Archive for April, 2011

Home Equity And Mortgages 101

 

Owning your own house may seem like a dream for some. But it does not have to remain a dream. You can make it a reality. Are you one thinking of buying your own home? Taking that plunge? Then knowing the proper knowledge will help you in the process.

 

Do you know what a mortgage is? How about home equity? You will need to understand the basics so that you can be equipped to handle the concepts of owning a house and paying for it.

 

Home equity and home mortgage are two various things. You will need to know these concepts for everybody who is taking the next step in buying a house. What exactly is home mortgage, you ask? A home mortgage is actually a loan that a person takes out to buy a house.

 

Typically, most would-be buyers of homes can’t afford to immediately fully pay off a property. Simply because they cannot pay entirely, they would apply for a loan from lending companies such as banks, etc.

 

Homeowners would then be paying off the house in small payments that are schemed to take effect in years depending on agreed terms. Of course, with any other loans, interest rates would be applied.

 

Finding the right lender is beneficial to be able to get the best interest rates for you. It takes usually 25-30 years for homeowners to pay the house off completely.

 

What about home equity? What does it mean? Home equity is the accumulated sum of money which has already been paid off against the value of the house. There is a formula to determine your home equity.

 

The number of the balance of the mortgage must be subtracted from your current fair market price of your house. In simpler terms, your equity is increased as your mortgage balance is decreased.

 

Let’s say your house was appraised for an amount of $250,000. $150,000 is owed from the mortgage. Your home equity can be computed to $100,000. People reap the benefits of their established home equity.

 

They may borrow from it and even utilize the money for home improvements, other investments, and even college tuition.

 

If they would like to reap the benefits of their home equity, homeowners can go through the process of home equity loan. This is the secured kind of loan (secured loans are protected by an asset) that has a basis on the equity amount that you have in your home.

 

You have the option of borrowing the full amount of equity but think about that the house will be considered the collateral for your loan.

 

Many of these concepts might be hard to comprehend at first, but you will be able to fully understand all the concepts as you go through the process. Make sure that you understand all the concepts behind your purchase so that you can not be baffled.

 

Home Foreclosure Listings – Variety and Value

Has the recent press on the flood of foreclosures gotten you, the real estate investor, curious about expanding your business to concentrate on foreclosed homes? Or perhaps you are a novice to real estate investing but can see the money making possibilities in purchasing a foreclosed home . Lenders definitely want to rid themselves of these distressed properties in order to avoid further losses and in hopes of being able to recover some of the money owed to them. Because of that , their foreclosed homes are usually deeply discounted and provide the real estate investor a rare opportunity to buy at far under market value, with bigger potential for profit when reselling the home . The traditional method of finding these distressed properties was certainly labor-intensive and took more time . The real estate investor would research agents to ask what properties they were representing and scan the newspaper for ads on foreclosed properties . Better information is listed online at one of the many new home foreclosure listings services that have become big players since the foreclosure crisis began . These home foreclosure listings services provide the real estate investor with all the data needed to come to an informed buying decision , in one place and normally for a very small cost . The real estate investor can search for properties in their own community or nationwide , by zip code or price , by size of home or number of bathrooms , and often will be provided with photos of the targethome . With the criteria of what you are searching for, the home foreclosure listings service may also send the real estate investor email alerts when a similar home becomes available, and most include an RSS feed feature. Considering the time and effort that can be saved by having all this information readily available, the home foreclosure listings service gives good value for the fee .

Property Investment Seminar – Get Busy Networking

Sometimes a real estate investor or novice just learning the ropes of real estate investing can feel some hesitation about attending a property investment seminar. After all, these training sessions seem to be held with regular frequently, they require that you pay a price for admission , and they take time out of a person’s hectic schedule . It’s smart to stop and reconsider , then do a little research about the sponsor of the property investment seminar. You may be surprised to learn that some very recognizable names with flawless track-records will be the featured presenter at an event. By attending the particular property investment seminar, you will have an opportunity to come away with insider knowledge, information, tips, and ideas from some of the most original and innovative minds in the real estate industry. If that’s not worth the cost of admission , the networking opportunities often are. The property investment seminar will likely attract an eclectic audience including other people interested in getting started in real estate investing, mortgage brokers and experts in investment property loans, individuals who earn their living as a real estate investor, financial professionals and even potential investors. It’s an opportunity to meet and trade business cards, maybe with an eye on a prospective partnership with someone you spent some time with at the event! These same property investment seminar presenters also frequently host webinar events as well, so you can attend right at your computer and learn about a specific industry subject . The free webinars are an valuable source of information and motivation , and are usually posted on the speaker’s website allowing you to listen at a convenient time if you are unable to be at the live event. Virtual training available to you night and day ! Knowledge is power, so don’t miss any chance to sharpen your real estate investing skills.

