First Time Home Buyer – Understanding Mortgage Terms

You’re buying a home. Well picture this… you are sitting down at a loan officer desk and they tell you that if you want to purchase a home your LTV must be 96.50% and your D/P must be 3.5% your Rate is 5.00% and your APR is 5.752% w/ PT’s of 1.00% and a Loan origination fee of 1.00%. With all of that your PITIMI (piti-me) payment will be 1,100.00 per month.

Do you understand anything that was just said? Maybe a few of you do but for most of us that aren’t in lending this can be a big jumble of acronyms and abbreviations that don’t make a bit of sense. So here it is… the down low on the top 5 most used lending terms.

1. PITIMI (piti-me) payment – This is your total combined mortgage payment. Principal, Interest, Taxes, Insurance, & Mortgage Insurance

2. MI – Mortgage Insurance – Contrary to belief this is not your Home Owners Insurance. Mortgage Insurance is an insurance payment that you pay for your lender. It allows for banks to give out loans to people with a smaller amount of down payment and the customer pays the insurance to cover their risk for the loan. If someone defaults on their loan and the lender has to sell the property then the insurance will cover any gap in the amount that the collect.

3. H/O – Home Owners Insurance. This is your insurance policy. The insurance that you chose to cover your home against disasters, fire, and theft to be able to get you your money back if something happens to your property or your possessions inside.

4. LTV – Loan- To-Value. This is the percentage that is calculated from the amount that your loan is to the value of the home. IF your home is worth 100K and your loan is 80K then your LTV is 80%

5. APR – Annual Percentage Rate – this is not the rate that your payment is calculated on. Your mortgage payment will always be calculated based on the Interest Rate. You’re APR is what banks use to portray the true cost of your loan. If you have a bunch of fees associated with your loan then your APR will generally be a lot higher then the interest rate, if you don’t have very many fees to pay then your APR will be closer to the interest rate on your loan. When you compare loan products it is best that you compare your APR instead of the Interest Rate.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by C Fite

Seven Tips for Finding Great Real Estate Bargains

The recent influx of foreclosures and distressed properties creates a wonderful opportunity for investors. However, in order to find great deals on real estate, you can’t just have a few coming across your plate every couple days. Instead, use these seven tips to keep the bargains flooding your desk:

1. Connect With Lots of Agents

When properties go into foreclosure, it often ends up as real estate owned (REO) property. Agents who deal with these types of properties are your closest allies. Don’t just work with one. Instead, create a list of local REO agents. Take some time to meet with them and establish a good working relationship. Let them know what you’re looking for – you’ll find they will do a lot of the grunt work for you.

2. Work with Asset Managers

Asset managers can notify you of potential properties before they reach the multiple listing services. Some of these deals are far too good to pass up! And if you’re able to close quickly on these great bargains, the bank will just keep feeding you more and more.

3. Market Yourself to Local Individuals

While they may not be in foreclosure, there are many families experiencing financial difficulty that would love to sell their home. Don’t be afraid to spend some money on a strong marketing plan that targets these distressed homeowners. These individuals are looking to sell for whatever they can get, and you can find some profitable bargains when negotiating one-on-one with the seller.

4. Go to the Court House

There’s very little competition on real estate owned homes that have yet to hit the multiple listing services. While you can’t do a thorough inspection inside the house, you can find some great deals if you purchase on the courthouse steps.

5. Homes Being Sold by Owners

Since the homeowner isn’t paying a real estate agent to sell his home, these types of sales can present great bargaining opportunities. They aren’t listed and don’t get nearly as much activity as those homes on the multiple listing services. At first, the owner may not be ready to meet your low price. However, keep in contact and see if he’s willing to negotiate later on.

6. Search Ads and Respond Promptly

Motivated sellers advertise their homes in as many places as possible. Check the ads in your local newspaper or other publications. You can also find ads on social media websites, online home listing websites and even Craigslist. Check these ads on a daily basis and respond as quickly as possible in order to secure the best deals.

