Posts Tagged ‘properties’

Cebu Rental Properties are among the most popular real estate amenities in the world today, as Cebu in the Philippines is one of the most popular vacation areas there is. The area is known for it’s awesome scenery and great activities.

Whether you are an investor or just looking to rent out a property there for your next trip, here is some information on Cebu Real Estate to help you find the best available.

First of all, Cebu Philippines Real Estate is so popular because of it’s pristine beaches, nightlife, and basically anything you want to do is there. The area is always filled with vacationers, but the great thing about it is that it’s not overcrowded, and you definitely have room to breathe, unlike some other cramped locations.

Whether you want to go fishing, scuba diving, or just plain relaxing on the beach, the opportunities here are endless. Even if you have no interest in the water at all, there is plenty to do in the town, and you definitely will not get bored staying here.

So where should you look to find the best Cebu rental properties? Usually I’d say the internet for just about anything without even thinking twice, but for whatever reason, most likely because the Philippines obviously aren’t as advanced technologically as the rest of the world, there isn’t a lot of Cebu property available online as of this writing.

There are a few sites available, and they might be worth checking out, but probably the top way is traditional-asking your friends who’ve either been to the area or are planning a trip there soon, and see if they know of any properties available in the area.

Don’t get me wrong-still check out the internet to see what’s online. Chances are, even among the relatively scant listings for the area, you will still be able to find great Cebu rental properties to fit your needs.

To save some good money, attempt to schedule your trip during a non peak season time, as you will definitely save a lot of cash doing it this way. Obviously, prices can be steep here, even though it’s not in America, because of the sheer volume of people vacationing there every month.

Also, you will save on virtually everything you do there by going during the less crowded months, such as renting surf boards, fishing guides, or anything else you want to do, as there will be less demand.

Of course, finally, make sure the Cebu rental properties you are looking into are within close proximity to the local attractions, as often times you can get taken by someone with a great price, but then come to find out that the condo is very far from the areas you want to be going to.

Good luck in finding the best Cebu rental properties, either for your upcoming vacation or for your next investment opportunity.

Santorini is considered as the jewel in the crown among all Greece Islands. Due to this reason this island has been splashed universally across brochures, posters, post cards and different Greece travel guides. This unique island fill with natural beauty attracts visitors to enjoy their golden moments and remember their dream tour at Santorini. The heavenly mediterranean atmosphere attracts people from different parts to buy their dream property and use those both resident and business purposes.

The unique looking black-sand beaches, the beautiful sun rise and sun set, sea, history and food will appeal to every tourist to stay at Santorini as long as possible. One may take a relaxing sunbathe or can visit nearby tourist destinations. For those who want to experience the nightlife of Santorini, they will be immersed in the Greek culture, but will be surprised at the abundance of American music that is played for the tourists. The island has a lot to offer for a relaxed lifestyle such as: low crime rate, cheap cost of living, beautiful beaches and a healthy diet.

Santorini is also known for its galleries and wineries which are both great for experiencing the culture of the island. Santorini cannot be visited without visiting the active volcano, which is covered in the famous hot springs. Whatever you choose to do the architecture, scenery and sunsets of Santorini will bring you back again and again.

Not surprisingly, painters, potters and jewelers have been inspired by the pleasant surroundings to set up studios and shops here. Culture lovers can explore a wealth of monuments and ancient sites, there are beach and water sports galore for the adventurous, and a wide selection of traditional authentic tavern and bars for night owls, especially in the capital, Fira.

The Santorini property market is another aspect that appeals to all ages and especially young couples have been so impressed that they have made the move permanently. The growth of property is very high i.e. some prices rise by as much as 300 per cent in five years – sometimes even 100 per cent in one year.

Accessibility is also much easier these days. Santorini international airport receives direct, low-cost charter-flights from the UK; along with regular ferry services and daily high-speed ferries to and from Athens and high-speed catamarans from Crete.

In the last ten years, the communications and infrastructure have improved remarkably, with the construction of high-standard roads, good transport systems, clean drinking water, new sewage and electrical systems, hospitals and a university. It’s accessible all-year-round, but remember, it’s a very small island that slows downs in winter.

