Sunday 22 March 2009

Prairie House Plans

Living in a welcoming home in a lovely setting is the American dream. Maybe you have country farm house plans of your own after seeing television shows featuring old-time family life. The rich history of prairie style homes makes them a modern delight.

Updated prairie homes were originally built in the early 1900s by world famous architect Frank Lloyd Wright. He designed prairie houses to blend into the flatter prairie landscape. The houses got their name after 1901 when Wright's plan entitled "A Home in a Prairie Town" in Ladies Home Journal.

The original prairie houses were made of plaster with wood trim. Some prairie style houses were sided with horizontal batten and board. Now prairie style homes use concrete block. They can be square, T-shaped, Y-shaped, L-shaped or shaped like a pinwheel.

Prairie house plans typically include certain features. A prairie style home is recognized by its low-pitched roof, horizontal lines, overhanging eaves, central chimney, clerestory windows and an open floor plan. Wright designed prairie homes because he felt the rooms in Victorian houses were confining and boxed-in. Leaded glass panels often divide the rooms for a more open, spacious feeling.

Many consider the Frederic C. Robie House the finest example of the Frank Lloyd Wright prairie style. The Frederic C. Robie House was built in Chicago in 1909. The Frank W. Thomas House in Oak Park, Illinois is considered to be Wright's first prairie house and was also one of he first times he used stucco.

Prairie style houses actually used Japanese architecture. Flowing interior areas and long, banded windows create geometric shapes and patterns. The low-lying design is meant to integrate right into the surrounding landscapes. Wright believed homes should exist in harmony with nature. Prairie house floor plans are designed so they won't intrude on the landscapes around them.

Prairie houses were the first American architecture style that was seriously considered in Europe. This attractive house design remains popular throughout the United States. Unbelievably, Wright never even attended architecture school. Wright's down-to-earth beginnings were working on his uncle's farm during his childhood.

Wright enjoyed a 70-year career and ultimately designed 1,141 buildings of all kinds. Of all these designs, 532 were completed and 409 are standing today. Wright realized how noticeable his work was and stated, "The physician can bury his mistakes, but the architect can only advise his clients to plant vines."

Other architects designed variations of the prairie style house. The American foursquare style is also known as a Prairie Box. In 1936, Wright designed a simplified version of prairie style houses called Usonian. A modern prairie style house is a luxurious oasis tucked away in lush landscapes.

By Alice Lane

To find the prairie house plans of your dreams, visit House Plans and More (HDA). Since 1983, HDA has offered custom prairie house floor plans along with country farm house plans and many others types to bring beautiful homes to life for their customers

Article Source: http://EzineArticles.com/?expert=Alice_Lane

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Log Homes and Cabins - How Much Does a Log Home Cost to Build?

The above question is asked by most people before any discussion ensues about log homes in general. The above question cannot be answered unless many questions are asked of the prospective home buyer. As an example, the above question is similar to one asked, How much does a car cost?

A basic consideration of home cost is what part of the United States are you planning to build.

There can be a great disparity in building costs between these various regions of the country. Costs may be higher in California than in Arkansas due to the fact that living costs may be higher in California than in Arkansas.

In some states, there will be greater requirements of the builder and more approvals from various state and local agencies before a permit can be granted to build the home.

Some states do not have building codes or stiff building code requirements or in terms of engineering and contractor licensing and thus costs will be lower.

Building materials can also be higher in some states and in some areas of individual states than in another location. Thus, where you plan to build is a major consideration when the cost of a log home is analyzed.

Other considerations are:

The type of log home you intend to build. Will it be a precut package, a custom hand-crafted log home or random length logs from a local sawmill. The price of these various components can vary greatly and thus it is a major variable in the cost of building a log home.

Do you intend to ship logs in from another part of the country so that you can get the home and the home plan that you desire. Shipping can result in extra costs, but should not be prohibitive when one considers the total cost of the home.

Do you plan to have a full basement, maybe completely finished, or are you going to build on a slab or crawl space. There can be a great difference in these various forms of construction.

People must remember that the logs are just a small portion of the costs that will be entailed when building a log home. The type of roofing that is to be used such as exposed beam, conventional 2x rafters, or a truss roof can affect the cost of the home. Do you plan to use a specialty metal roof or use regular asphalt shingles?

The insides of the log home can run up the cost of the finished home. For instance, a stone fire-place, with hardwood floors, custom cabinets, top of the line bathroom and kitchen fixtures, specialty lighting and electrical components, and interior wall finishing. Most people have the misguided belief that once the house is shelled in, they are near completion. This is not true! There is a lot of labor and materials that will go into the interior of the home before it is finished. It is at this stage that many people opt for the better cabinets, lighting fixtures, carpet, etc. and destroy their budget. One a budget is determined, stick to it or you will get into a lot of trouble with the funds you have allocated to the project.

To get an idea if you can afford a log home, you need to check building costs in the area in which you plan to build. If nice, custom homes are being built in your area for $125 per sq. ft. then you can use this as a guide. However, if this seems feasible, then start shopping for a log package and a builder. A local builder can give you some idea what building costs are running in the area. In the end, you will have to bring a completed blueprint to a builder and tell him exactly what you want for flooring, cabinets, roofing, etc. He will also have to look at your lot to see if it will require more or less work than normal to put in a foundation, septic system, driveway, etc. As a last reminder, if the building costs are in the $125 per square foot range, that does not mean that you can the put in a deluxe bathroom, teak floors, imported crystal lighting fixtures, etc. Keep your feet on the ground when designing your home unless your do not have financial constraints.

One might hear that a completed log home costs will run 2 or 3 times the price of the log package. This is not an accurate way to judge the cost of your finished log home. For instance, one package may sell for $30,000 and another of $60,000, but the less expensive package may well have fewer materials furnished. Thus you have a range of $90,000 to 180,000 for a completed home which are both the same size. Components that go into a log home (or any home for that matter) can vary greatly in price from the low end to the high end. Which end of the building spectrum that you plan to build will make a big difference in the final cost of the home.

To use a multiplier against the cost of the log package is like getting the price of an automobile by using a factor against the weight of the vehicle. The final, only reliable way to get a finished cost of your log home is have a builder(s) go over your prints after you have them exactly what you want in the house as to materials and components.

Finally always have a buffer in your budget of 5 to 10% to cover price increases or unforeseen expenses. If you are on a really tight budget, don't just throw caution to the wind and say, lets build it as it will work out. It might, but if you are wrong you may or the bank may end up with a not quite completed home.

I have worked with people who what their dream home which is going to be a log home with the best of everything that can be had. They cannot get a loan to cover such a project so they eventually went to a factory built convention home because it was less expensive. If they had gone to a more realistic floor plan with fewer bells and whistles, then they could have had a log home that would have fit their budget.

Be realistic when setting goals for your hew log home. Don't design something that is completely out of your financial range. The belief that log homes are a very expensive way to build is just not true. What happens is that some people put in too many costly features that runs up the price of the home.

By Clyde Cremer and Jeff Cremer

Clyde Cremer holds a Master degree in Forestry from the Yale University School of Forestry and Environmental Studies in New Haven, CT

He has over 35 years of experience in the forestry industry is currently the president of American Log Homes Inc. in Pueblo, Colorado

For answers to all things related to wood and trees and log homes contact Clyde at http://www.WesternLogHomeSupply.com or give him a call at 719-547-2135

Article Source: http://EzineArticles.com/?expert=Clyde_Cremer

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The Benefits of Buying a House

Deciding between renting or buying a residence can be a difficult decision for one to make. There are benefits for both options, depending on what stage of your life you are currently in. In general, the benefits of purchasing a home -- economic, mental, and emotional -- greatly outweigh those of renting. Renting provides residents with the flexibility to move whenever necessary and can also provide the tenants with lower monthly payments than buying. Despite this, the benefits of buying a house tend to greatly outweigh those of renting.

Economic Benefits

The first thing to consider about purchasing a house is the potential to reap many economic benefits with this investment. A homeowner will profit from several tax incentives, such as property tax and mortgage interest deductions. First-time home purchasers will see that their real estate property taxes are fully deductable, and those with a mortgage balance that is lower than the home's worth will benefit from a fully deductable mortgage interest.

For homeowners who have resided in their houses for at least two out of the past five years, there is a capital gain exclusion law that allows them to exclude up to $500,000 of earnings from the their capital gains. This also equates to lower taxes for homeowners.

Real estate also has a trend to appreciate in value over the years. Unlike a car, whose value decreases with the passing of time, the worth of your real estate should go up in a constant manner (despite certain dips in the real estate market).

