Comet Settlement Real Estate

So you’ve decided to take advantage of the booming real estate market and put your house up for sale. As you know, buying a house is the most important purchase a consumer can make.

So it’s understandable that when prospective buyers come through your house, your home will be scrutinized like it’s never been before (well not since you bought it anyway!). Everyone knows you never get a second chance to make a first impression, so consider implementing the following cost-effective suggestions, before you welcome any potential buyers.

Consider the view that people see when they first drive up.

To ensure that you don’t send any potential buyers running down the driveway before they even see the house, make sure the exterior of the home is spotless. Paint or wash as necessary and don’t forget to mow the lawn and spruce up any outdoor greenery.

Upon entering your home, what will they see?

If you have a room that makes a statement when you walk in, perhaps the walls are painted a very bright colour or the style of furniture is eclectic, potential buyers may have a difficult time picturing their own stuff in the room. A fresh coat of paint in a neutral colour is an inexpensive but proven technique for increasing the appeal of any home. A clean, fresh smell makes a good impression. Try placing air fresheners in closets to eliminate musty smells. The smell of freshly baked bread also goes a long way. Don’t go overboard though – not everyone likes the strong scents of potpourri or incense. Of course, it goes without saying that clean and bright equals a sale. Scrub, clean, wash windows, walls, floors and tiles and shampoo dirty carpets – leaving no stone unturned.

Clean under sinks, repair any leaks and clean up any damage.

Use special cleaning agents to rid toilets, tubs and sinks of stains. If you have lots of stuff, it’s hard for potential buyers to see around it to see the room. Store any miscellaneous items, making sure to keep the garage, basement, attic and any closets tidy. This will make your house look more spacious and clean. Make repairs as necessary. If the baseboard around the cupboard is loose, for example, get out the hammer or glue and fasten it securely. Are the handles on the closet door wobbly? If so, get out the screwdriver and tighten them. Potential buyers don’t want to have to look after a bunch of little things when they move in and they may subconsciously be noting all the little repairs.

In the end, they might reject the house because they think all the minor repairs will amount to a lot of work for them. By implementing these simple tips, you can ensure that your house will be off the market in no time!

About The Author

John Carle & Sharon Gregresh are Realtors with Royal LePage – ArTeam in St. Albert, AB. They pride themselves on providing more than just real estate sales and listings. Their clients benefit from a much larger spectrum or real estate services. Contact them any time at information@workingtogether.ca or through their website at www.workingtogether.ca. They can be reached by phone at (780) 458-5595

Tags: finance, FSBO, home selling, house selling, investing, real estate, real estate inve, realtor, selling house

1. What happens to the seller’s credit rating when they allow an investor to short sell their property?

What typically happens is the loan will show up as “paid” on their credit report; however there will be a notation that says “settled for less than originally owed” or something along these lines. It is more favorable for a homeowner to short sell than to have a foreclosure on their credit report.

2. Where do you find investors for Short Sales?

Depending on where you live, you may see investors who advertise with bandit signs or in your local newspaper. Call the investors directly and ask them if they are experienced in doing short sales and if they would be interested in working with you. Another good place is your local real estate investors club meeting.

3. Define Short Sale?

A short sale is really a form of pre-foreclosure sale and occurs when the mortgagee agrees to accept less than the loan amount to avoid foreclosure. A negotiated short sale results in a discounted purchase price for the buyer. The buyer would finance the acquisition much the same as in any conventional realty acquisition… but without the luxury of time.

4. Can an owner profit from a Short Sale?

The seller cannot profit (monetarily) from a pre-foreclosure short sale..But there are always exceptions to the rule.

5. How do bankruptcies affect the possibility of doing a short sale?

Most mortgagees won’t consider a short sale if the homeowner is in bankruptcy…why? Because negotiating a short sale payoff is considered a collection activity. Collection activities are prohibited in bankruptcy.

6. Can somebody tell me what documents do I have to include in a Short Sale package?

Documents depend on the lender. Each lender has different requirements. It is typical to require hardship letter, purchase and sales contract, ECOR,settlement statement (HUD 1), net sheet, pay stubs, bank statements,personal financial sheet (monthly budget), amongst other things.