Property at Kamari Beach:

The property in Kamari beach is located 15 meters away from the main bus station and approximately 70 meters away from the beach. It is a good spot to build either houses or even stores and make a profit through rent. Since Kamari beach is the most touristic village of Santorini, it could be a good place to invest. The land is 650 sq. metres and its 510 sq. metres could be used for building. At the moment there had been engineering plans for a provisional building but they haven’t been processed to built yet.

As an established democracy, Greece is a fully-fledged member of Europe, which means that for Europeans the purchasing process is quick and simple. It is also giving Spain a run for its money these days on the British package-holidaymaker front, which is good news for anyone planning to rent out their property. There is a great demand during the summer season and many tour operators put properties on their books after they meet government-regulated requirements for short-term rental.

~ Property options from Bangalore, Hyderabad, Mysore & Goa to be showcased ~

Bangalore, 28th June 2008: Makaan.com, the fastest growing online real estate portal by People Group, inaugurated its property show in Bangalore today. The Bangalore Property show is the 1st in the city & 6th in the nationwide series of similar events that Makaan.com is organizing. The two-day show being held at Hotel Grand Ashoka, Bangalore was inaugurated by Mr. Anupam Mittal, CMD People Group in the presence of Supermodel Ms. Anchal Kumar.

This property show by Makaan.com is the largest of its kind that Bangalore has seen. 45 leading developers have showcased over 200-property options. Properties ranging from 5 lac to 5 crore are on display at the show. Property seekers will get to choose from options of plots, villas and apartments. Apart from presenting projects from Bangalore, developers at the show have also showcased multiple projects from Hyderabad, Mysore & Goa.

Commenting on the occasion, Mr. Anupam Mittal said,
“Bangalore Real Estate is a burgeoning market with young professionals flocking to the IT city in search of career fulfillment. Our show aims to cater to the housing needs of these upwardly mobile group, and we are looking at providing them with a platform to enable them to engage in a meaningful discussion with property seller”.

Adds, Vijay Reddy, Vice President – Reddy Structures (associate sponsor of the show) “We are very pleased to support the Makaan.com Property Show. We have been making great progress in the last few years, and through this show, we expect to reach a large number of serious property seekers and showcase our projects. We are looking forward to a long-term positive association with Makaan.com”.

Bangalore is amongst the fastest growing cities in India and is experiencing a rapid need for increase in infrastructure. As per Makaan.com data, the city ranks among the top three property hotspots in India. Every month the website gets over 1.22 lac user who are looking for property in Bangalore.

Reddy Structures, in association with Greater Bangalore Estates & Gravity group are co-sponsoring the show. Redefining the way properties are bought and sold, Makaan.com is aggressively expanding customer reach through the property show route, and plans to host 15 such property shows across the country this year.

About Makaan.com
Makaan.com is an online real-estate service promoted by People Interactive; the consumer Internet division of the Anupam Mittal led People Group. This site was conceived to explore and invent opportunities in the online real-estate space, and has within months of its launch managed to attract more than 8.6 lac unique visitors every month.Makaan.com is committed to helping users make wise and profitable decisions related to buying, selling, renting and leasing of properties, in India and key global geographies. The site aims to be user friendly, and has recently launched ‘Makaan Mobile’- India’s 1st and only SMS based mobile application for property sellers, in addition to introducing services such as ClickPay – an offering that enables a property seller to list multiple properties in one ad and a unique rating system, where users rate the properties listed on the site. Makaan.com has Pan India presence, with physical offices in top 13 cities of India, including Delhi, Mumbai, Kolkata, Bangalore, Chennai, Hyderabad, Ahmedabad, Pune, Chandigarh, Jaipur, Kochi, Vizag and Vijaywada.

About People Interactive
People Interactive was founded in 1997 to help architect India’s Internet landscape. Today it is one of India’s leading Internet companies and boasts brands such as Shaadi.com, Shaadi.com Centres, Fropper.com, Makaan.com and Astrolife.com. The company is focussed on discovering and developing scalable Internet business models around communities and classifieds. It prides itself in being a pioneer of Indo-centric Internet business models and believes in innovation led growth.

