All About Realestate

By Sean Wheller

The right of an Estate Agent to earn commission is enshrined in common law. In general, commission is due when the Estate Agent has perform a client”s mandate, regardless of the amount of time or effort it took to perform the mandate.

In South Africa, there is no limit to the amount of commission an Estate Agent can charge. In the upper end of the market, this often results in impressive earnings. These facts, combined with the public perception that an Estate Agent is often seen to do very little in comparison with the handsome rewards received, has encouraged many people to join the Estate Agency industry. At last count there were more than 72,000 Estate Agents registered in South Africa. Although, in practise, not all are actively working as Estate Agents. Many Estate Agents are active only when the property market is buoyant and go dormant when the market slows down. Nevertheless, they are qualified to act as Estate Agents and may resume activity whenever they feel, with the provision that they comply with the requirements of the Estate Agencies Affairs Act.

Giving rise to commission dispute

Before we go on, it should be noted that most property deals go through without dispute. However, this does not mean that of the deals that go through there was no reason for dispute. Simply not knowing is often a cause for valid claims not being made, mostly on the side of the client. For such cases there is nothing one can do in retrospect, since all wrongs committed by Estate Agents are automatically made right upon date of transfer. No need to repent or visit confession, all sins are just magically wiped away.

In most cases commission disputes arise simply as a result of misconception by the public as to their rights and duties when they give an Estate Agent a mandate. However, dispute also arises due to misconception of Estate Agents as to their rights and duties in performing a client”s mandate. Both types of misconception can be easily avoided if Estate Agents spend more time being “frank” about discussing commission before accepting a mandate. In practise, this does not always happen, whether because of forgetfulness, lack of diligence or because of pressure to get the mandate. Discussion surrounding commission is often relegated to a mandate form, placed in front of the client with the expectation of signing. This document merely serves to capture the basic details and rarely elaborates on definition of terms, rights or duties at length.

While it is sound business practise to record in writing the amount of commission and under what circumstances the mandate will be considered fulfilled, some mandates omit small points that are not in the Estate Agency favour or the document itself serves to cover “conditions of absence in agreement” covered by common law. For example, under common law, in the absence of an agreement to the contrary, an Estate Agent is not entitled to commission simply because, over a period of time, there has been a conscientious effort to carry out a clients mandate.

Compliance requirements

We have noted that certain common law principles govern an Estate Agent”s right to commission and that standard contracts are employed to cover such rights. We have also noted that such documents can fail to explain terms and can even be employed to protect the agent from common law principles that are not in the Estate Agents favor. Our remedy to reducing the potential for conflict is to encourage more open discussion and consultation of commission with clients by Estate Agents.

However, assuming such discussion were to take place, how is a person know whether or not an Estate Agent is due commission when they themselves do not have enough information to ask the right questions during such discussion.

In this section we cover some of the points clients should know, compliance points that are often neglected or forgotten by even the most seasoned and professional of Estate Agents.

The first thing to know is that the Estate Agency Affairs Act and the Code of Conduct both have a direct impact on an Estate Agents right to receive commission. One of the most important stipulations of the act is that an Estate Agent may only receive commissions on transactions concluded during a period for which the Estate Agent is in possession of a valid Fidelity Fund Certificate.

Second thing to know is that Estate Agents who have not complied with the prescribed training requirements are not allowed to receive commission on agreements where they have drafted or completed clauses in a sale or lease agreement.

In addition to these requirements section 8 of the [Code of Conduct] sets forth conditions under an Estate Agent shall not be entitled to commission.

The implications of these three points are often not made clear to clients. Rarely, if ever, is a client furbished with a copy, or presented, an Estate Agents Fidelity Fund Certificate or a copy of the Code of Conduct. Incidentally, the Fidelity Fund Certificate is printed with a business card sized tear-off capable of fitting into a wallet where it can be easily kept like a drivers license and presented when required. There should be no reason why a professional Estate Agent with a valid Fidelity Fund Certificate should not wish to present it.

