For Buyers, Seller Financing Can Be A Cheaper Alternative

Category: Finance, Real Estate.

Seller financing is an important and popular tool that can help buyers purchase a property they could otherwise not be able to buy. In all other respects the transaction is the same as through traditional financing- the deed is transferred to your name, and you simply make your payments to the seller instead of to a bank.

Sellers are sometimes willing to become" banks" for the buyer, taking payments just like a bank would until the loan is paid off. More and more sellers are offering financing because the rate of return they can get is better than through income- producing investments like certificates of deposit, or other, money market accounts" safe" investment vehicles. For buyers, seller financing can be a cheaper alternative. It s easy to understand: a seller will be much happier receiving 7 percent interest on the mortgage he offers you than receiving 2 or 3 percent from a money market account. You won t pay loan fees, and in many, or PMI premiums cases the credit checks and underwriting requirements are much lower. (Some sellers won t even check your credit. ) In general the closing costs involved in seller financing are much lower than with traditional financing. There are a number of possible advantages. Why would the seller be willing to finance your purchase of their property?

The seller may be willing to offer financing if: The property type is difficult to finance through traditional third party lenders. An" as- is" closing is desired on a property in need of repairs. The property has been on the market for 90 or more days. The owner has not met minimum holding time or title seasoning requirements required by traditional lenders. A quick closing is preferred by seller to free up investment capital. An immediate closing required due to imminent foreclosure or other financial burdens.

The seller wants long- term interest income. Here s why: let s say you ve owned a rental property for a number of years and have paid off the mortgage. The last situation listed is especially common. You enjoy the monthly income you receive from rental payments, but you re not interested in being a landlord any more. In addition, you ve avoided any capital gains taxes that might be due if you sold the property outright. By selling the property and offering owner financing, you still get monthly income- but you avoid all the duties of being a landlord, since that s now the new owner s role.

Here s why seller financing can be advantageous to you as the buyer: You can often put little or no money down. You ll face lower credit requirements. Some sellers will require ten, or thirty percent, twenty down, but many will accept less than ten percent, especially if their goal is to receive monthly income from the property in the form of mortgage payments. As I mentioned earlier, some sellers won t check your credit at all. Sellers won t require you to have an underlying( qualifying) income. Most will simply make sure you ve had no bankruptcies or foreclosures in your past.

If it s an investment property you re buying, a traditional lender will expect you to have sufficient income to cover at least some of the monthly payments on the property in case your units are vacant for a period of time. As long as the rent you will receive covers the monthly payments, the typical seller won t ask about your monthly income from other sources. Sellers assume your income will be derived from rent payments. The terms can be more flexible. Price, terms, interest rate, and any other loan requirements are all up for negotiation. You and the seller agree on terms- you can decide on any terms you re comfortable with.

If you have unusual needs, you and the seller may be able to reach an agreement that a traditional lender won t. If the seller agrees, you could make lower monthly payments for eleven months of the year, and a larger payment on the twelfth month. For instance, let s say you work on commission, and at year- end you always receive a lump- sum payout. Closing costs are lower. The seller isn t covering advertising costs, or other costs, overhead that a lending institution has to cover. Sellers don t usually ask for points, origination fees, loan application fees, etc.

You ll complete less paperwork. The sale can take place much more quickly. Sellers don t answer to a bureaucracy, so the only paperwork you ll complete is what s absolutely necessary for the transaction to be legal in your locality. I ve known people who have been able to close on a property within a week of signing a contract. Situations like that are common when the owner is nearing retirement age. Some sellers will ask for a balloon note- they want monthly payments for a certain number of years, and after that they d like to cash out. If the owners are in their early 60s, they, for instance re probably not concerned about receiving mortgage payments for the next 30 years. five or ten years may be long enough.