The company won the IT People Award 2007 for Excellence in Information Technology, and was also awarded the Red Herring Asia Top 100 Awards in 2006. In September 2007 Business Today recognized the company’s flagship brand – Shaadi.com as one of the Top 10 Marketers in the country. Shaadi.com was also felicitated at the WEB18 ‘Genius of the Web’ Awards 2007, as the best E-Commerce site (Matrimony), and Shaadi.com Centres won the ‘Franchisor of the Year Award’ for the third consecutive year in 2007. People Interactive was also named as one of the Top 500 companies in Deloitte Technology Fast 500 – Asia Pacific Awards 2007.

People Interactive is a Sequoia Capital backed company and is part of the Anupam Mittal led People Group.

For further information please contact:
Neha Chadha
9810627134
neha.c@peopleinteractive.in
www.makaan.com

If you are a novice property investor looking for information on investment properties for beginners, this article should help make your life easier. It details eight tips that will help you in your quest to become a landlord.

Don’t believe the hype. It doesn’t matter if it is negative or positive hype about investing in property; do not take anything at face value. Always consider whether the person or media that is putting out the story might have ulterior motives.

Anyone interesting in selling you property or property products will only talk about the positives and the value of investing in property. The media likes to sensationalise the negatives, because that is what sells newspapers. You have to look at the evidence and seek impartial advice and make up your own mind.

You have to believe. You have to have a belief that you can make money from property. At times it can seem as though the property investing World is already saturated with people more experienced than you. You have to believe that there is room for you as well.

If you start off with negative self belief then you are on a slippery slope to failure and before you know it you will be another one of those that have “tried” property investing, but found that there was no money in it.

Decide why you want to invest and formulate a strategy around this reason. Being clear why you want to invest in property can create compelling reasons that will push you forward towards your goals, even when things are not going well. Once you know why you are investing you can then build a clear strategy based around what your goals and aims are.

Research and make sure the figures add up. Don’t just dive into investing in a location because you have heard a rumour on a forum that it “might” be the next property hot spot. You need to do your research and your own due diligence.

It will be hard work to begin with and it might take you several months to find the right location and the right type of property, but after that you can probably continue to invest in the same location for several years, so the initial hard work is well worth it and should pay off in the end.

It’s a numbers game. You have to be prepared to look at hundreds of properties to find a deal that meets your criteria and that corresponds with the strategy you have set out. This doesn’t necessarily mean making hundreds of phone calls a month to different estate agents or vendors.

You might achieve your goal by simply browsing the local newspaper which normally has at least a couple of hundred properties in, although a more proactive method is usually needed to be really successfully.

Have effective exit strategies in place. One of the main reasons many beginners fail in their efforts to become professional property investors or developers, is that they don’t have exit strategies in place.

You need to know what route you are going to take to get out of a deal if things do not go according to plan. You also need to have an idea of how you are going to off load the property in the long run, if you don’t plan to hold onto it forever.

Take a long term view. Successful property investors take a long term view of the property market. Many of the budding investors that have failed, have failed because they wanted to make a quick buck. If you are serious about learning how to become a landlord and being financially independent, then you have to take a long term view. This will help minimise your risk and will stop you from wanting to bail out if the property market goes through a bad patch.

Be careful of using property investment companies. There are a host of companies that claim to be able to buy investment properties for beginners, so that novices don’t have to do any of the work themselves. Some of these companies are good, many are terrible and a few are crooks.

I would advise you to learn the basics about what equates to a good property investment first, before you trust others to buy investment property for you. That way you can access the properties that they put in front of you and you will be able to tell if they are good or not, without being totally reliant on what the investment companies tell you.

If you are a beginner to making money from property, then by following the tips laid out here, you should be more equipped to go out and start hunting for those bargain properties. Keep in mind that people progress at different speeds and don’t get caught up in the thought that if you don’t become a millionaire in one month through property, then it’s not going to happen.

Find your own pace. However, make sure that you are also pushing yourself and forcing yourself to get out of your comfort zone because this is where the real growth, learning and wealth happens.