The act goes one step further. In addition to an individual Estate Agent having to hold a valid Fidelity Fund Certificate, the Agency Company, all participating directors and any person promoting or canvasing immovable property are also required to hold a valid Fidelity Fund Certificates. In the event that an Agency does not have valid Fidelity Fund Certificate, or any of the Estate Agents or employees of the Agency, all people employed with such agency are not entitled to claim commission.

In an industry with more than 72,000 agents, the public can easily be convinced to mandate the services of non-valid Estate Agents. Such persons, while operating illegally are not bound to operate under the Estate Agency Affairs Act or the Code of Conduct. As a result the Estate Agency Affairs Board, the organisation responsible for protecting the consumer, can only bring a criminal case against such persons and has no power to sanction any conduct. Whereas, if the Estate Agent is operating with a valid Fidelity Fund Certificate, failure to comply with requirements constitutes conduct deserving of sanction that may see the Estate Agents license to operate revoked.
Performance of the mandate

Terms of mandate differ, but in general terms a mandate is seen to be fulfilled when:

1. A buyer is introduced to the seller who is both legally and financially able to buy the property.

2. A binding contract of sale is concluded. It is worth noting that a contract with suspensive conditions is not binding until such time as such conditions have been met.

3. A transaction and its terms are substantially in accordance with the clients mandate.

Point 3 is interesting. The word “substantially” gives rise to a special twist. Since it means that, unless a client makes express note that commission will only be paid when the contract is concluded on “exact terms stipulated”, an agent is not required to execute a mandate to the exact letter. For example, if the client wants 500, 000 for a property and the highest offer attainable is 450, 000, the client cannot refuse to pay the full commission agreed.

A further twist of this case can evolve where an introduced buyer does not enter into a sale, but instead enters into a lease agreement. In this case, despite a lease agreement being in place, the Estate Agent is not deemed to have substantively completed the mandate and is not due commission as a different transaction to that which was mandated has resulted.

In practice we see this problem occurring all the time. An Estate Agent concludes a contract of sale at a price less that what the buyer was prepared to accept. Then the seller wishes to negotiate the commission down.
Effective Cause

Many people are under the impression that all they need do to qualify for commission is introduce a buyer and seller from wish a contract of sale is concluded. This is possibly one of the most common misconceptions shared by both Estate Agents and clients alike.

In fact an Estate Agent is required to do the above and be capable of demonstrating that he or she was the effective cause of the resulting transaction, north withstanding other factors. In reality many factors must be considered in order to demonstrate effective cause, including:

* How much effort did an agent put in. Simply giving a buyer and seller each others telephone numbers is not enough.

* The time between introduction and sale. If buyer and seller conclude a sale shortly after introduction, the argument that the Estate Agent was the effective cause is strong. However, if the sale agreement took place after a considerable period of time, the argument would be more difficult to prove.

* The extent of consultation provided by the estate agent. If through an Estate Agents consultation one or more obstacles to conclusion of the sale where removed, then the effective cause is in favor of the Estate Agent. However, if the obstacles were removed without the help of the Estate Agent, then the effective cause is most probable to lay with the buyer and seller.

* Frequency of interaction. How often did the Estate Agent communicate with the buyer and did the agent cease negotiations with the buyer at any point in time.

Conclusion

This article has briefly highlight a few of the main points concerning the rights and duties of Estate Agents and clients using their services. While some may see the information provided as a means to try avoid paying Estate Agents commission, the ability to do so legally is not easy. However, clients that feel they have genuinely not been served by an Estate Agent are not without recourse, if they have the information pertaining to their rights and duties as clients.

Having said this, it should be noted that Estate Agents are not paid for good intentions or hard work, only for bottom-line results. As a result it is not possible to measure an Estate Agents performance by the amount of work they put into a deal. Many Estate Agents do put a tremendous amount of work into their deals and take great pride in adhering to professional conduct. By the same token, an Estate Agent can earn considerable amounts of commission for relatively little work, but in this case runs the risk of getting nothing whatsoever if the mandate is neglected.

In closing it could be argued that the expectations and needs of clients would be better served if clients were better informed about both their own rights and duties and those of Estate Agents. However, in order for service levels to be improved, clients must also be willing to enforce their rights and not accept invalid Estate Agents or negligent service.