Sell And Rent Back Companies : The Basics Explained

As the global economic crisis continues, and in the face of rising interest rates, many homeowners have begun to ponder the possibility of using a sell and rent back company to help pay off large delinquent debts and still remain in their home. But is using a sell and rent back company always a good idea? Is it ever a good idea? In this article we will define what a sell and rent back company does, along with some tips to help you make a decision on whether or not a sell and rent back company is the right strategy for you.

A sell and rent back company, as the name implies, is a company that will buy your home quickly, usually well below the market rate, and rent it back to you based on the current rental market rate. Sell and rent back companies typically pay no more than 60-70 percent of what your home is worth at the time, sometimes less, and many will provide you with the option to buy your house back at a later date based on the current market rate.

So who could benefit from a sell and rent back company? Who are these real estate transactions designed to attract? A sell and rent back company is essentially targeting homeowners who are so far in debt that they have very few options left. Either they sell their home at a discount to a sell and rent back company and continue to live there, or continue to be delinquent on their mortgage loan at which point they may lose the house anyway. A sell and rent back company are often the last resort for homeowners who are mired with debt they can never pay off.

The disadvantages of using a sell and rent back company are many, but perhaps the most glaring drawback is that the seller is forced to sell for much less than the home is worth, and the rent he will then pay will be akin to paying the buyer’s mortgage. Some sell and rent back companies use pressure tactics to coerce the seller to sell quickly, hoping to make the most in profits. Customer service and quality service with these companies depends on which one you use, but most don’t take into consideration how hard this decision is for you.

Nobody wants to completely lose their house if they can avoid it, but avoiding this may be difficult for those people who have lost their jobs or become muddied in debt. In these instances, a sell and rent back company might be just the option they need to stay in their home forever—only this time as a renter.

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Learn About Sell And Rent Back Companies

The world is going through one of the worst financial depressions in recent memory and everyone is feeling the effects. Though, for some people, tightening the purse strings further than they currently are is impossible and finding ways to get money to pay off debts, or just to survive, seems like a constant battle between your income and your expenditure.

One way that could help you to a massive extent in the short term is selling your property to rent back. To summarize this concept, the answer is in the title; certain organizations will offer to purchase your property at a particular rate, usually between 60 and 70 per cent, and a contract enables you to continue living in the property, paying monthly rent. This will free up capital that you have invested in the property over the course of your mortgage.

If you have been experiencing crippling personal debt and you are struggling to find money to pay for all your monthly expenses, then this is a great way to release the equity that has built up in your property. Sell to rent back is one of the quickest ways to gain a large sum of money in a very short space of time, and can solve your short term debt problems.

Not only do you have the advantage of gaining capital in a short space of time, but you also would not have to relocate as if you were selling your property by other means. This means not having to worry about possibly looking for employment, registering your children at a new school, finding good dental practices and all the other things that you would have to do in any other circumstances.

Before you even consider selling your property and renting it back, you need to do some research. As the industry is generally unregulated there are some unscrupulous companies out there with the intent on getting hold of your hard earned cash, so choose a company wisely. Decide on a company that has been trading for a relatively long period, and has received good reviews on financial web forums.

The process doesn’t end once you have decided on a company. Your involvement continues through negotiating the terms and conditions of the sale and rent contracts. Always make sure that you know the ins and outs of the whole agreement and that the company are completely clear when you require additional information. Be prepared to walk away from the contract if there is anything at all that causes you concern.

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West Vancouver homes and real estate mountains – A gracious overview of the activities that abound!

West Vancouver is simply entered from Georgia Street in Downtown Vancouver via the landmark Lion’s Gate Bridge, and is a northwest community of Downtown Vancouver real estate under its own municipal jurisdiction.

West Vancouver

You could easily track down ferries that will take you to Bowen Island, Nanaimo, and Langdale that depart from Horseshoe Bay. The bridge you traverse is 1,823 meters long and brings you directly to the border of West Vancouver & North Vancouver onto Marine Drive. Marine Drive is West Vancouver’s main commercial strip, which traverses Burrard Inlet and goes down to to Horseshoe Bay, where you will find the ferry community in this region, the westernmost point of West Vancouver. Highway 1, which is usually known as the Trans Canada Highway, stops here and Highway 99 can be continued from here on on your way to Whistler, B.C.

