Real Estate Networks

An overseas property expert has advised people who are thinking of living in France or other foreign locations to ensure they are aware of all the options available. There are many more options and “products” available.

Speaking to Bill Gleeson of the Liverpool Daily Post, Alan Bevan, who runs an overseas property advice firm, said that the popularity of buying foreign property has grown.

French investment can be profitable

He added that buying a property for investment “is often far more profitable with overseas property”.

“Not only can you charge a higher rent to tourists, but you also have a holiday home that is paying for itself,” he said.

Mr Bevan added that the other option for those thinking of moving to France is to buy a property with the potential to increase in value over time.

Be savvy when investing in France

However, as with any investment, it is vital that as much, if not more care is taken in terms of choice of location, costs and advisors. There are in France, for example, buy to let, leaseback, off-plan and reversion property packages to consider.

According to Mr Bevan, many overseas investors are tempted to rely on just one adviser or just visit one region but he recommends that people shop around.

“While lots of people might have preferred solicitors for property transactions, it’s important to have someone with specialist knowledge of where you’re buying.”

He added: “Don’t be bought by glossy pictures and promises. You should never buy without seeing the location and site of your property.”

He added that France still remained popular with British buyers and warned people away from the “Black Sea rip offs” in Bulgaria.

Howard Farmer

1st for French Property

1st-for-french-property.co.uk/investments/off-plan/ French Property Investments - Largest selection of French Property Investment products - Reversion, Buy to Let, Off Plan and 1st-for-french-leasebacks.co.uk/property/leasebacks.php?ss=Leaseback French Leaseback Property

In every industry, in every market there is so much choice, this is certainly true of the property lettings market in the UK. Reportedly there are now over 10,000 letting agents in the UK so the choice is out there. So what can be expected to be paid before you move in to the property?

This article will outline the most common charges made by letting agents to tenants.

What are the most common charges before move in?

Retaining Deposit
Administration Charges
Referencing Charges
Tenancy Deposit

(1) Retaining Deposit

So you have found your ideal rental home and have said to the agent that you would like to rent it. Often you will be asked for a retaining deposit, this is basically covering the agent in case you change your mind or fail the referencing checks. If you have any doubts as to what the policy of the agent is regarding the retaining deposit then it is advisable to ask to see the agents retaining deposit guidelines.

(2) Administration Charges

Often agents will charge for their time with respect administration, this is something to look out for and would be advisable to ask about before handing over a retaining deposit. It will vary from letting agent to letting agent depending on their policy.

(3) Referencing Charges

The agent will run through a reference check in order to ensure that you do not have any known outstanding arrears. This check is performed using third parties and will normally take no more than a few days to complete. Usually this will be charged back to the tenant and also be aware if the reference check is failed then it is highly unlikely that the retaining deposit will be received back.

(4) Tenancy Deposit

The tenancy deposit is payable to cover the agent in case the property is damaged during the tenancy. It is normally 1 months rent value and is payable up front at the time of move in. Ensure that any damage that is found in the property is made clear to the letting agent before the tenancy agreement is signed in order that this can be noted that it was not caused during the upcoming tenancy. Any damage that is found when you move out will be taken out of this deposit. Normally you can expect to receive the deposit money back 1 month after your move out date.

In Summary

The 4 points listed above are the common upfront costs that can be made by letting agents. Usually it is possible to find this information on the letting agents website or they will provide this from the branch office. Often rental hunters will use letting agents that are affiliated to the industry authorities in order to get more peace of mind; these include RICS, ARLA and NALS.

Agents may have other charges so be sure that you are clear of all charges before signing or handing over any money. The best way to gain peace of mind is by word of mouth. If you know someone who has had a good experience and can tell you up front what they were charged then this is invaluable in your search. Ensure that the funds are available to cover all of the agents costs before you undertake your search for a property.

Chris Courtis is one of the co-founders of rentright.co.uk/ Rentright Property Letting Directory. Use the site to search for property, click through to agents websites or send email directly to agents. If your looking for rentright.co.uk/ Property for rent then look no further than rentright.co.uk

Owning a home is undoubtedly the American Dream and the bedrock of middle class. Negative amortization, however, can turn the dream into a nightmare if you are not careful.

Home Loans and Negative Amortization

When you apply for a basic home loan, you obviously must repay the loan to the lender. The repayment of the loan is typically set over a certain time period with a certain amount being paid monthly. This process is known as the amortization repayment schedule. In some instances, however, the repayment schedule can be designed to have a very problematic result.

