Archive for May, 2009
The Ultimate Battle: California Vs. Indiana
Get ready Arnold because Indiana is about to crush California. I’m not talking about violent fighting I’m talking about a better place to live. Sure California has some of the most beautiful coastlines in the world. And yes they may have some of the most gorgeous beaches and it is home to some of the world’s most famous celebrities. Not to mention the breathtaking views of mountains and the fact that Las Vegas is only a short car ride away. Indiana has the power to veto all those great things about California because of Indianapolis’s Real Estate affordability.
Known as the crossroads of America Indiana lies in the heart of the Midwest. Indiana is saturated with lakes and rivers and the beauty that comes with the four seasons of the year. Indiana is also home to Indianapolis which is located in the middle of the state. That may not sound like a big accomplishment but the Indianapolis Real Estate Market was in fact the most affordable housing market in America in 2006.
The National Association of Home Builders and Wells Fargo released a survey in November 2006 that named Indianapolis the most affordable housing market in America. It also named California the least affordable state in the country. According to the survey 40.4 percent of existing and new homes that were sold were affordable to the families who were making 59600 which was the United Stated median income of that time.
The Housing Opportunity Index released by NAHB and Wells Fargo measures the number of homes sold in any given area that are affordable to families who are earning that particular area’s median income. In order to be considered affordable the actual housing expenses which include property taxes insurance and mortgage payment must not exceed 28 percent of the income. The Indianapolis Real Estate Market particularly the housing market was voted the most affordable in the country which is quite an accomplishment.
In and around Indianapolis an astonishing 86 percent of homes that were sold in 2006 were sold at or below the city’s median income which was 65100 in 2006. So someone earning the city’s median income could afford to buy 86 percent of the homes that were sold. That statistic alone makes the Indianapolis Real Estate Market a very attractive place.
On the other hand a mere 1.8 percent of all the homes sold in Las Angeles were affordable to the people earning the city’s median income which was 56200. Sorry Arnold the statistics speak for themselves and the statistics deem Indianapolis Real Estate very affordable for its citizens. Oh I forgot to mention that Las Angeles is not the only city in California that was on the least affordable list. Santa Ana Anaheim Irvine Modesto Stockton San Marcos Carlsbad and San Diego are the other big cities in California that accompanied Las Angeles on the list.
The Indianapolis Real Estate Market is attractive to anyone who wants to be able to own their own home comfortably and maintain a high quality of living. However California is definitely the location for those who feel like struggling to make their mortgage payment every month. Hey you always have the views and the short drive to Las Vegas!
About the writer:nbsp;nbsp;As a Managing Partner of Regent Global Funds a private equity and debt fund Dominic Mazzone brings a track record of success and innovation to his current position as a fund manager with his experience in the real estate and lending business. His experience in real estate led him to being responsible for maximizing revenue through strategic bestuse practices as well as property rehabilitation in a portfolio of investment properties within the U.S. Dominic has been involved with development projects throughout the U.S. including California Arizona Florida Kansas and Hawaii and is currently part of a consortium of investors in Scottsdale AZ developing an 80acre site for an exclusive enclave of luxury homes overlooking the Estancia Golf Course. Dominic had his start in the lending business underwriting loans in Canada on properties that were precluded from conventional financing. This led to similar lending opportunities in the U.S. and the eventual formation of Regent Global Funds in Chicago.Formal education includes Mesa College in San Diego and the University of Southern California in Los Angeles.Dominic is a general partner of Scottsdale Partners LLP which is involved in real estate development in Scottsdale AZ as well as Waikoloa Partners LLP a syndicate of real estate investors in Hawaii. Dominic sits on the advisory boards for the technology companies Voice Cloud and Nile Source Outsourcing.
The Truth About Commercial Real Estate
Many people confuse commercial real estate with residential real estate. What is the difference between the two? Commercial real estate has to do with buying and selling commercial properties for business purposes. This includes properties that are used for industrial purposes such as factories medical buildings such as doctor’s offices and clinics office buildings and apartment complexes. Of course this is list does not represent all definitions of commercial real estate but it should give you an idea.
Residential real estate deals more with the buying and selling of private homes. This can include condos town houses houses mansions and even castles.
