Posted by admin on August 25th, 2008 — Posted in Real Estate Resources
There are a range of properties in Portugal for sale on Property Index, from villas to apartments.
Despite the fact that the Property Index online service is seen as a pretty young company, (they were founded only in March of 2007), they have quickly established their expertise. They’re a pretty unceremonious company focusing on servicing every customer who is intending to buy property across the world. Their affirmation is to assist you discover smack what you require quickly and in a trouble-free manner. Property can be found in many parts of the world today, probably the elite area being estate available for sale in Portugal. It should be no problem to tally the terrific properties available in Portugal, the reason for investigating land here is a combination of the houses and apartments for sale and the good chance of spending your life right amid this eager and energetic population.
It’s one of the truly trendy countries today, and in view of the gorgeous landscape and the wonderful weather that surrounds you all year long, how could you ever say no? Property in Portugal is very rich in history and culture, this area of the world is and has always been home to quite a number of indigenous cultures. Around thirty years back you’d find only very few of Britons keen on properties in Portugal. Ask any individual who has removed to Portugal and they’ll be sure to substantiate this. Well, some would term it a transient rage and others term it a practically a fetish. People that are willing to move over here will range from young families keen on an exciting new life perspective to senior citizens looking to have a fun retirement.
Note that there may be problems when trying to purchase properties in a foreign market — you’ll find there are a hundred actions to come to terms with when working out a plan, touring or actually purchasing. If you miss out on one single procedure it is sure to give rise to wide-ranging problems and, preeminently, monetary loss. As is to be supposed with this sought after place, properties may well be dear in this place and this, of course, is solely a consequence of the wide spread market pressure. This notwithstanding, customers are really pretty spoilt in terms of choice in such a location full of cheerful panorama. It’s able to offer all just about anyone could feasibly fancy, etc.
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Posted by admin on May 12th, 2008 — Posted in Real Estate Resources
Are you thinking of investing in real estate? But you do not have enough cash to do so. Here is a tip you can use as long as the property seller is willing to negotiate with you. To be fair, not every seller will be interested (or even understand) the concept outlined. Your best bet is to find a property that the owner has great interest in selling, whether because of moving, divorce or frustration with tenants.
Actually, if you are currently renting and thinking about using this technique perhaps your landlord would be happy to help you out! There are a few variations that can be used depending on you and your seller. Do they want the market price or are they just eager to get out from the monthly payments - perhaps facing foreclosure?
The simplest method is to take over their mortgage payments - called ‘assuming’ the mortgage. You will need to be approved by the original lender to assume the mortgage. If you cannot get approved for an assumable mortgage you may also try a ’subject to’ assumption where you merely make payments while the property remains in the seller’s name.
You take over the original mortgage and create a second mortgage on the remaining cost of the house with the seller. Offer a high, interest-only payment for a short period of time - 2 or 3 years. Instead of having the money sit in a bank they can be collecting a high interest over 2 or 3 years with the remainder due in full at the end of the term.
When the term ends you should be able to refinance the cost, or you can sell. Unless you hit a real bad market the value of the property should have risen in that time.
Most mortgage lenders merely want to make a good investment. While your local bank may still shy away there are plenty of financial lenders that would love to make a deal. Financiers like real estate. The mortgage is usually based on 60-70% of the value of the property, so as long as they know they get their money back in the value of the property if you default, they don’t care what kind of money you make. Complete the deal with a second mortgage created with the seller. If you default they can still foreclose on the property and sell it, paying off the existing mortgage with the proceeds.
Now you can see the whole picture. It is better that seller and buyer can work together. If they can’t wait for a sale, you can still give them their asking price with a little flexibility on their part.
Dr. Drew Henry maintains a number of websites about Loans, including New Home Loan, No Credit Check Loan, and No Equity Home Loan.
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Posted by admin on May 3rd, 2008 — Posted in Real Estate Resources
Refinance - refinance, can lead you such a fine dance. Can addle your brain and then lead you to drink. Still there’s no shortcut to - perfect refinance. You simply can’t - sign - on a nod and a wink!