7. Let Friends and Family Know About Your Investments

As with any type of business, word of mouth is one of the most effective means of gaining clients. Let your friends and family know that you’re looking for great deals on real estate. Ask them to let you know when they or their friends are selling homes, especially if the price is low. Investors find many of their best bargains through word of mouth interaction!

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Alfred Ardis

4 Benefits of Using a Multiple Listing Service

Today, realtors strive to make selling homes for potential sellers as feasible as possible. They have invested millions of dollars in developing Multiple Listing Services (MLS) and other technologies that facilitate efficient transactions. Through the MLS, brokers are able to share information on their property listings with other brokers who get compensated when they produce a buyer. Even though the real estate market is competitive, this arrangement has allowed competitors to cooperate in order to benefit the sellers.

1. Increased Exposure to Property

With MLS, sellers do not need to struggle to get potential buyers to see their property. Instead, the service lists their property, which is viewable to thousands of home seekers who visit the sites. Brokers cooperate with other brokers to list the property on multiple sites. This allows sellers to use a platform that was created by realtors for realtors to leverage a wide market for their property. In the long run, this helps to reduce unnecessary fees.

2. Sellers Can Relax

In the past, sellers used to work with several brokers and realtors when selling a property. This proved to be daunting, especially when making follow-ups and meeting potential buyers. This is no longer the case. With MLS, you take the photos of the property and upload them to the site. This allows buyers to get a picture of the property before a visit. Most providers allow the listing to remain on the site up to 6 months until the seller gets a buyer.

3. Professional Legal Help

There are legal aspects that are involved in selling a property and it is important to get everything right. Any issue could lead to delaying the sale of the property or not selling it at all. There are agreements to be signed that highlight the estimated price, advertising costs, commissions and agreement duration. A multiple listing service helps sellers to understand and meet some of these requirements to ensure a hassle-free sale. They also can help in unique cases such as where a divorce is involved.

4. Guaranteed Seller’s Privacy

MLS are maintained for real estate professionals to assist their clients with buying or selling a property. The participating brokers provide the data of the listings to the public free-of-charge. In such cases, the data is useful to the sale of the property and the buyer may want to access it. However, there are some cases that sellers may want to limit access to certain information such as personal contact information and the times when the property is vacant for showings. The service ensures that the seller’s information is not shared without permission.

Multiple Listing Services are a true reflection of the competition and innovation that exists in the real estate market. These services have help to ensure sellers can advertise their property to a wider audience. It is safe, easy and convenient for both sellers and buyers. There are different business models, such as full service and limited service, that MLS use, and a seller can choose an option that they deem best.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Alfred Ardis

Public MLS System in Canada – How Does It Work?

The public mls system is the official site of the Canadian Real Estate Association. It is the gateway to all the listings across Canada. As stated at their website the public mls website is a medium provided by REALTORS® across Canada to help market properties that are listed on the mls.

Ths definition of mls is multiple listing service.

Almost all local board mls systems provide data to the public mls system to facilitate the public’s search of mls listings in their particular areas and across Canada.

All people who have access to a computer have access to the public mls system in Canada. It is similar to the public mls system in the United States.

Most real estate boards in Canada (the Toronto Real Estate Board – TREB – being one of them), upload partial listing information to the public mls system on a regular basis.

It is important to know that the public mls system is for the public and only provides limited information about the particular listings. Realtors utilize their local mls system to search and find mls listings and they have access to far more details and information about a particular listing than what is available on the public mls system. The privacy act in Canada is the main reason for this.

Conclusion

The public mls system is available to everyone to use to search and see mls listed properties across Canada.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by A. Mark Argentino

Real Estate Agents – Strengths and Weaknesses in Listing Commercial Property Today

In this commercial property market there are some real pressures and challenges that confront a lot of property owners when they want to sell or lease their property. They need the help of top agents that really understand the local area, to help in moving the property.

Contrary to popular belief, it is in markets like this that good agents can make a lot of commission. It all comes down to the way in which they package their services and help their clients.