About The Author

Sean Wheller is a real estate agent, investor and the founder of the largest online property investing education website in South Africa, http://www.PropertyInvestorNetwork.co.za that specializes in real estate training, and property investing courses and seminars.

By Brian Anthony

As real estate agents, we”re in some difficult times for generating new business. Some of the tactics that have worked in the past aren”t working now and real estate agents across the country are scrambling to find ways to create leads.

One of the ways my team and I have kept the leads pouring in is by modifying our postcard marketing to expired listings. In the past, we have simply mailed a letter to every expired listing the day they were dropped from the MLS. Facing plummeting listing numbers, we realized that our approach was not working and dramatically changed our tactics. I share the basic approach we took to get massive results from our expired listing campaigns.

Step 1: First Postcard

In years past, all it took was one mailing to an expired listing. Generally we had a 7% call back rate on our mailings and we were thrilled. However, with the national media spreading doom and gloom, many homeowners are now convinced that the housing market was horrible and would never allow them to sell their home.

Faced with this change in mindset, we started a three step campaign using postcard marketing to expired listings in our market. The first mailing was a typical real estate postcard marketing piece touting our experience and our team. While we don”t receive many calls on this piece, it lays the groundwork for what”s to come.

Step 2: Second Mailing

Exactly two days after we send our generic postcard, we send a hand addressed letter with a hand written return address. In this letter we explain that we know the media says their home will never sell, but we can sell it. We include a printout with market statistics and a resume describing our team and the success we”ve had in their area.

This three piece mailing usually arrives in the homeowners” mailboxes about 5 days after their home has been taken off of the market. This is generally enough time for the onslaught of real estate agent marketing they will receive to dissipate and allows our letter to stand out. But we”re not done yet!

Step 3: Third time is the charm

Exactly one week after our second mailing, we send a third, jumbo sized postcard to the homeowners. The front of this mailing exclaims in giant, bold type “We”re Not Going Away Until We Sell Your Home.” On the back, we explain that while other agents have already given up on them, we won”t give up until their house is sold.

By the time the homeowners receive this mailing, they have stopped receiving other real estate postcard marketing materials. At this point, our marketing stands out and it”s the third time in a week that the homeowners have seen our materials. It works like a charm!

Paying For Postcard Marketing to Expired Listings

At this point, you may be thinking that our system sounds more expensive than your current program – three times more expensive to be exact. It is, but with the success we”ve seen with this approach, we”ve been able to cut down on our other real estate postcard marketing.

Instead of blanketing a neighborhood with hundreds of real estate postcards, we have significantly reduced our farming and expanded our expired marketing. The number of postcards we send out has decreased, but our return on investment has spiked.

In addition, we are always keeping our eyes open for discounts and coupons for online printers so we can further reduce our costs and increase our revenue.

I hope this article will help you with your postcard marketing to expired listings. I”d love to hear your results and how you alter my program to beat your competition.

Good luck!

About The Author

My Real Estate team closes well over 100 transactions a year. We keep a review site up to date to help other real estate agents make informed decisions on their vendors and suppliers. You can read our Real Estate Agent Deals and Reviews here: http://realestate.reviewsanddeals.com

By Kari Shea

Are you interested in buying an REO (real estate owned) home at a steal of a price? Great values are abundant in today”s housing market, but be sure you know what you are getting into with REO properties. Here”s the skinny on what it means when a property is listed in “As Is” condition.

What is an REO property, you ask? An REO property stand for “real estate owned” by the mortgage holder and is a home that goes back to its mortgage company after an unsuccessful auction. Because of the large number of foreclosed houses on the market, some foreclosure auctions do not get a single successful bid. When this happens, the bank or mortgage company gets the house back. It is called an REO property.

In order to bid at a foreclosure auction, bidders must be ready to pay full purchase price for the property with a cashier”s check in hand. The bank often wants to recoup legal fees, lost interest and other monetary amounts that make the price of the home more than it is really worth. Therefore, many foreclosure auctions end up without a sale and with the bank acquiring the home back as an REO property.