Finally, each time you make a payment on your home, you reduce your mortgage by a certain amount. This means that with every payment, you increase your equity. Now that you have home equity, you can also take out a home equity loan to pay for other necessities, such as education or medical bills.

Emotional/Mental Benefits

When you purchase a home, you gain the ability to proudly announce that you have a place of your own. You can do anything you want with your house -- design it as you feel fit, decorate it as you please, and landscape the outside however you want. You also have collateral to do things such as take out a home equity loan, meaning that you have more of a sense of financial security. This helps build confidence in your financial standing and ability to support your family, if you have one.

By Joseph Devine

Contact Us

If you would like to learn more about the benefits of purchasing a home, please take the time to visit http://carvajalgroup.com/

Joseph Devine

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Saturday 21 March 2009

Choosing a New Home Or Existing Home

New homebuyers are often faced with the choice of purchasing a new home or an existing home. There are many factors that potential homebuyer should consider before making a decision. The following list compares owning new homes to owning existing homes:

Design and Layout: New homes tend to have extras such as larger rooms, more bathrooms, and bigger closets. There are usually additional options such as paint color, type of cabinets, flooring, custom wiring for TV's, computers, phones, and more. Modern features like walk in closets and extra bathrooms are available when building a new home. In existing homes, you get the previous owners design and layout. Renovations and upgrades tend to be quite expensive. For those who enjoy heritage homes such as Victorian homes with their hardwood floors and high ceilings will prefer existing homes.

Maintenance: Although existing homes can be less expensive to purchase, they usually require more maintenance which will increase costs. New homes usually contain durable materials such as aluminum siding and pressure treated wood decks which require little or no maintenance for a number of years. New homes are often constructed with materials that require little or no maintenance. Purchase price for an existing home is usually more negotiable.

Expenses: New homes usually have very little or no costs associate with plumbing, roofing, wiring, and heating systems. Existing homes may require repairs and upgrades.

Warranties: Many homebuilders will provide warranties that can range from 8 - 10 years. These warranties will cover problems associated with construction problems. As well, new appliances such stoves and refrigerators will be under manufacturer's warranty. Existing homes do not have warranties.

Energy: New homes have better windows, air filtration systems, improved insulation, and more efficient heating and cooling systems. Existing homes are less energy efficient. They usually have poorer air circulation and use much more energy.

Amenities: New home subdivisions are designed to offer many community extras such as nearby schools, parks, playgrounds, and swimming pools. Existing homes do not have that luxury.

Equity: Buyers gain equity while the house is being built. This is not the case for existing homes.

Protection: Depending on the area, new homes meet weather and geological standards for such events as hurricanes, tornados, earthquakes, flash floods, drought conditions, and more. Existing homes usually do not meet current weather and geological standards.

Moving-In: Moving in is easier for new homebuyers. They are usually able to move in when the sale has closed and the house is completely built. Homebuilders will remove any debris. Buyers of existing homes often have to deal with cleaning, waste removal, and repairs.

Health: New homes tend to have better air quality and are clean when you move in Air filtration systems are modern.. Some existing homes may need to be cleaned. Items that often need to be cleaned include heating systems, carpets, walls, floors, and much more.

Safety: New homes are usually safer because they are built to accommodate modern smoke and fire alarm systems as well as high tech burglar alarm systems. For an existing home, the owner will have to upgrade to accommodate these features.

Purchasing a home can be one of the most exciting life investments. There are advantages and disadvantages to buying either a new or existing home. The best way to decide which home is best for you and your family is to make a list of what you are looking for in a home. Because it is such a major life decision, you want to make sure you are well informed so that you and your family can relax and enjoy your very own home.

By Amy Nutt

New Homes Builder Company based in Southwestern Ontario. Visit in one of our offices at Guelph Homes

Article Source: http://EzineArticles.com/?expert=Amy_Nutt

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Rural Development Mortgage Guidelines Allow For 100 Percent Financing Loans

Few people are aware that Rural Development Mortgages provide government guaranteed financing for 100% loan to value for home mortgages. With a Rural Development Mortgage, there is no recapture because it is not a subsidy loan.

There are many benefits to Rural Development Mortgages that include 100% LTV based on the appraised value of your home, zero down payment, and low 30 year fixed mortgage rates. USDA's Rural Development guidelines provide flexible credit guarantees and require no mortgage insurance.

It is recommended that real estate agents and for sale by owners should use this 100% rural development mortgage in their advertising. If more people were aware of this government program, real estate sales would increase substantially. Not every home or buyer will quality for a rural development mortgage loan, but if they do they are getting one of the top mortgages with low interest rates on the market today.

Rural Housing Service (RHS) was created in 1994 as a result of the Department of Agriculture Reorganization Act to meet housing and community development needs.

More rural families and individuals are now able to become homeowners with the help of the Rural Housing Service Programs. There are various programs available to aid low-to-moderate income rural results to purchase, construct or repair a home. Rural development mortgages allow qualified homebuyers the opportunity to get loans with minimal closing costs and no down payment.

Section 502 Rural Housing Guaranteed Loan Program states that a loan guarantee through RHS means that, should the borrower default on the loan, RHS will pay the private financier for the loan. The rural development loan program's purpose is to enable loan and moderate income rural residents to acquire modestly priced housing for the own use as a primary residence. There is also a program available to purchase and repair an existing or newly constructed home.

The Section 503 Single Family Housing Direct Loan Program states that individuals or families receive direct financial assistance from the Rural Housing Service in the form of an affordable interest rate home loan. Loans are typically made for 30-33 years and eligibility is based on the family's income.

By Diana L Hazlett

Rural Development Mortgages is a Michigan based mortgage brokerage company established in 2003. Development Manager, Jaime Hunt shares over eight years experience in the processing, approval and sales division of residential and commercial loans. One key aspect of her position is monitoring the ever-changing market and sourcing out all loan programs available to better service her clients' needs. For more information on rural development mortgages, visit Jaime's website http://www.ruraldevelopmentmortgages.com

Article Source: http://EzineArticles.com/?expert=Diana_L_Hazlett

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Beware of Loan Modification Scams

With a large number of people seeking help to avoid foreclosure, the climate is right for loan modification scams. Anytime that people are in financial distress and looking for a resolution, it seems like there are always a few unscrupulous individuals out there to take advantage of the situation. The loan modification industry is no different.

If you need to have your mortgage modified, the best place to start is with your current lender. Almost all the major lenders have programs that will provide relief if you are experiencing a hardship. The lender would rather make modifications that will allow you to stay in your home than to have to go through the process of foreclosing on your home, especially with the number of people facing foreclosure at the current time.

It is important that you take the necessary time to properly research any company that you are considering getting help from to avoid foreclosure. Many of the companies that specialize in this service are new, because the need did not become abundant until recently. And there are a lot of scammers in this business. I hear it on the news every night.

Check with the Better Business Bureau. The state attorney general's office is also another great resource. I actually find the internet better than either of these two sources. Forums offer excellent information when it comes to services. The community will tell you about both their good and their bad dealings with a company.

I also like the Ripoff Report. It can be found on the internet. People will document their unfavorable experiences with an organization. Other people may add entries about their experiences with the same company. I have also seen the service organization add rebuttals to the correspondence. At least you will get a general idea about the company you are about to give your money to.

If you are looking for a loan modification you should start with your own lender. If they can not help you, they can give guidance as to what your options are in this case.

By Marj Schneider

Loan modification scams can cost you a lot of and also your home. Find out how you can get more information on government loan modification and a loan modification agreement

Article Source: http://EzineArticles.com/?expert=Marj_Schneider

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FHA Streamline Refinance is Like a Stated Income Loan

Homeowners with a current FHA mortgage have something that others don't, that is the opportunity to refinance with no income verification, using an FHA streamline refinance.

A stated income loan seemed to be a thing of the past but, FHA will streamline a mortgage refinance to reduce the documentation and underwriting normally required. That means no tax returns, W-2 forms, or pay stubs, and no bank statements to verify assets. Also, FHA does not require a credit report, but some lenders may require one for pricing the rate. A verification of mortgage is required to determine if the loan is delinquent, which is not allowed.

Another potential benefit of the FHA streamline refinance program is that a home appraisal may not be needed. So, in addition to being like a stated income loan, without verifying income or assets, this loan can also eliminate value as an obstacle, especially in a declining housing market.