7. What percentage of mortgage companies send someone out for an appraisal on a possible short sale?

All lenders order a BPO or full appraisal of the property before making their decision to accept or reject the short sale offer. This is there only way of assessing the value of the property.

8. How late in the pre-foreclosure process can you start a short sale?

Try to allow a window of at least 90 days to effectuate a mortgagee approved, pre-foreclosure short sale.

9. What is a Due on Sale Clause?

“Due on Sale” Clause (DOS) Provision in a mortgage or deed of trust calling for the total payoff of the loan balance in the event of a sale or transfer of title to the secured real property. A contract provision which authorizes the lender, at its option, to declare immediately due and payable sums secured by the lender’s security instrument upon a sale of all or any part of the real property securing the loan without the lender’s prior written consent. For purposes of this definition, a sale or transfer means the conveyance of real property of any right, title or interest therein, whether legal or equitable, whether voluntary or involuntary, by for deed, leasehold interest with a term greater than three years, lease-option contract or any other method of conveyance of real property interests. Standard language which states that the loan must be paid when a house is sold.

10. Will banks allow a short sale when the owner has some or a good amount of equity?

If a property has what the lender would consider a substantial amount of equity, chances are they would consider allowing the property to foreclose and then reselling it closer to the retail value. Focus on homes that do not have much equity. Your job will be to create the equity in the home by negotiating a successful short sale.

Mr. Fowler has been a real estate investor for over 15 years specializing in the area of pre-foreclosure/short sale investing. He has bought and sold over 200 homes in Georgia, Florida, Louisiana, and Tennessee using the same short sale techniques that he teaches in his course, Making Money with Short Sales: The Complete Guide to Acquiring Property Pre-Foreclosure. Mr. Fowler currently resides in Atlanta Georgia. He also spends many hours per month teaching his creative real estate investing techniques to other aspiring investors across the country.

http://www.ShortSaleDeals.com

Tags: foreclosure, pre-foreclosures, preforeclosures, real estate, real estate investing, short sales

Real estate investing can be a dream career when the process of buying and selling is mastered. The biggest challenge in real estate investing is not the money to get started or the availability of the product. Real estate investing’s biggest challenge is judgment. Personal decisions in making the purchase, fixing up the right things, and making the sale require judgment that comes from experience. The second and 100th property should involve better judgment than the first.

An approach to the first acquisition in a real estate investing career involves analysis of the neighborhood.

If the target property is located in a familiar neighborhood, an analysis is clouded by past memories and feelings. Familiarity can preclude objectivity.

And if the target property is located in an unfamiliar neighborhood, the analysis is shrouded in immediate impressions that may or may not be accurate.

Real estate investing today must consider unfavorable elements like drug and prostitution traffic, crime statistics, and the overall visual impression of neighborhood negligence and abuse by property owners and/or tenants. The windshield view will not reveal the whole story.

Research at city planning and the police department might be a starting point, if the initial drive through the neighborhood does not arrive at a negative conclusion. Casual conversations with neighbors might provide clues. Watching from a perch unobtrusively during certain hours might be helpful, such as after school is out and after dark.

If analysis leads to the formation of good judgment, time is needed to assess “the Neighborhood Factor.” When I plunged into my first year of real estate investing, no one warned me of “the Neighborhood Factor,” and still I sometimes overlook it even millions of dollars in property purchases later. Buying $1 million in rental houses during my first year, and another $1 million in properties the next year did not leave me much time for analysis. However, when placing a makeover house on the market after the work is completed, “the Neighborhood Factor” has often come back to haunt me.

The bottom line for developing judgment about “the Neighborhood Factor” is the consumer’s windshield view. The real estate investor can become enamoured over the potential profit margin in a “good deal.” But the home-buyer and house-hunter make instant assessments upon a first approach to the house for sale. Their initial impression of “the Neighborhood Factor” is untrained and irreversible. And in real estate investing, the prospect’s first impression of “the Neighborhood Factor” overshadows their impression of your labored makeover. More times than I like to admit, I have created a “Dream House” from a junker, only to experience a slow sale because of “the Neighborhood Factor.”

