วันอาทิตย์ที่ 31 สิงหาคม พ.ศ. 2551

Miami: The Hollow City

A recent European immigrant I know expressed how happy he was in discovering a 9th floor, three-bedroom, 1.5 bath condo in Miami for $500,000.00. After my head stopped shaking and my eyes stopped blinking uncontrollably, I had to wonder if I had been living here too long. No matter how many times you say 500 thousand dollars, it still sounds like half-a-million dollars to me. Maybe where he's from, that's a good deal, but from where I come from, that's a whole lot of money for way too little-- no matter how great this town is. Thanks to the recent Miami Herald article The Price of Paradise, I'm reminded that property taxes on that much money will easily set you back $12,000.00 a year or $230 a week. Add that to your mortgage and insurance costs plus your car payment and it's insurance, and, suddenly, Miami is becoming a city where only the wealthy can afford to live. Like the article suggests, Miami may become a stratified community, where the rich live well, the poor get by, and the middle class get out.

Still, the downtown condos are selling. Downtown Miami is undergoing a building boom that rivals Beijing. I suspect, however, that many of the Miami condos have been bought on speculation with the hopes of making a quick profit on the investment. A small percentage may actually be retirement or second homes for the wealthy but most are beyond affordable for the middle class. Doctors, lawyers, and Indian Chiefs who own casinos might be able to live there, but where will everyone else live? In 2001, the average Miami home cost $158,000.00. Today, the median is $378,000.00. Yikes! No wonder it is nearly impossible to recruit new teachers. They can't find affordable housing in the county and, with the rising costs of gasoline, commuting from the next county is looking like a thing of the past.

With an estimated 40,000 condo units planned for downtown alone, I suspect Miami is becoming The Hollow City, nothing more than a pretty facade for movies with empty rooms overlooking one of the most beautiful places on earth.

D.C. Copeland is a writer and award-winning artist. When visiting Copeland's personal website and blog http://www.miamivisionblogarama.blogspot.com/, you will discover that Wayne Cochran is the Patron Saint and that many people consider it to be The Rodney Dangerfield of Blogs.

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วันเสาร์ที่ 30 สิงหาคม พ.ศ. 2551

China's Incredible Real Property Appreciation

Readers who routinely follow my articles on Real Estate Economics are fully aware of my position on real estate bubbles in North America.

A real estate bubble occurs when prices of real capital assets become so absurdly high that consumers either refuse or cannot afford to purchase, thus sending demand tumbling down. This has not happened in North America's real estate markets, where we have assisted at either a slowdown in property appreciation or a depreciation of values in line with the Fed's forecast of late 2005 and the beginning of the year, as well as with those of many economic analysts - including myself. This is the reason why this time around I wanted to give an example of a true real estate bubble.

As reported by the official Xinhua News Agency, there is a growing concern among top officials of the People's Republic of China that surging prices in major cities threaten to create economic overheating and serious social unrest. This has prompted a new crackdown by the Chinese leadership on property speculation. The National Development and Reform Commission (NDRC), the state planning agency, in fact reports that in North-eastern Dalian in the first three months of this year prices for new properties jumped 15 percent from a year earlier, and that prices in the Southern boomtown of Shenzhen gained 10 percent in the same period. While in Beijing, says the NDRC, prices were up 17 percent amid euphoria over the forthcoming 2008 Olympics in the Chinese capital.

But before you hop on to the first flight for Beijing, read this. Chinese economists say that owning an apartment is now an unrealistic dream for large numbers of urban residents who are falling further behind as home prices surge. The core of the problem appears to be the disparity between prices of real capital assets and wages. More specifically, the average apartment in the city costs 13 times the annual average salary.

Now, that's what I call a real estate bubble!

The main reason for this huge levitation of prices is speculation. Speculation is one of the many forces that act on capital at any given time. In theoretical Economics, speculation is defined as ?the acquisition of financial or capital assets made solely to quickly profit from fluctuations in their prices, or of goods or commodities with no real intent to consume or otherwise use them for production'. Basically what many Chinese speculators are doing is flipping apartments, even before they are built. NDRC reports that many developers have gone even as far as creating independent companies that they themselves control, the sole purpose of which is to buy the apartments the developers are in the process of building and then resell them with a markup, thus inflating prices.

Property is a big driver of Chinese economic growth, and runaway investment in the real estate sector has contributed to signs of a broader overheating. The economy grew by a red-hot 10.2 percent (annualized) in the first quarter of the year from a year earlier, when it grew to the tune of 8 percent per year. Concern about too-rapid growth has prompted the government to raise bank lending rates by 0.27 percentage points last month to discourage borrowing and reduce investment. Officials fear that overheating could lead to a sudden economic crash. Additional measures are in the wings, including hefty increases in property taxes, again to take aim at property developers who hoard land and buildings, a practice that creates artificial shortages and drives up prices

Scarier still is the social unrest that the leadership fears if the economy does not slow down to more manageable levels. This is due to a growing imbalance of wealth rampant in China's population of 1.3 billion people, wherein thirty-five percent of the population lives in the cities and sixty-five percent inhabits the countryside. There is a system of residence controls, so that if one is lucky enough to be born in a city - and registered as a city dweller - it is easier to get into university or to work at all the large companies and government agencies in the city. If, conversely, one is registered as a rural person there are very severe restrictions on where he can live and work. And this is actually the biggest human rights problem in China today. The majority of this population of 1.3 billion people consists, by law, of second-class citizens who live for the most part in conditions of abject poverty, in rural huts many of which do not even have running water. One can imagine how these people feel when they look at the way their urban counterparts live.

The economic ripples and effects that a speculation in grand style such as this have on market wealth are indeed humongous. Market wealth is defined as ?the combination of materials, labour, land, services and technology in such a way as to capture a profit' (Adam Smith). The aftershocks of a bubble of this size that bursts are usually terminal and irreversible: market wealth disappears, it vanishes entirely. And it takes forever to re-build it, right from scratch. Here in the West, the greatest example in recent times is the infamous Black Monday - October 19, 1987 - when the Dow Jones collapsed 22.6 percent in value in a single day! It took nine years for Wall Street to lure investors back.

But then, how much is too much? Well, consider this: at the top end of the market, even the smallest apartment in a building next to Citigroup's skyscraper on Shanghai's waterfront is stunningly expensive. Complete with all-copper doors and Swarovski crystal lights it costs about USD 2 million or USD 1,670 per square foot - and no fireplace.

Luigi Frascati

Luigi Frascati is a Real Estate Agent based in Vancouver, British Columbia. He holds a Bachelor Degree in Economics and maintains a weblog entitled the Real Estate Chronicle at http://wwwrealestatechronicle.blogspot.com where you can find the full collection of his articles on Real Estate Economics and Finance. Luigi is associated with the Sutton Group, the largest real estate organization in Canada, and is based with Sutton-Centre Realty in Burnaby, BC.

Luigi is very proud to be an EzineArticles Platinum Expert Author. Your rating at the footer of this Article is very much appreciated. Thank you.

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Anonymous Holding of Real Estate Boats and Planes

Panama allows for the use of an anonymous bearer share corporation to own real estate, boats or planes. The person who has the physical possession of the stock certificates of the corporation is the one who controls the disposition of the asset be it real estate, a plane or a boat. There is no registry to look up who owns the bearer share company. Ownership is anonymous. There is also no requirement to report sales or transfers of the bearer share stock, so no one knows who the new owners are, possibly not even the old owner if the sale was to another bearer share corporation or Panama Foundation which is also anonymous. Let us take a hypothetical example:

An investor from outside of Panama wishes to acquire some real estate as an investment and wishes to derive rental income from it all done anonymously to secure the investment away from the reaches of potential financial enemies. A trip to Panama is made to inspect various properties for investment. After a property is isolated an offer needs to be made. So an anonymous corporation is formed to make the offer. Remember no one knows who owns this anonymous corporation. The owner never appears in any registry. This is not to say that a court order is needed, it is to say that there are no records to get a court order for. So now the attorney representing the client submits an offer on the property in the name of the anonymous corporation.

This is a common practice in Panama. Now the offer is accepted. So the client wires the funds to the lawyer representing him/her, the lawyer puts the funds into the escrow and the purchase is made with title going to the anonymous corporation. When the property is sold the stock certificates from the corporation are transferred to the new owner thus avoiding tax of 10% on the profit realized from the real estate transaction. The lawyer can obtain the services of a real estate broker to rent the property and sign a lease on behalf of your corporation. The lawyer can collect the rental income in their bank account and forward it to you or do with the funds as you so direct. This is a relatively solid asset protection scenario. To add another layer to the structure (normally not needed because no one knows who owns the corporation) one has a foundation own the corporation that owns the real estate. The personal debts do not transfer to the foundation if the debt was not in place at the time the foundation received the assets in question from the person.

So if you legally owe people money today and transfer money, real estate etc to a foundation next week the debt could follow the asset. If you tried to collect this in Panama and the debt was from another country the expense, time delay, chances of success collecting on a civil judgment concerning matters outside of Panama, etc would probably not warrant the collection action but the exposure would still be there but only for three years from the date of the transfer since Panama has a statue of limitations on these transfers to defraud creditors. If the court case took longer than three years which it probably would that could possibly be the end of it as well. So if the lawful collectible debt was not in place at the time of the transfer to the foundation the asset would be immune from court ordered collection. If it is starting to sound like it couldn't be better even if you wrote the laws, you are getting the idea.

