 78% of all installations over ten years old in a near lethal state of repair. There are good electricians to be found as well as some bad ones. Ask to see their qualifications and check to see if they have the appropriate testing equipment. You may have to pay a little extra, but better that than the alternative.

Not many houses are built to include a damp proof course and people often find that after the first winter and we do have winters here the paintwork starts peeling and bubbling along the bottom of internal walls. Check with the builder that it is included and if not ask that it be included as an extra. Older houses will not have one, so you may have problems that need to be rectified by a competent builder.

There is no such thing on the Costa Blanca as mains gas. You will need to set up a contract with the local Butane gas company to have it delivered to you. A lorry will then pass by your house once or twice a week to bring you full bottles and collect the empties to be re filled. You will need to supply the company with a copy of your escritura (deeds) or rental contract plus a copy of your N.I.E. certificate.

Obviously, it should go without saying, when buying a property DO NOT SIGN ANYTHING BEFORE YOU FIRST CHECK IT WITH A LAWYER. So many people have been fleeced by sharks acting as ‘estate agents’ who have demanded a deposit on a property that either was never for sale in the first place or has so many debts outstanding on it to make it worthless. In Spain all credit is guaranteed against property so if the debt is not paid, a charge is put against the property not the owner. In other words, the owner can disappear with your money and leave all the debts waiting to be settled by the you as the new owner of the property. Ask to see a copy of the ‘nota simple’, this will tell you if there any large debts lodged against the property as well as the legal size of the dwelling if any illegal extensions have been made to it. It’s also a good idea to visit the local town hall (ayuntamiento) to ask if there are any taxes outstanding on the property.

Almost half of all business in Spain is conducted ‘under the table’ so don’t be surprised to find that the amount you are paying for a property is not the amount written in the escritura (title deeds). This is nothing to be concerned about as it is done to save you and the seller significant tax bills. Duty on property sales currently stands at 7% which can add a large chunk to your investment, so it makes sense to declare a smaller amount on all the legal paperwork. Everyone does it and the authorities turn a blind eye as they would rather have some money than none at all if the whole deal were done in cash.

In any case, you need to budget for 10% above the property price to cover you for taxes, legal fees and paperwork.

Happy hunting!

If you would like more information on this topic or any other related to the Costa Blanca visit Costa Blanca World.

Karen Milacic is a graphic and web designer living as a British expat on the Costa Blanca for the past five years. Visit her other web sites at: http://www.villa angels.com; http://www.thedesignbusiness.co.uk; http://www.costablanca webhosting.com

Real Estate Investing and Home Ownership

Writen by Dr.Phil Speer

If you already own your home, you will probably make money in real estate without ever buying another property.

The home you are currently buying with a mortgage is probably one of the most valuable appreciating assets you will ever own.

You are making money by living in your own home, even if you never buy any additional property. This, within itself, makes you a successful real estate investor.

I have been fascinated with real estate investing for many years, but it all began with a startling discovery 35 years ago.

In 1970 I had bought a little house for my family in the Green Hills area of Nashville. It wasn’t much, but it was adequate and it was home.

In 1978, we decided to sell.

We sold that little house for $67,000.

That’s when the light bulb went off in my head.

I was shocked with a discovery that led me to fall in love with real estate investing.

I suddenly realized that we had made $40,000 profit in 8 years JUST LIVING IN THAT HOUSE!

We had not painted it. We didn’t add any rooms. We built no patio.

We just lived in it!!!

We had made $5000 a year simply living in that house.

I began to think to myself: what if I had two similar houses that generated $10,000 a year profit? Or, five houses that generated $25,000 a year profit? I began to fantasize the possibilities. This awareness launched my real estate investing career.

Soon I was buying millions of dollars in real estate.

But the real challenge was buying real estate without any capital. I had just experienced a serious business failure, and had no cash reserves and no credit. I learned how to buy a house with only a $10 bill. I never walked into a bank to ask for a loan, and I never applied for a mortgage. But conquering the challenge led to buying $10 million in real estate in only four years.

That whopping $40,000 profit that went into my pocket from simply living in that house I sold in 1978 was just the tip of the iceberg.

I still live in the Green Hills area of Nashville. I pass that same house every day that we owned in the 1970s. It recently went on the market again, and it quickly sold.

This time that same house sold for $200,000.

I don’t know what’s been done to improve the interior, if anything, but no exterior changes have been made to that house. It’s still about 2000 sq.ft. The lot is the same size. But the value has increased significantly.

Discovering this concept has made real estate investing very exciting to me.

Phil Speer, Ph.D., started his real estate investing career 25 years ago. With no credit and using only a $10 bill, he purchased $1 million in properties his first year, and accumulated $10 million in properties within 4 years. http://www.CashinHouses.com/

He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement. He won a Caribbean cruise as top investor of the year. In his hometown of Nashville, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. Anyone can profit in real estate investing, even without cash or credit. http://www.CashinHouses.com/ Subscription is free to his Fix up Ezine. He and other contributing authors provide free articles and resources on real estate investing at his online “Academy of Advanced Real Estate Investing Techniques” at http://www.AAREIT.com/

Safe Investments in this Real Estate Bubble

Writen by Sheikh Pervez Hameed

Last few months have witnessed phenomenal returns on real estate in Delhi and NCR and whole of India. Though currently Gurgaon is slowing down, with prices having come down by 20% in certain cases … still there is bullishness with caution. However, seemingly money is moving to Dwarka from Gurgaon.

With opening of Delhi metro line to Secretariat and Connaught Place almost a certainty, Connaught place has seen jump of 20 to 40% in capital and rental values. Inner circle showroom space rents at unheard Rs. 450 to 500/ per Sq. Ft., with showrooms space is in scarce supply. This positive sentiment due to Metro opening is pushing up demand in Dwarka and prices.