Phil Speer, Ph.D., started his real estate investing career 25 years ago. Without the availability of credit and using only a $10 bill, he purchased $1 million in properties in his first year, and had accumulated $10 million in properties by his fourth year. He was featured in a Wall St.Journal editorial as most successful investor in the Nothing Down Real Estate Movement, and was honored with a Caribbean cruise as top investor of the year. In his hometown of Nashville, Tennessee, he has been a businessman and Human Resources Consultant for 30 years. He is an author, speaker and seminar director. To learn how to profit in real estate investing, even without cash or credit, read his report at http://www.CashinHouses.com/. Subscription is free to his Fix-up Ezine – http://www.AAREIT.com/.

Tags: investing in real estate, real estate, real estate investing, real estate investment, real estate school

As the second largest city geographically in Florida, this beautiful southwestern attraction is located on the banks of the Caloosahatchee River. It also lies between the Gulf of Mexico and part of the Intracoastal Waterway. With a population of more than 138,000, Cape Coral is known as a vibrant city that promotes growth industrially, educationally, and culturally. Residents take pride in the area’s momentous growth, ideal weather, resource availability, and the affordable cost of living. It’s no surprise that a Cape Coral realtor is destined to be successful in the numerous real estate transactions that take place in this city.

History:

Cape Coral has developed into what it is today in just a 40-year span. This young city was incorporated in 1970 by two land speculators that placed confidence in the host of opportunities that waterfront living would bring. The Rosen Brothers purchased the property, built more than 400 miles of canals, and launched a major marketing project that would later result in the sale of thousands of residential building sites. Today, Cape Coral continues to experience rapid growth economically and socially. The city is even able to distinguish itself from others since it features thousands of waterfront residential properties on canals and direct saltwater routes to the Gulf of Mexico. Cape Coral is proof that a little investment can go a long way.

Qualities:

No matter what leisurely activity catches your interest, Cape Coral guarantees plenty of fun in the sun. You will definitely enjoy all of the park, playgrounds, golf, and sailing that the city has to offer. Do you like to go fishing? Southwest Florida is nationally recognized for saltwater fishing, and the extensive miles of canal undoubtedly make Cape Coral a haven for fishermen and boaters. If you are looking to make the most out of a peaceful day, Jaycee Park features many areas designated for picnicking, romantic strolls, and sightseeing. Four Freedoms Park offers more energetic outings that include a playground area for children and a recreation center. You can also visit Veteran’s Memorial Park to engage in sporting events like basketball or bocci ball. Are you an aqua-lover? If so, the Sun Splash Family Water Park provides 15 acres of two dozen water attractions. A Cape Coral realtor will inform you of all these wonderful activities and much more when you consult about prospective properties.

Housing Opportunities:

One of the duties of a Cape Coral realtor is to confirm that absolutely nothing is better than the residential opportunities found in this magnificent city. There is a wide range of waterfront residences to suit your tastes at fairly reasonable prices. You can opt to dwell in a cozy condominium near the Gulf, a luxury villa surrounded by the city’s most lavish clubhouse, or even a spacious single family flat with a waterfront view for the whole family to enjoy. The housing opportunities are limitless, and investment possibilities are abundant. Since Cape Coral acquires so much land mass, it is easy to purchase pristine property for your own private use.

You can look forward to a literally bright future by conversing with a Cape Coral realtor about the endless benefits that this endearing city has to offer.

Inside Real Estate in a network entirely devoted to real estate information. Our staff of nationwide writers has provided a library of over 25,000 real estate articles. Inside-Real-Estate covers several topics from the basic “how to’s” of real estate to city specific real estate information.

Tags: agent, homes, real estate, real estate articles, real estate directory, real estate information, realtor

In my profession as a home inspector, I get to witness some amazing flipping deals. Some are profitable, some aren’t. Here are the common mistakes I see flipper continuing to make.

#1. Falling In Love With The Home: Hey, it’s just a house built out of sticks and clay. There are thousands more. If you can’t keep from falling in love with every home you see, then flipping homes isn’t for you. Never forget it’s a business, treat it that way.

#2. Keep Your Mouth Shut! There’s an old saying in the Navy. “Loose lips sink ships”. More than once I’ve inspected a home for an Investor and have the Investor call up a week later saying they lost the deal to someone else. Some people just can’t keep their mouth’s shut. Wait until you walk away from the closing table to tell everyone what a deal you made!