Keep in mind that the loan agreement you reach can have" unusual" requirements. When the balloon payment is due, you ll simply get traditional financing( or use another creative financing method. ) If your goal is to refurbish the property and re- sell it, make sure you negotiate for enough time before the balloon note becomes due for you to complete your repairs and sell the property. It s not uncommon to buy a property using owner financing and find a clause in the contract stipulating you can not sell the property for at least five years- the owner wants to be sure he receives mortgage payments for at least five years before receiving the balance of the principal. There s a major advantage to using seller financing if you re trying to accumulate properties: if you ve bought a property financed by the seller, the transaction will not show up on your credit report. Make sure you re comfortable with whatever agreements you reach. That can be an advantage if you re trying to buy multiple properties, or if your credit is marginal to begin with. When you re looking for flipping properties, some will be advertised as" owner financing available" or" seller financing available. " In many cases, the seller may be willing to offer financing but isn t advertising that fact.

Properties purchased through seller financing are" transparent" to lending institutions. If you find a property you want to buy, you can always make seller financing a contingency of your offer. If the seller isn t interested in carrying financing, that s okay. because he or she doesn t have to agree. Like most things- you won t know until you ask. If the sellers weren t originally offering financing, they re unlikely to entertain the idea unless you put the request in writing as a part of your offer to buy the property. If their request comes with an attractive offer on the property, and you haven t had many offers. you may be more willing to at least look at the possibility.

Think about it: if you re selling a property, and a person casually asks if you re interested in financing it, you re likely to say no.

Another Thing To Remember Is That The Real Estate Market Moves In Cycles

Category: Finance, Real Estate.

When it comes to investing in property there is no right time or wrong time, anytime is good when investing in property. It can be easier or harder to find value depending on the state of the market but it is always there.

The market is so wide and high that it is always possible to find some value in there. There is always some sort of property that has been in neglect, or simply has, disrepair motivated sellers that must make a sale. Another thing to remember is that the Real Estate market moves in cycles. Properties such as these make for a great buy at any time no matter the state of the market. It never stays low or high for too long. With a little bit of knowledge you can come close to predicting the cycles and making a killing in the market. Eventually things reverse and go back to the way they were in the previous half of the cycle.

The market is also unpredictable with the leading experts unable to always buy low and sell high. The Real Estate investor that always makes money is the one who makes it a habit of buy and hold. Most of the time it is just educated guesswork that may or may not work so you there is no point in waiting for the ideal time to invest in the market. While it is true that their money is tied up it is equally true that a sluggish market or slow economy does not do them any harm. In the meantime they can continue to make money by renting or leasing such property. "Buy and hold" investors are very patient and they usually have more experience watching the market than short term investors. They simply have to hold on to the property and eventually when the upside of the cycle comes around they can sell it off.

This means they are that much better at predicting the cycles. They are much better at reading the signs and making the right buy or sell decision. They know when they can expect peaks and valleys and they can plan their actions accordingly. Being active in the market for a long time also means that they have a thorough knowledge of what is available where, and they can move in and get working. This turned out to be bad news for those investors who thought that the market will continue to go up indefinitely. The Real Estate market is currently going through a sluggish period all over the world, apart from a few spots like Dubai and some locations in China. The good news here is that since the prices are falling down it is the right time to buy.

If you are looking to buy ownership property instead of investment property then there is no point in looking at the market condition. You cannot wait too long or the cycle may reverse again by the time you are done deciding and you will pay more than you ought to. Just go ahead and buy.

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So How Much Do Mortgage Points Save You In The Long Run - Finance and Real Estate Articles:

"Points" are fees paid to a broker or lending institution that are linked to your mortgage s interest rate.

Real Estate Investment Depends Heavily On Location - Rochelle Donis about Finance and Real Estate:

You ve heard the old real estate adage, location, location, location, and the fact of the matter, this still holds true. Pick an area that is going downhill and you ll end up having to sell at a loss, but if you get the right location, the property you invest in could eventually be worth millions.

They Are In Touch With The Owners Of Properties In Various Places And Of Different Range

Category: Finance, Real Estate.

From shrewd businessman to damn- care artists, worldly wise people to carefree wanderers, everybody unanimously agrees that making investment in properties is the best way to ensure higher profit in short span of time. It has become a well- established fact that investing money in Spanish property is the best way to double ones money.

