Investing in Pre-foreclusure makes more sense
Probably you have thought about investing in real state, but you have not done it because you thought you needed plenty of money in savings for a down payment, and perfect credit score along with strong banking relationships. Well it does not hurt to have those assets, but it’s not necessary to have a huge pile of cash and perfect credit score to buy a house cheap. It’s especially not necessary in the pre-foreclosure market. Pre-foreclosures are houses in the default phase of foreclosure; where the bank has filed the initial foreclosure papers, but the sheriff sale where the bank auctions off the property has not occurred yet. Buying during the pre-foreclosure period is one of the best ways for anyone to get involved in real estate with a substantial discount.
Let me give you some reasons why:
1.) When people are in default on their mortgage they have stopped making payments to the bank. So when you are negotiating with the seller or the bank, right up until the point when you buy, no-one is making the payments. They are losing money everyday and this gives you an advantage right of the bat. Lenders are under pressure to liquidate bad loans rather than take the property back
2.) Sellers in pre-foreclosure are some of the most motivated sellers you will find. Their world has been turned upside-down, they are about to lose their house, and their motivation is such that they just want out of the house and the bank off their back. They are likely to take a low ball offer.
3.) Buying a house in pre-foreclosure enables you to create unusually large equity increase. Recent economic uncertainty has caused a lot of foreclosures, and rising rates will cause more in coming years. By requesting the lender a discount of what is owed on their payoff, large equity can be created on houses that are totally “maxed out” with loans. This cannot be done on loans that are not in default and since you are buying the property at a lower price, your down payment and closing costs will be much less reducing your investment considerably.
Make no mistake about it; there are many ways to make real estate investing, but when you look at how easy pre-foreclosure makes it to buy houses cheap, it makes more sense.
Seen Enough? Contact Me Today and Have a Licensed Expert on your side!
Phone: (612)327.8452 or follow the links to find out more about buying or selling a home.
Wonder Why Homes are not Selling!
I must say that every now and then you just have to laugh about all the negative media. Houses are not selling fast, The mortgage industry debacle, Large lenders went out of business, more homes to the market, home prices are falling and everything that comes with this gigantic housing bubble burst phenomenon.
It is definitely a buyers market. But, buyers are hesitant about buying. Homeowners are realizing that they are not getting offers. Some sellers are wondering why their homes won’t sell when only 6 out of every home on the market sells each month. They might think is the market situation that is preventing them from selling their homes, but they should think again.
Let me illustrate some of the several things sellers actually do to keep their homes from selling or better yet, keep buyers from wanting to see their home.
- First they pay no attention to the market, statistics, trends and reality in a seller’s Market.
- They insist on a set price and remain 90 to 180 days behind the market by refusing to reduce the price to a marketable level.
- They provide a telephone number that nobody answers or has been disconnected.
- Never leave the house when buyers want to see it. They stay so they can watch them closely.
- Let the weeds grow high enough to hide the trash in the front yard. If buyers can’t see the trash they won’t know its there. Who cares about first impression?
- Keep lots of clutter by the front door. If there is a lot of junk there the buyer will have to slow down and see the house.
- Leave lots of dirt and dust on ledges and corners. It hides the deteriorated paint underneath.
- Leave furniture facing in different directions and make sure that love seat is covering the hole in the wall. Trash is good, holes are bad.
- Challenge the buyer. Let them guess what the room is for. Just because it has a closet doesn’t mean it’s a bedroom.
- If it’s broken, they leave it. Let the buyer fix it if they want it fixed.
- Leave the old appliances. They add character to the house. Especially if they don’t work. Save your money for the next house.
- Leave store boxes in the hallway. The buyer does know they are moving, why hide it?
- Tell their friends to keep their opinions to themselves. They are the sellers; they know better than everyone else what to do to sell their home.
Considering the tough market we are in, it is not always the reason why your home is not selling.