In simple terms, top agents and experienced agents can do very well today providing they work the local area and their database. A good database will always get you through any market conditions and frustrations. In saying, that I am a big believer that a salesperson’s database should not be delegated to the office administrative staff to control.

Every salesperson should take ownership of their database; in this way they will get good activities from it. In this market you need leads that you can do something with. When a database is passed over to the administrative staff to control, the inevitable result is inaccurate and old data. The database soon becomes redundant. The salesperson doesn’t keep it up to date.

Become Change Agents

So we are the ‚agents of change‘ when it comes to helping our property clients an owners get results in this market. We should know how to attract the right people to every property listing that we take on. Exclusive listings are more important in today than ever before. Some top agents will not take on ‚open listings‘ for the very reason that they are a waste of time and effort.

When you know the drawbacks of the industry and the listings today, you can offer the clients that you serve some solid solutions. So what are the drawbacks? Here is a list of some of the bigger ones:

  1. The time that it takes to sell or lease a property can be longer today. Every client has to be conditioned for the best price or rent so the time on market is not lengthened. The first few weeks of every marketing effort are the most important. Position the property correctly to get the best enquiry in this time.
  2. High prices and high rents will achieve nothing. The price or rent for the property should be optimised for enquiry. You have to do more with less when it comes to marketing and inspecting of properties.
  3. A larger number of competing properties can frustrate your marketing efforts and time on market. Check out these properties before you do anything with your listing.
  4. Buyers and tenants are slower to enquire, inspect the property, and then make a decision. Your skills with each stage of the listing should be optimised. Hone your skills accordingly.
  5. Limited finance can put some ‚brakes‘ on the larger deals. Find out where your prospects can get finance from and what the criteria of approval may be.

Whilst these may be drawbacks in the market, they are also opportunities for agents that can get focused and organised. Every problem is an opportunity in disguise.

Are you a solution provider in this commercial real estate market? Top agents are just that. You can be too.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by John Highman

Basics of Putting Up Houses For Sale

Many homeowners are planning to put up their houses for sale. The reason behind this decision varies from family to family. Some want to move on to better homes while others want to just close a chapter in a particular city. So what does one need to do in order to put up their houses in the market? What are the basic requirements that you need to meet in order to successfully complete the sale? Here are a few tips to help you.

Most home owners hire the services of real estate agents who help in putting up the property for sale and advertising the property in suitable places. The agent brings prospective purchasers to the house and highlights the unique features of the property to them. In order to make sure that your house gets sold fastest, you need to make your home as presentable as possible.

Buyers do not expect the best in second hand homes, but a more presentable home has a higher market value in the real estate business. Therefore, homeowners are advised by agents to take up the following steps that will help them to get a lucrative deal on the sale. Here is a list of the important measures required to optimize the sale:

1.Repainting of the house is important to get a fresh look into the property. Holes and cracks must be filled by using proper plastering. Windows are to be washed and kept in a clean condition.

2.The front porch, door, walls and decks must be cleared of any clutter that usually accumulates due to long term exposure to weather. The main aim is to give a welcome look to the front of the house.

3.Landscaping is an important aspect of any house and requires to be attended to at the time of sale. Owners need to clear any junk and make the area in the front and back of your house free of debris.

4.The interiors of the house need to be kept in a clean condition with revamping of all the parts of the house including the walls, ceilings, carpets, doors and windows.

5.Highly frequented areas of the house like the bathroom and kitchen, undergo maximum wear and tear. Therefore, these areas of the house need more repairs and cleaning. If appliances are being provided then you need to check if all are in good working condition.

You need to undertake these steps so that your property has more demand among other houses for sale.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Gardner A Wilkinson

Becoming a Foreclosure Consultant

A foreclosure consultant is a professional that offers to help you resolve you foreclosure problems. They can do this in several ways, which include:

• Postponing or stopping the foreclosure sale

• Getting the homeowner a forbearance, which is when the foreclosure consultant gets the homeowners mortgage payments postponed for a short period of time or getting the payments lowered

• Getting the homeowner an extension of time to reinstate their mortgage, which involves giving them time to pay off past due amounts and bring their mortgage current.