Home loan lenders have to compete for your business. To make themselves stand out, they will come up with unique mortgage packages that make it easy for you to get into a home that perhaps is a bit beyond your means. One of the techniques for doing this is a strategy known as graduated repayment. With graduated repayments, you initial loan repayments are for less than the total interest owed on the loan. The excess interest than accumulates and is usually converted into principal.

Known as negative amortization, this process can be very risky because it is based on a bet. When you pursue a negative amortization loan, you are betting the equity in the property is going to rise faster than accumulating interest. If the equity gain doesn’t increase, you eventually have a problem where you are making payments on a home with no equity. When the amount owed on the mortgage exceeds the equity in the home, you are suddenly upside down on the loan, to wit, the home has become a pure debt.

Obviously, a lender isn’t just going to sit and let the principal on a loan accumulate forever. To avoid this, the loan will typically carry a debt cap at which point the loan automatically converts to a different loan where you start paying the balance off or the loan may just come due. For example, the loan may contain language that if the total debt exceeds 115 percent of the value of the home, the loan will convert or be due in total. Either case is a nightmare because you will either suddenly have payments you can’t make or have to come up with a bundle of cash. For most homeowners, this leads to default.

Negative amortization loans can look very attractive when you are trying to squeeze into a home just beyond your means. Just make sure they don’t kill you in the long run.

Sergio Haros is with Great Western Mortgage -

Basics Zero down mortgages can be done with:

30 year fixed or traditional loansInterest only mortgages100% option payment loan30 Year Fixed Or Traditional Loans Zero down financing can be done with a 30 year loan or another traditional loan such as this. 100% financing usually comes in the form of 2 different loans – a first loan for 80% and the second loan for a final 20%. The two loans usually have different terms (including rates).

Many borrowers, especially first time borrowers, decide to go with this loan. Often times a borrower will refinance this loan in the future to lower their rate or cash out equity. In this way their 30 year fixed loan doesn’t last very long. When the borrower goes to get a new loan, they will be shopping at prevailing interest rates then.

Interest Only Option Many lenders now offer an interest only option on their mortgages.

Paying at the interest only level on one of these loans makes for a lower monthly payment. Paying at the interest only level also keeps the loan principal the same size. The loan is not increasing in size or decreasing. It remains the same. In theory a buyer may be able to build equity in the property by its rising value.

100% Payment Option Loan This type of loan typically offers a payment option loan for the first 80%.

A minimum payment option loan allows a borrower to pay less than interest only. It allows a borrower to make a much smaller payment than an interest only or regular mortgage.

The borrower has the option each month, for an initial period, to pay less than the interest only level. The difference between the interest only level and the minimum payment is added onto the principal of the loan.

This type of loan allows people to purchase a property they may not otherwise be able to afford.

Summary Many borrowers have lots of loan options when it comes to purchasing a property. There are even zero down financing options for rental property buyers.

archerpacific.com/ Get Mortgage Rates, 25 Free Mortgage Calculators, Mortgage Quick Tips and Much More

REALESTATEBLOG1.COM Real Estate News and Advice
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There are several different types of real estate investment businesses that you can start. First you can start a commercial real estate investment business. This business will involve creating a portfolio of commercial properties that you rent out to businesses or it will involve developing commercial properties. Another real estate business that you can start is an investment property company. If this is a business option that you are interested in then you can specialize in single family, multifamily, or a combination of both single family and multifamily properties.

No matter what type of real estate investment business that you decide to operate you will need to find a way to finance your purchases. If you have good credit, a lot of collateral, and a lot of capital, then you can borrow money from your local banker. However, if you are not a millionaire then you will probably need to find creative financing options. Some creative options that are available include: alternative loan programs, down payment grants, investment grants, and owner financing.

In order to maximize the profits that you earn from your investment capital you will want to use investment strategies that will save you money on the purchase price of the properties that you are interested in. There are several ways that you can save money on the purchase price of a property including: buying from foreclosure auctions, buying properties from government auctions, buying distressed properties, and buying from “motivated sellers.” You can also maximize your investment capital by buying the worst house in the best area. This will allow you to buy a property at a low price, fix it up, and then sell it or rent it out for a higher profit margin.