Present day scenario in Spain can be presented as a testimony to this fact. There is more than one reason why an investment in Spanish properties comes out with huge profit. And now when fresh properties are developed and new accommodations are made available, craze for Spain is always on rise. With its mild weather, well, beautiful beaches- equipped resorts, designer golf courses and many other festivities, Spain has always intrigued visitors from all over Europe. More than anything else, the new developments in the coastal regions are unsurpassing in their appeal. The pleasant weather together with long beaches of white sand and beautifully landscaped golf courses fascinates the foreigners so much so that they do not remain satisfied by confining their visit to the places a fort- night- in- a- year.

Everything that one needs to live a luxurious life is available there in these coastal areas. Rather, most of them want to buy their own permanent accommodation and enjoy the pleasure of the place whenever and in whatever way they want. So, whether it is a luxury villa or a budget flat, everything is sold or rented as hot cakes. This results in a huge demand for accommodation. This clearly indicates the profitability of Spanish property. They are in touch with the owners of properties in various places and of different range.

If the prospect of making investment in Spanish property attracts you, you can go through the property dealers to buy or rent an accommodation. If you show your interest then they will place a variety of options in front of you. You can make your choice as per your plan and budget.

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This Makes Buying Or Moving Into A Valrico Home Is A Good Choice - Finance and Real Estate Articles:

Located north of Tampa, Valrico is an unincorporated community within the Hillsborough County, featuring the typical, Florida adavantages and disadvantages of a small town. If you want to relocate to Tampa Bay Area, or from Tampa, Florida to a smaller town, one of the options to be considered is Valrico.

Trends In Florida Home Buying - Finance and Real Estate Blog:

It s hard to miss all of the recent media coverage regarding the US housing market.

So, You Want To Know What The House Price Would Be Equal To Paying$ 1000 Per Month - Finance and Real Estate Articles:

When someone decides to buy a house, one of the first tasks is to talk to a lender and determine the maximum loan they can get. There s lots of calculators out there that will help determine this.

As Of The Second Quarter Of 2007, 342 Homes For, There Were 14 Sale

Category: Finance, Real Estate.

Economic indicators for Hillsborough County brought forth positive news in the second quarter of 200Chief amongst these strong economic indicators was that associated with employment and the employment outlook in the county. The net effect of this significant number of new jobs created in the country was a substantial reduction in the unemployment rate from 2% in the first quarter of the year to 0% during the second quarter.

Nearly 3, 800 new jobs were added in Hillsborough County during the second quarter of this year. The employment situation in Hillsborough Country is expected to boost the Tampa real estate market in the immediate future. Another positive change noted during the second quarter were generally favorable interest rates when it comes to home mortgage loans. Experts agree that the solid employment climate will increase demand for home sales noticeably. This fact, combined with strong employment trends, is expected to favorably impact the Tampa real estate market throughout the remainder of the year. The average home price in the country during the first quarter of the year was$ 258, 000During the second quarter, the average home price in the country rose to$ 273, 000The trend is expected to continue into the third quarter with the average price of homes in Hillsborough County again increasing, likely at a similar rate. The average home price in Hillsborough County actually also increased significantly from the first to the second quarter of this year.

There has also been a significant increase in the number of homes sold from the first to the second quarter of 200During the first quarter of 2007, 2, 120 homes were sold in the Tampa real estate market. As of the second quarter of 2007, 342 homes for, there were 14 sale. During the second quarter, that number climbed to 2, 57During the first quarter, 426 homes on, there were 13 the market for sale. The average day a home was on the market for sale during the first quarter as 9In the second quarter of the year, that number had risen slightly to 97 days, with more homes actually selling as has been noted. Home sales prices continue to climb and more homes are being sold with each passing quarter positive developments across the housing market itself. Despite a great deal of bad news on the housing and lending front throughout the year including the growing number of mortgage loans in default or foreclosure and the tightening of credit more generally the housing market in Hillsborough County has continued apace.

Although the mortgage industry likely is not set to stabilize any time soon, the housing market in Hillsborough County has avoided many of negative consequences of the mortgage lending industry problems that have been felt( and strongly so) in many parts of the country, including in different areas in the Sunshine State. That trend is expected to continue throughout the remainder of the year and into 200

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As We Have Discussed, There Are Many Factors To Consider When Finding The Right Neighborhood - Finance and Real Estate Blog:

As the old saying goes, the three most important facts for selecting the right neighborhood are location, location, location.

