Archive for the ‘Home Buying and Selling’ Category

Flipping Houses – The Benefits

Sunday, March 4th, 2012

Normally, it’s the profit that entices people to try their hands on the real estate industry – particularly in flipping houses. If the earnings are significant and quick to come your way, then its one tangible benefit of flipping. Of course there are risks. Most ventures which provide high profit also come with a high degree of risk. Money can be the first thing you’ll have in mind when it comes to flipping. But it’s not the sole reason many flippers chose their job. Moving in Canada? Get the best real estate tips and service from Guelph real estate agent.

So let’s go ahead and talk about your profit first. One of the main reasons why people get into this business is because of the profit. The days are long and the work is hard. This is definitely not the type of work one would ordinarily undertake for the simple love of getting one’s hands dirty. This is real work that leaves you bone weary at the end of the day. However, when all the work is done and you get around to making the sell, you will find that the profit involved in a successful flip is well worth the effort you’ve put into the process.

If a certain real estate or flip doesn’t work, you can not just treat it as though it’s the end of the word. There’s still the option to own the property or have it rented. The profits in these situations are considerable less than a straight out flip but it can prevent financial ruin that is often the risk of a flip gone wrong. The fact that there are options and that you aren’t necessarily left ruined at the end of a bad flip is definitely a benefit. There aren’t many types of investments that allow you the option to save yourself the way real estate does.

Its no denial that property investing can be one of the most frustrating business there is. But mentally, spiritually and economically, flipping can be very rewarding as well. This is something you should keep in mind when determining whether or not this is the right path for you.

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real estate in honolulu is very expensive, and the homes are not that nice

Wednesday, November 9th, 2011

Guidelines And Advice To Improve Simplify The Home Buying Approach

Purchasing real estate in honolulu can really be a risky venture, one that can take everything within you to get through; but that is only if you aren’t prepared. With these tips, you can prepare yourself for any real estate search, whether you are starting online or getting a start through an agency in your area.

Don’t be afraid of a fixer-upper. One of the best ways to get a great deal on a home is to find one which needs repairs. Houses in bad condition sell very cheaply, and with a few renovations can drastically increase in value. Once the repairs are complete you can either sell the home for a tidy profit, or stay there and enjoy the increased equity which can be borrowed against if the need arises.

You’ll know when you’re ready to make a property selection. Generally, your agent can tell too via intuition. They should not steer you though, and you should be able to make your choice without them interfering. It’s not their choice to make. They should point out any problems or defects though and make you feel confident with your decision.

When purchasing real estate in honolulu to use for rental properties be sure to do a careful assessment of the neighborhood.  Look at the cars parked in the street.  Old cars can tell you a lot about the neighborhood in which the property is located.  Trash on the sidewalk or worn down houses can tell you that the neighborhood is less than great and at what level you can expect to rent the property.

If there is a real estate property that you are interested in purchasing, do not fall into the trap of wasting too much time analyzing how much the property is worth. It can be very time consuming. Instead, you should immediately make an offer that you are relatively certain is going to be too low. Negotiate with the seller to see if there is even a price that both of you can agree on. Only then should you do the research to see if you should proceed with the purchase.

Don’t allow the loss of your foreclosed home to destroy your dream. Although a foreclosure can stay on your record for as much as seven years, FHA, Freddie Mac and Fannie Mae usually require a minimum of only three years before they’ll help with another home loan. That’s assuming that your foreclosure was due to things like illness, job loss or relocation. You may be asked for as much as a 20 percent down payment and a somewhat higher interest rate.

A trusted real estate appraiser in real estate in honolulu can be a priceless useful resource if you are in the organization of buying real estate. Once picking an appraiser, make sure to choose another person who is not affiliated using the brokers or any of the housing sellers which you usually do business enterprise using. This can lead to a conflict of interest. Additionally check to make sure which the appraiser is certified and certified by the state.

