While it may seem like a straightforward process, there are things to pay attention to so you do not get sucked into a real estate trap. Here are a few important considerations:

1. The biggest consideration is to make sure to do the research. While on the surface a property might look like a great deal, remember the overall market is slow. A property that looks like a good deal might be priced high compared to similar properties and you won’t realize it if you don’t put in the legwork in respect to research.

1. Your best bet is to buy properties that have several units. While it might seem easier to buy a single family house and then rent it out, it can be a money trap if the renter leaves suddenly. If one out of one tenant leaves, the investor is left with no cash flow. By investing in a property that has several units, if one is vacated suddenly the landlord still has cash flow from the other tenants.

1. Investment properties are not simple buy and hold investments. They require attention and upkeep. Without performing basic maintenance the building could quickly become uninhabitable leaving the investor with a loss of not only their investment, but also their cash flow.

1. Being a landlord can be considered a full-time job. Unless the income from the multiple units is enough to pay a property manager, the investor should be willing and able to dedicate a number of hours to maintaining the property, collecting rent, and overall dealing with needy tenants.

As the housing market continues to go down, many landlords are looking to get out of their properties and simplify their lives. But for those smart enough to look into multifamily real estate investing, this is the best time to get started. The price is right, the tenants are readily available as they can no longer afford their mortgages, and the investment has the potential pay-off handsomely.

Gain Wealth and Minimize Risk

During times of great stock market turbulence, there are many people that are looking for a place to accumulate wealth that does not have as much risk as some of the more traditional investing options. Let’s face it, people want something that will not keep losing value every time some bad news is announced on the television. For those that are willing to put in a little bit of extra work to provide that extra income, there are multifamily real estate investments out there that could be the perfect fit for them. Buying investment property is easier than many people think, and the rewards might be much greater than they expect. You just need some coaching on how to find them.

Article Source: http://EzineArticles.com/6773606

1- Certification:

The first thing to look for when hiring a home inspector is to see if they are certified or not. If they don’t have a home inspection certificate, then don’t bother with hiring them because they probably didn’t go through the right training. You might also think that having a certificate is enough to get you a safe deal, but there are many other variables involved in the home inspector choosing process that you need to go through first.

2- How long have they been inspecting:

A certificate isn’t actually enough to determine whether a home inspector is competent at what they’re doing or not. If your candidate home inspector works in a full-time job and not just as a freelancer, then there is a very good chance that they are good at what they’re doing.

3- Are they working with a company?

A good thing to check for is whether these inspectors are working under the supervision of a reputable company or just on their own. If they are working with a company, then it’s their job to ensure the inspection quality not you.

4- Do they offer a guarantee?

Having a guarantee is always a good indicator that the inspector offers high quality services. If you find that something has not been inspected properly, then you might get a refund on the inspection.

5- How much will it cost you?

The last thing that I want you to check is how much are they going to charge you. The reason for that is that I don’t want you to concentrate on the cost and forget about the quality. Investing into a good home inspector will save you a lot of money on the long run, so make sure you have that to your advantage.

Article Source: http://EzineArticles.com/6783558

Holding an open house is one of these. Although, through the years, more and more surveys show mixed results with regards to the public’s acceptance and turnout of the events, it is still, undoubtedly, one of the best and beneficial ways for both seller and buyer to present and see the goods.

The seller

Well, for one, an open house gets the property the exposure it needs to be sold. Since most buyers would want to see what exactly they want to buy, or at least get an idea what kind of a house they want to purchase, these open house events are just the perfect venues for looking around. An open house gets to give concrete examples to potential buyers, giving the sellers higher chances of selling.

Holding an open house is also an easy way to attract people who are even vaguely interested to peek inside a piece of real estate. With a simple one-day open house, sellers can attract a couple of people into thinking of buying their property. This saves the sellers some effort into actually looking for new people to pitch the property to, as all the sellers need to do is announce the event, wait for people to come, tour them around the house, answer a couple of questions, and, hopefully, close a deal by the end of the day. This is why holding an open house is a piece of cake, actually.

The buyer

Looking at the other side of the fence, buyers can also benefit a lot from open houses. As tiring as it is to shop around for the perfect new home, it is even more of a chore to actually look into each and every one, especially when the buyer hasn’t got any specific thing they plan to look for in a house.