#3. First Impressions Are The Most Important: Spend the dough on the landscaping and exterior of the front of the home. I’ve seen more homes sold and more homes fallen in love with (see rule #1) from a great first impression than any other single item. Clean and shiny door knobs, door knockers, coach lamps and address numbers will add to the impression. If it doesn’t add cosmetically to the home, get rid of it.

#4. Don’t go overbored The simple fact is that most homes can be flipped for a decent profit by cleaning and replacing the carpet and paint. Too many times flippers think they need to sink thousands of dollars on a home to make it sell.

Many times what happens is they will remodel the home and it ends up being priced higher than anything in the neighborhood and sits on the market untill the Investor drops the price. Take a page from the flipping pro’s book. Keep it to the basics. You’re trying to make a profit, not make the front cover of a glamour magazine.

#5. When In Doubt, Reread Rule #1 Some people need Rule #1 stapled to their forheads!

#6. Don’t Get Greedy! If you’ve priced your home well, then take the first offer that comes along. It’s not worth your home setting on the market for months because you’re too tight to come off the price a thousand or two. Reread rule #1!

Donald Lawson is a Professional Real Estate Inspector licensed in Texas (#5824) and Oklahoma (#454). He currently owns and operates V.I.P. Home Inspections, a Houston Home Inspection company. If you’re interested in investment opportunity’s in Houston Tx, see his Houston Real Estate page.

Tags: flipping a home, flipping houses, home inspections, houston, real estate, real estate investment

There are advantages to using the new roofing products. The cost, durability, and life cycle are longer. The new products are created from recycled and natural materials. When your roof, made of shingles, needs repair, the old shingles are removed and taken to a landfill.

If you are considering one of the newer roofs, you must take the weight of the material into consideration. Some of the newer materials, such as slate and tile, can weight five to ten times more than asphalt shingles; therefore, the supports must be strong enough to hold the added weight.

While this will increase the expense of installation, the expense will only occur once. To determine the actual cost, you must take both the cost of the product and the added expense of strengthening the rafters or trusses. Then determine the length of time of your product warranty.

If you are concerned about the environment, you can use recycled plastic products. Since they weigh approximately the same as shingle, you will not have to strengthen the support system. This will save you added expense while still allowing you to gain the benefits of the new materials. Plastic can carry a warranty as long as fifty years.

Other quality materials to consider using are:

1. Slate
2. Tile
3. Shakes
4. Fiber-cent
5. Cedar Shakes
6. Pine shakes

There are companies out there today specializing in a variety of roofing materials. Check online for more information. Improving and maintaining your Real Estate will help when you decide to sell your home.

Nan is an Accountant and Real Estate Professional with an information and research site online
RealEstateLady and a Business
Writer with a blog BusinessTips.

Tags: home improvement, metal, real estate, roof, shingle, slate

A typical real estate commission on a $234,000 home (national median price for all existing homes as of July 2005) is over $16,000. In many areas the cut a real estate broker gets is much higher. A home owner can easily save that money by selling on their own. All that is needed is a basic understanding of the real estate market and a touch of marketing sense. Here are the “Big Five” of selling any home.

1. Pricing. Set a realistic asking price. While it might be tempting to inflate the asking price just in case someone really loves the home or to make room for negotiations, the result is a home that can’t stand the competition. The market always sets the price. Find out what the competition has to offer and set your price accordingly.

The best way to do this is have three or four real estate brokers provide a free market analysis. Yes, you will be wasting their time if you sell on your own. But don’t worry; real estate brokers are used to having their time wasted. If we earned a $20,000 commission every time we went out we’d arrive at your home in a limousine. Fact is, nine out of ten outings are a bust for us. It’s the main reason why commissions are as high as they are. In any event, you may end up listing with one of them. Fact is, selling by owner really isn’t for everyone. But pricing your home correctly is the first step in a successful transaction.

If you choose not to have a market analysis from your local Realtors you will have to do your own calculations. In order to do that you will need a fresh batch of comparable sales. The best place to get these is from your local assessor or municipal records. You will need between three and five recent comparable sales. Make sure they really are comparable. They must be in the same location (ideally within a half mile) they must be the same style and size as your home (number of bedrooms, baths, garage, etc.) and they must be in the same condition as your home. Drive by each. Take pictures.

