Challenges Facing Real Estate Investors In Today’s Market

Just recently, real estate investors had a level playing field where they could do any type of deals with few or no restrictions. Things have changed with the real estate bubble forcing real estate investors to re-discover themselves to succeed.

Here are a few things that affect real estate investing business.

1) Taking over mortgage payments

This is one of the most favorable real estate investing business models with most investors. Deals with lease options, rent to own, owner financing, form a big part of most real estate investors income.

Lately more and more states are implementing tight rules that require that you disclose to the lender before taking over payments.

They also require you to disclose to the buyer. Some states do not allow you to do a lease option more than 180 days. This means you have to keep up with lots of paperwork.

2) No stated income loans
Gone are the days when self employed people could easily get loans. Previously you just needed to provide proof of assets like bank statements and you could get funded for a mortgage.

You can no longer do this, so if you are self employed you have to re-think how to acquire your properties.

3) Hard money credit based?
This comes as a surprise that some hard money lenders need you to fully disclose your income and lend based on your credit.

They have more relaxed rules, but you still have to shop for hard money lenders who lend based only on property.

4) Limit on number of properties you can finance
Today, if you have a credit score of 720 or more and your income is fully documented, you can only finance up to 10 properties.

You must also show cash reserves of at least 6 months your monthly payment for each property.

Of course if you are self employed you cannot document your income!

5) Seasoning rules
You cannot refinance a property to cash out until you keep it for 12 months even if you bought it with cash. In other words you cannot just move on to the next deal when you want!

If you buy rental properties, you have to take this into account.

If you are self employed, can you refinance if you cannot document your income?

6) No refinancing properties held in an LLC
You must hold a property in your personal name in order to refinance. If they are held in an LLC, you must transfer them to your personal name for 6 months before you can refinance.

So what do these new limitations mean? Is it the end of real estate investing as we knew it?

The answer is no. Real estate investors know how to re-discover themselves and are flexible enough to adapt to changing market forces.

By: kahethu

Tips to Sell Your House Quickly

Every individual looks for distinct ways to sell house quickly and fast. It probably may occur due to number of reasons like Relocation, Financial Difficulties, Negative Equity, Divorce or Separation, Repossessions. In such a situation one wishes the process of selling a house to be hassle free. Here are some of the tips that may help to achieve a quick house sale in Berkshire.

Once selling a house is decided, you must see what you want to include in its sale. Generally, the fittings and fixtures are included in basic price but movables can be negotiated. To sell property fast and to avoid clutter later, dispose of any items that you do not need any longer before you start with the sale process.

You have to give certain useful documents connected with your property to your agent like gas & electrical certificate checks, building regulations certificates, council tax, insurance bills, etc. Such documents are required to present to your potential buyers and if you have these at hand then it will allow for you to sell your house fast.

To calculate the correct value of your house, a survey is the most accurate means as it is carried out by a qualified individual namely a RICS survey. Speaking to some local estate agents can be a good idea to get an idea but do bear in mind that an agent will only ever be able to give their opinion and they do tend to inflate the price in order to generate business.

Selling the property through an estate agent involves many significant risks. In fact it could be expensive and time consuming as well. If you decide to involve an estate agent, they will ask you for information regarding the property before requesting for viewings should there be interest. Any potential buyer will want to see the house in a prestige and tidy condition to help them visualize a property that they could see themselves living in. If you decide to go with an agent then do bear this in mind and if you can get things tidied up and neat then this will help a great deal.

Many people do not realise just how long it can even take for a house to be sold. According to www.house.co.uk the average time for a property to sell is 207 days, that is over 6.5 months. Can you afford to wait that long? With the residential market at record lows, selling your house on the open market is more difficult than ever, and with lenders changing lending criteria many people are simply finding it difficult to get a mortgage which has resulted in many broken chains; Is this happening to you?