As The Home Is Vacant, The Bank Is The One Which Is Paying For The House - Finance and Real Estate Articles:

When it comes to buying properties, many people have the misconception that in order to find a good home, they need to have large amount of money. This particular myth is not necessary true at all.

The North Cyprus Administration Has Issued TRNC Title Deeds In Relation To Previously Occupied And Owned Greek Land - Socorro Pebley about Finance and Real Estate:

Cherie Blair, wife of the British Prime Minister, has become involved, Tony Blair in the controversial issue of British ownership of North Cyprus Property.

If Golfing Isn T Your Style, The Neighborhoods Also Feature Popular Campgrounds

Category: Finance, Real Estate.

Fort Bend County, a growing area in Houston, has a number, Texas of new neighborhoods coming into development.

Many of the best Fort Bend county neighborhoods can be found in the Sienna Plantation community. There are plenty of planned communities that are opening new high end neighborhoods, or just making additions to the ones they already have been built. This is a popular community in Houston with plenty of lavish homes, many of which can be custom built. These homes, in addition to the great amount of amenities available to homeowners help to make them the best fort bend county neighborhoods. There are twenty neighborhoods available to choose from, each one with a number of homes available for sale. But what really makes the Sienna Plantation neighborhoods the best Fort Bend County neighborhoods?

Depending on the neighborhood you are planning to live in, there are a number of home choices that you can decide on. Surely, the houses contribute to this a great deal. Whether you want a more modest home for your family or an oversized lot for an enormous home, the chance to get it in one of Sienna Plantation s neighborhoods is high. This also brings a good amount of diversity to the neighborhoods, which is great for meeting people from all walks of life, but who have similar interests in the types of communities they want to live in. The prices for these homes range from about$ 160, 000 to nearly$ 2 million. Education is another reason Sienna Plantation contains some of the best neighborhoods in Fort Bend County. Younger Sienna students attend Sienna Crossing Elemetary, Scanlan Oaks Elementary and the new Baines Middle School.

As more families move into these neighborhoods, they find that the schools in the county are some of the best they have encountered or looked into. These are all located within the community, so your children will grow up around neighbors and make strong ties in the community. Hightower High School has been serving the community for years now and offers great academic and athletic services. High school is where the education in Sienna Plantation really starts to shine. In addition, it has popular career- oriented academics for studies in various specific fields. Elkins ranked 12 best high schools in the Houston area and third in Fort Bend County.

In the upcoming 2007- 2008 school year, some students will be attending Elkins High School. Sienna Plantation also offers an incredible club house for residents. The clubhouse is also home to the largest private water park in the south. Here, homeowners enjoy a number of activities, pool parties, such as concerts, tennis matches, and family socials. The Sienna Plantation neighborhoods all have access to the community adventure water park, which few other neighborhoods have. A 12- acre recreation complex is offered as well, featuring a great deal of activities that anyone in the neighborhoods can take part of, many of which are planned community activities and events.

This makes it a great place for families, and of course encourages the best Fort Bend County neighborhoods to uphold their title. In addition to all of this, Sienna Plantation neighborhoods have access to a sprawling golf course that s perfect for amateurs and enthusiasts alike. If golfing isn t your style, the neighborhoods also feature popular campgrounds. Golf is a pastime for many of the professionals living in the community, and families often come to enjoy a day of golfing that strengthens bonds and enhancing the skills of future avid golfers. Outdoor enthusiasts will love Fort Bend County s terrain and wilderness. So if you ve been wondering what the best neighborhoods in Fort Bend County were, you ll find the as part of the Sienna Plantation community. The campgrounds are used regularly by families and individuals alike, and are just one more of the many amenities that are available to residents of the Sienna Plantation neighborhoods.

Great houses, and a huge, superb schools number of amenities and events all add up to neighborhoods that are being hailed as the best Fort Bend has to offer. If you have any questions at all, feel free to contact us and let us know. If you still need more convincing, take a look at the homes that are currently available and see for yourself just what is being offered to future residents.

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Many People Fly Out From Britain For A Long Weekend In Portugal - Finance and Real Estate Blog:

The Alentejo area is blessed with a beautiful coastline and is easily accessible- as most of Portugal is- house prices are significantly lower than in more well- known regions such as the Algarve. There s loads of space not on the Algarve, but the rest, of course of Portugal, empty roads, [people] living really from day to day.