Not all real estate property types may be appropriate for new real estate investors. There are many factors to consider when making the decision to add real estate to an investment portfolio.

When deciding on a residential real estate investment strategy, some options for new investors to consider include:

Rental units

Rental units can be considered both long term and short term investments. Types of properties that may be considered for this category would include:

* Detached single family homes

* Attached single family homes

* Multi-Unit properties

* Condos/Townhomes

Being a Landlord

Not everyone has either the desire or inclination to be a landlord. Dealing with tenant and property issues can be very stressful and time consuming. One way to minimize the impact of being a landlord is to hire a professional property management company.

Hiring a professional property management company has several advantages:

* Allows owners of rental properties to be ‘shielded’ from dealing with tenant and property issues directly.

* Provides a buffer allowing the owners to maintain a hands off approach to managing their properties.

* May provide a less stressful experience

* Offers the ability to purchase real estate investments not immediately local to the investor.

* Provides a single contact point for all issues regarding the investment property.

Professional property managers are well versed and prepared to manage tenant and property issues as they arise. They will typically take care of all issues relating to the property.

Many offer their services at reasonable prices and rates while others can be quite expensive depending on additional services being offered. You may expect property managers to provide the following services:

* Advertise properties available

* Receive applications for tenancy

* Perform Credit and Background checks for applicants

* Recommend rental pricing

* Pay maintenance and/or repair bills for the owner

* Send monthly statements and rental income (Less any outstanding bills.

Typically these are deducted and itemized from the rental income and will appear on monthly statements)

Flipping or The Bane of New Investors

Often times, new investors in real estate are overly anxious to ‘flip’ properties and make a significant profit. Rumors of how friends or acquaintances have made allot of money is often the incentive for ‘flipping’.

The real estate market fluctuates greatly. Yesterdays great ‘flipping’ market may be (recent market trends as an example) tomorrows ‘Hold on to it’ market. While this is certainly a desirable quality of an investment property, it is and should not be the primary consideration for new real estate investors. The competition for this type of real estate investment is fierce and occupied by seasoned, experienced professional builders and investors

Property Types

Let’s discuss the various property type which may be considered by new real estate investors.

The selectionof the type of real estate property for investment purposes may be based on several factors.

These factors include:

* Financial considerations – How much can you afford?

* Availability of properties – What types of properties are available?

* Location – You’ve heard this one a thousand times – Location…Location…Location…

* Income potential – Does the property in question match your real estate investment strategy?

Detached and attached single family homes Single family homes whether attached or detached are often the first real estate property type new investors seek. In many areas, they offer the most availability of any property type.

Prices obviously vary greatly with these property types as well.

Multifamily Properties

Apartment units such as duplexes and triplexes should be considered as a viable option for new real estate investors.

Many investors and real estate professionals use apartment buildings as a point of entry to a portfolio of commercial real estate holdings and to build their equity before moving on to larger commercial real estate investments.

Duplexes, triplexes and fourplexes are two, three and four-unit buildings that may or may not be owner occupied.

Summary

Selecting an appropriate type of real estate property in which to invest is a primary consideration for all serious real estate investors.

Real estate investment strategies include the decision of whether or not to become actively involved in the management of the property. Professional property managers offer alternatives to assist in a “hands off” approach to owning residential income property.

Knowing there are options on the various types of properties to purchase as investment may provide new real estate investors the information needed to make that final decision to become a real estate investor.

End of Part 2

© Copyright 2008 Jennifer MacKay. All Rights Reserved.

Changing real estate trends and increasing economical pressures, buying a good property or a home can be a difficult job to do. A home buyer needs to do a thorough search to get the best deal for getting a worthy home. If you have decided to go for foreclosed properties, you need to consider few points that may help you to buy foreclosed properties within your budget constraints.

Do a home inspection:

If you desire to own a good home, you need to do inspection of the potential properties. Check for how long the property has been vacant. Collect information about the current owner of the property or house and reasons for its foreclosure. Insist on checking the property thoroughly so that you can understand each and every aspects of the building and look for its deferred maintenance issues like lawn care, foundation, cracking and chipped plant etc.