Most new householders invest a significant overall amount of money renovating the new house. For instance, they may need to remodel the kitchen, or set up a new tub in the bathroom. If you are seeking to buy a new residence, and possess seen a property that you are interested in buying, try to establish what kind of makeovers that you will wish. You could afterwards make a deal to possess the dealer end up paying for and generate the makeovers for you as component of the acquire agreement.

Try selecting a couple top option qualities and wanting at them a second time.
Once touring them, you should know that components you would prefer to reside in. Go see them yet again if these folks have not been purchased yet. You may be capable to see items which you skipped the initially time and uncover the one you desire.

When obtaining a new house in a unique local, you must certainly do study on the local itself. There is a lot of details that your realtor or dealer may be hesitant to share with you due to the fact it may dissuade you from purchasing the house. For example, you must glimpse up crime rates due to the fact the level of offense may not be obvious from the appearance of the geo-targeted. A geo-targeted that looks welcoming as a outdoors can possess a elevated burglary rate.

If you actually want to make sure of the purchase you make in property, you wish to have the information needed to generate a smart decision. Using the steering furnished in doing so article, it is possible to fully grasp much better what it will take to generate a effective real estate buy, and how to safeguard against typical risks.

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Choosing Your Realtor

Tuesday, August 2nd, 2011
Photo of a Real Estate Agent

Choosing the right Real Estate Agent to Represent your Best Interests

Buying a home is one of the most important investments of your life. It’s also one of the most complex transactions you may ever undertake. Your first step involves deciding how you will approach your home search. Who will you work with throughout this process?

As a buyer, it’s important that you find some one you feel completely comfortable with who you can trust, and who listens to you and respects your views. They need to have the market knowledge and expertise, but at the end of the day, it’s your home and your investment, so you must be able to work well with them.

Like so many professions, reputation and word-of-mouth are crucial. As you begin your search for a REALTOR® talk to family, friends, and colleagues who have gone trough the home buying process to see if they can recommend anyone. Look for someone who is experienced in your market, but not so busy that they can’t give you due attention. You want to be served, not sold.

What a REALTOR® Does For You?

There are many good reasons to work with a qualified real estate professional. You can expect your Re/Max Representative to:

  • Provide you with the highest standard of care and extreme loyalty to you as the client.
  • Understand your specific needs and wants, and locate appropriate properties.
  • Assist you in determining how much you can afford.
  • Help you get pre-approved for your mortgage.
  • Preview and/or accompany you in viewing properties.
  • Research properties to identify any problems or issues you should consider.
  • Advise you in formulating your offer.
  • Help you develop your negotiation strategy.
  • Provide a list of qualified team members (such as lawyers, inspectors, lenders, etc.) for other related services that may be needed.
  • Keep track of all the details throughout the entire transaction – to closing and beyond.

Choosing the correct agent will make your home buying experience go as smoothly and successfully as possible.

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Five Steps to Scoring a Mortgage

Tuesday, May 24th, 2011
Steps to getting your Mortgage Application Approved

Steps to getting your Mortgage Application Approved

A variety of factors can keep you from qualifying for a mortgage. The big ones include a low credit score, insufficient income for the size of the loan you want, insufficient down payment and excessive debt. All of these factors are within your control, however. Let’s take a look at your options for overcoming any liabilities you may have as a borrower

1. Repair Your Credit and Increase Your Score

To lenders, your credit score represents the likelihood that you will make your mortgage payments in full and on time every month. Therefore, with most loans, the lower your credit score, the higher your interest rate will be to compensate for the increased risk of lending you money. If your credit score is below 620, you will be considered subprime and will have difficulty getting a loan at all, let alone one with favorable terms. On the other hand, if you have a credit score above 800, you’ll easily be able to get the best interest rate available (also known as the par rate).

