Build A Real Estate Empire Around Foreclosed Homes
Posted on February 2, 2009
Filed Under Foreclosed Homes, Foreclosed Houses | Leave a Comment
By D.C. Fawcett, Business Building Coach to the Foreclosure Industry
When real estate investors evaluate their options for securing deals and making profits, there are several things that may come to mind. Whether its owning rental properties, fixing up properties in disrepair, or buying foreclosed homes, investing is still based on similar principles, such as seller motivation. After all, buying foreclosed homes at quality prices means working with sellers who are more motivated, be they homeowners or the bank.
Where do most people turn when they seek opportunities in buying foreclosed homes? Sure, they might take a look at foreclosure listings that comes from free or fee-based sources. They can also market their services and attract opportunities to buy foreclosed homes. While these techniques may lead to productive and profitable deals, they also can be time and cash intensive.
Another option for investing in foreclosures is the world of bank owned foreclosed homes. When a property is lost via foreclosure it goes back to the bank and then becomes one of the now thousands of bank owned foreclosed homes (or REO properties) on the market today. How do you start buying foreclosed homes from the bank in your business?
One key piece of the puzzle is to work with a real estate agent who specializes in bank owned foreclosed homes. With the abundance of bank owned foreclosed homes out there, more and more realtors are realizing that investors are buying foreclosed homes and can provide you with foreclosure listings to aid in your own pursuit. A great realtor can dramatically reduce your commitment of time and effort, while still fueling the growth of your business.
Despite the leads you can generate from foreclosure listings and the opportunities that exist with bank owned foreclosed homes, I think buying foreclosed homes also can be risky for the investor because you need to know what you are doing. Whether you’re just curious how to make a little extra money with buying foreclosed homes or really want to pursue a serious business, you owe it to yourself to seize the current opportunity and pursue it the way a profitable business should be, which is with the proper training.
In today’s sluggish but opportunity-rich real estate market, buying foreclosed homes is as much as part of investing as any other part of the business. Make sure you have a steady and reliable source of foreclosure listings for buying foreclosed homes because the deals are out there. I also suggest that you commit yourself to real estate training, and your pursuit of buying foreclosed homes will be both more productive and more rewarding. In closing, I wish you the very best in success in all of your investing pursuits and in business as a whole.
Boise Real Estate - Where is the Market
Posted on March 9, 2010
Filed Under Foreclosed Homes | 2 Comments
The Boise real estate market has taken a hit just like every other market in the country, but there still has to be people that have to move and people that have to sell. Then there are the people that want to buy or sell because they just can’t pass up the great deals that are out there.
Some areas of the Boise real estate market are holding value better than others.
The Southeast Boise real estate market is doing pretty well considering the times and if you are looking to buy in the SE Boise area, you probably will not get quite as good of a deal as you would if you were to go more to the west.
The other areas that are close to downtown Boise are holding up pretty well too. Location, location, location is what you always hear with the Boise real estate market, and it really comes into play in there down market times. If you are looking to live in the Northeast Boise or North Boise you might not get quite as good of a deal. Boise.
If you are really looking to purchase and get a great buy. If you want a great deal in a great location, look at West Meridian. There is a ton of new construction there that is sitting empty and homes that are going to foreclosure. Some great deals will be in subdivisions like Paramount, Lochsa Falls, and Bridgetower Subdivisions.
The Star and Middleton, which area about 10 miles east of the primary market are really ripe for the picking. Because of these cities being out of the way a bit and a lot of new construction that is vacant, you can find some excellent buys here. There are homes that were originally listed for 1.1 million that are on the market for less than 500k, and homes that were originally 400k that you could pick up for 250k-300k.
Foreclosed (bank owned or R.E.O.)are abundant, but you will find that many of them require that you make some improvements such such as the usual touch up and sometimes some carpet. Some are left in exceptional condition and others are missing all fixtures and smell like pet pee. Interest rates are amazing right now. On Friday some banks were offering 5.25% for conventional purchases. A great rating for your credit is over 720 and if you put down 20% you will be getting the better rates.
