Real Estate Networks

All mortgages tend to fall into one or two basic categories - they are either a fixed rate mortgage or an adjustable rate mortgage. Among these two categories, however, there are many different options that allow you to get a mortgage that suits your personal needs. Here are some of the advantages of these two basic types that you need to know if you are considering buying a house.

A fixed rate mortgage gives you the predictable leverage of knowing that your payments and rate of interest stay the same throughout the length of the mortgage. There are no changes or adjustments of any kind during the term of the mortgage. The obvious advantage occurs when the interest rates, driven by the economy, changes for the worst. Since you are locked in to your rates, you will not be effected. On the other hand, a fixed rate mortgage may backfire, if the interest rates do drop during economic boom times. This could easily leave you paying much higher rates than others.

The advantage of fixed rate mortgages is obviously the stability it provides - you always know what your payment will be. There are a number of options that will give you greater or lower payments, though, such as the longevity of the mortgage. You can choose from 15-year mortgages, and then at various intervals, all the way now up to 50 year mortgages. The longer the loan, of course, the higher the amount of interest that you will pay throughout the term of the mortgage.

An adjustable rate mortgage, provides you with certain advantages that depend on both your own circumstances, as well as the economy. Most adjustable rate mortgages have a fixed rate portion of the loan, which typically, comes in 1,3,5,7, or 11 years. This portion of the loan allows you to enjoy a fixed rate for that period of time that you choose. This can be really good if the economy is doing well and the rates are low. It is this feature that could also allow you to get a larger house than you might be able to afford if you went for a fixed rate mortgage.

Adjustable rate mortgages lock you in, for a few years to the rate at the time you bought the house. Usually this means that you have a lower rate than anyone who buys a fixed rate mortgage at the same time. At the end of the fixed rate portion, though, you will see an adjustment made that will reflect the market - whether it is good or bad. This means that you could see quite a large jump all of a sudden. It could be hundreds of dollars more - or it could even be less than what you were paying earlier - if the market is that good. An adjustable rate mortgage will usually have some limits on the amount of an increase there can be in any year. This increase, however, is one of many. Depending on your contract, it could mean that your adjustments are made on either a monthly or yearly basis.

In either case, there are pros and cons - all depending on the economy. The good thing is that there is always the possibility of refinancing - if need be. Be sure to compare any offers you receive in order to determine the best buy for your situation. Get several offers from different companies in order to see the possibilities, and you may want to get some advice from outside sources as to whether a fixed rate or adjustable rate is the best for you.

Joe Kenny writes for the Loans Store, offering ukpersonalloanstore.co.uk/remortgage_loans_doc.html re-mortgages offers, or view the latest nationsfinance.co.uk/mortgages/ adverse credit re-mortgage at NationsFinance.co.uk.
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First time homebuyers who are on a tight budget can benefit a lot from foreclosed properties. Foreclosed properties usually sell at 65% to 85% of its original price. Most of these foreclosed properties are still in good conditions although they may look dismal at first glance. Usually, the problem with these foreclosed properties are just on the paint job, the overgrown garden and the accumulate dust and dirt. Other than that, you can be rest assured that the roof will not fall on you while you sleep.

No, where should one start looking for foreclosed properties? The best place to start looking is at the county recorder’s office. The county recorder normally records all documents regarding real estate transactions, including foreclosures. The records of the country recorder are public documents so it is open to all so can just request for the file and browse through them. Now, you might ask how you could identify foreclosed properties in the record. Actually, its fairly easy, all you have to do is look for those, which are recorded with a Notice of Default or a Lis Pendens.

Now, a Notice of Default is usually served in cases of non-judicial foreclosure. Note that foreclosed properties are those used a security of a loan. The moment that the debtor defaults in payment, a notice of default will be served to him or her. The country recorder will also record the Notice of Default. However, properties with Lis Pendens could be a little more complicated since a Lis Pendens simply means there is a pending Court action on the property. You will need to verify wit the Court regarding the Lis Pendens to ascertain the real status of the property.

Jeanette Pollock is a freelance author and website owner of insideforeclosure.com insideforeclosure.com. Visit Jeanette’s site to learn more about insideforeclosure.com/2006/08/03/where-to-look-for-foreclosed-properties/ where to find foreclosure listings.