There are many things to consider when looking at selling your property. If you need to sell quickly then maybe an estate agent is not the best means. If you can afford to wait then great, you can give it a try however if you feel you do not want to risk the uncertainty of not selling and want a guaranteed solution then maybe a cash buyer would be a suitable solution for you. A cash buyer typically is able to raise cash finance quickly resulting in a quick sale of usually 28 days. They also agree to pay all your fees and are happy to complete within a time to suit you.

in reference to:

"Tips to Sell Your House Quickly Edit Article |"
- http://www.articlesbase.com/real-estate-articles/tips-to-sell-your-house-quickly-4102925.html (view on Google Sidewiki)

Discovering Your Dream Apartment

Relocation is a difficult task for any individual. There are many plans and preparations that have to be made prior to settling in for the long run. One of the most difficult aspects of moving is finding the right apartment that best suits your needs, and also fulfills a couple of dreams at the same time. In this article, you will learn how to discover your dream apartment.

One of the first things that you must do when attempting to discover your dream apartment is to think about the specifications that you want and need out of a rental unit. You may require only a one bedroom, but you may want a two bedroom so that one may be dedicated to your studies. You may need a shower due to mobility issues, but you may want a shower that it includes a built in seat for comfort.

The next thing that you should do is determine how much money that you have available for the down payment. You should also inspect your finances to determine the most that you can spend on the endeavor each month. This will ensure that once you find that dream apartment, you are able to pay for it on a monthly basis.

When researching apartments, it is best to research only those that you can afford. Reaching out to something you cannot afford can be very tempting, but you should never indulge in this temptation. You should evaluate each apartment that you are interested in by appointment.

When you arrive at the apartment for the appointment to look over it, there are many things that you should observe. Is the neighborhood nice and clean? Will you have tenants living above, or below you? Are the walls soundproof? Is the yard maintained? Is the building maintained? Is there plenty of room? Are your potential neighbors friendly? All of this is very important when choosing a dream apartment.

When researching apartments, it is generally best to go with a real estate company. However, if this is not an alternative, you should meet with the landlord and make observations about them. Are they professional? Do they maintain a professional appearance? Are they friendly? Do they seem approachable?

This is important because this is the individual that you will be compensating. It is best to ensure that they are friendly and professional. If not, even the best apartment can turn out to be a nightmare!

Once you find an apartment that you feel is appropriate, you should discuss the rules and responsibilities that you will be expected to abide by. You should also ensure that you get a signed document stating the rules and responsibilities of the landlord as well. By doing this, you can determine if this is the right choice for you and your unique set of circumstances.

If you find that you have discovered your dream apartment and are ready to move in, make an appointment with the landlord or representing Real Estate Company. You should clarify any issues that you have prior to signing any documentation. Once you find that you are satisfied with the responses, you may proceed with the paperwork.

It is imperative that you carefully review any and all paperwork that you sign. If you do not agree with a clause within the rental and/or lease agreement, then you should not sign the document. You should request a modification to the document to suit your liking. Be sure to stand firm in this.

Discovering your dream apartment can be a daunting task. However, if you are equipped with the proper knowledge and do your homework, you are sure to find a perfect match for your needs and the things that you want out of an apartment...


by: BMA Editorial Team 3

in reference to:

"Discovering Your Dream Apartment"
- http://real-estate-management.bestmanagementarticles.com/a-42441-discovering-your-dream-apartment.aspx (view on Google Sidewiki)

FSBO - You Can Sell Your Home Yourself

If it's time to buy a new home and you already decided to sell your house, wait a bit before you turn to a real estate agency.

Maybe this is your first time home selling, and you think it would be better to entrust the whole stuff to a professional. But what makes you think you can't do it on your own?

FSBO means 'For Sale By Owner' and it is used to describe home owners who sell their homes themselves and don't use a real estate company when they sell their homes and land.

Believe it or not, with the proper knowledge and the right help just about anyone can successfully sell (or buy) without using a real estate agency. Sometimes an owner can even do a better job than many real estate agents.