• Getting a waiver of an acceleration clause in their mortgage. This clause is what gives the bank the right to demand in full the immediate payment right after the homeowner defaults on the mortgage

• Helps the homeowner get an advance of funds or a loan to help pay on the mortgage

• Helps the homeowner avoid seriously hurting their credit rating,

To become a foreclosure consultant you have to become an attorney or apply for a government license. The professional requirements vary but generally the government will require that they register with the attorney general or a department of justice after they have fulfilled the training requirements. There are two types possible license. If you want to become a foreclosure specialist for an established agency you would have to have an associate’s license, also known as an agent’s license. If you want to be self-employed and have your own foreclosure consultancy business you would need an independent license.

The application process to get your license to become a foreclosure consultant involves:

• Undergoing pre-licensed training, which is about fifteen to twenty-five hours of in-person or online instruction that is specified by the local attorneys general.

• Paying licensing fees

• Becoming bonded

• Submitting a completed application that includes your background information, business details if starting your own foreclosure consultancy business, and any other qualifications like experience in mortgage lending or real estate.

In some cases you may also have to take a licensing exam. Once you receive your license you will need to register with the local government before you can begin practicing as a financial consultant. Generally the licenses expire after twelve months so you will have to complete continuing education and pay a fee to have them renewed. You will also have to submit a financial statement prepared by a certified accountant to the government. The foreclosure consultant will also need to set up a trust account to hold any money that is being transferred between the lenders and homeowners. If you have an independent license you will have to review the actions of any employees or associates each quarter. Those with an independent license must also obtain a bond for their services.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Lora Davis

How to Find Real Estate Buyers by the Dozen

Buyers are out there, it’s just a matter of rounding them up and keeping in touch. It helps to be able to determine which type of buyer you are hunting for from the start. Remember this: you’re the person who has something they want when a buyer calls you; if you are calling them then you are trying to sell them, let’s insure buyers call you so you remain in the position of power from the start. You should Be a Real Estate Heavy Weight.

Let’s look at a few categories of typical buyers to get some perspective on their mindsets and how and when we’ll market to find them in order to supply their real estate buying needs.

o Rehabbers: These are folks looking to fix and flip property for quick turn profits.

o Landlords: These are folks looking to buy to rent out to others for long-term equity accrual while generating a positive cash-flow every month.

o Wholesaler’s: Will either buy or put an option on your contract to hopefully flip the paper to another buyer who is willing to pay more.

o Lease Option end-buyers: These are folks who can’t qualify for a loan of their own but want to be home owners as opposed to renters again.

o Retail Buyers: These are end buyers who can obtain a mortgage or have cash and generally buy the property for their own housing needs.

There are variations of buyers out there but the above 4 types are generally considered the prime targets of people who have property to sell. Understanding each buyer’s mindset helps you to market to those buyers interests, do they want quick cash, long-term wealth, tax deductions, a place to call home etc… If you ask enough general questions you’ll quickly discern which type of buyer you have at hand. Once you know, you can then tailor your offers and present properties that satisfy what is important to them.

Buyer: Someone who is ready, willing and qualified! Those that aren’t qualified may be perfect tenants, lease option buyers or owner finance candidates, so qualified can have different meanings.

Ready: Someone who is in the market to buy within 1-45 days, keep in mind a retail or lease option end-buyer generally buys once and they’re out of the game, landlords, rehabbers and wholesaler’s are more likely to buy multiple properties from you over time as they accumulate, sell or flip existing assets. Having active buyer’s lists in different categories that are often ready to buy property is a very smart way to operate.

Gee Danno, how do I find these people? Ah! I’m so glad you asked! Let’s start out with one of the all time greatest methods to kick-start your building a buyers list. In your search for bargain priced properties of your own, it makes sense that you will eventually find a very good deal, once you have a superior deal to offer you turn around and market that property at cost! Yep, no profit for you on this one. Why? Because you are going to advertise that property to every investor and potential property buyer on the planet!

