Real Estate Investing – The Perfect Scenario
Most people havent got a clue when it comes to investing. I used to fit in that category. The part is that you dont have to be because there are people out there to teach you. One of the directions I found is Real Estate. The market across the country is prime for investors right now. Some areas are a little more prime than others. Colorado seems to be leading the curve for the rest of the nation so I will focus on the Denver area for the purpose of this article.
The foreclosure rate seems to be out of control in most areas; bad for mortgage companies and general consumers; good for investors. In the Denver area we having been seeing a record amount of foreclosure filings; approximately 500 100 per week. The two types of investments are flipping where the investor buys a property at a severely reduced price and does a little cosmetic or repair work and then sells it for a profit. Im sure you may have seen the TV shows dedicated to the professionals in this arena and rental properties.
Flipping:
In my opinion the flipping type of investment should be left to the professionals. They should and in most cases are very experienced in the art of finding the perfect house repairing and dressing it up to sell at a competitive price in a short amount of time. Usually they can estimate down to the penny however there may be some unforeseen issues with the house that could knock their margin completely out of line. Plus in a slow sellers market the price may have to be very low in order to get it sold quickly.
Rental:
I like the thought of rental properties right now. For every foreclosure there is a person and/or family in need of a place to live. Therefore the rental market is gradually increasing. These families are most often good people who pay their bills on time but got caught up in the mortgage fiasco of ARMs interest only and Neg Am products that were introduced to the public a few years ago. These people were sold something that they did not understand and then got whacked by a huge increase in their payment. Most of these people are going to be looking for housing comparable to what they just left but in a more affordable realm. When a foreclosure is filed by a mortgage company the home owner has a couple of options; they can work to get the payment together a continue to move forward; they can try to refinance but with the mortgage guidelines being revised its much more difficult to get a loan; they can walk away and let the bank foreclose usually leaving the house in shambles; or they can negotiate with the bank for a shortsale. This is my favorite.
A shortsale could be the investors best friend. The seller just wants to get out and the bank just wants to get as much as they can a foreclosure costs the bank a ton of money. The investor steps in makes an offer and purchases the house at a discount from the true market value and then with minimal repairs and/or changes is able to put it up on the market as a rental. The housing market will turn we have already seen a little evidence of it here in Denver and in a couple of years or so the equity will be at a point where selling the home makes sense. The investor makes a profit and moves along to the next opportunity.
Having a professional Realtor who is experienced in investment properties is critical to the process. There are certain nuances to investing in Real Estate. Time frames are an aspect of shortsales that most people dont expect. Sometimes a bank can take up to several months to approve the acceptance of a proposed payoff although if the process is followed a much shorter timeframe can be realized. Knowing how to structure an offer to get it accepted by the bank is also very important.
Here in Denver the investment opportunities are huge. Im sure the rest of the country will soon follow if they are not already there. Real Estate is still one of the most solid investments that exist; if it is done correctly.
About the writer: Brian L. Thomas is an experienced licensed Real Estate Broker in the Denver metro area of Colorado. He and his team help investors individuals and families with every aspect of Real Estate. Brian and his team have over 20 years of combined experience. Visit his website at http://www.SouthOfDenver.com.
Real Estate Glossary Part III
Successful real estate listing needs careful research loads of attention and clear understanding of terms that are used in the ongoing real estate industry. Understandably from last two articles we have constantly putting an effort to make our readers smarter when it comes to knowing the correct usage of real estate terminology. This new article contains few more words and their exact meaning. Lets take a brief look on the following words that mean a lot in real estate industry:
Commission: It is a percentage of the sale price of a property that has to be given to a real estate professional as a fee for his or her services for negotiating the transaction.
Condominium: a kind of property ownership in which a person owns a unit usually in a multiple complex. In this arrangement a condominium owner shares responsibility of common areas.
Conventional loan: A kind of loan given by a private organization usually no guaranteed by the U.S. government.
Cooperative Coop: In this arrangement a group of people buy a collective infrastructure and then each one is allowed to live in a specific unit of that collective possession.
Credit history: A record that states the individual’s debt payment. Lenders use this statement before providing adequate loan amount to the borrower.
Credit report: A report that states all debts including past and present and the timeliness of their repayment; a summary of an individual’s credit history.
Debttoincome ratio: A ratio that compare gross income to housing and nonhousing expenses. According to the provisions of the U.S. government it should not exceed over 29 of monthly gross income.
Deed: A contract that notifies the transfer of property from the seller to the buyer.
Deedinlieu: A contract provided to the lender to pay the debts especially to avoid situation like foreclosure.
Default: A situation in which the borrower fails to pay his monthly mortgage payments in a timely manner to meet his mortgage promise.
About the writer: Myself webmaster of http://www.realestatedirectories.com/ which is a real estate directory guide that provide all information related to real estate in various areas like real estate listing real estate resources and more.
Ready For A Destin Florida Condo?
If you’re interested in getting a condo near the spectacular beaches which Destin Florida has to offer then you are hardly alone. People look at Destin Florida condos for one of two reasons they are interested in a vacation rental or they want to make a larger in the investment in the community by buying a condo here.
The Destin Florida Coast has by far the most beautiful beaches in the continental United States with sugar white sand clear emerald green water and the relaxed beach atmosphere…. of course you probably already know that don’t you? Regardless if you are interested in the 19miles of secluded sandy white beaches located about 20 minutes east of Destin or in older sections to the west on Okaloosa Island you will have fun enjoying all of the excitement the entire Destin Florida condo market has to offer.
For those seeking to buy a condo there is no better place to invest. Of course if you don’t know the market things can still go wrong. You need to choose wisely; but a Destin Florida condo is a great choice for a long term investment and the perfect getaway for any vacation!
As you can imagine there is a lot of demand for waterfront condos for sale in Destin Florida. This is a market where buyers have an advantage. With prices down and likely to stay that way for the near future now is the time to buy for a long term investment. Like any other property purchase you’ll want a professional on your side who really knows the market.
While sales have increased market recovery is still fragile due to the large number of condos 3336 units for sale in our local area along 40 miles of beach east and west of Destin Florida.
Uh oh….. you are one of those dreaded creatures in Destin…. TOURISTS!! Actually locals really like tourist but of course we have to joke about them just a little bit.
Destin is a very popular tourist “Destin”ation as we like to say here for those who are seeking beachfront rentals. If you are one of those who would like nothing more than to spend your vacation near our beautiful beaches then you have some options you can work with VRBO or other services with local property managers or directly with property owners. However you choose to look at properties in Destin you’ll need to pack your sunscreen and be ready to enjoy the beach and relaxation Destin has to offer.
Whether you are looking to vacation in Destin or to own a condo then you have some other factors to consider. Destin also offers an amazing shopping dining and fishing experience among other things. We are convienent to the area’s best dining nightlife water park zoo deep sea fishing sailing diving snorkeling and other area attractions.
We here in Destin Florida hope that you come visit and enjoy one of the available condo units here whether you are looking to resettle in Destin or are in the local parlance one of “them there tourists”.
About the writer: Sharron Cockayne is the webmaster capeverdepropertyguide.co.uk which gives everybody the chance of finding useful information about Investment in Cape Verde Property and also offers a Cape Verde Property Investment Guide in order to allow potential buyers to avoid any kind of incidents.