So, what happens to the property in the meantime? Well, that”s often a loaded question. Many times, banks sell their REO homes in “As Is” condition to keep liability for damages to the property at bay. Most banks will at least provide a Section 1 pest certification if you negotiate it as a part your offer, but you must ask for it specifically. You are also free to get any inspections you wish on the home at your own expense.

It is likely that the bank will not agree to do any repairs to the property. One of the most important things to attempt to negotiate into your offer is an inspection contingency period. This allows you the legal right to terminate the offer if you find major problems with the home that the bank refuses to correct.

Here”s another tip for dealing with “As Is” properties. Even though the bank lists an REO home for sale in “As Is” condition, they are sometimes willing to make repairs or offer you a credit to make them yourself after the results from your home inspections are received. Rather than wait longer for the home to sell, they may just work with you on the purchase price.

Keep in mind, though, that some banks will not finance REO properties. Especially if the home is badly damaged or in “As Is” condition, you may have a tough time finding financing. Shop around and prequalify for a loan before you get your heart set on a property.

If you live in the San Diego area, or anywhere else in California for that matter, keep in mind that banks are exempt from the California Seller”s Transfer Disclosure Statement. Beware of this legal fact: they do not have to tell you what”s wrong with the REO property you are interested in purchasing. Finding out what condition it is in is your responsibility.

Know that when you hand over the check, the house is immediately and officially yours. If the idea of purchasing an REO property is enticing to you, it is important to know your legal rights. If you need help, find an experienced real estate agent for advice. They will guide you to the perfect house for you and your family, whether it is bank owned or a traditional property for sale.

About The Author

Kari Shea is a real estate professional with http://www.shea-realestate.com {Shea Real Estate & Investment Group}. Learn more about her San Diego, CA services at: http://www.shea-realestate.com {www.shea-realestate.com}

By Lawrence Roberts

Many people did not see the NASDAQ tech-stock bubble. Many people did not see the great housing bubble either. Those who participated in either financial mania lost a great deal of money. People need to know what to look for in order to avoid future financial manias.

A financial bubble is a temporary situation where asset prices become elevated beyond any realistic fundamental valuations because the general public believes current pricing is justified by probable future price increases. If this belief is widespread enough to cause significant numbers of people to purchase the asset at inflated prices, then prices will continue to rise. This will convince even more people that prices will continue to rise. This facilitates even more buying. Once initiated, this reaction is self-sustaining, and the phenomenon is entirely psychological.

When the pool of buyers is exhausted and the volume of buying declines, prices stop rising; the belief in future price increases diminishes. When the remaining potential buyers no longer believe in future price increases, the primary motivating factor to purchase is eliminated; prices fall.

The temporary rise and fall of asset prices is the defining characteristic of a bubble.

The bubble mentality is summed up in three typical beliefs:

* The expectation of future price increases.
* The belief that prices cannot fall.
* The worry that failure to buy now will result in permanent inability to obtain the asset.

The most recent asset bubble in the United States was in residential real estate. The housing bubble was characterized by the acceptance of the above fallacious beliefs by the general public, and the exploitation of these beliefs by the entire real estate industrial complex, particularly the sales mechanism of the National Association of Realtors.

The mantra of the National Association of Realtors is “real estate only goes up.” This economic fallacy fosters the belief in future price increases and the limited risk of buying real estate. In 2006, prices in many markets began to fall. By 2008, the rate of price decline had greatly accelerated. This is dramatic proof that real estate does not always go up. Despite this obvious fact, the National Association of Realtors still tries to lure greedy buyers with fantasies of unlimited wealth in residential real estate.

Buyers are already prone to believe the fallacies of unlimited riches in real estate, and these fallacious beliefs lead to housing bubbles. Realtors should be prevented from making representations concerning the investment potential of real estate. Since the regulatory framework for this kind of regulation and oversight is already in place under the auspices of the Securities and Exchange Commission, Congress would merely need to make Realtors subject to these regulations in order to solve the problem.

It is imperative to identify asset bubbles because people that invest in them almost always lose money; sometimes, they lose a great deal of it.