The hard part is when you can’t find exact comparables. You will then have to make adjustments for the differences. The best way is to ask your assessor how much an extra bath, for instance, influences the market value. Hopefully they will provide an approximation.

If you can’t come up with an accurate dollar amount consider hiring a professional appraiser. They can be found in the yellow pages or online. And while the service costs several hundred dollars it’s a small price compared to what you will save by successfully selling on your own.

Avoid pricing your home based on how much you paid, how much you owe, the amount of the municipal assessment, the cost of improvements you have added, or what a friend or neighbor thinks it’s worth. The market doesn’t care a bit about these factors.

However you arrive at a price it will usually be expressed as a price range. Aim for the upper end of the range if your home is generally in better condition and has nicer amenities than the competition. Aim for the low end if you need a quick sale. Otherwise stay in the middle and prepare to be flexible.

2. Appearance. My father always said, you never get a second chance to make a first impression. Nowhere is this truer than marketing your home. Anything amissincluding a funny smellwill send your prospects on to the next house. Take a picture of the front. Compare your “curb appeal” with the pictures you took of the competition. Pretend your home is going to be in House Beautiful Magazine. Clean, paint, resurface, mow, weed, trim, plant, replace anything that looks shabby or worn.
Now step inside. See your home as if for the first time, as buyers will. A fresh coat of paint, new draperies, and new carpeting (or professional cleaning) will do wonders for your sales appeal. Again, consider what you would be paying a Realtor. Remove all clutter and excess furniture. The only items in a bedroom should be a bed and a dresser. Anything else makes the rooms look smaller.

Next evaluate the kitchen and the baths. These are the single most important rooms in the house in terms of buyer appeal. Again, clean, paint, and consider replacing the flooring with something light and bright. Wash the windows. If your appliances or fixtures are old consider replacing them. Most buyers these days are including a contingency in their offer to purchase contract for a professional home inspection. If an appliance or fixture is a problem it will be noted and the buyer will expect it to be replaced–or void the contract. Might as well get that part out of the way up front when it can boost your marketing efforts. This is true of any structural, mechanical, electrical, foundation, roof covering, or plumbing system, etc. in the house. If there’s a problem it’s best to take care of it beforehand. In many areas state and federal disclosure laws mandate that an owner reveals any problems they are aware of, including the possible presence of lead paint, mold, radon, or asbestos. Be aware of these laws. A good way is to hire your own inspector before the house is put up for sale.

3. Advertising. When the house is bright and shining to the point where you wonder if you really want to sell such a treasure it’s time to hit the market. This is the easy part. Run print ads in the leading daily newspaper noted for home classifieds. Note the price, location, number of bedrooms and baths and the three nicest features of your homethe things that made you buy it in the first place. You needn’t bother with monthly publications such as For Sale By Owner magazines. Buyers quickly discover that by the time a good home is listed it’s sold. If you use the Internet, make sure the site is very popular. The easiest way to do this is enter a search term a local buyer would use in Yahoo or Google. For instance: you would search “homes for sale in (your town)” or “home listings in (your town)”. Make sure the site you’re considering comes up on the first page. You may also want to forego open houses. Only 1% of homes ever sell on open house. What you mostly get are “Looky Lews” and curious neighbors.

Use free word of mouth advertising. Tell everyone you know, neighbors, friends, family, coworkers that your home is for sale. Invest in a professional yard sign. Note the basic features of the home as in your ad as well as “By Appointment Only” but don’t list the price. Be available to make appointments when your ads are running. Don’t rely on voice mail.

When the buyers arrive give them a warm welcome. Have the dinning room table set with your best china. Place fresh flowers. If you have a whirlpool tub put out a bottle of Champaign and two glasses. Bake bread or cookies, or just put a little vanilla and cinnamon in the oven at low heat.

4. Negotiations. If you’ve followed the plan up to now you will soon be getting offers. Be prepared for a low offer but when any offer comes in always insist on a pre-approval letter from the buyer’s lender. Review the offer with your attorney. You can counter the offer but be aware that the buyers are under no obligation to accept your counter-offer. And that anything but full acceptance of their offer usually voids it. All terms of the contract are negotiable, not just the price.