Those buying a home in Spain are my clients. From all walks of life and for many differing reasons they start the process of finding a property. Light heartily over the months I have recalled some of the surprising actions of these people, but the other side of this is sad, depressing and soul destroying. Last month, the letters page carried a typical incident of a couple detailing their legal action against the person selling them a property. With increase frequency the “hard sell”, lies and extortionate fees resulting in dreams turning to nightmares are recalled to me. The common factors are the type of people they are dealing with and the lack of any independent advice when purchasing property.

Spain deregulated estate agents some years ago; unlike other European countries anybody can sell property. So why are so many people conned? In trying to understand this situation I have discovered the following:

The most important factor at first, is being able to communicate, and they do not question the services they are being offered. Next, they believe what they are told without question as they trust the people they are dealing with, after all they are English.

They do not seek independent advice.

They used the services of an estate agent that sorts out your flights, hotel and car hire for you.

They meet you at the hotel and take you out to houses then to lunch, that way your time is totally taken up to avoid you looking at properties with other agents. Retrospectively, the clients moan after they have parted with large sums of money, that they never had the opportunity to compare and see other areas or properties!

Increasingly a new ploy is false documents, planning consents along with undisclosed fees and contracts that do not bare close examination.

They offered to save us money, “No need to use a solicitor as we do everything for you.”

What is also alarming is how this situation is self perpetuating. Those who were conned seldom speak out about their experience partly to avoid their own embarrassment. Not knowing how they can address the wrongs done to them they “Put it behind them”.

Here are a few suggestions on how to avoid the pitfalls.

Become cynically. If you were employing someone to work for you would you not seek references? So ask to speak to other clients of theirs independently.

Beware of “saving money” it will no doubt cost you dearly. A solicitor of your choice is worth their weight in gold. Not one working for them or the seller. A list is available from the British Consulate covering the area you plan to live in. Just like buying property in the UK this person’s role is to protect you. They should be independent and with no interests in the property market.

Only deal with people that are trading from an office. That way you know where to find them in the future! This sounds ridiculous but one constant factor is that the buyer has no contact with the agent after the purchase! A website and telephone number is a one sided relationship……..

Quoted by a client some years ago to me. “Half the buyers of property in Spain use a solicitor the other half wished they had.” The same person also said “Supermarket car parks are for cars not places to meet estate agents” No matter where in the world you plan to purchase a property these two words are important.

BUYER BEWARE

In the case of an offset mortgage, your main bank current account and/or savings accounts are linked to your mortgage. Each month, the amount you owe on your mortgage is reduced by the amount in these accounts before working out the interest due on the loan. For instance, if you have an interest-only mortgage of $100,000 and have savings in your offset account of $25,000, you will pay interest only on $75,000. As a consequence, when your current account and savings balances go up, you pay less on your mortgage. As they go down, you pay more.

This type of mortgage can also be tax-efficient if you pay tax on your savings. This is because you do not earn any interest on your savings and so don’t pay any tax on them. Instead you pay less interest on your mortgage. Finally, depending on your lender, the savings accounts of family members can be combined to offset against one person’s mortgage. This could be useful if, say, you want to help your child buy their first home.

Second, a current account mortgage is almost identical to an offset mortgage in that it offsets the balance of your savings against your mortgage. However in this case, both accounts are usually combined into one account.

The mortgage lender will plan with you the minimum amount you should leave in your account each month to pay back your mortgage according to the agreed mortgage term. If you leave more than this in your account then you pay less interest and may pay your mortgage off early but if you leave less in your account each month, you will end up paying more for your mortgage.
Should you choose current account or offset mortgages? Probably yes, if you are a higher rate taxpayer and have substantial savings to offset. The answer is negative if you don’t have much left in savings after paying your deposit and other mortgages may be cheaper for you.

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Oh how I love a question that’s so easy to answer…is Egypt’s real estate sector really worth investing in?

Too right it is!

There are so many positive aspects of the property market in Egypt that make the entire sector an exciting place to be right now that anyone serious about venturing into an emerging overseas real estate market should be focused on Egypt for at least the medium term.