This is why open houses are also a very good starting point in looking for houses. As these events always have detailed tours that will discuss every part of the house, and will let you, as a buyer, ask questions about the house, you can learn a lot from the experience. By actually being in a property can give you fresh ideas for what you would actually want in your future home.

Of course, you can also go and actually find a house that you like in one of these open house events. As most people want to have a firsthand account of the look, feel, and experience of something they are buying, open houses are just the best place for that when purchasing a home.

These are just a couple of examples how holding an open house could help you, whichever interested party you may be on.

Article Source: http://EzineArticles.com/2769871

Here are the top 5 mistakes people make when applying for a home equity loan.

Mistake #1 – Not Knowing The Difference between a Home Equity Loan and a Home Equity Line of Credit

A home equity loan is a one-time transaction that allows you to draw out all the funds available.

A home equity line of credit (HELOC) is open; you can choose a small initial advance against the full amount of the line; then reuse the line of credit as often as you want during the period that the line is open. Your monthly payment is based on the outstanding balance.

A general rule of thumb is: use a home equity loan when you need all the money up front; such as cash for home improvements, debt consolidation, or a large one-time purchase.

If you need ongoing access to cash and revolving credit a HELOC may be your best choice.

Mistake # 2 – Taking a Home Equity Loan When You Plan on Refinancing Your First Mortgage

Many mortgage companies look at the combined loan amounts (i.e., the sum of the first and second loans) even when you are refinancing only your first loan. If you plan on refinancing your first loan the lender may require you to pay off both your first and second mortgages; or close your home equity line completely.

Check with your mortgage company to see if having a second loan will cause your refinance to be turned down.

Mistake # 3 – Not Knowing The Hidden Costs

If you feel you must take out a home equity loan or open a line of credit it is important to know ALL the costs. With any loan secured against your property there can be hefty insurance costs, appraisals and other fees that can cut into your loan amount.

Mistake# 4 – Only Applying at Your Current Bank

Many consumers apply for their home equity loan from their home bank. This can be a costly mistake.

As in any other type of loan, be sure to shop around for the best deal. Your current bank may not be able to give you the best interest rate or the best terms.

Think twice before deciding to use your local bank; you may find that there is another lender out there that can offer you a substantially more attractive loan program.

Mistake # 5 – Not Checking Your Credit First

As in any type of loan, it is imperative that you get the best rates and terms. However, if you have credit problems it will seriously affect your ability to qualify.

In fact, if your credit is not the greatest you may have no choice but to use alternative lenders specializing in hard to place loans. The solution: Make sure you go with the bank or lender that provides the best rates for your type of credit whether good or bad.

There you have it. Avoid these 5 mistakes and you could save yourself hundreds, if not thousands of dollars when you get a home equity loan.

Article source: http://www.articlecity.com/articles/business_and_finance/article_16030.shtml

• Build an extension to your home: This obviously has to add the most value to your property as you are increasing its size and adding to its functionality. Whether you are adding extra bed rooms or increasing the size of your kitchen, it does not really matter, just the fact that you are increasing the size of the property and adding more useable rooms to it will make a difference. If your home does not have a bathroom downstairs and you are adding an extension you should allocate a small section of the floor space added to providing a bathroom.
• Loft conversion: A loft conversion is a great way to add extra functionality to your home, and can be a cheaper option than having an extension built. If you choose to go down this route you should make sure that you get all the relevant planning permission required, otherwise your hard earned cash could be wasted when your local building control team find out about the work you have done and prevent you from using the added room/s. Also when you come to sell the property any prospective buyer will need to be happy that the work has been carried out according to the latest building regulations. It is also worth considering adding a fixed staircase to your loft rather than a make do pull down ladder. You should also make sure that you have enough natural light coming into the new rooms by adding enough roof windows. This also gives you the added advantage of offering an improved view.
• Improve your kitchen: Replacing a tired looking kitchen with a shiny new one with all the latest gadgets and space saving advantages, can help significantly improve the functionality of your kitchen and also help to improve the sale ability of your home. The kitchen has probably the biggest impact on making the right impression when anybody comes to view your home. Let’s face it if you are considering changing your home which usually means increasing your mortgage to buy a bigger or better property you do not want to have to spend even more money on having a new kitchen fitted.
• Have a new bathroom fitted: This is not quite as important as having a kitchen refit but it does go quite a way to helping push prospective buyers into choosing your property as opposed to any others they have viewed, again because of the convenience factor of having no major money to spend in ripping out and renewing an old or out of date bathroom.
• Landscape your garden: Everybody wants a nice garden that can be enjoyed throughout the year, but few people want the work and expense of putting it in order themselves.