Your aim is to cut down your interest costs paid; reduce your payments and get money out. Truth is you’d rather be just getting laden…with goodies, whilst shopping - or fishing, no doubt.
When the interest rate’s two - maybe three points below what you pay every month for your mortgage or loan. Then it’s time that you really went “fishing” you know, for a deal with more “meat” on the bone.
Now websites and experts abound with advice - You’ll have “arms” coming out of your ears! “fixed rate” - “options?” - Listen carefully - be nice but consider “the term” - Yes the …years!
Be careful with answers - and questions as well. The devil’s - likely as not - in the small print. Just take your time - don’t be hurried - do dwell. Don’t be quick to make lenders a small mint!
“Refinance co-signed”, or “lending sub-prime”, “bad credit refinance loans fast”? The points you might pay could be labelled as crime! So you’ll have to stay strong to the …last.
You’re damned if you don’t and your damned if you do…? Well - that’s often the feeling sometimes. But the perfect refinance - is tailored to YOU…and you’ll KNOW when the “bottom line” rhymes!
© 2005 Luke Sharp
Luke Sharp excels at witty and original articles and poems. He’s a valued member of the “Online Refinance” team. After the “Luke Sharp treatment” complicated subjects seem clearer. See more “poemicles”, entertainment, and all the information you’ll ever need on refinance at http://www.onlinerefinance.net
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Posted by admin on April 30th, 2008 — Posted in Real Estate Resources
Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership which has benefits for all.
What Is A Lease Purchase?
A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. A percentage of that payment is typically applied towards the purchase price. At the end of the term, the buyer has the right to purchase the property for the price and terms to which both parties have previously agreed.
Put another way, a lease purchase is essentially a rental agreement combined with a purchase contract with pre-negotiated terms. The buyer leases the property for a specific period of time and then purchases the property before the end of the lease agreement. Sales price, length of rental, rent credits, escrow instructions, etc., are all contained in the agreement.
A lease purchase is a wonderful way to control property without the headaches of banks, mortgages, taxes or immediate loan qualifying. Lease Purchasing gives you the right to buy the property, but not the obligation to buy.
Following are just some of the benefits of Lease Purchasing.
Benefits For Buyers
Low down payment.
Qualification restrictions are not as great as in conventional financing.
Past credit problems are not usually a road block.
The option consideration can be fully credited to the purchase price.
Your rent money is working for you.
Purchase price is usually locked-in ahead of time.
Gives you sufficient time to check out all the features and faults of the house.
Time to check out the neighborhood.
Puts you in legal control of a property for a specified period of time.
Time to shop for and obtain the best financing.
Major maintenance and repairs are the responsibility of the owner; you take care of nothing but minor maintenance.
Profits, in case appreciation occurs and you decide to sell in the future.
Benefits For Sellers
Usually top sales price for the property.
Better quality tenants.
Higher rent than usual for the market area.
Non-refundable option consideration.
All minor maintenance is delegated to the tenant/buyer.
Seller remains on the deed.
Seller retains the tax shelter.
No fees to pay.
Benefits For Investors
Maximum leverage.
Minimum cash outlay.
Minimum risk.
No maintenance.
Wonderful cash flow.
Excellent profit potential.
Benefits For The Business Owner
Little start-up capital needed.
Little or no credit needed.
Wonderful cash flow can be generated immediately.
Excellent and realistic first year income can be achieved.
Business can be started simply, no major equipment to buy.
Business can be operated full time, part time or in your spare time.
Best of all, the business can be operated from your own home office.
Copyright DeFiore Enterprises 2000
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our “how to” Home Business Solutions Digest, it’s like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
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Posted by admin on April 22nd, 2008 — Posted in Real Estate Resources
You’re seriously considering buying a second home or vacation
home. What are your options? Is whole ownership the right
choice? What about fractional or shared ownership? What’s more
important to you - investment or enjoyment? This report answers
these questions and more.
A second home is something many aspire to own and enjoy. You’re
not alone. In fact, people are buying second homes like never
before. Second homes tend to be held for seasonal and occasional
use or whose usual occupants live elsewhere.