As with all government programs, there are certain rules and limitations that determine if a refinance will fit into the FHA streamline guidelines, including the following:

1. The current mortgage to be refinanced must already be FHA loan
2. The subject property must be the borrower's primary residence
3. The current mortgage to be refinanced should not be delinquent
4. The streamline refinance only allows a maximum of $500 cash out
5. The refinance must result in reducing principal and interest payments

When getting an FHA streamline refinance without using a new appraisal, the maximum loan amount will be determined by using the lesser of the following two calculations:

1. The original principal balance of the existing FHA mortgage, plus the new up front mortgage insurance premium, which is currently 1.5% on a streamline refinance.

2. The existing FHA mortgage, plus closing costs, prepaid taxes, insurance, interest, and the new up front mortgage insurance premium. Subtract refund of old premium.

When using a new appraisal for an FHA streamline refinance, the maximum loan amount will be determined by the lesser of the following two calculations:

1. The appraised value multiplied by the maximum loan to value percentage, which usually ranges from 97% to 97.75% depending on the state and the loan amount.

2. The existing FHA mortgage, plus the closing costs, prepaid property taxes, hazard insurance, up to 30 days interest, and subtract any refund of insurance premium.

If there is a line of credit or second mortgage on the home, the lien holder must agree to re-subordinate their loan regardless of the combined loan to value. The total amounts of the first and second mortgages can exceed the normal loan to value and the maximum mortgage limit.

By R A Smith

Article written by Rick Smith at http://www.crhome.com, additional FHA mortgage information at http://www.ditech.com

Article Source: http://EzineArticles.com/?expert=R_A_Smith

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Five Ways to Cut Costs When Refinancing Your Mortgage

Are you planning to get some makeover done on your mortgage? If yes, all you need to do is get in touch with a good mortgage broker or a local loan officer and finalize a new deal for yourself. However, in order to save money over a short as well as a long term, it is essential to make the new deal even better. After all, in times of recession, every dollar saved can make a big difference. In order to get a profitable deal, you can follow the following cost-cutting strategies:

1) A significant portion of the mortgage payment is spent paying interest. Therefore, if you somehow manage to get a mortgage loan with a lower refinance rate and a short payback term, you can save a considerable amount of money over the long haul. For instance, a 15-year mortgage loan requires you to make large payments each month, but at the same time, it helps you save a large sum for your future as well. To get the best deal, it is therefore wise to compare the refinance rates from at least 4-5 refinance lenders and then make an informed decision. However, never opt for such a loan, if you think you cannot afford to pay the big monthly installments.

2) Lenders usually do not consider borrowers with a bad credit report. So, if you have open credit card accounts that are no longer used, it is in your own favor to close them all. Also, make sure to get it stated in your new credit report that all your accounts were closed on your request and not because of your bad credit history.

3) In addition, you can also consider paying "points", a fee that lowers the interest rate of your mortgage loan to a great extent. This cost-cutting strategy can help you save thousands of dollars in a long run. However, do not opt for this kind of a strategy if you are planning to move after a few years.

4) In order to save more money, you should also abstain from Private Mortgage Insurance, popularly known as PMI. Most lenders usually insist on carrying this insurance if you borrow over 80% of your home's value. These kinds of insurance policies require you to pay hundreds of dollars each year. Therefore, if you really want to save money over a long period, it is wise to put more money down on a home initially and avoid a PMI.

5) Last but not the least, before finalizing any loan, it is essential to refer to the list of standard fees provided by the Department of Housing and Urban Development. This list will help you analyze the fees your lender is asking for on the loan.

Thus, using a few simple tactics, you can save a lot of money for yourself over a long term. If you follow the above strategies sincerely, let me assure you that you will be able to save enough to free yourself from all debts and also have your own house in future.

By Eshwarya Patel

Get the Best Loan and Mortgage Info on Online Loan Officers - An extensive listing of loan officers and financial institutions in over 500 cities of the US

Article Source: http://EzineArticles.com/?expert=Eshwarya_Patel

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Loans Modification - The Secret Loan Modification Companies Do Not Want You to Know

Banks are in quite the predicament these days. So many have failed and so many are hurting. To keep from having a huge stockpile of REOs, banks are bending over backwards to help out struggling homeowners, but, you have to know what you are doing to get a loan modification done. There are dozens of loan modification companies out there and they all have something in common.

They did not exist three years ago and none of them knew how to modify loans UNTIL they were taught how to do it with a step by step program (by the way, those step by step programs are available to ANYONE).

If any of the following scenarios sound like you, you may be able to easily change the terms of your home loan:

- Late on your mortgage

- On the doorstep of foreclosure

- In an ARM

- If you can no longer afford your mortgage payment

- If your home value has dropped significantly

- If you have lost your job and now making less money

- If you are currently negotiating with your lender about a modification

The secret these companies DO NOT want YOU to know

That is easy. They do not want you to know how easy it is to change the terms of your loan without their. The only reason they are in business now, is because they learned how to do it themselves OR someone taught them how. There are a couple of good, comprehensive guides that show you step by step exactly what to do.

By S. L. Welch

If any of these sound like you, you may be able to Modify Your Loan on your own and save yourself thousands. Visit our website at HomeLoanHelp.vfgfair.com

Article Source: http://EzineArticles.com/?expert=S._L._Welch

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Home Prices to Fall and Fall and Fall

I just read an article forecasting more trouble for real estate in 2009. The author seemed to be incredulous about the possibility, saying that some markets were even approaching Pre-Bubble price levels as though that was an organic impossibility.

If you check you will see that the last 2 real estate booms in the 70's and 80's resulted in prices dropping back to pre-boom levels before they took off again. That is what statisticians refer to as a "regression to the mean" falling back to the historic trend line.

There are even more significant troubles for real estate in 2009 and beyond than are perceived by many interested in real estate.

These troubles will continue to drive prices down even further. Although some markets are in fact approaching pre-boom prices, the pendulum may not stop at mid point and may actually swing all the way past pre-boom prices. Have you ever known a pendulum to stop mid way through its swing?

Here are some additional factors to consider:

The credit crisis is forcing banks to husband what little capital they have which is why they will restrict lending to the Very qualified.

How many prospective home buyers have 750+ FICO or Credit scores And 30% in cash for down payment, closing costs and bank mandated cash reserves? Especially since the US savings rate has been hovering around zero for the past decade.

Fewer buyers equal lower demand which means lower prices.

Also, how many more homes will be deserted by home owners who are Underwater, owing more than they owe? It is estimated that nearly 16% of owners with mortgages or about 8 Million home owners are in this situation. These desertions will add greatly to the bloated inventory of homes weighing down the market.

Finally, the only bright spot in housing will probably be extinguished in 2009 as interest rates will skyrocket once China is forced to stop buying our debt because of our dwindling purchases from them.

One report I read said that rental of a typical space on a freighter delivering goods to the US fell from $236,000 for the trans Pacific crossing to $5,000!

Once China stops buying our Treasury Bonds, we will have to lower prices on them to attract other buyers, which will jack up their yields or interest rates as they move inversely to prices.

Our mortgage rates will then soar because they are pegged to the 10 year Treasury Bond yield.

So, despite the optimistic predictions of many rose tinted, shade wearing real estate "professionals" the likelihood of a rebound in housing is probably further away in 2009 than at any time since the real estate bubble burst.

By Bill Young

Copyright 2008 Bill Young. Bill is offering a free, one year course for people who want to know how to quit living pay check to pay check and how to become financially free developing multiple streams of income from real estate and home based business assets. Register here: http://HowtoSolveYourMoneyProblems.Com

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New Real Estate Agents Guide to Getting Started Profitably

Now that you have earned your real estate license, you may be wondering just how you can go about making sure that you are a complete success. There is a fear that a real estate new agent may have and that is being able to compete with the competition out there. If you are new and just getting started, there are tips and hints to follow in order to make sure that you are going to come out on top. Success will not just happen on it's own. You have to push hard and keep yourself focused on your goal. Within enough time you will be able to see just how much your patience pays off.

The first thing you want to do is to find the right real estate company for you to hang your license up at. Even though most of your success will be dependent on your personal drive, it is important to make sure that you have a reputable real estate company backing you up. Look around your neighborhood and see which real estate company has their name all over the place. Spot the yard signs, the ads in the newspapers, and the houses listed on the Internet. Discover which local company gets more attention from those wanting to list their house for sale.

Besides wanting to make sure that you end up with a real estate company that gets a lot of business, you want to make sure that you will receive the training you need. The more of a success you end up to be, the more money the office makes as a whole. Companies who are on top of their game will realize this and will invest time and money into making sure that you get all of the training you need to make it to the top.