Get title insurance cover:

Sometimes, while buying foreclosed properties, buyers have to pay for title issues such as tax liens, unknown easements, mechanics liens etc. By getting a good title insurance cover, you can avoid these unnecessary liabilities and expect a better deal.

Check the ownership history:

It is important to cross-check the ownership history of the property that you are interested in. check, if the property has gone through continually changed ownership or not. Usually, people don’t consider properties with continued changed ownership as they can be used for profit making purposes. Garner relevant information for enjoying a profitable deal in the end.

Condition of the Property:

Before buying the property, you must ensure the condition of the property. Make sure it should be in livable condition, however, small changes can be done. Avoid properties that need major renovation that may increase your overall budget.

Use a Real Estate Agent:

If you are not too sure about your skills, you can ask a realtor to guide you. Taking help from an experienced person can help you to get some valuable sights on the property. You can also save your time and money as well.

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Foreclosed houses traditionally and generally have low costs. As a result investing in this market as a real estate investor may turn out to be what you’ve been searching for a long time. This costs invariably are also always below market value but they cannot create good market by themselves and must therefore be invested on. Here are the ways that you can make money from foreclosed properties.

You are well aware that for foreclosed properties to stay alive there initial owners must have found it difficult to afford them and when they were given their foreclosure notices as they just couldn’t pay their mortgage payments, their properties went back to the company or individual who was in custody of the mortgage. Whereas, most homeowners struggle to quickly sell their homes before foreclosure to save their credit many end up failing. If the owners of mortgage don’t sell this properties at a portion of its value they end up auctioned.

One way of getting money from the foreclosed property is to resell them the real estate buyers may in most cases spruce up the proper, making additional repairs here and there and sell them at a profit or safely still sell them without sprucing them as still the foreclosed property can be disposed at a profit with a sale below the market value. The best alternative has always been the former. Here if you are adept at reading the market and you’ve played the card well you may sell the property at a very handsome price.

A further way of making this money is becoming a landlord. Sometimes it becomes difficult to resell a foreclosed property or your forecast is that even when you sell it; it may fetch little profit or give out a loss. In such instances therefore it is prudent to make good repairs and redecorations and rent it. Depending on the foreclosed property we are considering here, the extent of the repair and redecoration varies.

As a real estate investor in a bid to profit from foreclosed properties, ensure you do extensive research be it online, through books, to taking classes and reading guide books. Thais will go a long way in giving you inside information on the various approaches available to successfully resell or rent the properties in question. Don’t forget that information is power and the more you know the better it will be for you to get ahead in the game.

The last but not the least other way of getting good money’ worth out of your foreclosed property is to get it out of foreclosure and eventually make a kill out of selling it above the market price. This has not been a favorite of many real estate investors as it takes too much time. But if you have time at your disposal and the market forecast an excellent year ahead then hold out and expect to strike gold. This may also apply to renting where tenants will be forced to pay more as compared to if they would have rented a still foreclosed property.

In case, you are craving to purchase property, nothing can be better than foreclosed properties. The real state assessors would be the best guides to direct you in this case, if you do want to buy foreclosed properties. After all, nothing can be better than it.

The repossessed or sealed real estate properties are called as the foreclosed properties. These properties are repossessed from those mortgage or loan borrowers who were not able to repay the taken loan or mortgage in the needed time limit. The loan under consideration would have been taken from either the government or any kind of financial institutions such bank. It would be intelligent to buy foreclosed properties when the down season is going on. This is because the rate of these foreclosed properties at such time would be lower and more affordable for purchase.

On the contrary, there are hundreds of real estate investors who also take benefit of this down market time. They basically purchase the foreclosed properties during this time and then re sell it again when the market prices have gone up. With this kind of investment, the investors are able to gain marginal profits and make their revenue. Apart from these investors, even those who want to earn regular monthly and stable income can involve themselves in purchasing and reselling phenomenon. The buyer’s market is nothing but the down market because of the cheaper features available and that too, proving to be very economical. The foreclosure options are definitely very lucrative which has thus, given rise to the number of investors and customers.