Vancouver Real Estate Agents Can Enlighten You More About This Issue - Finance and Real Estate:

Have you ever thought of buying a property in Vancouver or finding Vancouver Real Estate Agents? You might also have been looking for some real estate in Yaletown, the West End or other parts of the Lower Mainland.

How Long Have You Lived In Your Home - Kris Mealer about Finance and Real Estate:

Dallas houses have a great future ahead of them due to the boom times the Dallas economy is facing at the moment. If your home were in one of these suburbs of Dallas- Keller, Coppell, Colleyville, Lewisville, Las Colinas, South Lake, Carrollton, Highland Park, The Colony, University Park, Allen, Frisco, and Plano( among many others) - you will find that the crime rate is actually much lower here than the US- wide average.

Get A Good Home Inspector

Category: Finance, Real Estate.

Use A Professional that Knows the Market. The average home owner may purchase two or three homes in their lifetime.

The most important aspect of purchasing a home is having an expert on your side. Real estate professionals know how to navigate through the potential pitfalls of purchasing a home. Any of these problems can cause you a lot of money and grief. They can help you avoid costly mistakes such as: choosing the wrong lender, the wrong type of home, failing to get a thorough home inspection and problems with the title. Do not buy a home without a real estate agent to represent your best interests. Buying a home through an agent that represents your best interests costs you nothing and can save you thousands.

The seller pays your real estate agent s fees. Here are some of the most common mistakes buyers make, which often costs thousands of dollars, large investments of time and loads of grief: Plan Before You Purchase. Make sure to sit down with your real estate agent and map out a strategy. Purchasing a home is an emotional experience. Don t let just one aspect of the home drive your decision. Where would you like to live?

Try to answer the following questions. How far do I want to commute? Get pre- approved! How much home can I afford? What type of home do you want? Get The Right Lender.

Come out of this exercise comfortable with your area and your mortgage. There are many types of loans available and getting the right one for your situation is crucial. Some are online and some local. There are also many lenders vying for your business. Getting a good local lender is crucial. A good lender will make sure you get the right loan and rate.

Your real estate agent should be able to make recommendations from lenders they have experience with. Identify Your Opportunities. You real estate agent is a excellent resource for finding deals. If you re looking for a deal, you need to know where they are. They work in your market and probably know of several sellers that may have special circumstances. Work with your agent on this and you may be able to save yourself thousands.

These circumstances could be divorce, relocation or loss of job. Get A Good Home Inspector. Bad inspectors tend to overlook a lot of problems. Just like any profession, there are both good and bad inspectors. You want an inspector that will scrutinize every aspect of your home. You do not want to purchase a home that has structural or other serious defects because the home inspector overlooked them. Your real estate agent knows the industry and can recommend good inspectors.

This could cost you big! Purchasing a home with a" clouded" title can be both financially and emotionally draining. Not Getting Clear Title. Learning after the fact the previous owner still owed contractors money for the finished basement on your property which is now a lien against your property causes a lot of grief. Don t Waste Time. Your real estate agent will help you purchase title insurance and make sure the title to the property is free and clear. Home buyers can waste valuable hours in front of computers searching for homes online.

Let your real estate agent save you that time to spend on what is important to you like your friends, family and work. Most times the homes you find are not the best deals. Let your agent find the right home and notify you when it s available. It is very easy to forget about resale when you are house hunting. Don t Forget About Resale. As you tour homes, try to put yourself into the perspective of a seller.

When you buy you should also be thinking about the time it comes to sell. There may be some quirky characteristics that draw you, but homes with only one closet may be hard to resell when the time comes. Do Go Back and Check the Neighborhood. But what happens there on the weekdays or after dark? Most home buyers do their shopping on the weekends. Does the passing street fill up with cars during commute times?

The only way to answer these questions is by checking the neighborhood at various times. Do the neighbors have their stereos blaring? Do the Final Walkthrough. Before closing, make sure you check to see any requested repairs have been completed. Not completing the final walkthrough can be a crucial mistake. Make sure there is no damage you were unaware of and that nothing else has changed. If you can afford to purchase a home and don t actually purchase a home, you will lose out on tax deductions, appreciation in the value of the home and the generation of home equity.