The same scenario can essentially be used to acquire boats, planes, art, jewelry and other collectibles.

For more information go to: http://www.panamalaw.org

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วันศุกร์ที่ 29 สิงหาคม พ.ศ. 2551

What's Hot in Houses Today

Home Styles

Old world styles are popular. French, English, Tuscan and Spanish homes with stone or stucco walls, tile roofs, iron fixtures, heavy beams and rustic floors are in demand. A sense of historic connection resonates with buyers today.

The Craftsman style, built in the early 1900's, is back. Features of this style, such as cobblestones, deep eaves, tapered columns and wide trim, favor the handmade look over mass produced.

Farmhouses and country homes are perfect remodel candidates and prototypes for new homes. Native materials, wood windows, simple floor plans, and warm colors connect with nature and earlier times.

The retro look is fashionable. Ranch styles and split levels built in the 1950's are perfect for sleek remodels, and fit with fashionable furniture styles.

Urban modern is everywhere. Modern open plans make use of color, tile, glass, and experimental materials such as plastic and metal.

Floor Plan

The preferred ceiling height is 9'-11'. Two story ceilings are out. In small rooms these feel like towers.

Lots of floor level changes are not desirable.

Most buyers today want four bedrooms, and at least two living areas. Formal dining rooms are still in demand.

Formal living rooms are often converted to studies, libraries, or guest rooms.

Media rooms are a sought after feature when price range allows.

The visual and spatial connection between kitchen and family room is firmly established.

Cabinet space is required for large televisions and wall space for the newer flat screens.

Three car garages are needed, especially in areas without basements.

Structured wiring is important today for internet, phone, cable and sound. Desk space for computers is required.

Good access to the outdoors is something buyers look for. French doors combine access with light. Sliding glass doors are not as favored.

Lots of storage is needed for today's lifestyle. People have lots of stuff. Huge master closets, pantries, laundry rooms, and extra storage closets are expected.

On the other hand, very spare lofts are perfect for some lifestyles. Simplified spaces are an antidote to today's complex lifestyle.

Kitchens/Baths

Most buyers are savvy about kitchen design and appreciate good work spaces with easy access to range, refrigerator and sink. Lots of counter space, deep drawers, two sinks, nearby extra refrigerator, and butler's pantries are all desirable features.

Stainless appliances are going strong. In urban modern styles, white or colored appliances are back. High end homes conceal some appliances as cabinetry.

Eat-in kitchens are a basic requirement for most buyers.

Antique tables or cabinets are being refurbished and used as bath cabinets. Kitchen cabinets that look like furniture are a great look.

Granite, marble or stone counters are popular. However, granite tops added to 1980's cabinets do not go over well. Consider your architectural style before adding features.

Concrete countertops are perfect for ultra modern, but most buyers shy away from them.

Wide, cabinet depth refrigerators have a built-in look, and are not as expensive as the true built-in type.

Large rustic tiles, stone, concrete or wood floors have a warm, functional appeal.

Subway tile (3 x 6) is popular in bathrooms and on kitchen backsplashes.

Patterned cultured marble and laminate are out. Slippery, white floor tile is out.

Trim

Wide, baseboards (6+) and door and window trim (4+) are key features in old European and American styles.

Craftsman style doors - simple square frames with flat panels - work well with both old and modern looks.

Iron or heavy wood entry doors make strong statements that buyers love.

Rustic finishes on hardware, such as brushed nickel, oil rubbed bronze, weathered brass, and other non-shiny finishes are the popular choices.

Rustic wood beams or wood covered ceilings create a hand crafted, primitive look that buyers like.

Wrought iron gates, stair rails and light fixtures compliment the rustic style.

Stair rails in ultra modern homes may be wire, pipe or painted metal.

Front porches and covered patios are always a strong selling point. Outdoor fireplaces are popping up everywhere.

Floors & Walls

Distressed wood floors that look old are valued. Simple wood boards are sometimes laid down with cracks exposed. Re-claimed wood is very desirable.

Bamboo floors are popular, especially in modern style homes where light colored floors are desired.

Concrete floors - often stained and scored are popular. These go well with the modern look, and are used in Craftsman and rustic European styles too.

Colorful laminate floors are a good fit with mid-century modern. Laminate floors that looks like wood are out. Parquet floors are out, unless hand crafted.

Framed or hung mirrors are preferred, although plate glass works in ultra modern styles. Mirrors used on walls or ceilings are a turn off.

Colors are in, but soft is the word. Soft greens, yellows, earth tones and creams create a serene background that fits many styles. Complex colors, with more colors in the mix, are sought after. Deeply saturated colors, such as plums and reds, are used in moderation.

Flat paint on walls hides flaws and creates a designer look. Shiny is out. Soft whites are safe for trim.

Faux finishes are out. Often these do not turn out as well as expected, and are difficult to maintain.

The same (or similar) wall color through adjoining spaces creates a more spacious feeling.

Historic paint colors such as sage greens, beiges, muted yellows, and grays work well on the exterior. Bold or harsh colors are a turn-off to most buyers.

Wallpaper is problematic and harder to change than paint. Very often it does not fit the buyer's taste.

Heavily textured walls and popcorn ceilings are totally out.

Lighting & Plumbing Fixtures

Buyers want more windows, natural light, and a greater connection with the outdoors.

People today are more discriminating about the quality of light. Windows on two sides of the room balance the lighting and reduce glare.

One light in the middle of the room will not do. Under cabinet task lighting is appreciated. Security lighting is important. Wall sconces offer soft ambient lighting. Recessed cans provide area light. Dimmers help to control the lighting.

Light fixtures are a decorative element in all styles. Clean, modern fixtures, such as pendant lights, recessed cans, and wire string lights compliment the urban look.

Retro fixtures are interesting decorative features in 1930's craftsman and 1950's ranch styles.

Industrial metal fixtures are in. The un-decorated, industrial look of metal or stainless steel is in.

Heavy drapes are out. They are too pretentious, and, well, heavy. Light cotton, linen or silk drapes are in. Or, wood blinds. Or nothing.

Retro woven wood blinds have made a comeback. Mini blinds are very yesterday.

Bath fixtures are finished in rustic bronze, nickel, or chrome. Old style two-handled faucets and farmhouse sinks are in style.

Bath sinks may be glass bowls, granite, stone, stainless or traditional china. Cultured marble is out.

Free standing tubs are in. Pedestal and wall hung lavatories are in.

Energy Efficiency

With fuel costs going up, energy efficiency is definitely in. Buyers want high efficiency AC, good insulation, low-e glass, programmable thermostats, double pane windows, and ceiling fans.

Effective passive solar orientation is a great advantage. It shows a smart planning and use

of natural solar energy.

Instant hot water is a perk that buyers like, as are drinking water filters.

No one wants foil on windows or stick-on window film.

Light is in demand. Don't close blinds. Do remove solar screens when they are not needed, such as under patio roofs, porches or shade trees.

Screened porches are back. They create a multi purpose space that is both indoors and outdoors, and keep mosquitoes away.

Roselind Hejl is a Realtor with Coldwell Banker United in Austin, Texas. Her website - http://www.weloveaustin.com - offers homes for sale, market trends, buyer and seller guides. Let Roselind help you make your move to Austin. Austin Texas Real Estate Guide

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วันพฤหัสบดีที่ 28 สิงหาคม พ.ศ. 2551

Displacement of Family Farms Eminent Domain and Fair Market Values Discussed

When important infrastructure in our nation must be built to ensure economic vitality, proper distribution or the basic needs of our civilization we must also be cognizant of the Displacement of Family Farms, Fair Market Values and the reality of the importance of the project too. Taking family farms even if you pay fair market value often causes chaos and conflicts.

Look at the depression, manipulation of the stock markets set up to capitalize American business and artificial money controls costs millions of families their land in foreclosures. You see, I do not disagree that displacement of family farms must be considered and those families be kept whole. So be it. That is fair. It is only fair that we replace the land in an area with similar soil, water availability and add to the land acreage to sweeten the pot.

We must consider this when building the thing whatever it is. Lets say it is expansion of a Freeway or Highway, indeed then make the road as straight as possible using a computer and looking at terrain and structures, like routing software can do, that keeps it fair. Some folks might have a greater burden, have a sliding scale to fairly compensate them.

If eminent domain is done correctly and for the right reasons then indeed, Folks will be begging to put it thru on their chunk of land so they can get paid and sell at a fair or above fair price during a downturn in real-estate. The increase to our civilization will more than pay the costs in the efficiency, increase in jobs, better standard of living, lower prices and quality of life. Efficiency has a way of doing that. The longer we wait the worse the issue.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/

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วันพุธที่ 27 สิงหาคม พ.ศ. 2551

Financing Land Development: Little Known Secrets

There are alternatives to conventional bank financing for land development deals.