FSBO makes selling a home on your own easy. A growing percentage of homeowners are realizing how easy and economical it is to sell your own home without using real estate agents and agencies. You can save a lot on real estate commissions every time you sell your house. It is very important that your home's selling price is determined by you, not a real estate broker who takes a x% fee for selling your home.

It is recommended to get information about prices from as many sources as possible, for instance with the help of Real Estate Websites.

An agent may tell you that the main reason to use them rather than FSBO is that they can place your home in the Multiple Listing Service, and you can not. They may imply that your chances of selling without being in the MLS are next to nothing. Don't believe it. The truth is that up to one in 3 homes sell by owner and very few, if any, of those were MLS listed.

Usually buyers look at For Sale By Owners as well as listed homes. They don't only browse ads that are in the MLS, though realtors dreaming of that.

Honestly, you don't need a real estate agent to sell or purchase property - that's clear. Keep your money for something else and give a trial to rely on your own skills.

From Goarticles.com

Home Selling Tips On Real Estate Agents

There are some things in life that shouldn’t be taken easily. And for one reason or another, home selling is one of them.

Crucial to any home selling is the planning that occurs prior to it. It must start from building the structure. Even if you have no real intention, you must already preset in your mind the idea of selling your home. You must design it in such a way that your house would welcome buyers without prejudicing your own interests. Remember that to be able to do this you will need extra measures that would supply over all effects without disregarding your personal touches.

Apart from what has already been said, here are some of the tips in home selling:

Enlist the help of a real estate agent. He must be qualified enough that he could sell your house at the best possible price. However, the degree of qualification varies in your own judgment. For example, you want your agent to have a good background on your neighborhood. This component will help him give a more realistic price on your property.

And knowing the best price in your house is one good trick. Why? Because both you and the buyer will be justified in the price you have set. While it is your intention to get the highest pay for your property, you must also learn to protect the interest of your buyer through getting around the possibility of marketing your house in a much higher price.

Besides, quoting an unreasonably high price would inhibit your buyers from checking in your house. Offering a too low price, however, would put you on the down side. This will always be lose-lose situation since commission and tax payments would decrease your sale value.

Be informed on the structure of commission. After you have found an agent, you must start constructing the listing agreement. This is a form of contract that covers all specifics and other relevant information such as restrictions. Ensure to it that all dealings are transparent.

There are agents who request to have exclusive listing on the property. This only suggests that he is the sole broker and that you would not hire other brokers apart from him. To refrain yourself from being caught into bad situations, it is best that you limit your contract only in a span of 3 months so it would be easier for you to find other agents in case your initial choice didn’t turn out well.

The usual commission rate is 6% of the total price of the house. However, you can change the arrangement depending on what has been agreed upon.

Know the best timing for selling your house. Search for facts that would give you details regarding the length of time homes in your neighborhood stays in the market. This way, you can judge when is the best timing to put your property in the market.

It is important that your agent guides you in all dealings. Say fro the bids, he must give you knowledge on who to answer bids and the contingency clauses integrated in the bid.

You see, it all lies in your choice of real estate agent. You must find one that has the best caliber. It is not enough that he just know something, he must know everything. And when we say everything, it should run down even to the finest details the business has.

From Isnare.com

U.S. Commercial Real Estate

The United States of America is one of the largest countries in the whole world. It is made up of 50 states, which are semi-independent. There are a number of large cities in the U.S., including Washington D.C., Los Angeles, San Francisco and New York, to name a few.

There are numerous tourist attractions in the United States. These include The Statue of Liberty, The Grand Canyon, and Yosemite National Park, to name a few. There are also a wide variety of events occurring at different locations in the country all throughout the year, which attract numerous people worldwide. Some of the major events in the country include the Fourth of July, Thanksgiving, and Labor Day, to name a few. Watching and playing sports are also much loved pastimes in the country. The U.S. has professional teams for most sports, including basketball, baseball, football, soccer and hockey.

