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Understanding Different Types of Mortgages
2008-09-06 15:07:00
If you decide to take the big leap and sign a mortgage, there are many options available to you. Let’s investigate some of these: 30-Year Fixed-Rate Mortgages A 30-year fixed mortgage is repaid by the borrower making 360 equal monthly payments over a period of 30 years. Since your payments are fixed, you can expect to make the same monthly payment for the entire term of the loan, regardless of any changes in the housing market. This is a popular loan used to buy a private house and is available for conventional, jumbo, FHA and VA loans. You can also get a 15-year fixed rate mortgage, which is basically the same except your monthly payment is 25 percent to 50 percent more, and you pay it off in half the time. With a 15-year program, you’ll also be paying a lot less interest. Adjustable Rate Mortgages Adjustable Rate Mortgages (ARMs) are nice because of their low beginning interest rate. This low introductory rate is used to calculate the mortgage payment for a specified p...
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How to Be a Successful Real Estate Pro
2008-08-31 06:49:00
If you have been a successful businessperson, you know what it takes to do the job. If you’ve had sales experience, whatever worked for you before will likely work again. However, real estate is just different enough to make it worth your while to consider some of these ideas. If you have had little or no previous work experience, or none in sales, you will want to pay particular attention. Pick a Partner In every office there seems to be at least one agent who is exceptionally well organized. Pick the person who seems to be the best qualified and with whom you are the most compatible. Some offices have a formal buddy or mentor system that pairs off each newcomer with an experienced agent, so the contact might be made for you. Others might have a structured coaching program in which you agree to pay for the personalized tutoring. Naturally, that’s one of the things you’ll make certain you’re clear on before you sign on. No matter what the system, make sure th...
More About: Estate , Real Estate , Real

Thirteen Crucial Terms That Must Be Negotiated in Every Option Agreement
2008-08-10 17:06:00
Here are 13 crucial terms that must be negotiated in every real estate option agreement: 1. Purchase price of the real estate option: Negotiate a real estate option fee that does not exceed 5 percent of the property’s current market value. 2. Credit for cleaning up the property: Obtain a $500 cleaning credit, to be applied toward the option fee, for cleaning up the property. 3. Credit for the real estate option fee paid: Require that the full amount of the option fee be credited toward the purchase price when the option is exercised. 4. Length of the real estate option period: Negotiate a 6- to 12-month option. 5. Fixed purchase price of the property: Negotiate the fixed purchase price of the property to include the amount of the down payment to be paid and how the purchase is to be financed. 6. Right to extend the real estate option period: Obtain the right to extend the option period for two 3- to 6-month periods, to include the cost of each extension period. 7. Right to ass...
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Jump Start Your Wealth
2008-08-08 17:06:00
There are seven steps to jump start your wealth. You can choose to do any or all of the following steps. The more fully you participate in as many of the steps as possible, the faster and bigger your positive results will be. 1. Create a business. Make sure it’s in the proper business structure and that you have anticipated: (1) at least one clear exit strategy, (2) sources of funding for the business, (3) how to take money out of the business, and (4) a strategy to run the business in a way that reduces risk for you. Sometimes starting a business is as simple as changing your employment status from an employee to an independent contractor. 2. Discover your hidden business deductions. It can be a major eye-opener when the first-time business owner discovers all the things that are now tax-deductible. These are the things you used to spend personal money on. The difference is that they are now deductible. Discover and properly document those expenses. This is how your business ...
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The Five Main Reasons Many Rental Properties Become Mismanaged
2008-08-06 17:09:00
From my experiences buying mismanaged rental properties, I have found that incompetent ownership is the number one reason that rental properties end up being mismanaged. This incompetence has a snowball effect and is the direct result of the owner’s: 1. Lack of knowledge about the local rental market, which results in rental units being rented at below-market rental rates: This produces a break even cash flow, which is barely enough to pay for maintenance and debt service when the property is at 100 percent occupancy. Any vacancy causes cash flow problems that must be covered by the property owner. 2. Lack of knowledge and professional property management skills necessary to screen and select qualified tenant applicants as customers: This results in tenants who will not or cannot pay their rent on time and creates a negative cash flow, which the owner must subsidize from personal funds in order to keep the mortgage or deed of trust loan current. 3. Failure to respond to tenant...
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