Another critical factor that you should consider if you are about to undertake any home improvements, is to make sure that you arrange any finance you need in advance. If you have a bundle of cash in your pocket you might be surprised at how much money you can save by haggling with the contractors.

Article Source: http://EzineArticles.com/6060399

To learn and understand what the first things you need to know about investing you can do two things, watch others and learn from their mistakes or take the plunge and learn the hard way, by your own mistakes. If you watch what other investors do and listen to their experiences, be them good or bad, you can then use their knowledge and mistakes to your advantage and therefore avoiding that the same things happen to you.

Remember to be consistent with your offers when buying property. Do not just centre yourself around one property that you like, write it down along with all of the information you can find and keep looking at more investments. Make reasonable offers on you interests and make sure that you do not offer a lot more than what the property is worth, keep in mind that you are investing to make a profit.

There are also quite a few skill that you should master to enable you to become a good investor. These skills will make the whole process a lot easier than if you try to invest without them. Try to grasp the skills of finding a good deal for your money, fixing the property to sell it on the market, making sure you have enough money to get through the whole investment process, managing the property and marketing the property.

Coming back to making offers on the properties that you are interesting in buying, remember that there is a lot of competition out there so try not to leave it too long before placing an offer. Make sure that your offer is interesting, not too high, where it will be hard for you to make a profit and not too low so that the seller will not accept it.

Before settling for one property and investing in it, make sure you speak to a professional that can evaluate the real value of the property, you can do this by hiring an appraiser, however this can be quite expensive if you have quite a few properties to value, or you can ask your realtor to help with the estimate.

Try to uncover any hidden faults in or around the property before buying, these faults can also include government restrictions on the reformation of the property and its surroundings. Make sure you have all of the legal paperwork in order before placing your final offer and investing.

Real estate investing is a job that needs time, dedication and personal drive to enable it to become a profitable business. If you are unsure about anything before you jump head first into a project, make sure you get legal and professional advice to avoid any unnecessary bumps along the way.

Article Source: http://EzineArticles.com/6790718

You may have heard that building green is more expensive. While that may be true in some instances, it doesn’t have to be. In today’s market some elements of green building can cost more initially, but many do not, and some even cost less. Factor in energy savings over time, and the increased durability of many of the green building products and any additional up-front cost becomes much easier to justify. Also, many mortgage companies now offer reduced mortgage rates to homes built green.

To answer the other question, let’s take a look at a few things you can do to make your new home more environmentally friendly.

HEATING AND COOLING EQUIPMENT: One of the most important things you can do to make your home more “green” is to carefully consider your choice of heating and cooling equipment.

The heating / air conditioning system should be built and installed with the highest SEER (Seasonal Energy Efficiency Ratio) rating possible. The greater the SEER rating, the more energy efficient your unit will be. The system should also be sized appropriately to effectively cool or heat your home without being oversized. In fact, it is often better to err on the side of being undersized by half a ton than oversized. (Note: A “ton” is a unit of energy used to measure output. Typically you need about one ton of output for every 400 square feet of your home.) Many builders don’t recommend that you oversize the tonnage of your home’s AC system. The most efficient homes often run on a system designed to be 10 percent smaller than typical installations. A good air system should also be installed with as few bends and connections in the duct work as possible so as to minimize the risk of gaps and voids.

INSULATION: If it’s within your budget, one great option is to have your home insulated with a foam product. When installed correctly, foam can be quite effective. On top of the good R-values (a term used to measure how well insulation resists the flow of heat or cold through it), foam can fill cracks and crevices in ways that traditional insulation can’t. If a foam product can’t be used, great care should be exercised to make sure the installation is done to eliminate as many gaps and penetrations as possible.

HOME ORIENTATION: Reflective Koolply wood on the under side of the roof decking will keep your attic 30 degrees cooler. To reduce energy loads, it’s important to design and position the house in such a way as to minimize exposure to the hot sun while taking advantage of cooling breezes. Whenever possible, the front door or the house’s longest wall should be set to within 5 feet of true south. It may also be important to landscape in such a way to create wind breaks for the home or create shade to increase efficiency. Good window placement can increase natural light while reducing the need for electric lighting.