The United States is home to one of the largest commercial real estate industries in the whole world. In the late 1980s up to the early 1990s, the real estate industry in the United States experienced a major collapse. Since then, various efforts have been made to re-build the industry to its present competitive state. The tax code was amended, and real estate investment trusts , or REITs, became public. Large private investors also became interested in the commercial real estate industry. Also, after the technology bubble popped in the 1990s, more and more people became interested in owning real property, and subsequently, investing in the commercial real estate industry.

The commercial real estate industry in the United States is stimulated by the country's economy, which is of a capitalist mixed type. The United States contributes approximately 20 percent of the gross products in the world. It is one of the largest importers and exporters of goods, and is one of the biggest industrial powers in the world.

Commercial real estate in the United States is now considered as a new asset class. In the past several years, the real estate industry has been flourishing, and has become more appealing than even the U.S. stock market. Currently, the values of office spaces and retail properties are still on the rise, while long-term interest rates remain at affordable levels. Several cities in the country have experienced the real estate boom, including New York, Los Angeles, Miami and Chicago. These characteristics make real estate a very attractive industry for investors to get into.

Although the recent subprime mortgage crisis has begun to affect even the commercial real estate industry, as seen in the decreasing prices of stocks of various mortgage companies, different analysts are still optimistic regarding the future of commercial real estate in the country. Various commercial real estate deals, involving hotels and business offices, are still getting finalized.

Moreover, a recent bill favoring the commercial real estate industry has recently been re-authorized by the U.S. Congress. The bill, known as the terrorism risk insurance program, provides adequate real estate coverage for different forms of terrorist attacks, such as nuclear, chemical, biologic or radiologic. This form of security is essential in the commercial real estate industry in the United States.

With all of these factors in play, the U.S. commercial real estate industry will surely continue growing in the years to come.

From Goarticles.com

Tips For Closing the For Sale By Owner Deal

Once the buyer signs the sales contract, you might feel the urge to relax. Don't sit back and kick your feet up just yet. Your work is not complete just yet. The buyer can still back out of the deal if certain things go wrong in these last steps of the for sale by owner process. Buyers tend to get cold feet at this point. They see other for sale by owner homes they like for a lower price. You have to take steps to make sure the buyer doesnt back out of the deal.

After the for sale by owner sales contract has been signed, the buyers lender will have an appraisal done to ensure that the borrower isnt asking for more money than your home is actually worth. The lender will not provide a loan if the home is appraised for less than the sale price. You can avoid this by having your own appraisal done when you are setting your price in the for sale by owner process. Alternatively, you can make sure that your price is comparable to that of similar homes sold in your neighborhood.

The lender might have your for sale by owner land surveyed to establish the property boundaries. In most cases, this doesnt present a problem. If your [for sale by owner property has not been surveyed in the last 50 years, has recently been subdivided between other people, or has a boundary that changes like a creek, then you should pay attention during this part of the process.

The buyer might have his own inspections done as allowed by the sales contract. These inspections are done at the buyers expense and include termite, roof, and general inspection. Be available during the inspection. Ask questions about anything you do not understand. If you so choose, you can have your own inspection completed. It could prove helpful if you need to dispute a report, but is not necessary. Your primary concern should be to fix problems and keep the buyer from backing out of the for sale by owner contract.

You should notify your lender that you will be paying off the balance of your mortgage and ask for a statement of your balance. Collect appliance instruction books and warranty information to give to the buyer. Finally, when you know the closing date, you should notify service providers like electricity, water, cable, and trash of your final billing date.

The for sale by owner closing date will be about 30 to 45 days from the date the sales contract is signed. Depending on your state, your real estate attorney might handle the closing. Alternatively, the lenders attorney might handle it and your attorney will act as your representative.

At the for sale by owner closing, the settlement statement is reviewed. This statement details the money received. This includes: the lenders check for the mortgage amount, buyers down payment, and the buyers earnest money deposit. The settlement statement also includes money that must be paid out: balance on the sellers current mortgage, real estate agent fees (if applicable), and closing costs. Finally, the statement will detail the amount you get to keep.

The title to the house is then transferred to the buyer and the process is complete. Your hard work has paid off.

From Goarticles.com