First things first let’s remove the confusion – Egypt is not a country plagued by terrorism, drought or famine – it’s a stunningly beautiful, ancient and interesting country with a coastline that is brushed and caressed by both the Mediterranean and Red seas. It is also one of the most exciting and exotic countries in closest proximity to Europe giving investors a massive potential tourist audience to target; it is also a country that can genuinely boast year round sunshine on its Red Sea Riviera which means it offers investors year round potential for profit.

If these are not reasons enough alone for a property investor to get curious about Egypt, how about the fact that Dubai based mega property developers Emaar have just committed millions of dollars to the Egyptian residential real estate market place in Cairo? Or what about the fact that the Egyptian government have slashed property related taxation costs to make the whole process of owning real estate in Egypt that much more affordable for more people?

You can add to this the fact that inward foreign direct investment into Egypt is at an all time high, the country is receiving higher annual visitor intake than ever before and the country is enjoying its best relationships with Western governments in documented history if you like.

Furthermore the amount of investment and economic confidence in Egypt is opening up a wealthy and growing middle class sector who are keen to afford property for sale and rent in Cairo and Alexandria in particular, and this gives an investor a local resale market to target in the medium term which further boosts the long term potential of an investment made into the real estate sector which is currently dominated by the tourism market.

It’s a fact that the highest rental incomes achievable for a real estate investor in Egypt right now are from tourist friendly properties along the Red Sea and Mediterranean coastlines – properties that are well located and facilitated are most in demand from the tourism market looking for short term lets. But there’s also a growing retirement market in Egypt that’s attracting great attention and giving real estate investors another potential revenue stream to explore.

Egypt really is the place to be for real estate investors looking for immediate income and medium to long term capital growth and resale potential - and because the property buying process for foreigners in Egypt has become more affordable and more transparent in very recent years, the numbers of investors examining the market and exploring its possibilities is set to rise and rise.

Rhiannon Williamson writes about real estate investment in emerging markets worldwide. To read more about amberlamb.com/index.php/property/egypt/” target=”_new property investment in Egypt click here.

An adjustable rate mortgage (ARM) is one of the most popular options available for both home mortgages and re-financing. Many homeowners do not fully understand the concept of an ARM and as a result may be somewhat hesitant to pursue this type of a mortgage. This is a shame because there are some situations in which an ARM or a hybrid mortgage can be the best mortgage solution for a homeowner who is in the process of re-financing. This article will focus on explaining the concept of an ARM, explaining situations where it is the best solution, debunking the most popular misconception regarding ARMs and explaining how those with bad credit can benefit from an ARM. At the conclusion of this article the reader should have a better understanding of ARMs and should be inspired to investigate this re-financing option further.

What is an ARM?

An ARM is an acronym for an adjustable rate mortgage. This means the interest rate associated with the mortgage is not fixed. Instead it is tied to an index such as the prime index and may rise and drop as the associated index rises and drops. The fact that interest rate is variable scares away many homeowners from considering this option further. However, there are certain safety measures in place which protect the homeowner from rapid increases. This safety measure will be discussed in greater detail later in the article on the section on the biggest myth regarding an ARM. However, for now homeowners should simply be aware that they would not be subjected to incredibly high interest jumps during a short period of time.

The Biggest ARM Myth

The variability of the interest rate in an ARM makes many homeowners feel very apprehensive. These homeowners envision interest rates going through the room during their loan term and resulting in their monthly payments skyrocketing. However, fortunately for these homeowners, rapidly increasing interest rates may not have a significant effect on ARMs.

This is because most ARMs have a built in clause which prevents the interest rate from rising more than a certain amount during a specific time period. During this time the national interest rate may rise significantly more but there is a cap on the amount the homeowner’s interest rate will be raised.

When is an ARM Desirable?

One of the most desirable situations for an ARM is as a part of a hybrid mortgage. Hybrid mortgages typically have one component which is fixed and one component which is adjustable. These types of mortgages may have a fixed rate for a set number of years begin to vary after this initial period. Alternately a hybrid loan may be variable for a number of years and then become fixed after this initial period.