About The Author

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/

By Anjitha Sakthidharan

Analysts are of the opinion that millions of homeowners in the UK will not benefit from any future cuts in interest rates. This is because the reduction of the Bank of England base rate on November 7 2008 to 3% allows lenders to use sub-clauses to block the benefits reaching the tracker mortgage clients.

Therefore mortgage experts believe that the borrowers with some of Britains biggest lenders including Nationwide and Halifax will not benefit from the cut bringing the banks under the scanner for not passing on the full benefit of the base rate cut to the customers. Forecasters are now saying the base rate could fall to as low as 1.5% or even 1% in 2009 as a drastic step to rejuvenate the economy.

It is feared that the customers wont benefit from the mortgage rate cut because the banks have fixed themselves limit to the extent of cuts they can pass on to the customers. For example the Nation-wide banks limit is automatically triggered when the base rate falls to 2.75%. On the other hand the Halifax limit is set at 3%. Three smaller lenders Skipton Building society Yorkshire Building society and its subsidiary Accord also have limits at 3% base rates. Analysts point out that many customers with the Chesham; Earl Shilton and Darlington building societies have already been affected by the inbuilt limits.

Similarly several other major banks such as the HSBC have certain terms and conditions that give them the discretion to stop slashing tracker rates if there is a material change in the mortgage market. Hence a large number of customers are disturbed by the slow reaction to base rate cuts even though the government has pumped GBP37bn into these banks to bail them out.

It is widely felt that although banks have the right to take care of themselves against losses they cannot ignore the interest of the customers especially when the government is extending the banks a rescue package with tax payers money. The limits and clauses set by the banks at the time of lending out loans are mentioned in fine prints often escaping the attention of the customers at the time of signing. Such oversights have now proven costly to the customers. This is a warning for them to study the contract carefully before signing especially when they are looking new mortgages in future.

The widespread protests have come to the notice of the banks and many of them such as the Halifax and other banks have issued statements that they are yet to take a decision whether to enforce the fine print term of putting a limit to the rate cut. What ever may be their decision they cannot ignore the fact that the government is helping them with tax payers money and hence they have a responsibility to pass on some benefits to their customers despite hidden clauses.

Hence it is expected that the banks will refrain from imposing the limits and pass on the benefits of the tracker base rate cut to the customers in accordance with the future trends.

About The Author

Anjitha is a financial adviser and well known for his finance related articles . You can find more financial articles written by the author by visiting the following link .

http://www.thefinanceworld.co.uk/tips-to-understand-commercial-mortgage.html

By Andrew Stratton

If you”re looking for a great real estate deal, either residential or commercial, there is no better time than now to start shopping. Realtors and sellers are eager to make deals and unload property quickly, which means that you”ll get a better value for your dollar. Now is the time to take advantage of the sluggish sellera”s market and snap up some choice real estate.

Although you”ll have plenty of options when selecting a property, there are a few important things you should consider to help you narrow down your decision. Follow these basic tips to ensure that you get the best deal possible.

1. Appreciation
Whether you”re planning on a quick turnaround sale or passing down your new home through the generations, you”ll want to consider the potential appreciation of the real estate. Restoring and reselling homes is considerably more difficult in the current market, but holding on to a property for ten to twenty years can become a sound investment.

You can gauge future value by choosing a prime location and doing some research into future price trends in the surrounding area. This will help you determine whether it will give you a good return on investment.

2. Property Condition
Many home buyers prefer move-in ready property. While this is often hassle-free, it doesn”t always make the best deal. Real estate that requires some elbow grease can mean greater value and profit in the long-term, if you”re prepared to do the work and have some experience.

Houses that require extensive renovations can often be negotiated for much lower prices. In ideal situations, the buyer can then restore the property for less than they saved, which means instant profit and a future higher selling rate.

If you don”t have the time, ability, or experience to renovate, it might behoove you to choose real estate that is already in good condition. Even highly skilled home renovators can lose money on projects that require work.

3. Inspection
One of the most important (and too often tragically overlooked) steps in buying real estate is the inspection. Having a thorough inspection can prevent you from making a huge mistake.