The expansion of second home growth has had two driving forces
behind it: increased wealth and favorable demographics. With tax
laws that benefited the transfer of wealth, the stock market
boom in the 1990’s and renewed house price appreciation, average
household net worth has risen dramatically. These demographic
changes coupled with the recent languishing stock market have
intensified second-home demand and contributed coincidently to
the extreme rise in prices within destination resort areas.
Second-home purchases are most commonly made by middle-aged
heads of households in their prime earning years.
In 2004, the second home industry in North America achieved
record sales volumes. A total of 2.82 million second homes were
sold in the U.S., up 16.3% from 2.42 million sales in 2003. This
growth trend is attributed to several factors:
* The US economy recovered from a deep recession.
* Cash in money markets languished with the lowest
interest rates in decades.
* Confidence in the stock market remained and continues
to remain low with consumers seeking out alternative investment
opportunities.
* Consumers in the US and Canada saw second home real
estate as a safe haven for investment appreciation with the
opportunity to also enjoy the use of their new asset.
* Second homes also provide investment diversification,
which has become a critical concern among consumers since the
stock market crash in 2000 and 2001.
New Ownership Options Available to Meet New Market Demands
In response to growing demand, the resort industry has undergone
substantial change in the last five years. In order to broaden
market appeal, developers have crafted new second home real
estate products to better respond to people’s needs and desires.
The most recent innovations in the second home industry are the
introduction and rapidly increasing popularity of luxury
fractional real estate and the condominium hotel - two of the
fastest growing segments of the real estate industry today.
Fractional Real Estate and Condominium Hotels are primarily
purchased for lifestyle enhancements. The variations between
these products tend to be in how the owners plan to use their
residences and what they hope to gain from their ownership. To
better understand these differences it is important to note the
two primary motivations for owning a second home - as an
investment and enjoyment from use of the residence.
Similar to whole ownership purchases, fractional and condo-hotel
owners are granted ownership by fee-simple deed with title
insurance. Since Fractional Real Estate and Condominium Hotels
are backed by deed and title, these purchases are considered
equity-based investments as opposed to the non-equity based
multi-site destination clubs also popular in today’s market.
And, just as you can with a primary dwelling, the deeded
fraction or condo-hotel real estate may be resold or bequeathed.
Fractional Ownership
Fractionals are very upscale fully furnished second home
properties usually located within renowned destination resort
areas or select urban settings where cultural, dining and
shopping experiences are extraordinary. More important to the
consumer is that resort fractional projects are being located
within destinations that have been family favorites for
generations. These residence programs normally include superior
resort services such as concierge, valet parking and personal
gourmet chef services for in-home dining, as well as the use of
first class quality amenities and a variety of recreational
activities.
Common settings for fractional properties are ski and golf
resorts and beach communities. Popular destinations include
Aspen and Telluride in Colorado as well as the Caribbean.
“Fractionals are typically found in resort areas where prices
for second homes are very high and/or there is a scarcity of
available real estate,” says Richard Ragatz, president of Ragatz
Associates, a hospitality market research and consulting firm
based in Eugene, Oregon.
Carl Berry, CEO of Scottsdale-based Star Resort Group, notes
that the luxury fractional or private residence club concept has
become attractive because property values in popular resort
areas has skyrocketed out of reach of all but the wealthiest
buyers.
For example, Mr. Berry notes that $1 million now buys a
tear-down cabin in Aspen, Colorado, whereas a fractional there
costs $200,000 to $500,000, “which is chicken feed compared to
what these properties are going for.” Nowadays, $200,000 will
buy a piece of a $1.5 million property, according to Ragatz, who
notes that this concept has been around a long time. “People
have been investing in second homes with relatives and friends
for years, but divided-ownership property was never a true
product until recently.”
I like to emphasize that the popularity of the second home
fractional is that it makes sense to purchasers who simply could
not justify the purchase that they might only use for a few
weeks out of each year. With a fractional, owners have the asset
and all the advantages of second home ownership without the cost
or year-round maintenance obligations. Professional management
relieves owners of the worry and anguish that often accompanies
second home ownership. When coupled with superior hospitality
service levels, the fractional purchase is an exciting and
sensible alternative in the second home marketplace. Fractional
choices are broadening as developers continue to design programs
that truly allow owners to use their second home as they prefer
at a fraction of the cost.