OPM, Others People's Money

But I know you've heard all that before, but there are little known secrets that Major Land Developers have been using for years which I want to share with you.

My clients are absolutely amazed when I share these secrets with them, they always respond so that's how they do it.

So why would a commercial financial broker want to share these secrets with you?

The reason is very simple, at the opening page of this site I told you I wanted to educate you, and so I am.

Also if you're able to implement some of these strategies, you're eventually going to need capital to build out your project.

And we'll be here to help you. There are three ways in which you can secure your land development deal without closing a conventional loan. The last way you must seek professional accounting and legal assistance, and will not be discussed here.

Work Directly with the Seller

Use Options to Control The Property

Arrange a 1031 Exchange

The above are three methods or ways to get a commitment to sell the property with little or no cash at time of opening an escrow.

Working directly with the Seller

By working directly with the seller you can help the seller solve many of their problems, and in return he becomes your partner in the land development transaction.

Sellers often believe that they can get a better price for their real estate if they carry the paper that evidences the debt themselves. Here are some of the reasons

Buyers may have qualification issues, and if that's the case you as a buyer may not be as concerned about the interest rate, price and terms and therefore the seller as the one assuming the risk will get a higher price and you get the deal that you were not bank qualified for.

The Seller will get greater after-tax profits.

By the seller carrying paper they will not be taxed on the amount of the sale, but their tax will be based on the installments paid over the years.

In other words a large capital gain may push them into a higher tax bracket, but if the sale is spread out over a period of years, the seller may not be pushed into a higher tax bracket.

Use Options to Control the Property

An option is an agreement specifying some future performance in exchange for a benefit.

Simply stated, give some money control the property!

You offer the owner a price for the option to buy the land. That price (the option premium) buys you the right to buy the land at an agreed upon price at a certain time in the future.

You can exercise the option by closing the sale at any time before the expiration date of the option. The seller must sell, when you are ready to buy, no matter how much the market value may have escalated during the holding period.

A more sophisticated approach is to acquire a rolling option for large land development transactions.

This is much more complex then a simple option agreement. Rolling option is utilized when there is a great deal of property that an individual needs to control. We usually see the use of rolling options in large master planned communities, where developers are planning to phase the development project into numerous phases with an absorption of the homes exceeding five years typically.

In a Rolling option the buyer controls the entire tract but only puts up the option for the first portion of the land, after each execution of the options, the buyer is able to take down more land, until the developer controls all the property of the original contract.

If you do not exercise your rolling options ass they come due, the entire contract is cancelled as to future property that is secured through the initial option agreement...and of course the seller retains the entire premium, and he can immediately offer the property to another buyer.

Benefit to the Buyer is that they can now plan an orderly development of the entire acreage, as well as knowing exactly what the land costs for the entire project are for the proforma and any Return on Investment calculations.

Benefit to the Seller is that the seller can get the price he wants for the property, and he knows that at the least he received a sizable option premium, and at the best he receives the price he wants for his land.

Harlan A. Friedman, Esq., is president of Lightning Commercial Funding Inc., a California mortgage broker. He has more than 25 years of experience as an investment banker and financial consultant, issuing municipal debt for his clients. Lightning Commercial Funding specializes in financing commercial projects exclusively, from the startup of new business to large commercial transactions. Reach Friedman at (858) 592-0659 or harlan@loanforbiz.com. Visit his company at http://www.loanforbiz.com.

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วันอังคารที่ 26 สิงหาคม พ.ศ. 2551

Housing Slow Down Means Buying Opportunities

It is fairly clear that the recent blazing hot real estate market has cooled off. If your local market is following this trend, buying opportunities may start to pop up.

Real estate is a funny game. What is good for one party is often bad for the other. In the case of the recent seller?s market, buyers were paying premiums for homes due to massive demand. Now that the market is cooling off, sellers are seeing prices flatten out or drop. While this is bad for sellers, it creates buying opportunities for the savvy buyer.

The recent blazing hot real estate market created a massive amount of wealth for many people. Whether you had owned a home for years or simple purchased three years or so ago, you may very well have doubled the value of your home. In such a case, you are sitting pretty regardless of what the market is doing now. What about people who purchased in the last year or so? Things may not be so rosy.

In the rush to get into the fast appreciating real estate market, many buyers in the last year paid top dollar for homes. To finance the homes, many of these buyers squeezed into unique loans that they can barely make the monthly payments on. As the market cools, many of these same people are finding their equity play has gone bad given the lack or even reduction of appreciation. To top matters off, they are suddenly seeing the interest rates on adjustable loans go up and up as the Federal Reserve raises interest rates to fight inflation. This double whammy is a disaster for such buyers and will further depress the market as more people look to sell out from under their debt.

As a buyer, the above situation presents you with a unique opportunity. While every local real estate market is different, more than a few will be hemorrhaging homes very soon. A classic example is the San Diego market, which has seen astronomical appreciation rates and new home growth. Nice tract homes have been selling for upwards of $800,000 in some parts of the city. As the market cools, people that financially squeezed into such homes are going to be looking to sell, sell, sell! Many will be selling at deflated prices or being foreclosed on. Indeed, the foreclosure market in many areas is going to be robust in the next few years.

While the slow down of the real estate market is not good for many homeowners, buyers should be in good shape. As the market swings to buyers, buying opportunities should be readily available.

Raynor James is with the site - FSBO America - FSBO homes for sale by owner.

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วันจันทร์ที่ 25 สิงหาคม พ.ศ. 2551

Understanding MelloRoos When Considering a Purchase

Part of the process of evaluating the decision to make an offer on a home in a newer development is understanding the costs. Mello-Roos are one issue that is popping up more and more.

Understanding Mello-Roos When Considering a Purchase

The process of real estate development has become a much more complex one in many parts of the country. The idea of buying some land and building a few homes is a bit na?ve these days. The larger the development, the more a real estate developer has to account for societal issues. These issues can range from everything to new roads, schools and noise pollution in the area. While the developer and relevant municipality will negotiate the financing on much of this, they tend to pass off much of the cost to people moving into the new development.

Mello-Roos are typically assessed by the municipality, city or state the new development is located in. They are often considered a special tax and are paid along with your property tax bill. This special tax is essentially a way for the government to both fund and maintain the public services required by the new population created by people moving into the area. As you know, the government tends to collect a lot of money in taxes, but doesn?t use it particularly efficiently. This is a way for them to counter the problem.

Mello-Roos are particularly nasty because they are considered a government tax issue. If you fail to pay your Mello-Roos, the delinquency can be turned into a tax lien on your property. Tax liens are truly nasty things, to wit, they essentially give the government the power to foreclose on your home and sell it. Your only option is to get caught up on the payment to avoid such a situation.

Mello-Roos are not the creation of the federal government. They are localized issues, so their amount and how they are handled are different in each state. Regardless, they can be thousands of dollars a year. You need to understand what you are on the hook for before buying into a new development, particularly if you are squeezing into the financing. Failure to do so could lead to a nasty surprise down the line.

Raynor James is with the site - FSBO America - FSBO homes for sale by owner.

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Condo Hotels: What Investors Need to Know

Condo Hotel projects are on the rise. From skyscraper hotels to luxury resorts, condo hotels dot the landscape of popular vacation destinations, such as Florida and Las Vegas. And big hitter personalities like George Clooney and Donald Trump, wanting to capitalize on its popularity, can?t wait to attach their name to a condo hotel project. Even Nicky Hilton is jumping into the condo hotel craze. Her boutique style condotel, befittingly named Nicky O, opens this November in Miami, and she has plans for another condotel in Chicago.

But because a star is successful, does that assure his/her hotel will be, too? Steven Roszell, owner and broker of CondoHotels.com and HotelsforSale.com, doesn?t quite think so. ?A big name on a project does not guarantee success,? says Roszell. ?Ivana Trump, George Clooney, Michael Jordan, and even the famed Hard Rock Las Vegas project are some of the most recent examples of scrapped projects.? Roszell cautions potential buyers not to invest in a condo hotel solely for its illustrious name. ?Big brands, such as Marriott, Hilton, and Four Seasons, and seasoned developers and management companies are a better indication of a project?s success. This is their business---they?ve been doing it for years,? Roszell adds.

The condo hotel?s location also does not predict its success. Orlando, the world?s top vacation destination, has reached its saturation point with condo hotels. ?It may come down to there is too much supply,? says Roszell. ?If investors buy with the intent of flipping the property to make a fast buck, the Orlando market may not be for them.? Roszell also adds, ?Investors anticipating a high rental income may need to rethink Orlando for the time being. There's potential for too much supply.

Roszell advises his clients to look at three factors when considering a condo hotel: location, growth, and future income. ?We tell investors that a condo hotel purchase is a lifestyle investment. Buy in locations where you want to vacation for the next 5 to 25 years.? Roszell also notes how condo hotels have become prevalent in major metropolitan cities, such as Boston, Chicago, and New York. ?There is a limited amount of prime location areas that can be built upon in these major cities, and in time it?ll be harder to get a room during peak season in those locations.?