Taking into consideration the current recession stricken time, the foreclosure properties investment is very lucrative and beneficiary for the purchase of the real estate investments. But at the same time, in order to buy the foreclosed properties, one should also look into other details like the cost of maintenance and repairing of the property. If it seems to be very high, it will be better to look out for other property options.

In a nutshell, the investments in the foreclosure properties is a lucrative and worth investing domain to look forward into.

Are you a property investor looking to acquire bargain properties? Then repossessed properties are worth looking into. Gaining popularity with many individuals, repossessions are convenient ways for investors to grab good bargains. With repossessions in the UK soaring since the beginning of the year, investors have numerous opportunities to make the most of these properties.

Benefits of buying repossessed homes

Sophisticated investors look to repossessed properties as the best type to invest in. This is because buying repossessed homes offers a number of benefits for property investors:

* Below market values (BMV). Most often you can obtain repossessed properties for prices less than their real market worth. Acquiring a property for 20% below market value is best achieved when you are able to successfully deal with motivated sellers. Due to reasons like repossession, divorce or bankruptcy, they resort to a speedy sale to enable them to resolve their financial dilemma.

* Savings. Repossessions can be acquired at a cheaper price compared to other properties. Thus you can set aside a significant amount of money which you can use towards buying another property. But you have to be certain that you buy only properties that have genuine equity and value. Property auctions are one of the best places to find a repossessed property. Of the number of properties sold at auctions, 20% are repossessed properties. New-builds in particular are going for an average 26% below the initial purchase price. I have seen some in Birmingham go for 50% below the initial purchase price!

* Best way to grow your portfolio. Since you can acquire properties cheaper through repossessed homes, you can develop your portfolio at a faster rate thereby allowing you to grow your empire quickly. To ensure that you won’t have to carry out expensive renovation work, have a surveyor examine the property before purchasing it.

How to generate profits from repossessed properties

Property investors who want to make considerable profits in their investment properties – on top of the profits made when buying BMV – may want to consider investment properties such as buy to lets. The market for buy to let homes offers great opportunities to earn profits. This is because the percentage of the UK population opting to rent has increased in recent years – and the numbers are predicted to increase in the next few years.

Another way to take advantage of the property market is to buy properties and rent them out for the long-term. You can also refurbish a repossessed property and sell for a quick profit. But if you want to truly want the best option, why not buy a property in its pre-repossession stage?

By seeking and buying from distressed sellers on the verge of losing their home to repossession, it’s not only you who benefit but also the seller. When you offer a quick sale, you are able to help the vendor prevent a repossession. At the same time, you can obtain the property at a lower price than when you bought it through conventional means.

By taking advantage of repossessed properties, you guarantee yourself a solid way of making significant profits. And due to the substantial growth in the number of repossessed properties, you now have an expansive array of property to select from. Just make sure you select them carefully.

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The property manager plays a very significant role in ensuring that a real property is handled efficiently. Although this is the general responsibility of the property manager, it is also a necessity for him to perform different functions or multi task in order to achieve business goals.

On a daily basis the property manager sees to it that other property employees under his supervision had carried out the tasks and their duties which is a big factor in maintaining the smooth flow of the real property business. He also sees to it that the marketing aspect of a real estate property is already taken care of and is effectively put in the publics open eye for maximum exposre for potentially new tennants.

There are a number of things that a property manager can do both for the real estate company and to you. Depending on the kind of real property also known as a rental home, that he is dealing with, the property manager acts as a liaison between the building owners and the tennants. The real property business is divided into multiple categories of which a property manager can handle.

If you are an individual who is seeking to establish a real property business, one important consideration is to hire a property manager to look into the smallest until the largest details of each transaction. The real property business is a very crucial and challenging task to look through and therefore it needs the expertise and knowledge of an individual who has the skills to perform business transactions. If you are looking forward in attaining success in the real estate business then you should consider the property management factor as a way to sell your business, one thing of which the property manager can do because of his learning and experience on the said field.