Do not, under any circumstances, become emotionally involved in the negotiations. This is the one area owners are never as good at as Realtors (except when it’s the Realtor’s own property in question). Consider only whether you can realistically do better and that the amount you will net will allow you to proceed with your move.

When price and terms are agreed upon get everything in writing. Do not fail to use a qualified real estate attorney.

5. Processing Period. The time between when a contract is fully executed and the time you give possession is when all contingencies in the contract are met. Different areas have different customs as to who does what and who pays the bill. But in general there will be a time period for both the buyer and the seller to have the contract ratified by their attorneys. In addition, a mortgage contingency will allow the buyer to secure financing based on their qualifications and the bank’s appraisal of the home’s worth. Usually there is a provision for a structural inspection, as noted earlier, for the buyer to assess the condition of the home. A target closing date is also included when possession is given the new owners. Generally, this is an estimate of transfer of ownership with delays common, unless wording such as “time is of the essence” is incorporated into the contract. Beyond the basics there are a host of other possibilities for contingencies in a contract. Anything, in fact, that is legal can be included. That’s why you should always use a real estate attorney.

Finally, the closing day comes and it’s on to your next dwelling. It’s been a hard roadmuch harder than most people expectbut the extra money you save will go a long way towards easing your pain in your new home. Enjoy!

Dennis Maier is a 33 yr. veteran Realtor and Principal Broker and CEO of Real Estate New York. He is the author of the book: Sell Your Own Home for an Embarrassing Profit.

DennisM@RENY.net
http://RENY.net

Tags: For Sale By Owner, home for sale, MLS, real estate, Real Estate Listing

Finally home prices are settling down and the overheated housing market is cooling. Last few years selling house has been easy, put an ad in the newspaper or conduct an open house and you will get multiple offers in weeks.

If you are in a hot market and/or you have priced your house correctly, buyers may get into a bidding war and the seller may get more than the asking price. Last summer my friend bid for a house in Middlesex County, NJ and there were 15 people in the queue at 9am before the first open house. Buyer got 8 offers in the very first week and all the buyers or buyer’s agents were asked to give a presentation for 5 minutes explaining why the house should be sold to them and to give their best offer. The house was sold 15K more than the asking price. Now market is cooling down, builders are nervous and cutting their projection and wooing buyers with incentive and upgrades. The Commerce Department, for example, said sales of new homes in September fell shy of expectations. There is a good article on USA Today by Adam Shell – Overheated housing market is cooling.

Last week luxury home builder, Toll Brothers announced that it will build fewer homes in 2006 as it faces softening demand in some markets. Toll’s forecast may be another signal that the U.S. housing boom that has raged for the past three years and buoyed the national economy may be coming to an end. Interest rates on home loans, which have fueled the housing boom, have risen to their highest levels in 16 months.

To protect yourself when you buy a home, adopt a long term strategy. Don’t buy unless you plan to hold the property for at least 5-10 years. This way you can ride out any downturns in the market and sell when the market improves. Be careful while opting for interest only load, avoid getting into a situation where you are forced to sell in a down market. Make sure the home you are buying will satisfy your long-term need e.g.: don’t buy a house that is too small. Many people I know said they are interested in real estate because they saw someone else make money from the rapid appreciation of the market over the last few years. But, buying real estate solely for short-term appreciation is often a big gamble!

Senior Partner
http://www.YourSaleByOwner.com/

Buy/Sell FSBO properties online.

Tags: Buy House, Commission, For Sale By Owner, FSBO, real estate, Sell House, Your Sale By Owner, YSBO

If you are investing in real estate you will face a variety of challenges. First you have to find the right property. Finding the right property is a combination of personal preferences and opportunities involved in a real estate deal. My most important real estate investment principle is; “You make money with real estate when you buy the property not when you sell it”. This means that I wouldn’t touch a rehab property where the purchase price is not below 65%-70% of the market value.

Why do you need such a low price to make it work? This is quite simple. A common guideline among investors is that you must make at least $10,000 to make it worthwhile. Remember you’re an investor and not a handyman. Rehab projects last typically 4-6 months, sometimes even longer. You don’t want to end up making minimum wage as a handyman after the project is done. Quite frankly this is not uncommon for first time investors.