The loan which begins with a fixed rate is usually desirable because the introductory rate is typically lower than the rate offered on traditional fixed loans for homeowners with comparable credit ratings. Homeowners may particularly like this option if they are repaying a smaller second mortgage and may be able to repay the loan in full before the introductory period ends.

ARMs for Those with Bad Credit

ARMs can also be very helpful for assisting those with bad credit in purchasing a home for the first time. There are a variety of loan options available today which makes it possible for even homeowners with poor credit to obtain a home loan. However, those with bad credit are usually offered these loans with unfavorable terms such as higher interest rates. Additionally, lenders may only be able to offer those with poor credit an ARM. Lenders take a significantly greater risk when they lend money to a homeowner with bad credit. As a result the lenders usually compensate for this increased risk by shackling the homeowner with less favorable such as a mortgage with an adjustable rate as opposed to a fixed rate.

Scott Fish is the owner of

Ever thought about becoming a real estate investor but weren’t sure where to start? You’ve got company. People just like you have purchased millions of books, tapes and videos from the Robert Kiyosaki’s, Carlton Sheets’ and Robert Allen’s of the world looking for the keys to investing puzzle. However, very few actually get started and even fewer make any money at it. You might still feel as if there are too many obstacles in your way.

Let me encourage you. Just because you might lack a large cash balance, may not have a great credit rating or may not have years of experience as a wheeler-dealer doesn’t mean that you can’t enjoy success as a real estate investor. I am walking proof. I have helped real estate investors obtain millions of dollars in financing for their projects and, along the way, I think I’ve seen every type of investor possible.

In my job, I’ve had the benefit of seeing many people succeed wildly and many others lose thousands of dollars almost overnight. Here are some ideas that, in my experience, will lead to greater success for you:

1. Determine your goals. Where do you want real estate to take you? Approach your real estate career just like you would any other business by deciding where you want to be in one year, three years or deeper into the future. Knowing where you want to end up helps you choose the right road.

2. Choose the best path for you. What level of profitability do you want to achieve? How much risk can you tolerate? One thing I love about real estate is that there are at least 100 different ways to make money. For example, you could consider

· Rehabbing and reselling single-family properties

· Buying homes and holding them as rental properties

· Becoming a real estate agent

· Brokering or owning office and commercial properties

· Investing through limited partnerships or becoming a private money lender

The thing that matters most is that you find a path that is in line with your lifestyle in terms of how much you want to participate in various investment vehicles.

3. Do your homework. You can lose a lot of money fast if you don’t exercise the discipline to educate yourself and get good advisors. Talk to people about various lending programs, rates and terms in the marketplace. Read some trade magazines or subscribe to wonderful newsletters such as Peter Pike’s Dispatch ( pikenet.com/) to bolster your understanding of real estate trends.

4. Location, location, location. Learn the makeup of your local market. Buy locations. You can change everything about a property except where it is located. I haven’t seen too many folks make money by having the market bail them out of a bad situation. It usually doesn’t happen that way.

5. Ask questions. When you find a property or project, talk to the neighbors. They will tell you everything you could want to know and more…including why the owner is really selling. Interview Realtors. Some have worked in certain neighborhoods long enough to have brokered the same property several times over the years.

6. Appraisals and inspections are your friends. Unless you are already a millionaire real estate investor, stop listening to your “gut” feeling. If you are a millionaire real estate investor, you probably aren’t reading this article. Therefore, I feel safe in recommending that you always get a second and third set of eyes to look at every investment you’re considering. Better to spend a few dollars to save thousands, right?

7. Line up your professional team. Ask for references and check them. Be willing to fire them and move on if they aren’t performing. You’ll want to establish a relationship with a good attorney, real estate broker, mortgage broker, accountant, inspector, appraiser and a title company along with others that you may work with from time to time.

8. Know your numbers and respect them. You are probably not so much brighter than everyone else that you can rewrite the rules. (Not yet.) Take the time to learn how to analyze debt coverage ratios, local days-on-market, property rental rates, occupancy averages, etc. Respect what your research tells you and…

9. Always be willing to walk away from a deal. It is your money and your time that are at stake. You are making all the ongoing commitments and taking much of the risk. Don’t let anyone pressure you. No one gets paid until you start signing papers; so wait until you are ready before going forward. Once you’re ready…

10. Get started and never give up. You might do a bad deal or two. That’s okay. It’s better to learn early in your career, right? There is a way to breakthrough and accomplish all your dreams. You just have to hang in there until you find it.