Now that you have established where you are going to work, it is important to make sure that you are creating a business plan for yourself. The real estate new agent must make sure that he or she is creating a goal for their first year. This means that you will want to set yourself up with goals that are realistic. Discover ways that you will be reaching out to prospects and dedicate a certain amount of your resources to marketing and professional development. By following such simple steps you can make sure that you are off on the right foot towards making your career a successful one.

By James Banister

Learn more about becoming a new real estate agent and how you can get started right away and be profitable

Article Source: http://EzineArticles.com/?expert=James_Banister

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Are World Property Prices Good For the UK?

With houses prices falling all over the world are world property prices good for the UK? This is becoming a real benefit for people who have the money and want to buy. A resent survey has revealed that house prices have fell all over the world as the recession starts to take a real grip.

Looking at rate house prices are falling in the UK it can be seen that it's not as serve as some other parts of the world. For example in Latvia's capital houses prices have fallen by 37 percent. This is a much higher decline than in the UK where house prices have fallen by 18 percent.

If you have the money to spend then this can be good news to you as you can get some real bargains and really the only way property prices can go is up. This will see a great return on your investment in the future.

Following the Bank of England making further cuts to interest rates some people are paying no interest at all on their mortgage another great reason to buy now. If you have a tracker mortgage you will have been enjoying a cut in your mortgage for the last 6 months.

The bad news is that not all banks are passing on the interest rates. So this may not be good news for everyone. This is somewhat understandable considering the mess financially banks are in. Though considering the taxpayer is helping these banks out it does seem somewhat unfair that some banks are not prepared to pass the savings on to their customers. This all makes the British public more skeptical about banks its just unfortunate that we depend on banks so much. Things really need to be done to ensure that the correct lessons are learned from this which will help avoid this situation in the future.

SO to recap if you are in the lucky position where you have some money then there has never been such a good time to buy and with interest rates so low this will make your investment far more attractive. However not everyone is going to be in this situation as many people are being made redundant and buying a home is more likely the last thing on their mind.

By Michael Hanna

Renting has become understandable more popular in resent months SO for houses to rent in Birmingham and would check out here they also have great houses to rent in Liverpool

Article Source: http://EzineArticles.com/?expert=Michael_Hanna

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Is Your House an Asset Or a Liability?

To most people, that's a stupid question. Of course your house is an asset: For many people, it will be the only investment they will ever make. However, if done incorrectly, it can become a liability, without you even realizing it.

If it is done the way the "old folks did it", it will be an investment. In other words, if you buy a house, and live in it all your life, it becomes an investment. It increases in value, while your financial input dwindles, until it eventually only requires taxes and maintenance to be paid. It is an ideal situation, since you eventually stop paying for a place to live in, before you have to retire.

Unfortunately, the real world looks a bit different. As your needs change, and you qualify for career advances, you move to a different house. Statistically, the average home owner changes houses once every seven years. This means that a large portion of your profit is swallowed every seven years, not only by the transaction costs, but by the costs of moving, spending money on the new home, new furniture, etc.

If you decided, for instance, to simply rent a home, which would cost you a bit less, and invest the difference, where would you be in thirty years from now? Instead, by the time retirement comes around, the average person is halfway into paying off a mortgage, still left with a mountain of debt. Every time you move, you cut into your own profits, yet most of it is never calculated completely and properly.

So is your house an asset, or is it a liability? Only you can answer that question. Most people would not answer truthfully, anyway. Hence the persistence of the opinion that your home is you biggest asset. And there is none so blind as one who does not want to see.

By Arthur Patrickson

For more information regarding real estate, visit us today for Property Discussions
You may also want to visit this site discussing Property Rentals

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Land Transfer Tax Rebate For First Time Home Buyers

Every time a piece of land exchanges hands in Ontario a land transfer tax is payable.

First time buyers may be able to collect a rebate on all of this amount or at least part of it, to a maximum of $2,000.00

You can claim the rebate at time of registration. You can ordinarily do this with your lawyers help. It may offset the land transfer tax payable completely, depending on your purchase price. If you don't claim at the time of registration, the rebate may be claimed directly from the Ministry of Revenue. Forget about interest!

To be eligible for a refund, you:

* have to be 18 years of age or older;
* the home must be your principle residence for at least 9 months after the date of transfer; and
* you cannot have previously owned a home, or have been part owner in a home, anywhere in the world.

Also:

* your husband/wife cannot have ever owned a home, or have been part owner in a home, anywhere in the world while being your spouse; and
* in the case of a newly constructed home, you must be entitled to a Tarion New Home Warranty.

How To Apply?

Qualifying taxpayers may claim an instant rebate at time of registration by either of 2 ways:

* If registering electronically, by completing the required statements under the "explanation" tab of the electronic affidavit.
* If registering by paper, by filing an Ontario Land Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes.

How Long Can You Take To Apply After You've Purchased?

* You must make the application no later than 18 months after the date of the transfer.

If application was not made at registration and the tax was paid, qualified purchasers may apply for a refund by completing an Ontario Land

Transfer Tax Refund Affidavit For First-Time Purchasers of Eligible Homes.

By Tony Brayley

For full details on the refund program, please see Ontario Tax Bulletin LTT 1-2008 Land Transfer Tax Refunds for First-Time Homebuyers or visit my website

Tony has been selling real estate in Brampton, Ontario & surrounding areas for almost 24 years. Has seen all the cycles and developed a system that works during boom times and recessionary times alike. Tony co-authored the book "We're About Families" with another book currently in progress. Visit Tony at his website for any questions or information http://www.century21.ca/tony.brayley

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The "Knock On" Effect of the Current Property Market Situation

With the current price crash within the property market there are a couple of things that has seen a rise of a result of this, the two main ones that I will be discussing in this article are the rise in renting and house auctions.

Renting

People who cannot get a mortgage or have defaulted on their mortgage have been forced to rent until there situation improves. This has been good news for property management firms who have seen a big rise on people looking for rented accommodation. This has also helped private landlords to keep their property occupied. This can usually be a problem for private landlords as they need to have their property occupied to pay of their investment. This has made buying property to rent a more attractive option for investors as this can now be less of a risk. This however does not help in them receiving a mortgage for their property as banks aren’t lending with confidence at the moment.

House Auctions

More and more people are defaulting on their mortgage perhaps due to unemployment issues or similar financial constraints. Although the interest rate is very low at the moment this still does not seem to be helping everyone. It is said that in the last three months of 2008 has seen a rise of 16.3 percent in property auctions. Auctions hold a few advantages for people wanting to buy a home. One being the saving made on the actual cost of the home. Further savings can be made on administration costs.

More costs can be saved because you don’t have to deal with an estate agent which can result in saving in securing the property. The rise of people attending auction has also seen a rise. However this could work against you as more people are bidding on the home, this could make acquiring said house more expensive if there are a lot of competitive bids.

With every down turn in an industry there are winners and losers. In many cases the customer can make great savings, however with people’s budgets being so tight they just don’t have the money to take advantage of the situation. If you do have some saving and you can get a mortgage then now is most defiantly the time to buy.

By Michael Hanna

If you want to rent though I would check Grant Management's website they have lots of flats to rent in Newcastle and also lots of flats to rent in Stirling

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Wednesday 11 February 2009

The Structure of a Collateralized Debt Obligation

Collateralized debt obligations (CDOs) are asset-backed securities formed from bundles of residential mortgages. These structures provided the capital delivery mechanism that helped inflate the Great Housing Bubble. CDOs are merely a tool. If used appropriately, they can speed the delivery of capital and create a more efficient capital market. If used inappropriately, they can be a financial weapons of mass destruction, and they can threaten our entire capitalist system.

Collateralized debt obligations, like other asset-backed securities, are divided in segments known as tranches (rhymes with launches). These tranches are typically titled: senior, mezzanine and equity based on their risk exposure. There is no single structure or formula for a CDO, and many contain numerous subdivisions resulting in more segments than the three described.

Similar to the lien order of mortgage obligations, these tranches are paid in order of priority. The senior tranche is paid first, the mezzanine tranche is paid next, and finally the equity tranche is paid any remainder. Since these obligations are paid in order, the senior tranche has the least risk exposure and lowest returns, and the equity tranche has the highest risk and greatest potential for return. To further lessen risk (and make the transaction even more complicated) insurance policies are often issued to insure the buyer of a senior tranche against loss. These policies known as credit default swaps were a very lucrative business during the Great Housing Bubble. It was such good business that many insurers took excessive risks and lost a great deal of money when house prices declined.