Condo hotels or condotels are hotels that convert a portion of rooms into condominiums and make them available for purchase. Once a property is bought, owners may enjoy their new luxury condo and/or choose to rent it. Owners receive a percentage of any rental proceeds and hotel management takes care of maintenance and cleaning.

Steven Roszell is owner and operator of www.CondoHotels.com and HotelsForSale.com and specializes in the sale of Lodging and Hospitality properties around the world. Based out of Denver, Colorado, Steve has been hailed by the Denver Business Journal as one of Colorado's Heavy Hitters.

Steven brings 15 years of real estate knowledge to his businesses. Being a licensed real estate broker in Colorado and Florida, Steven has been able to build a vast network with both real estate developers and owners. Throughout his career, he has worked with several high profile clients including Turnberry Associates, Millennium Partners, W Hotels, WCI Communities, Citibank, and the United States Government.

Steven lives near Boulder with his wife and three children.

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วันอาทิตย์ที่ 24 สิงหาคม พ.ศ. 2551

Buying Your First Home is a Big Decision

Buying a home is one of the greatest investments you will ever make. The best -- and least stressful -- way to purchase a home is to be well educated throughout the process.

Before you even start looking for a house to buy, you need to review your financial situation. This will let you know how much of a down payment you can afford and how large a monthly mortgage payment you can handle. Lenders will look at the ration of how much you make to how much you owe. Most will require that your monthly housing costs remain under 28% of your total monthly income and that your total debt is less than 36% of your monthly income.

But you should look at what fits into your budget, not what the lender says you can afford. If you are currently making a rent payment of $1200 a month and barely getting by, how could you expect a mortgage of that size with the added insurance and maintenance costs of owning a home? You have to go with what works for your budget and finances. Remember, you can always work your way up to a larger home over time.

Once you have determined how much home you can afford, you need to check on your credit report and score. Lenders will rely heavily on your credit score when deciding whether or not to lend to you. It will also help decide how much interest you will pay. Your credit score is determined by the information in your credit file. If something is incorrect, your score will be affected.

Your score is made up of your payment history, your outstanding debts and how often you apply for credit. Most lenders will use your FICO score. If you have a score of over 700, you should have no problem finding financing.

The best way to improve your credit score is to pay your bills on time. You can also pay off your credit card debt and hold off from applying for new credit to raise your score.

It is best to review your report to make sure it is accurate well in advance. It may take time to clear up any errors before you apply for a mortgage.

In today's real estate market, sellers like to work with buyers who are pre-approved for a mortgage. Pre-approval means that you have submitted a complete loan application and that the lender has verified your information, checked your credit and determined how much mortgage you can borrow. When you are preapproved, the lender is saying that you can borrow a certain dollar amount.

With pre-approval, the seller knows you have financial backing and you know exactly how much you can spend. This keeps you from a lot of stress of worrying if you will be approved for a mortgage for your dream home. You already know what you can afford.

Take the time to prepare to buy a home before you even start looking, it will save you a lot of stress and make the process much easier.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

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Real Estate Agents Evolution of The Shark

Or survival of the most dishonest

Real Estate agents are regarded poorly by the general public. To be fair, there are many conditions that impact on a real estate agent. These impacts can either spit them straight out of the industry or have them evolve into sharks. In many cases it becomes survival of the most dishonest.

Now before all the trustworthy hard working real estate agents groan and moan, about another person giving their industry a hard time, please read on. I believe it is the system in many cases that is broken, and it is that system which shapes many a real estate agent into that predatory shark.

Firstly, becoming a real estate agent isn?t difficult. Most states within Australia have a real estate institute where you can complete a course in under a week. (I completed my course by distance learning in one night and I am no mental giant. The before mentioned groaning agents are really agreeing with me now!)

In the US you can complete a course online and be accredited. All it costs is $99 US.

We are talking a very easy entry point to become a real estate agent.

Now that you are a real estate agent ? with your suitable qualifications, you expect people to trust you with their single most expensive asset, typically their home! Sounds a little bit out of whack right from the start doesn?t it?

Now from an external point of view, real estate looks like a pot of gold. Commission rates of between 2.5% to 3.0% to sell a house. A property worth $500,000 represents a commission of approximately $12,500 to $15,000.

?WOW, I should be able to do one of them each week and earn $650,000 per year. Finally an industry that pays me what I am worth.?

And thus the evolutionary cycle begins. You have an easy entry and the prospect of a huge amount of money. Sounds damn perfect. In fact so perfect it attracts a huge amount of willing entrants with that simple view. Most may I say have the full intention of doing real estate far better than what they have experienced when dealing with real estate agents themselves. Ahhh the noblest of intentions.

The problem is, it attracts far too many people.

Now we have a vast amount of agents all vying for that property sale. The industry cannot support all the agents that are working within it. People rush to enter this industry and there simply is not enough property sales or money to go around.

Now we have the 2nd most critical issue in the evolutionary cycle from person with best intentions to shark real estate agent. COMMISSION ONLY.

Most agents are on commission only. This means they only get paid when they make a sale.

Any agent competing against a vast number of agents for any one property sale, if they don?t say the right things, they won?t get the job. Which means they don?t get paid. It means agents learn to say what ever it takes to get that property listed for sale and then whatever it takes to get it sold. It ?s the only way they get paid. It?s survival of the most dishonest, because many times, potential buyers and sellers really don?t want to hear the truth.

Yes, I can hear Jack Nicholson bellow out to all buyers and sellers??You can?t handle the truth?

Typically agents will say the property is worth more to the owners. This way they will have those owners sign up with them. Because most owners like to think their property is worth more. It?s a simple human trait called greed. (Michael Douglas just stepped in and added his line ?Greed is Good?)

But for the real estate agent it?s a simple numbers game. The more properties they have for sale the better the chances they will make a sale and therefore get paid.

Guess what comes next? Agents learn that it is far easier to sell something cheap. Everyone wants to buy a bargain so the agent pursues a process of marketing the property with such clich?s as ?marriage bust up?, ?owner desperate?. ?bank instructs to sell? and ?owner wants all offers?. They are simply aimed at attracting the most buyers with the lure ? BARGAIN BUYING. Now the poor owner at this stage is horrified at this approach, but the agent convinces them it is the way to attract the most interest. They should know - they completed a course within a week!

Conditioning follows, stage 3 in the evolutionary process. The agent will now try to get the owner to accept less for their property. The buyers won?t offer more ? because they are the bargain hunters, so the agent tells the owner with all sincerity ? this is all the market will offer. Cheap is easy to sell. The faster an agent can convince an owner to accept less the faster they get paid. This is largely the whole auction process. Auctions are designed by agents to get paid as fast as possible.

The sad thing about most of this is that the larger franchise groups have corporate training which promotes these processes as the best way to get a result for their clients. Many an agent is brainwashed with corporate training that simply focuses on evolution of the shark.

Now whilst all these activities are occurring, we have the 4th issue in the evolutionary process. VALUE FOR MONEY.

Buyers and sellers assess the agents? activities. Most buyers and sellers will have at least one unhappy experience with a real estate agent to describe. Yet they both know the agent is paid handsomely.

The owner has the added grief of being very aware, that they pay for the advertising, the sign, the internet, the brochure, which will attract the buyer that they then have to pay for again. Yes, that is exactly what occurs. Sounds quite stupid when you say it like that! The agent may throw it around they can organise a better sign or get a cheaper ad etc, but usually the owner is required to pay. They have training for this process as well. It?s called Vendor Paid Advertising.

Lets not even talk about agents suggesting they have better negotiation skills. They do, it has been finely honed by corporate training to get the owner to accept less and pay for all the advertising.

So, with all these processes in mind, the general public are very dubious about the honesty and integrity of any agent they deal with. The agents counter this with expressions such as ?Buyers are Liars? and ?Vendors are Benders?.

And the evolution is finished. You have a shark or you have someone leaving the industry. Survival of the most dishonest, well it would make for a funny reality tv show.

Da dum, Da Dum, Da Dum, I think I hear the agents circling my home right now.

Michael Eroz Property Analyst www.zeroagents.com.au

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วันเสาร์ที่ 23 สิงหาคม พ.ศ. 2551

Good News for Owners Sale of New Homes Down but Existing Home Sales in Good Shape

Over the past months, we have all been inundated with projections on the housing market bubble ? Will it burst? It is going to burst soon, be prepared! Sell Now! Buy Now! And the forecast differs depending upon the television channel you are listening to or the media article you are reading.

According to James Cooper of BusinessWeek magazine, the numbers point to a gradual slowdown of the market ? not a sudden crash, as many have predicted. In his July 10, 2006, article, Cooper cites how different indicators for the housing market are up one week and down the next. Some homes for sale indicators decline, while others rise. Though it is difficult to accurately project the future of the housing market for the remainder of 2006, he is optimistic ? in spite of all the noise that changes the market outlook on a daily basis.

Compared to last year?s peak numbers, the housing market is in decline for both new and existing homes for sale and the growth rate of prices continue to slow. Yet, the expected drop in sales has not been as bad as predicted, and the market collapse forecast has not occurred. The progressive slowdown is expected, however, to continue through the remainder of 2006.

The area of the homes for sale market that has been hit the hardest is the new single-family homes and existing condominiums and co-ops. Existing single-family homes for sale have faired the best with only a gradual decline in prices.