What Types of Fractional Ownership Are Available?
There are several different types of fractionals that serve
divergent interests. The most popular categories include
Traditional Fractions and Private Residence Clubs.
Traditional Fractional
This original fractional format was first formulated in the
1980’s to formalize the sharing of a single family home within a
destination resort area. Traditional fractions now involve
condominiums and attached townhouses as well as detached single
family homes. These Traditional Fractionals are usually sold in
one-fourth interests, also termed Quarter-shares. Quarter-share
owners receive one week of use each month for a total of 13
weeks per year. Variations of the Traditional Fractional
include: Fifth-shares with a total of 10 weeks per year and
assignment of use every fifth week, and; Sixth-shares with 8
weeks of use per year and allocation of time every sixth week.
Within each traditional fractional format, the weeks are
assigned through a calendar that rotates to distribute the most
desirable times of the seasons in a fair and equitable manner.
The owner may either use or gift their weeks, or they can place
their unused time in a rental program and split the revenue with
the property manager after costs. Quality of the residence and
furnishings is in the 3 to 4-star ranges. Service levels are at
the 3-star level, if included in the program offering.
Private Residence Club (PRC)
A Private Residence Club (PRC) is designed to meet the needs of
the same affluent buyer that would normally consider purchasing
a luxury wholly owned second home. The purchase decision is
primarily based on the buyer’s motivation to enjoy the residence
and the resort area, although potential value appreciation is a
factor.
Affluent purchasers recognize they have limited leisure time and
are looking for real estate that is price proportionate to
actual use. The Private Residence Club ownership model follows a
“pay for what you need and want” philosophy in an intimate,
exclusive community together with highly personalized service
and a wide range of amenities. As in the Traditional Fractional,
owners purchase a share or “fraction” of a Private Residence
Club home. They receive a deed with title insurance.
Private Residence Clubs comprise a high-end luxury product sold
on a one-seventh (1/7) to one-thirteenth (1/13) share basis.
Quality of the residence and furnishings is in the 4-star to
5-star ranges. Service levels are superior with every need or
request by an owner accommodated by an attentive staff.
As pioneered by principals of Star Resort Group, the defining
quality of the Private Residence Club is in the owners’ ability
to access their time in a flexible manner and literally as often
as they want, similar to a golf country club and subject to the
project’s Reservations Policies and Procedures.
Dave Hanna, President of Star Hospitality and a member of the
first PRC development team explains, “In the Private Residence
Club program, the owner’s use of the residence is on his
schedule and not controlled by a calendar. Generally, ownerships
are granted a set amount of time, termed ‘Pre-planned
Vacations’, to guarantee each owner access to their residence
during peak seasonal times. In designing a particular use plan,
we consider the length of the peak season and set a ratio of
owners to each home that allows enough flexibility so owners can
be assured of securing the times that they want each year.
Spontaneous visits by owners are accommodated through a ‘Space
Available’ reservation program that allows for use as little as
one night at a time and up to seven nights per reservation. Some
owners may use the program less in certain years, making more
time available at the resort for the other owners.”
Carl Berry adds a note on hospitality service levels: “Certain
Private Residence Club projects prefer to promote their program
with “5-star service” levels. When compared to the rating system
utilized by the hospitality industry for luxury hotels,
residence clubs that do not provide fine dining alternatives,
butler service and other requisites that earn the 5-star rating
are at 4 to 4.5-star levels. That is not to say that the service
isn’t excellent, for it is. It’s just not 5-star by hospitality
industry definitions. Owners at Star Resort Group projects
appreciate the tradeoffs between having a 24-hour butler staff
versus having to pay for that convenience in their annual fees.”