Measures you can take to improve your credit score relatively quickly include paying down revolving consumer debts, such as credit cards or auto loans, using your debit card instead of your credit cards for future purchases, paying your bills on time every month and correcting any errors on your credit report. However, some flaws, like seriously late payments, collections, charge-offs, bankruptcy and foreclosure, will only be healed with time.

In addition to managing your existing credit responsibly, don’t open any new credit accounts. Applying for new credit temporarily lowers your credit score, and having too much available credit is also considered a warning sign. Lenders may be afraid that if you have a lot of available credit, you’ll take advantage of it one day and adversely affect your ability to make your mortgage payments.

2. Get a Higher-Paying Job

If lenders say your income isn’t high enough, ask them (or your mortgage broker) how much more you need to earn to qualify for the loan amount you want. Then try to find a new job in your existing line of work where you’ll be able to earn that much money.

Because lenders like to see a steady employment history, you’ll have to stay in the same line of work for this strategy to be successful. This can be disappointing news for borrowers, as switching professions entirely might offer the best chances for a salary increase. However, switching companies can also be a good way to get a significant boost in income. Significant raises from existing employers aren’t that common, but a new employer knows he’ll have to offer something special to get you to make the switch.

If switching companies right now won’t be enough to get the raise you need, think about things you can do relatively quickly to make yourself more valuable to employers. Is there a continuing education program that you could complete? If you’re a legal secretary, could you become a paralegal? If you’re a receptionist, could you become a secretary? A career counselor or headhunter might be able to give you some guidance specific to your situation about how to improve your marketability and how to reach your income goals

Unfortunately, getting a part-time job on top of your full-time job may not provide what lenders consider qualifying income. The part-time job may be viewed as temporary, and since it will probably take you at least 15 years to pay off your mortgage, lenders are looking for you to have long-term income stability

3. Save Like Crazy

The larger your down payment, the smaller the loan you’ll need. In addition, the lower your loan-to-value ratio (LTV ratio), the less risky lenders will consider you. Both of these factors will make you more likely to qualify for a loan. Be aware that you may have to reach a certain down payment threshold, like 10 per cent or 20 per cent (with 20 per cent being the most conventional), before a larger down payment will help you qualify for a loan.

4. Don’t Pay More Than the Bank’s Appraised Value

The bank will not want to lend more than the house is worth because they could be on the losing end of the deal, should you foreclose and owe more than the bank could get for it. A 20 per cent down payment also becomes much less valuable if the house is worth 20 per cent less than the purchase price. Collateral value is important to lenders, so it should be kept in mind when making an offer to purchase a property.

5. Reduce Your Debt

To a lender, what constitutes excessive debt is not a set number – it’s a total monthly debt payment that is too high for you to be able to afford the monthly mortgage payment you’re asking for. When deciding how much mortgage loan you qualify for, lenders will look at what’s called the front-end ratio, or the percentage of your gross monthly income that will be taken up by your house payment (principal, interest, property tax and homeowners insurance), and the back-end ratio, or the percentage of your gross monthly income that will be taken up by the house payment plus your other monthly obligations, such as student loans, lines of credit, credit cards and car payments.

The more debt you’re required to pay off each month, whether it’s “good debt” like a student loan or “bad debt” like a high-interest credit card, the lower the monthly housing payment lenders will decide you can afford, and the lower the purchase price you’ll be able to afford. Decreasing your debt is one of the fastest and most effective ways to increase the size of loan you’re eligible for.

Playing to Win

Qualifying for a mortgage isn’t always easy. Lenders require all applicants to meet certain financial tests and guidelines and allow a limited amount of flexibility within those rules. If you want to score a mortgage, you’ll have to learn how to play the game, and you’re likely to win if you take the steps outlined above.

I would be happy to go over your situation for you to determine what it is going to take for YOU to score a mortgage!

Angela Vidakovic is part of the Atalick Team at Remax Garden City Realty, St. Catharines and is a St. Catharines Mortgage Broker with Dominion Lending Centres , Easy Street Mortgages in St. Catharines Ontario.

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