Where does one invest? Put in his money?

Answer to this is not easy. But it is still possible to find investment opportunities. Read on to know more.

To identify parameters for safe investment were difficult. Finally it boiled down to the question… if I invest my money in Real Estate anywhere, will a possible crash or bearish sentiment in Real Estate erode my real estate investment?

This meant, buying property at prices which in equity market parlance is called “value buy”. Rock bottom prices. Choice was between a developed property or land. Developed property has the advantage of finding a tenant so as some return on investment is there. But then, in developed property, you pay for the developer’s profit. Bearish sentiment can erode values in such investments considerably.

Land seemed to be safer. But what about a recurring return monthly or annual from the land? This set me on to the exercise that if I had 1 (one) Crore rupees, then what shall I do?

This quest led me out of of Delhi and finally, in Rajasthan, within 100 Kms from International airport, I located large tracts of fertile agricultural land with sweet water in the range of Rs. 2 to 3 Lakhs per acre (including acquisition cost of stamp duty plus brokerage). Undulating land, with few hills around, lake etc.

It is possible that the land prices will not appreciate so quickly and the holding may exceed few years. Could I then earn recurring revenues? Answer was a simple and emphatic Yes. Investigation showed that multiple sources of revenue are possible.

Simplest is leasing the land for one year to the local farmer who pays you either in kind or cash. About 6 8 % annual return on the investment is possible. Fear here is that such lease creates a right for the farmer. But this is not true. Each third year, a new farmer can be found and land leased to. This is not difficult, and is done quite often.

Even better returns are possible, if herbal farming is done. Safed Muesli shows tremendous potential though there are negative reports that it did not work for the few who tried. But there are many, for whom it has worked. When properly done and marketed, it can generate upto Rs. 2 Lakhs per acre of profit in one year. Profits from first year itself possible.

Another possibility is growing the bio diesel plantation. As per Govt. notification, in few years time it will become mandatory for a 5% mix of bio diesel with diesel. Yes … the bio diesel is in short supply. Consistent revenues of Rs. 15 to Rs. 35 thousand per acre per year with minimal caretaking.

Then many other possibilities … growing carnations, poultry, exotic vegetables, open a resort, conference center etc. Rajasthan govt. fairly co operative on this.

Finally, the big bang is possible. Expansion of urban areas can push up dramatically the land valuations. In any case, large tracts of land give a high level of well being factor to oneself and the family.

http://www.swagatamindia.com Sheikh Pervez Hameed is a realtor since 1989, has ground knowledge of the real estate market of Delhi and its surroundings.

How To Build A Buyer’s List

Writen by Ross Treakle

I recently spoke to a few people who wanted to get involved in wholesaling properties. Wholesaling properties is a great niche to be in because if you can find the right leads you will have no problems selling your properties and selling them fast. But before you can sell them fast you need to have a buyers list. A buyers list is one of the most important parts of a wholesalers business. When you are wholesaling properties you want to be able to flip them as fast as possible, and with a strong buyers list organized the right way this process becomes a whole lot easier.

What are some sources for buyers?

Your local real estate investment club is a great resource for buyers. If you are an investor it is absolutely critical that you know the investors in your area and have contact with them. When you meet them find out what part of investing they focus on and take note. Certain investors at your local clubs may not be interested in buying properties from other investors because it is not their particular concentration. But those that are looking for those types of deals are great. You know they are investors so your real estate investment clubs should be your first source for creating your buyers list.

Another source for potential buyers is from signs and classifieds. When you see any advertisement that says “We Buy Houses” or any other advertisement that is clearly from an investor, write down the number. When you get home call the number and just start talking to the investor. Find out what sort of properties they are interested in. Take notes on each conversation that you have and keep meticulous records

One of the best sources for a buyers list is your local section 8 office. Call your local office or visit them and get a list of the local landlords in your area. This will give you a large list of people who are active in real estate investing and are potential buyers. Again, once you have the list contact each investor and talk to them and try and get a feel for what types of properties they are looking for. On a side note, you may also be able to find a burnt out landlord that would be willing to sell you their rental property or properties at a discount. So not only can this step help create a buyers list but you may also generate a few good leads from this easy step.

Remember when you are collecting all these names to take lots of notes. Get each persons contact information and as much other information as you can. One critical piece of info is the email address. When you have a property and you have 100 emails of potential buyers, all you have to do is send out one email and you have reached 100 potential buyers in literally seconds. Regardless of the strategy I am going over next, this is a very powerful way to flip your properties very quickly.

So now you have a buyers list, what next?

The next step that I recommend is to sort your buyers list. The reason you do this is to take away a lot of the hassles you might face. If you have your list separated into an A, B, C, and D list; you will find wholesaling a lot easier. You’re A list may be those that can bring cash to the table within a week. Your B list may be those that have pre qualified for a specific loan amount. Your C list may be those who have not pre qualified but you believe could be able to get the financing in a month’s time. Then your D list may be those who you have no reason to contact because you don’t believe they will be able to get the money from anywhere.

However you divide your list up, this process will help out because you simply progress down your list. Start with your A list then your B list and so on down the line until you have a buyer and the property is sold.

I have also found it helpful to have a website where you can put pictures and descriptions of your properties. This however is not necessary however due to a new program a good friend of mine has created where you can list you properties and anyone can view them. To listen to an interview I conducted with this person and find out more about his program visit http://www.reaudiotips.com/mikecollins.htm

Ross Treakle is a real estate investor and an internet marketer. Ross has recently created a website for real estate investors. The website is quickly becoming a great resource for investors to educate themselves as well as find good, quality materials available on the internet. To find out more about Ross Treakle and his new website, visit us at http://www.reaudiotips.com