The real magic of structured finance is its ability to take assets of low investment quality and turn it into something viable. George Soros aptly titled his book, "The Alchemy of Finance." Like the alchemists of medieval Europe, modern investment bankers try to turn lead into gold. The syndicators who create and manage collateralized debt obligations assess the risk of loss on the underlying asset and break it down into three categories corresponding to the three tranches.

The equity tranche in a CDO assumes the expected risk of loss. For example, if subprime loans expect an 8% loss from defaults, then the equity tranche will be 8% of the CDO. The syndicator typically keeps this equity tranche as part of their incentive fee, but practically speaking, the discount would be so steep it is hardly worth selling. If defaults losses are less than 8%, they see tremendous profits, and if it is over 8%, they see nothing.

The Mezzanine tranche assumes the risk beyond the expected risk. If the average default loss is around 8%, and the highest default loss ever recorded is 24%, the mezzanine tranche exists to take on this risk. There is a very good chance they will see most or all of their money because the average default loss is being absorbed by the equity tranche.

The senior tranche is supposed to have no risk from default loss. The line between mezzanine and senior is at or beyond the highest default loss rate ever recorded. This is not to say there is no risk, but it would take an unprecedented event to see any losses in this tranche: something like the collapse of the Great Housing Bubble.

By Lawrence D Roberts

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?

Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/

Read the author's daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

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Why Different Mortgage Loan Types Can Make Or Break You When Refinancing

What mortgage loan types are there for people who want to realize the American dream of home ownership? There are several to choose from, and there are advantages to each. The major mortgage loan types are conventional, FHA, and VA. Conventional mortgage loans are the most simple to understand and the most basic. When you get conventional mortgage financing for your home, you simply borrow a certain percentage of the price of the home (the sale price and fees minus any down payment) and agree to pay it back via monthly payments for a certain number of years.

FHA and VA loans are loans that are backed by the Federal Housing Authority and the Veterans Administration, respectively. These two groups both have the goal of helping more Americans realize the dream of home ownership. They work in cooperation with certain lenders and provide those lenders with mortgage insurance in case you have to default on your loan. Generally, these types of loans have a lower down payment, may have lower interest rates, and may be easier to qualify for. Also, with FHA and A mortgage loan types, the FHA and VA themselves set a lot of the parameters of the loan, such as how much of a down payment is needed, how much interest can be charged, inspections of the property in question, and so on. That is why not all lenders prefer to deal with FHA or VA mortgage loan types. The lenders have more control with conventional mortgage loan types.

Another major difference in types of mortgages is whether the loan is a fixed-rate or variable-rate loan. A fixed-rate loan has one interest rate that is set and remains unchanged throughout the life of the loan. Some people prefer to have a fixed-rate loan, especially during times of a "buyer's market" such as we have now. Rates as well as housing prices tend to be lower right now, so it makes sense to get the lower rate and keep it forever, as interest rates are more likely to climb in the future, rather than decrease in the future. Also, knowing how much your payment is going to be helps you budget your finances more easily.

However, it can sometimes be more difficult to qualify for a fixed-rate loan, so some folks go with the adjustable mortgage loan type. Adjustable mortgages begin with one interest rate, but it is not necessarily going to remain the same throughout the life of the loan. Periodically, the interest rate can be adjusted to suit market conditions. Depending on what is happening in the economy and on what the prime interest rate is, if you have an adjustable mortgage loan type, your interest rate (and payment) can go up or down.

There are also ways of financing that are known as unconventional mortgage loan types. There are a variety of such types of loans, and they are relative newcomers to the home lending industry. You can find interest-only mortgage loans, balloon mortgages, and even reverse mortgage loan types. When you are searching for financing to make your dream a reality, be sure to look into all mortgage loan types to see which is the best fit for you and your family's circumstances.

By Richard A Cox

Good Advice is Essential When you consider any Large Loan. For up-to-date, Free Advice, Visit http://allaboutforeclosures.blogspot.com/

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Free Course in Real Estate - Enhancing the Appearance

To inspect the building exterior, move back at least 50 to 100 feet. Place the building in perspective with the site and with other properties in the neighborhood. Does it fit in? Does the architectural style give the property an appealing uniqueness, or is it a simple rectangular box design with no windows on either side? Have a half dozen other apartment buildings in the neighborhood been built with the same bland design? What improvements can you make to the building that will enhance its appearance and favorably set it off from nearby properties as well as other buildings? The roof. Is it discolored? Are leaves piling up? Are plants growing on the roof or out of the rusty gutters? A roof can influence the exterior aesthetics of a building because it frequently occupies 30 percent or more of what you see when you face a building. Clean it up so that it shows as little wear as possible.

If your remedial efforts can't improve the appearance of the roof-and you're planning to quickly flip the property-consider replacing it. As the late real estate expert Bob Bruss pointed out, a new roof probably won't give you a dollar-for-dollar payback, but it will enhance the property's marketability. On occasion, such loss leader repairs can work synergistically to create an overall effect that will help your property rent or sell for a higher amount.

Can you imagine ways to enhance the building's appearance with shutters, flower boxes, dramatic front door(s) and entryways, new or additional windows, fresh paint, a contrasting color for trim, or accenting the design with architectural details? How well does (or could) the property's exterior distinguish it from other comparably priced rental properties? Do you rate its appeal as great, so-so, or awful? List other possibilities for profi table improvements. Think of features that set your property apart from its competitors. Look for features that wow your target market and passersby. To avoid too many loss leader repairs, hire a professional inspector to detect potential problems with any property you offer to buy. Generally, though, you won't order an inspection report until after you've signed a purchase contract that includes an inspection contingency clause.

By Raymond Pedersen

Special offer for last 9 Visitors

Step-by-Step, Affordable Training Videos on How to Build or maintain a Powerful commercial property Portfolio, covers land, apts, multifam, retail and more!

http://www.commercialprofitblueprint.com

By: Raymond Pedersen

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Get Bank REO Listings Fast

With the real estate market declining and the number of foreclosed homes climbing, experienced agents are looking for ways to get bank REO listings fast. The problem is that the typical Real Estate marketing tactics don't work when you're trying to pick up REO listings. Instead, you'll need to change your mindset and your marketing plan.

If you've been a producing real estate agent in your market, you've probably been doing all of the typical marketing activities associated with most agents. While marketing methods such as postcards, open houses and internet ads work well for generating standard resale listings, if you want to get bank REO listings fast, you'll need a entirely new strategy.

First, Identify Your Target Market's Needs:

If you're going to list REO properties, your target market will change and it will change drastically. You are no longer trying to influence a homeowner struggling with a change in their personal residence and all of the emotional and financial decisions that go along with that change. Instead, you are targeting a group of people that make their decisions for much different reasons: Asset Managers.

Completly understanding how asset managers think and make decisions can have get bank REO listings fast and turn you into a top REO agent quickly. To understand how asset managers think, you need to understand their biggest concerns:

  • Asset Managers Hate Babysitting Agents: When you market to banks and their employees, draw attention to your experience and how you can get the job done and get it done without having to be watched over.

  • Asset Managers Hate Being In The Dark: Make sure your marketing material highlights any and all communication measures you take to keep your clients informed. Tell them about weekly updates you give, bi weekly market stats, etc.

  • Asset Managers Love Numbers: Most of their day is spent staring at spreadsheets and financial data. Include plenty of data and numbers highlighting your accomplishments (days on market, list price versus sold price, etc).

Second, Identify Your Target Market's Location:

Listing resale homes is easy. You simply get a mailing list for the neighborhood you want to market to and then start mailing. Finding banks and asset managers can be much tougher. An asset manager in charge of a home in your neighborhood in Cleveland may work in Orlando. No matter how well known you are in your market, they've never heard of you and you've never heard of them. You need to change that.

First, you need to get both a mailing list and an email list. THIS IS CRITICAL. While your marketing campaign to banks should include handwritten, mailed pieces, the bulk of your marketing will be done by email. While tangible postcards and thank you notes are effective, a weekly email report on your market will go a long way to cementing you as the real estate agent of authority in your area. In addition, email costs virtually nothing and as long as your emails contain valuable information to the asset manager, you won't be considered spam.

Finding a good list of banks and asset managers is a little difficult. You can't just open the phonebook and find them. You need to find a solid provider that specializes in REO Bank lists. I've compiled a list of the top suppliers of these lists on my review site. Most of these lists are under a $100.

If you can get a strong bank list and are able to understand what asset managers need in a real estate agent, you'll be able to get bank REO listings fast and become a top REO agent in your area.

