Buying Foreclosed Homes – Be Careful of the Great Deal

Unless you have been living under a rock for the last couple of years, you have probably heard that the economy and real estate market have been in a bit of a bind. People are losing their jobs and homes are foreclosing at a rapid rate. While this is a very sad and unfortunate situation for thousands of people each month, it is also an unbelievable opportunity for people buying foreclosed homes. The deals to be had amazing, but you have to know where to look and what to avoid.

One of the first things you need to make sure about is the actual value of the home. Just because a home has been foreclosed upon does not mean that it is necessarily a good deal. Sometimes the real estate agent or the bank decides to list the home at fair market value for awhile before reducing it down to a really good deal. Be sure to look at comparable sold properties within the last 3 to 6 months. This will help you gauge what the market really is doing since there have been a lot of changes recently.

You also want to make sure that you do a thorough inspection of the property. Nothing is more upsetting to a new home buyer than to find out after closing that the property needs a lot of repair work done. That can cost thousands of dollars depending on what the issues are, so it needs to be uncovered early in the process when the buyer can still get out of the contract without penalties.

When buying foreclosed homes, it is important not to get swept up in the excitement of getting a good deal. Instead, buyers should keep a cool head about them and make sure they do as much due diligence as possible.

Why There is a Rise in the Number of People Looking For Information on How to Avoid Foreclosures

For those of us who monitor trends in Internet searches, there has been an incontestable rise in the number of people looking for information on how to avoid foreclosures. To be sure, this is one topic on which information has always been highly sought. What has changed though, is that while searches for information on it used to be occasional (and by only so many people at a time), they have now become phenomenal; so that almost everybody seems to be looking for information on how to avoid foreclosures.

The people looking for information on how to avoid foreclosures can be seen as falling into two broad categories. In one category are those who are facing imminent foreclosures themselves. These are many, for the world is going through one of the worst economic crises ever. And in the second category are those who are not directly facing foreclosures, but who have friends and relatives in that particular – and often distressing – predicament. So they are looking for information on how to avoid foreclosures on behalf of those friends and relatives of theirs.

One question that is likely to come up in all this is as to why there is such a rise in the number of people looking for information on how to avoid foreclosures. To this question, only one major answer can be identified: tough economic times.

As alluded to earlier, there is no denying that the world economy is going through one of the roughest stretches it has had to go through in recent days. What is particularly distressing about the current tough stretch that the world is going through is that it is taking place so soon after a major boom: which many of us had come to assume would last forever.

During the boom, many people took up mortgages to buy what they considered comfortable homes. These were, in most cases, quite expensive homes – but many of us did not see the problem in taking up mortgages for them, for our economic outlook looked good. Things could only get better, or so we thought. It doesn't help matters, either, that the so-called sub-prime mortgage lenders were giving money to pretty much everybody who asked for it.

Then came the recession – and people who were previously comfortably repaying all their debts, including the mortgage (and being left with money to spare), suddenly find themselves struggling to continue meeting their obligations. This they do, when faced with job losses, of which we have experienced millions in the last one year. A job loss for most people servicing a mortgage translates to an imminent foreclosure – unless they can secure another job soon, which is proving to be a hard bet in this economy. So faced with a situation like this, many find themselves forced to go looking for the information on how to avoid foreclosure, as they try to sort out their finances.

Thankfully, the pundits tell us that the global economy is picking again. We are, however, yet to see whether this will translate to improved earnings for the masses, and fewer searches for information on how to avoid foreclosures.