If you are also a tenant, the real property acts in between you and the building owner in terms of settling any disputes, communication gaps between the tenant and land owner, A property manager should be flexible enough to work well with both the tenants and property owners, ensuring that both comes up with an amendable decision regarding payments and other things as well that needs the decision to both parties. A tenant can address their issues to the property manager such as the security within the property, maintenance and care taking of the properties, and most importantly any financial actions toward the use of these properties.

The property manger’s role is a very challenging work. He should possess the necessary traits and characteristics of an individual who is well rounded enough to attend the needs of his different clients be it as the property owner or being the tenant itself. They act as a very essential factor to determine success in the real estate property business. Therefore, when you work as a property manager, you must possess all the necessary skills needed to be successful in your work as well as in the business that you handle.

The investment quandary as to the best method for acquiring foreclosed property at heavily discounted prices inevitably surfaces at the same stage in the real estate cycle every ten to twenty years. After housing booms and home prices correct back to affordable levels, real estate investors are suddenly inundated with an almost overwhelming supply of potential homes to choose from. These prospective buyers peruse city blocks searching for evidence of distressed properties that might lead to investment opportunity by taking dead lawns, unpaid utility notices, and default notices all into account. They investigate “For Sale” signs with “Bank Owned” or “Foreclosure” riders attached. Technologically savvy bargain hunters browse websites online to identify properties in default. These opportunists also compare notes with one another at various social functions, water coolers, chat rooms, and anywhere else real estate is spoken. Here they may learn that in order to obtain the most lucrative price, investors are best served to purchase property directly at a foreclosure sale on the court house steps. Regardless of the preferred method for locating distressed properties, it is imperative to thoroughly comprehend the different foreclosure processes in order to develop and implement a successful investment strategy.

If a homeowner fails to make prescribed loan payments to the bank, the borrower is deemed to have defaulted on the loan. If the delinquent payments are not cured in a timely fashion, the lender is permitted to foreclose on the property to acquire title to the home as security for the unpaid debt. For national investors it is important to understand that lending practices and foreclosure procedures vary from state to state. For example, some states are considered “mortgage” states while other states prefer the “deed of trust” method of lending and holding title as security for the loan.

MORTGAGES

Mortgage states utilize a two party security system where a mortgagor (or borrower) provides a promissory note to a mortgagee (or lender), along with a voluntary lien called a mortgage that serves as security for the borrower’s promise to make the loan payments described in the promissory note. Since title to the property resides with the borrower when the mortgage is created, foreclosures in mortgage states can be relatively lengthy and costly for banks to pursue. Further, mortgages also provide borrowers redemption rights that allow borrowers a specified period of time after the foreclosure and ultimate sale to a third party to pay off the original loan amount and regain title to the property. As a result, buyers at foreclosure sales in mortgage states must be aware that they will often be unable to obtain clear title to foreclosed homes as the previous owner will likely be afforded the opportunity to pay off the original promissory note and reclaim the property.

DEEDS OF TRUST

A minority of states that include California favor the three party deed of trust system due to the relative cost efficiency and expediency provided to lenders in the foreclosure process. Additionally, lenders are often able to provide buyers of foreclosed property clear title as no right of redemption exists for borrowers. The Deed of Trust process involves a trustor (or borrower) that gives a promissory note to the beneficiary (or lender), and the trustor also gives title through a trust deed to a trustee (neutral third party) as security for the note. The important difference here is that title to the property is held by the trustee rather than the borrower. The trustee is typically a neutral third party designated by the lender to hold the deed of trust during the loan period with the power to more easily administer a foreclosure sale in case of default by the borrower.

It is clearly important to determine whether one is bidding on a property that was subject to a mortgage or a trust deed at a foreclosure sale. This differentiation can often be confusing as many real estate professionals and experts in deed of trust states will often casually refer to home loans as mortgages. Many lenders in these states will refer to themselves as mortgage brokers or mortgage companies when they actually originate promissory notes secured by deeds of trust. Deed of Trust states also refer to foreclosure sales as trustee’s sales, where the highest bidder purchases the property in an auction setting. However, purchasing a home at a trustee’s sale can be a risky proposition as the buyer has little or no opportunity to inspect the home prior to purchase. Further, the buyer must pay with all cash as financing is typically not permitted at trustee’s sales. There is also no guarantee that the property is not currently occupied by tenants or a previous owner. Finally, purchasers at a trustee’s sale are not protected against clouds on the property’s title like tax liens from a previous owner’s unpaid property taxes, so title insurance is often unattainable for buyers at trustee’s sales.