What is the big deal about commercial real estate? The truth is that it aids in the expansion of businesses. As a business owner you may be renting office space. When you go into commercial real estate you decide you are buying property instead of renting. Many small business owners use these loans to fund diverse projects such as buying buildings shopping complexes or hotels just to name a few.
Some business owners and entrepreneurs start buying commercial real estate for added income come streams. For example an owner of a janitorial service company may decide to buy some land in an underdeveloped area of town. He may invest in developing the area and then turn around and sell parts of the property to others who start to build a shopping mall in that area. In essence he is not only creating income from his janitorial services but also from investing in commercial real estate.
When you are dealing with commercial real estate you are usually asked to define what you would use as collateral in order to secure the loans that are necessary. Some businesses use accounts receivable financing to secure a loan especially if they are small businesses with little or no credit.
By using collateral the lenders are certain of safe returns of the loaned amount. Because of the secured amount small business owners and entrepreneurs can enjoy the ability to borrow more loans with which they can meet their requirements.
Unlike other forms of investing commercial real estate can give you much more flexible payment options. You usually have lower interest rates and can get proposals regardless of your past credit history. Many businesses have had success in getting proposals even though they have had bad credit histories.
Commercial real estate provides you with more flexible payment duration. It also comes Good and bad credit history holders can both obtain the amount needed and then manage and supervise their expenses. Commercial real estate can also assist you with rational policies that the bad creditors have so they can recover their poor credit scores.
Best of all as a small business owner or entrepreneur you can get your approval online within seconds by simply submitting an application online. This electronic application that you submit will make the entire procedure go faster and better. It saves time and effort on your part. Every lender that allocates the funds necessary for your commercial real estate endeavor will provide the online application process at no charge to you.
If you are interested in finding information on commercial real estate investments you can do a basic search on Yahoo or Google. There are hundreds of sites available that will list real estate property around the country. Some of these sites even list commercial real estate property that is available all over the globe. The process is really simple;
1. Search for properties of interest
2. Find a professional to help you
3. Get a loan quote
4. Fill out application
5. Submit
You can do all this from the comfort of your computer and the information is just a few mouse clicks away. The truth is that when it comes to commercial real estate you many options available to you.
About the writer: Real estate expert Thomas Pretty looks into how the property sales figures in the UK are changing.
The Famed Simultaneous Closing In Real Estate Investment
There are many ways to close a deal in real estate investing. As a foreclosure investor youve probably heard of the famed simultaneous closing when purchasing a property from the homeowner. Its a great way to make a profit on your time and effort without using your own money to purchase a property.
A simultaneous close is when you buy the property from the homeowner and then immediately turn around and sell that property to an investor. You very often are only on the title of the property for a few minutes at a time. Plus you can often arrange the deal so that you end up buying that house with your investors money!
How the Simultaneous Close is Initiated
You initiate a simultaneous close on a property sale by asking your investor to wire their money into the title company that you are using for escrow. You have already given the title company prepares the two closing documents; one is where you buy the house for 70000 and the other is where you sell the house to your investor for say 90000. That means you get a profit of 20000 after both closings are complete.
When the title company prepares both of these documents at once theyll notice that your buyer has already wired their money into the companys escrow account. The title company will see that when you sell this property to your buyer youll be getting 90000 and that the buyer has already transferred his or her money into the title company.
So rather than asking you to wire your own money into the title company so they can initiate the first sale from the homeowner to you theyll just use 70000 of the 90000 thats been transferred into the title company by your buyer. Then theyll turn around and complete the second sale from you to the buyer and leave you with 20000 profit without even using your own money!
Basically youve just flipped a house which in proper terminology is referred to as Wholesaling a house and all without using your own money! As you can imagine there is a little more to the process of making a simultaneous close but this is the gist of the procedure. Its an excellent way to get involved in real estate investment and get profits with very little starting cash.
About the writer: Isnt it time you learned how to capitalize on one of the best markets for real estate investing? With the recent flood of foreclosures now is the time to learn to invest correctly in real estate from the hosts of the nations leading show on real estate investing Judson and Lynn Voss. Visit http://www.yourrealestatefortunes.com and learn for free the nohype truth about choosing the right real estate investing strategy to start making you money today.