Any problems after the purchase are yours. 1Not Buying at All. Not buying, when you can is perhaps the worst mistake of all.

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Boston Is Also An Expensive City - Finance and Real Estate Blog:

One of the oldest cities in the United States, Boston currently houses more universities and colleges than any city in the country. The city itself has only 573, 000 residents and is actually geographically quite small for a major city.

Look Further And You Will Discover The Perfect Germany Property In Berlin - Finance and Real Estate:

If you were to take a closer look at the city of Berlin, you would quickly discover a lot of things. From the economic standpoint of view, Berlin is doing just fine, having an enviable economy and not only.

Another Thing To Watch Out For Is The Escrow Service That The Bank Uses - Finance and Real Estate Articles:

When a bank forecloses, they take ownership of the property, usually in order to resell it in hopes of earning back some of their money. Bad for the home owner, since you can, good for you often get bank- owned foreclosure real estate for a song.

Say You Are Advertising A Property On 123 Elm Street

Category: Finance, Real Estate.

Would you trust a financial advisor that was not able to track your investments and tell you which ones were doing well and which ones should be reconsidered? But I would also bet that there are a lot of real estate agents out there that are doing the same thing with their own money.

I bet you wouldn t. Every piece of advertising and marketing that is sent out, posted and published is an investment. So why would you run ad campaigns and not be able to track which ones are doing well for you and which ones should be reconsidered? It s an investment in your business, an investment towards future profits. Real estate advertising takes a multi- medium approach. One way to see which advertising is generating the most response is to track the number of calls coming in from those ads. Most agents will advertise in newspapers, with postcards, Homes magazines, property signs, etc.

You could keep a tally by asking every person that calls you what ad they are calling from. First of all, it disrupts the natural flow of any conversation and rapport that you are trying to establish with the caller. However, this approach has draw backs. Secondly, most people won t remember where they saw the ad or picked up your number so the information may not be reliable. This can be accomplished with a phone number with multiple extensions that can be applied to each ad. A much easier and dependable way to track your advertising dollars is to have the tracking be automated. Here is an example.

To get maximum exposure for the listing you are going all out and posting an ad in the newspaper, you are highlighting, having postcards printed the property on your website, having full color brochures available at the location and providing a toll free number on your sign rider for people to get information. Say you are advertising a property on 123 Elm Street. With an ad tracking toll free number, each of these ads can have a different extension yet the same information about the property on 123 Elm Street will be in each one. Ad tracking toll free number systems will generate reports for you daily, monthly, weekly, etc. This makes figuring out which ads are good investments a no- brainer. This allows you to concentrate on the leads coming in while the system gathers the data and puts it together for you to evaluate your advertising investments.

This is a good strategy if you can then streamline and focus your advertising on what works the best. To get the widest possible exposure for advertising and property listings, it is often necessary for real estate agents to throw a wide net. You wouldn t trust your money with a financial advisor who couldn t track your investments. Why would you do the same thing with your advertising dollars?

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This Makes Buying Or Moving Into A Valrico Home Is A Good Choice - Finance and Real Estate Articles:

Located north of Tampa, Valrico is an unincorporated community within the Hillsborough County, featuring the typical, Florida adavantages and disadvantages of a small town. If you want to relocate to Tampa Bay Area, or from Tampa, Florida to a smaller town, one of the options to be considered is Valrico.

Andorra Property - Finance and Real Estate Articles:

Apartments and chalet prices in Andorra, second only to Monaco in popularity among Europe s tax havens, have risen consistently over the last decade by an average of ten per cent a year, and in the last two years by over fifteen per cent. A lot of tourists, some of whom end up buying a property in Andorra, delayed their visit or went elsewhere. Andorra has unusually high demand for property as there are three streams of buyers: An active local market, international buyers looking for residency in a tax haven that offers residents a zero rated tax rate, and second home buyers looking for a ski property in the Pyrenees.

For Example, There Are Tampa Real Estate Agents That Specialize In The Luxury Home Market - Finance and Real Estate Blog:

Over the course of the past fifteen years, the New Tampa real estate market has been constantly expanding.