REAL ESTATE OWNED (REO)

If a home is not sold to a new buyer through the foreclosure process, the lender holding the promissory note will often acquire the property and attempt to sell it on the open market to a new buyer. Once title to the home that once served as security for the unpaid promissory note is transferred to the bank, the property is deemed real estate owned (REO) by the bank. The bank will then typically retain a REALTOR® to market the property for sale at a price below market value, remedy any defects on title, remove any tenants or squatters occupying the property, and often retain contractors to repair any major physical defects in existence on the property. Although the typical price paid for an REO property may in theory be slightly higher than buying at a foreclosure sale, purchasing an REO property is clearly a much less risky proposition. REO sales also provide investors adequate opportunity to inspect homes prior to making offers to purchase, and buyers are permitted to utilize financing when purchasing these bank-owned properties.

Whether purchasing foreclosed or REO properties, the various risks and rewards associated with an investment may not only depend on the characteristics of the home itself, but also the type of security the home provided to the previous owner’s lender. In order to avoid the displeasure of telling foreclosure horror stories in real estate investment circles, an ounce of diligent research into a property’s financial history can prevent a pound of investment headaches.

SOLD! 415000 – Paul Vail 917.435.8829 / Susan McCarthy 732.546.1812 www.asburyandoceangrove.com Prudential Zack Shore Properties

Financing investment properties is an important step to master if you want to maximise your real estate profits. Find out how to handle your mortgage lender and grab the best bargains for your property loans.

When it comes to financing investment properties, there are two major families of property loans that you can choose from: adjustable rate mortgage and fixed rate mortgage

As your property loans are long term investments that will tie you down for the next 10 to 30 years, it’s crucial that you pick the type of mortgage loan that is perfect for your needs.

What is an Adjustable Rate Mortgage and When is it Right for You?

Adjustable rate mortgages are property loans where the interest rates will rise and fall according to the current market interest rates. The interest rates will usually be fixed for the first few years and it will vary for the remaining years.

When the prevailing interest market rates are too high, the most effective way to avoid being tied down by costly property loans is to go for a adjustable rate mortgage.

If you are paying for your property loans with returns from other financial assets, it makes sense to go for a adjustable rate mortgage if the returns are tied with market interest rates as well.

However when you have an adjustable rate mortgages, your mortgage payments become unpredictable and it is harder to manage your expenses when financing investment properties.

Depending on the terms of your property loan, your interest rate can vary every month, every 6 months or every year. If your loan interest rates increase drastically, your monthly mortgage payments will skyrocket and you may be forced to sell your investment property because you can no longer afford it.

When do You Choose a Fixed Rate Mortgage for Your Property Loans?

Fixed rate mortgages are the traditional type of property loans that have been around for years. As the name suggests, your interest rates will be locked in at the same rate for the entire loan period.

During periods such as economic recessions where interest rates hit rock bottom, it’s actually a good idea to choose a fixed rate mortgage so that you can enjoy cheap monthly mortgage payments for the years to come.

For fixed rate mortgages, choosing the duration of your loan is an important decision. With a short loan period such as 15 years, you will forking out less money for your interest payments and get to own your investment property debt-free quicker.

However the downside to a shorter loan period is that your monthly mortgage payments will be a lot higher. That’s why you have to make sure that rent from your tenants combined with your own salary will be enough to cover your property loans even during periods of vacancy.

What can you do if the current interest rates are too high but you want a stable way of financing investment properties? Then you can look for a mortgage lender who offers convertible mortgage loans where the interest rates will vary initially but you will be given the chance to convert it to a fixed rate mortgage after a certain number of years.

Teo Zhenjie has been showing landlords how to manage their tenants and rental properties effectively on Propertydo http://www.propertydo.com/ – To learn more important tips on financing investment properties, visit his website today for step-by-step real estate guides, free resources and forms.