If there are problems found, even minor ones, it can give you some leverage for further negotiations, especially if the seller is highly motivated. Always use property inspections to your advantage in getting the best price.

4. Cash Flow
If you”re buying a property to rent out to other tenants, you”ll have to take into consideration your monthly income compared to your own mortgage. A more expensive property does not necessarily mean greater profit.

You”ll have to evaluate the local market and the kind of demand you foresee for the kind of real estate you”re offering. You also must take into account maintenance fees and permits if you”re buying commercial property.

Great deals aren”t found as much as they are created. If you”re not a real estate mogul or are making your first home purchase, it”s a wise decision to employ the assistance of a realtor. They can help you negotiate and offer expert advice on what to take a second look at and what to avoid.

About The Author

New Orleans is now a buyer”s market and investing in property here is an excellent investment. Before you decide on a New Orleans real estate investment, contact an experienced realtor at http://www.realestatelouisiana.com/ to help you get the best price for your property.

By Kevin Kiene

Real estate is cheap! It”s time to buy! Oh wait… the economy”s a disaster, and you don”t have any extra money for a glass of wine with dinner, much less buying a rental property as an investment.

So what”s the answer? Why, buying without a lot of money, of course. Here are three methods that might help you become a real estate investor, taking advantage of the monumental drop in prices.

Idea 1: Cash Out Equity from Your Residence to Reinvest

This option is clearly not available to everyone, as some people may not own their residence, or may not have any equity left in it. But before we go any further, let”s define equity, for those new to the idea of real estate investing: equity refers to the difference between how much a house is worth and how much is owed against it. For example, if your property is worth $100,000, and you owe $65,000, your equity is $35,000.

This equity can be converted into cash by taking out a second mortgage or a home equity line of credit (HELOC), and used to buy an investment property. HELOCs are generally a better option, as they”re more flexible and often don”t require the borrower to pay closing costs (they are effectively a revolving line of credit, like a credit card, that”s secured against your house).

Look into cashing out some equity, if possible, to start building your real estate empire, and if it”s not possible…

Idea 2: Negotiate for a Seller-Held Second Mortgage

In case word hasn”t reached you, there are thousands of desperate sellers in this country, who will go to great lengths to sell their homes. This puts you in an excellent negotiating position, allowing you to demand them to hold a note for your down payment (in effect leaving you with 100% financing, and only responsible for closing costs).

Alternatively, you can ask for a seller concession, which is a fancy term for cash back in the real estate world. Be patient, and push hard on these two points, because sooner or later you”ll find a seller who, in their desperation, will agree to one or both in order to sell their house.

Idea 3: Find a Grant

You”d be amazed at the enormous number of grants out there to help people buy real estate, whether for a primary residence or an investment property. That said, no one”s advertising free money on the radio, so you have to dig a little bit to find these grants. A good place to start looking is with your local municipal government; ask about grants to improve impoverished neighborhoods, or grants for minority- or women-owned businesses. Also check online, as there are thousands of grants hidden in the bowels of the world wide web, available to those with the patience and skill to find them. Non-profits, federal or state government initiatives, community outreach; they”re out there, so dig deep, and prosper.
It is a sad misconception that only the rich own rental properties. Anyone can become a real estate investor and build an empire of rental units, using the equity from the last project to finance the next. We live in a buyer”s world, for the moment, so stop swimming upstream by trying to sell, and start buying!

About The Author

Get more tips from Kevin Kiene, at his on-line resource for Landlords, http://www.ezLandlordForms. There is an online database of real estate investing articles, along with many free real estate forms.

By Constantine Lekendiros

All is not lost when it comes to protecting yourself from foreclosure. Here are the steps that you need to follow to protect yourself from the foreclosure process. Keep in mind that once your lender has expressed his or her plans to foreclose on your home, your time is extremely limited. This is a fast moving process, and because time is of the essence, you have to act fast if you want to succeed.

1 – For starters, do not ignore the problem. As you become further and further behind in your finances, the more difficult it will become for you to reinstate your mortgage loan. The harder it becomes to reinstate your mortgage loan, the more easily your lender will find it to take your home from you.