WINDOWS AND DOORS: Windows help make a home beautiful, but they can also waste a lot of energy if they let in heat in the summer, cold in the winter, and drafts anytime. To get more energy- efficient windows, select ones with good insulation values. Some have special coatings that can help repel heat. Others are double- or triple-paned which helps insulation. Some energy-efficient windows have non-toxic gas between the panes such as argon or krypton that provide better insulation than air. Even the window frames can effect how efficient they are. For example, aluminum frames typically provide lowest insulation level. Wood, vinyl, and fiberglass are better. Warm-edge spacers are even better. Certain window coverings like reflective blinds and shades can also generate incredible savings on energy usage. When it comes to doors, make sure they have a tight fit and use excellent weather stripping. Some new door frames include a magnetic strip that creates a tighter seal and reduces the amount of air that leaks out. Some of the best core materials for a door include fiberglass and foam. If a door has glass, it will be more energy efficient if double or triple-paned insulating glass is used.

ROOFING AND EXTERIOR PAINT: Consider using reflective roofing and lighter exterior paint colors. These two items offer a cooler home by reflecting the sun’s rays rather than absorbing them. Roof choices (reflective) and lighter paint colors can create double digit drops in exterior surface temperatures, which can result in greater energy savings.

BUILDING MATERIALS: Choose to use “earth-friendly” products and building materials whenever possible. Typically, these include: – products made with recycled content – products that conserve natural resources – products that avoid toxic emissions – products that are rapidly renewable such as bamboo, cork and straw.

WATER SYSTEMS: Consider installing tankless and “point-of- use” water heating systems. These systems do away with the traditional standing hot water tanks and more efficiently heat water for the home. They are also more cost effective.

APPLIANCES: Consider installing “EnergyStar” rated appliances. Energy Star is a program backed by the government that identifies products with high energy efficiency. These products often last longer and are more economical to operate than non-Energy Star rated appliances.

Article Source: http://EzineArticles.com/6753364

FHA Loan Information

The Federal Housing Administration (FHA) insures FHA loans, which protects the lender in the event that the borrower defaults on the loan. This insurance makes these loans less risky for lenders, and they are more likely to offer low interest rates on them. The FHA is fully committed to its borrowers and has assistance in place for borrowers who need assistance making their mortgage payments.

If an applicant has a credit score of at least 580, the down payment on an FHA loan will be 3.5%. If the applicant has a lower credit score, the down payment will increase to 10%. Although, while the FHA does allow for loans to be granted to people with credit scores below 620, most lenders today do not. The FHA also requires that applicants have at least one year free of any delinquent mortgage or rent payments. Overall, FHA loans have less strict credit and income requirements compared to other home loans.

With an FHA loan, the borrower must be financing his or her primary residence. There is also an upfront mortgage insurance premium (which just increased to 2.25% from 1.75%), as well as monthly mortgage insurance. These loans also allow homeowners to refinance a greater value of their home (up to 97%!) and feature a streamline refinance option, which requires less documentation and quicker processing.

Conventional Loan Information

Conventional loans are not insured by the government, so lenders mitigate their risk by imposing tighter qualification standards. These loans tend to have higher interest rates than FHA loans because the rates are more likely to be driven by a borrower’s credit scores and other risk factors. With a conventional loan, an applicant needs to have a good credit score and income to receive competitive loan terms. These loans do not have to be used only on primary residences, but can also be used on investment properties.

The down payment on conventional loans tends to be higher, with the requirement currently set around 10% for most loans. Applicants will need to have a credit score of 660 or higher to be eligible and, in most cases, will need a 700 to receive competitive interest rates. There is no upfront mortgage premium requirement, but there will be monthly mortgage insurance if the borrower’s loan-to-value ratio is greater than or equal to 80%. There are refinancing options with conventional loans, but the amount a homeowner can refinance is only 80% for a cash out and 95% for a non-cash out, compared to 85% and 97% respectively for FHA loans. There is also no streamline refinance option available.

Which Type of Financing is Right For You?

After assessing his or her financial situation and weighing the pros and cons of FHA and conventional loans, an applicant can determine the best loan for his or her situation. Different loans are beneficial for different types of situations and it is important to be well informed so the best choice is made. An FHA loan would likely be more beneficial for those wanting to borrow more than 80% of the purchase price or home value, those with lower credit scores, or those who do not have a lot of money for a down payment because they can have access to lower interest rates. This loan might also be better for borrowers who want a cash-out loan because they will likely receive a lower rate than with a conventional loan.