New home sales have fallen off sharply in 2006 and have the most volatile market indicators that cause the chaotic forecasts. There have been some ups and downs since the first of this year; however, new home sales are down overall by 10.9 percent since the end of 2005. Currently, builders have large inventories of new homes for sale that are expected to create further declines in both sales, prices and new construction starts for the future.

In May of 2006, the number of new homes for sale was up nearly 24 percent from last year for the same period. Median prices of new homes for sale were up by 5.1 percent for the same period but now have slowed drastically. With the average time to sell a new home being almost six months, builders are offering incentives to buyers, including helping with the closing costs, and are more willing to lower prices in order to sell off their inventories.

Condos and co-ops sales were off by 6.7 percent during the first half of 2006. The number of such homes for sale on the market has soared in the past year, gutting the market and bringing down prices and sales. The number of unsold units are up 73 percent.

The good news is for existing homeowners with homes for sale. This market is currently in good shape with both sales and prices holding up better than the new homes for sale market. Such sales have declined in seven out of the past nine months, but median prices are up 8.2 percent over the same period in 2005. According to Cooper, homeowners are not as willing to lower their prices as are builders, preferring to leave their homes on the market in order to find buyers willing to meet their price.

The bad news for owners of homes for sale is the number of existing homes currently being put on the market. In May of 2006, the number of existing homes for sale rose to 3.6 million, that?s one million more than in May of 2005. This is sure to begin affecting the existing homes for sale market. Additionally, the Federal Reserve is expected to raise interest rates soon that will affect mortgage rates for buyers. Right now is the best time to sell your home as buyers race to lock in current mortgage rates before the Federal Reserve takes action.

The predicted housing bubble crash is not expected in the near future. Consumer confidence is up by one point in June of 2006, according to the Conference Board?s index on consumer confidence, weighing in at 105.7. With good buyer confidence in the homes for sale market, a solid economy, and good labor markets, owners with homes for sale are still at a competitive advantage for now.

John Harris is an expert researcher and writer on real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more on San Diego Homes for Sale visit http://www.twtrealestate.com

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How to Gain More in Miami Real Estate Market

There are many factors that could cause any investor or future home owner to be successful or just a failure in Miami real estate market. Actually, knowing which properties to buy and the approach made in investing is all there is to become successful Miami Real Estate Market. Although, this requires different talents and abilities, all these can be learned and developed in order for someone to boom.

Skills sets are available for anyone who is interested in Miami Real Estate Marketing. One of the most important among these skills is being interpersonal. This is needed when dealing with real estate negotiations. The make or break scenario usually depend on how an investor or a marketer built the relationship with the other parties in order for them to build the trust needed in closing a deal. Rapport should be established and spending time to meet with the other sellers makes a huge difference. This is a win-win situation for both parties. Whatever transaction is made as long as they were made in a healthy atmosphere then everything will turn out fine. This will also a good turn for the future when some of their business friends will be recommended as well.

Simple mathematics should also be learned in order to be successful in Miami Real Estate Market. One should learn how to analyze the monthly cash flow and how the appreciations of property costs are being computed. It also important to do computations on how much is to be considered for renovations and repairs and relate the results to the flipping and the fixed sphere in Miami Real Estate Market. Tag an architect and a contractor along to assume whether the transaction being made is reasonable.

Lastly, remember that bargaining especially in Miami Real Estate Market really has need of patience as there are more than a hundred of real estate properties to choose from. Look for something that would yield better results and costs in the future to make sure that such property is a sure deal. See to it that the Miami Real Estate Market property is personally examined to be assured of the things itemized during the agreement and something that fully met the required needs.

Consider these tips in order to yield successful results in Miami Real Estate Market, specifically leasing:

- expect more than ten times of responses if an ad is placed with the ?Option to buy? terms than when a ?for Rent? is placed. That is because many are still trying to buy a piece of property in Miami and leasing could be their last resort.

- there are more calls coming from more interested tenants to a property and there is higher price involved.

- remember that the lease option when selling out a property yields more monthly income. The fees include the granting the lease fee and the monthly rent for the property. In return more cash flow is expected.

- it?s a positive outlook for future buyers as well because they are given the opportunity and the chance to possibly own a place in one of Miami?s real estates. These people are willing to pay a higher amount for the leasing agreement just to have a place of their own.

Cleo Capili

http://www.miamirealestateinc.com

Florida Real Estate Expert Cleo Capili specializes providing assistance to buyers in Florida. She guides families who would like to invest and purchase their dream home in the exciting warm paradise of the Real Estates in Florida. Her skills in negotiating and inventory to make sure that sales and experience bring out the best for each purchase sets her apart from the different common realtors in her location.

Cleo have good background in marketing, business, real estate financing, and advertising to give clients the best options when buying a Florida property. No matter what your needs are, Cleo could share her professional and interpersonal skills for outstanding results on each of your property purchase in Florida.

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วันศุกร์ที่ 22 สิงหาคม พ.ศ. 2551

Oil Paintings The best Real Estate Closing Gift Idea

There are many reasons why oil paintings make great gifts. They are a timeless representation of life and are a medium that can be appreciated by everyone for their meaningful content. When it comes to finding people and occasions to give the gift of oil paintings, few occasions are better than for a house warming. A custom oil painting is a great real estate closing gift idea for a broker or even for a buyer.

How to Choose Your Painting

When choosing an oil painting as a real estate closing gift, be sure to take a number of factors into consideration. First of all, it is best to avoid an oil painting with large, obvious shapes or bright, overwhelming colors. When purchasing a custom oil painting from an artist or an art expo, choose an oil painting that has a calming effect and uses more neutral tones. This way it can be used in any room, whether it is in an office or home.

Also, choose a custom oil painting that is not too large or too small. If an oil painting is too large or too small, it will have limited potential for use in certain rooms. Keeping the painting to a medium size will give the gift receiver some flexibility and options.

Be sure to keep the subject of the custom oil painting relatively neutral, unless you are certain about the tastes and styles of the person you are purchasing it for as a real estate closing gift. Landscapes are a great choice when considering a custom oil painting as a real estate closing gift idea. A still life is also a good idea because most still-life oil paintings can be broadly appreciated by most people.

How to Find a Custom Oil Painter

A custom oil painting can be purchased outright through an artist or at an art expo. Often, people want to create a specific scene or still-life that they wish to include in the oil painting For example, many landscape oil paintings deal with woodland or beach-themed scenes. If you would like to give a custom oil painting as a real estate closing gift for a transaction in a tropical location or even a particular city, it may a good idea to contact an artist who specialized in that particular subject matter and commission a custom oil painting.

Purchasing a custom oil painting is a great real estate closing gift idea because it will be not only useful for decorative purposes, but also as a reminder of a successful business interaction and partnership. A custom oil painting can express gratitude for a job well done and does not have to be limited to being used in a certain area of a home or office or even necessarily alongside a specific d?cor. A custom oil painting is timeless.

Allan holder is the founder and owner of My Picture Painter Oil Paintings: which is a site dedicated to the revival of the lost art of portrait painting. In today's fast paced world, sitting for a portrait painting is simply not practical. We allows the user to submit a photo to our network of talented artists who will paint a personal oil painting from your photo.

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Buying Your First House

Just about all of us wonder about the day we'll pick up the keys to our own home. Buying your first house is actually the goal for million of people worldwide. Being able to afford your own house is an extremely important mission most people work to accomplish throughout their lifetime. But apart from being an investment and providing security to a family or an individual, buying property, in the form of a house, can be a tremendous experience for the person that decides to commit time and effort in finding and bidding for the house of his or her dreams.

Whether you like big contemporary designs or town houses with tiny back yards, the idea of owning a home is definitely attractive. But many people don't realize that home ownership doesn't have to be so far off in the future. Although the actual process of buying a house can seem really scary because most people think about the tons of paperwork involved, and the use of a lot of vocabulary that sounds like a foreign language, postponing your dream can be not such a wise choice after all. Although a lot of people do not realize that they've got the financial resources to buy, or may have reasons they think they should continue renting, if you decide to invest time to research thoroughly your choices, hopefully the buying process will seem a little less intimidating.

But first of all you should think if you have enough reasons to wanting to buy your own immovable property. In fact, buying a house puts your money to work for you. Property values are on the rise at a rate faster than most interest-bearing savings accounts, making a home a great investment. Also, while rents continue heading skyward, mortgage payments usually stay constant. That means your housing expenses will be stable, while your income will naturally increase over time. In short, you can stabilize your monthly expenses and put the money you pay in rent back into your own pocket.

Moreover, the interest you pay on your mortgage loan is tax deductible which can result in huge savings on your taxes. This is especially true during the early stages of home ownership, when the creditors require you to pay the most interest. Furthermore, even the interest rates of your house mortgage are kept in low levels (around 7 percent) for a fixed-rate of a 30-year loan, transforming your home loan to your least expensive one.

Finally, the biggest bonus of buying your own property is the fact that unlike rent which is money down the drain, your mortgage payment goes toward your home equity. In fact, this comes back to you either as an emergency line of credit, or in case you decide to sell your property later, you have not lost your money since that equity is returned to you in full and can be used for the next house down-payment.