Private Lenders – The Top 4 Ways to Find Private Money to Buy Real Estate at a Discount

Private lenders are a very valuable commodity to real estate investors. Sometimes they can make or break a deal. Having a few phone numbers to private lenders will help you greatly when you are in a pinch and want to purchase a really good deal.The secret to gathering those phone numbers is to get the word out you are a real estate investor and are looking for a private lender. You will be amazed at how many people will find out what you are doing just by simply telling a few friends, and then they tell a few friends and so on and so forth.Below is a list of the top 4 ways to find a private lender.Mailing Lists: Purchase a list of potential private lenders through a list broker and send them a letter or post card. You can offer a “free report” or invite them to a group seminar where you lay out your private lending program and advantages of investing with you. Seller financing: when purchasing a property from a seller ask them to “take back” a portion of the purchase price and you instantly create a private lender. If you experienced you can offer “no” interest and make each payment 100% principle.Your local neighbors: Now that the stock market is in the tank lots of investors are looking for a safer place for their investments. We all know real estate prices are the lowest in 15 years but most investors have neither the time nor inclination to manage tenants or the property in general. That is where you come in offer them an excellent return on their investment and security they will not lose their investment and they will be lining up at the door.Contact local investment groups. Not only will they help you greatly when you acquire some rentals and need some advice since they are well versed in buying real estate they either might know someone looking for a good investment or they might want to front you the money themselves. Most long term investors also are able to finance a couple of properties themselves. And having raised money for properties they have bought they are a very good way to find another private lender you can work with.In general working with a private lender to buy real estate is an excellent way to propel your purchasing power light years ahead and is well worth the time and effort it takes to find these valuable people.

Buying Real Estate – Three Tips About Real Estate Law For Investors

If you are considering starting a career in real estate investment, whether it is part-time or full, you need to be aware of the many legal implications that surround properties and understand which ones apply to the sort of investments that you are interested in.Of course, your first port of call should always be to speak to an expert in the subject of property law. They will be able to provide you with plenty of information about what applies to you and the issues that you might face with the investments that you are considering.However, there are also a number of tips that are important to keep in mind before you invest any of your money in property.Be OrganisedThe very first thing you need to do before investing in anything is to have complete awareness of your current financial situation. You need to be able to set a solid budget that doesn’t put you in trouble if an investment goes bad and you need to understand exactly where your money is going and what sort of return you are getting on it at all times.In many cases this will require hiring a certified accountant who can keep track of where your assets lie at all times and will be able to inform you of any changes in law that may affect your investments. This is something that you are going to need to spend a considerable amount of time and effort on, but it is important if you want your investments to start paying out.Be Aware of Local IssuesReal estate and personal property tax are going to affect every investment that you make, so it is important to be aware of what they are and which of your investments they affect. You will need to budget for each every single year, so don’t let your concentration slip and make sure that they are always included in your figures.It is also important to note that neither is a set rate across the country. Different areas will have different rates of both types of taxes, so you need to be aware of what they are before you invest. After all, it can come as a massive shock to the system if you invest in a property outside of your comfort zone, only to find that you are required to pay a higher rate of tax for the pleasure.Know Where to Make SavingsA good accountant who understands real estate will also be able to point out ways that you can save on the tax you pay, based on the investments that you make. This is particularly useful for people who are renting out the properties that they own.Furthermore, you should always be aware of the 1031 exchange, which allows you to defer the capital gains tax accrued from the sale of one property directly into the purchase of another. You can keep hold of much more of your money by doing this, which has allowed for many investors to build a small fortune through continual deferral.

Possibilities of Buying Real Estate Without Putting Any Money Down

Most people agree that real estate is one of the safest investments that a person can make in the current scenario. This is why there are a lot of schemes doing the rounds which suggest that they are the best means to purchasing profitable property.One of these concerns buying real estate without putting any money down. While variations of the scheme have been seen for some decades, it is only now, with many people struggling to make ends meet and crippled with heavy debt at very high interest rates that the incidence of such deals has increased substantially. So how is it possible to become a landlord inside a month and start receiving rental income without having put in any of your own money to buy the property?The process begins with a home owner being in dire need of cash to pay off debt or avoid closure or something similar. If that person has bad credit score and history, it is unlikely that he or she will be able to get funds from any public or private investment firm, including banks. So the private investor steps in and agrees to buying home equity from the owner, not in a lump sum but in equated monthly installments.Another variation is that the purchaser or investor gets 100 % funding for the deal or deals from a wholesale lender and pays the full contracted amount to the owner and then pays the wholesale lender off with the monthly rentals from the property that he or she has invested in.