Real estate investment is all about numbers. If the numbers are right you must make every mistake in the book to turn your project into a financial disaster. That’s why you must buy the property as cheap as possible. Selling the property is your least problem. First you have to put together a budget. Here’s a little example.

Property A is located in a decent neighborhood with average home resale values of $150,000. That’s what our property will appraise after the repairs are done. We also take out a hard money loan with 4 points and 12% (interest only) for 100% of the purchase price. We calculate that the property will sell for $150,000 in 6 months. There are about $10,000 in repairs you have to take care of.

Property A

Purchase Price $100,000

Purchase Closing Cost $8,000 (fees + 4 points)

Holding Cost $6,000 (6 months of interest)

Repair Cost $10,000

Insurance, Utilities $2,000 (you need a vacant property insurance which is more expensive)

Selling Closing Cost $13,000 (6% realtor fee of $150,000 + closing cost)

Total $139,000

Selling Price $150,000

Expenses -$139,000

Total Profit $11,000

This is just a very simple example, but I hope you get the picture. Keeping track of the numbers is essential in real estate investment. In the example above just imagine what happens if you spend more money for the repairs or you have to sell the property for less money. Even worst if you can’t sell the property within 6 months and after 9 months you sell it for less money. Not only did you loose on the selling price you had 3 months of interest piling up as well.

When you’re investing in rehab properties you have to have an exit strategy. My exit strategy is, to rent the house and refinance the hard money loan if I can’t sell the property after 6 months for the price I’m asking for. This will cover my monthly expenses and I have more time to sell the property when the market is better. Actually converting a rehab property into a rental can be a very profitable choice of real estate investment. Friends of mine are doing quite well with this strategy.

Bottom-line; crunch the numbers, make a budget, keep track of your expenses and have an exit strategy. Having this in place you’re good to go.

Peter Dobler is a 20+ year veteran in the IT business. He is an active Real Estate Investor and a successful Internet business owner.
Learn more about real estate investments at http://www.doblerproperties.com or send a blank email to mailto:suncoastrenttoown@getresponse.com

Tags: closing cost, market value, profits, real estate, real estate investment, rehab, rental income

Whether you’re buying or selling, reading real estate ads can be confusing. Here’s a primer on the styles mentioned in the ads.

Home Styles

What’s the difference between a Tudor and Colonial style? What about a Colonial and Dutch Colonial? Read on to find out.

“Colonial,” “Georgian,” or “Federal” style

Terms used when talking about a two (could be 3 or two and one half) story house that is very symmetrical. The front door is in the center of the house. There are an equal number of windows on each side. There is an upstairs window over each downstairs window and over the front door. There are usually exterior shutters at the windows. (Note: The houses which inspired this very traditional style were built in the early days of our country and are seen mostly in the East.)

“Tudor” style

A style of home that borrows from merry old England. It typically has exposed heavy dark beams. Some of the beams are perpendicular, some horizontal, and some at a forty five degree angle. The exterior walls are usually stucco between the beams. The lower story is usually of brick or stone. The upper story often has sections that are cantilevered out over the lower story. Box bay windows and diamond shaped panes are frequent features as are large chimneys.

“Dutch Colonial” style

Very much like colonial style except that the roof is a gambrel roof. That is, it’s shaped like most folks think of a barn roof. It slopes down from a center ridge line and then, usually a little more than half way to the edge, the angle of the slope becomes sharper creating a second ridge at the front and back where the angle changes.

“Spanish,” “Mexican,” “Hacienda” style

Seen mostly in the South and West of our country, this style incorporates stucco or adobe type bricks and red half round roof tiles. These homes are often built in a “U” shape with the walls of the house extended to enclose the “U.” This design device can give a pleasant feeling of privacy to outdoor areas. Door and window openings with curved tops and wrought iron grilles, door hinges, and handles are frequent features.

Summary

When looking at homes, you’ll find particular styles appeal to you. Once you identify the styles, you can narrow your search for the perfect home.

Raynor James is with http://www.fsboamerica.org – FSBO homes for sale by owner. Visit our home buying page at http://www.fsboamerica.org/buyer.cfm to see homes for sale by owner.

Tags: colonial, federal, georgian, hacienda, home styles, meanings, real estate, spanish, tudor