PRCs are seldom rented, since the owners generally prefer to
keep unused time available for the owners while maintaining
exclusivity. The Homeowners Association supports their thinking
by not facilitating or encouraging rentals. Should owners decide
to rent any of their guaranteed weeks to friends or associates,
the renters are treated as the owner’s unaccompanied guests.
Condo-Hotels
Statistics show that the market for homes with rental income
potential is nearly twice the size of the market for vacation
homes that are seldom rented. However, both markets are growing
rapidly in double digits. As expected, the typical buyer is at
least partially motivated by investment and rental income and
may be younger and less affluent that the luxury whole ownership
second home buyer.
A Condo-Hotel unit is a condominium sold on a whole ownership
basis with the intent of the owner using some of the time when
they wish, while placing the balance of their unused or
unscheduled time into a hotel rental program. An operating hotel
with attendant services is critical for this program to be
successful. The appeal of a condo-hotel ownership to prospective
buyers is that there may be an opportunity for rental income to
cover yearly operating costs. Strict rules apply toward
representation of the condo-hotel product as an investment. It
is first and foremost a real estate product predicated on the
owner’s planned use.
Although most condo hotels are sold as whole ownership, some
condo-hotel regimes have structured a hybrid fractional overlay
model into the mix of products in order to reduce the price
point and diversify the market. Aside from the prevalent whole
ownership condo-hotel model, traditional quarter shares or fifth
shares tend to be the most popular hybrid within the condo-hotel
platform.
Whole Ownership Second Home Options
For those who choose to use their resort residence for longer
periods of time, or are inflexible in their use times, or for
those who simply prefer not to share and are willing to pay the
price, whole ownership of a second home is the only acceptable
format.
You’re One Step Closer to Your New Home
Now that you’re armed with all the facts, the next step is to
start shopping for your new second home. And now that you know
all about your fractional ownership options and all of the
benefits of only paying for what you need, you just might find
yourself owning your dream home sooner than you thought possible.
For more information on fractional ownership in private
residence clubs and on condo hotels, including listings and
photos of available properties, visit the Star Resort Group
website at http://www.starresortgroup.com
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Posted by admin on April 2nd, 2008 — Posted in Real Estate Resources
On January 8th, 2001, our life changed in an instant!
Our entire income source disappeared in the blink of an eye (we
lost our million dollar company to a bad partnership).
Every nickel we had was invested in that company!
We were devastated!
We were placed in a position that we had to do something to make
money that month!
We often tell our students that even if you contacted us back in
January and told us that you had a course that could teach us
how to invest in real estate without credit checks and
$1.00-10.00 down we would have turned you away UNLESS you could
show us how to make what we call real money with those homes.
What is real money? To us it is at least $5,000 to $10,000 a
month (and more!).
You see, when most people think of investing in real estate they
think of the “buy and hold” strategy.
The “buy and hold” strategy is where you buy a piece of property
and “Hold” it for years while the principal is slowly paid down
and the value goes up.
We did not have time to “buy and hold” a home and wait 3-10
years to realize a profit!
If we were going to invest in real estate we had to do it in a
way that made us “real money” that month! Not 3-10 years from
now!
Our mortgage, electric bill, and telephone bills are due every
month!
The mortgage company does not want to wait 3-7 years for their
money, and they won’t!
We were very fortunate to learn how to control properties
without credit checks and $1-10.00 down and still enjoy real
profits in the thousands of dollars per home.
Our system was not put together because we were sitting in the
Jacuzzi one day and the clouds parted and we received divine
inspiration!
We often tell people that “we teach from where we have lived,”
meaning that we teach from personal experience.
We are unique in that we used what we teach first and foremost
to secure our dream home. It was not until we lost our company
that we were put into a position where we had to look closer at
investing full time.
It was then that we discovered how powerful what we teach really
is.
In 3 years, the land values in our area had tripled and our
dream home almost doubled in value, giving us an unheard-of
equity position without being on title!
We knew first hand how powerful this method was and that it
could generate some immediate serious cash flow!
Whatever way you choose to invest in real estate you will have
to pay attention to your cash flow.
We have an investor friend of ours that invests in homes that
need to be fixed up.