In most of the cases, people lose because they violated one or more of the above keys. The more you guide your real estate investing career by these rules, the better off you’ll do. Maybe you’ll be sending me a testimonial recounting your latest success one day? I hope so.

In the mean time, if you need assistance identifying your goals, locating advisors, evaluating opportunities or financing your projects, contact me today for help. In fact, I have a free “Deal Evaluator” in Microsoft Excel format that I will send you free when you e-mail me. No matter where you are starting, the exciting and wealth-building world of real estate investing isn’t closed to you.

I wish you great success.

Mark Anthony McCray, author of the upcoming books, “The 31 Rules for Succeeding as a Mortgage Broker” and “The 31 Rules for Prospering Financially” ( the31rules.com the31rules.com), is the Founder and CEO of Houston, TX based First Capital Mortgage Company ( dealsdone.net dealsdone.net). First Capital is a commercial mortgage banking and brokerage firm that has helped its clients leverage millions of dollars in financing for their real estate acquisitions, developments and investments over the years. Write to Mark at mailto:mark@dealsdone.net mark@dealsdone.net or call 713-267-4040 for more information about the author or First Capital’s services.

There are many people out there that have been waiting for several years for the housing market to take a downturn. There are also a lot of investors that have been dreading it. Well, it is finally here, the housing market is cooling off and a lot of real estate investors who were after a quick buck are now losing money. What this article is about is how to survive the downturn and possibly even make a profit on your real estate investment.

1) Turn your property into a rental.

If there are fewer people who are willing to put down the money on an expensive house, then it stands to reason that there are more people that are going to be renting. Think about it, those people still need a place to live, and you can become their landlord. Just make sure that the rent will cover the mortgage until the market turns around again. I would also recommend that you find a property management company to take care of the place while it is being rented out. They will typically charge around 15% of the total rent, so make sure you add that into the rent.

2) Refinance while you still can.

If you purchasaed your house a few years ago when the itnerest rates were high, you will definately want to refinance while you can. There is nothing worse than trying to sell a home while you are paying a huge mortgage on it. Try and get the mortgage to a lower level if possible, making it easier to ride out the bad times. You need to act on this quickly however, while the interest rates are still somewhat low.

3) Get rid of your property now!

If you are willing to take a hit while you can still handle the loss, then get out of the market while the getting is good. The "House for Sale" signs are starting to pop up all over the place, so you need to get your property sold as quickly as possible to limit the amount of damage that will be done if you try to sell later. You might even be able to make some profit if you act quickly enough.

4) Develop multiple streams of income to soften the blow.

If you are a savvy investor, you probably already know about multiple streams of income and their benefit. The real estate market, or any market for that matter, should be your only source of income. The more sources of income you have, the more you will be able to handle any potential problems that occur in one set of them.

The housing market has changed, and if you don’t change with it you will be left with a much smaller bank account. I wish you the best of luck in your investments.

Christopher Shireman has been investing in real estate for the past several year, and testing several different investment types for their effectiveness. He was finally able to become financially free in early 2006 by investing in the housing market and internet affiliate marketing. For more information on his real estate ventures, go to

Whether you are selling or buying a home, the listing price is agonized over from start to finish. Realtors will advise sellers of the comparative market analyses and hopeful “For Sale Buy Owners (FSBO)” will crash open houses trying to set just the right sale price for the home. Buyers will decide what they want and what they can afford; then seek out realtors they believe can find a bargain. But despite all that planning and agonizing, realtors report that a large percentage of offers result in counter-offers. What do you do then?

Rejected? Not Really

Realtors will tell you that some homeowners take a low offer on their house a bit personally. While that may be true, counter offers are generally a reasonable way of negotiating the price the buyer wants to pay, with what the seller wants to get. And unless you went the FSBO route, you don’t even have to deal with it directly- leave it to the realtors.