On the other hand, a conventional loan may be better for those who have excellent credit, those borrowing less than 80% of the purchase price/home value and those not wanting to get a cash-out loan because they can receive low interest rates and, unlike FHA loans, they will not have mortgage insurance if the loan amount is less than 80% of the purchase price or home value. For those who need further assistance choosing a type of loan, there are a variety of resources available. Speaking with a knowledgeable loan specialist is a good way to make the decision process less complicated.

Article Source: http://EzineArticles.com/4070903

But what exactly do we mean about de-personalizing? Sure, the family photos need to come down so the potential buyer imagines their family living in the house, not your family. But it goes beyond that. What are those things that give the potential buyers too much information about you, your family and your lifestyle – things other than the photos?

First, do you have things around the house that tell buyers about your political beliefs? What about your religion? Your ethnicity? Many of us have certain beliefs about those we consider ‘different’ from us, even if we aren’t always aware of those beliefs. And that may be true of your potential buyers. These beliefs can impact (even very subtly) how your potential buyers may feel about the
house. So it’s better to remove anything that gives a hint about your personal beliefs.

What about awards and diplomas? Trophies? If these are displayed anywhere, take them down and pack them away. You don’t want potential buyers comparing their education or awards with yours. Or deciding that because you’re an attorney, you may be able to cover up issues with the house or problems with the sale.

Do you enjoy throwing cocktail parties? What if your potential buyers do not believe in using alcohol? To keep any concerns at a minimum, put the alcohol away while the house is on the market. The same is true of firearms. Even if you don’t use them, remove them. Many people have very strong feelings about them.

To make certain you have completely de-personalized the house, here are a few places and things to check:

• Artwork – make certain it isn’t of a religious or ethnic origin and the subject matter might not be considered offensive.
• Bookshelves – check titles as well as accessories on display.
• Medicine cabinets – make sure no medications are in evidence.
• Storage areas, including the basement, closets, and garage – do you have anything stored that might cause concern? And if you have labeled boxes make sure the labels don’t give too much information.
• Desks and work areas – remove any personal papers including bank statements, correspondence, and legal items. And keep your computer turned off!

And if you’re still not sure just how much to remove, keep this in mind: If it isn’t possible for it to belong to anyone else, remove it. While this might seem excessive, it ensures the attention of the potential buyers stays right where you want it – on the house.

Article Source: http://EzineArticles.com/6736695

1) Buying a condo is a good investment. You could live in one for many years, but if ever you need to move you have the option of turning your property into a rental. Condos are typically a prime rental property in resort areas – you could rent yours year round or during peak seasons.

2) Owning a condo usually means less yard work. If you buy into a high-rise, you definitely don’t have to mow a lawn! However, if you buy into a more spread out community, your fees cover the cost of landscaping.

3) Buying a condo is a better investment than renting. When you rent, you give money away to live in your home. When you’re finished, you have little if anything to show for it. Buying a condo gives you property that is yours.

4) Simple repairs and renovations may be covered in your fees. Unlike with a home, you probably won’t be able to add on to your condo, but simple fixes in plumbing and electricity may be handled by your condo community, so you’ll save time and the hassle of hiring a contractor.

5) You gain access to amenities you might not obtain otherwise. Pool ownership, for example, can produce headaches. Buy a condo with pool access, and you can enjoy the luxury without the stress of maintenance.

6) You want security. Most complexes offer some level of security, be it gated borders or password-protected entryways. Your fees cover this benefit to condo life.

7) You want to de-clutter. Often people move from houses to condos after children have moved away, they have divorced, or they want to downsize. If the maintenance of a house is too much for you to handle these days, scaling down your possessions and moving into a smaller condo is probably the right step to take.

Your job doesn’t suit a house. Let’s face it: houses mean work. You have to make sure everything runs, and that the lawn is neat. If you travel extensively or work long hours, you don’t have time to take care of maintenance. Living in a condo, however, takes some of the load off your shoulders.

9) You like being around people. Condo living puts you in proximity with your neighbors, whereas home living can be an isolated existence. If you are social, a condo community may be ideal for you.

10) Condos are cozy. You want to feel comfortable where you live, and condo living gives you the right amount of space without making you feel claustrophobic.

If you’re looking for a new place to live, considering looking into a condo for sale in your area.

Article Source: http://EzineArticles.com/6769378