Archive for May, 2010
Start Investing Money In Real Estate
If youre not investing money you may actually be losing money and net worth in the long term. In the past a secure well paying job was enough. Workers generally had the same job and career for their entire lifetimes. Today this is no longer the case. The economy is changing so rapidly that most people have multiple careers as well as jobs. Unfortunately inflation is rising at such a rate that even wellpaid workers who do not invest can end up with absolutely nothing after years of hard work. Is possible to work for 40 hours a week every week of the year and still have nothing to show for it at retirement.
The other problem with not investing money is the cost of work. Most people don’t think about the actual cost of work but it can be quite high. In order to go to work you need to pay for your education and your transportation to and from work. You must also take into account the strain that work puts on your health. If you work around dangerous toxins unknowingly for example you could eventually face enormous medical bills as well. Plus work also takes away time from your leisure activities friends and family. There’s truly no price tag on this high cost. Of course in most places of work there are deductions from your pay. Insurance taxes and other fees are deducted from your paycheck.
The price of work is truly high and we haven’t even discussed the stress of having to answer to a boss and difficult coworkers.
When you start investing money on the other hand you become your own boss. You do not have to pay the high cost of fulltime employment and you get to spend time with friends family and whomever you wish. At the same time you can earn enough money to live truly well and enjoy life with your loved ones. In fact investing money is so important that even fulltime employees are realizing that they need to start investing money if they hope to enjoy an even reasonable retirement.
However you can be investing money and making money from it fulltime. You not have to be employed while investing money. You can actually start investing and start earning money from your investment so that you can fire your current boss.
Today almost anyone can get started investing money with real estate and earning a living.
If you want to avoid the stress and costs of a fulltime job that slowly wears you away start investing money instead. You will gain the lifestyle you deserve. All you need to get started is determination and an understanding of how investments work.
About the writer: Brad Wozny is a real estate investing expert. Let Brad show you how to connect with eager real estate investor buyers sellers of investment properties. Access private money creative lending resources. Claim your FREE Strategic Investment Manifesto and Download your 2 FREE real estate investing mp3 case studies.
Smart Questions To Ask Before Purchasing A Condo
Many homeowners find the condo lifestyle to be highly rewarding and a smart investment. But there’s some investigation to be done before a wise purchase is made. Here’s a thorough list of questions to ask at least consider before you go ahead and purchase a condo.
What is the age of the building?
Is the building airconditioned?
What sort of security system is in place? Is it 24 hrs?
Is there a parking space included in the purchase price? ask to see it!
Is there guest parking and if so what are the conditions of use?
Is the use of recreational facilities included in the purchase price or monthly fees? Find out the terms of use for these facilities are they strictly for the use of owners and their guests or are they open to the public in any way?
Look into your unit’s particular situation. See if it’s situated near an elevator or garbage chute. You might second guess a purchase if you know you don’t want to live with that sort of intrusion.
What fixtures and features are included in the purchase price?
Are pets allowed and if so what kinds and sizes of animals are permitted and how many per unit?
Are there rental or lease restrictions on the unit?
Is the renter population over 10? This may be worrisome if you’re looking for a a place to call home. A high rental population has its own set of problems.
What sorts of renovations are permitted if any?
What is the monthly maintenance fee and what does this fee include?
To what extent does the condo association’s insurance cover you? The insurance should be able to cover the cost of rebuilding the condo if need be.
How much coverage is in the association’s repair fund? The repair fund should be able to cover at least 10 of the cost of items that need replacing or repair.
Has the condo association had any legal issues? Go over the association’s bylaws with a real estate lawyer and double check that their bylaws are consistent with state bylaws in which you’re purchasing.
Read over the condo association’s minutes so as to get a real sense of the people on the board and what sort of gripes and complaints have been lodged so far.
About the writer: Philadelphia Real Estate Guide: Find Bella Vista PA real estate for sale. Search MLS listings in this unique Philadelphia market.
Seller Financing – Making A Comeback
If you are selling your home and your existing mortgage is already paid off and you don’t require the proceeds of the sale all at once then you may consider financing the sale yourself.
Unlike when investing in a fluctuating market holding the loan on a mortgage assures you of a predetermined interest rate. Now that banks have started tightening their lending criteria some prospective homeowners are finding it more difficult to obtaining mortgages and seller financing solves the problem. In addition to the investment benefit homeowners find that offering to take back the mortgage gives them a sellers advantage in this tight buyers market.
Generally the seller and the buyer come up with a mutually agreeable arrangement that outlines the payment deposit and payment schedule without the benefit of bank involvement. Instead of financing the entire mortgage amount the seller may consider taking a loan on a portion of it. Often times people want to buy but the banks won’t give them the amount they require. These types of loans are often short term and at a fairly high rate of interest.
It’s common for banks to request at least 20 percent down or the borrower will have to agree to pay for private mortgage insurance. This adds an extra charge of up to half a percentage point to the mortgage. Generally the individual seller requires only a minimum 10 percent down payment but it is to the buyers advantage to put down as much as possible.
Interest rates in a seller financing arrangement are generally a few points above market rates because the lender is taking on the risk especially if a buyer is pursuing this avenue of financing because of rejection from a bank or other lender. During the bargaining process sellers who normally would have to settle for a lower than desired price for their home can instead offer a slightly lower interest rate in return for the original asking price.
There are two common types of financing used with most vendor loans a purchase money mortgage or an installment contract. With a purchase money mortgage the seller pretty much plays the role of the bank. They receive a cash down payment from the buyer then proceed to take back the mortgage on the remainder of the balance. The buyer gets a deed and title to the property and commits to making monthly payments on interest and principal.
Installment contracts are generally held for shorter terms and the deed and title are not handed over until the amount is paid in full. The buyer lives in the home paying off the interest in regular installments over the length of the contract with the balance due when the loan matures. In most cases owner held mortgages have shorter terms of five to seven years and finish with a balloon payment.
Since there are no banks involved it is critical that the buyer does his research with regard to uncovering any tax liens or claims that could affect property transfer. Also important are a current property appraisal credit report and background check for both parties. If the buyer defaults then the owner must go through the process of foreclosure or eviction before they eventually retain original title again.
When a buyer is applying for an owner held mortgage they should provide the same financial documentation that they would if applying for a loan at a bank. The seller will need a good real estate attorney realtor and possibly an accountant overseeing the transaction.
About the writer: Visit LeslieEskildsen.com for all your Orange County real estate needs. Compare the market in surrounding areas including real estate in Rancho Santa Margarita.