Jonathon Hardcastle writes articles on many topics including Real Estate, Recreation, and Shopping

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Vermont Mortgage What to Expect When Buying a Home in Vermont

Maybe you?re buying your first home in Vermont, or perhaps you?re relocating to Vermont from another state. Either way, it?s important that you educate yourself on Vermont home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Vermont:

The median price of a home in Vermont is $111,500. Recently, homes in Vermont have been appreciating at rates above the national average. As a result, income levels in many parts of Vermont are too low to purchase a median-priced home with a conventional loan. In fact, homeowners in many Vermont cities pay more than the recommended 30% of their incomes toward housing.

The price of homes in Vermont varies widely between zip codes. For example, in Burlington, Vermont, the median price of a home in the summer of 2005 was $338,000; however, in Montpelier, Vermont, the median price of a home was $294,000, and in Rutland, Vermont, it was $288,000. Average interest rates in Vermont are below the national average, and job growth rates are comparable to the national average.

Vermont state law prohibits the issuance of home equity lines of credit. Additionally, it requires that a defective mortgage be treated as though it had never been recorded.

Each year the Vermont Housing Finance Agency hosts a Home Buyer Fair where potential homeowners can meet and talk to mortgage lenders, realtors, attorneys, home energy specialists, among others. The Home Buyer Fair offers homebuyer education workshops, credit and budget counseling, post-purchase counseling, and post-purchase workshops.

Vermont?s Housing Finance Agency provides low interest financing to homeowners who meet certain income and purchase price limits. Information on these programs is also available at the Home Buyer Fair.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Vermont Mortgage Rates and Loans .

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วันพฤหัสบดีที่ 21 สิงหาคม พ.ศ. 2551

Furnished Apartments in Atlanta

Atlanta, comprised of numerous distinct neighborhoods, cities, and counties, has a good choice of furnished apartments - garden-style apartments, lofts, town homes, studios, and many others. Center city apartments and more suburban apartments come with features such as ample parking and swimming pools.

Furnished apartments are ideal for corporate housing and extended-stay rentals. These are available in any size, and equipped with kitchens, fully furnished bedrooms, air conditioning, fireplaces, dining and living rooms with or without bathrooms, hardwood floors, backyards, and parking areas. Some apartments in Atlanta are particularly designed to cater to the needs of short-term contractors or European business personnel. Almost all private apartments are located close to Atlanta's business areas, shopping malls, and restaurants.

Extended stay apartments are available on monthly invoice payments and are perfect for business travelers, those on temporary assignments, consultants, and visiting family and friends. Furnished short-term apartments feature the most comprehensive short-term and temporary housing facilities. These are available in all price ranges and sizes, and on one-month to twelve-month leases. Furnished apartments are popularly marketed to businesses like movie studios and film production companies that frequently employ visiting, temporary workers.

The town home in Atlanta is one of the popular styles of apartment buildings. Town homes are generally built on more than one level with living areas on the first and/or second levels, and bedrooms on the levels above living areas. Town homes are perfect for those who are willing to live on multiple levels and are able to maneuver stairs.

The rapid growth of this metropolitan area and its economic development have both contributed to the increase in the number of new apartments. Although Atlanta is one of the world-famous industrial centers, Atlanta apartments are affordable and the average monthly rent is below the national average. If you are looking for a living space, Atlanta has a number of well-established property management companies offering furnished apartments. They assist you with computerized apartment searching and apartment rental services to search for a fully furnished apartment, whether it is traditional or modern, according to your taste.

Atlanta Apartments provides detailed information on Atlanta Apartments, Loft Atlanta Apartments, Atlanta Apartment Rentals, Cheap Atlanta Apartments and more. Atlanta Apartments is affiliated with Apartments for Rent in Chicago.

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Commercial Real Estate Brokerage

Whether you are updating your current facility, entering a build-to-suit location or looking to build a property, commercial real estate brokerage associates or simply called brokers can help you manage the construction process. From property rehabilitation to inspection, from zoning restrictions to building codes, associates guide you through all necessary steps to ensure your project is completed efficiently and within budget.

Commercial real estate brokerage offices use sales associates who market office buildings, hotels and many other types of commercial real estate for brokers. Commercial real estate brokerage sellers usually specialize in a particular property type such as apartments, retail, office, and hospitality, shopping centers and industrial plants.

In commercial real estate brokerage, a person is required to have a license in order to receive remuneration for services rendered as a real estate broker. Unlicensed activity is illegal, but buyers and sellers acting as principals in the sale or purchase of real estate are not required to be licensed.

Commercial real estate brokerage is a risky business. Brokers are paid in straight commission ? cashing out only if they were able to close deals. Brokers negotiate leases for retail, healthcare, high-technology, and other industries that are seeking office and industrial spaces. They represent both landlords looking to market office and industrial space and tenants looking to relocate or expand. They help secure the rights to redevelop the space. They spend some of that time away from the office, touring clients? conditions and trying to understand their corporate culture and what kind of office or industrial space they need to operate. Brokers? pay usually depends on market conditions, not years of work experience, said Al Marco, a partner in Joseph Chris Associates, a national recruiting firm in Chicago that specializes in placing commercial real estate brokerage executives.

The risks of the commercial real estate brokerage are certainly offset by financial rewards. A leader in the commercial real estate brokerage industry, Coldwell Banker Commercial? was founded in 1906 after a devastating earthquake in San Francisco.

Some brokers of a commercial real estate brokerage focus on the sale, purchase, lease, and development of commercial-use land properties. Associates specializing in multi-family property transactions are well versed in the unique elements and trends that shape successful multi-family transactions.

Milos Pesic offers Brokerage advice. For more information, articles, tools, current news, and valuable resources on Brokerage and Brokerage related topics, visit his site at Online Brokerage

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วันพุธที่ 20 สิงหาคม พ.ศ. 2551

Real Estate License Courses

Getting a real estate license for brokers, agents, and appraisers is a requirement in the United States for you to be able to practice your profession. Different states have varied requirements with regard to qualifying for the state tests that are peculiar to the real estate market in the state. If you want to find out what you need to do to qualify for the tests, the Internet can provide you with listing on schools that offer the training required to qualify.

Readings and exams in the courses

While you are taking the course on the different areas of study, you will be provided with reading materials that contain the necessary information that you will need so you can learn how to pass the real estate exam of the state wherein you are interested in to practice your profession. You will also be given regular quizzes and tests that will test your comprehension ability on the readings that were given to you. Some schools require their students to get at least a grade of eighty percent in these exams before they allow the student to move on to the next course.

Specificity of the courses

Due to the specific and different needs of real estate agents, brokers and appraisers, different real estate license courses are offered to each one. However, some mandatory courses in the training often cover the topics of real estate laws and the principles of the real estate business. The average length and duration of these courses also vary across states, for agents, you will be required to undergo thirty to ninety hours of training. On the other hand, brokers are required to undergo sixty to ninety hours of formal training.

After taking the courses, schools promise that you will be able to learn the real estate laws of your state, the principles of ownership rights, financing in real estate and other relevant information and skills. They also aim to expose you to the brokerage business and they hope to make you learn the appraisal process.

The real estate business is very complicated and it involves a certain level of risk that may cause you problems. However, problems can be mitigated if you get the right information and skills to actively participate in the real estate business, which can be done by availing of training either through the Internet or the more traditional sources.

Real Estate Courses provides detailed information on Online Real Estate Courses, Real Estate Agent Courses, Real Estate Appraisal Courses, Real Estate Broker Courses and more. Real Estate Courses is affiliated with Phoenix Real Estate Schools.

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Are Realtors Really More Ethical than Real Estate Agents?

Recently a local newspaper ran an ad, cleverly disguised as an article, about why real estate buyers and sellers should always use a Realtor.

The article explained the Realtor Code of Ethics and how it ensured that each and every Realtor treated customers, clients, and other Realtors with utmost honesty. It made me think about an incident that happened when I opened a new agency and joined the Board of Realtors.

During our first week in business I got a visit from a competitor. He was there to tell me he was glad I'd joined the Realtor's association so there would be two of us in the community who followed a code of ethics. That would have been very nice, but for one thing. This man was known as a shady dealer.

It is no more realistic to think every Realtor follows the Code of Ethics than to think every licensed driver follows the rules of the road. It's pure nonsense. It is true that Realtors try to police each other, and Realtors who flagrantly ignore the Code of Ethics are subject to peer review, hearings, fines, etc. But the same holds true for drivers who break the law. Each is subject to punishment if caught, but those who want to ignore the rules go right ahead and do it.

So how can a buyer or seller find an honest agent? By reputation. By talking to other people who have used that agent in the past.

If you're a seller you probably live in the vicinity and have plenty of resources because you know people in the community. Everyone at work, at the restaurants you frequent, at the filling station, and even at the stores where you shop is a source of information. Just mention that you're thinking about selling and people will gladly jump in to tell you about experiences both good and bad. In fact, if they've had a bad experience they'll delight in telling you!