By Brian Anthony

My team lists over 100 REO properties each year and we know how you can get bank REO listings fast. Follow the tips, tricks, blog and REO/BPO system reviews here.

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Home Prices to Fall and Fall and Fall

I just read an article forecasting more trouble for real estate in 2009. The author seemed to be incredulous about the possibility, saying that some markets were even approaching Pre-Bubble price levels as though that was an organic impossibility.

If you check you will see that the last 2 real estate booms in the 70's and 80's resulted in prices dropping back to pre-boom levels before they took off again. That is what statisticians refer to as a "regression to the mean" falling back to the historic trend line.

There are even more significant troubles for real estate in 2009 and beyond than are perceived by many interested in real estate.

These troubles will continue to drive prices down even further. Although some markets are in fact approaching pre-boom prices, the pendulum may not stop at mid point and may actually swing all the way past pre-boom prices. Have you ever known a pendulum to stop mid way through its swing?

Here are some additional factors to consider:

The credit crisis is forcing banks to husband what little capital they have which is why they will restrict lending to the Very qualified.

How many prospective home buyers have 750+ FICO or Credit scores And 30% in cash for down payment, closing costs and bank mandated cash reserves? Especially since the US savings rate has been hovering around zero for the past decade.

Fewer buyers equal lower demand which means lower prices.

Also, how many more homes will be deserted by home owners who are Underwater, owing more than they owe? It is estimated that nearly 16% of owners with mortgages or about 8 Million home owners are in this situation. These desertions will add greatly to the bloated inventory of homes weighing down the market.

Finally, the only bright spot in housing will probably be extinguished in 2009 as interest rates will skyrocket once China is forced to stop buying our debt because of our dwindling purchases from them.

One report I read said that rental of a typical space on a freighter delivering goods to the US fell from $236,000 for the trans Pacific crossing to $5,000!

Once China stops buying our Treasury Bonds, we will have to lower prices on them to attract other buyers, which will jack up their yields or interest rates as they move inversely to prices.

Our mortgage rates will then soar because they are pegged to the 10 year Treasury Bond yield.

So, despite the optimistic predictions of many rose tinted, shade wearing real estate "professionals" the likelihood of a rebound in housing is probably further away in 2009 than at any time since the real estate bubble burst.

By Bill Young

Copyright 2008 Bill Young. Bill is offering a free, one year course for people who want to know how to quit living pay check to pay check and how to become financially free developing multiple streams of income from real estate and home based business assets. Register here: http://HowtoSolveYourMoneyProblems.Com

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How to Pass the LEED Exam

Are you a building professional who wants to ride the increasingly large sustainability wave? Well becoming a LEED Accredited Professional is a lot easier than you think! Passing the LEED exam will make your self look that much better, not only on paper, but also in practical terms.

Ever since the United States Green Building Council appeared, people have been becoming more and more serious about building green. The USGBC created a rating system to help set industry standard levels of green building. Green buildings are appearing everywhere. Many owners know the benefits of building green and require that the architects achieve certain LEED ratings. Some counties and cities are requiring that all buildings over a certain size threshold be LEED certified. Many public projects are also incorporating LEED into their buildings.

There is no question that if you want to survive in this industry, you are going to have to go green. With energy prices on the rise, fossil fuels becoming more and more scarce, and the earth's natural resources being slowly finished off, you better go green or go home. This world won't be able to sustain itself unless there is a huge push to go green.

The LEED Rating system might be a little overwhelming at first glance, but once you start digging into it, you realize it is not as difficult as you had imagined. I passed the LEED exam over a year ago, and I didn't really start studying until one week prior to the exam. When I started studying, I didn't think I would stand a chance. There were so many credits and just so much to learn about every single one that I didn't think it would be possible to retain enough information to pass. After spending a lot of time in a panicked state of overwhelm, I organized my studying approach, and was able to pass the test without breaking a sweat.

The first thing that you do when you start studying, is obviously begin by reading the LEED manual. I tried to start by the darn thing page by page. That really didn't work. After reading a few credits, I was so overloaded with information, I figured the test would be impossible. I decided to change my approach. I went ahead and tried to memorize all of the 50+ credits. The only thing I needed to memorize was what the goal of the credit was, and if not that, at least the name. The intent of the credits are pretty straight forward; they make logical sense and you can understand what the point of the credit is without having to think too much. In no time, I was able to list every single credit from memory. It helps to break them down into the six sections (sustainable sites, water efficiency, etc).

Once you lay the foundation down, it is time to dig into each credit. A lot of the time, there is more info than you need to know in the reference manual. Just try to get a good understanding of how each credit works. You will notice that each credit is explained in a similar way (intent, approach, references, calculations, etc). It really helped me to set up a spreadsheet summarizing everything about each credit. I chose a small font, printed mine out on a few sheets of paper and carried it everywhere I went.

When you get into the exam room, you are given a few sheets of paper and put in front of a computer. You get two hours from the time you click "ok" on the computer. Before I touched the computer, I went ahead and wrote down all the credits on my scratch paper. Even though I already memorized them, I referenced this sheet a whole lot during the exam.

Go through and choose the best answers to each question. Your gut instinct is usually right, so go with your first intuition. Make sure to skip any questions you are unsure of; there is a feature on the computer that allows you to go over any skipped or flagged questions. Use the entire two hours, and submit just before the deadline. You will find out if you passed or not about 20 seconds after you submit!

Best of luck on your LEED Exam!

By Tom Noonan

Author, Tom Noonan is a LEED Accredited Professional, helping people pass the Leed Exam with his website: http://www.LEEDExam.org

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Real Estate Investment in a Recession

Have you ever noticed how buyers flock to purchase property in droves when real estate prices are at their peak, yet buyers are relatively scarce when prices are most affordable? Notwithstanding the fact that this occurrence defies the generally accepted investment strategy to "buy low and sell high", one can't help but wonder why attending social gatherings during the real estate boom years of 2005 and 2006 would inevitably lead to engaging in a conversation about someone's real estate investment and the promise of future profits to be derived from the venture. It's not all that surprising that many of those recently boasting about their real estate exploits have softened their tone while seasoned investors, dormant for the past six or seven years, have begun to once again start purchasing lucrative investment property. Despite news about the recent real estate and financial industry tribulations that the public is seemingly bombarded with every day, the last few months of 2008 provided a relatively quiet, yet dramatic, surge in real estate sales.

The National Association of REALTORS® (NAR) has reported that residential home sales have increased by an astonishing 115% when the last quarter of 2007 is compared against the same period for 2008. Have the experienced investors purchasing all of this property been ignorant to the steady stream of media reports warning of declines in real estate values? The answer is no, they have simply been waiting for the right time to emerge like a small swarm of locusts to steadily reap houses for sale like crop. In fact, their buying presence has been so prominent that national housing inventories of homes for sale have significantly decreased during 2008's final quarter, a reliable sign that demand is beginning to once again catch up with supply.

But how do these brave souls know precisely when they are buying at the bottom of the market? Do they throw caution to the wind and simply force themselves to muster the courage to purchase property despite the fact that values may continue to decline in the future? The simple answer is that savvy real estate investors do not purchase property with the expectation of immediate appreciation in value. Rather, investment real estate should be purchased based on the property's potential for positive cash-flow. Positive cash-flow occurs when a property's rental income exceeds the owner's costs to maintain the property. Consequently, when a property provides a positive cash-flow, a decline in real estate prices is of little concern since the owner can simply enjoy the income his property generates until the market revives and the property can be sold for further profit.

During the real estate boom years our nation became blindly infatuated with the appreciation of real estate prices, which represents the amount of value that a property will gain over time. So called house "flippers" brazenly leveraged money to buy numerous properties with the expectation that their values would increase, thus enabling them to sell the properties for handsome profits in a short period of time. These novice real estate quasi-moguls, often addicted to HGTV and other television shows created to promote the industry like Flipping Out and Flip This House, regularly failed to consider property cash-flows prior to making their purchases. Why bother when real estate values will always continue to appreciate, thereby alleviating the need to hold properties for long? After the housing bubble burst, many of these speculators realized that they shouldn't have built their investment houses out of sticks, and social gatherings became pleasant once again.