Many homebuyers and sellers choose to work with realtors for this very reason; they can let a professional negotiate terms and deal with tedious paperwork. Realtors report that most counter-offers may be issued to negotiate: a higher price (total consideration), a different time frame, paying service providers, a change in closing date, money down, or amenities included in the sale. According to the National Association of Realtors, people include anything from curtains to several thousands of dollars in their counter offers. Realtors in various states can educate you on laws governing counter-offers. There could be one or five in a given situation.

Deciding whether to dicker over a couple of thousand dollars, or who will keep the appliances, can be a decision that throws first time buyers or sellers into a frenzy. Keep these tips from professional realtors in mind.

Keep Your Eyes on the Prize

Realtors say that the homeowners who are happiest with their buying and selling experience were flexible, but had clear priorities. For example, realtors recommend that you have an acceptable range around your listing price that you will feel good about selling the house for. (Or paying for it). Then be flexible. Maybe the offer is $2 thousand lower than the seller wanted. This is a good time for a counter-offer that could propose more earnest money, or the exclusion of some personal property. Realtors will tell you that the seller is not required to respond to an offer at all. But if the realtors involved understand that both parties really want this sale to work, they will communicate that and help work out a mutually beneficial deal. Yet another reason that homebuyers and sellers need to choose realtors carefully. Try to view counter-offers as an opportunity for both sides to get what they want, and to leave the table happy.

John Harris is a researcher and writer on applicable real estate topics such as economics, credit improvement tips, home selling advice and home buying preparations. For more information please visit twtrealestate.com/carlsbad-real-estate.html Carlsbad California Real Estate

Higher taxes on top of a high LTV can destroy your cash flow.

Over the past couple of years, I have been concerned that rising property tax rates will eventually threaten the livelihood of rental property owners.

As if to partially confirm this, I have recently been contacted by two different investors who are victims of property tax hikes that took them from a positive to a negative cash flow.

In both cases we are talking about a doubling of the property tax bill in one single year.

I personally experienced a near tripling of taxes on a rental property. My per month cost for taxes went from an initial estimate of $54.17 at the time of purchase to $125 per month the following year.

The fact is no single entity on the face of the earth can affect your real estate investments the way that government can. Governments can add a significant cost of doing business via rising tax rates.

It can change the rules in the middle of the game, force you to pay up or else, and only government, (especially local government), has the power to affect every single property owner in a given city, or county. Even bankruptcy won’t rescue you from the clutches of the tax man.

The general rule of thumb for residential property investing is that you should never exceed 80% financing on your income property. You should plan for higher taxes and keep your LTV at a reasonable level. While there are 90% and even 95% loans out there for investors, it can be dangerous to take out such loans as the risk of negative cash flow is much higher.

Most investors and even home owners, should be very cautious about refinancing residential properties to pull additional cash out. A higher loan amount, combined with a large tax assessment could put you in the red overnight.

If your strategy is to buy and hold, be very cautious about exceeding an 80% Loan To Value. Over-financing can cost you a whole years profits to compensate for a two month vacancy.

If your rent rates have to be artificially high in order to cover loan payments and taxes, you may not be able to find a suitable tenant. Few investors can handle the financial strain of vacancies and negative cash flow for long periods of time.

The issues facing our cities and counties in the 21st century are complex and appear to be beyond the knowledge and expertise of most local politicians. We must find new ways to manage the costs of government services in order to insure a supply of affordable housing in the years to come. Increasing property taxes has traditionally been a local governments answer to every budgeting need. If this continues, it could put investors in many cities out of business, and ruin the small investor’s ability to provide affordable housing.

For now, keeping lots of equity in your properties is the only real way you have to protect yourself from negative cash flow caused by rising property taxes. While it is exciting to think about taking tens of thousands of dollars out of your properties to use for “tax free income”, smart investors are very conservative here, and prefer to keep lots of equity for a rainy day.

Donna Robinson is a real estate investor, author, and consultant located in Atlanta Georgia. You may read more of her articles on her website at RealEstateInvestorHelp.com RealEstateInvestorHelp.com or you may contact her by email at mailto:drobinson@reihelp.com drobinson@reihelp.com or call 404 542-9903.