On his current project he had a home that he had estimated the
fix up costs of the home to be $5,000.
The last time I talked to him he was at $25,000 in repairs and
counting on that project! (Ouch!)
We were not interested nor did we the have money or credit to
buy a home and then spend tens of thousands of dollars fixing it
up (while still paying the mortgage) and then put it on the
market for who knows how many months until it sold.
Now understand, we are not passing judgment on that method of
investing in real estate. We are sure there are tremendous
profits in that area if done the right way, we just did not have
an interest in “fishing out of that pond.”
In “Buy With
No Credit, How to Make Money this month in Real Estate” , we
teach you not only how to invest in real estate without credit
checks and $1.00-$10.00 down but also how to enjoy up to 3
tremendous areas of profit on a home!
#1. Upfront profits in the thousands (real money)
#2. Profits every single month (cash flow)
#3. Profit when you go to closing
For example, a recent deal we did resulted in an upfront profit
of $5,500, a monthly cash flow of $200.00 and a back end profit
of $6,000 (this from a home that had no equity in it when we did
the deal!)
They say that “CASH IS KING” and we tend to agree with that
statement (as does our mortgage company and creditors).
So when you decide to invest in real estate, make sure you
clearly understand how and when you are going to profit in that
deal.
We recently talked to a new investor who had invested in her
first investment home using the “buy and hold” strategy. She
secured a 30-year mortgage on the home and for months it has
been vacant.
Meanwhile, she has been paying $1,000 a month for the mortgage!
Real estate can be a very profitable investment, but it is not
completely risk-free.
Thankfully, there are ways to limit your exposure to those risks
so you can experience the joy of going to the bank and putting
money in the bank instead of taking it out every month! We
discuss this in our course, “Buy With No
Credit, How to make money this month in Real Estate!”
God Bless.
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Posted by admin on March 31st, 2008 — Posted in Real Estate Resources
Homeowners often become very interested in the Federal Reserve Bank system. Every time the board of directors meets, mortgage interest rates are at risk.
Federal Reserve Bank
The Federal Reserve System acts as the central bank of the United States. Created in 1913, the Federal Reserve sets monetary and financial policies for the financial industry and trades currency with foreign countries. The Federal Reserve also acts as the bank for the federal government. When you send a check in with your tax return, it ends up in the Federal Reserve.
The Federal Reserve System is made up of 12 branch offices. The New York office is the primary office with other branches located across the country.
The primary job of the Federal Reserve is to manipulate fiscal policy. The goal is to fine-tune the economy to create a stable, predictable situation in which businesses can function. Wildly fluctuating economic keys, such as interest rates, can lead to chaos. In the late 1970’s, for instance, interest rates shot up into the high teens, causing a major economic slow down.
The Federal Reserve effectively controls mortgage interest rates in a unique manner. Many people mistakenly believe interest rates are actually set by the Federal Reserve. They clearly are not. Instead, the Federal Reserve directly dictates the rates at which one bank can loan money to another. Let’s take a closer look.
Every bank in the United States must hold back a percentage of its monetary assets. Put another way, the bank is forced to maintain a savings account. While this money cannot be loaned to consumers, it can be loaned to other banks. In exchange for the loan, a bank agrees to pay back the loan at an interest rate known as the federal funds rate. The Federal Reserve determines the federal funds rate. When you here Alan Greenspan has increase the rate a quarter point, this is what they are talking about.
You are probably wondering how the federal funds rate could possible impact mortgage rates. While there is no direct link, there is a practical one. Banks universally react to the federal funds rate, particularly whether it was raised or lowered. If the federal funds rate is raised a quarter point, you can expect mortgage rates to move up a bit. The bond market also impacts mortgage rates, which is why you will not see the exact same movement as occurs with the federal funds rate.
The Federal Reserve System makes a major effort to maintain a low profile. Most people, however, feel it is the real power behind the economy, not politicians.
Sergio Haros is with Great Western Mortgage - San Diego Mortgage Brokers - providing San Diego home loans. Great Western Mortgage is a San Diego mortgage company writing San Diego mortgages and San Diego refinance and home equity loan.
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