Seasoned investors build their investments out of bricks by carefully and conservatively analyzing a property's cash flow potential prior to purchasing. The primary reason that these investors have been sitting on the sidelines for many years is that most real estate prices have been far too high to generate positive cash-flows and a reasonable return on investment. It hasn't been until recently that both residential and multi-family housing prices have retreated to levels where rental income will cover monthly mortgage payments and other operating costs. Further, with the construction of new housing and apartments decreasing to a virtual halt, a still rapidly growing local population, and many families displaced from foreclosed properties, an investment property's owner is free to choose from a tenant base that is now stronger than ever. One can clearly see why a decline in real estate sales prices typically accompanies an increase in monthly rental prices.

No matter what the year 2009 holds in store for real estate investing, it is essential to remember that investing in real estate should always be considered over a long term. Although the opportunity for a "quick flip" may present itself, the distinguishing benefit to sound real estate investments is their ability to provide income no matter what the economy throws your way.

By Brian Icenhower

About the Author:
Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or http://www.icenhowerrealestate.com.

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The Real Estate Outlook For 2009

To say that real estate took a beating in 2008 is a kin to saying a great white shark has some interesting teeth - it is a minor understatement. For many people, the question is whether 2009 will be any better for the real estate market?

If you lined up all the gurus in the world, you would have a line and not much more. In the world of real estate, the relevant gurus are predicting everything from a continued down turn in housing to an absolute turn around come the first quarter...no, second quarter...no, third quarter...well, you get the idea. Every guru has a different opinion, which means one will eventually be right and the others will have to ignore the fact they gave the wrong advice! In short, don't believe them.

So, what can we realistically expect in the real estate market in 2009? Nobody really knows, but there are two potential scenarios that seem the most likely. The first is not so good - the market continues to correct after the real estate bubble. The second predicts a bit rosier outlook in which the market turns around near the end of 2009. Let's take a closer look.

The "El Doom and Gloom" prediction is, unfortunately, supported by a number of basic truths. The first is it is not going to be easier to borrow money. At best, the banks are going back to closely scrutinizing borrowers. At worst, they will only give loans to the best of the best. Either way, this cuts down on the borrowing populace and, in turn, the number of buyers active in the market. Fewer buyers means less demand, which means prices continue to drop.

The second problem arises when we look at the current mortgage portfolios on the market. Everyone knows the nightmares spawned by the subprime and no doc loan failures. Well, guess what. There are a bevy of loans coming due in 2009 and 2010 that have to be refinanced or homeowners will be unable to pay them. This partial ARM loans are the monster in the closet nobody really wants to talk about. If a large percentage of them go into default in mass, it is going to be just as ugly as the subprime mess and would mean that 2011 would probably be the first time we would see the housing market recover in mass.

The second common prediction that 2009 will be the beginning of the turn around is rooted a bit in fact and a bit in politics. The fact element has to do with the Federal Reserve. The Fed, led by Chairman Bernanke, has gone all out fighting the current market problems. The recent lowering of the short term borrowing rate to essentially zero percent is a sign of a Fed that is ready to do whatever it takes. We can count on that attitude continuing into 2009.

Politics is the second element of the positive outlook. We have a pro-government President coming in with a Democratic Congress. Whatever your politics, this portends action by the government. Look for "New Deal" types of proposals to bolster the housing and banking industry. This is a President who clearly intends to hit the ground running, so you can expect action that will help in the short term. Whether it is good for us in the long term is, of course, another question. The overall debt of the country is huge, but it is generally agreed that action must be taken now to overcome the current crisis.

So, what do I believe 2009 will actually end up looking like for real estate? Unfortunately, I think it is going to be rough. That being said, I do believe certain parts of the country will see their markets stabilize a bit. Then again, my prediction is hardly any more accurate at this moment than any other real estate guru! Check back in a year to see who was right!

By Stephan Teak

Stephen Teak is with CommercialLoanStop.com - your resource for commercial hard money loans for creative projects.

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What If I Owe More Than My Home is Worth?

If you owe more than your house is worth, you might say "upside down" or "under water." And you are not alone. Before you resolve yourself to foreclosure and walk away from your home, consider some of the following options.

Loan Workout/Loan Modification/Loan Rework--Banks are becoming more willing to do loan workouts, also called loan modification or loan reworks. Banks are not in business to sell homes. They would much prefer that the homeowner stay in the home and pay their mortgage. Even if you have received a foreclosure notice, there still may be time to save your home and your credit. Below are the different options for reworking your loan:

1. Loan Reduction. This is simply a process by which the lender reduces the amount you owe on your home. If you can show proof that homes like yours in your area have recently sold for less than what you owe on your home, the lender may agree to lower your loan amount. Lower loan amount equals lower the monthly payments. To get started, call your lender and ask for the loss mitigation department.

2. Extension. This loan modification (also handled by your lender's loss mitigation department) extends the term of your loan. Your payments are lowered and spread out over a longer period of time.

3. Interest Rate Reduction. This option is especially favorable if you have an adjustable rate mortgage that has risen so high that your payment is no longer affordable. Often, the bank would rather reduce the interest rate than foreclose.

NOTE: DO NOT, at any point, stop communicating with your lender. This makes them more likely to move forward with foreclosure proceedings.

Forbearance
If you are a couple of payments behind, but are expecting a lump sum of money (yearly bonus, insurance payout, or tax refund) that will catch you up, consider requesting a forbearance. The lender agrees to allow you to temporarily stop making payments. But you must bring the payments up to date by a specified date and start making your payments at that time. Resuming the payments is called reinstatement.

Repayment Plan

This is a plan that your lender agrees to, where you make your monthly payments and add on a little extra. The extra amount will be applied to your overdue balance.

Rent/Lease Your Home

If you have no hope of being able to pay your mortgage, you may be able to rent out your home. There are a lot of people who are looking for a home to rent. If the house will not rent for enough to cover your payment, it will probably be worth making up the difference yourself. You can find a cheap place to rent in the meantime. These are hard times, and it won't be forever. Once housing sales recover, sell the house then. You may even make a little money on it.

Short Sale
If you've been devastated financially, you may not be able to pay for your home at all. A short sale may be the best way to avoid foreclosure. In a short sale, the house is put on the market at a price that is less than you owe. Sometimes the bank will accept the reduced amount. Other times, they will expect you to pay part of, or all of the difference. They will work out a payment plan for you to pay them the shortage.

Loan Assumption

If you have a reasonable interest rate and loan amount, you may be able to sell your home to a buyer that can assume your loan-that means they take over the payments for you. Work closely with your lender on loan assumptions. Scammers have tricked some into thinking their loans are being assumed. In the end, the sellers gave up their homes but still owed the mortgage.

Deed in-lieu-of mortgage

A deed in-lieu-of mortgage is one step above foreclosure. This is a process by which you voluntarily surrender the home to the lender. A deed-in-lieu-of mortgage is less damaging to your credit than a foreclosure.

A foreclosure on your record says that you breeched a legal contract on life's most important financial obligation. It further says that you breeched it in a way that forced the bank to sue you. It gives the impression that you are not honest.

Foreclosures follow people for years, even for the rest of their lives. Once you lose your home, you will need to live somewhere. When you apply to rent property, the landlord will probably check your credit. Did you know that employers often check credit before hiring or promoting? Knowing that a foreclosure on your credit makes you look dishonest, do you want that on your record?

Foreclosure should be avoided at all costs.

By Lyn Collier

Learn from Lyn Collier's years of Real Estate experience.

Read simple, to-the-point articles about avoiding costly mistakes and what to do if you owe more than your home is worth at http://www.e-home-mortgage-loans.com/index.html

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The Key to Real Estate Sales Success

One of the first steps toward success is to know what you want out of your real estate career, and "financial independence" is not a specific-enough answer.

I've been in real estate, either in direct sales or teaching, speaking, training, writing, or coaching people, for nearly 20 years. I've met tens of thousands of agents and nearly every one started selling real estate with the same goal of financial independence. Countless times I've asked the same question: "Tell me, how do you define financial independence?" What I usually hear in response is some variation of the answer, "So I don't have to worry about money anymore."

The key to eliminating money worries is to establish a financial goal - an actual number ¬¬- that you need to accumulate in order to achieve the quality of life you want to enjoy. Financial independence boils down to a number. Set that number in your mind and then launch your career with the intention to achieve your goal by a specific date.

With your financial goal in mind, you'll have a clarity that will see you through the valleys and hard work that lie ahead of you. When you have to endure the rejection, competition, disloyal customers, and challenges that are inevitable along the way, your knowledge about the wealth you're working to achieve will help you weather the storms of the business.

Pathways agents follow in search of success

Agents follow one of these four basic approaches in the quest to achieve real estate success:

1. Become a workaholic. More than 80% of agents who generate a reasonable income achieve their success by turning their careers into a seven-day-a-week, 24-hour-a-day job. They answer business phone calls day and night, they make themselves constantly available to prospects and clients, and they work on-demand with no restraints.