The Municipality of West Vancouver make sure that the region remains quiet and upscale not to mention a laid back community. This is just one of the reasons why West Vancouver real estate has become so popular. Park Royal Shopping Centre is the first and one mall located in West Vancouver, which you can get to right off the Lion’s Gate Bridge on Marine Drive. The mall is a sizable attraction to this town as it possesses over 280 different stores and restaurants available to you. Marine Drive is the home of two enclosed malls, one at the north side and the other on the south end. The main mode of transportation going west, east to North Vancouver, or heading south to Downtown, is the bus that makes stops on both ends of the street. Prestigious names such as Whole Foods and Starbucks are open to you in the popular outdoor shopping venue near the South Mall, Village at Park Royal.

One of the most common gathering areas in the North Shore area remains Ambleside Beach. From the park, you may notice resplendent views of Downtown Vancouver, Stanley Park, and the Lions Gate Bridge, which are all family friendly aspects of this area. It is of course of no surprise when West Vancouver real estate sky rocketed above many other areas in the world. Ableside transforms into a popular beach location in the summer, but at the other times of the year you can have a lovely date there, take your kids to play, or a relaxing walk with your dog. Existing as more of a historic nature attraction is the Lighthouse Park which is approximate to the western end of West Vancouver. At this park you may see the lighthouse itself, the Municipal landmark, some nice steep/flat trails with extremely dense foliage spread across its 185 acre land area. One of the original lighthouse stations that was manned in Canada was Point Atkinson, where Lighthouse Park received its name from.

West Vancouver possesses 3 secondary schools and 14 primary and elementary schools found in its jurisdiction. Among those is two private schools, and a greatly renowned public school district.

Commercial Mortgage Loan – Asking the Investors

As we all experience this ongoing credit crunch, even excellent investors and developers with profitable properties are finding it challenging to get financing. Their deals have merit, but financial institutions are caught in a liquidity trap, and have trouble turning the mortgages they originate into cash. Investors have sought out alternate sources for mortgage funds. The privately funded commercial mortgage loan has grown in power and mainstream acceptance . Private lenders – wealthy individuals, hedge funds, and other pools of capital – will lend their own money . Private loans, often called hard money loans, can close quickly , sometimes in just a few days, in contrast to conventional loans which can take more than three months to finalize . If the private lender approves of your deal and you are able to demonstrate an ability to repay the loan, they can close the loan right away . These lenders are equity-based, and to a degree less concerned with the borrower’s credit, preferring to base decisions on the collateral property, which ideally has substantial equity. Most hard money lenders will not lend more than 70% of the purchase price, so the borrower should be expecting a bigger down payment to get the loan. The borrower is expected to have some cash in the deal, generally a minimum of 10%. Hard money lenders prefer income producing properties. With conventional financial institutions not able or unwilling to take on a new commercial mortgage loan, the hard money lenders have come forward to fill the gap and are ready to lend against quality properties. Hard money loans derived their name based on the obvious fact that they are loans secured by a hard asset, a property. Private lending has become a mainstream business, and the fastest growing segment of finance for real estate, both residential and commercial. Professional real estate investors are comfortable with and helped daily by the availability of private money. For the experienced real estate investor, a privately funded commercial mortgage loan can be an profitable partner .

Licensing is a different route to feel extra satisfied within your profession

Selling real estate might be an exciting job, and monetarily satisfying as well, However, working while in the sector can also be very complex, along with a great deal of energy on your aspect, as well as enough instruction, are what you wish if you would like to begin a fulfilling career.

Here are some places where it is possible to prepare to make your real estate license:
- You will probably have the ability to examine locally, and a few real estate school are a part of a nationwide network.
- Real estate courses might be made available at a nearby community university, and you also could also earn your real estate license on the internet .
- Some real estate agencies and brokers supply coaching that can assist you prepare on your state real estate examination. The fees for this service fluctuate, so you will almost certainly be asked to sign an agreement stating you are willing to get the job done for that organization when you’ve got handed the licensing test.

What it is best to know

The requirements for earning a real estate license are certainly not the identical in all 50 states, even though every last state requires candidates to pass a certification test, which entails payment of a charge previously becoming granted one. The programs of examine also vary, and though one state may need 60 hrs of instruction, one other state may possibly call for 180 hrs prior to you will be permitted to take the licensing check. Also, some educational institutions that offer real estate teaching assure you will move your state’s real estate license check, and if a pupil fails, they in fact shell out for that particular person to retake it just after finishing much more research.