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If you are a homeowner looking for a wise investment opportunity, you don’t have to search very far. Real Estate is one of the greatest investments you can possibly make, and if you already have a mortgage on a home, putting in more money than the required payments is a wise decision. Every dollar paid towards your mortgage gives you more equity in your home, and that equity is almost guaranteed to rise in value. If you were to invest in a stock, your hope would be that the value of those shares would increase, and with real estate, it is only a matter of time before the value goes up, but even if your home does not increase in value, the sheer numbers of paying a mortgage early produces an incredible return. An investment made in your own mortgage is safe, easily accessible, tax free, and almost guaranteed to pay off at a great percentage. If you are considering a new mortgage, the same is true. Not only is it a great investment opportunity, but it will provide a home in the mean time. How many stock options can do that?

If you have a mortgage and a little extra money left over for investing every month, putting that money back into your mortgage can give you returns of up to 200%. Who wouldn’t take these kinds of numbers for investment? Not only that, but it is tax-free as well! Money saved in the bank or used on stocks, bonds, and mutual funds is all taxable income, while payments toward a mortgage is not considered income at all.

By paying a little extra on your mortgage every month as a long-term investment, you gain equity and lesson the length of the mortgage. Think of an example of paying an extra $25 per month on your mortgage. If your monthly payment is $665 over 30 years, at 7% interest, the mortgage would be paid off 39 months early. Multiply those 39 months times the monthly payment, and you get $25,935, and subtract this amount by the number extra monthly payments of $25 (321 months x $25 = $8025). This is a savings of $17, 910. If you divide these savings by 321 months, the monthly tax-free growth is $55.79. On a yearly basis, this is an average growth of $669.50, and when you divide that by the $300 dollar annual investment ($25 x 12 months) you can see that there is over a 200% return. Of course, the more you invest, the better the return.

This is not even taking into account the increase of the home’s value. In some regions, homes have been known to more than double in value over a decade, and with the growing population this is only going to increase. By building this equity faster, you also open the possibility of borrowing money against the equity for other investments, like building another home.

Investing is your own mortgage is one of the smartest ways to provide for your future. Everyone knows that real estate is one of the safest investments you can make, so why not start with the mortgage you already have?

About the Author: Peter Dellane is the President of Ability Mortgage Group, LLC, A leading marylandsmortgage.com Maryland Mortgage company offering low costs zero point mortgages. For more information on marylandsmortgage.com Mortgage Maryland please visit marylandsmortgage.com www.marylandsmortgage.com

VA Homes and Home Loans

VA stands for U.S. Department of Veterans Affairs. To get a home loan through the VA, you must have served in one of the branches of the Armed Forces.

How does this concern the non-veteran? Simple: When a veteran defaults on a VA backed loan, the VA pays off the mortgage, assumes title to the property and then liquidates it. Anyone can buy a VA owned home.

The Differences Between HUD Homes and VA homes

Homes owned by the VA are almost always in better shape than those owned by HUD. It is a simple matter of demographics; HUD through the FHA will loan to almost anyone, while the VA is very exclusive. There tend to be far fewer VA homes available in relation to HUD homes as a result of the limited applicants, but VA homes can still be found for sale in almost every market in the U.S.

Dealing with the VA is completely different than dealing with HUD. The VA does not have an auction process. They have an offer process, much like that of a private owner. The difference is, the VA is a motivated seller. They are not looking to cash in on equity like a private owner is.

Chris Yarbrough writes for the ebay-guides.com eBay-Guides.com His home buying guides can be viewed ebay-guides.com here.

No business can go a long way without marketing, and the mortgage industry has long understood this fact. Mortgage companies actively market themselves via different channels to boost their businesses. Their marketing could be through personal methods such as seminars, presentations, and demonstrations, or through external agencies like call centers and lead generating websites. Mortgage companies that do not have the means to spend more money on marketing employ simple tactics such as flyers, press advertisements, email contacts and also word-of-mouth publicity.

The first step in mortgage marketing is to understand the market thoroughly. Mortgage companies sometimes conduct random surveys to understand the type of population they cater to. The services of an external agency could be enlisted. Another preliminary step is to have an insightful study into the company’s own strengths and weaknesses. Mortgage companies try to highlight their positive points, and at the same time improve on their weaknesses.

Mortgage companies market themselves through a particular feature that becomes identified with their brand. They could either advertise early mortgage approvals, loan processing within a short time, low interest rates, low insurance rates or bad credit mortgages. Sometimes they market their specialty in particular types of mortgages such as real estate, vehicles or home improvement. While marketing, mortgage companies describe their expertise in different types of mortgages such as governmental, Fannie Mae, Freddie Mac, etc.