2. Buy clients. The second-most frequent pathway to success is to buy business through massive marketing campaigns. Some agents buy or "brand" their way to the top level of real estate by investing in billboards and bus benches, thousands of direct mailers, expensive ad schedules, and all kinds of promotions. Others buy their way to the top by discounting their commissions. By offering themselves at the lowest prices, these agents eliminate the need to emphasize their skills, abilities, and expertise.

3. Take the shady road. Another avenue to real estate financial success is to abandon ethics and just go for the deal and the resulting money. Unlike the vast majority of agents who advise and advocate for their clients, agents who take this route choose not to be bound by the ethics and code of conduct of the National Association of REALTORS. They put their own needs first and their clients' best interests in distant second place. Fortunately, these agents are few and far between.

4. Build a professional services business. The fourth and best pathway is to create a well-rounded, professional services business not unlike that of a doctor, dentist, attorney, or accountant. Fewer than 5% of all agents follow this route, yet the ones that do are the ones who earn the largest sums of money ¬- some exceeding $1 million annually while also having quality lives and time for friends and family. Plus, when they're ready to bow out of the industry, they have a business asset they can sell to another agent. This is the route I urge you to follow.

By Dirk Zeller

Dirk Zeller is an Agent, an Investor, and the President & CEO of Real Estate Champions. His company trains more than 250,000 Agents worldwide each year through live events, online training, self-study programs, and newsletters. He's the widely published author of Your First Year in Real Estate, Success as a Real Estate Agent for Dummies®, The Champion Real Estate Agent, The Champion Agent Team, Telephone Sales for Dummies®, and over 300 articles in print.

Real Estate Champions is a premier coaching company. Training covers a wide spectrum from new agents, to seasoned, as well as those interested in real estate marketing or real estate investing.

You can get more information at Real Estate Coaching, Free Resources for Realtors

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The Biggest Real Estate Myth

We all think we are in the real estate investing business. This is a fundamental mistake! It's true that we have checks written to us in exchange for services of buying and selling houses, so it's understandable to think we're in the business of real estate. When someone at a party asks what we do, we naturally say "I'm in real estate" So when we look at growing our businesses, we look at what we do for the levers. And that's the mistake.

You're not in Real Estate!

You're in the business of "MARKETING YOUR real estate ABILITIES"

When you really understand this, a whole new world of possibility opens up.

Here is the TRUTH:

1. When you move marketing to the center of your business, your view changes dramatically.

2. Realize that what you do - the tasks specific to providing the service - should be viewed as marketing itself. From the very first interaction a prospect has with your business, whether it's an online ad or a phone call or whatever else, you're creating an experience. That experience is a core marketing function. Is the experience you provide worth talking about? How do you make them feel?

3. 95% of the people in real estate don't know marketing. The first step to breakthrough success is to clear your mind of 'how it's always been done' and to look at the problem of marketing with fresh eyes.

That is why real estate investor must wake up and realize that only by using a precision marketing plan is it going to get them more leads and deals. Internet marketing is the new medium for doing business. Savvy real estate investors can now dominate their markets and send profits soaring by using online marketing. However, there are some very important online fundamentals that you must learn that will create the desired effect.

I would like to suggest to you to start to take notice of everything within a perspective of marketing. The whole world will become your classroom. Do you notice how the hotel offered you a rewards program? That's marketing. Do you think that's effective? If so, how do you use that idea?

The other day, at the airport parking lot, I was surprised and delighted by the fridge of free water bottles placed next to the machine where I feed my ticket as I pulled out. Amazing! How does that make me feel? How can I apply that lesson?

When you're a lifelong student of marketing, and take action on ideas you will begin to see opportunity everywhere you look. I would suggest you seek out the trainers who clearly understand this new way of doing business and mirror those methods!

By Duncan Wierman

Bio: Software CEO turned Real Estate Investor and Marketer. Duncan Wierman shows you how to use creative online marketing methods to do more deals online.

http://www.duncanwierman.com

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Issues Related to Appraisals For Condemnation

When a property is being taken by the state, a local government body, or a statutory body, the property owner is usually sent a letter that says in effect that they will be taking your property and further stating that they have had the property appraised. The condemnor will usually make an offer to the owner for the appraised value. However, the detail from the appraisal itself is typically limited to raw transactional data with limited or no analysis included in the letter. Sometimes the appraised value and subsequent offer will be fair as the appraised value might have been generated giving significant weight to the Fair Market Value detailed above. However, usually, the owner of the property being taken under eminent domain laws has little evidence of the property's value beyond that being stated by the condemning party. This makes it very difficult to determine if the offer is a fair one?

Any discussion of appraisals in the eminent domain arena should be understood with a few definitions in mind. Thus, we direct the reader to the following Definitions:

Eminent Domain: The right of government to take private property for public use upon the payment of just compensation. The Fifth Amendment of the U.S. Constitution, also known as the takings clause, guarantees payment of just compensation upon appropriation of private property. (Source: The Dictionary of Real Estate Appraisal, 4th Edition, Published by the Appraisal Institute)

Condemnation: The act or process of enforcing the right of eminent domain. (Source: The Dictionary of Real Estate Appraisal, 4th Edition, Published by the Appraisal Institute)

Condemnation Blight: A diminution in the market value of a property due to pending condemnation action. (Source: The Dictionary of Real Estate Appraisal, 4th Edition, Published by the Appraisal Institute)

"Fair Market Value" - Used in Eminent Domain Cases: The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available. (Source: Code Civ. Proc. § 1263.320(a), State of California)

In California, recent changes to the law require the plaintiff (the body exercising its right to condemn the property under eminent domain laws) to give the defendant (the party who's property is being condemned) $5,000 for appraisal fees. Other changes in the law also make it harder for the condemner to take the property without having first agreed to the value of the property. These two combined changes in the law should make negotiating with the plaintiff an easier process, as the defendant now has the money to pay for an independent appraisal as well as the power of time given by the requirement that a financial settlement much be reached before the property will be handed over to the plaintiff.

But even with these changes, it is our opinion that in most cases the defendant should seek legal representation, avoid negotiating with the condemner directly and avoid hiring the appraiser on their own.

We have three reasons for these opinions:

1) The appraised value provided to the condemner was written by an appraiser who in all likelihood would act as an expert witness for that side in the event of a trial. As such, it is quite possible that they have not taken to heart the definition of fair market value above (I strongly suggest reading it!). I have been involved in situations where the municipality's appraised value was almost one half of the actual value.

2) Even if you use the $5,000 for your own appraisal, you then have to negotiate with the body yourself. This is an arduous process and you would be dealing with skilled negotiators. Moreover, the appraisal you engage will become part of the record, either in the form of the copy you give the other side, or via the process of discovery before trial. This leads to the third reason to hire an attorney.

3) Most importantly, your attorney should hire the appraiser directly. The appraiser can be hired as a consultant and issue the appraisal in a restricted format. If you and/or your attorney do not like the appraisal, the appraiser, or the results, your attorney can hire a new appraiser without the previous appraisal making it into the court record. That is because it is protected by attorney client privilege.

What to Expect From Your Appraiser

Once you hire your attorney they will likely engage an appraiser that they are comfortable with. Once engaged the appraiser will inspect the property and behind their search for the appropriate comparable sales and rental datum. If the highest and best use is an alternate use, the appraiser will likely be searching for land sales, whereas, if the highest and best use is for continued use, sales will be of similar improved properties. If the property is income producing, or has the potential to be income producing, the appraiser will also likely conduct an income approach. Either way, the appraiser should be looking for the "highest price on the date of valuation that would be agreed to" between a buyer and seller (see definition of Fair Market Value above).

By law the appraiser is an independent third party and this does not change in eminent domain cases. Most appraisers guard their independence vigorously, so it would not be a good idea to try and push or sway the appraiser in the direction you are hoping for. Furthermore, your attorney is hopefully experienced in the field of eminent domain and condemnation law, so you would be well suited to let the attorney handle all but the most tertiary discussions with the appraiser. However, in the event that you disagree with the appraiser's results, you can always ask the appraiser, through your attorney, to revisit the analysis with whatever new information you provide.

Your other option is to hire a new appraiser and keep the original appraisal in the attorney's files. This will protect the appraisal in the event that the case goes to court and the appraisal will not be discoverable.

By James A. Stein

Los Angeles; Orange County Appraisal

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