Notify me of New Articles via e-mail
Seen Enough? Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
Home Garage Sale Success
If you are like most Americans, you have a lot of stuff. We are a country of consumers. We buy, buy, buy, and most of it ends up in boxes in our closets and basements. Unfortunately we do not clear them up. T o avoid the pack rat syndrome, consider having a garage sale. A garage sale is a great way to get rid of unwanted junk, plus make some extra cash. Here are some tips to help your sale a success.
Collect Items
You can never start too early when it comes to collecting items for a garage sale. You can keep a large box in your basement for garage sale items all year long. During the year when you come across an item you no longer need or want, throw it in the box. An even better idea is to mark the items before they go to the box.
You will want to include the following information in your ad: Date and time of the sale, your address, and special items you have for sale that will draw customers. Be sure to mention items that are in demand (Like toys; collectibles; furniture). Make sure that you have signs strategically place in your community. Place them in high-traffic intersections within a few miles of your home. Use bright Yellow or Lime green paper colors with big lettering, they work well.
Price your Items
Mark every one of your items. You will avoid a lot of questions and haggling this way. Groups of similar items such as books or Cds are an exemption; it might be easier to just mark them $1 each rather each one of them. You might be able to get more in some items and less on others. Obviously new items will bring more (especially if the price tag is still on it!). When pricing, use quarter-dollar increments. Making change will be a lot easier.
A Note on Clothing
I have found that people are willing to spend good money on quality kids’ clothing at garage sales, but not adult clothing. If you have a lot of adult clothing that is in good condition and still in style, consider taking it to a consignment store instead.
Create the Atmosphere
Have a pleasant easy-listening music playing in the background; shoppers will linger longer. If your sale is in a hot day, you may want to have a large tub filled with ice and pop for sale. Have proper lightning; be sure it is not too dark in your garage.
Finishing Up
Be sure you remove your signs promptly. You do not want people knocking on your door after the sale is over. Then enjoy the best part…. Counting the money!
Notify me of New Articles via e-mail
Seen Enough? Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
The Benefits of Home Appraisals
Home appraisals aren’t always needed, but even so it still could be something that you will acquire in the future. You will be the one who will pay for the home appraisal, this could be bothersome, but in the end it could prove to be advantageous. Receiving a home appraisal tells you an estimate of how much your property is worth and there are several other benefits as well.
The main reason to get a home appraisal is to find out the value of your property. In the end, this is the main goal of a home appraisal. Though the appraisal offers other things as well, the thing that you will mainly care about is what you could get for your home if you were to sell.
Home appraisals can be used for other peoples homes as well and is not limited to getting a value on your home. For example, if you were to sell your own home by owner you may end up asking for too high of a price or too low of a price, though usually people tend to ask for more than what their house is worth. This could turn possible home buyers away from your house. A home appraisal could easily solve this problem and accurately tell you what your property is really worth.
There are many other cases that apply where you will need a home appraisal. For example when dividing property after a divorce, a home appraisal could verify how much the house is worth and give you an idea of how much to divide. This is very useful when one is planning to buy the house from his or her past partner.
In conclusion, there are many important situations that a home appraisal could easily solve or help. Though it is possible you will never need a home appraisal, it is still highly probably that one will come in handy.
Notify me of New Articles via e-mail
Seen Enough? Contact Me Today and Have a Licensed Expert on your side!
Phone: (651)783.2469 or follow the links to find out more about buying or selling a home.
Real Estate Titles and Deeds
Like several other kinds of investments, the most important thing you will want to have is a simple sheet of paper. This is the same for real estate; this sheet of paper will give verification that the property is yours or at least it is leased to you. This sheet of paper is known as a title or a deed. It will show the locality that you live in that you own your house and have paid of your loans.
These are only the basic terms
We all know that it is extremely important to fully read a contract before you sign on the dotted line. This applies to anything that requires a signature, including loans. If you don’t closely read the terms and conditions along with the fine lines of a loan it could lead to serious financial problems. Therefore make sure you read everything carefully and not just reading, make sure you understand them too. The following are a few things to pay attention to.