Note that a product sales placement in real estate is just not immediately guaranteed after you will be licensed with your state, and it is a very good strategy to consult with brokers to ensure that you might be employed following you may have taken the state test.

Other licenses you may be enthusiastic about

There are various other fields that necessitate licensing that could be of interested to you to pursue. Yet another preferred occupation to acquire a license for is cosmetology. The thought of attending cosmetology school may perhaps attraction to you since you are honest about wanting to perform in the beauty marketplace. Immediately after attending a cosmetology school or beauty school, a pupil turns into eligible to take the state board licensing exam and receive a cosmetology license. Each and every state has diverse requirements for receiving a cosmetology license in their state. As an example, to obtain your cosmetology license from Beauty Schools in North Carolina, you’ll have to completed the 1,500 hrs of education required by the North Carolina State Board of Cosmetology, achieve some hands-on encounter inside a salon, and move sure written tests too. A different widespread licensing question, is cosmetology license renewal. For all those functioning inside the area, cosmetology license renewal can be required periodically.

Do You Really Need to Get Your Free Credit Score Annually?

Why everybody ought to get their free credit score yearly:

1 To safeguard your identification from burglars.

2. Save serious money in interest payments with reduced interest rates on your mortgage

3. You can confirm your information is right before attempting to make a purchase on credit.

4. If you need to buy a car it can influence interest rates.

5. To make sure potential business employers are getting your accurate information.

Federal law states all residents of the US qualify to get one free credit score every year.

You’ll find specific pieces of info you’ll have to have to access your free credit score and these include:

Your full name, your address and your e-mail address.

What you do have to know is that a lot of web sites will inform you you can get a free credit score however it comes with a trial membership agreement that costs. This isn’t the same as this 1 that the government ensures you annually.

Usually the membership is for 15 – forty-five days and if you don’t remember to cancel before the trial time period ends then your credit card is going to be instantly charged each month until you cancel.

Regardless of the income level or spending budget there’s now no excuse to not knowing your credit history. It’s an invaluable report that enables you to manage and track not just your credit history however your finances also.

The entire process is done on-line and is quick and pain-free.

Most websites walk you through a extremely easy step-by-step process.

Carefully look at your report to make sure it’s completely accurate.

If you discover any errors be sure you have it adjusted as soon as possible.

Consider the hazards of not knowing:

Your livelihood… You could lose significant dollars to indentity thieves… Your excellent name… The opportunity to buy goods on credit.

A credit score is the “life story” of how you manage your money.

Your credit score can easily affect everything from your chance at a great job to getting the deposit on utilities waived so you need to make certain it is correct.

And if you have credit that isn’t so good you’ll fully understand where to start fixing and strengthening it for the future by getting your free credit score now.

Commercial Mortgage Lenders – Selecting the Right Fit

There are several sources of capital from commercial mortgage lenders. These are commercial private money lenders, conduit lenders, SBA lenders, and portfolio/bank lenders.  The commercial mortgage market is comprised of these categories, each with its own distinctions . In commercial private money, individuals or groups lend their personal funds secured by real estate. Terms are probably going to be shorter, but the program is preferred by investors with a short time frame or those who have had difficulty getting their loan with a bank. Commercial Mortgage Backed Securities type loans basically are the Wall Street side of business, so the commercial loans are combined in batches, often over $100 million, and securitized into bonds. The bonds are then sold to a number of companies: insurance companies, pension funds, and the like . For the borrower, the primary advantage of this loan is usually the long term fixed rates and lengthier amortization period allowed . Lenders and banks set up with SBA can often offer 90% financing and a longer term fixed rate, but the SBA does not lend its own funds ; rather it guarantees the bank will get a certain percentage of their money back in the event of borrower default.  The downside is that SBA loans are available only for businesses that occupy their building, and not for investors. Portfolio Banks and lenders lend their own funds derived from deposits. This is traditional banking business, with some underwriting flexibility, but most often very conservative. With some research you should be able to decide which of the commercial mortgage lenders will provide the financing you require and the options available to make your deal a reality. Invest the time to learn about the choices, and be prepared with a strong business plan and necessary financial documentation when you meet with the commercial mortgage lenders. Have your details and paperwork in order, and do your research to determine an ideal loan with the lender that can be your partner in success.