Mortgage marketing is done on an extensive scale through telemarketing. Call centers provide mortgage leads to mortgage companies, which are then followed by them. Another channel is websites, which generate leads online and forward them to mortgage companies. Mortgage companies may spend thousands of dollars to call centers and websites to provide them with substantial leads.

Sending direct brochures to real estate agents is another approach at mortgage marketing. Real estate agents have the potential to market mortgages to their clients and thus generate business for the company. Mortgage companies may give some commission to real estate agents for the business they create. Certain mortgage companies erect kiosks at busy places which provide information to home buyers. These kiosks are targeted to first-time mortgage seekers.

Today, mortgage companies face tough competition with each other. Through serious marketing techniques, mortgage companies are attempting to keep their businesses going.

e-MortgageMarketing.com Mortgage Marketing provides detailed information on Mortgage Marketing, Mortgage Broker Marketing, Mortgage Marketing Leads, Mortgage Marketing Tools and more. Mortgage Marketing is affiliated with z-MortgageLeads.com Internet Mortgage Leads.

If you’re looking to diversify, broaden or even begin your property portfolio consider Europe for your next investment destination.

Europe is host to such a broad range of countries all offering diverse property opportunities – you have everything from emerging market economies with massive potential for sharp growth rates, well established city based rental markets giving great yields and even residential housing markets offering an investor a slow burn on his capital outlay.

Here’s an overview of the potential on offer in the top ten European countries for real estate property investors right now.

Bulgaria – Bulgaria achieved EU accession in 2007 and as a result it is receiving massive foreign and domestic investment particularly into infrastructure and construction and the whole country is benefiting from the amount of money being spent on it.

Those who buy now in Bulgaria are buying into a period of short - medium term projected growth. Furthermore they are buying to target the burgeoning tourism market that heads for the beautiful beaches of the Black Sea Coast in the summer and the snow capped mountains of Bulgaria’s ski resorts in the winter.

Croatia – A country tipped for full EU membership in 2009, Croatia offers property investors commercial and residential property opportunities. The numbers of international business establishing bases in Croatia has increased substantially in the last couple of years and there is demand for the development of light industrial and office space.

Furthermore Croatia has a strong tourism market that offers a real estate investor further opportunity to either target short term rental yields or to buy off plan or develop for resale to the second and holiday home market in Croatia.

Cyprus – There are two real estate economies in Cyprus – you have the well established Republic of Cyprus property market where an investor should seek to target the retiree audience or the tourism market and then in Northern Cyrus you have an emerging economy currently offering massive growth potential.

Property price increases in North Cyprus have consistently been in double digits for the past three years and there are no signs of a slow down in the offing.

Czech Republic – The majority of real estate investors consider Prague the only city worth targeting in the Czech Republic but the country’s other cities like Brno also offer an investor opportunity to purchase residential accommodation for rent to the domestic and expatriate professional population. Property price growth has been fantastic in recent years and rental rates are increasing annually.

Estonia – Real estate investors should target the local market in Estonia and consider looking for opportunities in the capital city of Tallinn. The Estonian economy is growing at a staggering rate which is affording the local people greater purchasing power which in turn is having a direct effect on the property market in Estonia.

Basically as local demand increases so prices can rise and as local purchasing power increases so it can sustain these price rises. A real estate investor can buy into this growth now and should expect the period of growth to be sustainable for at least the medium term.

Hungary – Property investors who targeted Hungary’s capital city of Budapest in 2004 - 2005 enjoyed up to 15% growth on underlying property prices and while these growth rates have slowed down there is long term potential in Hungary.

There is local and expatriate demand for property to buy and let in Budapest and the local economy is benefiting from foreign direct investment and strengthening. This means that there are long term prospect for growth throughout Hungary. Furthermore there’s an emerging market within Hungary’s property sector and that is the tourism market which offers an investor a chance to get in on both residential and commercial property ventures targeting this growing market segment.

Latvia – Latvia is benefiting from substantial foreign direct investment which has helped establish the Latvian economy as one of the fastest growing in Europe and Latvians are on target to receive one of the five largest wage increases in the world. All this means that locally the population can afford to spend more on property either in the form of rental rates payable or property prices payable and real estate investors can buy off plan and flip on to the local market upon completion or even buy to let out in the capital city of Riga or in the coastal port towns.

Poland – Having joined the European Union back in 2004 Poland has received massive aid and investment as a result which has improved the country’s infrastructure incredibly and led to a strong period of economic growth.