There is financing available out there. The options are less attractive for investment purchase and refinance, but I found a bank that is offering amazing deals. You can even find 100% loans still out there, but 95% is more typical!! It’s called Rural Development or R.D. and this loan is a federally secured loan. These loans are available for properties in Kuna, Star, and Middleton. Also, still available but not sure for how long is IFHA 100% financing for people with good credit.
The program is called “Good Credit Rewards.” FHA financing is available with a 3.5% down payment which is an achievable goad. If you have yet to purchase and are waiting on the sidelines, it will probably be a good time for many months to come. Whether you are going to buy in Boise, Eagle, Meridian, Nampa, or somewhere else, make sure that you have all the information on the market that you need to make the right decision.
Ben Janke
http://www.articlesbase.com/business-articles/boise-real-estate-where-is-the-market-682875.html
Posted on March 8, 2010
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Posted on March 8, 2010
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Posted on March 5, 2010
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Growing Up With Credit
Posted on March 3, 2010
Filed Under free foreclosure houses | 6 Comments
As a young adult, there are a few key moments in your life when you feel truly grown up. Graduating from high school, getting your first car, moving out on your ownâthese are the classics. But in the past few decades, another more dangerous (financially, at least) rite of passage has emerged–the credit card.
I got my first Visa at the end of senior year, which shouldn’t be surprising considering the card offers started rolling in as soon as I graduated junior high (nowadays, my friends say the offers start arriving for the kids when they’re still in diapers). Problem was, no one ever explained to me how credit worked. I remember my jaw dropping when I opened my first bill and found, to my delight, that I only owed $10–the minimum payment. I knew I had dropped at least a few hundred bucks on textbooks (and CDs and clothes and so on), but I only had to pay a measly ten! I felt like I had won the lotteryâ¦or at least stumbled upon the secret to living the good life.
Until a few years down the road, that is, when I left college with a degree–and more than $10,000 in credit debt. I had always thought of debt as something that only happened to wild spenders, the kind of people who buy a new, larger big-screen TV every Christmas. But now I know it can happen to anyone. We’re not in a credit meltdown because Americans are over-the-top greedy or materialistic. I think it’s because no one ever told us how to make good credit choices (or we were too stubborn to listen when they did).
Back when my parents were in high school, they had to take home economics. We poke fun at home ec today (between the sewing, cooking, and cleaning, it’s so 1950s homemaker), but those classes taught young adults how to survive in that time period. When I graduated, I couldn’t cook a meal to save my life, had to take my jeans to the tailor for hemming (which I still do), and didn’t really know what debt was.
We need to do more to help our kids handle today’s obstacles. And until the public school system picks up on the idea, it’s up to us to teach them–and ourselves–how to spend wisely.
If you swipe your cards in front of your little ones, they probably think you’re paying with magic, not money. Make sure they understand everything that goes on the card also goes on the bill–and that real money comes out of your checking account to pay that balance. With older kids, honesty is even more important. You probably tell them money doesn’t grow on trees, but if you treat your credit card like a money tree, they won’t believe you–and they’re likely to repeat your same mistakes.
Since you can’t really preach what you don’t follow, you might need to re-educate yourself. If you’re carrying credit card debt, stop. Don’t apply for any new cards or loans. Quit spending more than you earn. Can’t figure out how? That’s a sign it’s time to make a budget and identify places to cut back.
Pay your credit card off in full each month, or at the very least, make more than the minimum payment. Maybe you signed up for the low promotional rate when you got your card, but most credit companies hike that rate up to 18-40 percent after the first few months. Ask yourself, would you pay $300 for something that was marked $100 in the store? Of course not! But that’s what you’re doing in the long run when you only make minimum payments that barely cover interest. Credit card companies aren’t giving you a break because they’re generous. They know that the less you pay each month, the longer you will have to keep paying, giving them more money in the process. Wouldn’t you rather keep that cash for your family?