2 – Contact your lender as soon as you know that there is a problem. Nothing dictates that you have to wait until your lender plans to foreclose. In reality, lenders do not want your home; they would rather you simply paid your mortgage on time so that they can be paid back for their investment. Because of this, most lenders offer options to help borrowers through a number of different financial difficulties.

3 – Keep in touch with your lender in every step of the process. Open and respond to any and all mail from your lender, because the first notices that you receive will offer a lot of vital information regarding the foreclosure prevention process. By failing to keep in touch and to open the mail that your lender sends simply will not be a good enough excuse when you finally end up in foreclosure court.

4 – Know your rights and your options when it comes to foreclosure. You can find a lot of valuable information relating to foreclosure prevention or loss mitigation online. Make sure that you know your rights, as informed decision making is the best way to prepare yourself for this challenging process.

5 – Use your assets to the best of your ability. Do you have assets like jewelry, a second vehicle, a whole life insurance policy, or other types of assets that you can use to sell for cash? Selling items that you can bear to part with will allow you to reinstate your loan. Using your assets to the best of your ability can have a huge impact on your ability to repay your mortgage and to save your home.

6 – Avoid companies that charge money to do what you can do yourself. You should never have to pay exorbitant fees for help with foreclosure prevention. Use that money to pay your mortgage off instead. For profit companies will contact you with a variety of wild claims regarding negotiating with your lender, but they are doing this hoping that you do not realize that you can negotiate with your lender all on your own without their help and overpriced services.

About The Author

For more tips and great advice on how to avoid foreclosure you should go online. Learn how to avoid foreclosure at:

http://theforeclosureescape.com/

By Ashley Lawrence

So you”re the one who bought that sunny beach property in the Algarve? Is it your best investment property? Or have you made a complete mess of buying investment real estate because you didn”t know what you are doing? Cheap property is the only property to buy if you are thinking of becoming a serious property investor.

If you don”t know how to buy investment properties, then the main goal of this article is to enlighten you. If you don”t know where the best place to buy cheap property, then this article is also here to enlighten you.

When we talk about the best place to buy cheap property, we are talking about the locations, whether in your local town, your own country or if you want to buy abroad. We are also talking about the real estate world, who is best placed to find you that discounted property. Is it the realtor or estate agent, an auctioneer, your neighbour, a property investment professional or even your bank manager?

You see as a professional property investor, you will have you eyes open for the best available deals on the market. You don”t rest on your laurels, you are constantly searching the market for that piece of commercial investment that once modernised and sold will turn you a great profit because you bought it at the right price, or that residential property investment which will see your rental real estate portfolio increase it”s overall ROI.

To be a successful property investor, you must buy cheap properties and either sell them on or keep them as rental units. Now the trick is how do you know when a property is cheap, as opposed to when it”s actually at market price? You ”read the market”, that is how. Check with your local realtor, and look around in the local vicinity, you will be able to gage the market price of similar property in the area surrounding your investment find. Reading the market does not only mean looking at the price of a similar property, you also need to have a good understanding of the type of people who are living, working or operating businesses in that local area. Why cars do they drive, are there good schools, is it close to other amenities such as a train or bus station nearby.

Why do you need to know these things as an investor? The reason is that you need to know how much your investment may be worth in the future, once you have completed any remedial work that needs to be done. Without knowing this, your cheap property may turn out to be a bad buy, because the amount of remedial work that is to be done, and the cost of the same, may bring the property over the threshold or ceiling price of the neighborhood and as such would be you will never recoup your investment.

Let”s look at things from a residential point of view. Buying investment property means you buy houses because you want to renovate and sell on or use as a rental investment. A rental investment means the property will be rented to a tenant and you make money on the difference between his rent payments and any payments from a mortgage that may be secured on the property.

How might you the residential property investor go about securing that investment? Some people create property investment strategies. These are plans for how they go about finding, buying and gaining a return on their investment in real estate. Property investment strategies may take many forms, but as an investor, you will need to form an investment strategy that best suits your individual circumstances.