Many European and international companies have established bases in Warsaw and Krakow and the demand for accommodation in these cities alone has really soared. Real estate investors are targeting Poland because it offers a low risk, high potential property market. Furthermore investor confidence in Poland is high because the Polish government have already proved that they have a strong commitment to maintaining the good economic growth rates that their country is currently enjoying.

Romania – Romania joined the EU in 2007 and it offers a real estate investor such exciting opportunities – where else in the world can you buy anything and everything from a castle to a factory at such ridiculously low prices.

Those with a strong appetite for paperwork and red tape will make their fortunes from Romania’s property market, but for the rest of us it’s an economy to watch carefully now that it has joined the EU because it should become easier and more attractive for property investors to target.

Turkey – Turkey is on track for EU accession sometime around 2010 following agreement that it should begin accession talks in 2005. Since that point Turkey’s economy has been granted ‘Market Economy’ status, the country has received billions of dollars of Middle Eastern funds into its property sector and world wide investor interest in Turkey’s property market has exploded.

The majority of opportunities either exist in Istanbul or along Turkey’s southern coastline where hundreds of thousands of tourists flock every year. Prices for property in Turkey are currently incredibly low so with all the positive data and news coming from Turkey recently there is only one way prices are going to go – and that’s up!

There are so many opportunities available to an investor in Europe that those serious about profiting from real estate property should give the continent careful consideration!

Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource amberlamb.com/” target=”_new amberlamb.com.

Traditional IRAs are fairly limiting when it comes to the types of investments you can make. With a self-directed IRA, however, there are very few restrictions on what you can invest in. The first step in creating a truly diversified investment portfolio is creating a self-directed IRA or Roth IRA, or converting your traditional IRA to a self-directed account.

What can you do with a Self-directed IRA?


Almost any type of investment is possible with a self-directed IRA. There are almost no restrictions, and in fact the only thing you cant do is use your IRA to purchase collectable items such as coins, or make investments that directly profit you or your descendants. Most of the inherent advantages of IRAs relate to the tax laws that govern these accounts.

-Capital Gains Tax does not apply to profits made by the IRA


-IRA profits are tax-deferred until you reach distributions age (59 1/2)


- Earn interest on every dollar earned by your self-directed IRA the tax-deferred status of an IRA means all profits stay in the account, untaxed until they are withdrawn.

By creating an IRA trust and appointing this trust as an IRA beneficiary, it’s even possible to pass money to your spouse and children tax-free after your death, or to put tax-free money aside for estate taxes. This is an excellent way of bypassing tax restrictions, particularly if one or more beneficiaries are a minor.

What about a Roth IRA?


Roth IRAs are very similar in terms of what you can buy and sell. However, the tax laws are slightly different with a Roth IRA you are subject to different tax types than with a self-directed IRA. If you own a Roth IRA, the profits made by your account are not subject to tax; however the contributions you make to the account are not tax-deductible as they are with a traditional or self-directed IRA. Once you reach the age of distributions, however, every withdrawal is tax-free. Another advantage of the Roth IRA is that there are no minimum distribution rules, so once you reach 59 1/2 there are no restrictions on how much money you can withdraw, or how much you can leave in your account.

Real Estate Notes Generate Passive Income


A real estate note represents the financial agreement made between the lender and the borrower of mortgage money, and includes information relevant to the terms and conditions of the contract. These notes are often bought and sold on the secondary mortgage market. Notes are an excellent source of passive income (income that requires no effort to maintain once the investment is made), and for this reason private investors will often lend money to real estate buyers, in effect creating their own notes. Real estate notes are a source of long-term passive income, and this is one of the main reasons why they are an ideal investment for IRAs. After the note is created or bought by the account, payments are made directly to the account, where they remain untaxed and earning interest, potentially for decades. Real estate notes are an ideal investment for another reason. The property market constantly changes, and property prices increase and decrease accordingly. Notes, on the other hand, do not change their face value according to the way the property market moves, so they are a lower-risk investment.

Can anyone buy Real Estate Notes?


Anyone can buy real estate notes, including private investors. There is excellent profit potential, with the possibility of buying notes for as little as 70% of face value. Private investors can also create notes by lending money to would-be property buyers who prefer not to borrow from financial institutions. Because the risk of such a loan is greater to an individual, the interest rate on them is higher than for a bank mortgage, meaning the profit potential is even greater.

Joshua Geary is the developer of myrealestateira.com Asset Exchange Strategies, LLC which helps those nearing retirement learn how to invest in real estate notes in their IRA. Visit his blog for the latest taxdeferredstrategist.com tax deferred self directed IRA strategies.