All it takes to change your credit habits is motivation. Changing your past is not so easy. If you’re overwhelmed by credit card bills or facing foreclosure, you don’t have to go it alone. DebtStoppers can help. Contact one of our attorneys for a free one-on-one debt analysis and find out how to conquer your finances and keep your house. Just because you never passed Credit Card 101 doesn’t mean it’s too late to learn.
Debt Stoppers
http://www.articlesbase.com/credit-articles/growing-up-with-credit-671175.html
Investing During a Recession
Posted on March 3, 2010
Filed Under free foreclosure homes listing | 12 Comments
It can be scary to invest in anything during a recession. We all have visions of the great depression and bread lines and people selling apples. The idea of putting your money into anything can be frightening in this day and age. However, real estate should never be looked upon as an ordinary investment.
Real estate is one of the few investments that we actually not only can use, but need. Everyone needs a place to live. And real estate has systematically proven to have risen in value over the past several decades. Yes, you are paying interest in a mortgage for your home, but you are also getting a tax write off for the interest as well as a write off for any property taxes that are paid.
The mortgage rates have not been as low as they are now since the 1960s. This is an ideal time to purchase and take advantage not only of the low interest rates, but also the low prices on homes. Because there are so many more homes on the market than buyers, the price of homes in most areas has fallen considerably. On top of that, people who overextended themselves in the early part of the century are finding themselves in foreclosure.
Now is the time to buy and buy cheap. Do not feel intimidated by an agent who tells you that you are going to “insult” someone if you offer a low price for a home. The agent wants you to spend as much money as possible because they get a commission off of the sale. Use your head and take a look at the market. When you are buying a home in a recession, consider the following:
Is The Home In Foreclosure?
If the home is owned by the bank, you should be prepared to offer a lot less than the asking price. Do not allow an agent to sway you when it comes to making an offer. If they use any tricks such as “I do not want to present such a low offer,” tell them that you will find someone else who will. Real estate agents are a dime a dozen, especially in the market today. If the home is in foreclosure, offer at least 20 percent less than the asking price.
How Long Has The Home Been On The Market?
A few years ago, a home that was on the market for several months was either priced too high or there was something significantly wrong with the home. Nowadays, homes stay on the market for 90 days as a matter of routine. Never make a really low offer on a home that is fresh on the market unless you know the home is in foreclosure or about to become foreclosed upon. Feel free to make low offers on those homes that have been on the market for a month or so. Those that have been on the market for a year are owned by people who are willing to wait out the storm and will most likely not be sold for a low price.
Why Is The Owner Selling?
You can find this out by directly asking or looking around. If the home is in a state of disrepair, chances are that there are financial problems. You can offer a significant amount less. If the owner has another home that they are buying, you can also offer less.
Make sure you do your homework and do not be afraid to invest during a real estate recession. Contrary to what you may have heard, this is the best time to buy a home.
Heather Seitz
http://www.articlesbase.com/finance-articles/investing-during-a-recession-686697.html
What To Expect From Your Listing Agent
Posted on March 3, 2010
Filed Under foreclosure home listing | 11 Comments
A good listing agent really serves 3 purposes. They market and advocate, they organize and schedule and finally they negotiate and protect. In general, a listing agent really earns their money. In fact, I have always felt it is much more work to list than to sell. But, for most professionals it is good to have a balance of listings and buying clientele.
So when you list your property with an agent what marketing services can you expect? Well, the listing agent should get the property photographed and posted on the Multiple Listing Service quickly. A sign is still a very useful tool and should be posted within days. Newspaper and real estate publications take more time to arrange with print schedules. But, your agent should have made arrangements for at least one printed ad. On South Padre, an agencies web presence is a crucial sales tool as most of our buyers are distance purchasers. A posting and description on their website should be achieved quickly for maximum response. Other sites like Realtor.com are available to those agents with realtor designations and make powerful sales tools.