For example, one of the simplest decisions you can make is whether you are going to be a buy to let landlord, or whether you are simply a property developer who either builds or renovates pre-built homes to sell on in the marketplace at the best price possible. You may of course use both these property investment stratagem, to great advantage when suits to enhance your real estate portfolio.

If you are a seasoned property investor, then perhaps you use more riskier strategies to determine your investment. One way to obtain cheap property is to buy off plan. Off plan property investment is popular in parts of Europe, but just as many property developers locally offer off plan property. In a subdivision near you, a developer who is building new condo”s will want as many of the units as possible pre-sold prior to their completion. This is where deals are struck and huge discounts can be obtained, sometimes up to 30-40% discounted.

In conclusion, these are the things you want to remember when buying an investment property.
Successful property investment is about finding cheap property and selling it at a high mark up once any remedial work has been done. Successful property investors know the market in which they hope to by investment property. Successful property investors mainly either look for buy to let properties or investment property to renovate and sell on at profit
investment in real estate may occur in your local or in overseas markets, the cheapest property could be found in both or either. Knowing the local market will help to determine whether you have managed to secure a cheap property or whether you are going to lose your investment on the deal. Knowing the local market can help you achieve the lowest and best price on a property deal. There are many ways to obtain discount property, buying off plan property is just one of many property investment strategies. Whether you are a commercial or residential property buyer, you need a strategy to help determine your buying decisions. If you want cheap property to buy, you need to keep your eyes and ears open for opportunities that may arise at any given moment

We hope that this article has been useful to you, if you want to know more about buying cheap property or property investment on a professional level, there are many information products available online that will go into depth on each of the summary points listed above. Find out from those who have done it before. Cheap property is out there, especially at this time when so many people are finding it challenging to keep hold of their homes. There are ways that you as a propety investor can help people to stay in their homes and still profit from the investment in real estate.

Good luck in all your ventures.

About The Author

Ashley Lawrence writes about investment property and offers property finder services to property buyers who want to purchase investment property in the UK via their website http://ashleylawrence.com

By Art Gib

The vast majority of individuals buying real estate will have to do so using a mortgage. For most people, a mortgage will be the largest loan that they ever take on, and it”s important to understand all facets of a mortgage long before you sign your name on the dotted line.

A mortgage is a serious business partnership between you and your chosen lending institution to finance the home while you pay the outstanding funds back. Mortgages come in all different shapes, sizes and interest rates, so make sure you”re informed of all of the different types before you sit down to negotiate with your lending institution to buy your Alabama real estate.

The first type of mortgage and arguably the most popular and traditional is a Fixed Rate Mortgage. Fixed Rate Mortgages charges you a certain percentage of interest in exchange for putting up the funds to purchase the property.

Available in different terms such as ten year, fifteen year, twenty year and so on, Fixed Rate Mortgages are a good choice for those individuals who expect to stay in their property for an extended period of time and prefer the stability of a traditional mortgage.

Interest Only Mortgages are exactly how they sound. Rather than paying on both the principal and the interest incurred on the mortgage, homeowners only pay the interest on the loan. This effectively means the loan is never fully paid off, it can be a valuable tool for those buying a property as an investment, or a property that they plan on selling fairly soon after the purchase.

ARM Mortgages are Adjustable Rates. This means that the interest rate for the mortgage will fluctuate with economy and the interest rate index. This means sometimes the interest rate and therefore payment could be much lower than others, but beware of those times that the interest rate goes higher, as you will be responsible for paying the loan back at whatever the current interest rate is, whether that is 6% or 15%.

Balloon Mortgages are unique because they have a set payment per month during the term of the loan, which may be lower than most conventional mortgage payments. However, at the end of the mortgage term, a balloon payment for the entire remaining balance is required to satisfy the loan.

The end of the term may be when your agreement ends, or when you plan to sell your Alabama real estate, so it pays to be aware of your balloon payment amount.

About The Author

RE/MAX of Alabama (http://www.remax-alabama.com) is a real estate brokerage that specializes in Alabama real estate. Art Gib is a freelance writer.