If you're new to a community, it?s a little more difficult, but not impossible. You can ask friends or family who already live there, and then you can chat with the waitress, the store checker, the gas station attendant, and even the bartender at a local night spot. If you're moving to step into a new job, ask the person who hired you for recommendations.

Whatever you do, don't sign a buyer agency agreement until you feel sure you've found the right agent. Spend a little time talking with the agents you're considering. Choose someone you feel comfortable with - and someone with some expertise and interest in the kind of property you're looking for. Some agents know all about land while others know all about waterfront mansions and others specialize in finding fixer properties.

If you're selling, find an agent who is expert in your kind of property. He or she will be able to answer your questions properly and will have contact with more potential buyers, as well.

Find an honest agent who fits and your real estate transaction will be pleasurable. It won't matter if he or she pays dues to the Board of Realtors or not.

Marte Cliff is a Freelance Copywriter who specializes in writing for real estate and related industsries, as well as writing for animal non-profits.

A 19-year veteran of real estate sales, she brings both knowledge and experience to her work. She offers a free critique of your current ad copy - not limited to real estate. E-mail her at writer@marte-cliff.com for details.

Marte publishes a weekly real estate marketing ezine. Subscribe at: realestatehelp@getresponse.com. Visit her at http://www.marte-cliff.com and learn about her two e-books: Getting Clients and The Land Buyer's Survival Guide.

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วันอังคารที่ 19 สิงหาคม พ.ศ. 2551

How to Become a Real Estate Agent

Real estate includes residential and commercial property. The former refers to property that people live in and the latter to trade and lease of property intended for profits. Inflation, augmented income, better government measures, and easily available mortgages have improved consumer purchase capacities. Such progressive consumer trends have proved to be a boon for the real estate trade. Real estate includes real estate business purchases, sales, and property rentals.

Individuals are required to enroll in real estate schools to make a career in real estate, as is the case with many other professions. Courses conducted at such business schools provide an opportunity to learn tricks of the trade in order to identify market trends and patterns. They also provide certification to individuals who practice a particular trade. There are numerous real estate schools that offer a wide range of courses.

Individuals may decide upon a desired real estate education program. When selecting an institute, it is advisable to be cautious and make enquiries regarding college reputation, degrees, and fees. A number of these courses and diplomas are made available online. This enables practicing real estate agents to enroll for specialized courses and helps students living in different cities to take the courses they need. Some people may opt for such courses as a continuing education program. Certain institutes offer a money-back guarantee in case enrolled individuals are not are not successful in the real estate business upon completion of their education program. Accredited and reputed institutes offer a universal platform and can hire industry leaders as part of their visiting faculty.

People can become real estate agents upon completion of undergraduate and graduate courses and certified distance-learning programs. Others may be part of a family business and choose to get certified after joining the trade. It is possible to start working without any educational degree, but the success rate is not guaranteed. Most professionals are required to work as apprentices with listed real estate companies.

Real Estate Agents provides detailed information on Real Estate Agents, Find A Real Estate Agent, Las Vegas Real Estate Agents, Commercial Real Estate Agents and more. Real Estate Agents is affiliated with How To Get A Real Estate License.

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Are You Really a Seller

Many people who have their homes for sale are not really sellers.. that is people who are motivated to sell. Many of todays sellers only want to sell if they get their price which may or may not be very realistic. Sellers are having a hard time accepting that the market has changed and the party is over. As these people either leave the market or get serious about selling prices appear to be falling more then they actually are. Homes priced on expectations not market value will not sell in today's market. If a home's value is $1,000,000 and it is listed at $1,500,000 then reduced to $1,100,000 it may appear as though the price has been drastically reduced when in reality it has not even reached the real market value.

If you really want to sell your home here are a few tips :

*Make Sure it Shows Well.. Clear out clutter, paint, put in new carpet or flooring. A few years ago you could get away with getting top dollar for a fixer. Today's buyer wants it in good shape or deeply discounted.

*Curb Appeal.. Re-plant flower beds, add pots of flowers, re-sod if necessary and paint the exterior. Most buyers make a large part of their home buying decision basedon the exterior of the property.

* Price It Right! That doesn't mean giving away the property but it does mean not overpricing. Zillow doesn't know your market so don't base your price on an online site that is getting money from someone other then you. Look carefully at the COMPS from your agent. A local agent knows the market and true market value.

* Marketing: Make sure your home is marketed in places other then the local papers. 75% of buyers start their search on the internet. You need to be there. If your agent is not marketing your property on the net you are losing access to a lot of potential buyers.

*Patience: Buyers are taking their time to purchase. Be ready to have your home on the market for 2-6 months. Entry level and premium priced A location homes sell quicker then those in the mid-level range.

Remember people are always buying and selling real estate. They get married or divorced, have babies or become empty nesters, retire or find new jobs. The market is always moving... it just moves to a different beat from time to time.

Kaye Thomas is a UCLA graduate and has been selling real estate in Manhattan Beach Ca since 1979. Kaye works with buyers and sellers and specializes in residential and small residential income property in the South Bay Beach Cities of Los Angeles county. For more information on buying or selling visit Kaye at www.KayeThomas4homes.com or www.Move2ManhattanBeach.com or read her BLOG at www.BeachCityRealEstateInfo.blogspot.com You can e-mail Kaye with questions at: kaye@kayethomas4homes.com

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วันจันทร์ที่ 18 สิงหาคม พ.ศ. 2551

A Different Type of Real Estate Investment

Real Estate seems to be on everybody?s mind these days. Especially in California, everybody you meet and half of your phone calls involve people trying to get you involved in real estate and refinancing. The problem with this is that the bubble has burst. Nobody wants to pay these ridiculous prices for homes anymore. The best way to invest in real estate involves land, and just land. Unlike the flooded real estate market, only a few people know how to correctly invest in land. For one thing, prices for vacant land are low. However, the price for vacant land in developing communities goes up; this is the key to making money though land investment. There has recently been a large surge in demand for land.

Over many years, real estate was the big deal. People only know about condos and houses. In California, the bubble is getting especially big as it's becoming a buyers market and internet rates are going up, as well as lowering house prices. California is proving to not be as good an investment as it was thought of before, yet there are still communities you can invest in and develop in other states.

Many people don?t invest in land. However, prices have been going up. People have started to invest due in part to affordable prices, easy selling ability and the surge in prices of land in booming communities.

Another benefit is that you most likely will not need a mortgage payment for investing in land; especially if you are just starting out. You will not need insurance, as well, until you start development.

Land is a finite commodity. People can keep building houses taller and taller, yet there is only so much land in the world. It makes sense to make use of it!

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Washington Home Buying

Maybe you?re buying your first home in Washington, or perhaps you?re relocating to Washington from another state. Either way, it?s important that you educate yourself on Washington home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Washington:

The median price of a home in Washington is $168,300. Recently, homes in Washington have been appreciating at rates higher than the national average. Additionally, the rate of job growth in Washington places them 13th in the nation. However, income levels in many parts of Washington are too low to purchase a median-priced home with a conventional loan. In fact, Washington is ranked fifth in the nation based on the number of residents that pay more than the recommended 30% of their incomes on their mortgage.

On the other hand, Washington has one of the lowest past-due loan levels in the nation. Additionally, current average interest rates in Washington are below the national average. The problems with high home-price-to-income ratios may stem from the variability of median home prices between Washington zip codes. For example, in the summer of 2005, the median price of a home in Bellevue, Washington, was $566,000; however, at the same time, the median price of a home in Seattle, Washington, was $386,000, and the median price of a home in Spokane, Washington, was $238,000.

Washington law does allow the disbursement of home equity lines of credit. Additionally, Washington?s Equal Credit Opportunity Act prohibits mortgage lending discrimination against individuals based on their race, color, religion, gender, familial status, or national origin.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Washington Mortgage Rates and Loans.

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วันอาทิตย์ที่ 17 สิงหาคม พ.ศ. 2551

Nebraska Mortgage What to Expect When Buying a Home in Nebraska

Maybe you?re buying your first home in Nebraska, or perhaps you?re relocating to Nebraska from another state. Either way, it?s important that you educate yourself on Nebraska home loans before shopping for a home and mortgage. This article explains what you?ll need to know before buying a home in Nebraska:

The median price of a home in Nebraska is $88,000. The price of homes in Nebraska varies widely between zip codes. For example, in Omaha, Nebraska, the median price of a home in the summer of 2005 was $169,000; however, in both North Platte and Kearney, Nebraska, the median price of a home was $175,000.

Average interest rates in Nebraska are above the national average, and job growth rates are below the national average. Between 2003 and 2005, home prices in Nebraska almost doubled. However, the increase was moderate when compared with other parts of the nation.

There is no mortgage tax in Nebraska. Additionally, the state of Nebraska offers many homeowner education classes to its residents. Nebraska?s Fair Housing Act prohibits mortgage lending discrimination against individuals based on their race, color, religion, gender, familial status, or national origin.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Nebraska Mortgage Rates and Loans .

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Buying a Home? Here Are 8 Important Steps to Follow

Learn eight important steps to take when purchasing a home.