The reason for this is that you will get the most calls and response when you advertise a screaming deal! Granted you’ll most likely sell that deal relatively quickly but you’ll be gathering information from each potential buyer who calls to build your buyers list for future properties that you offer. If you don’t have a property of your own to sell, ask someone who does! I can assure you that they aren’t going to turn down your offer to advertise their property for them for free! You might negotiate a small fee if in fact you do sell their property but your main objective is to build you buyers list!

Let me give you an example of one way to collect potential buyers by the dozen, hold an auction, advertise for a solid week in advance so you attract the most amount of buyers, begin with bandit signs, placing about 100 of them around a 5 square mile area of the property, we just did this and had 800 calls because it was a great deal of those 800 calls we had 300 people show up on auction day, of course the home sold but we also added new buyers to our buyers list.

Here are ways to advertise for those buyers:

o Bandit Signs

o CraigsList

o Backpage

o GoogleBase

o Postlets

o Zillow

o Pay Per Click Ads

o Local online Classifieds

o Media Website

o Flyers

o Newspaper/inserts

o REIA’s

o Direct mail/post cards

o Start an investors MeetUp group

o Email

o Phone

o Fax

o Your own website

Use your imagination, the list is limitless, there is a free e-book called the Internet Real Estate Yellow Pages that you can download for free at my site MagicBullets.com go grab that and you’ll find 100 more ideas and places to list your deals. Now go Be A Real Estate Heavyweight!

Dan Auito :~)

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Daniel Auito

The Future of Real Estate: Buying a Home in 2018

An extensive ideology of the real estate industrial scenario in the upcoming future.

The industry of real estate has undergone a massive revolution in the recent years. Globalization and industrialization can be considered as two of the significant parallel factors behind the occurrence of the same. There are ample factors that have been responsible for affecting the condition and nature of the landed-property domain and have made it comparably complicated than before. On that note, it is becoming difficult for people to choose where and how to invest their money. Well, everyone wants to invest in a property to get a higher ROI, and this article is going to talk about the tips and bits of the upcoming scenario of the landed-property industry and the tactics of investment in the same.

Understanding the evolution and possibly real estate changes

It is necessary for investors to understand that the business of real-estate might look transparent from a regular perspective with a robe of simplicity on. However, certain crucial aspects need to be investigated before investment in any property. The idea applies for all types of investment in fact that includes commercial, industrial and residential. There are no specific predictions that can be concluded to. However, certain benchmarks and estimations can be considered to reach to a more or less precise forecast. Investments do not always promise luck, but as a purchaser, you definitely have the liberty to choose the best place to make a residential investment. On that note, the industry of real estate in Mexico has been running at the peak satisfying most investors at the present time.

Keys to making a successful investment in the long-run

As mentioned before, the landed-property industry has ample complications attached to it if you are not planning your approach in a comparably wise way. The foremost concern that will likely present you with a satisfactory return or a punctual arrival of rent is to invest in the right place. Investors often make the mistake of not being aware of the occurring evolutions in the landed-property industry around and rushing into a decision of making an investment in a property that might not be worthy which eventually leads to a fruitless exercise. As already mentioned before, the domain of real estate in Mexico is one of the finest examples of appropriate residential investments in the present time and is also considered to maintain a similar record in the upcoming years.

Some of the core to extensive changes in the paradigms of the landed-property industry, in a nutshell, involves an increase in the mortgage rates, a possible future effect on the passing of tax laws, increasing of landed-property properties in specific locations. So, in this saturating market scenario, it is wise for investors to be hyper-aware and take each step with a certain level of precaution and estimation. One of the finest approaches to make a smart purchase would be to perform extensive research on the current market to settle for the choice. The process might be conventional, but there is nothing like self-analysis at the end of the day.

Immobilienmakler Heidelberg

Makler Heidelberg



Source by Tere Kimball

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