Once the word is out on your property the agent takes on a new role. They must arrange for showings with clients who have inquired about a listing and allow other agents access. This is easily achieved with a lockbox but, more of a challenge for owners who live in the home or have pets, or renters, etc. The agent must also obtain answers to questions and know every little detail so that it can be rapidly conveyed to interested parties or other agents. It is the listing agents responsibility to gather accurate facts should an unusual question arise.
Once a contract comes in the listing agent is responsible for mediation and fair play between parties. There is a protocol that is to be followed when multiple offers are made to ensure that all involved are fairly represented. The listing agent must make an unbiased presentation of all contracts for the owner to choose from. When a contract is being negotiated, the listing agent is the advocate for the owner. They must be trusted to handle conflicts and make requests with the sellers interests in mind. Agents who lose their temper, act slowly or are unpleasant to their fellow agents will only bring disagreement and stress to a deal. Deals are saved or lost by the agents ability to mediate and problem solve. When a contract is negotiated and in title the agent still continues to work. They must supply information like the sellers disclosure, survey, and condo declarations within a timely fashion. Then they must work closely with the title company to ensure that all aspects of the deal are progressing. It is not unusual to find a listing agent struggling to obtain a lost survey, provide comps for appraisers, or diligently following up with a slow financing institution.
A good listing agent is a powerful ally that can make selling your property a lot less stressful. Take your time in choosing one that offers the best services and makes you comfortable. You may be spending a lot of phone time together and must trust them with your property.
Wendy Hauschildt
http://www.articlesbase.com/real-estate-articles/what-to-expect-from-your-listing-agent-127659.html
Create a Comfortable Future for Your Family in a Bank-owned Home Purchase
Posted on March 3, 2010
Filed Under foreclosure home for sale | Leave a Comment
The foreclosure routine differs from state to state because of varying laws, but there are multiple unifying aspects. In basic terms, a foreclosure happens when a mortgage firm seizes a property from its owner because they are no longer making payments toward the loan. There are multiple steps to this process. The first step is a notice of default, which is typically filed with the county recorder’s office about three to six months after the borrower has stopped fulfilling their financial obligation.
Once a notice of default is filed, the property owner has a length of time to have the loan restored by negotiating with the mortgage company on terms to catch up on the loan or to renegotiate the terms of the loan. If the borrower is unable or does not agree to terms to get the loan current, a notice of sale is issued that gives a date for the property to be put up for auction.
Once a notice of auction is issued, the bank intends to carry through on its right to repossess the property for the reason of nonpayment. Normally, an auction takes place to sell the home for the maximum price. At the auction, the mortgage company will set an opening bid, or reserve, which generally amounts to the remainder of the loan and unpaid interest and any other fees associated with the process, such as legal fees. If no bids meet the reserve price, the lender will buy the home, making the property bank-owned or real estate-owned. The lender often buys homes sold at auction because the home is valued at less than what is owed to the lender. When you buy a bank-owned home, it generally comes with a clean title. However, in the majority of instances the buyer assumes liability for property taxes.
A home in foreclosure can be bought outside of the auction process. Interested buyers are able to contact the owner and endeavor to bargain for a short sale, which is a scenario where the lender agrees to sell the home for less than is due on the loan. A short sale is characteristically more complex than a traditional transaction, but buyers can find some good deals if they are prepared to work with the seller and their mortgage company to bargain for a deal.
The initial step in a short sale is to come to an agreement on price with the seller. Once that is through, the buyer will have to make contact with the loss-mitigation department of the bank that owns the mortgage on the property. The loss-mitigation representative will be the person who can consent to the short sale and inform you to what information is needed before an agreement can be reached.
Because a short sale can be involved, it is important to retain the services of an experienced real estate attorney who can represent you during the process. Buyers should also be alerted that homes purchased in a short sale are sold as found.
Anita
http://www.articlesbase.com/real-estate-articles/create-a-comfortable-future-for-your-family-in-a-bankowned-home-purchase-742899.html