1. Know your financial status When you decide to buy a home, check your credit report. You probably haven't seen it in the last few years and you don't really know how good (or bad) it is right now. It is very probable that you greatly overestimate (or Underestimate) your financial abilities. What's more, your credit report may contain mistakes you will have to correct (as this happens quite often) - and you'd better do it before you start shopping for a mortgage.

2. Choose your loan lender and the type of loan/mortgage When your credit report is accurate, then begin researching Mortgage Brokers and types of mortgages. When shopping for a loan, keep an eye on: 1) the interest rate and the term (the most important factors), 2) additional fees (they can spoil everything), 3) and your likelihood of getting the approved (they are different for different institutions). Generally, it is good to visit at least a few potential creditors and learn to use and understand a financial calculator before making the final decision.

3. Learn what you want and what you can get Only when you know what you can afford can you decide what exactly you want from your new house. How big should it be? How many rooms should it have? How much time/effort/money are you willing to put in the refurbishment/redecoration? Where exactly would you like to live? After you answer these questions, you will be able to narrow your search and make it much faster.

4. Understand who the agents work for Most people imply that the agents work only for them and they expect they will protect their best interest. The point is that's not entirely true, as the agents may work for a buyer, for a seller and for both of them. Learn where the agents loyalties lie before you start to rely on their opinions and confide personal information to them.

5. How to read offers As a rule of thumb, every offer seems to be better than it really is. In order to assess the offer properly, pay attention to such details as the neighborhood, acreage and furniture (if the house is sold with it). All these factors affect attractiveness of the offer just as much as the house itself.

6. Make an offer Only if everything seems to suit you just fine, should you make an offer. However, before the deal is sealed, there is one more thing you have to do: a home inspection.

7. Home Inspection: where to look When the offer seems to be good, make an appointment for another visit to the house in question. In some states you take your real estate agent with you. Now, everything depends on the results of the inspection. While you can do it yourself, the best option is to hire a professional home inspector. Then, you can expect a full report concerning the homes status. If there's anything wrong - from termites and mold to toxic paint on the walls or low quality of water, it will be found during a professional inspection.

8. Signing the contract Before you sign a contract, learn exactly what the fixtures are (i.e. what stays at home). Sometimes you will be given virtually everything, but sometimes you will learn that the previous owners have taken the swimming pool with them. Talk to the previous owners in order to learn what they want to take and what will stay and put it down into the contract!

When the contract is ready, the rest is relatively simple. Your agent or attorney will help you to make out all the payments, and assist with insurance and title transfer details you have to do in order to buy a home.

For more information on real estate buying, visit http://www.1st-real-estate.com

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วันเสาร์ที่ 16 สิงหาคม พ.ศ. 2551

REAL ESTATE 101 ? What is Real Estate?

Many people believe that real estate is nothing more than houses, apartment buildings, large office structures. And while that may be true, real estate, by definition is much more.

Once upon a time the powers that be decided to split ?property? into two separate groups. Real and Personal. What?s the difference between these two? In a word, movability. If it moves, it?s considered to be personal with a few exceptions.

Real property consists of three things. Land, things attached or affixed to that land and lastly, appurtenances.

Land is pretty easy. However it?s not just the land you own. You also own sub-terrain rights, depending on your location. This is also true with the airspace above your property. You own up to a certain height, again depending on your location. At some point the government takes over and says, okay that?s it. The rest is ours. We have airways to think of and we?re not going to have every flight file a million easements every time they took off.

Two, items attached to the land. We take this for granted. Your home is considered an attachment. If you look on your deed, I doubt you?ll find any mention of the structure on your land. The house transfers with the sale because of its? attachment to the land.

If there is a question regarding whether an item is Personal or Real, many courts use the MARIA system to decide.

M ? Method of attachment ? How was it attached? Foundation? Nuts and bolts?

A ? Adaptability of the attachment ? How easily does the attachment go with the overall structure? Think solar panels.

R ? Relationship of the parties ? Is this a sale? Is this between family members?

I ? Intent of the parties ? What was the original intent of the party installing the attachment?

A ? Agreement between the parties ? What did they originally agree on?

This issue usually comes up when a property is sold and the seller wants to take an item such as an outdoor barbeque, and the buyer insists that it comes with the sale.

Lastly, appurtenances are considered real property. The official definition is this; A right or privilege that is attached to another property and is conveyed with it.

Suppose Property A had a right (easement) to cross over a part of Property Bs? property to get to the main road. If the owner of A sells his property, the right to cross over Bs? goes with it. This is a type of appurtenance, called an easement appurtenance.

As you can see, ?real estate? is much more than the physical structure that sits on a piece of land. Before buying or selling, make sure you know what is staying and what is going.

Tom Bruner is President of Bruner & Associates, Inc., a full service California commercial property brokerage since 1989. Tom spent four years teaching students Real Estate Principals for Kaplan Schools.

?By spending extra time with each of my clients, I?m able to help that investor buy or sell their income producing property by maximizing that information. Visit me at http://www.brunerandassociates.com?

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Mobile Home Park Investment Money Trees

Mobile home parks are the scapegoats of the commercial real estate investment world. Perhaps one of the reasons why most investors ignore this lucrative asset class, other than for obvious eye sore reasons and the negative connotation associated with mobile home parks, is because they believe it requires too much up front cash and a personal income statement well above their means. This might be true if you were trying to finance your property through a large bank, however many mobile home parks are purchased with much less than 20% down and with little financial reserves in the bank. These parks are purchased through owner carried notes.

Small to medium sized park owners are typically older gentleman that have been running or overseeing the managers of their respective parks for a long time. Many of them are tired of this responsibility and would love to have someone like them come and take the park off their hands. Furthermore, some of these same owners prefer doing business the old fashioned way (without bankers / real estate brokers breathing down their neck, charging large commissions and inundating them with paperwork). In other words, a large percentage of mobile home park owners would rather take some initial financial consideration, make a nice profit each month off the interest on their note and not worry about the day to day issues of running a park. Additionally, many do not want to deal with a several hundred thousand to million dollar tax problem if they sell the park outright. Sure they could 1031 it into something bigger; but then they?re in the same boat as before. Sorry loan officers out there but investors should ALWAYS, ALWAYS shoot for owner financing in your mobile home park purchases.

Investing in mobile home parks is an absolutely beautiful thing. Not only is it a long term land play, but you have NUMEROUS ways to make money through your park. As opposed to investing in single family homes it is actually very difficult to NOT achieve positive cash flow each month. This is due to the following reasons:

1. The parks are usually in a less than favorable part of town. Therefore the land is cheap and you will be spreading that cost over numerous mobile homes.

2. Provided you purchased the right mobile home park, there will be vacancies and their will be a few spaces for you to bring in extra mobile homes. (Yes, that?s right?.you want at least half the park to be vacant when you purchase the property as that fact will kill the sellers price and ensure that you end up buying a screaming deal.) You?re healthy, sharp and full of energy so you?ll improve the quality of the park, raise rents and maximize your rent roll. By the way this will immediately increase the value of your mobile home park through cap rate valuation. Net Operating Income (not including cost of financing) / cap rate.

Example

30 Space Park, $300 a month Rent Roll (50% Vacant) = $54,000 yearly rent

$54,000 ? 16,200 (30% of rent goes towards Operating Expenses) = $38,000

$38,000 (N.O.I.) / 9.0 % (cap rate) = $422,222 (Your Purchase Price)

Your up side:

30 Space Park, 100% Occupancy, $320 a month rent roll = $115,200 yearly rent

$115,200 - $34,560 (30% park operating expenses) = $80,640

$80,640 (N.O.I.) / 9.0% (cap rate) = $896,000 ....I would sell at this point :)

3. If cash flow is low you can add additional revenue by putting in a coin operated laundry mats, adding vending machines, arcade games, day care services, etc.

4. Lastly, you should have purchased a park that came with owner rights on the mobile homes themselves. This will enable you to be extremely creative with how you fill your park with people. Far and away the best tactic is to Lease option your mobile homes instead of renting them. Home ownership is the American dream so when you advertise ?Own your own home, $3000 down, low monthly payments ? Bad credit OK, call Boca Vista Mobile Home Park? Your phone will ring off the hook, trust me. From there you take their down payment and have them sign your lease option paperwork that details the term of their loan with you. So why sell them one of your mobile homes?.isn?t that an asset to the park you ask? Yes, but:

A. Now you have someone in your park that has pride of ownership and will most likely take better care of the mobile home than most people would.

B. Because they technically own the rights to the mobile home, you are not responsible for costly maintenance.

C. Due to the interest on his loan, this person will pay you more each month than anyone renting a mobile home in the area.

D. If he/she gets promoted or saves up enough cash to pay the remaining balance (this almost NEVER happens by the way) then you make a substantial amount of money because due to serious demand issues, you can sell these homes for much more than they are worth.

E. Most of the time, the person will be late on a payment or two and will flee during the middle of the night. In that case, the property is 100% yours again, you?ve pocketed the $2000 option payment and you start the process over again.

Corey Donaldson is a professional mobile home real estate investor, owning numerous multi million dollar parks across the nation. He began investing in mobile home parks after purchasing a mobile home investment guide from Steve Case, who has since gone into business with Corey.

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